Business

Once ranked the s notwithstandingth largest company in the world, elan vital trading giant Enron filed for bankruptcy in 2001 after investigators ascertained illegal schemes by some of its executives to inflate profits and better themselves at the expense of shareholders and employees. Enrons CFO Andrew Fastow drew a 10-year prison house sentence. Enron may be the poster child for corporate corruption, completely its far from alone in a modern vortex of malfeasance. Others indicted or convicted include bosses at Tyco International, Adelphia Communications, Martha Stewart Living Omnimedia, WorldCom and HealthSouth. Why did Enron smash-up? How did a company almost univers tout ensembley perceived as one of the best run, most innovative, most profitable trading operations in the world collapse so suddenly? Its a question that has almost as many solves as at that place are jail terms for the executives. The most popular answer explaining Enrons demise is that it wasnt actu ally making money -- that it was all a lie, that a combination of inquisitive accounting schemes and fraud cover up for the fact that the company made a serial publication of very bad business findings over the years, and eventually all the mistakes caught up with it. Enron spent billions purchasing and building power plants all over the world that never earned out.

It made an pushy move into the water business that proved to be a financial disaster. It had no internal controls on expenses -- or even any clear idea of how practically it was spending, or how much it owed, on a given day.From this perspective, Enrons collapse was inevitable -- the only mystery is how long it managed to pull the wool over everyones eyes. The bad business decisions made by Enron presented many traps in the decision making process. Ignorance traps, the negative consequences of behavior are not tacit or foreseen at the outset. The Enron executives must not have come in much thought into the consequences of their actions. Or if they did, they must have not cared very much, which is... If you want to get a full essay, revise it on our website: Ordercustompaper.com

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