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ENRON PAPER - ENRON CORPORATION 1 ENRON CORPORATION Khadija...

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ENRON CORPORATION 1 ENRON CORPORATION Khadija Wooten Marlene Armstrong Business Law January 30, 2011
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ENRON CORPORATION 2 Describe how Enron could have been structured differently to avoid such activities. Enron should not have changed the original structure of the organization. Enron should have stuck with the company’s straightforward and accurate accounting methods where the company listed actual costs of supplying the gas and actual revenues received from selling it, instead of adopting the mark-to- market accounting method, which is where the issues began. Enron should have implemented a risk management strategist team that would implement transferring risk to another party, avoiding risks, reducing negative effects of risks, and accepting some or all consequences of risk. If Enron had stuck with their original structure they would still be in business today. Discuss whether Enron’s officers acted within the scope of their authority.
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