Examining a Business Failure Paper

Enron was an energy company based in Houston, Texas and was one of the worlds preeminent electricity, natural gas, and communications companies. In 2001 it was revealed that Enrons inform financial tally 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 lodge for bankruptcy in December of 2001 (Thomas, 2002). The grime is the most significant corporate collapse in the unite States since the failure of many savings and loan banks during the 1980s (Hanson, 2002). The succeeding(a) forget identify the solicitude and leadership failures which led to the Enron scandal, as well as how these failures could harbor been predicted. In addition, the following will also show how halal organizational behavior of management and leadership could have wedge 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 pedigree operations (Hanson, 2002). The firms senior managers had move in fraud for an blanket(a) period through a scheme in which partnerships owned by the managers could receive wages for goods and services never provided to Enron.

Enrons executive team was trying to raise an enterprise which would increase riches amongst their shareholders, however, when it was revealed that Enrons stock pri ces were less desirable, authoritative aggr! essive accounting methods measures were required. Arthur Andersen, attendant and consultant to Enron, helped to crystalise Enrons shares advert more favorable and knowingly falsified certified financial statements to make Enron look profitable. Once Enron began this young type of accounting operation, the compulsion to continue this type of conjuring trick increased... If you want to get a full essay, order it on our website: OrderCustomPaper.com

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