Case study of enron

Company Background
Enron is the story of the largest bankruptcy in the history of the United States.

Through a variety of accounting tricks relating to partnerships, the company was able to inflate its profit and lower its debt. Enron executives earned millions through these partnerships and by selling stock before its demise while employees lost pension plans and retirement funds and stockholders lost value.
In 1985, the merger of Houston Natural Gas and InterNorth of Omaha, Nebraska formed Enron Corp. Enron began as a natural gas pipeline company but soon evolved into marketing electricity and natural gas, delivering energy and other physical commodities and providing financial and risk management services to customers worldwide. Eventually, the company became the largest natural gas merchant in North America and the United Kingdom.
Enron’s divisions included transportation and distribution wholesale services, retail energy services, broadband services and...