Eron
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Enron Corporation
Gordon Duke
Instructor Gus Weekley
Business Law 100 – 024016
Week 4
May 2, 2010
Enron was the largest energy corporation on the planet and fall down quicker than anyone would think. Two gas pipeline companies merging in Houston, Texas quickly coming to power and earning in the billions of dollars in revenue. Enron had misleading accounting practices, and the head executives were getting more than they should have got in bonuses, along with corrupt auditing, it was the perfect storm for disaster. Kenneth Lay who was the CEO of Enron and lead company into one of the largest bankruptcies in history. Being unethical when billions of dollars are on the line will always result into a misfortune for the people involved and the company as a whole. Not solving an issue when it arises was the down fall in the Enron scandal, high risk accounting issues leads to disaster and all of the chairman knew if it wasn’t cleaned up it could lead to what it was today.
Being structured differently could have saved the company before it got out of hand. The chair people had some knowledge that that accounting books were missing millions if not billions of dollars and being covered up misleading earnings. During the merge of companies both record book had to be adjusted and the holes that never got filled in turned larger and larger making the extra money go to the expensive life style of the chair people, with bonuses in the millions of dollars. The balance sheet that goes public every year had understatements about the liabilities and over stated the equity. Having the records misleading made the stock market assume that the company is always having a good year more than it really was. Cleaning up the records and having different non-corrupt accountants view all the files and take actions on how the company was handling all the money would be the first step on avoiding such activities as it has seen. Enron was a dishonest company and a few bad people faults...
Gordon Duke
Instructor Gus Weekley
Business Law 100 – 024016
Week 4
May 2, 2010
Enron was the largest energy corporation on the planet and fall down quicker than anyone would think. Two gas pipeline companies merging in Houston, Texas quickly coming to power and earning in the billions of dollars in revenue. Enron had misleading accounting practices, and the head executives were getting more than they should have got in bonuses, along with corrupt auditing, it was the perfect storm for disaster. Kenneth Lay who was the CEO of Enron and lead company into one of the largest bankruptcies in history. Being unethical when billions of dollars are on the line will always result into a misfortune for the people involved and the company as a whole. Not solving an issue when it arises was the down fall in the Enron scandal, high risk accounting issues leads to disaster and all of the chairman knew if it wasn’t cleaned up it could lead to what it was today.
Being structured differently could have saved the company before it got out of hand. The chair people had some knowledge that that accounting books were missing millions if not billions of dollars and being covered up misleading earnings. During the merge of companies both record book had to be adjusted and the holes that never got filled in turned larger and larger making the extra money go to the expensive life style of the chair people, with bonuses in the millions of dollars. The balance sheet that goes public every year had understatements about the liabilities and over stated the equity. Having the records misleading made the stock market assume that the company is always having a good year more than it really was. Cleaning up the records and having different non-corrupt accountants view all the files and take actions on how the company was handling all the money would be the first step on avoiding such activities as it has seen. Enron was a dishonest company and a few bad people faults...