Week 2 Enron and Worldcom Scandals

Week 2 Enron and Worldcom Scandals - Week 2 Assignment...

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WK 2 Acc260 Enron and Worldcom Enron Segment 1. Which segment of its operations got Enron into difficulties? I think that when Kopper was appointed it set the stage for disaster for Enron. Kopper was an employee of Enron for Fastow. 3. Did Enron’s directors understand how profits were being made in this segment? Why or why not? I do not believe that the directors were aware of what was going on. It seemed as if Kopper was controlling the company and what was being invested. Kopper transferred his limited partnership to his partner William Dodson. They were partners which causes conflict of interest when investing. They were in control of the company Chewco. The board of directors were kept in the dark about what was going on. 5. Ken Lay was the chair of the board and the CEO for much of the time. How did this probably contribute to the lack of proper governance? Ken lay knew what was going on within the company. He was well aware of Fastow’s actions. They had control over the stock
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This note was uploaded on 07/18/2011 for the course ACC 260 taught by Professor Dr.smith during the Spring '10 term at University of Phoenix.

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Week 2 Enron and Worldcom Scandals - Week 2 Assignment...

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