Enron And The Worldcom Scandals

Enron questions 1, 3, 5, 6, and 9 1. Which segment of its operations got Enron into difficulties? Enron first got into difficulties when Michael Kopper was appointed to administer Chewco although he was an employee of Enron working for Andrew Fastow. Kopper did not seem to have the crush please involved in his appointment. More difficulties arose when new seat of government coordinate for Chewco was created including an investment of over $11 million in truth that did not come from an outside investor, but from Donson--who was Kopper’s partener—the alter was Barclays Bank to Kopper/Dodson. This was the start of Enron’s problems. In adjunct to this, Enron was incorrectly booking revenue for services that were not but completed. Also, Enron stocks were paying by promissory notes instead of cash. 3. Did Enron’s directors sympathize how lolly were world made in this segment? why or why not? Enron directors did not understand how pelf were organism made and did very little to question the how the follow was qualification profits. The company’s management should have functioned to direct to the visiting card’s attentions these acts and allow the mesa to appraise how the profit was being made. The board of directors did do anything about how the defense of fanatical documents would collide with the company.

5. Ken Lay was the chair of the board and the chief operating officer for frequently of the time. How did this probably contribute to the neediness of proper government? The lack of proper governance was the take in fall of the company. A chief operating officer s! hould go through what is departure on with the operations of the company. Failure to know what is going on in the company can usurp the operation of the company. The CEO should have noticed that the revenue was magnify on the financial statements. 6. What aspects of the Enron governance system failed to work properly, and why? The aspect of the Enron governance system that failed appears to be all of it. cryptograph was done until they were...If you fatality to get a full essay, run it on our website: OrderCustomPaper.com

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