CHAPTER 19 CORPORATIONS 1. – THE NATURE AND CLASSIFICATION OF CORPORATIONS A corporation is a legal entity created and recognized by state law. It can consist of one or two persons identified under a common name. CORPORATE PERSONNEL When an individual purchases a share of stock in a corporation‚ that person becomes a shareholder and owner of the corporation. Shareholder and corporations are liable. THE LIMITED LIABILITY OF SHAREHOLDER One of the key advantages of the corporate forms
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In October of 2001 the Enron scandal was revealed‚ which led to their bankruptcy. It was the biggest bankruptcy reorganization in American history at that time. In the movie Jeff Skilling suggest that money is the only thing that motivates people‚ and I agree with him. Money might not directly motivate everybody but it plays a part in everybody’s motivation. Money is the reason people stay in school longer than required‚ the reason people work‚ and the reason why people get out of bed in the morning
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Chrisvie Delisme English 0/830/93 May 20‚ 2013 As a young adult growing-up I was a child sent from above. I was the only child in my dad eyes I was 2013] very cultured. And I was intelligent‚ my report card was always good. And my parents was proud of me. Living with my dad was the best thing to happen to me. I always had what I wanted and needed and never begged for anything. I was blessed to have a dad that would make sure I did all my homework. And got to school feed me on time. I can honestly
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of Enron were the large number of highly complex accounting entries. For example energy traders were required to book all the projected profits from a supply contract in the quarter in which the deal is made. Such accounting procedures are inherently risky as they make assumptions about price forecasts which can drastically affect earnings. Another inherent risk factor is the frequency of related party transactions. The special purpose entities Enron was trading with were created by Enron and
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Problem: What can Enron do to salvage the Dabhol project and its ties to India? After nine years of an obvious debacle‚ it seems that Enron and the Indian government have reached a state of impasse‚ where a sustainable long term relationship cannot be achieved. Enron has chosen to terminate the agreement by offering to the Indian Prime Minister Enron’s 65% equity in DPC for US$1.2 billion and offshore debt for US$1.1 billion. o Various political parties have consistently used Enron as an issue to
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Effects of the Enron Scandal (Kassie) The Enron scandal had a great effect on the United States‚ with an impact on individuals from the consumer level to those running the company as well as the stock market and investors. Throughout the scandal‚ 4‚500 employees lost their jobs and investors lost approximately $60 billion dollars within a few days. The loss of such a large sum of money meant the loss of old-age and retirement security for many of the investors who put their money and faith in the
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Table of contents S.no | Topic | Page no | 1 | Corporate governance | 5-6 | 2 | Enron – An overview | 7-10 | 3 | Journey from Enron corporationTo Enron creditors recovery corporation | 10-14 | 4 | Enron’s injured parties | 14 | 5 | Lessons to be learnt | 15-16 | 6 | Satyam – An overview | 17-21 | 7 | The Satyam Scandal | 21-27 |
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Case summary – Enron Corporation’s Weather Derivatives Steve Haik‚ Dan Sleker and Bas van Bellegem – March 2003 Background In October Mary Watts‚ CFO of Pacific Northwest Electric (PNW) reviewed the forward plan for PNW’s 200-2001 season. PNW’s has been experiencing nearly no EPS growth since 1995 due to deregulation and warmer-than-average winter climate. The stock price had suffered accordingly‚ but there maybe a way to hedge the weather risk via a new “weather derivative” being proposed by
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Enron: Shaping The Future of Ethics In Business “Give me the story– please‚ the story. If I can finally understand the case in simple terms‚ I can‚ in turn‚ tell the same story to the jury and make them understand it as well. I go about my life confused most of the time‚ but when I get something clear I usually can communicate it. Getting it clear is not the work of huge minds‚ which often are baffled by themselves‚ but the labor of ordinary minds that understand simplest of stories… most of all
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The collapse of Enron case study Q1. The key stakeholders involved in‚ or affected by the collapse of Enron are: employees and retirees‚ thousands of them lost their jobs and the investment; the executives: Kenneth Lay‚ Jeffrey Skilling and Andrew Fastow they sold significant blocs of company stock‚ have conflicts of interests; government figures‚ Lay had close personal tie with the Bush family‚ Enron’s efforts influence policy making; regulatory authorities: Commodities Futures Trading Commission
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