Everyone knows at least a small around the Enron story as well as the devastation (πωλουνται διαμερισματα) it made inside lives of is employees. It is a story that belongs in any discussion of ethical accounting (αγγελιες κατοικιων) processes and what happens as soon as accounting (αγγελιες κατοικιων) standards and ethics are discarded for personal greed.
Enron started out in 1985 selling natural (αγγελιες κατοικιων) gas to gas firms and businesses. In 1996, energy (πωλουνται διαμερισματα) markets have been changed so how the price of energy (πωλουνται διαμερισματα) could now be decided by competition in between energy (πωλουνται διαμερισματα) businesses rather than being fixed by government regulations. With this change, Enron began to function additional as a middleman than a conventional energy supplier, trading (αγγελιες κατοικιων) in energy contracts instead of buying and selling natural gas. Enron’s rapid growth created excitement among investors (πωλουνται διαμερισματα) and drove the stock cost up. As Enron grew, it expanded into other industries including Internet services, and its financial (αγγελιες κατοικιων) contracts became a lot more complicated.
In order to keep growing at this rate, Enron started out to borrow (πωλουνται διαμερισματα) income to acquire new projects. However, mainly because (πωλουνται διαμερισματα) this debt would make their income seem a smaller amount impressive, Enron started out to build partnerships that would enable it to keep debt off of its books. A single partnership created (αγγελιες κατοικιων) by Enron, Chewco Investments (named after the Star Wars character Chewbacca) allowed Enron to keep $600 million in debt off on the books it showed for the federal government and to individuals who individual Enron stock. After this (αγγελιες κατοικιων) debt did not show up in Enron’s reports, it made Enron look a lot more successful than it truly was. In December 2000, (πωλουνται διαμερισματα) Enron claimed to get tripled its profits in two years.
In August 2001, (αγγελιες κατοικιων) Enron vice president Sherron Watkins sent an anonymous letter towards the CEO of Enron, Kenneth Lay, describing accounting ways that she felt could lead Enron to “implode in a wave of accounting scandals. ” Also in August, (πωλουνται διαμερισματα) CEO Kenneth Lay sent e-mails to his employees saying that he expected Enron stock prices to go up. Meanwhile, he sold (αγγελιες κατοικιων) off his very own stock in Enron.
On October 22nd, (πωλουνται διαμερισματα) the Securities and Exchange Commission (SEC) announced that Enron was under investigation. On November 8th, (αγγελιες κατοικιων) Enron stated that it has overstated earnings for ones past four years by $586 million and that it owed more than $6 billion in debt by following year.
With these (πωλουνται διαμερισματα) announcements, Enron’s stock cost took a dive. This drop triggered particular agreements with investors that created it required for Enron to repay their cash immediately. Once Enron could not come up on the funds to repay its creditors, it declared for Chapter 11 bankruptcy.