This website uses cookies to ensure you have the best experience. Learn more

Enron Essay

705 words - 3 pages


Gilbert Canda
Strayer University
LEG100 – Business Law I
Professor: Gloria Sodaro

Enron began as a domestic natural gas pipeline company which was established in Houston, Texas during 1930. After operating for thirty years, during the 1960s; Enron decided to expand its corporation into different segments in order to invest in the diverse levels of the energy market. In the late 1980s and early 1990s, Enron established a major change in the company’s operations by making the “move from being a domestic company to a global provider of energy products.” (History of the Workplace, 2003)
This will only create more opportunity for Enron to develop and in the mid and late ...view middle of the document...

Enron and Arthur Andersen viewed the GAAP as rules instead of principles in which they interpreted the GAAP in a selfish way. Being fair was not taken into consideration which is one of the basic fundamentals of GAAP. “They also ignored the legal precedent that emphasizes fairness over detailed rules, as well as the accounting concept that emphasizes economic substance over legal form” (Cunningham & Harris, 2006).
Enron as a Corporation was held responsible for the violations of the law committed by its executives. The employees present the image of the company, as with any other company. The executive decisions executed during their employment at Enron have left the employees responsible for their executive’s actions. Kenneth Lay stated, “As officers and employees of Enron Corp., its subsidiaries, and its affiliated companies, we are responsible for conducting the business affairs of the companies in accordance with all applicable laws and in a moral and honest manner” (Enron Code of Ethics, 2000).
Enron’s involvement with Merrill Lynch is based on a transaction that is supposed to show that Enron made their earnings target. Prosecutors stated, “Enron sold three electricity-producing barges moored off the coast of Nigeria at the end of 1999 in a sham deal designed to help the energy company...

Other Papers Like Enron

Enron Corp Essay

1838 words - 8 pages Enron Corporation 1. Why did the company collapse? Enron In order to understand what happened within the company we need to start with its origins. Enron Corporation Inc. (later became Enron) begun operating in Huston Texas in 1985. It started from a merger of two natural gas companies, becoming the largest commercial, natural gas pipeline operating in the United States at that time. Throughout Enron’s humble beginnings it generally centred

Enron Failure Essay

757 words - 4 pages Enron Failure Analysis Tyshawn I. Toney LDR 531 University of Phoenix Joseph Hamel February 26, 2009 Enron was a global energy firm that filed for bankruptcy protection in 2001. The firm’s senior managers had engaged in fraud for an extended period through a scheme in which partnerships owned by the managers could receive payment for goods and services never provided to Enron. In addition, the firm’s

Enron Scandal

1734 words - 7 pages /InterNorth but soon renamed itself to Enron. In 1986, Lay became the CEO of Enron and slowly transformed the company into an energy-trading giant. During the time of merger, Enron was largest owner of inter and intrastate pipelines for transporting natural gas. With the help of government deregulation of prices of natural gas, Enron was able to sell its gas at higher prices, which significantly boosted its revenue. Enron pursued further growth

Enron Case

3909 words - 16 pages INTRODUCTION Enron was formed during 1985.   Enron was a very powerful company that was doing very well in the market. Enron had been a power supplier to utilities.  Its business began through the merger of Houston Natural Gas and Omaha-based Inter North.  In the following 20 years, Enron grew quickly and became the largest energy trader in the world.  By the end of the twenty century, Enron had many honorable titles, such as “one of the

Enron Corporation

754 words - 4 pages Enron Corporation Enron Corporation 1. Describe how Enron could have been structured differently to avoid such activities. Public companies are required by law to share transactions with shareholders and the members of the investing public with several documents. Enron did not share facts that were important to understand certain transactions. Enron did not provide complete financial statements or give the CFO’s actual or expected benefits

