There are six main categories of corporate failure causes: poor strategic decisions, overexpansion, dominance of CEOs, greed, pride and power, failure of internal controls, and ineffective board of directors (Hamilton and Micklethwait, 2006).
Business collapse can happen in cases where companies do not fully comprehend the relevant business drivers when they decide to expand to new lines of products and services, or meet the demands of additional geographic markets. These lead to poor strategic decisions because they fail to recognize the importance of risk management in their respective industries. They should be able to determine the overall impact of Continue reading...
Essays on Enron
Corporate Collapse Essays Examples
There are six main categories of corporate failure causes: poor strategic decisions, overexpansion, dominance of CEOs, greed, pride and power, failure of internal controls, and ineffective board of directors (Hamilton and Micklethwait, 2006).
Free Research Paper About Organizational Analysis: Enron
This report analyzes the case of Enron and its failure. The practices adopted by the management have been analyzed and criticized in order to identify the main cause behind the whole issue. Along with this, the report also suggests different solutions and recommendations for the management in order to minimize or stop the risk of such issues in the future. The report has also highlighted the importance of Information System in this case. Moreover, the report presents suggestions regarding how the implementation of Information System can help the management to avoid such issues.
Organizational analysis: Enron
Enron scandal is one of the Continue reading...
Good Example Of Accounting: Barings Bank Essay
The collapse of both Barings Bank and Enron brought some insight and worthy lesson that can be adapted in accounting in its various capacities. Their failures among other big corporations have indeed brought the need of the proper understanding accounting in its qualitative, independent and objective aspects. As it was noted in Brown’s “Making sense of the collapse of Barings Bank, Human Relations” contributions, accounting and the various practices involved in it produces various texts that include; press releases, annual reports and even security regulator documents. They give a company’s story over a specific period of time.
Appointment Of Directors Essays Example
The financial statements of organization are the measure of its performance. The financial health of an organization can be judged from its financial statements. That is the reason why the statements should represent a true and fair view of its position. Often people at key positions are encouraged to falsify accounts to meet short term needs such higher earnings per share or profit after tax. Sometimes people engage in such activities to conceal the actual position of the organization and make it look profitable in the eyes of investors. It is not just big organizations but the small ones Continue reading...
2nd Article: Operations Strategy Essays Example
This paper handles three articles with different views in the business world. Each article will be summarized separately on its views on how various agents or players should be guided and the expected results.We then have a discussion concerning the three articles. Conclusion is prepared to give a clear view of the three articles’ view and a judgment is made on the lessons learnt from the three articles.
This Paper talks about Jack Stack who in the last 10 years has been speaking to the students in MIT School of management concerning the ideals and values of the engine Continue reading...
Free Articles Summary Article Review Sample
The article sheds light on how large corporations such as Enron and WorldCom have been involved in malpractices related to the way these corporations were run. Both Enron and WorldCom were guilty of ignoring the demands of the stakeholders. Therefore, there is a strong need for major changes in the way such corporations are run, and for environmental and social factors to be kept in mind. One way of pleasing all parties is through a process called Socially Responsible Investing or SRI. SRI does not mean that businesses ignore the financial side of things and safeguard social and environmental Continue reading...
What Is Integrity Critical Thinking
Warren Buffet, who is the Chairman and CEO of Berkshire Hathaway, stated "In looking for people to hire, look for three qualities: integrity, intelligence, and energy. And if they don’t have the first one, the other two will kill you" (Anderson 2012). Indeed, integrity is that special virtue of one's character that makes a person trustworthy to others. Integrity is the very foundation of principles and values that form the core of a person. Integrity means adherence to moral and ethical principles and the path of honesty. Integrity is extremely valuable and has become a rarity in Continue reading...
Example Of Book Review On Peoples Issue
Summary : Managing business ethicsLinda K. Trevino & Katherine A. Nelson. Wiley; 5th edition
Chapter 4 – Addressing individuals’ common ethical problems
Ethical issue when people work together (privacy, discrimination, sexual harassment or simply how people get along. Key is fairness meaning equity, reciprocity, impartiality
- Equitable is when something is divided between 2 people according to the worth & inputs of the 2 individuals. Most people think it’s unfair when 2 people have performed the same duty but receive a different share of the reward
- Reciprocity: “if you do this for me I’ll do this for you”. Most ppl think it’s unfair if one Continue reading...
