Identify an event or series of events occurring in the financial market relevant to the area of ​​financial management, financial institutions and markets, or investments that raise significant ethical issues. Analyze events, public policy responses and their impact on financial markets and the economy in general. Let's say you're the CEO of a well-respected, multimillion-dollar energy company. You are at the forefront of innovation and are recognized globally for your pioneering efforts in the energy sector. However, due to a series of poor financial decisions, your business is on the verge of bankruptcy. You realize that to protect your own interests and investments, desperate measures must be taken. Exactly how much are you willing to sacrifice? Are you ready to risk everything? Imagine your company is Enron. Imagine your name is Ken Lay. Many remember and know Enron not because of its reputation, but because this company filed one of the largest bankruptcies ever to occur in American history. Enron began its reign as a powerful company when Congress passed a law that deregulated the sale of natural gas and electricity, which allowed Enron to excel among companies in this field. This drove Enron's stock price up to $90 per share and made it one of the best companies for shareholders to invest their money in. Enron then decided to create offshore accounts, commonly known as special purpose entities, which would prevent losses the company would incur and also deter taxes since international territories have different laws, and show the profits the company was making. that these offshore companies were solemnly created......middle of paper......s to finance its operations. The financial manager must decide how much the company should borrow as well as the least costly sources of funds for the company. How and where to raise the money are important decisions that the manager must make correctly so that no financial consequences occur. Businesses borrow money from a wide variety of lenders and in different ways, so they are always aware of their options on this matter. For a financial manager to be successful, these three areas of financial management must be executed correctly. Working capital relates to a company's current assets; capital budgeting is the process of planning and managing a company's long-term investments; Capital structure is the mix of debt and equity maintained by a company. These three areas involve different things as explained, but together they constitute financial management..