Hello! The final answer is ready. If you need anything revised or added, let me know!
Running Head: ENRON ACCOUNTING FRAUD
Enron Accounting Fraud
ENRON ACCOUNTING FRAUD
Enron Corporation was a United States energy trading that orchestrated one of the major
accounting fraud scandals in the history of the country. The company was founded in 1985 when
Houston Natural Gas Co. merged with a small local energy company known as InterNorth Inc.
Enron was a critical player in the energy industry and had become core to the American
Economy. It provided up to 20,000 jobs and was highly sought after by investors in which
thousands invested their funds. The organization was also dubbed as the most innovative of its
time due to the significant approaches it had initiated in its growth plans.
During its growth, the company invested in other merged and created other energy and
telecommunications businesses to boost its profits. However, the company got zero returns in
most of these ventures and hid the losses. When the 2000 recession hit, the company’s volatile
parts in the market were exposed. Creditors and investors found themselves losing millions in a
diminishing marketing cap. In 2001, it was discovered that the company used accounting fraud to
look more profitable and later filed for bankruptcy after its val...
15 Million Students Helped!
Sign up to view the full answer