CASE STUDY: CORPORATE GOVERNANCE AND THE FALL OF ENRON Introduction to the Enron Case Enron was one of the world’s leading energy traders born from deregulation of these markets in certain US states. It rapidly grew and the world followed suit. It was nominated ‘World’s Most Innovative Large Corporation’ six years in row and valued at 64 times its earnings and 6 times its book value. It had one of the highest paid CEOs in the world in 2000. It led an aggressive and apparently effective expansion
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practices came about because one corporation‚ Enron‚ took risks their company could not withstand without taking some rather extreme measures in its accounting to hide the risk. Tyco International went down a different path in that the CEO used corporate accounts as his personal bank account. He placed certain business associates on the Board of Directors to ensure his behavior would not be found out nor questioned. As corporate ethics goes‚ Enron and Tyco International are prime examples of bad
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meet finance needs. However‚ when a small or medium enterprise does access formal channels‚ it typically looks to a bank as its primary source of financial services. Banks have begun to turn their attention toward this untapped market and their service of SMEs is a major factor in increasing SME access to finance. Although‚ numerous issues surface when it comes to SME lending‚ banks‚ by employing a range of measures‚ such as risk adjusted pricing‚ credit scoring models‚ and SME-tailored non-lending
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17th century‚ French philosopher‚ Rene Descartes‚ proposed a revolutionary explanation of the notion that there is a separate‚ yet causal relationship between the mind and the body. Descartes created the school of philosophical thought known as substance dualism in which he methodologically elucidates his argument that there are only two fundamental entities in the world‚ that being mental and physical things. In his philosophical treatise‚ Meditations‚ Descartes challenges the Monist materialistic
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CHAPTER 1 PROJECT IDENTIFICATION PROJECT CONTEXT Transactions are the routine day-to-day activities performed by most organizations. Some are commercial transactions (buying‚ selling products and services‚ paying bills etc.) others involve recording or retrieving data. Most individual transactions are relatively simple‚ but in most organizations‚ there are very large numbers‚ so speed and efficiency are important considerations. Transactions are a fundamental unit of activity in organizations
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Substance Abuse Substance Abuse is a problem for social workers around the country no matter where you go. There are a number of different social problems‚ and social systems that a social worker will have to deal with when working in this field. I will hope to address the problem of substance abuse‚ and the different techniques used in order to cure a client suffering from substance abuse. Substance abuse social workers assess and treat individuals with substance abuse problems‚ which include
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What is an OLTP System? Online Transaction Processing (OLTP) systems are one of the most common data processing systems in today’s enterprises. Classical examples of OLTP systems are order entry‚ retail sales‚ and financial transaction systems. OLTP systems are primarily characterized through a specific data usage that is different from data warehousing environments‚ yet some of the characteristics‚ such as having large volumes of data and lifecycle-related data usage and importance‚ are identical
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What were they trying to do? Montag and Mildred spend the day reading through the books‚ but none of what they read made any sense. Mildred begged Guy to destroy the books because it is very dangerous to have them. Guy knows that they can lose their home and be locked away in an insane asylum if they’re caught. Montag won’t give up‚ though. As they read‚ Montag hers the Mechanical Hound that he’s certain has been programmed to hunt him sniffing outside his door. In this section the "Sieve and
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Enron is frequently given as an example of creative accounting. It is also given as a good example of accounting fraud and insider trading. This is a good example of creative accounting taken too far - not many would disagree that it was accounting fraud‚ although some would say they were just unlucky to get caught. after all‚ the auditors were Arthur Anderson‚ at the time one of the most respected auditing firms. Creative Accounting – Example 1 – Creating multiple trading entities The creative
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Euro Crisis- What went wrong in the Eurozone? The euro was launched in 1999 and the idea was to reduce trading costs‚ boost tourism‚ and smooth the economy. However‚ instead of running a budget deficient‚ most governments spent more than they were earning. Many countries such as Spain‚ Ireland‚ Portugal‚ UK and worst hit was Greece have plummeted into debt gradually since then‚ and if lenders do not believe that countries can pay back their debts interest rates will begin to soar and borrowing will
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