Enron Case - 2918 Words

Executive Summary The United States that have been considered as a super power country and also the direction of science disciplines including accounting must felt bitterness. Business scandals that happened seemed eliminate confidence by the business world about the practice of good corporate governance in the United States. Enron was a company that was ranked as seventh out of the five hundred leading companies in the United States and is the largest U.S. energy company that went bankrupt leaving debts amounting to nearly U.S. $ 31.2 billion. In instance with the case of Enron known occurrence of moral threat behavior such as manipulation of financial statements with a record 600 million dollar profit when the company†¦show more content†¦Enron started to have a dangerous game because of this accounting strategy and after a couple years, Enron fall little by little. Enron’s corporate culture shifted because of Skilling command, he transforms the company image as a trading busine ss. He started to hire the best and brightest traders, he recruiting associates from the top MBA schools in the country and competing with the largest and most high-status investment banks for talent. In exchange for exhausting schedules, Enron spoiled its associates with a long list of corporate bonuses, also increase company facilities including concierge services and a company gym. Skilling rewarded production with performance-based bonuses, permitting traders to â€Å"eat what they killed.† For the energy trading business, Enron has changed their accounting method to â€Å"mark-to-market accounting† in the mid-1990s and used it for the first time scale for its trading transaction activities. Under this accounting method, no matter how outstanding energy related or other derivative contracts such as assets or liabilities that companies have on balance sheets of Enron at the end of a particular quarter, they must adjust them to fair market value, booking unrealized g ains or losses to the income statement of the period. Application of these rules in accounting for long-term futures contracts in commodities such as gas is that there are often no quoted prices upon which to base valuations as a difficulties. AccordingShow MoreRelatedEnron Case1075 Words   |  5 PagesMINI CASE: THE FILURE OF CORPORATE GOVERNANCE AT ENRON 1.Which parts of the corporate governance system, internal and external, do you believe failed Enron the most? In the evaluation of the Enron’s case; by trying to see the very big picture, it is not only about that the internal part of the corporate governance system was failed or but also the external part of the corporate governance system was also failed. As noted on the last paragraph of the mini case, many people from different positionsRead MoreEnron Case1899 Words   |  8 PagesENRON CASE Please read the Enron cases posted on blackboard and the one in your book then answer the following questions based upon the case and Chapter 9. Make sure that your answers are supported by the facts of the case and the concepts you learned from Chapter 5. Please rely only on the case/chapter 9 to answer the questions except for question # 12—requires outside search. Make sure your answers are sufficiently brief, concise, and relevant to the question. Please avoid generalRead MoreEnron Case2186 Words   |  9 PagesPart B: What role did the CFO play in creating the problems that led to Enron’s financial problems? In order to prevent the losses from appearing on its financial statements, Enron used questionable accounting practices. To misrepresent its true financial condition, Andrew Fastow, the Enron’s CFO, takes his role involving unconsolidated partnerships and â€Å"special purpose entities†, which would later become known as the LJM partnership. Taking advantage from the SPEs’s main purpose, which providedRead MoreEnron Case2402 Words   |  10 Pages Imane Malihi Prof. Fred Friend BLW411/511 March 27, 2014 The Downfall of Enron Corporation â€Å"Ethics and integrity are at the core of sustainable long term success †¦ Without them, no strategy can work and, as Enron has demonstrated, enterprises will fail. That’s despite having some of the ‘smartest’ guys in the room.† by Richard Rudden. As the quotation states, ethics and integrity play a key role in the success of any corporation; through these principles, companies can ensure their complianceRead MoreThe Case Of The Enron Case Essay1197 Words   |  5 Pages1.1. One of the most important fraud cases in the USA was The Enron case because of his criminal activity which involved a big part of USA. Let me give a short introduce about it, â€Å"In 1974, Kenneth Lay joined the Florida Gas Company, eventually serving as president of its successor company, Continental Resources Company. In 1981, he left Continental to join Transco Energy Company in Houston, Texas. Three years later, Lay joined Houston Natural Gas Co. as chairman and CEO. The company merged withRead MoreENRON Case Study1572 Words   |  7 Pages1. The Enron debacle created what one public official reported was a â€Å"crisis of confidence† on the part of the public in the accounting profession. List the parties who you believe are most responsible for that crisis. Briefly justify each of your choices. Following parties are believed to be the most responsible for the crisis. With any big organization going so bad, the blame starts with the top level executives, there was no different in this case. For Enron the blame started with Enron’sRead MoreCase: 9 Enron928 Words   |  4 PagesCase 9: Enron; Questionable Accounting Leads to Collapse Bruce Smith Minnesota School of Business BS430 Business Ethics MR. Morris November 25, 2012 1. 