Name: Rosario Carbonell Subject: Financial Accounting Professor: Diana Dela Vega Date: September 9, 2013 Title: Reaction Paper: Enron Case Background: Enron Company was established in 1985 by Kenneth Lay in Houston, Texas and was viewed as one of the most successful companies in America before the start of its downfall in 2001. It was considered as the seventh largest company in America and was named as America’s most innovative company for several consecutive years (1996-2001). Its core
What Enron did in their accounting procedures and what eventually happened to the company. Enron was an American energy company based in Houston, Texas. It was formed in 1985 by the merging of Houston Natural Gas – a gas utility headquartered in Houston, Texas -- and InterNorth -- a large energy company based in Omaha, Nebraska. Former HNG CEO Kenneth Lay became the newly formed Enron’s CEO. Revealed in 2001, the Enron scandal made national news because of the meteoric rise of Enron stock over
Running Head: ENRON SCANDAL Examining a Business Failure: Enron Scandal Christy Devore University of Phoenix Examining a Business Failure: Enron Scandal Enron started as a Natural Gas Pipeline Company in 1985 as Houston Natural Gas and InterNorth merged (Thomas, 2002). It became a real trading powerhouse as it started trading energies and launched into new markets. At the end of 2001 it was revealed that its reported financial condition was sustained substantially
Enron Corporation was born from the merging of Houston Natural Gas and InterNorth, a pipeline company in Nebraska. In 1985, the two companies came together under the new CEO Kenneth Lay. Lay moved corporation headquarters to Houston, Texas, where it was located until bankruptcy. Resulting from the merger, Lay incurred massive debt. In order to keep the company afloat, Enron had to devise a new business strategy that will create profits and bring the company out of debt. To accomplish this feat, Lay
Keller graduate school of management | You Decide –Week 5 | Enron Scandal | | While there were many problems that caused the demise of Enron Corporation, the Enron problems can basically be summed up in one statement, “complicated financial record keeping of the organization”. A couple of issues come to mind when recalling the company’s down fall. The organization started out on the right track and then with the desire for rapid growth, things quickly turn complicated, scandalous, and
Enron Scandal An Enron scandal summary would sound like another’s high-profit business scandals, except that the Enron executives were actually caught and punished for their misdeeds. Enron was the world’s leading electricity company created by the merger of Houston Natural Gas in 1985. Houston executives Kenneth Lay, Andrew Fastow and Jeffrey Skilling were boasting of record profits with minimal losses. Hide from almost everybody, this image was the result of one of the greatest frauds in financial
The Enron scandal deals with violating employment law and bankruptcy. Employment law protects both the employer and the employee’s rights and responsibilities. Part of the employer’s responsibilities is to oversee workplace safety and standards, fair wages, retirement and pensions. The fraud committed by Enron tremendously affected the employees who had invested in what they believed to be secure company stock. These investments were made using their savings and 401k retirement funds. Because of
Ethics Report: Enron Scandal Business ethics generally result from an individual's own moral standards in the context of the political and cultural environment in which the organization is operating. There is a whole separate debate, of course, on which macro-economic system works best to deliver good corporate ethics and governance - especially currently after what some would argue as a failure in the capitalist model (regardless of your views it is clearly undergoing the most significant
BACKGROUND Since 1985, Enron were establishing through the merger of two natural gas pipeline companies that is Houston Natural Gas and InterNorth. Enron devoted all types of fraud, from mail fraud and shareholder fraud to security, wire fraud and money laundering. In 2001, Enron is from United States that is a seventh-largest corporation. Enron nurture from a natural gas pipeline company into a trading and marketing giant, moving first into the business of acting as a broker between energy suppliers
RED 090:DEFINITION OF AN EDUCATED PERSON DEFINITION 1 An Educated Person “An educated person should posses the general knowledge needed for making informed rational decisions and inferences in familiar and novel situations personal and intellectual life.” “Who is an Educated Person?” Mohanan, (2005) Center for Development of Teaching and Learning. web 29, August 2011. http//www.cdt.nus.edu/publications/educational/who.htm DEFINITION 2 “Educating the mind without educating the heart is no