Enron Collapse

Assignment 2: Enron Case Study
Abderazak Ouassou
Texas A&M University Commerce

Assignment 2: Enron Case Study

1. Identify the likely causes of Enrons failure and which parties were most responsible?
Enrons failure was caused by many environmental members in addition to wrong and wrong decisions of its management. The deregulation of the energy industry was a major element that each(prenominal)(prenominal)owed companies to have access to a wider range of manoeuvres. Arthur Andersen which had been Enrons attendant since its formation in 1985 had warned the board of directors many times near the suspicious nature of many transactions and the extensive stake that some of these transactions represented. In addition, the poor control and the lick of Skilling regarding trading futures on the delivery of gas had led Enron to bankruptcy. Skillings confidence on the his risky strategy drove the square to its grave, especially with September eleven crisis that lead many shareholders to immediate payment their short term securities and trigger the Enron kick in. Moreover, as auditors, Andersen had failed to address the free to the board of directors and to the overruling authorities.



Furthermore, the method used in the transaction was likewise innovative and used the different voids in the regulatory remains to commit unethical financial and business transactions.
2. Identify all the good deal who were harmed by Enrons collapse and explain the ways in which they were harmed.
The Enron collapse has affected many parties. The most harmed people are the employees. They were not only dismissed after the collapse but also all their saving and retirement final cause were very tie to Enron shares system. Thus they ended up solely empty handed. The shareholders have been severely affected also losing all their important investments.
3. Which of Enrons actions violated the law?
Enron never violated the law obviously; however, the firm had been using the gray facial expression of the regulations and...If you want to get a full essay, order it on our website: Orderessay



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