Case Study Of Enron

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It is a case study of Enron in which company is unable to make right financial statements. This company is unable to prepare balance sheet with present assets and add by self assets to overcome the failure. It makes financial reports to hide its debts. It was 7th largest company that fails in providing reports to investors. Its scandal in history especially in America. The case study is all about the failure of Enron, and writer explains the reason which leads to its failure. It was a big public company.
The Enron was established by merge of Houston Natural gas and Inter north. It is formed in 1985 by Kenneth Lay. Lay was the chairman of Enron. He did his education in Economics. First headquarters was located in Omaha and after they shifted to Texas. Enron failure start when it losses 90 million dollars. In few days but it employees make false financial statements to show that is had high assets. Then the founder decided to hire new persons in the company. Lay hired Jeffrey Skilling, who was graduated from Howard business school. Skilling introduced such bad methods to hide huge debts. In 1990, Enron started business to sell electricity at market prices. To sell electricity to people Enron gains huge profit. Then Enron decided to sell gas also. That time
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They deal on November 8, 2001. Dynegy purchases the Enron at a price of 8 million. Half payment is done in first but at that time Dynegy does not know their issues. At that time, SEC declared that company is bank corrupt and bank seals the company, so, Dynegy fails the agreement to merge with Enron. Enron shareholder and employees suffer. More than 4000 employees become unemployed. Million of shares go in lose. People suffer a lot. It affects the life of people. Billions of payments stopped. Hundreds of other companies and deals suffer. So Enron is resist bank corrupt scandal in America. Dynegy deal failed on 2 Dec,

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