www.ccsenet.org/ijbm International Journal of Business and Management Vol. 5‚ No. 10; October 2010 The Case Analysis of the Scandal of Enron Yuhao Li Huntsman School of Business‚ Utah State University‚ Logan city‚ U.S.A E-mail: wyl_2001_ren@126.com‚ carolee1989@gmail.com Abstract The Enron scandal‚ revealed in October 2001‚ eventually led to the bankruptcy of the Enron Corporation‚ an American energy company based in Houston‚ Texas‚ and the dissolution of Arthur Andersen‚ which was one of the
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Based in Houston‚ Texas an American energy‚ commodities‚ and services company named ENRON CORPORATION was Ranked number 7 on the fortune 500 list in 2000‚ it was one of the most famous and largest integrated natural gas and electricity companies in the world. The company went bankruptcy on December 2‚ 2001. But before that it marketed natural gas liquids around the world and was working as one of the biggest natural gas transmission systems in the world‚ with transmissions over a massive area of
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Case Study: Enron Corporation Accounting Scandal 1. What is Enron Scandal? Formed in 1985 from a merger of Houston Natural Gas and Internorth‚ Enron Corp. was the first nationwide natural gas pipeline network. Over time‚ the firm’s business focus shifted from the regulated transportation of natural gas to unregulated energy trading markets. The guiding principle seems to have been that there was more money to be made in buying and selling financial contracts linked to the value of energy
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ENRON Q1. Summary of Enron Scandal. Enron‚ a Houston-based energy firm founded by Kenneth Lay‚ transformed itself into the world’s largest energy-trading company over its sixteen years of lifespan. In 2001‚ Enron was one of the world’s largest energy groups‚ operating mainly in the USA. Though Kenneth played a smaller role in management‚ following the takeover‚ he soon became chief executive officer (CEO) and moved the headquarters from Omaha to Houston. During 2001‚ it had become apparent
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Enron and WorldCom Scandals Matthew Morrison ACC/260 8/18/12 Enron and WorldCom Scandals Question number one of the Enron case focuses on the corporations that got Enron into its difficulties these were the special purpose entities for joint partnerships including Chewco‚ LJM1‚ LMJ2 and the Raptors. Number three of the Enron case shows us that the board was divided into five divisions‚ all of which were full of well-educated financial employees who
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Enron Scandal Enron was able to successfully engage in fraudulent financial activities due to the failures of corporate governance practices in addition to other relevant factors. This paper will briefly cover some of these issues and offer suggestions for prevent similar future malpractice. External Corporate Governance The key external governance failures in the Enron Scandal involve oversights by regulators‚ creditors‚ auditors‚ and investors at large‚ with particular focus towards Enron’s ambiguous
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The accounting scandal at Enron which occurred early during the last decade involved the manipulation of accounting rules in order to enrich the company’s executive leadership. Hence‚ while accounting techniques facilitated the Enron scandal it is more of a tale that is related to the hubris of the firm’s top executives and their deep-seated greed. Evidence that hubris and greed was more of the driving force than the actual manipulation of accounting rules for the Enron scandal is evident in the
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Assignment 02 - Enron Submitted to: Mr. Shane De Silva M.F.M.M Fazlan ICBT/ BABM/07 Executive Summary This report is provides information the Enron scandal which is revealed in 2001. The main reasons for scandal have been described. There are many individuals as well as companies involved in the scandal. The mechanisms in governance chain which could prevent the scandal and the
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The documentary film‚ Enron: The Smartest Guys in the Room It is a story about the greed in corporate America that is always exposed after the fact. The film examines the 2001 collapse of Enron. At the time of the collapse‚ Enron was the largest bankruptcy in history. The Enron story is one of money and politics‚ which are two areas that embody the culture of big business in America. The film does a great job of illustrating the laissez-faire culture that allowed Enron to rise to prominence while
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Enron was originally a pipeline company in Houston‚ Texas in 1985. Enron became a company that was able to profit by providing deliveries of gas to utility companies and businesses. As the deregulation of electric power rose‚ Enron diversified the business and entered into an energy broker‚ which traded electricity and other types of commodities. Enron employed several highly qualified PHDs in mathematics‚ physics‚ and economics. Enron continued to enter into contracts with customers and utilized
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