1. Enron was valued at $2.3 billion when it was formed in July 1985. On August 23‚ 2000‚ its stock was at $90 per share and it had a market capitalization of $65.9 billion. Explain the major business practices that created such dynamic growth in the price of the stock. Enron used many different tactics to inflate their stock prices. The one that sticks out to me is when they signed a 20-year contract with Blockbuster. Early in the contract Blockbuster and Enron parted ways with a null and void
Premium Enron Arthur Andersen Enron scandal
There are numerous philosophies regarding morality. Two of these ethical systems debated today are utilitarianism and deontology. These two traditions parallel the sayings “the ends justify the means” or “the means justify the ends”. Inspired by Jeremy Bentham’s philosophies‚ John Stuart Mill applied his ideals to his many pamphlets and short works regarding Utilitarianism. This philosophy considers that the best thing to do ethically for a society is to maximize its happiness‚ interests‚ preference
Premium Ethics Utilitarianism Morality
Enron’s collapse was the result of unethical practices; alas‚ such practices had a long‚ ignominious presence. The Enron story begins with CEO Kenneth Lay‚ who in 1986 combined his Houston Natural Gas company with several other entities. Until 1996‚ Enron primarily sold natural gas. Yet‚ in a sign of trouble to come‚ in 1987 Lay overlooked evidence of financial misdeeds in the company’s Valhalla‚ NY unit as executives Louis Bourget and Thomas Mastroeni greatly inflated profits while embezzling
Premium Enron Kenneth Lay
Enron entered the year 2001 as the seventh largest public company in the U.S‚ only to exit the year as the largest company to ever declare bankruptcy in U.S history. a) What were the business risks Enron faced and how did those risks increase the likelihood of material misstatements in the Enron’s financial statements? 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
Premium Enron Stock Auditing
it was the "Greed Factor" which drives Enron employees to increase the profits through unethical methods‚ and ultimately causing its downfall. But could it be the opposite? I mean‚ could it be that it was Enron ’s culture and Key Performance Indicators (KPIs)‚ which is to increase the profits and share price that "forced" Enron employees behave in an unethical manner? What circumstances caused them to be unethical‚ really? At first‚ the leader of Enron Finance Corp‚ Jeffrey Skilling recruited
Premium Enron Jeffrey Skilling Kenneth Lay
Reaction Paper on Enron Case September 9‚ 2013 Summary: Enron’s origins date back to 1985 when it began life as an interstate pipeline company through the merger of Houston Natural Gas and Omaha-based InterNorth. Kenneth Lay‚ the former chief executive officer of Houston Natural Gas‚ became CEO‚ and the next year won the post of chairman. From the pipeline sector‚ Enron began moving into new fields. In 1999‚ the company launched its broadband services unit and Enron Online‚ the company’s website
Premium Enron
Consequentialism is frequently criticized on a number of grounds. Two of these are particularly apt for revealing the temptations motivating the alternative approach to deontic ethics that is deontology. The two criticisms pertinent here are that consequentialism is‚ on the one hand‚ overly demanding‚ and‚ on the other hand‚ that it is not demanding enough. The criticism regarding extreme demandingness runs like this: for consequentialists‚ there is no realm of moral permissions‚ no realm of going
Premium Morality Ethics Human
Utilitarianism and Deontology support the legalization of marijuana‚ it produces a greater good for the economy‚ health‚ and positive effect on people’s happiness. The law of duty would be moral‚ and legalizing marijuana stimulates jobs‚ reduces crime rates‚ helps medically‚ and economically produces money. As a Utilitarian‚ they believe that the best action is the one the maximizes utility‚ and in this argument marijuana is a utility that could benefit for the greater good of human beings. In Deontology‚ they
Premium Ethics Law Morality
Introduction 2 2. History 3 a. Formation 3 b. Operations 3 c. The Success 4 d. All that glitters is not gold 4 e. The Fraud 4 3. Products 5 4. Enron Scandal – The Company Fraud 8 f. What Happed? 8 5. Techniques used in the Company Fraud 9 g. Revenue Recognition 9 h. Mark-to-market accounting 9 i. Special Purpose Entities 10 j. Executive
Premium Enron
Deontology Deontologists claim that an action or a moral rule is right because of its own nature‚ even if it fails to bring about the greatest good. Deontology is critically based on duty (deontos) – a moral obligation we have towards another person‚ a group or society as a whole. In this sense‚ deontology is concerned with the intrinsic properties of actions‚ not their end result. Immanuel Kant is arguably the most famous advocate of modern deontology. According to Kant‚ moral law is synthetic
Premium Ethics Immanuel Kant Deontological ethics