Definition of Enron:
Former energy corporation that is considered the staple example for corporate corruption and accounting fraud. In 2001 it was uncovered that the company had position itself as a leader in the industry by falsifying accounting records company wide. The company filed for bankruptcy after the revelation and as of 2007 has sold the majority of its remaining assets. A number of company executives were also forced to pay stiff fines for their involvement in the accounting scheme.
Enron shares traded as high as $90.56 before the fraud was discovered, but plummeted to around $0.25 in the sell-off after it was revealed. The former Wall Street darling quickly became a symbol of modern corporate crime. Enron was one of the first big-name accounting scandals, but it was soon followed by the uncovering of frauds at other companies such as WorldCom and Tyco International.
Enron was an energy-trading and utilities company based in Houston, Texas, that perpetrated one of the biggest accounting frauds in history. Enron's executives employed accounting practices that falsely inflated the company's revenues and, for a time, made it the seventh-largest corporation in the United States. Once the fraud came to light, the company quickly unraveled, and it filed for Chapter 11 bankruptcy on Dec. 2, 2001.
How to use Enron in a sentence?
- I would never work for Enron , or any huge corporation like that because I was a simple farm man and didnt want anything to with big business.
- As a result of Enron, Congress passed the Sarbanes-Oxley Act to hold corporate executives more accountable for their company's financial statements.
- Enron executives used fraudulent accounting practices to inflate the company's revenues and hide debt in its subsidiaries.
- You want to make sure that your corporation is legit and doing things the right way so you dont end up like enron .
- Enron was an example of a company who perfected the guise of off balance sheet accounting, they showed what not to do.
- The Securities and Exchange Commission, credit rating agencies, and investment banks were accused of negligence—and, in some cases, outright deception—that enabled the fraud.
Meaning of Enron & Enron Definition