The Enron and Worldcom Scandals Essay Example

The Enron and Worldcom Scandals Paper E. Boos – Week 2 – Assignment February 17, 2013 The Enron and WoldCom Scandals ENRON 1. The segment of Enron’s operations that got them into difficulties had several parts. They published misleading financial reports. They could not meet their bridge financing commitment with Barclay Bank because outside investors were not found. Because of this, they restated activities of JEDI and Chewco SPEs so they could be retroactively consolidated into Enron’s accounts. The SPEs helped to hide the inaccurate accounting records. Enron’s legal department wrote contracts that helped provide a cover for misuse of funds regarding the SPEs. Future revenue was reported as current revenue. Stocks were paid with promissory notes instead of cash. They also engaged in off-the-books activities and excessive executive compensation. Enron’s board of directors allowed the executives, accountants and legal department to use Special Purpose Entities (SPEs), a type of partnership, in an attempt to camouflage their debt and create a facade of financial stability (Brooks, 2007). 3. Enron’s directors understood how profits were made. They also knew management’s activities were dishonest. Andrew Fastow was active in forming the SPE partnerships and his affiliation with LJM2 was a conflict of interest. When Enron began experiencing financial problems in October 2001, the board of directors began holding special meetings. They were paid with cash, restricted stock, phantom stock units and stock options. The Senate Subcommittee Report, dated July 8, 2002, found that the Enron board of directors was aware that employees participated in management of the SPEs which was a conflict of interest. We will write a custom essay sample on The Enron and Worldcom Scandals specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on The Enron and Worldcom Scandals specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on The Enron and Worldcom Scandals specifically for you FOR ONLY $16.38 $13.9/page Hire Writer The directors ignored the inaccurate accounting, extensive unrecorded activities and excessive executive compensation. The Senate report discovered that the board of directors knew of financial activities between Enron and some of the board’s members. The board permitted consulting services, internal audits, and external audits to be performed by the same company, namely, Arthur Andersen (Brooks, 2007). 5. Ken Lay was chairperson of the board. He reassumed the position of CEO after Skilling resigned. As CEO he oversaw all of Enron’s activities. Lay and Whaley directed Causey to sell the Raptor SPEs. The sale price of was privately negotiated between Fastor, on behalf of Enron, and Kopper on behalf of LJM2. Lay did not interfere when Arthur Andersen directed Enron to record the buyout excess money as income. He knowingly allowed fraudulent activities and false information to be included in the financial reports. This was unethical. The Powers Report identifies seven questionable accounting issues concerning the sale of the Raptors (Brooks, 2007). 6. The board of directors did not insist that full disclosure of Enron’s earning be made available to the public and the shareholders. They allowed inaccurate reports to be published. Since they did not challenge management involvement in fraudulent activities, this meant the shareholders interests were not protected (Brooks, 2007). 9. Conflict of interest concerning SPE activities occurred because Enron employees were active in managing certain SPEs. Losses were not reported in end of year reports to offset other nonprofitable dealings. Arthur Andersen did not report all of the earnings and helped Enron cover up losses. When Andrew Fastow, wanted to manage the SPE, Chewco, he was advised by Jeffrey Skilling who was on the board of directors, that he should not manage Chewco because it would be a conflict of interest. Instead, Fastow appointed Michael Kopper who worked for him at Enron, to manage Chewco (Brooks, 2007). WORLDCOM 1. To inflate their profit in the current period, WorldCom created overstatements of cash flow and income by inaccurately reporting line costs. Line costs were a major expense to WorldCom. They were payments WorldCom made to third party telecommunicator network providers for the right to access their networks. These costs should have been shown as an expense rather than appearing on the income statement (Brooks, 2007). 2. WorldCom’s board of directors could have prevented the manipulation of revenue that management used if they had not been intimidated by Bernie Ebbers. They allowed themselves to be intimidated by Bernie Ebbers when he did not want their questions answered or give them more definitive explanations. Eventually, they demanded Bernie Ebber’s resignation and he resigned. The board of directors scheduled periodic meetings with WorldCom. The directors should have been more involved and familiar with WorldCom’s activities and efforts to manipulate expenses and decreased income (Brooks, 2007). 4. Bernie Ebbers was the CEO of WorldCom, the CFO was Scott Sullivan and David Myers was the Controller. Prior to working for WorldCom they had worked for Arthur Andersen. Arthur Andersen was the auditor for WorldCom. That is why the accountants did not say or do anything to prevent Ebbers’ manipulation of WorldCom’s financial reports (Brooks, 2007). . Ebbers received $408. 2 million dollars as a loan to buy WorldCom stock or for margin calls as the stock price fell. Instead of using the money for the purpose he received it, he used it to buy a cattle ranch in Canada, build a new home, pay for personal expenses of a family member, and provide loans to family and friends (Brooks, 2007). Reference: Brooks, L. J. (2007). Business professional eth ics for directors, executives, accountants (4th ed. ). Retrieved from The University of Phoenix eBook Collection database.