2. 1. How did the corporate culture of Enron contribute to its bankruptcy? Effective leaders are good at getting followers to their common goals or objectives in the most effective and efficient way; unfortunately for Enron, in the end Ken Lay and Jeffery skilling were too focused on profits that nothing else mattered. In theRead MoreEnron Case Study5921 Words   |  24 PagesEnron Case Study [pic] Part A: Problem Focused Analysis and Recommendations. 1. Brief Case Background. List key events, use timeline. Case Background At one time Enron was one of the world’s largest producers of natural gas, oil, and electricity. It also appeared to be one of the most profitable companies, taking shareholders from $19.10 in 1999 to $90.80 by the end of 2000. Enron’s top management answered to a Board of Directors whose responsibility was to question and challenge new partnershipsRead MoreThe Ethics Of The Enron Case1407 Words   |  6 PagesThe Enron case is a very popular case to show how the profession of accounting is vital to make the corporate world of business flow reliably. Enron was recognized as one of the world’s major electricity, natural gas, communications and pulp and paper’s company. However Enron was found to record assets and profits at inflated, fraudulent and non-existent amounts. Debts and losses were found to be excluded from financial statements along with other major transactions between Enron and other companiesRead MoreEnron Case Study Analysis1699 Words    |  7 PagesBusiness Strategy Enron Case Study 09/08/12 Enron Case Study: From Company to Conspiracy 1. What is the History of Enron, and what current situation does it find itself in? Enron was created by a combination of companies. These companies were Houston Natural Gas and InterNorth. These companies were merged together in July 1985. CEO of Houston Natural Gas, Kenneth Lay became chairman and CEO of the combined company. This happened in February 1986. The company changed its name to Enron on April 10th

Essay on Policy Proposal Student Loan Default - 3338 Words

Along with scholarships, fellowships, and grants, student loans are an important method of financing post-secondary education. With tuition costs rising, more students are borrowing to pay for college education today. However, not all students realize the burden of paying back their student loans. Many are defaulting. Moreover, individual borrowers are not the only ones who face the consequences of the loan default. The federal government recovers around 80% of the total defaulted amount of student loans, losing billions of dollars each year. The latest data from the U.S. Department of Education indicates that student loan default rates have been rising. Official 2011 default rate is 10%. (Comparison of FY 2011 2-Year Official Cohort†¦show more content†¦It is important to understand that many students borrow big amounts in federal government loans to pay for high tuition. Statistics show that the for-profit sector has the highest numbers of defaults among all colleges (Comparison of FY 2011 2-Year Official Cohort Default Rates to Prior Two Official Calculations) as the tuition in proprietary colleges is higher than in other schools. However, the government cannot completely ban for-profit colleges from operating, because some of them provide flexible and valuable educational programs and schedules that meet demands of many working students. To address this situation, I will look into existing studies to establish the reasons of why students go into default, will try to understand why students of proprietary colleges default more often, and will look into existing regulations on student loan approval process. Based on the acquired knowledge, I will try to develop a few regulatory policy options that can reduce the amount of the students going into default. The proposed options will include regulatory changes for the institutions as well as for individuals. Every policy is based on the analysis of the problem and stakeholders involved in the issue to better address the situation and prevent possible drawbacks and strong opposition. In their work Toward a Theory of Stakeholder Identification ... , R.K. Mitchell, B.R. Agle, and D.J. Wood identify a stakeholder asShow MoreRelatedEducation Is Valuable For The Citizens Of America Essay1219 Words   |  5 Pagesthere are about 20 million students enrolled in college, and the number is rapidly increasing. However, many families and individuals are not able to pay the steep price needed to enter the education system. In the recent decade (2000 – 2009), student loans in America have more than quadrupled, going from $149 billion to $630 billion. There are currently two options for students to finance their education, the Federal Family Education Loan (FFEL), which guarantees loans from private lenders, andRead MoreIs College Education A Tax Policy Program? Essay1635 Words   |  7 Pag esaftermath are not that bright. Because almost all students can’t afford to attend college, the consumption of student loans comes back to haunt them in the end. Since the government is not doing anything to fix this problem to help relieve people of student loan debt, every employment