Business
Tao.Fang
BA 350
Dr. Donald Conant
Ernon case answers
2/24/2012
1. Who were the key stakeholders involved in, or affected by, the collapse of Ernon? How and to what degree were they hurt or helped by the actions of Ernon management? Although the company thought the things happened is not right, the truth is the shareholders and mutual fund investors lost $70 billion in market value, and also the bad loans. Moreover, not only did Enron creditors, shareholders, and bondholders lose out, confidence also fell across the market, as investors questioned the integrity of the financial statements of other companies in which they held stock. Congressional committees initiated investigations, prosecutors brought criminal charges against Enron executives and their accountants for obstruction of justice and securities fraud, and institutional investors sued to recoup their losses. Some blamed Arthur Andersen, Enron’s accounting firm, for certifying financial statements that arguably had wrongfully concealed the company’s precarious financial situation; some blamed the board of directors for insufficient overnight. In December 2001, Enron's applied bankruptcy filing documents. With this time, the related bankruptcy investigation, arrest and confiscation of the occurrence were happened all the time. Enron's shareholders, including the nation's mutual fund account, totally loss of 670 billion dollars.
Enron's pension plan - the United States, 401 (K) pension plan, within the framework of such a plan, the U.S. pension plans and employees are affiliated with each other- and because of the collapse of Enron has become worthless meaningless. Whether in one state or in a country, do not have effective social welfare safety net. 2. Considering all aspects of the case, what factor or factors do you believe most contributed to the collapse of Ernon? In your answer, please consider both external and internal factors.
I think there are many factors contributed to the
BA 350
Dr. Donald Conant
Ernon case answers
2/24/2012
1. Who were the key stakeholders involved in, or affected by, the collapse of Ernon? How and to what degree were they hurt or helped by the actions of Ernon management? Although the company thought the things happened is not right, the truth is the shareholders and mutual fund investors lost $70 billion in market value, and also the bad loans. Moreover, not only did Enron creditors, shareholders, and bondholders lose out, confidence also fell across the market, as investors questioned the integrity of the financial statements of other companies in which they held stock. Congressional committees initiated investigations, prosecutors brought criminal charges against Enron executives and their accountants for obstruction of justice and securities fraud, and institutional investors sued to recoup their losses. Some blamed Arthur Andersen, Enron’s accounting firm, for certifying financial statements that arguably had wrongfully concealed the company’s precarious financial situation; some blamed the board of directors for insufficient overnight. In December 2001, Enron's applied bankruptcy filing documents. With this time, the related bankruptcy investigation, arrest and confiscation of the occurrence were happened all the time. Enron's shareholders, including the nation's mutual fund account, totally loss of 670 billion dollars.
Enron's pension plan - the United States, 401 (K) pension plan, within the framework of such a plan, the U.S. pension plans and employees are affiliated with each other- and because of the collapse of Enron has become worthless meaningless. Whether in one state or in a country, do not have effective social welfare safety net. 2. Considering all aspects of the case, what factor or factors do you believe most contributed to the collapse of Ernon? In your answer, please consider both external and internal factors.
I think there are many factors contributed to the