Self-Concept essays

Self-Concept essays One of the most important concepts in psychology today is the concept of "self." The definition for self-concept is the idea or mental image you have of yourself and your strengths, weaknesses, status, etc. If you have ever been told to "just be yourself," that is referring to your very own self-concept. In general there are three different stages of "self." These three are self-image, ideal self, and the social self. Self-image is the idea, conception, or mental image you have of yourself. If you have a poor self-image, then most likely your self esteem will be poor. This is highly affected by the norms of society. Most people don't really want to stick out, so they try to blend in with the crowd by observation of others. Ideal self is our image of ourselves, as we blieve we should be. It can really be related to Freud's concept of super ego. It is everything you want to be and want to accomplish. Some people's vision of their ideal self is set to high and they fail. They then should decide to double their efforts or they should modify it to be more practical. The social self is the way we see ourselves in social situations. Different roles and situations have different affects on the way we act. If we are placed in a new experience some people may be nervous, while others may feel excited. Our sense of social self is changed over time by various factors such as upbringing, relationships, culture, etc. ...

5 Steps to Turning Your Professional Goals Into Realities

5 Steps to Turning Your Professional Goals Into Realities When in pursuit of major goals, it can be very easy to get bogged down in set-backs, failed attempts, and obstacles. Having a big goal as your only end game can be extremely daunting, and can often lead to giving up. Here are 5Â  strategies for rethinking how we outline our professional goals to achieve success more quickly–without quite so much anxiety.1. Make a perspective shiftWhen Thomas Edison said he came up with 10,000 ways how not to invent the light bulb, he didn’t classify himself as a failure times 10,000. He didn’t even view these 10,000 attempts as failures; they were merely ways of ruling out the wrong strategies. The moral here is to turn your failures into stepping stones toward your success. Reframe your minor stumbling blocks into paths forward, and keep your eye on the prize.2. Sweat the small stuffAnd by sweat we mean celebrate. In going after the big goals, it’s important to keep in mind that a certain amount of patience is required. These things don’t happen overnight. Rather than slog for years to get that big brass ring, why not take a little time out to celebrate the smaller victories along the way? The added boost can build up valuable momentum and can actually help you reach your end goals in better time.3. Experience and show gratitudeThe same goes for being grateful and appreciative of what we have achieved so far. It isn’t all or nothing. It’s important to stay humble and also to realize how much more we may have achieved or realized in our careers than others who never get the chance. It’s not all about the big goal. It’s important to appreciate the milestones along the way and show a little gratitude.4. Set yourself up for successIt’s often the small, regular habits and routines that train our brains and work ethics to keep striving for success and moving forward. Make sure you’re building these habits into your workdays and goals lists. Good habits are just as hard to break!5. Be in the presentIt’s important to keep your eye on the future in setting your goals. But it’s also crucial not to lose track of the present moment. Don’t take anything for granted. Don’t disregard any project because it seems insignificant compared to your ideal finale. Realize that it’s the combination of your efforts over the years that will make your success achievable.Remember: Don’t put too much pressure on yourself. Break your larger goals down into smaller, more manageable ones- and don’t forget to celebrate when you achieve them. Reward yourself; it will keep you going! Track your progress along the way towards your ultimate end goal. But do remember to keep things in the proper perspective. If you do all this, success will be within your reach, and the journey towards it will be much more enjoyable.

