In what segment did Enron start having operation difficulties? I think the segment that they started having difficulties was when they got greedy and decided to create Chewco in 1997. Am I right?
Enron indeed faced operational difficulties in several segments of their business. However, the creation of Chewco in 1997 was not the direct cause of their troubles. Chewco was, in fact, one of the many Special Purpose Entities (SPEs) that Enron created to move debt off its balance sheet and manipulate its financial statements.
The segment in which Enron began to experience significant operational difficulties was their energy trading division. Enron's downfall can be primarily attributed to the complex and fraudulent accounting practices employed by the company to exaggerate its profits and conceal its debts.
To understand Enron's operational difficulties better, it's crucial to dive into their financial mismanagement, which involved inflating revenues, using offshore entities like Chewco to hide debt, and manipulating energy prices. This led to Enron's eventual bankruptcy filing in December 2001 and the exposure of one of the largest corporate frauds in history.
To confirm this information and delve deeper into Enron's downfall, I recommend exploring reliable sources such as books, articles, or documentaries that extensively cover the Enron scandal. These sources will provide you with more comprehensive details about Enron's operational difficulties and the various factors that contributed to their downfall.