Enron Case

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ENRON 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 general, round, and long statements based upon speculations. “Briefly explain” means an explanation requiring 2-5 sentence elaboration of the topic in hand.

This is an independent and individual project that should be done by each individual …show more content…

4. a. Enron’s accountants, Arthur Andersen, acted unethically. List and briefly explain Arthur Anderson’s unethical act(s)? He shredded documents related to its audit for Enron.

b. Briefly explain why you think Arthur Anderson acted unethically? He knew what he was doing was wrong and still continued to do it.

5. How would you describe Enron’s corporate culture? Please write down 3 characteristics and explain each characteristic briefly: a. Value of risk taking b. Aggressive growth c. Entrepreneurial creativity How did the cultural characteristics above lead to Enron’s collapse? Explain briefly. a. Enron became arrogant. b. Company failed to check its creativity with an equal commitments to integrity. c. Aggressive partnership arrangements to maximize share value and hide their debt.

6. a. How were employees compensated / rewarded at Enron? Some employees and former employees elected to accept a 10% penalty and an immediate tax bill to get their money out of Enron deferred compensation plan established in 1994. At least a dozen former employees said they had their request denied, even as friends and colleagues still working at the company had their request granted. b. How were top executives compensated / rewarded at Enron? Enron allowed a small group of executives to withdrawal their money from a deferred compensation program giving

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