Supreme Court Case Research Paper Example | Topics and Well Written Essays - 2000 words

Supreme Court Case - Research Paper Example The administrative action taken in this case, which consisted of five steps, is described, after which a stand is made that the court’s action had no effect on any perceived arbitrariness in the administrative agency’s decision. This writer’s opinion was rendered on the appropriateness of the court’s decision, and foreseen future implications on administrative actions are briefly described. On the case of Goldberg v Kelly 1. Offer a brief summary/historical overview of the circumstances in the case, the stakeholders, and the outcome sought by the plaintiff. In this case, the appellants were New York state officials and the Commissioner of Social Services, New York City. The appellees are New York City residents who were receiving financial aid under federally supported Aid to Families with Dependent Children program, and the general Home Relief program of New York State (397 U.S. 256). Plaintiff-appellees allege that their benefits either have been or were about to be terminated by officials without prior notice and hearing. They claim in effect, denial of their constitutional right to be afforded the due process of law, for which they sought the restoration of their welfare benefits pending results of evidentiary hearing where they could present their case (397 U.S. 256-257). Upon conclusion of the administrative procedure and remedies during which time plaintiffs’ welfare benefits were terminated, action was brought by the aggrieved party in the District Court for the Southern District of New York. Defendants argued that pursuant to regulation, a pre-termination review was conducted at the end of which it was decided that termination of benefits was warranted. At this juncture, the benefits were halted, although plaintiffs were afforded the option of requesting for a post-termination â€Å"fair hearing† during which they may appear personally before the decision-maker, adduce their evidence and confront and cross-exam ine the witnesses against them. The rationale behind the discontinuance of welfare benefits after the administrative review and summary adjudication prior to the â€Å"fair hearing† was purportedly to protect the interests of the New York taxpayer, in case the hearing finds the discontinuance to be meritorious (397 U.S. 265). The district court ruled in favor of plaintiffs, that in light of the constitutional mandate, a pre-termination evidentiary hearing is required in order to satisfy the due process requisite under the law (397 U.S. 256-257). The District Court rejected the argument by welfare officials that their conduct of a post-termination â€Å"fair hearing† as well as an informal pre-termination review had adequately complied with the law. The decision of the District Court was withheld on appeal. 2. Explain how the case qualified for judicial review in regards to the ripeness, standing, the exhaustion of administrative remedies, and primary jurisdiction as th ey apply. The doctrine of ripeness is concerned with whether at the time a judicial action is brought, the facts have sufficiently developed such that the injury has occurred or is likely to occur, instead of being remote or contingent. A claim is ripe if the injury upon

Criminal Justice Assignment Example | Topics and Well Written Essays - 500 words - 4

Criminal Justice - Assignment Example This specific crime prevention strategy consists of dissuading potential criminal offenders, with regard to specific targets. The basis of this strategy is that denial of access to a target prevents crime. Examples of this tactic are security guards and home security systems. A would be offender, on encountering these systems, would hopefully perceive that the risk of apprehension would far outweigh any potential benefit. However, this strategy could result in a displacement of crime (Siegel & Welsh 79). These measures endeavor to familiarize delinquents with the dire consequences that await criminal behavior. The rational criminal will be significantly deterred by the fear of punishment, and the realization that criminal activity could prove to be a costly affair. These strategies entail, aggressive policing, and compulsory sentencing. The difficulties envisaged by this group of strategies are that the offender may not fear punishment and the fact that the risk of being apprehended and punished is not very great (Siegel & Welsh 79). This strategy involves the adoption of draconian measures. For instance, an offender will be punished with great severity; and this will be of such harshness that these criminals would not recidivate. This entails incarceration in detention centers or maximum security prisons. This strategy was on occasion, seen to increase rather than decrease future delinquency (Siegel & Welsh 79). Another strategy to reduce crime, especially among the criminals who invariably recidivate, is to ensure that they do not obtain an opportunity to engage in crime. It can be achieved by imposing prison sentences that run for very long periods; and by incarcerating a much larger number of criminals. The difficulty involved with this strategy is that even non – dangerous offenders will be imprisoned for very long periods;

