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?
While it is true that Enron faced significant difficulties and ultimately collapsed due to various fraudulent activities, including the creation of off-balance sheet partnerships such as Chewco, pinpointing a specific segment where Enron began having operational difficulties is not as straightforward.
Enron was an energy company that operated in various segments of the energy industry, including energy trading, natural gas, electricity, and other commodities. The company experienced a rapid rise in the 1990s, fueled by aggressive expansion and innovative financial practices.
However, Enron's troubles began to surface in the early 2000s. The company faced significant challenges primarily in its wholesale trading and retail energy services segments. Engaging in questionable accounting practices and inadequate financial disclosures led to the eventual disclosure of substantial debt and losses. Furthermore, Enron's ventures in broadband and telecom markets also faced difficulties, with the collapse of these ventures contributing to the company's downfall.
Therefore, while the creation of Chewco was indeed a part of Enron's fraudulent activities, it is just one aspect of a complex web of problems that spanned various segments of the company's operations.