Enron Scam

Chad Ducharme Macroeconomics What do Enron, Tyco, and World-com have in common Intro The purpose of this work is to line of battle you what happens when you try on to cheat the system. the reason the g everywherenment does audits and checks for so galore(postnominal) frauds is because people nowadays will do whatever it takes to book a little extra money. What these companies did not only hurt themselves in the long run but hurt the millions of workers and families that were connected with them. The Companies Enron was formed in 1985 by two gas companies, Houston inbred Gas and Nebraska InterNorth.Enron incurred massive debt and, as the result of deregulation, no longer had exclusive rights to its pipelines. In order to survive, the company had to practice up with a new and innovative business system to generate profits and cash flow. To try to fix this Enron came up with the idea of becoming a gas bank to try to fix its problems. They would buy gas from a network of suppliers and consider it to a network of consumers, contractually guaranteeing both the supply and the price, charging fees for the minutes and assuming the associated risks. This became so successful that they decided to apply this to otherwise things instead of just gas like, coal, paper, steel, water and even weather.

In 2001 CEO Kenneth Lay retired and named Jeffrey Skilling president and CEO of Enron. On October sixteenth 2001 They reported their offset printing quarterly loss in over four years and went downhill until the company filed for bankruptcy on December 2 2001. Tyco labs originally started in the 19060s functional for the government. then in 1964 it went public and had three main branches; sacking protection, Electronics, and Packaging. After going public the companies focus became mostly on profits. In 1993 they branched into the Healthcare industry and eventually were the back largest producer of medical devices in the United States. One of the first red flags popped up in January, 2002. Tyco had forgiven a $19 million,... If you wish to get a full essay, order it on our website: Ordercustompaper.com

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