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Enron Case Study Solution

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Most Important Frequently Asked Questions Searched By Students

Q1.What exactly is the Enron scandal?

 Ans. The Enron scandal was a financial scandal that involved the collapse of the Enron Corporation, an energy company based in Houston, Texas. Enron was once considered one of the most successful companies in the world, but it eventually went bankrupt after it was revealed that the company had been using fraudulent accounting practices to hide its massive debts and losses

Q2.Does Enron still exist?

Ans. Enron was an American energy company that was based in Houston, Texas. It declared bankruptcy in 2001 after it was revealed that the company had engaged in widespread corporate fraud and corruption. As a result, Enron no longer exists as a functioning company.

 Q3.What is the main problem of Enron case study?

 Ans. The main problem with the Enron case is that the company engaged in a widespread accounting fraud. This fraud involved the company misrepresenting its financial situation in order to appear more successful and profitable than it actually was. This deception led to the collapse of the company, as well as significant losses for its shareholders and employees.

 Q4.How did the Enron scandal affect society?

 Ans. The Enron scandal, which came to light in 2001, was a major scandal involving the American energy company Enron Corporation. At the time, Enron was one of the largest companies in the United States, with more than 20,000 employees and a market value of more than $60 billion.

 Q5.What ethical issues in business were involved in the Enron case?

 Ans. The Enron case involved several ethical issues in business, including accounting fraud, insider trading, and hiding of company losses. The executives of the company engaged in these activities to mislead investors and boost the company's stock price, ultimately resulting in the company's bankruptcy and the loss of thousands of jobs

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