1. The Enron debacle created what one public official reported was a “crisis of confidence” on the part of the public in the accounting profession. List the parties who you believe are most responsible for that crisis. Briefly justify each of your choices. Following parties are believed to be the most responsible for the crisis. With any big organization going so bad‚ the blame starts with the top level executives‚ there was no different in this case. For Enron the blame started with Enron’s
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In the novel by F. Scott Fitzgerald‚ “The Great Gatsby”‚ he clearly shows that the search for the American Dream leads to demise. Throughout the book Gatsby seeks wealth‚ love‚ and social acceptance and is disappointed in the final result. In my end view after reading this novel‚ there seems to be true standing factors of why the realities of both the wealthy and working classes have such an unspoken‚ yet mutual aroma that they breathe. My own opinion of the ‘American Dream’‚ is working hard for
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Firms did not flourish until the early 20th century. They emerged as an authorized structure and were granted exclusive rights to trade and conduct business in certain markets and products. The fact that firms are a different way to organize economic activities cannot explain explicitly and adequately the reason of firm formation. Many socialists and economists have given their interpretations of the conditions under which firms emerged and developed in certain ways in a specialised exchange economy
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Play in an Organization In late 2001‚ the United States economy experienced a shock as Enron‚ the country’s 7th largest corporation‚ declared bankruptcy. Many people lost their jobs‚ and even more investors lost billions of stock dollars as shares collapsed. As the rubble was removed‚ many signs of unethical acts surfaced‚ and were found to be carried out by some of the principal parties in the company. This debacle not only affected the employees and investors of the company‚ but also affected
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CASE STUDY – UNIT 1 1. Andrew Fastow is a key person responsible for the downfall of Enron. When he became the CFO in 1998‚ he came up with the plan to make the company appear in great shape by using the mark-to-market accounting practice. The company would build an asset‚ such as a power plant‚ and immediately claim the projected profit on its books‚ even though it hadn’t made one dime from it. If the revenue from the power plant was less than the projected amount‚ instead of taking the loss‚ the
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Managerial Decisions for Firms with Market Power Market power is the ability of all price setting firms to raise price without losing all sales‚ which causes the price setting firm’s demand to be downward-sloping. When firms with market power raise price‚ even though sales do not fall to zero‚ sales do decrease because of the law of demand. The effect of the change in price on the firm’s sales depends to a large extent on the amount of its market power‚ which can differ greatly among firms. This chapter
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THE ULTIMATE GIFT The film touches on many points that ‚ in my opinion ‚ are vital for us to lead a fulfilling life ‚ based on the effort and thanks for all the goods that we have. I like how it makes you see that the gift of work for example‚ helps us to value things ‚ realizing what it actually costs ‚ and get to have some power and learn to despise not waste anything‚ small or "insignificant " it is for us‚ we can get through honest work . I can also see that when you work for something and
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History of Accounting The name that looms largest in early accounting history is Luca Pacioli‚ who in 1494 first described the system of double-entry bookkeeping used by Venetian merchants in his Summa de Arithmetica‚ Geometria‚ Proportioni et Proportionalita. Of course‚ businesses and governments had been recording business information long before the Venetians. But it was Pacioli who was the first to describe the system of debits and credits in journals and ledgers that is still the basis of today’s
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Gibney’s film version of the rise and fall of Enron‚ do you accept Joel Bakan’s argument that the corporation shows “psychopathic” traits? I agree with Joel Bakan‚ however‚ just partially about the corporation Enron showing ‘psychopathic’ traits. Yes there are traits that they were doing unethical actions that completely ruin many people life-long works and their lives; nonetheless‚ in my opinion‚ those actions were intentional. The executives at Enron were gambling intelligently‚ according to the
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and Ariel. Plath was clinically depressed. The previous onset of depression‚ at the age of 20‚ was associated with overwork and failure to get into a Harvard writing class. She had psychological treatment for many times. Her emotional difficulties were explored in terms of an ambivalent relationship with her mother and the early loss of her father. She attempted to suicide twice‚ and for the third and the last time‚ she committed a suicide in 1963. In
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