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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WorldCom Failure in relation to its Organizational Behavior LDR/531 - Organizational Leadership October 7‚ 2010 WorldCom Failure in relation to its Organizational Behavior INTRODUCTION Year 2002 saw an unprecedented number of corporate scandals: Enron‚ Tyco‚ Global Crossing‚ etc. In many ways‚ WorldCom is just another case of failed corporate governance‚ accounting abuses‚ and outright greed. Many people may question if there is a secret to operating a successful business in modern times.
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OBJECTIVE: 3 METHODOLOGY 3 THE ENRON STORY: BRIEF 4 HOW AND WHAT TYPE OF FRAUDS WERE COMMITTED? 5 THE ROLE OF STOCK OPTIONS 5 THE USE OF OFF-BALANCE SHEET PARTNERSHIPS 5 Example: LJM 5 Chewco 6 LOBBYING 6 ACCOUNTING PRACTICES 6 DIFFERENT ETHICAL DIMENSIONS 7 SOCIAL DIMENSION 8 AFFECTS ON EMPLOYEES AND SHAREHOLDERS 8 ENRON INDIA 8 AGGRESSIVE NATURE OF ENRON: PERSONAL ETHICS 8 ENRON’S ARROGANCE: PERSONAL ETHICS 9 EXECUTIVES ABANDON ENRON 9 POLITICAL DIMENSION: SYSTEMATIC
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This case study is extracted mainly from two major novels titled “What went wrong at Enron” by Fusaro P.C. and Miller R.M. and “The unshredded truth from an Enron insider” by Brian Cruver. The Vision Called Enron The history of Enron goes back to the 1920’s‚ when a pair of Houston pipeline companies was incorporated to carry gas along the coast of the Gulf of Mexico. In 1956 these companies merged under the name of Houston natural Gas (HNG). While these companies were working along the coast
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Failures A. Cedillo POS-355 Failures In this paper I will be discussing the issue of failures in a distributed system‚ and to understand the different failures I will write about four failures that occur in and affect a distributed system. Also‚ I will be discussing and writing about how to isolate and fix two out of the four failure that can occur in the distributed system. In a distributed system nothing is set in stone or perfect‚ so there are some issues that can arise‚ and the issues
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Parmalat Finanziara‚ the Italian dairy and food giant‚ is fast joining Enron and WorldCom as a household name for corporate scandal. The alleged financial fraud at Parmalat spans more than a decade and involves sums whose estimates have ballooned from EUR 4 billion to more than EUR 8 billion. Founder‚ chairman‚ and chief executive Calisto Tanzi has been ousted from the company and board and is under arrest. Enrico Bondi‚ who replaced Tanzi in December‚ has been given new authority to act as sole
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RUNNING HEAD: Enron’s Failure Enron’s Failure Stacey A. Weinert University of Phoenix Abstract This paper will discuss the business failure of one of the largest energy companies in the world‚ Enron Corporation. I will discuss the leadership‚ management‚ and organizational structure of the company and how this failure could have been prevented. Company Overview Enron Corporation was an American energy company in downtown Houston‚ Texas. Enron employed more than 22‚000 workers and
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Enron “The Smartest Guys in the Room” The Enron: The smartest guys in the room it’s a documentary film based in an important and huge company that was involved in a huge scandal in the American history. The Enron Corporation when they first start was a successful company. In its beginning‚ Enron was a small company from Texas‚ after years Enron became in the seven largest business in the U.S. with a smarts an experts employees working for Enron. The founder was Ken Lay a smart executive. The company
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the worst examples. Waste Management Scandal (1998) Company: Houston-based publicly traded waste management company What happened: Reported $1.7 billion in fake earnings. Main players: Founder/CEO/Chairman Dean L. Buntrock and other top executives; Arthur Andersen Company (auditors) How they did it: The company allegedly falsely increased the depreciation time length for their property‚ plant and equipment on the balance sheets. How they got caught: A new CEO and management team went through the books
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raised by this case? This case discusses the story of Enron‚ the infamous American energy company that December 2‚ 2001 filed the largest bankruptcy case in US history‚ totaling losses around 66 billion US dollars‚1 forcing 4‚000 unemployed‚2 and bringing down Arthur Andersen‚ 3 its auditing company. For many of the “bad” and publicly convicted Enron executives it has been the worst nightmare come true‚ a personal travesty. Cliff Baxter‚ an Enron executive‚ has committed suicide and Ken Lay‚ after
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