Free Applicable Financial Reporting Framework Business Plan Sample
Business Plan - Construction Plan
Business Plan - Construction Plan
This report presents a business plan for a construction company. The report includes a description of the business type, products and services involved and the chart of accounts, which will be used while keeping in view the nature and requirements of business activities. In addition to this, a discussion pertaining to the applicable financial reporting framework and the pro forma financial statements have also been presented, which include the balance sheet and income statement of the proposed business. Apart from this, the report also takes into account the internal control procedures, which will be Continue reading...
Sample Research Paper On Court Judgment
The present day corporate world is well aware of the increasing cases of accounting fraud. Governments and regulatory bodies are finding themselves in embarrassing situations after corporation’s collapse, even after receiving a clean bill of financial health from their auditors, a landmark case being that of Enron. These incidences have led to the accounting regulatory bodies, securities regulatory bodies and other government institutions mandated with the regulation of the accounting profession to demand that auditors are accountable for their actions or omissions in the performance of their duties. In the case study below however, there is a conflict Continue reading...
Ethical Violation Article Review Examples
In any business, the major battleground is financial accounting, and there is no government or industry regulation that can prevent unethical ways that people use in dishonestly reporting given financial information (Duska, 2007). For example, there are certain accounting practices that are illegal like misinterpretation of figures and expenses on a company’s financial statement. However, some legal accounting practices are unethical (for example, influencing financial results by shifting expenses unjustifiably).
Arthur Andersen LLP is a good example of a company that violated accounting ethics. This accounting firm would have become one of the largest firms in the USA Continue reading...
Good Unethical Issues In Enron Documentary Essay Example
Based on the documentary film Enron, it is apparent that Kenneth Lay was motivated by a genuine goodwill to prosper commercially when he merged two energy companies in Texas to form Enron. After its incorporation, Enron would later ride along the economic convenience created by deregulation of natural gas trade. Deregulation of natural gas market facilitated generation of vast revenues through sales at high prices. As the company’s revenue increased exponentially, human ingenuity infiltrated into Enron’s executive body. Consequently, executive officers and financial professionals within the firm adopted accounting principles that gave birth to what became an Continue reading...
Good Criminal Law Essay Example
What second topic have you selected for this assignment? Explain.
I have selected corporate or white collar crimes for the second topic. The last few years witnessed the scandals in the global corporate scene among the U.S. and European companies and their counterparts in the other parts of the world. Corporate crimes are synonymous to “Corporate frauds,” “corporate breakdown,” “accounting scandals,” “corporate scandals,” among others, have been tagged to these corporate controversies (Ball, 2009). One of the best and most popular examples of corporate crimes is the case of Enron. This happened some years ago and such type of Continue reading...
Organizations & Institutions Final Essay Samples
Q2) Prior to the 1980s, it would make sense that institutional investors would be a high priority for corporations, given that they technically contribute the most money to an organization’s success. However, given that institutional shareholders were relatively late in adopting the shareholder value culture, this perspective is flawed. While economic necessity might make organizations favor shareholder priorities, corporate culture (particularly in the 1980s) relied heavily on managers, who were thought to be in charge of corporations up to the 1970s, and whose fealty to government regulation made institutional shareholders wary of investing.
In the early ‘80s, however, Continue reading...
Good Example Of Financial Accounting Report
Cash Flow Statement
*Refer to excel sheet for all the calculations
**We have started Cash Flow with operating income as even with net income we had to add back items to reach at operating income only.
Importance of Cash Flow Statement
Unlike other financial statements, Cash Flow Statement details the position of cash in the company. While both the income statement and Balance Sheet are made on accrual basis, Cash Flow is made on cash basis of accounting. In this way, Cash Flow Statement provides a detailed and an in-depth overview of cash inflows and outflows from the company. Below discussed is some other Continue reading...
Good The Collapse Of Enron Brought Significant Changes To The Accounting Profession Research Paper Example
- Methods used by Enron to manipulate accounting figures
The fall of Enron was one of the highly publicised corporate failures. The directors of the company manipulated the financial statements of the company to mislead users of accounting information. The methods used by the firm included mark-to-market and off-balance sheet financing as well as interference with auditor independence.
Enron changed its revenue recognition policy from the traditional revenue recognition principle to mark-to-market accounting. As an energy company, Enron’s incomes were derived from mainly the sale of natural gas. As a practice, Enron entered into several long-term contracts with Continue reading...
