Both Enron and WeWork faced governance failures due to excessive control and influence by their CEOs (Jeffrey Skilling for Enron, Adam Neumann for WeWork).
Why C (CEO dominance) is correct:
Enron’s CEO misled investors through fraudulent accounting practices.
WeWork’s CEO (Adam Neumann) had unchecked authority, leading to unethical corporate decisions that ultimately resulted in a failed IPO.
Why not A or B?
A (Auditor lapses) is relevant for Enron (Arthur Andersen scandal) but not a key factor in WeWork’s collapse.
B (Related-party deals) occurred at WeWork (e.g., CEO leasing buildings to his own company) but was not a central issue in Enron’s collapse.
[References:, Harvard Business Review: "The Leadership Failures of WeWork and Enron", SEC Case Studies on Corporate Governance Failures, , , , , , , ]
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