Is it greed or simply ignorance which caused the Enron Scandal? Enron once was known as "America’s Most Innovative Company" and as of today‚ known as one of the most popular business bankruptcies and failures. Enron appeared to be doing really well‚ producing a lot of cash and new businesses‚ in October of 2001 that all changed. Enron reported a $618 million third-quarter loss and declares a $1.01 billion non-recurring charge against its balance sheet. Partially related to "structured finance" operations
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problems of the Enron Scandal The main problem of the Enron scandal was that they committed business fraud. This is what the root problem of the company was. The sad thing about the Enron scandal was that approximately 22‚000 men and women lost their jobs. Not only did it affect the people who worked for the company but the problem was that it also affected other accounting firms that worked directly with Enron‚ for example the company Arthur Anderson went under because of the Enron scandal and this
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Karl Marx: Conflict Theory The most influential socialist thinker from the 19th century is Karl Marx. Karl Marx can be considered a great philosopher‚ social scientist‚ historian or revolutionary. Marx proposed what is known as the conflict theory. The conflict theory looks at how certain social interactions occur through conflict. People engage in conflict everyday to gain more power then others in society. Karl Marx is known for studying the conflicts that occur between different classes. Karl
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Enron Scandal In 1985‚ Enron was formed by Kenneth Lay after the merging of Houston Natural Gas and InterNorth. In the 1990s‚ Lay helped to initiate the selling of electricity at market prices. Markets made it easier for Enron to sell energy at higher prices‚ which caused the company to get richer. Enron was the largest merchant of natural gas in 1992. In November 1999‚ the creation of EnronOnline enabled Enron to develop‚ negotiate and manage its trading business. By 2001‚ Enron became a
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Conflict theory was started by Karl Marx in the mid-18000s‚ Marx saw our society in terms of conflict between the social classes‚ notably so amid the landowners who had the resources for economic production and those who did not. “Conflict Theory suggests that conflict is an integral part of social life. There are conflicts between economic classes‚ ethnic groups‚ young and old‚ male and female‚ or among races” is the definition given by Phillips and Pittman (2009).Conflict theory proposes that the
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What were the business risks enron faced‚ and how did those risks increase the likelihood of material misstatements in enron’s financial statement Enron faces most of the risk ordinarily faced by any energy company‚ including price instability and foreign currency risks. Enron operated in many different areas of the world with different regulatory and political risks. Enron faced business risks such as a complex business model‚ extensive use of derivatives and special purpose entities‚ aggressive
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This theory is like structural-functional theory‚ as far as the level of analysis of being a macro-level (Macionsis‚ 2013). Furthermore‚ how the economy is will determine the type of jobs people can access. In addition‚ social-conflict theory also interpret that work place problems are a result of the disruption from the economy. In fact‚ “conflict is the most basic feature of social life (Conflict theory‚ 2001)”. Those that have the power to exploit labor workers‚ forcing them into lesser paying
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The overall cause for Enron’s bankruptcy should be blamed on former chairman and CEO‚ Kenneth Lay. As an Enron executive‚ all of Lay’s concerns should have been focused on Enron’s profits‚ but all he cared about was his property. When he noticed Enron’s financial problem‚ he did not attempt to fix it‚ but made effort to maintain his own benefit and ignored the whole company’s and investors’ loss. His selfish and unethical behavior not only deceived the investors but also finally resulted in Enron’s
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Enron History Special Purpose Entities (SPEs) were used and often abused by most large corporations in the late 1990’s. Enron was likely the corporation that abused the accounting treatment the most‚ but certainly not the only one. The Enron SPEs were not hidden from the auditors or the investing public‚ but were so extensive‚ invasive‚ and complex that no one‚ including primary architect‚ Andrew Fastow‚ was able to understand the total implications. The 2000 financial statements for Enron included
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Originality Report. Signed: Date: Conflict Theory by Karl Marx Introduction The conflict theory is a classical sociological theory‚ it can be said to be one of the pillars of foundation in the study of sociology. By definition the conflict theory “envisages society as an arena of inequality that generates conflict and change‚” this is according to Macionis and Plummer (2008:31). To further shed light on the conflict one can take into account the words uttered by Karl Marx
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