Enron And The Collapse Of Enron - 1303 Words

Enron, a company which originated in Huston, Texas, was one of the largest American energy trading corporations in the nation. Although it was one of the most well known companies, it was also one that crashed and burned the fastest, shocking many people when it did. Not only did it end fast, the company caused quite a scandal which is still being discussed and reviewed in today’s world. Enron’s bankruptcy scandal was so widely known because of the many people who associated themselves with the company and worked with it. When it finally did end in 2001 the corporation was a wreck. This paper will analyze the business of Enron, the impact which Enron had on the economy, the causes of the rise and fall, the effects of de-regulation, and an analysis of the collapse of Enron. Also in this essay will be a look at the accounting practices of Enron, who Arthur Anderson was, and what his role was in Enron. The essay will finally take a look at just what happened to Arthur Ande rson after the collapse of the company to which he hurt. Many companies and franchises come and go in this busy economic world. There are generic reasons behind most companies end and often times when a company goes out of business it is either because the corporation ends up loosing their well earned income or its loyal and repeat customers who keep them on their feet. However, in the unique case involving the fast paced and high ranked company, Enron, there is far more involved than just simple reasoningShow MoreRelatedEnron And The Collapse Of Enron1254 Words   |  6 Pagesbelow one dollar. This happened to shareholders of Enron. The total debt amounted to over $ 16 billion, which was the largest corporate bankruptcy in American history. Shareholders lost 60 billion dollars within a few days, 4500 employees lost their jobs, and the employees lost billions in pension benefits. I had never heard the name of Enron nor Enron’s scandal until I watched a film, â€Å"Enron: The Smartest Guys in The Room,† but I realized the Enr on scandal affected the whole of the business in theRead MoreEnron : The Collapse Of Enron1644 Words   |  7 PagesEnron was once one of the world s leading energy companies by reshaping the way natural gas and electricity were bought and sold. They filed the largest corporate bankruptcy in American history in 2001. Enron Corporation was an energy company running out of Texas that was started when two companies, Houston Natural Gas and InterNorth, merged together in 1985. By 1992, Enron became the largest seller of natural gas in North America and began to offer other services like wholesaler trading and riskRead MoreThe Collapse Of Enron And Enron1365 Words   |  6 PagesTwo organizations that will live on in infamy in the business world are World Com and Enron. These names are synonymous with the largest corporate scandals in US history. Their failure to live by ethical and moral codes resulted in bankruptcy, large financial losses to employees and shareholders as well c riminal penalties. Additionally, these deviations from ethical behavior from several related parties shined a light on the accounting profession and resulted in several changes in the industryRead MoreThe Collapse Of Enron And Enron1736 Words   |  7 PagesAbstract Fortune used to rank Enron as the most successful business in the United States. The collapse of Enron was shocked the whole world energy trading market. It caused significant losses to investors. In this paper shows analysis reason of factors that lead to Enron demise and also lessons can be learnt from Enron case study. The approach which have used in this paper to respond, the case study question are the background of the case organization and how business structure had been use by theRead MoreEnron And The Collapse Of Enron1718 Words   |  7 PagesINTRODUCTION Enron, one of the most influential and profitable companies in utility, paper, and communications for numerous years, came crashing down and filed for bankruptcy in fall 2001 (Bottiglieri, Revile, and Grunewald 1). Houston National Gas and InterNorth fused together and created Enron in 1985. The company faced initial problems of debt and loss of exclusive rights to pipelines (Thomas 1). This accounting method allowed Enron to log entire profits from the life of a contract in the yearRead MoreEnron : The Collapse Of Enron2469 Words   |  10 Pagesscandal of Enron in 2001 lead the company to the bankruptcy. Enron is the largest bankruptcy reorganization in American history at that time. Undoubtedly, Enron is the biggest example of the audit failure. It is ever the most famous company in the world, but it also is one of companies which fell down too fast. In this paper, it describe the reason why Enron became an admired company in the world, the story of Enron s rise and fall, the iss ues of internal and external auditing in Enron, the breachesRead MoreCollapse of Enron4178 Words   |  17 PagesTHE COLLAPSE OF ENRON August 11 2008 [Type the abstract of the document here. The abstract is typically a short summary of the contents of the document. Type the abstract of the document here. The abstract is typically a short summary of the contents of the document.] FROM PERSPECTIVE OF CORPORATE GOVERNANCE â€Æ' TABLE OF CONTENTS CONTENTS PAGE NO. Introduction 3 Background of Enron 3 Enron Business Model 4 Summary of transactions PartnershipsRead MoreThe Ethics Of The Enron Collapse Of Enron1366 Words   |  6 PagesCulture of Enron Before Enron bankruptcy it was one of America’s most powerful and successful energy companies. The company thrived and pushed to be number one no matter the circumstance, in this company’s case if it meant doing it illegally. Fraud accounting, auditing, energy trading, and illegal finance was the company’s downfall leading to corruption and most of all greed. Enron was aggressive and a competitive environment. The documentary was just not giving the name â€Å"The Smartest Guys in theRead MoreThe Collapse Of Enron Corporation1787 Words   |  8 Pagesâ€Å"When a company ascends to the number seven spot on the Fortune 500 and then collapses in weeks into a smoking ruin, its stock worth pennies, its CEO, a confidante of presidents, more or less evaporated, there must be lessons in there somewhere.† -Daniel Henninger, The Wall Street Journal The collapse of Enron Corporation has created many discussions about the structure of corporate governance. The question of this essay first calls to examine some of the strengths and weaknesses of theRead MoreFinancial Collapse : The And Enron1320 Words   |  6 PagesOneTel and Enron were huge technology companies, dominating the competition that they faced although - everything changed. Both of these companies operated in the same era, coincedently both suffering financial collapse. The reasons were mainly because of the failure to follow major accounting principles, lacking morals and lacking strong work ethics. If even a major corporation can fall into this â€Å"trap†, then avoiding doesn’t sound easy, although accountants can easily avoid scandals by following