Good Contract Law: Termination Or Renegotiation Of Contracts Essay Example
If the choice is between renegotiation and termination, Missan should renegotiate rather than terminate the contract. Unilateral termination may not be available to the company because of the weak grounds for its justification. It can, additionally, expose the Company to risk for potential wrongful termination, which can result to liability. On the other hand, a renegotiation can give Missan an opportunity to set new terms that are more favourable to it, taking into account the present circumstances.
Repudiatory Breach as Justification for Termination
Missan can only terminate the contract with Depeche if such termination can be justified, otherwise it may be exposed to liability for Continue reading...
Free Research Paper On Corporate Governance
Corporate governance has sprung out as a concept in response to the increasingly critical corporate scandals that were taking position in the late 1900s. The concept has remained strongly concerned with the areas of corporate risk. Nonetheless, the notion surrounding Corporate Governance is becoming more widely applicable and useful, for both the small and big organizations. The concept is also an increasingly substantial facet of a job and organizational management that transcends to global government and trade laws; as easily as to the international corporations, organizations and markets. The term corporate governance is a conglomeration of two words; corporate Continue reading...
Free Thomas' Five General Approaches To Managing Conflict Include The Following Case Study Sample
1. What is framing? Name 2 leaders who have utilized it effectively in casting a vision.
Many a time leaders forget to communicate to the team members the goal of an initiative in a clear and compelling way. Framing is the competency of the leader to make others understand the outcome of a situation or project so that the entire team can take effective action. For example, Jack Welch was able to communicate the business goals of its leadership as well as other stakeholders properly and it resulted in a huge success of GE during his tenure as the Continue reading...
Free Enron Movie Review Example
Summary of Enron: The Smartest Guys in the Room
In the documentary Enron: The Smartest Guys in the Room, director Alex Gibney tells the story of the fall of the energy company through a series of stories on the characters involved, using a lot of archival videos. Enron was basically a Ponzi scheme, and the scandal was similar to the Bernie Madoff saga of 2008, which was another conspiracy, based on exploiting deregulation and preying on investor greed. The timing is also interesting. Madoff’s scheme fell apart during the recession of 2008, while the Enron bankruptcy occurred right after the “dot-com” bust of 2000. As long as Continue reading...
Good The Rise And Fall Of Enron Research Paper Example
History of Enron is a story that started very well. It was a real business with a tremendous reputation. It had created a market for trading. The best people worked there. Enron Corporation was a giant of American energy industry. Prior to its bankruptcy December 2, 2001, Enron had about 22 000 employees and was one of the world’s important manufacturer of electricity, natural gas, communications, and the owner of the pulp and paper companies, with revenues of nearly $101 billion in 2000. In general, who does not hear about Enron? It is the most scandalous president deception Continue reading...
Free Essay On The Corporate Governance
I agree that the case study propagates unwarranted myths and buzzword by minimizing firms for such reasons as neglecting to have a retirement age for chiefs and neglecting to discrete the administrator and CEO roles. They guarantee that the defeat of numerous organizations has developed about as of the lack of monetary mastery on the board. Different purposes behind poor appraisals are neglecting to oblige that chiefs and executives have a legal set measure of value possessions. The earlier history of administration on sheets of firms enduring the monetary pain; disappointment to have a formal retirement age, board size, Continue reading...
Story Analyse Essay Example
The 2001 Enron Scandal was one of the first corporate persecutions of the New Economy. The fall of the company marked one of the biggest cases of bankruptcies and pointed at the gaping hole in America’s corporate morality and responsibility. The constant pursuit of profits and indiscriminate bid for rising revenues, while trying to downplay all signs of dangers of such a path, led to the collapse of the company. As long as the company value was increasing and stock prices rising thus benefiting the investors, even the board of directors did not bother to take an in Continue reading...
Free Literature Review On Auditor And Audit-Firm Rotations
Independence is the cornerstone of the accounting profession. Without it, any opinion rendered cannot be relied upon by outside parties. An auditor must not only be independent in fact but also in appearance. According to Hill and Booker (2007), both are studied to understand what independence is required in the profession but research evidence related to independence in fact requires far more effort as it involves information that is not always publicly available (as cited in Daniels and Booker, 2011, pp. 79).
