wife and children‚ was a company created in 1998 by Enron ’s CFO‚ Andrew Fastow‚ to buy Enron ’s poorly performing stocks and stakes and bolster Enron ’s financial statements. Fastow proposed in October 1999 to Enron ’s finance Board the creation of LJM2 Co-Investment L.P. Fastow would act as general director of a much larger private equity fund that would be funded with $200 million of institutional funds. The question of Fastow’s dual role as Enron ’s CFO and LJM2 ’s general director was not viewed
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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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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 for trading commodities‚ which soon became the largest business site in the world. About 90 per cent of its income eventually came from trades over Enron Online. Growth for Enron was rapid. In 2000‚ the company’s annual revenue reached $100 billion US. It ranked as the seventh-largest
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Philosopher Robert Louden presented a criticism of virtue ethics. Rather than arguing that virtue ethics as a moral theory is wrong‚ Louden argues that the agent-centeredness of values ethics fails to provide adequate guidance for the action of the agent‚ thereby making the theory useless and disregardable. Louden’s first criticism is that virtue ethics does not allow for actions to be viewed separately from the agent (Louden‚ 228). This focus on virtues and not actions result poses a problem when assessing
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Enron Corporation (former NYSE ticker symbol ENE) was an American energy‚ commodities‚ and services company based in Houston‚ Texas. Before its bankruptcy on December 2‚ 2001‚ Enron employed approximately 20‚000 staff and was one of the world’s major electricity‚ natural gas‚ communications‚ and pulp and paper companies‚ with claimed revenues of nearly $101 billion during 2000.[1] Fortune named Enron "America’s Most Innovative Company" for six consecutive years. At the end of 2001‚ it was revealed
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Case 1.1 - Enron Corporation ------------------------------------------------- Discussion 1 The parties we believe to be most at fault for the crisis in this case are a) the Audit Firm engaged in the Enron audit (Arthur Andersen); b) Enron Management (Kenneth Lay‚ Jeffrey Skilling‚ Andrew Fastow; and c) the SEC. The Public Accounting Firm: Arthur Andersen The auditor has the responsibility to evaluate the risk of material fraud‚ including: * Incentives and motives for fraud : Enron was a fast
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’Virtue ethics is of little use when dealing with practical ethics’. It’s argued that virtue ethics is of little use when dealing with practical ethics. Virtue ethics doesn’t focus on actions being right or wrong‚ but on how to be a good person. Virtue ethics raises three questions - who am I?‚ who do I ought to become?‚ and lastly‚ how do I get there? Then there is practical ethics describes situations where an action is needed. Virtue ethics goes back to Plato and Aristotle. Plato’s moral
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Case Study 9 Kim Chau California Southern University MKT 86519 Dec 19‚ 2014 N. Papazian Accounting for Enron Introduction In the case of Accounting for Enron‚ the case concerned one of the largest corporate bankruptcies in the US history at the turn of the 21st century. It was Enron Corporation‚ a one time seventh largest most successful US company‚ sixth largest energy company in the world‚ valued at over $70 Billion; they filed for chapter 11 on December 2‚ 2001. Just the year before‚ Enron
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Applying Virtue Ethics in the Real World MGT407 M1:A1 03 – MAR – 2012 Read the Ethical Dilemma on page 106 of the Nelson & Quick text. Answer the following questions. 1. Summarize the dilemma. 2. Using consequential‚ rule-based‚ and character theories‚ evaluate Juanita ’s options 3. What should Juanita do? Why? ------------------------------------------ Whenever a young child is faced with a dilemma or reaches and ethical crossroads so often a parent
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Business ethics main concern is how to give solutions to ethical problems that arise in a business environment and/ or working place. (White‚ Lecture #2‚ September‚ 9). Through years different philosophers have created and developed different theories that would help a business person solve these issues in order to assure the success of a business organization. However‚ three are the widest spread approaches that try to make the life in an organization easier and happier: Kantianism‚ Utilitarianism
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