(855) 4-ESSAYS

Type a new keyword(s) and press Enter to search

Enron

            In 1984 Ken Lay became chairman and Chief Operator of Houston Natural Gas. It quickly doubled when it bought Florida Pipeline Company. The next year in 1985 Houston Natural Gas merged Internorth Incorporation. With the merger they both combined to own around 40,000 miles of pipeline and shortly after they changed their name to Enron. Around that time Washington was being lobbied by energy corporations to deregulate business and let companies set their own prices. Energy companies said this would not only lead to the end of monopolies but the extra competition would benefit companies and consumers. Over the next several years Washington began to lift controls on who could produce energy and how it was sold. With an influx of new suppliers energy prices were very unstable. With these deregulations Enron was allowed to sell natural gas on an open market such as oranges and wheat. With this new way of business Enron was able to grow into the seventh largest company in the United States with over 25,000 employees in over thirty countries. It became an innovator in gas trading and technological advances in the energy field. In 1990 Enron hired Jeffery Skilling as the company Energy's Trading Operation Consultant. At age thirty-six Skilling was able to create the "Gas Bank". The "Gas Bank "is when a company buys large volumes of gas from producers and resells it to industrial customers at long term contracts. This helped stabilize the gas market which was very volatile at the time. It also helped expand gas production nationwide and helped Enron grow to a major player in the energy industry.
             .
             As Skilling went up in rank he started to get the company involved in risky investments to make more profit. In an interview with the University of Virginia he said "We like risk because you make money by taking risk," This was one of the many reasons which got Enron into financial debt, Skilling also persuaded regulators to allow Enron to use "market-to-market" accounting.


Essays Related to Enron

1. Enron

The fall of Enron has forced many businesses to rethink their strategies on reporting their finances. ... The Enron executives knew this, but continued anyway because those deals would make them money, even though they would hurt Enron overall. ... Another issue at Enron was the reporting of finances correctly. ... A final problem was the lack of information given to the lower employees of Enron. ... During the stock plunge, Enron executives ordered a freeze on employees selling stocks. ...

  • Word Count: 855
  • Approx Pages: 3

2. Enron

The Enron scandal was the largest corporate financial scandal ever when it emerged. ... Enron was on the verge of selling itself to Dynegy for $8 billion. ... Withdrawing their offer on Enron probably saved Dynegy as well. ... The bankruptcy of Enron led to many subpoenas amongst executives of Enron, Arthur Anderson (Enron's accounting firm and the largest in America), and further investigations into the paper shredding incident and how this happened in the first place. ... Anderson did mislead investors in their reports of Enron's finances. ...

  • Word Count: 1040
  • Approx Pages: 4
  • Grade Level: Undergraduate

3. Enron

Over sixty percent of the 401K was made up of Enron stocks. ... THE COLLAPSE OF ENRON On November 29,2001 the Wall Street Journal ran an article"Running On Empty"-Enron Faces Collapse. ... It is also reported that Enron didn't pay federal income tax for five to six years.Some say Enron triggered K-Mart's bankruptcy. Enron has filed for Chapter 11 bankruptcy. ... People in Enron Forst let us discuss the major players at Enron.Kenneth Lay was Enron Corporate Chairman and chief executive. ...

  • Word Count: 1748
  • Approx Pages: 7
  • Grade Level: High School

4. The Fall of Enron

The Fall of Enron The History Enron began as a pipeline company in Houston in 1985. ... The Business of Enron Enron became a giant middleman that worked like a hybrid of traditional exchanges. ... Over time, Enron began to design increasingly varied and complex contracts. ... The Failure of Enron As its services became more complex and its stock soared, Enron created a constellation of partnerships that allowed manages to shift debt off the books. ... Clifford Baxter, (former Enron Vice Chairman) was one of 29 former and current Enron executives and board members names as defendants in f...

  • Word Count: 797
  • Approx Pages: 3
  • Grade Level: Undergraduate

5. Enron

Another issue arising from the Enron case is the clarity of roles and responsibilities of directors. ... Enron was such an example. ... The ultimate failure of Enron may be the lack of "management ethics". ... These people maintained an illusion of Enron's financial health. If Andersen had blown the whistle on Enron's financial transactions, Enron may have been forced to keep its debt from spiraling out of control. ...

  • Word Count: 1015
  • Approx Pages: 4
  • Grade Level: Undergraduate

6. Enron

The most notorious example of current times is the Enron Scandal. ... Enron had at one time enjoyed enormous success. ... Enron's mission statement emphasizes integrity, fairness and openness. ... Integrity was a main point in Enron's mission statement. ... The Enron scandal has lead many question the morals and ethics of the firm. ...

  • Word Count: 1381
  • Approx Pages: 6
  • Grade Level: Undergraduate

7. Enron Scandal

Enron used a "floor-offset" arrangement to reduce its pension expense. ... Enron had ties to Chewco Investments LP and JEDI. They were classified as independent entities on Enron's financial statements. ... These were deliberate acts to improve Enron's financial statements. ... Especially when it's on such a large scale as this Enron case. ...

  • Word Count: 1087
  • Approx Pages: 4

8. Enron

In just a little over 15 years, Enron grew into one of the US's largest companies. ... As predicted, the review went over favorably for Enron. On August 14th, 2001, Jeff Skilling resigned from Enron as its chief executive of Enron and Kenneth Lay retook the position as chief executive. ... With Enron's employees trying to pull out, Enron put a block on their employees selling their stock from within their pension schemes. ... On December 2nd, 2001 Enron filed bankruptcy. ...

  • Word Count: 1211
  • Approx Pages: 5
  • Has Bibliography

9. Why Did Enron Collapse?

Enron's strategic intent was to become the blue-chip energy and communication company of the 21st century through its business efforts in four core areas: Enron Wholesale Services, Enron Broadband Services, Enron Energy Services, and Enron Transportation Services. ... Tom Fowler of the Houston Chronicle Enron reported the following example about how an Enron employee profited from the misstating of finances; "The partnerships called LJM1 and LJM2, which were formed using Enron equity and outside capital as a way to hedge against the risks involved in some of the company's new lines ...

  • Word Count: 1262
  • Approx Pages: 5
  • Has Bibliography
  • Grade Level: Undergraduate

10. Why Did Enron Collapse

Enron's strategic intent was to become the blue-chip energy and communication company of the 21st century through its business efforts in four core areas: Enron Wholesale Services, Enron Broadband Services, Enron Energy Services, and Enron Transportation Services. ... Tom Fowler of the Houston Chronicle Enron reported the following example about how an Enron employee profited from the misstating of finances; "The partnerships called LJM1 and LJM2, which were formed using Enron equity and outside capital as a way to hedge against the risks involved in some of the company's new lines ...

  • Word Count: 1277
  • Approx Pages: 5
  • Has Bibliography
  • Grade Level: Undergraduate

Got a writing question? Ask our professional writer!
Submit My Question