Examining a Business Failure Paper

Enron was an energy company based in Houston, Texas and was one of the worlds hint electricity, natural gas, and communications companies. In 2001 it was revealed that Enrons inform financial judicial admission was sustained substantially by creatively planned be fraud involving Enron and their accounting firm, Arthur Anderson. The irregular accounting practices, including manipulating stock prices, caused Enron to institutionalize for bankruptcy in December of 2001 (Thomas, 2002). The grime is the most epoch-making corporate collapse in the unite States since the failure of galore(postnominal) savings and loan banks during the 1980s (Hanson, 2002). The succeeding(a) forget identify the charge and leadership failures which led to the Enron scandal, as well as how these failures could micturate been predicted. In addition, the following will also show how worthy organizational behavior of management and leadership could have wedged the structure of Enron positively. The collapse of Enron occurred for many reasons including the lack of attention shown by members of the Enron tabular array of directors to the books financial entities and the lack of truthfulness by management or so the health of the company and its care operations (Hanson, 2002). The firms senior managers had move in fraud for an all-encompassing period through a scheme in which partnerships possess by the managers could receive wages for goods and services never provided to Enron. Enrons executive director team was trying to raise an enterprise which would increase wealthiness amongst their shareholders, however, when it was revealed that Enrons stock prices were less desirable, authoritative aggressive accounting methods measures were required. Arthur Andersen, attendant and consultant to Enron, helped to crystalise Enrons shares advert more favorable and wittingly falsified certified financial statements to make Enron look profitable. Once Enron began this newf ound type of accounting operation, the comp! ulsion to continue this type of hypocrisy increased... If you want to get a full essay, order it on our website: OrderCustomPaper.com

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