One of the most successful natural gas merchants in North America, Enron Creditors Recovery Corporation was established by Kenneth Lay in 1985 from the merger of big natural gas pipeline firms InterNorth and Houston Natural Gas. The approval of legislation in the U.S. concerning the deregulation of natural gas sale is one of the events that affected the outstanding financial performance of the company in the 1990s. The development of the online business model known as EnronOnline also contributed to the popularity of the company in November 1999. However, stockholders were alarmed by the sudden decision of the firm to file for Chapter 11 bankruptcy protection in December 2001. History of the Company Why did Enron go bankrupt? There are several reasons for the bankruptcy of the firm. One...

Whether you’re an employee or employ workers, you need to know why companies downsize. This knowledge can make the difference between recovering or going bankrupt. To Reduce Costs The primary reason is to keep the costs down. Business enterprises usually have long term forecasts. These are used to make decisions in the present. If the forecast is that it will lose money, cutting jobs or shutting down factories may be the only option. Sometimes this takes place without the result of a long term study. An unexpected event like an economic crisis can happen. In this situation, the corporation may be forced to make mass layoffs. This is one reason why companies downsize. To be More Profitable In some cases a firm might decide to do it to make more money. It can happen that a company expands...

Because they are so prevalent, few people realize the importance of free news media. The truth is that they form a vital part of any democratic society. Reporting the Facts This is its most basic role. It’s only natural for any government to look or report on only the bright side of things. The news organizations on the other hand, can state the facts. This role is critical to understanding events not just in your country but the world at large. An example would be economic news. While a government may report glowing figures, journalists perform man on the street interviews and stories. This gives you the chance to look at the entire picture. The importance of free news media can also be seen when reporting from various parts of the world. In countries where military juntas rule, people...

Gas is one of the important commodities in the world because this is used in operating large equipment and vehicles. Unfortunately, gas companies have limited control over the prices of the commodity in the world market because there are various factors that affect the costs of the product. In present days, most consumers complain about the high prices of this commodity. To know why are gas prices so high, it is best to look at the different factors that have great impacts on the costs of this product. Improving Oil Demand Why are gas prices so high? One of the important factors that affect the costs of the commodity is the improving demand of consumers for oil. According to some economists, the developing economies of India and China have great effects on the increasing demand for oil....

A highly popular discount department store chain in the world, Kmart shocked the entire world when it filed for bankruptcy in 2002. The financial problem was very similar to that of Enron, as it almost put an end to one of the most notable retail store chains in history. A company marked with significant highs and lows, it is quite interesting to find out why Did Kmart filed bankruptcy. Reason Behind the Bankruptcy Why did Kmart filed bankruptcy? Then-President Mark Schwartz and former Chairman Chuck Conaway caused a financial disaster when they misled company officials and shareholders regarding a financial crisis. Instead of disclosing millions of income and revenues, the two were allegedly spending the money of the company on different kinds of luxuries. According to reports, they spent...