companies should establish a tax policy program for their employees to reduce their debt. Every year, the consumption of student loans keeps on increasing. Students are put into helpless positions to afford a collegeRead MoreIs Education A Tax Policy Program For Reduce Their Debt? Essay2253 Words   |  10 Pagescollege, reality is, almost all students can’t afford to attend college, and their student loans come back to haunt them in the end. Since the government is not doing anything to fix this problem to help relieve people of student loan debt, every employment company should establish a tax policy program for their employees to reduce their debt. Every year, the consumption of student loans keeps on increasing. According to the statistics graph at the bottom, 71% of all students graduating from four-yearRead MoreThe Four Major Banks of South Africa1235 Words   |  5 Pageshosting community interventions, their impact is to re-invest by so doing it will reinforces their values and succeed their business objectives Risks ï  ¶ Defaulted loans ï  ¶ Client loss ï  ¶ The change of investments within the bank Opportunities ï  ¶ Advertising ï  ¶ Increment of clients ï  ¶ Job creation ï  ¶ Businesses and individuals taking loans ï  ¶ Making a difference in SA and change the living in communities â€Æ' First National Banks CSR hold them accountable for their actions within local communitiesRead MoreRole Of The Consumer Financial Protection Bureau1433 Words   |  6 Pageschoosing among credit cards, or using any number of other consumer financial products. The mortgage market is the single largest market for the consumer of financial products and the services in the United States, with approximately $10.4 trillion in loans outstanding. Since last decade, market went through an unprecedented cycle of the expansion and the contraction that was fuelled in the part by securitization of mortgages and the creation of increasingly sophisticated derivative products. This ledRead MoreFinancial Risk Of For College Aid From The Department Of Education1294 Words   |  6 PagesStudent loans are unique. This same analysis would not apply to, say, home loans. With houses, private lenders play a critical role in determining who is a credit-worthy borrower, and what the appropriate loan amount is for the asset that is being purchased with the loan proceeds. The financial risk of being wrong causes lenders to take seriously the job of allocating loan capital efficiently. But in the federal student loan program, there is a single process for determining eligibility for collegeRead MoreSolution to the Foreclosure Crisis1326 Words   |  6 Pagesmoney floating around these days, what we need to do is reallocate what we do have. In order to see the merit of my proposal, a liberal-minded American (like me) may have to slightly adjust their ideals and open their minds a little bit. As I said, I’m all for social services. I’m a left-leaning guy, politically. However, the â€Å"Everybody Gets a Trophy Day† version of social service policy that we currently employ is simply not optimal. I believe that people deserve equal CHANCE in life; an equal CHANCERead MoreStudent Loan Debt and Forgiveness2560 Words   |  11 PagesPortfolio Paper: Student Loan Debt and Forgiveness Justin Puckett 5/17/2012 Public Administration: PMG300 Colorado State University Global Campus When it comes to achieving success in the work force and finding a fulfilling and lucrative career there are few things more important that higher education. Going to college and getting a degree is essential in finding success in the work force. The problem is when the cost of gaining that degree outweighs the financial compensation the career thatRead MoreEssay on The Government Should NOT Forgive Student Loan Debt1761 Words   |  8 Pagescollege degree, students are either being driven away entirely from earning a degree or taking out student loans which cripple their financial prospects well after graduation. Without question, the increasing national student loan debt is one of the most pressing economic issues the United States is dealing with, as students who are debt ridden are not able to consume and invest in the economy. Therefore, many politicians and students are calling on the government to forgive their student loan debts soRead MoreLoan Classification, Provisioning a nd Debt Default Trend in Mercantile Bank Limited15739 Words   |  63 PagesLOAN CLASSIFICATION, PROVISIONING AND DEBT DEFAULT TREND IN MERCANTILE BANK LIMITED SECTION – 1 INTRODUCTORY PART 1.1 Preface Now a day present world especially the Asian countries are going through an economic recession. Though the Asian economic crisis began few years back and it is some how tackled today but the 11 September incident aggravated the disorder in the economic infrastructure of our country. Our economy is much dependent on foreign aids. The World Trade Centre incident

Military Deployment and Children free essay sample

