Enron and WorldCom Case Study This report is based on the demise of Enron Corporation and WorldCom. Both the firms are demised due to the ethical lapses. These ethical lapses come into existence when managements of the firm‚ uses unethical practices to accomplish the goals of the firm. Maintaining financial and accounting standards in the business practices are necessary. The profession of accounting has become a mockery due to the accounting scandals that took place all over the world in the
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Review “What Makes an Effective Executive?” by Peter F. Drucker What is this article about as a whole? There is no science on how to improve effectiveness; effectiveness is a disciple and therefore can be learned by anyone. Drunker concludes that you don’t have to be a leader or possess specific personalities‚ strengths‚ values or beliefs to be an effective executive. Utilizing the following eight simple practices allows executives to be effective: Asking‚ “What needs to be
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When I first started cooking on my own‚ I found out that no ingredient lasts forever. Specific Example: One afternoon I was making a pound cake because my cousin Ashley was about to have her second baby at Trinity Hospital. I measured all my ingredients perfectly and put the cake in the oven for an hour and a half. I didn’t check on it while it was baking because I knew I had measured out everything right. When it was done‚ I pulled the cake out and was surprised to see that the middle
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Question 1 At the time Cynthia Cooper discovered the accounting fraud‚ WorldCom did not have a whistle-blower hotline process in place. Instead‚ Cynthia took on significant risks when she stepped over Scott Sullivan’s head and notified the audit committee chairman of her findings. Discuss the key criteria for the operation of an effective corporate whistle-blower hotline. Be sure to highlight potential pitfalls that should be avoided and reference professional codes‚ legislation and academic
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FAR600 CASE STUDY WORLDCOM QUESTION 1 a) Discuss the earnings management technique employed by the management of World Com. WorldCom admitted that the company had classified over $3.8 billion in payments for line costs as capital expenditures rather than current expenses. Line costs are what WorldCom pays other companies for using their communications networks; they consist principally of access fees and transport charges for messages for WorldCom customers. Reportedly‚ $3
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responsibility in maintaining standards‚ said Roberts‚ the faculty co-chair for the Board of Judicial Affairs‚ in an interview after the panel.) Instead‚ panelists linked cheating to the social pressure put on students to prize high grades over education and other values‚ including creativity and imagination. Pressure by parents and schools to achieve top scores has created stress levels among students—beginning as early as elementary school—that are so high that some educators regard it as a health epidemic
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Wk2 Assignment: The Enron and WorldCom Scandals Student Name ACC/260 Date Instructors Name[Page Break] 1. Which segment of its operations got Enron into difficulties? The guaranteed loans that were intended to bridge the financing for investments from outside investors that could not be found would be the segment of operations that caused Enron difficulties. 2. Did Enron’s directors understand how profits were being made in this segment
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Case Study The Rise and Fall of WorldcomThis case study is about Bernard Ebbers CEO of Worldcom‚ Inc. and Scott Sullivan CFO of Worldcom‚ Inc. once they were boosted the company growth and they got awards. Later on they made frauds by using their influential tactics on employees and company’s board. Those are Assertiveness: it involves applying legitimate and coercive power to influence others by threatening or giving punishment. This tactic was used by sullivans office where they berated and intimidated
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WorldCom was one of the leading telecommunication companies prior to its application for bankruptcy protection on July 21st‚ 2002. The firm’s decision to file for bankruptcy was a shocker move considering the amount of revenues and asset base the company had. It is believed that the firm was highly involved in fraudulent bookkeeping between the year 1999 and 2000 where they had managed to overstate its taxable income by at least $7 billion. It was also revealed that the company had committed itself
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earnings and modify the balance sheet to portray a favorable depiction of its performance. By misrepresenting earnings reports while continuing to enjoy the revenue provided by the investors not privy to the true financial condition of Enron‚ the executives of Enron embezzled funds funneling in from investments while reporting fraudulent earnings to those investors Shareholders lost nearly $11 billion when Enron’s stock price‚ which hit a high of US$90 per share in mid-2000‚ plummeted to less than
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