Critical analysis

Running Head : Critical Analysis

Critical Analysis

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Introduction

Enron Corporation is an American energy based company found by Kenneth Lay in Omaha , Nebraska on 1985 . It is an energy industry with revenue of 111 Billion in 2000 with an approximately 22 ,000 employees on the same year . In 2008 , it increased to 40 ,000 employees . This company was known to be one of the most significant and top selling companies in the United States but as time goes by , their revenues and financial crisis exists

that brought the company into terrible situation and led to closure

Body

Based on the company 's pro , Enron went to its development and increase of sale during the beginning of the company but went down after several years . The most significant factor that emerged based on the report is the financial circumstances . According to the business system the cash flow system that can be seen in slide 21 should integrate the operating , investing , and financing aspects , which Enron could not obtain during the process of their production . The problem that occurs in Enron is the process of acquiring the proper revenue and balance sheets of the company that runs through different level and circumstances as what slide 12 is trying to convey . Therefore , the accounting staff made a remarkable error in undergoing the process of production of the company that led them to inappropriate results of sales

Conclusion

As a conclusion to this , Enron Corporation is one of the examples of simple errors that run through the different situation and led to fatal errors at the end . However , the inappropriateness appears within the sheets of the accounting staff for they hold all the revenues and profit shares that the whole company obtained

Reference

Enron (2008 , April 2 . In Wikipedia , The Free Encyclopedia . Retrieved 14 :14 , April 5 , 2008 , from HYPERLINK "http /en .wikipedia .org /w /index .php ?title Enron oldid 9 " \o "http /en .wikipedia .org /w /index .php ?title Enron oldid 9 http /en .wikipedia .org /w /index .php ?title Enron oldid 9

Business Systems BSA /310

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Critical Analysis

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