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The Enron Scandal

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Submitted By lexmarie14
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Alexis Isbell
11/1/2012
Case Project

The Enron Scandal

Near the turn of the 21st century, a seemingly large Dallas-based gas company sent a shockwave around the world in what would become known as the Enron scandal. The Enron scandal would cause many people to not only lose their jobs and their ways of life, but it would also cause people to become weary of these incredibly large companies.

The Early Years (1985-early 1990’s)

Enron was the brainchild of Kenneth Lay, when he brought about the merger of Houston Natural Gas and Omaha-based InterNorth. Enron Corporation created the first nationwide gas pipeline network in America, and would continue to grow throughout the 1990’s. In the early 90’s, after the United States government deregulated natural gas, Enron started growing into an extremely large company, whom employed over 21,000 workers. Enron would continue to grow into the nation’s seventh largest company. Enron’s profits skyrocketed through the roof once they were able to freely sell and buy natural gas in the United States. Enron would continue to grow into one America’s most profitable companies in the late 1990’s, but the argument could be made that is what possibly led to their drastic, and frankly embarrassing downfall.
The Later Years (mid-late 1990’s – 2001)
As previously stated, Enron would become one the nation’s most profitable companies in the late 1990’s. “Enron’s reported annual revenues grew from under $10 billion in the early 1990s to $139 billion in 2001” (Jickling, pg.2, par.1). Enron’s accounting books showed that of a company who was able to bring in an astronomical amount of revenue while keeping costs at such a low level, that only allowed the company to increase its net profit. Enron became a company to be worshipped and was on their way to the top.
Enron decided to take their success internationally and made

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