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Enron Corporation

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Running head: ENRON CORPORATION

Enron Corporation
(former NYSE ticker symbol ENE)

Rosetta Foster
Strayer University
Business Law I – LEG 100
Dr. Dorothy A. Sliben
October 25, 2010

Enron Corporation (former NYSE ticker symbol ENE)
The ensuing scandal involving the Enron Corporation, Arthur Andersen, the Bush Administration, the ninety-six banks, et al., clearly shows the abuse of power, when corporations, etc. ultimately thinks and/or feel that it is above the law. The effects are still being felt even after the bankruptcy proceedings, collapse/fall and trials of one of the biggest and major corporate scandals in American history and time. 1. Describe how Enron could have been structured differently to avoid such activities.

Enron having been obviously formulated as a business corporation (a legal entity that is separate and distinct from its owners), a privilege provided by the state legislature to corporations by virtue of its Articles of Incorporation, corporate by-laws and state and/or federal charter, under its guise and appearance as an artificial company. As stated by Shaw, W. (2010), “Corporations are legal entities, with legal rights and responsibilities similar but not identical to those enjoyed by individuals. Business corporations are; limited liability companies―that is their owners or stock-holders are liable for corporate debts only up to the extent of their investments.” (Enron failed to implement and enforce the structural guidelines associated with a corporation, Board of Directors in its undertakings and daily managerial operations. It further failed to adhere to comply with federal regulations with regard to the Securities and Exchange Commission. It could have been formed and structured as a limited liability company (LLC) or a general corporation or C corporation (whereby, ownership offers limited liability to all its

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