Principles of Accounting
Enron Key Players
Former Enron chairman
Former Enron CEO
Former Andersen partner
Secretary of the Army
Enron vice president
Enron started about 29 years ago in July 1985 in Houston, Texas.. A energy economist named Kenneth Lay became the CEO of Enron. Mr. Lay was a very optimistic man who was eager to try things in a different way. Under Mr. Lay’s guidance, Enron was built into a large corporation and that was how they became known as the largest marketer of electricity in the U.S.
Enron was originally a Natural gas pipeline company that grew into an American trading and marketing broker. Enron had a lot of dealings with energy related commodities like power plants, electricity, natural gas pipelines, pulp and paper and waste water management. They eventually expanded to wholesale business and became a worldwide supplier of non-energy transactions even being listed in fortune 500. Enron was voted as America’s most innovative company from 1996 to 2002.
Enron was the largest company in the United States that conducted energy business. They had a estimated amount of 21,000 employees. The corporation was best known for adding miscellaneous investments to its portfolio and returning about 200% of its investments to its shareholders.
The downfall of Enron is one of the most infamous and shocking events in the financial world. In 2001 several events led the securities exchange commission to become suspicious of its accounting practices as well of the company’s valuation of its assets. The First suspicious activity was the cancelation deal with blockbuster, INC which was then followed by the resignation of the company’s chief executive officer. Not long after the company reported a 3rd quarter loss of $628 million and admitted that...