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Unformatted text preview: (1) What Segment of its operations got Enron into difficulties? Enron was divided into five different specific business segments and a sixth general unit (catch-all). 1. Transportation and Distribution. This segment included regulated industries (e.g., electric utility operations), interstate transmission of natural gas, and the management and operation of pipelines. 2. Wholesale Services. This included a large portion of Enron’s trading operations, energy commodity sales and services, and financial services of wholesale customers, and the development and operation of energy-related assets (such as power plants and natural gas pipelines). 3. Retail Energy Services (Enron Energy Services or EES). Sales of energy-related products (including expertise) to end-use customers (including commercial and industrial firms). On 30 June 2001, Enron had 730,000 retail customers 4. Broadband Services. Construction and management of fiber-optic networks; the marketing and management of bandwidth; trading bandwidth. 5. Exploration and Production of natural gas and crude oil. 6. The catch-all segment. This included water and renewable energy; the supply of water and energy to end-use customers, the provision of waste water services;...
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This note was uploaded on 11/23/2010 for the course ECON ECON 711 taught by Professor Dr.econ during the Spring '10 term at University of Economics and Technology.
- Spring '10