Behavior and the Failure of Enron Germaine Washington LDR/531 February 13‚ 2012 James Kaczynski Organizational Design and the Failure of Enron This is an analysis of how the application of specific organizational-behavior theories could have predicted the failure of Enron. Although there are many types of core topics of organizational behavior‚ the focus of this study will be on how leader behavior and power‚ and motivation contributed to the bankruptcy of Enron. In addition‚ a comparison
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Enron‚ a Houston-based commodities‚ energy and service corporation‚ was named “America’s Most Innovative Company” for six consecutive years by Fortune Magazine. Ironically‚ its shares price had peaked at $90.75 in August 2000 and dropped massively to $0.67 in January‚ resulting in shareholders losing approximately $11 billion. In the November of 2011‚ it was revealed that Enron’s earnings had been overstated by several hundred billion dollars because enormous debts had been kept off from the balance
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corporations outline Georgetown University Law Center Prof. James V. Feinerman Fall 2012 I. Agency‚ Partnership and Limited Liability Companies 1 AGENCY Agency is a fiduciary partnership that results from the manifestation of consent by one person to another that the latter shall act on the former behalf & subject to his control‚ & consent by the latter so to act. E.g. Shareholders (principals) – officers (agencies). Principal: Has power to dictate how the agent will
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accounting practices came about because one corporation‚ Enron‚ took risks their company could not withstand without taking some rather extreme measures in its accounting to hide the risk. Tyco International went down a different path in that the CEO used corporate accounts as his personal bank account. He placed certain business associates on the Board of Directors to ensure his behavior would not be found out nor questioned. As corporate ethics goes‚ Enron and Tyco International are prime examples
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Since the early 90s‚ the electrical energy sector has undergone profound and dramatic changes. More and more countries moved towards the deregulation of their energy sectors‚ from a regulated and monopolistic industry to one were the market forces of supply and demand determine the unit price of electricity. The first case of energy sector deregulation in Europe was recorded when the United Kingdom with the Electricity Act of 1990 created the Electricity Pool for England and Wales. Norway soon
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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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developed in the financial markets‚ which are popularly known as DERIVATIVES. As Financial Instruments‚ Derivatives has become very important in last two decades or so. Though the practice of using Derivatives is very old but formal application of these instruments in financial engineering came only recently. A lot of academic research have been carried out on the various aspects of the financial derivatives. Understanding their applications‚ uses and misuses constitutes
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Running head: Enron and Ethics Enron: An Ethics Case StudyEnron: An Introduction The previous decades have seen the birth and meteoric rise of several corporate giants such as Microsoft and Apple‚ both of which have all but become household names in this day and age. Neither achieved their level of success overnight‚ especially not since they have long been known to be in direct competition with each other. On the contrary‚ both of them have had their share of scandals and controversies
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FBE 459 – Financial Derivatives Spring 2013 Scott Joslin University of Southern California Marshall School of Business Course Description This course intends to be an introduction to financial derivatives‚ namely options‚ futures and swaps. Our main goal will be to focus on the uses of derivatives for hedging and speculation and to understand risk neutral pricing of derivatives. The emphasis of the course will be on conceptual issues as opposed to the institutional aspects (although the basic
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Enron: Questionable Accounting Leads to Collapse The Enron Corporation was established by integrating two major gas pipelines in 1985. The Company provided products and services related to natural gas‚ electricity‚ and communications and it was one of the world’s leading organizations at these sectors with claimed revenues of nearly $101 billion in 2000. Throughout the 1990s‚ Chair Ken Lay‚ chief executive officer Jeffrey Skilling and chief financial official officer Andrew Fastow transformed
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