Paper Management Planning Paper WorldCom or “MCI Inc.” (Presently) was a telecommunications company founded in 1983. The company began as Long Distance Discount Services, Inc. (LDDS) and was based out of the state of Mississippi. The company became publicly owned corporation by 1989 as a direct result of the merger between themselves and “Advantage Companies Inc”. It was at this time the company took on a new name (LDDS WorldCom). The primary function of WorldCom at the time was to provide long distance
Words: 879 - Pages: 4
DAVID KIRON Accounting Fraud at WorldCom WorldCom could not have failed as a result of the actions of a limited number of individuals. Rather, there was a broad breakdown of the system of internal controls, corporate governance and individual responsibility, all of which worked together to create a culture in which few persons took responsibility until it was too late. — Richard Thornburgh, former U.S. attorney general1 On July 21, 2002, WorldCom Group, a telecommunications company
Words: 9061 - Pages: 37
Running head: Review of Accounting Ethics 1 Review of Accounting Ethics Cynthia Harley Dr. Julie Hamm Acc 557 5/1/2014 Review of Accounting Ethics The WorldCom Scandal Vikalpa: The Journal For Decision Makers provides us with the following excerpt from WorldCom’s 2002 press release: CLINTON, Miss., June 25, 2002 –- WorldCom Inc. (Nasdaq: WCOM, MCIT) today announced that it intends to restate its financial statements for 2001 and the first quarter of 2002. As a result of an internal audit
Words: 1671 - Pages: 7
Ebbers Behind Bars In 2005, Bernard Ebbers, former CEO of WorldCom, was sentenced to twenty five years in jail in a very controversial ruling. There are many reasons in the World Com case that made sending Bernard Ebbers to jail the right thing to do. As a CEO of WorldCom, Mr. Ebbers had many obligations in order to run the company successfully; some of those obligations he fell far short on. The major one was not realizing when he was in too deep; instead of managing each of the new assets
Words: 1577 - Pages: 7
Insight on WorldCom Scandal Table of Contents ABSTRACT 2 The importance of accounting conceptual framework 3 Historical Background 5 The Scandal – what happened 6 PENALTIES 7 How the scandal relates to accounting theory 8 RELATION TO POSITIVE ACCOUNTING THEORY 9 Conservatism Principle 9 Lack of Reliability 10 Lack of Relevance 11 Financial Misstatement 11 Conclusion 12 Bibliography 14 Insight on WorldCom Scandal ABSTRACT The scope of this paper deals with the
Words: 3002 - Pages: 13
wealthy from the rising price of his holdings in WorldCom common stock. However, in the year 2000, the telecommunications industry entered a downturn and WorldCom’s aggressive growth strategy suffered a serious setback when it was forced by the US Justice Department to abandon its proposed merger with Sprint in mid 2000. By that time, WorldCom’s stock was declining and Ebbers came under increasing pressure from banks to cover margin calls on his WorldCom stock that was used to finance his other businesses
Words: 1048 - Pages: 5
the failure of the organization known as WorldCom. It will determine the reason for the fall of the company failure comparing and contrasting what could have been done by management and leadership. The organizational theories that could have predicted the failure of management and the impact of the company’s structure EBF 3 The company knows as WorldCom was one the leading telecommunication giants of its day. WorldCom achieved its position as a significant player
Words: 626 - Pages: 3
Donald Schroerlucke is a former employee of WorldCom, Inc. In 1989, Mr. Schroerlucke was employed as Vice President of Operations at Long Distance Discounts Services, Inc., the predecessor corporation to WorldCom. Pursuant to stock option agreements with Long Distance Discount Services, Inc., and then with WorldCom, Mr. Schroerlucke accumulated employee stock option grants between July 1991 and January 1998. Mr. Schroerlucke’s employment with WorldCom ended on January 4, 1999, at which time his
Words: 1447 - Pages: 6
WorldCom took the telecom industry by storm when it began a frenzy of acquisitions in the 1990s. The low margins that the industry was accustomed to weren't enough for Bernie Ebbers, CEO of WorldCom. From 1995 until 2000, WorldCom purchased over sixty other telecom firms. In 1997 it bought MCI for $37 billion. WorldCom moved into Internet and data communications, handling 50 percent of all United States Internet traffic and 50 percent of all e-mails worldwide. By 2001, WorldCom owned one-third of
Words: 1042 - Pages: 5
show a graph of an increasing share price of WorldCom and ask: "Any questions?"10 Going back as far as two years ago, employees were told to capitalize obvious expenses in order to meet aggressive targets. For example, one employee was told to capitalize plane tickets when visiting company sites.11 In March 2001, revenue numbers weren't at a satisfactory level, therefore Sullivan, in hopes to improve current profit margins, provided David Myers, Worldcom Controller, with "alternative financial numbers
Words: 482 - Pages: 2
