Using Modified Altman‚ Chanos‚ Beneish; Examine Enron Corporation for 1997‚ 1998‚ 2000 & 2001 show as to how early financial fraud could be identified Introduction The history of Enron corporation can be traced to the 1930s when the Northern Natural Gas Company‚ was formed in order to transport and market gas. The company formerly known as Northern Natural Company changed several times‚ as it made significant transformations in portfolio of its business activities and name. In 1980‚ Northern
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The Mismanagement of Customer Loyalty Part A. Basic Concepts and Ideas 1. Although the best customers are often defined as the loyal ones‚ it has been found that loyal customers don’t generate the high profits companies assume they do. The relationship between loyalty and profitability is actually much weaker and more subtle than proponents of loyalty programs claim. 2. Companies need to look beyond customer loyalty alone‚ and instead find ways to measure the relationship between loyalty
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Fair value in financial reporting: problems and pitfalls in practice – a case study analysis of the use of fair valuation at Enron David Gwilliam∗ and Richard H G Jackson School of Business and Economics‚ University of Exeter‚ Streatham Court‚ Rennes Drive‚ Exeter EX4 4PU‚ UK This paper has been accepted for publication in Accounting Forum ____________________________________________________________ ____________ Abstract This paper contributes to the debate on the use of mark to market
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Introduction The management of a Company is based on the majority rule‚ but at the same time the interests of the minority can’t be completely overlooked. While talking of majority and minority‚ we are not talking of numerical majority or minority but of majority or minority voting strength. The reason for this distinction is that a small group of shareholders may hold the majority shareholding whereas the majority of shareholders may‚ among them‚ hold a very small percentage of share capital
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could have prevented the fall of Enron. First of all‚ if the board of directors made the right strategies for Enron rather than created hundreds of SPEs to remove assets and debts off balance sheet‚ the picture of Enron could have made a difference. Secondly‚ if the audit committee of Enron could point out all those aggressive and risky accounting treatment and propose solutions‚ then the afterward damages could be eliminate or at least minimized. c. The BOD of Enron should have known about the risks
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UVA-F-1299 Rev. Feb. 8‚ 2011 This document is authorized for use only by Mattia Tenaglia at Tecnologico de Monterrey. Please do not copy or redistribute. Contact permissions@dardenbusinesspublishing.com for questions or additional permissions. ENRON CORPORATION’S WEATHER DERIVATIVES (A) Everybody talks about the weather‚ but nobody does anything about it.1 In October 2000‚ Mary Watts‚ the chief financial officer of Pacific Northwest Electric (PNW)‚ a utility servicing the Pacific Northwest
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Thesis Poor stakeholder management led to preventable mishaps such as the disasters in Alaska and Texas. Specifically‚ BP ’s defensive approach towards stakeholder management led to lavish compensation for upper level management while creating hazardous working conditions for employees and a burden on all of society in the form of rising oil prices and environmental damage. Background British Petroleum was founded in 1908 and since then has rapidly grown to become the eighth largest company
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Mandeep Singh Dr.Leah Richards ENG 101 12/12/201 American Red Cross Donation Mismanagement Government aid and assistance has been very helpful to all people when they need but not this time in New York. Last month Super Storm Sandy hit the north east USA which caused some serious damage. All Americans had donated tons of money to big agencies so it could be helpful for the victims. Red Cross raised billions of dollars whether it was during Sandy‚ Katrina
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THE BEST CUSTOMERS‚ we’re told‚ are loyal ones. They cost less to serve‚ they’re usually willing to pay more than other customers‚ and they often act as word-of-mouth marketers for your company. Win loyalty‚ therefore‚ and profits will follow as night follows day. Certainly that’s what CRM software vendors--and the armies of consultants who help install their systems--are claiming. And it seems that many business executives agree. Corporate expenditures on loyalty initiatives are booming: The top
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Sarbanes-Oxley Act Article LAW/421 Sarbanes-Oxley Act Article The article chosen is the Sarbanes-Oxley Act of 2002 and the legacy of Enron. This act was passed after corporate scandals that involved the regulatory mismanagement and fraud of Enron. This article review will cover topics on how the Sarbanes-Oxley and the collapse of Enron in which affected the ethical decision-making processes in business environments and criminal penalties for which the act provides. Decision-Making in Business
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