Instructor: Date Introduction Military deployment is a complex and demanding process, both to the soldier and to his or her family. It is a moment of psychological change affecting more than 1. 85 million children with one or both parents in the military and 1. 64 active service members (Chandra, Burns, Tanielian, Jaycox, amp; Scott, 2008) in the United States deployed for an average of 12-15 months. Children are more affected than any other member of the family. They are usually maladaptive and experience mixed emotions of disorientation, anger, loss, sadness, denial, loneliness and feeling overwhelmed. The children not only sacrifice their personal comfort, but also the love and care of the deployed parent. In addition, they may be required to mature early, become more independent and participate in decision-making (Lamberg, 2004). Children also have to deal with bereavement in case the deployed parent is killed in war, which makes them distracted, unable to sleep and angry. Statement of Problem Repeated and extended deployment has significant psychological and developmental challenges on the child (Lamberg, 2004). Since school is the second immediate environment for children where they spend most of their time, most of these challenges are exhibited in this environment. For instance, children of deployed parents report lower academic performance, behavioral changes in classroom (such as attacking other students and indiscipline), attendance and task completion during the deployment period (Chandra et al. , 2008). These behavioral changes may be caused by underdeveloped relationship skills and poor self-esteem, which increase the child’s vulnerability to bullying, criticism and stigmatization. Moreover, psychological maladaptive children have limited social contact and are unable to form new friendships, while others become rough, easily angered and bullies. Purpose of Research Emotional adjustments problems are common effects of deployment in children. The purpose of this research is to show that family separation due to deployment of one parent should not be prolonged. This is because if the deployment period is prolonged, the child may develop personality disorders and developmental challenges that may intensify as they grow (Chandra et al. , 2008). Background Deployment is a common phenomenon to military personnel. It is not only complex and taxing to service members, but also to their family. According to Chandra et al. (2008), a child faces significant emotional tribulations during deployment. This is because they keep on deviating with their life events from time to time. In the event, if the parent is deployed to a different region, the children have to leave their friends behind and other daily functions like schooling. It takes a toll on the children as they attempt to settle in the new environment due to deployment of their parents. Chandra et al. ’s (2008) study shows that children affected by deployment experience the same level of stress as children who have been affected by divorce. These children are considered to the most affected people in the event of deployment. In nature, children are maladaptive to their area of habitat. This is facilitated by schooling activities, which is a crucial part of every child. In schools, they form friends and powerful associations which are not easy to break without emotional conflicts. In the event that parents are faced with deployment, their children have remarkably little control of the outcome. It is a problem they have to face and bare without tussle. The affected children have no choice but to sacrifice their comfort. According to Chartrand, Frank, White and Shope (2008), the life experiences of children are vital and short lived since they are faced with deployment uncertainties . Every deployment process creates an elevated room for children to have stressful moments. Schools and other learning institutions play a key role in the growth of a child. Consequently, it takes a substantial time in the life of a growing child. Chandra et al. (2008) posit that constant change in the whole schooling environment can be stressful to a child. Children from military born homesteads are no stranger to deployment predicaments, which normally causes a shift from one school to another. Stress in this case is facilitated by changes in relationship skills and personal behavior. In most occasions, this leads to behavioral changes in children. Abrupt changes in behavior of a child may make him or her loose self esteem and general confidence in his life. As a result, such a child is highly prone to bullying and even stigmatization from other children. This deteriorates their general performance in class and social life. The deterioration of the child’s performance in class can be seen from their low academic performance, behavioral changes in classroom (such as attacking other students and indiscipline), attendance and task completion during the deployment period (Chandra et al. 2008). Some of the deployed children tend to develop anger management problems when they are teased by children in a different school. According to Fiore (2010), these children may develop anger and hatred towards their schoolmates, which may lead to physical confrontations in extreme situations. In order to ease their emotional turmoil and tribulations, they may turn to fists a s a means to ease their anger. This is related to emotional adjustment problems (Fiore, 2010). Lack of friends or peers whom they can share and talk to tends to make them bury their problems to themselves. This can lead to emotional breakdown and depression, as well as elevate psychological levels, which may lead to insanity of the affected children. Researchers have ascertained that children whose parents experience deployment mostly to war torn countries are normally at high risk of experiencing psychological problems. As a case reference in behavioral