Today’s tech titans are using similar financial tactics to Enron, but that doesn’t mean they’re careening toward disaster, one AI guru says.
Enron, an energy supplier and trading powerhouse, collapsed into bankruptcy in 2001 after it was revealed to be a fraud. But it was also a story of three things, Ram Bala, an associate professor of AI and analytics at Santa Clara University’s Leavey School of Business, told Business Insider in an email this week.
The corporate giant shifted debt off its balance sheet using special vehicles, employed mark-to-market accounting to book future sales projections as immediate revenue, and used circular…
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