Your research paper topic is: The Collapse of EnronThis is an opinion based research paper. In other...

Question

Your research paper topic is: The Collapse of Enron

This is an opinion based research paper. In other words, you are writing a paper that is YOUR opinion of what happened BASED ON RESEARCH THAT IS TO BE CITED IN THE PAPER. So for example, you can't just write "Arthur Andersen's special relationship with Enron was the leading cause of the eventual collapse of both organizations..." and move on to the next part of the paper. You made a conclusion/observation based on the research you have done and you must now use it to back up your conclusion. So you would write something like "Arthur Andersen's special relationship with Enron was the leading cause of the eventual collapse of both organizations. This was even the conclusion reached by renowned economist Jane Doe. In her book, Enron: What Happened, evidence is presented blah blah blah (this is the research part you cite).

Your research paper MUST provide the following information and answer the following questions:

1. Background/overview of what happened.

2 .Which groups of stakeholders (both internal and external) were impacted and how?

3. What caused the collapse of Enron?

4. What party(ies) (aka specifc individuals, specific companies/firms, specific government agencies/officials) were responsible for the collapse of Enron? How were they responsible?

5. What ethical misconduct or behaviors did these individuals and/or entities engage in that caused the collapse of Enron?

6. To what degree did the mishandling of organizational behavior lead to the ultimate downfall of Enron?

7. How could the collapse of Enron been prevented and how can a similar catastrophe be prevented in the future?

A really good movie to watch is 'Enron: The Smartest Guys in the Room' and 'The Crooked E' is another good movie about the fall of Enron. And obviously there are numerous books and articles on the topic.

WARNING: I will be taking proper work citation heavily into account. Make sure you cite properly. APA or MLA acceptable. MLA preferred. If you don't cite your work properly, it may propel the grade for the paper, to a failing one.

Additional info:

DO NOT WRITE THE PAPER IN SECOND PERSON ENGLISH (e.g. you, yours)

Must be beween 10 – 20 pages (I repeat a minimum of 10 FULL PAGES, not counting word cited page - so not 9.5 pages, I repeat, 10 FULL PAGES)

Paper must use Time New Roman 12

Paper must be double-spaced

Paper must use Word default margins

Paper must be submitted as a Word document

Shubham · Accepted Answer

1. Background/overview
The Enron scandal includes a series of events that has resulted in the bankruptcy of US energy, services and commodities. The collapse of Enron includes more than $60 billion assets that is involved in one of the biggest bankruptcy filing and it generates much debate with the legislation designed for improving the accounting practices and standards that includes long-lasting repercussions in the world of finance. The boom year has come to an end and the company has faced an increase in the competition in the energy-trading business and the profit of the company has fallen sharply. In the pressure from stakeholders, the company executives have shared relieving in the dubious accounting practices that includes techniques that is known as mark-to-marketing accounting for hiding troubles raised. These accounting laws allow the company to write the unrealized future gain from the trading contracts into the statement of the current income. It has created the illusion for higher current profits. It includes troubled operations for the company that are transferred from special purpose entities that essentially limit the partnership that is created with outside parties. The company has distributed assets to SPEs and Enron has abused practices with use of SPEs and it has created troubled assets. Transferring of assets to SPEs has caused losses. 
In Enron, the chief executive officer of Enron was taken over by Skilling. Then Skilling resigned and this has caused accounting scandals (Haswell and Elaine Evans, 2018). The severity of the situation started in mid-2001 and analysts began the dig into the details of Enron publicly released with financial statements. This has shocked investors and has caused $638 million loss and $1.2 billion reduction in the shareholder equity. With details that accounting fraud emerged, Enron has started falling and Fastow was fired and the stock price of the company plummeted. The credit rating of Enron has reduced and it has resulted in bankruptcy. The company went to great lengths to enhance the financial statement that hides the fraudulent activity that has reported the complex structure of the organization that has created confusion for investors and includes conceal facts. The complex structure of the organization includes leveraging special purpose vehicles and allows the company to shield the primary company by having the sponsoring company possess assets. The lack of transparency has caused the loss of value and is no longer provided with sufficient collateral that is required to be exploited. 
2. Groups of stakeholders
In this scandal, the key stakeholders that were affected included employees of Enron, Executive management of the company and thyroid parties affiliated with the company. The thyroid party includes international accounting firms like stockholders, Arthur Anderson and it includes the greater extended to the economy. The lack of transparency has caused short gain in finance at the expense of litigation for following the unforgettable reputation that has caused major lapse. It has resulted in dissolution with Arthur Anderson that is one of largest audits and accountancy partnerships in the world. Stakeholders were lost and it has caused the loss of investment for the company. The economy of the company has collapsed and that has caused massive loss. The scandal has been celery illustrated and required transparency. 
It has significantly blasted Enron workers with the retirement plans that were heavily endowed in the stock of the company. Even stakeholders have failed in owning Enron stock and the cost of stocks have fallen across board within the wake of the scandal. It has created doubt in the minds of stakeholders about the integrity of the company. It has caused loss of staff in jobs and it has caused Enron. 
In the company, several staff has seen the staff worth the retirement accounts collapse. The customers of the company were also explored from this scandal. Arthur Andersen was the first casualty of the company (Petra and Andrew C. Spieler, 2020). The firm was found guilty of obstructing justice for shredding the financial documents of Enron for concealing from the SEC. The executive has charged the conspiracy for insider trading and it includes securities fraud. The former CEO and founder have been convicted on six counts of conspiracy and fraud. Enron has collapsed and it has created financial havoc that has wrecked shareholders and employees that has led to new legislation and regulation for promoting the accuracy of the financial reporting for the company. The scandal has resulted in new compliance measures and it has raised the level of ethical conduct for the company. Company boards of directors are more independent and it includes monitoring of audit companies and it requires quickly replacing poor managers. It includes measures that include important mechanisms to close and spot loopholes that companies have used for avoiding accountability. 
3.

Your research paper topic is: The Collapse of EnronThis is an opinion based research paper. In other words, you are writing a paper that is YOUR opinion of what happened BASED ON RESEARCH THAT IS TO...

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