pediatric suggests that a third of children who have a parent deployed are normally at the risk of attaining psychological disorders (Richardson et al. , 2011). This arises mostly because of elevated stress to the at-home parent. Lack of stress management services in such situations is critical to the life of a child. Deployment related union separation is also a common phenomenon that affects children who come from military based homesteads. This is because deployment is a source of marital problems in some families. A spouse may have a different opinion of the constant relocation problems arising from constant deployment. This is prevalent where only one parent in the family is in the military. As a result, the children in such homesteads may develop personality disorders (Engel, Gallagher, amp; Lyle, 2010). As they mature, their disorders may intensify. This is facilitated by the insecure positions they may have felt when they were younger. As a side effect to this phenomenon, they are likely to develop personality disorders. This creates problems in building relationship in old age (Sheppard, Malatras, amp; Israel, 2010). Rationale of Proposed Research Military deployment has a significant emotional and behavioral effect on children. Engel, Gallagher and Lyle (2010) posit that this is a rising problem which needs correction. Their assessment of stress levels in families experiencing deployment problems shows that it is necessary to address this problem. The research also shows that recognizing the problems caused by military deployment is necessary to reduce emotional and behavioral challenges facing children who are unable to handle their parent’s deployment. These children also face academic challenges in school (Engel, Gallagher, amp; Lyle, 2010). The rationale of the research is to show the impact of military development on children and demonstrate the need for counseling and stress management services. This is because the stress associated with deployment is in most circumstances characterized by elevated levels of psychosocial morbidity mostly to the affected children . Methodology Sample Population The research will be conducted on children whose parents are active service members in the United States. The children will be classified regionally into South, West, East and Mid-West. The research will also draw from 2,000 children who will represent all regions. Each region will comprise 500 participants. The sample population will comprise children between three and thirteen years who have experienced at least once instance of parental deployment. The participants will comprise all genders and races within the age group. Measures The research will use records of the children from their mental and health records between 2007 and 2010. These records will be compared with their parent’s deployment records. The deployment records will provide data such as rank, age, marital status, service and type of deployment. The comparison of children’s health records with their parent’s deployment records will help the researcher identify any instances of behavioral and psychological changes occurring after the parent(s) has been deployed. The research will also monitor the number of behavioral and mental health visits using the International Classification of Diseases code of 1 to 18 used for diagnostic grouping (Gorman amp; Hilse-Gorman, 2010). The groupings will comprise behavioral disorders and personality disorders. Additionally, the research will categorize sample data on the level and type of stress disorder and anxiety disorders. Moreover, the research will look at the rate of outpatient health visits made by the child per year during the deployment period. This will help the researcher determine the level of exposure for each deployment aand determine the effect of military deployment on children. Procedures The materials used for the survey comprise an interview comprising various interview questions to help the researcher identify the behavioral and emotional implications of military deployment on children. The participants will have an option to agree to the interview, which will be conducted on the children in the presence of one or two parents. A psychologist will also be referred during the interview to identify any behavioral and emotional problems affecting the children during deployment. Additionally, the researcher shall conduct a survey of the children’s records and the parent’s deployment records. Quantitative methods will be used for the research. The independent variable will be military deployment while the dependent variable will be the child’s health. It will collect data such as gender, status, deployment status and rank of the parent. The research will use Gorman and Hilse-Gorman’s (2010) military classifications as Junior Enlisted, Senior Enlisted, Junior Officer, Warrant Officer and Senior Officer. References Chandra, A. Burns, R. , Tanielian, T. , Jaycox, L. , amp; Scott, M. (2008). Understanding the impact of deployment on children and families: Findings from a pilot study of operational purple camp participants. Center for Military Health Policy Research, WR-566, 1-69. Chartrand, M. , Frank, D. A. , White, L. F. , amp; Shope, T. R. (2008). Effect of parents’ wartime deployment on the behavior of young children in mili tary. Archives of Pedriatics amp; Adolescent Medicine, 162(11), 1009-1014. Engel, R. , Gallagher, L. B. , amp; Lyle, D. S. (2010).