What Ethical Lapses Was Arthur Andersen Guilty of in Its

question 30

Essay

What ethical lapses was Arthur Andersen guilty of in its involvement in the Enron scandal? Explain.

---

Definitions:

Shares Outstanding

The total number of shares of a corporation that have been authorized, issued, and purchased by investors and are held by them.

Debt-Equity Ratio

A metric indicating the balance between shareholders' equity and debt in financing a company's assets.

Capital Spending

Expenditures by a business for acquiring or upgrading physical assets such as property, industrial buildings, or equipment.

Earnings Estimate

A projection or forecast of a company's future earnings per share, often provided by analysts.