Enron Collapse

Enron was an American energy, services, and commodities business based in Houston Texas that flourished in the 1990s. During it's finest years, Enron was known as one of the most "innovative" companies in the country with revenues reaching $184 billion and 30,000 employees in 20 countries worldwide. Enron appeared to be flourishing and an extremely stable business to its investors-however, little did the world know that the company was in fact in a state of bankruptcy and doing everything it could to keep it a secret. Enron had used partnerships to hide their billions of dollars of debt but everything came crashing down in October of 2001 when Enron had no choice but to come clean. Even though it was the company itself that made the first offense, many blame Arthur Andersen, Enron's auditors, for overlooking obscene numbers in Enron's balance sheets. In fact, investigators say that this auditing error was "complicit in perpetrating one of the biggest frauds in corporate history." Due to this collapse, thousands of people lost their jobs and thousands of investors lost billions of dollars.

Sources:

http://www.personal-writer.com/sample/business-analysis/the-collapse-of-enron-managerial-aspect

http://www.nytimes.com/2002/01/16/business/enron-s-collapse-overview-arthur-andersen-fires-executive-for-enron-orders.html?pagewanted=all&src=pm