Enron was, at one point, one of the largest companies in the United States. Despite...
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Accounting
Enron was, at one point, one of the largest companies in the United States. Despite being a multi-billion dollar company, Enron began losing money in 1997. The company also started racking up a lot of debt. Fearing a drop in share prices, Enron's management team hid the losses by misrepresenting them through tricky accountingnamely special purpose vehicles (SPVs), or special purposes entities (SPEs)resulting in confusing financial statements. The company's board of directors failed to carry out its regulatory role in the company and rejected its oversight responsibilities, causing the company to venture into illegal activity. The company went under following an accounting scandal that resulted in billions of dollars in losses. As an expert in multinational
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