Enron‚ a Houston-based commodities‚ energy and service corporation‚ was named “America’s Most Innovative Company” for six consecutive years by Fortune Magazine. Ironically‚ its shares price had peaked at $90.75 in August 2000 and dropped massively to $0.67 in January‚ resulting in shareholders losing approximately $11 billion. In the November of 2011‚ it was revealed that Enron’s earnings had been overstated by several hundred billion dollars because enormous debts had been kept off from the balance
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. Enron senior management gets a failing grade on the truth and disclosure and a passing grade on arrogance and greed. For Fifteen years Enron was a paper tiger with few questions ever asked concerning its earnings profitability or business practices. The deceit and deception by Enron management seems to be the environment of a divisive marketing campaign that Kenneth Lay‚ Jeffery Skilling and Andrew Fastow hide while touting Enron. In reality Enron was one of the greatest Ponzi schemes to date
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Answer the following questions based on the film Enron: The Smartest Guys in the Room (2005). 1. (a) Describe the ownership structure at Enron. (b) How did the ownership structure contribute to the Enron scandal? (15 points) When Enron became a publicly traded company‚ the employees and executives had more incentive to manipulate earnings and financials. With the shift in structure‚ there were more external stakeholders to satisfy‚ which caused the company to focus on short-term results‚
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Payment‚ similar to consideration‚ is one of the four elements of a contract. Consideration is something of value in a contract or agreement between two parties. Both parties must be providing something of value to the other party. It is an act or promise to do (or not to do) something in return for value and the value given is enforceable. All the law need is ‘valuable consideration ’. For example‚ if Jack has offered to pay S$10 for a hammer worth S$100‚ that is considered valuable consideration
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Kenneth Lay founded Enron in 1985. Two years after its founding‚ the company becomes embroiled in scandal after two traders begin betting on the oil markets‚ resulting in suspiciously consistent profits. Enron’s CEO‚ Louis Borget‚ is also discovered to be diverting company money to offshore accounts. After auditors uncover their schemes‚ Lay encourages them to "keep making us millions". However‚ the traders are fired after it is revealed that they gambled away Enron’s reserves‚ nearly destroying
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{draw:frame} TRAVEL AGENCY MANAGEMENT HTM 1213 COURSE WORK INTRODUCTION {draw:g} MY COMPANY NAME: LOVE TOUR COMPANY SDN.BHD *SHARE HOLDER: 30% OF *BUMIPUTRA (MOHAMAND ALIZAH) TOTAL CAPITAL: RM 300‚000 LOCATION: PLAZA 393 *EMPLOYEE: TOTAL* 5 PEOPLE OFFICE SPACE: 200sq LOGO DESIGN *Reasons for the above design*: Red colou*r is love‚ passion. This color is very shinning and striking can attract customer.* And can boost our energy
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Topic: Law of agency Summary of Facts: Company Star Boat employed Tom as the manager for marketing and sales department. Being an agent for Star Boat‚ Tom frequently concluded contracts with a number of suppliers for acquiring certain parts to manufacture boats. Smooth Sailing was one of the suppliers. Tom resigned from Star Boat in July 2012 upon being offered a better position in Star Ferry. However‚ he acquired 4‚000 parts from Smooth Sailing in August and manager of Smooth Sailing did
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the influencing factors of capital structure and how to effectively manage it. Due to the conflicts among the debtors‚ managers and shareholders etc‚ this essay will also illustrate the agency problems that are existed in the companies and evaluate the role of effective financial management in addressing these problems. 2.0 The ways that capital structure affects corporation value The capital structure is refered to the allocation between the long-term debt and equity‚ which determines the solvency
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Agency Theory: An Assessment and Review Author(s): Kathleen M. Eisenhardt Source: The Academy of Management Review‚ Vol. 14‚ No. 1 (Jan.‚ 1989)‚ pp. 57-74 Published by: Academy of Management Stable URL: http://www.jstor.org/stable/258191 Accessed: 14/10/2010 10:43 Your use of the JSTOR archive indicates your acceptance of JSTOR’s Terms and Conditions of Use‚ available at http://www.jstor.org/page/info/about/policies/terms.jsp. JSTOR’s Terms and Conditions of Use provides‚ in part‚ that unless you
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Enron Corporation (former NYSE ticker symbol ENE) Enron Corporation (former NYSE ticker symbol ENE) Cierra Gause Abstract This paper will describe the legal environment of business‚ the sources of American law‚ and the basis of authority for government to regulate business‚ differentiate between civil law and criminal law and describe the various classifications of crimes as it relates to Enron and the scandal the caused their downfall by using technology and information resources to research
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