Worldcom was the second largest long distance phone company in the United States. The former CEO Bernard Ebbers was sentenced to twenty five years in prison due to increasing revenue the wrong way to increase earnings. This company had the largest bankruptcy filing in the United States. Today‚ the Worldcom accounting scandal is known as one of the worst corporate white collar crimes in history. What were some psychological factors that led to this crime? Financial Pressures from competitors
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Conflict is a catalyst for change Everything changes daily for a number of different reasons and one of them can be conflict. Conflict usually only brings us tragedy and sadness due to its process which changes a lot of different things. The result of conflict which is usually death is one obvious change it brings to us that change the peaceful life into a chaos. During the process of conflict‚ other changes will also be made. During conflicts‚ it is possible that our positions get changed. When
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Accounting Fraud at WorldCom 1) What are the pressures that lead executives and managers to “cook the books?” After the rapid evolution of the telecommunication industry in the 1990s‚ WorldCom shifted its strategy to focus on building revenues and acquiring capacity sufficient to handle expected growth. Their biggest goal was to be the No. 1 stock on Wall Street rather than capturing the market share. As a result‚ their Expense-to-Revenue (E/R) Ratio was their measurement for their main objective
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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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in the competitive long-distance telephone industry. It was headquartered in Washington‚ D.C.[1] Founded in 1963‚ it grew to be the second-largest long-distance provider in the U.S. It was purchased by WorldCom in 1998 and became MCI WorldCom‚ with the name afterwards being shortened to WorldCom in 2000. WorldCom’s financial scandals and bankruptcy led that company to change its name in 2003 to MCI Inc.. The MCI name disappeared in January 2006 after the company was bought by Verizon. As of May
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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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How can managers promote innovation unwelcome surprises? Control in an Age oj by Robert Simons A fundamental problem facing managers in the 1990s is how to exercise adequate control in organizations that demand flexibility‚ innovation‚ and creativity. Competitive businesses with demanding and informed customers must rely on employee initiative to seek out opportunities and respond to customers’ needs. But pursuing some opportunities can expose businesses to excessive risk or invite behaviors
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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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What punishment‚ if any‚ do you believe David Myers should have been given for his role in the WorldCom fraud? A2. Mr. Myers was charged with securities fraud‚ conspiracy to commit securities fraud‚ and filing false statements. Based on these charges‚ I think Mr. Myers would be sentenced to 5-8 years prison terms. In addition‚ he would be imposed with a large amount of fine. Furthermore‚ the WorldCom would take a certain amount of bonus back for the period while he was being investigated. However
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Rape is a difficult subject to explain to others because it is traumatic experience that people not involved will be unable to deal with the situation. Laurie Anderson’s novel Speak focuses on this very issue. The protagonist‚ Melinda Sordino‚ must face the challenges of high school‚ family issues‚ and the inability to express herself. Mr. Freeman‚ David Petrakis‚ and sports are the things Melinda relies on to overcome the past that haunts her. Mr. Freeman is a factor that motivates Melinda Sordino
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