1. Case Study

Answer All the questions. All are related to the case study.

a. Would you agree with the view that Enrons growth was rooted in unethical practices? Substantiate your answer.

b. How was Enron, considered once the darling of American industry, turned into a company that caused terrible damage to the investments by investors? c. Trace Enrons growth as a powerhouse of the technological, fast-tracked new economy company. d. Explain Enrons unconventional methods of adding new businesses to its portfolio. How did the company branch into areas that were not its core competency business? e. What role did Arthur Andersen play in bringing about the ultimate collapse of Enron?

The case about the Enron fiasco is an interesting study as to how Enron, one of America's fastest growing companies came to grief because of the greed and duplicity of its top executives. The company was so big that the ramifications of its collapse triggered a chain reaction all over. Its shareholders lost their investments, and more than 25,000 workers around the world lost their jobs. Many banks that dealt with the company lost millions of dollars. However, the Enron fiasco brought about a positive outcome in as much as corrective measures were initiated by governments worldwide to correct such corporate frauds. Auditors too came for public scrutiny and governments started initiating a number of steps not only to arrest frauds but also to anticipate them and thwart such developments