Enron Paper

2072 words - 9 pages IS-401 BUSINESS ETHIC CASE STUDY THE FALL OF ENRON: A STAKEHOLDER FAILURE GROUP TWO HISTORY Enron started out as a merger between Houston Natural Gas and Internorth in 1985. The CEO of Houston Natural Gas, Ken Lay, became chairman and CEO of the newly formed company the next year. Enron provided natural gas, electricity, and communications to its customers across the US and even around the world. It was also involved in

Enron Case

5799 words - 24 pages Enron Case Study Seven years after the fact, the story of the meteoric rise and subsequent fall of the Enron Corporation continues to capture the imagination of the general public. What really happened with Enron? Outside of those associated with the corporate world, either through business or education, relatively few people seem to have a complete sense of the myriad people, places, and events making up the sixteen years of Enron’s existence

Enron Scandal

795 words - 4 pages 1. Enron was valued at $2.3 billion when it was formed in July 1985. On August 23, 2000, its stock was at $90 per share and it had a market capitalization of $65.9 billion. Explain the major business practices that created such dynamic growth in the price of the stock. Enron used many different tactics to inflate their stock prices. The one that sticks out to me is when they signed a 20-year contract with Blockbuster. Early in the contract

Enron Collapse

1955 words - 8 pages The Enron Collapse Enron, a high profile organization which ranked as the seventh largest company in the United States during the 1990’s consisted of approximately 25,000 employees worldwide and held revenues in the tune of over 100 billion dollars in 2000. Enron controlled about one quarter of the gas companies in the United States and also expanded into Myriad energy products during its years of operation. The company traded hundreds of

Enron Case

1931 words - 8 pages ENRON CASE Please read the Enron cases posted on blackboard and the one in your book then answer the following questions based upon the case and Chapter 9. Make sure that your answers are supported by the facts of the case and the concepts you learned from Chapter 5. Please rely only on the case/chapter 9 to answer the questions except for question # 12—requires outside search. Make sure your answers are sufficiently brief

Enron Scandle

530 words - 3 pages Earnings Management Techniques used by Enron Enron's complex financial statements were confusing to shareholders and analysts. In addition, it’s complex business model and unethical practices required that the company use accounting limitations to misrepresent earnings and modify the balance sheet to indicate favorable performance. Revenue Recognition: Enron was originally Services providing company such as wholesale trading and risk

Related Essays

Enron Essay

1039 words - 5 pages Enron Corporation (former NYSE ticker symbol ENE) was an American energy company that was originally involved in transmitting and distributing electricity and natural gas throughout the United States. It was founded in 1985 in Omaha, NB. The company later relocated to downtown Houston, TX and was based in the Enron Complex. Enron transformed energy into a commodity that could be traded like stock and bonds. Before its bankruptcy in late 2001

Enron Essay

990 words - 4 pages EnronEnron was a business conglomerate during the 1990s, formed by the merger of smaller oil and energy companies. Houston executives Kenneth Lay (Chairman), Jeffrey Skilling (chief executive officer (CEO) and Andrew Fastow (chief financial officer (CFO) parlayed their new mega-company into a favorite Wall Street company, bragging of record profits with negligible losses. During the 1990s, the three senior executives changed Enron from a

Enron Essay

274 words - 2 pages There were dozens of books about Watergate, but only All the President's Men gave readers the full story, with all the drama and nuance and exclusive reporting. And thirty years later, if you're going to read only one book on Watergate, that's still the one. Today, Enron is the biggest business story of our time, and Fortune senior writers Bethany McLean and Peter Elkind are the new Woodward and Bernstein. Remarkably, it was just two years

Enron Scandal Essay

1788 words - 8 pages The Enron Scandal One of the most popular business bankruptcies and collapses known to date is that of the Enron Corporation. Enron, once known as "America's Most Innovative Company" by Fortune Magazine six straight years from 1996 to 2001. Enron seemed to be doing very well until the summer of 2001 generating a lot of cash and new businesses, but in October of 2001 Enron was forced to disclose that their accounting practices had been very