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Essay / Research Paper Abstract
This 3 page paper discusses the impact of the Enron bankruptcy on the company’s employees, as well as the stock market and banks. There is also a connection to the California energy crisis. Bibliography lists 3 sources.
Page Count:
3 pages (~225 words per page)
File: D0_HVImpEnr.rtf
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Unformatted sample text from the term paper:
energy problems. Discussion Enrons failure stemmed from the questionable was it does business. Enron is an energy company; it was formed in 1985 and "grew into the nations seventh-biggest company
in revenue by buying electricity from generators and selling it to consumers" (Explaining the Enron bankruptcy, 2002). Unfortunately, it used "complex partnerships" in order to hide its financial problems, including
keeping approximately $500 million in debt "off its books" so it could continue getting the cash and credit it needed to "run its trading business" (Explaining the Enron bankruptcy, 2002).
After the stories began to break, Enron officials finally acknowledged that "the company [had] ... overstated its profits by more than $580 million since 1997" (Explaining the Enron bankruptcy, 2002).
Enron began to free fall in the fall of 2001, when it disclosed a "stunning $638 million third-quarter loss" (Explaining the Enron bankruptcy, 2002). Once these disclosures were made, the
Securities and Exchange Commission began to investigate Enrons partnerships (Explaining the Enron bankruptcy, 2002). The final straw came when Enrons main rival backed out of a proposed merger that would
have brought the company $8.4 billion (Explaining the Enron bankruptcy, 2002). When Enron filed for protection, its stock plummeted from $80 per share to less than $1 (Explaining the Enron
bankruptcy, 2002). The companys implosion cost thousands of employees their jobs as well as their live savings, which many of them had used to buy Enron stock (Explaining the Enron
bankruptcy, 2002). The employees: Enron had approximately 20,000 employees at the time of the bankruptcy (Explaining the Enron bankruptcy, 2002). When the stock prices began to fall, the company prohibited
its employees from selling their shares, saying instead that the retirement accounts "were being switched to a new plan administrator. Many longtime employees, including those who worked for energy and
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