Short Story - Suicidal Tendencies Essay Example for Free

Short Story Suicidal Tendencies Essay Jamie stepped into the betting office and instantly a warm blast of hot air hit him and the stink of unwashed bodies and cheap deodorant overpowered his nose so that was all he could smell. He made his way through the smoky haze of cigarette smoke towards the betting counter carefully moving round the leather sofas and chairs and trying not to step in any chewing gum or a half eaten chocolate bar. The guy at the desk looked up at him through the glass and asked, Can I help you sir? Id like to place a bet please he stated. Name please the man at the counter asked and as Jamie replied he tapped it into his database Were sorry but were afraid weve found a problem he whispered quietly What kind of problem? Jamie asked nervously Perhaps youd like to come round he said, opening the door to his left as he spoke and ushered Jamie into the managers office. As the door closed behind him, Jamie took in his surroundings; he was in a large office with a 32-inch plasma screen at one end, a comfortable looking sofa on the wall and a desk with a new computer on it. A man was sitting behind the desk. A middle aged, harassed looking man. He started to speak softly and indicated to Jamie to take a seat on the sofa. Were sorry but based on your credit report, we cant allow you to make any more bets as youre almost in debt But.. please!! Come on youve got to let me get Jamie said, his voice gradually getting louder. Sorry, I wish there was something we could do.. but we cant, sorry I HATE YOU, I WISH YOU WERE DEAD!!! Jamie screamed at the manager, he jumped up and knocked a picture of the wall with his hand then stormed out of the office, knocking over chairs and pushing a 60 year old man over. He felt betrayed and wished his life would end, that was when he decided to commit suicide because he hated life. The manager came out of the betting shop and said to him If you can find i 10 we can allow you bet again as your credit limit will be raised Jamie calmed down then and went of for a walk. Throughout the rest of the day he tried everywhere to get i 10 so he could be allowed to bet again, as it was his passion, he was an addict. Towards the end of the day, Jamie got increasingly frustrated about not being able to find i 10. Eventually he was so angry that he wanted to commit suicide so he went up to the top of a 10 storey car park and as he stood, toes pointing over the edge, poised to jump, he started to come round and decided to back out as he decided he could find the money by other means but then he remembered, the embarrassment he felt in the office and jumped.jumped of the edge. As he hit the ground with a sickening crunch and broke both his legs, blood started to pour out his shirt he saw, next to him, a i 10 note. Show preview only The above preview is unformatted text This student written piece of work is one of many that can be found in our GCSE Miscellaneous section.

Julius Caesar, Death of a Salesman, and Oedipus Rex :: comparison compare contrast essays

Julius Caesar, Death of a Salesman, and Oedipus Rex Meet the Criteria of a Tragedy      Ã‚  Ã‚   To be considered a classic tragedy, a story should follow the principles presented by Aristotle in his work, Poetics. A tragedy, in Aristotle's view, concerns the destruction of a person of high social status and strong character. The tragic fall of the individual is brought about by a tragic flaw.   Arthur Miller expanded upon the classical definition of a tragedy to include not only those of high social status but also the common man.   Using the criteria established by Aristotle and Miller, the plays Julius Caesar, Death of a Salesman, and Oedipus Rex may be considered as tragedies.      Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   Although the title of the play, Julius Caesar, focuses on Caesar, the play itself is really based on Brutus. "Brutus had rather be a villager than to repute himself a son of Rome."(Shakespeare 172).   This was said by Brutus after Cassius told him how Caesar had become a towering figure over Rome and how Caesar controls Rome. Notice the good in Brutus, and the extremes he will go to in order to protect democracy in Rome even if it means killing the one he loves, Caesar.   Brutus possesses one of the most tragic flaws.   He is too nice of a person and therefore he gets taken advantage of.   He lets Cassius persuade him into killing Caesar for the good of Rome.   Because he does for others more than himself he makes a fatal mistake, he lets Antony live. Brutus says to the conspirators, "For Antony is but a limb of Caesar"(Shakespeare 165) meaning that if Caesar is killed Antony will die off too. Brutus clearly does not regard Anton y as being a threat, but little does Brutus know that Antony will stir up the town to seek revenge after the assassination of Caesar. This mistake will cost him his own life.   When he dies he becomes a prime example of tragedy because not only did he bring about his own death he dies by his own hand.   Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   In Death of a Salesman, Willy Lowman's tragic flaw is that he is a dreamer who is unable to face the realities of a modern day society.   Willy builds his whole life around the philosophy that if a person is well liked and good looking then he will be successful.   Willy says to Biff, "I thank Almighty God that you are both are built like Adonises.