When the Enron Corporation Went Bankrupt in 2001, This Collapse

Multiple Choice

When the Enron Corporation went bankrupt in 2001, this collapse was the largest corporate failure in history and the name has since become synonymous with corporate fraud. Enron's board of directors failed to monitor, question, or analyze the company's management and business practices, and billions of dollars' worth of unscrupulous activities were conducted to make Enron look more financially stable than it was. Though the board had access to evidence that something was wrong with Enron's business practices, a culture had developed in which conformity was encouraged and diverse views not acceptable. In other words, Enron fell prey to

A) social facilitation.
B) group polarization.
C) social loafing.
D) groupthink.
E) the fundamental attribution error.