Enron Collapse

What atomic takings 18 the main reasons that Enron whirl aroundd? I turn over the reasons for the collapse are three fold. Firstly Enrons accounting pr transactionices(mark to market accounting- companies estimate how much revenue a deal is outlet to bring in and state that number in their earnings the moment the assume is signed) Its managements goal was to maintain the appearance of foster by always having rising storeho drill prices rather than focus on creating trustworthy value for the federation.Secondly its reliance on spare Purpose Entities to constantly raise bully without increasing its indebtedness. It allowed losses to be kept off the books while assets to be stated. Enron had its stimulate executives manage these partnerships and would make the deals work by guaranteeing that if whatever they had to sell off declined in value, enron would make up the difference in its own stock. So basically it was merchandising part of itself to itself.It was these financ ial bolications to the SPEs that finish up triggering the collapse. Thirdly its lack of a truly independent auditor to fend for up to Enron ultimately caused its downfall. 2. Do you think Enron could have survived? I think if the connection had acted internally when Sharon Watkins reported suspicious accounting, and dealt with it internally , Im sure the share prices would have dropped upon account of the actual financials but maybe the company could have avoided bankruptcy. 3.Crisis Management Consultant of Arthur Anderson, what would your advice be to the CEO? I think I would have admitted the absurdity of performing two auditing and consulting functions I maybe would have focused on the hiring of of Arthur anderson employees as enron employees, who then managed the affairs of their old colleagues. Ethical lines got blurred. Then use this platform to lead the industry to reforms and act oversear of how to avoid their mistakes and breakdowns of communication within their corp oration.