We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Lessons Learned from the Enron Scandal - Term Paper Example

Comments (1) Cite this document
Lessons Learned from the Enron Scandal.
The Enron scandal which disclosed in October 2001, led to the bankruptcy of the Enron Corporation. Enron Corporation was an American energy company which was established in Houston, Texas…
Download full paperFile format: .doc, available for editing
Polish This Essay91.9% of users find it useful
Lessons Learned from the Enron Scandal
Read TextPreview

Extract of sample
"Lessons Learned from the Enron Scandal"

Download file to see previous pages The bankruptcy of such a big organization is regarded as the greatest setback in American history. The dissolution of Enron was the result of its own false practices illegal dealings of projects and not showing their debts on their company’s accounts. (Project 2000_25_Corporate) It was regarded as the greatest failure in terms of audit. Enron was established in 1985 by Kenneth Lay after the merger of Houston Natural Gas and Inter North. This merger created the largest gas pipeline system in America. In the 1990’s Kenneth Lay took an initiative to sell the electricity at market prices and the resulting markets helped him to sell the electricity at higher rates as a result increasing their income. Enron not only delivered natural gas but also became a market middleman for energy and brought the buyers and sellers of energy on one platform. Enron in just 15 years reached such a position where it became America’s seventh biggest company which employed 21,000 employees in more than forty countries. (Enron scandal-at-a-glance, 2002) Enron became dominant in the trading of energy contracts and financial instruments known as Derivatives. By 1992, Enron became the largest seller of natural gas in North America with earnings of $122 million. In the late 1990’s Enron was considered as the best in the world as it controlled twenty five percent of all electricity and natural gas contracts. In November 1999, Enron’s online website was established which helped the company to manage its contracts more efficiently. This website of the corporation in no time became the largest e-business site of the world. Enron also invested in physical facilities. Enron in the beginning was an insurance company. For further development of the company, Enron purchased a number of assets which included gas pipelines, electricity plants, water plants and broadband services all over the world. The company also incurred revenue by dealing in the same products and services in which it had been involved. The stock of Enron rose from the beginning of the 1990’s until 1998 by 311% which was a remarkable increase in the rate of growth. Apart from that Enron was rated as the most innovative corporation in America, in the survey of Fortune’s most Admired Companies. After many years Jeffery Skilling was hired who developed the idea of using such an accounting system which could hide debts in billions from the failed deals. Not only him but Andrew Fastow Chief Financial Officer and many other executives misguided the board of directors of the Enron company. The shareholders of the Enron Company lost 11$ billion which was as high as US$90 per share in the middle of 2000 but fell to less than 1$ at the end of Nov 2001.As a result of which the U.S. Securities and Exchange Commission started to investigate the matter. The decline of Enron started when its investors became known of the “off balance sheet” partnerships that were hiding billions of dollars of debts. One of the deals with Blockbuster Inc. which was a video rental company to provide movies on the internet was also cancelled in March. Moreover the rival company Dynegy offered to purchase the company and the deal was finalized on December 2, 2001. The Enron Company finally filed for the bankruptcy of the company. In the U.S. history Enron was the largest corporate bankruptcy until WorldCom’s was declared bankrupt the next year. Moreover there were many executives who were blamed for a number of charges and were then sentenced to prison. Moreover, Arthur Andersen the auditor of the corporation ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Lessons Learned from the Enron Scandal Term Paper”, n.d.)
Retrieved from https://studentshare.org/management/1428564-lessons-learned-from-the-enron-scandal
(Lessons Learned from the Enron Scandal Term Paper)
“Lessons Learned from the Enron Scandal Term Paper”, n.d. https://studentshare.org/management/1428564-lessons-learned-from-the-enron-scandal.
  • Cited: 0 times
Comments (1)
Click to create a comment or rate a document
rickgorczany added comment 1 month ago
Student rated this paper as
At first, I thought 12 of pages is too much for such a subject. But now I see it could not be done smarter. As the author starts you see the difficulty of the question. I’ve read all at once. Wonderful text
History Lessons: The Power of Political Persuasion
Nationalism has been used by leaders to achieve their political and power ambition. In this paper, we take a look at the quest for nationalism in Germany and its results; both positive and negative. Otto von Bismarck believed that for a nation to be healthy it had to be powerful.
10 Pages(2500 words)Term Paper
Accounting Fraud: Enron Accounting Scandal
Accounting Fraud: Enron Accounting Scandal Accounting scandals can be easily prevented. The research focuses on the study of the Enron accounting scandal. The research delved into Enron’s window-dressing of its financial statements to present a more favorable balance sheet and income statement.
12 Pages(3000 words)Term Paper
Learned Helplessness
The study aims to identify the role of human resource management in moderating the relationship (Sha & Pethe, 2004). The study was conducted through a questionnaire given among five NGOs in India with a sample size of 84 employees. The results of the study found that there was a significant and positive correlation between LH and ORS which means that the change in the level of ORS leads to a change in LH (Sha & Pethe, 2004).
2 Pages(500 words)Term Paper
It is worthy to mention that the company started its operation in the year 1987 with it’s headquarter in Hyderabad, India (Business Week, 2005). Frauds Committed by Satyam The company collapsed in 2009 after Mr. B. Ramalinga Raju, the Founder and the then Chairman of Satyam Computer Services Ltd admitted that he had been falsifying the accounts and therefore exaggerating the earnings of the company.
4 Pages(1000 words)Term Paper
Whirlpool Credit Scandal
The Whirlpool Corporation is a firm that achieved tremendous growth during the last couple of decades due to its aggressive use of credit contracts to finance the purchase of equipment by its customers. The company provided finance to its customers directly through the use of “open end” notes.
3 Pages(750 words)Term Paper
The Rise & Fall of a Billion Dollar Company Enron
Kenneth Lay, the former chief executive officer of the said company became CEO. Subsequently by dint of hard work, the following year, he was elevated to the coveted position of Chairperson (Fox, 2003). Later on, the company switched its business from pipeline to other lucrative businesses.
9 Pages(2250 words)Term Paper
Implication of Bad Managerial Ethics in Enron
Implication of Bad Managerial Ethics in Enron. Ethics can be defined as morally accepted values that employees should uphold at the workplace. Ethics play a significant role in shaping the future outlook of any business venture. Therefore, success of any business venture relies largely on upholding of ethical habits that include integrity and transparency.
4 Pages(1000 words)Term Paper
It is not long ago when Enron made a skyrocketing profits and share price (McLean & Elkind, 09). However, that was not before an article was published by McLean questioning how Enron made its profits. From that point, Enron’s house of cards began top crumple.
10 Pages(2500 words)Term Paper
Enron Scandal
This discussion talks that the Enron scandal that erupted in 2001 shook the foundations of the American financial system. It had a catastrophic impact on the confidence of the market because the organization had been involved in fraudulent and malicious financial activities. Enron was an organization that had been created in the mid-1980s.
12 Pages(3000 words)Research Paper
Case study: Enron
Enron’s expansion and eventual collapse was therefore initiated by its management and facilitated by its recruitment strategy and selected employees. The most appropriate solution to the problem would therefore be application of a recruitment agency that is independent from management.
2 Pages(500 words)Term Paper
Let us find you another Term Paper on topic Lessons Learned from the Enron Scandal for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us