Examining a Business Failure Paper

Enron was an energy company based in Houston, Texas and was one of the worlds steer electricity, natural gas, and communications companies. In 2001 it was revealed that Enrons inform financial crack 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 deposit for bankruptcy in December of 2001 (Thomas, 2002). The grime is the most authoritative 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 wariness and leadership failures which led to the Enron scandal, as well as how these failures could waste been predicted. In addition, the following will also show how right-hand(a) organizational behavior of management and leadership could have impact 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 agate line operations (Hanson, 2002). The firms senior managers had move in fraud for an protracted period through a scheme in which partnerships possess by the managers could receive wages for goods and services never provided to Enron. Enrons administrator team was trying to raise an enterprise which would increase wealth amongst their shareholders, however, when it was revealed that Enrons stock prices were less desirable, authoritative aggressive accounting methods measures were required. Arthur Andersen, meeter 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 impudently type of accounting op eration, the compulsion to continue this ty! pe of incantation increased... If you want to get a full essay, order it on our website: OrderCustomPaper.com

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