Enron Case Study

1262 words, 6 pages

Intro Sample...

Enron was a corporation founded in 1985; named Enron after merging two companies together Internorth Incorporated and Houston Natural Gas. Enron became one of the world’s leading electricity and Natural Gas Company founded in Houston, TX. Enron’s Bankruptcy case was one of the biggest case in the United States history.
Enron is a corporation, where ethics and corporation values have been abolished. The CEO and management abolished not only corporate culture, but many other rules and norms of a business. This is a case of how multimillion dollar corporation collapsed in two weeks. It took them sixteen years to build on of the strongest corporation in a wall street, and took them two weeks to go bankruptcy. Wall... View More »

Body Sample...

This money was projected and not yet earned. They let the Enron collapse.
Ken Lay took over the company in 1987, and changed the company name to Enron. Skilling was a big picture of a scandal of Enron. He was charged in 11 counts; however he does not admitted that he did anything wrong, but he admitted that there were criminals inside the company. He died of a heart attack during his vacation in Colorado, on July 5, 2006.
In 1997 Jeff stilling took over as a SEO of Enron. Skilling created market to market accounting, which was reporting the money that has not been earned; he was charged with fraud and providing the fraud financial documents and now serving 24 years in prison.

Anrew Fastow was in charge of transferring of debt from corporate account to his newly formed partnership. Fastow created those “off-balance sheets” that allow Enron to hide true financial situation inside the corporation. He had a big illusion of money, and looked at business world only in a measure of money.
Clifford Baxter was the former Enron chairman, who committed suicide on January 25, 2002. Baxter was unhappy to the direction of the company where the firm was going and he resigned, but stayed as a consultant. He was informed that investigators wanted to interview him, and he does not wanted to interview him; he knew that the corporation violated codes and ethics and the limited partnership was inappropriate, and he committed suicide.
The highest salaries have been paid to the board of directors; top executives were paid extra bonuses. They were taking money out form the corporate ...

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