Final answer:
Enron's management hid the company's debts and losses through falsifying financial statements, creating off-balance-sheet entities, and inflating profits, which altogether answers d. All of the above.
Step-by-step explanation:
Enron's management utilized a variety of methods to hide the company's debts and losses. The correct answer to how Enron's management hid the company's debts and losses is d. All of the above.
- Falsifying financial statements: They misrepresented the company's financial condition by altering financial statements to show more favorable performance and hiding debts.
- Creating off-balance-sheet entities: These entities were used to move debt off of Enron's balance sheet, making the company appear to be in better financial health than it actually was.
- Inflating profits: Enron exaggerated its profits through various fraudulent accounting practices, which gave investors and analysts a false impression of its financial performance.
The interplay of these deceptive tactics contributed to one of the largest corporate scandals in history.