In previous years, it has been a common practice that auditing firms also provide tax and consulting Continue reading...
Free Deviant Behavior Of White Collar Criminals: Sociological Perspective And Discussion Critical Thinking Example
While many certainly agree that white collar crime presents serious legal issues the sociological implications, regarding deviant behavior, is not always obvious. No discussion inspires a proper balance for analysis without a relevant definition of our terms. According to a ‘Sociology’ glossary, published by the McGraw-Hill Higher Education (2014) group deviance is defined as “Behavior that violates the standards of conduct or expectations of a group or society.” The same glossary defines the concept or theory ‘anomie’ as a Durkheim term for “the loss of direction felt in a society when social control of individual behavior has become ineffective” (“ Continue reading...
Global Crossing Fraud Research Papers Example
Global Crossing Limited is an example to all regarding the failure of a proper audit of financial statements. It was a telecommunication company which had gone through the scandal in 2001. The scandal was caused due to reporting of the financial statements against the audit purpose. The management is highly responsible for the preparation and presentation of the financial statement, the auditors and the management did not exercise professional care and did not investigate about many issues which were wrongly reported in the financial statements. This led to the downfall of a highly ambitious company. The company went through Continue reading...
Example Of The History Of Financial Auditing Research Paper
This research paper discusses the history of financial auditing. Studies indicate that financial auditing has been evolving through many stages. In the 18th century, the practice of financial auditing was a traditional conformance to the role of auditing. It is clear that the auditing paradigm has been changing and will continue shifting into the future. Financial auditing originated from checking procedures in ancient civilizations such as Greece, Egypt and China. The industrial revolution period established the role of financial auditing. The Institute of Certified Public Accountants in America and The SEC (Securities Exchange Commission) play a critical Continue reading...
Free The Scandal Research Paper Example
Enron was believed to be one of the leading, innovative corporations of the world. The company that received the “America’s Most Innovative Company” award for six years in a row by Fortune magazine saw a sudden fall in 2001 and shocked the entire industry. The fall of the giant corporation did not only affect the industry but also shattered the dreams of the employees and stockholders of the company who had been bedazzled by the great profits.
The factors behind the fall of this huge corporations were never identified before Continue reading...
Free Critical Thinking About Credit Management
Credit managers handle various crucial affairs and contribute significantly in optimizing profits of the company. They also play significant role in reducing losses of a company. Considering their important roles, they need some skills in order to carry their responsibility. This paper intends to discuss skills, role and opportunities of credit managers along with discussing the importance of organizational culture in credit management.
Credit managers should possess problem solving skills. Credit managers face a variety of challenges and issues in their career and they can successfully tackle all these challenges if they have problem solving skills. Since they Continue reading...
Good Example Of Analyzing Ethical Behavior Essay
Ethics and Corporate Social Responsibility should work in harmony in a corporate world. These are key traits defined for maintaining good business morals, hiring employees with personal ethical values, and behave ethically and sensitively towards the society, economy and environment as a whole. We will discuss four theories in the context of Bernie Madoff and Enron two of the top financial scandals in the history of America.
Profit Maximization Theory - This ethical theory requires decision makers to maximize the profits of their business within the limits of the law. According to the theory the role of government and Continue reading...
Problem Statement Research Proposal
Application Week 8 Problem Statement
In December 2001, American Energy multinational-Enron collapsed leaving more than 20,000 employees stranded! The company, which, had more than $100 billion in annual revenue collapsed not largely due to the financial scandals that came to the surface, but due to lack of proper crisis management tactics (Hodak, 2007). Enron led a horde of other big companies in poor crisis management, which led many companies to institute crisis management plans. However, many companies are still getting it wrong when into comes to crisis management as witnessed by the recent global financial crisis of 2008-2009 when several companies suffered Continue reading...
Existing Qualitative Studies Essays Example
The research topic for a qualitative study was To investigate the presence, use and effectiveness of crisis management plans in differently sized companies. The collapse of giant energy and commodities company-Enron-in early 2000 was a revelation in crisis management. Although embroiled in financial fraud, massive debts, human resource wrangles and other issues that need to be addressed as crises, many companies both big and small have failed to institute crisis management plans (Hodak, 2007). A study into crisis management requires for the establishment of descriptive rather than quantitative issues. In this case, the qualitative study shall be looking at Continue reading...
