Enron: The Smartest Guys in the Room question?

Question

Describe at least five-unethical behaviors by individulas, or the corporate enthity.

can any one help me with this.... Thank you

Answer 1

It is hard for me to understand your question, but here goes.

In real simple terms, what happened at Enron was:

Enron would by a unit of energy for say $95, and then sell that same unit of energy for $100. That would make for a profit of $5 on that single transaction.

What they did (wrong) was to record the $100 as profit instead of the real profit of $5. This kept going on and on until some people started noticing things. Wall Street analysts were able to reason that Enron could not be making as much profit as they were showing on the books, so one by one the Wall Street analysts downgraded Enron stock.

These numerous downgrades caused investors to sell Enron stock, which caused the price of the stock to go lower, which in turn caused a depletion of capital for Enron. In order to get more money to finance their scheme, Enron turned to the banks to lend them money. This cycle kept repeating itself. After a while the banks refused to lend more money to Enron, because they figured that Enron was over extended on their credit. After all of this Enron had no more money, and had to declare bankruptcy.

Enron was in effect borrowing all their money from shareholders and banks. When those sources of money dried up, bankruptcy was the only option.

Answer 2

well, cannibalism, torture, bribery, lying, cheating, etc. works for individualism or corporate entities.