Please answer the questions below. The maximum page for the assignment is 2 pages (12 point, double-space). To answer the questions, you will need to take lectures for Chapter 10 and watch the full video.
Video: Enron: The Smartest Guys in the Room (2005)
1. The CEO of Enron was responsible for the Enron’s scandal. Discuss motivation(s) of the CEO’s engagement in earnings manipulations based on ‘Agency relationship‘
2. To prevent the Enron’s scandal again, firms need to improve their governance mechanism. Discuss two(2) ways to enhance the effectiveness of the governance mechanisms. Your answer should be related to the Enron’s scandal (For example, you need to discuss how your suggested governance mechanism prevents the Enron’s scandal).
