Scandal Of Enron Scandal

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Enron was a Houston Based natural gas Pipeline Company formed by merger in 1985.The corporation Enron was effectively involved in energy broker, electronic energy training, global commodity and options trading. Enron was long viewed as star of the stock market. Enron was America’s seventh largest corporation. Enron was steady company with good revenue, a large part of Enron case was made up of paper.
Enron employed approximately 20,000 staffed workers in an organization and was one of the major electrical, natural gas, communicators and pulp and paper companies, with claimed revenues of $111billion during 2000.
From 1990’s until fall 2001 Enron was known as one of the best America’s energy, commodities and services company. Enron was the largest
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Special purpose was created to mark more of the significant liabilities from Enron’s financial statements. These transactions seem more profitable than it actually was a danger. The corporate officers were creating more and more money of billions and dollars in profit while the company was actually losing money. The executives and insiders at Enron knew about the increased the accounts that were hidden loss for the company but the investors knew nothing of it.
The fate of Enron shook the entire US economy and its global perception of a well monitored and ethical economy. The scandal made the authorities realize the importance of internal control in business enterprises. It also helped understand the real meaning of share holder’s wealth maximization and the boundaries within which this key objective is to be achieved.
Initially, skilling and other CEO’s responded to questions by insulting reporters and lying to employees when pressure mounted executives sold his Enron shares at massive profit and resigned the company declared bankruptcy its formerly golden stock now worthless because of its silent complicity in the Enron scandal the company was also offered to close its

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