A) What happened during the Enron case? What lead to the collapse of Enron? -Ken Lay (Founder and CEO), Jeffrey Skilling (CEO) and Andy Fastow (CFO) discovered that Enron wasn't earning profits so what they were doing is implemented along with the approval of Arthur Andersen the " upcoming value accounting. " This sort of accounting was to predict the future profit that Enron was going to make and list it as part of there future profit to the shareholders. -This creative accounting lead to produce " outside the house companies" that have been directly included in Enron to hide the loss the companies made. -As Enron announced big numbers to Wall Street, people began to cherish this company and started to purchase shares with the company. Enron even prompted their workers to buy stocks and shares of Enron and the selling price of Enron was growing to of up to $90. -As Enron received bigger, the business was collecting more loss and hiding them well. Things were getting so bad, Enron came up with the California Strength Crisis. -Enron hit the top when their very own stock hit $90 and after that things were starting to break apart. -Lay, Skilling and Fastow began to dump their stocks and shares of Enron, and continues to persuade employees to buy shares of Enron. -In the final, employees misplaced their whole retirement funds. They could hardly get access to sell off their Enron stock even though the executives had been cashing out their stocks and shares. A Vice President of the business exposed the company accounting scams. 20, 1000 employees had been laid off.

-Its trading functions relied greatly on complicated transactions, a large number of relating to offers many years later on. - Enron devices to hold on to debts off the balance sheet and so keeping profits high and shareholders cheerful. -Many of the company's professionals allegedly raked in substantial profits selling off their stocks and shares before the provider's problems proceeded to go public as well as its stock price collapsed. -After a while the losses were being shuttled about corners from the empire to keep them concealed, eventually coming to light in...

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