Example Of Legal And Ethical Consideration In Marketing, Product Safety, And Intellectual Property Research Paper
The research seeks to identify ethical issues relating to advertising, marketing, intellectual property, and regulation of product safety. The paper takes a position against drug companies using Direct-to-Consumer (DTC) marketing. The paper also determines who currently regulates the compounding pharmacies regulatory scheme and what the Food and Drug Administration (FDA) should have done and if they should be given more say and power over compounding pharmacies. Again, the paper determines whether the use of Colberian intellectual property by PharmaCARE’s would be ethical in accordance with Deontology or not, virtue ethics and utilitarianism. The paper analyzes how PharmaCARE protects Continue reading...
Sample Case Study On Enron: The Smartest Guys In The Room
Madoff was an American who was found guilty of fraud. He was in charge of a Ponzi scheme in the United States. The scheme is known to be one of the biggest financial fraud that ever happened in the United States of America. Madoff through his firm, Madoff Investment Securities, which bypassed other firms through making orders directly over the counter by making use of its retail brokers.
Those that assisted him in the fraud crimes included his close relations who he employed at his firm, Madoff Investment securities. He employed his brother and two sons as well as Continue reading...
Free Research Paper About White Collar Crimes
WHITE COLLAR CRIMES
The topic corporate or white collar crimes due to prevalent scandals in the global corporate scene that occurred during the recent years witnessed by U.S. and European companies and their counterparts in the other parts of the world such as “corporate frauds,” “corporate breakdown,” “accounting scandals,” “corporate scandals” as the major controversies surrounding the corporate world (Ball, 2009).
Buell (2014, p. 827) has defined a white collar crime as “one that is committed by a person of respectability and high social status in the course of his occupation.” Corporate crimes are caused by various factors and Continue reading...
Responsive And Effective Corporate Governance Essay Examples
The idea of effective corporate governance and responsive corporate governance has gained momentum in the business environment of Australia and the United States of America after the global financial crisis. In United States of America, the scandals of Enron and WorldCom provided grounds for accessing effectiveness of corporate governance institutions in the United States of America. The paradigm of effective and responsive governance is a key determinant of the overall performance of corporates and the stakeholders as it champions the idea champion for transparency, fairness and accountability (Brink, 2011, p.49). The governments of United States of America and Continue reading...
Argumentative Essay On True And Fair View Of The Financial Statements
Over the years, the term ‘’True and Fair view has been a matter of debate for the accounting pundits with each asserting his own view over the term. The debate is based on the usefulness, importance and most importantly, the exact definition of the term. In this paper, we will unearth the view of various accounting academicians and accounting literature and will look if there exist a common definition or rule for ‘’True and Fair view’’. Later, we will also look forward to the role of ethical education in ensuring ‘’True and Fair view’’ of the financial statements. I Continue reading...
Good Persuasive Synthesis And Final Draft Essay Example
The choice of one’s career path is partially determined before one joins college or other institutions of higher learning. I am no exception to this, as I knew the career path that I wanted to pursue before I went to college. Imagine that you own a firm that needed attestation ad assurance services, share and debt issuings, mergers and acquisitions and initial public offerings. Which professional will you call upon? Imagine you require services like tax planning and preparation, estate planning, financial analysis, financial accounting, financial reporting, venture capital, management consulting, income tax and performance management. Which professional Continue reading...
Good Term Paper On Causes Of Enrons Collapse
Analysis of the Collapse of Enron
Every business venture can be characterized by a series of ups and downs. A startup business, for example, may initially face a lot of problems, big problems at that, perhaps to make both ends meet. After the initial stages, the business may enter a period of stability. And that is where the cycle of ups and downs often begins. Enron, a business that started in the 1980s as a securer of oil and natural gas pipelines in the United States, is not an exemption. Its business life cycle may well be characterized by a series of ups and Continue reading...
Paul Rand Reports Examples
Paul Rand was an American graphic designer whose works were characterized by the use of humor, symbolism in visual image and the rebus-like pun. A self-taught designer who learned about graphic designs reading journals and books, he was famous for the creation of corporate logos and posters like that of IBM, ABC Corporation, Enron and Atlas among others. His two masterpiece creations, which are still in use today, are IBM logo and IBM poster. This paper has given an in-depth analysis of the two along with a glimpse into the life and career of Paul Rand and his contribution Continue reading...