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Ken Lay (Founder and CEO), Jeffrey Skilling (CEO) and Andy Fastow (CFO) found that Enron wasnt making money so what they did is implemented along with the approval of Arthur Andersen the proximo value accounting. This property of accounting was to predict the future advantage that Enron was going to define ab go forth and list it as part of there future profit to the shareholders. This creative accounting lead to Fastow to create outback(a) companies that were in a flash involved with Enron to hide the losings the companies made. These companies were named after Star Wars characters. As Enron announced big be to Wall Street, people began to worst the books notice of this companionship and started to donation shares of the company. Enron even encouraged their employees to buy shares of Enron and the price of Enron was going up to as high as $90. The craze of Enron stock was so huge within the company, they had a stock ticker cut throughout the company so employees could keep track of Enron stock. Enron executives were bullies to the investiture companies. When a financial adviser questioned their firms regarding Enron stock, Enron would pay the firm to win rid of the employee. As Enron got bigger, the company was collecting more losses and hiding them well. Things were secureting so bad, Enron created the atomic number 20 Energy Crisis.

They would tell the utilities in the state to exclude pig their power, re-route the power to Texas where they can sell the power posterior at a higher rate, basically screwing California out of billions of dollars (one reason why Arnold became Governor) . Including the bad investments made in Indi! a (their programme was to over charge the customers, but didnt work because nada will pay for it). Enron hit the top when their stock hit $90 and then things were starting to fall apart. A writer at Forbes magazine called Enron telling them that she was going to release an oblige round Enron and not releasing their financial statements. Enron executives flew to New York telling...If you indigence to get a full essay, order it on our website: BestEssayCheap.com

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