capitalization of operating expenses • management promoted culture fixed on the numbers • board of directors’ failure to scrutinize billion-dollar acquisitions • excessive loans to executives in order protect stock prices Financial Overview of WorldCom (in Billions) Financial Highlights 1994 1999 2001 2004 Revenues $2.2 $37.1 $35.2 $20.7 Total Assets $3.4 $91.1 $103.9 $17.1 Employees $7.5 $97.6 $87.8 $40.4 Market Cap. $3.3 $150.5 $42.8 $6.4 Debt $0.8 $13.1 $30.0 $5.9 Total Capitalization
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Copyright Financial Times Information Limited Jul 9‚ 2002 Ron Beaumont‚ chief operating officer of WorldCom‚ is one of several senior executives who should have been aware of discrepancies in the telecommunications company’s books before the near-$4bn fraud was revealed last month‚ according to people close to the company. The fraud that was allegedly engineered by Scott Sullivan‚ the chief financial officer who was fired the day the scandal was announced‚ led to a massive overstatement of WorldCom’s
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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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Industrial Revolution: Catalyst for the World In the ocean of modern history‚ there is a significant period between 1750 and 1914: The Industrial Revolution. During this period‚ the society and economic conditions had been influenced a lot by the major changes in agriculture‚ handicraft industry‚ manufacturing‚ transportation and technology. It was also a term that from agricultural and commercial society to modern industrial society. There were two revolutions during the middle of 18th century
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faster and wide reaching. From inventions such as the six-hundred-year-old printing press to the Facebook and Twitter of today‚ media-based technology has never wavered in its role of expediting communication and opening doors. Social media is the catalyst that society needs in order to move forward. History is riddled with almost constant rebellion and change. Humans are simply not content with standing still‚ but they alone are incapable of achieving change at the rate and the scale at which is
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Conflict in Ethical Decision Making at WorldCom Kerry Seeley Business Ethics MT4200 National American University September 25‚ 2007 Craig Chaplin Abstract This paper explains how WorldCom began and where it’s at now. It didn’t take long for WorldCom to become the second largest long distance phone company. WorldCom provided a legal framework for people working in communication projects on an individual basis‚ mainly in Central America‚ but they also developed projects together with partners
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me-have grace and favor in them.” (Shakespeare‚ 2014‚ 4.3.20-22). However‚ the question remains would he have changed his mind‚ if she had separated herself from him for a while? Secondly‚ the reference to her lie about the handkerchief being a catalyst of Desdemona undoing herself is interesting (B. Bunch‚ personal communication‚ August 23‚ 2017). Moreover‚ this ties in with
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The Mexican-American War served as catalyst that channeled the divisions between the North and South and the division within the political parties. The war was fought over American expansion near Mexican territory‚ which created major tensions that resulted in full blown war in 1846. The war was very controversial because it raised sectional tensions between the different regions within the United States. Many in the North were opposed to the war because they believed it was being fought to expand
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WorldCom: Organizational Culture and Unethical Safeguards Organizational culture is one of four influences whether an ethical or unethical behavior will be made. WorldCom’s demise‚ deliberately overstating their income by $7 billion between 1999 and 2002; and their once valued stock of $180 million becoming nearly worthless‚ can attribute a significant amount of their failure on their “dis”organizational culture. Corporations worldwide who do not think this type of fraud can happen at the hands
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Vladimir Lenin: A Catalyst for Revolution In the late 19th and early 20th centuries‚ revolutionary Vladimir Lenin was the driving force behind Russian Marxism‚ reformation and organization of the working class‚ and the political catalyst behind the Revolution of 1905. During this time period‚ the new Russian working class had left the countryside for urban factories. Workers revolted against Tsarist oppression and participated in illegal strikes. Lenin organized workers under the Social Democratic
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