Corporate Background Of Worldcom Company Essay - 1322 Words

Corporate Background WorldCom, now known as MCI, began humbly as an obscure long distance telephone company, LDDS Communications, in 1983, and rose to the second largest long-distance phone company in the United States and one of the largest companies handling worldwide Internet data traffic, with an aggressive corporate strategy of growth though acquisition (Moberg, and Romar. â€Å"WorldCom†¦Ã¢â‚¬ ) With its corporate headquarters located in Clinton, Mississippi, WorldCom consisted of an employee base of 85,000 workers at its peak and provided a broad range of communication services in over 200 countries on six continents, including voice and Internet communication services for millions of consumer customers, one of the most extensive communications networks in the world, and value-added services such as customized solutions for network design, configuration of customer premises equipment, proactive network monitoring, managed hosting as well as authentication, firewall and virus scanning services (WorldCom Form 10-K, 2002). Between 1991 and 1997, WorldCom spent almost $60 billion in the successful completion of 65 acquisitions, two of which, the MFS Communications acquisition and MCI Communications acquisition, brought both â€Å"a major supplier of Internet services† and â€Å"one of the largest providers of business and consumer telephone services†. Benefited by this prescient and successful business strategy, WorldCom’s stock rocketed to over $60 per share. These acquisitions providedShow MoreRelatedEssay on Worldcom1595 Words   |  7 PagesRestoring Trust in WorldCom 1. What are the three or four central objectives that Breeden hopes to achieve with the proposals in â€Å"Restoring Trust†? Why is reform needed? What are the benefits? What are your concerns regarding the reform? The WorldCom Corporate Monitor, Richard Breeden, believed that in order to correct the ills that faced the company, WorldCom needed to adopt a strong Corporate Governance structure. The central objectives of his proposal â€Å"Restoring Trust† included improvingRead MoreWorldcom Failure1198 Words   |  5 PagesWorldCom Failure in relation to its Organizational Behavior LDR/531 - Organizational Leadership October 7, 2010 WorldCom Failure in relation to its Organizational Behavior INTRODUCTION Year 2002 saw an unprecedented number of corporate scandals: Enron, Tyco, Global Crossing, etc. In many ways, WorldCom is just another case of failed corporate governance, accounting abuses, and outright greed. Many people may question if there is a secret to operating a successful business in modern times.Read MoreLong Distance Discount Services ( Ldds )1460 Words   |  6 Pages1. Introduction Worldcom Group, formally known as Long Distance Discount Services (LDDS) and the second largest long distance telecommunications provider in the U.S., was involved in one of the biggest accounting frauds in history. The scandal, when unearthed in 2002, revealed that Worldcom had overstated it’s earnings in the five quarters between 2001 and 2002 by more than 3.8 billion. This was a result of inappropriate accrual releases and classifying periodic line costs as capital expendituresRead MoreWorld Com1454 Words   |  6 Pages Table of Contents Mission Statement 3 Ethical Principles/Tenets 4 Day to Day Operations 5 Cynthia Cooper and the Culture 6 Conclusion 8 Works Cited 10 1)Provide a Mission Statement and brief background about WorldCom. Briefly explain how WorldCom did not honor their statement. WorldCom - our objective is to be the most profitable , single source provider of communications services to customers around the world. Unstated Mission - Increase shareholder value. WorldComs mission statementRead MoreThe Sarbanes Oxley Act Of 20021015 Words   |  5 Pagesof some major accounting frauds such as Enron and WorldCom. The main objective of this act is to recover the investors’ trust in the stock market, and to prevent and detect corporate accounting fraud. I will discuss the background of Sarbanes-Oxley Act, and why it became necessary in the first section of this paper. The second section will be the act’s regulations for the management, external auditors, and companies, mainly publicly-traded companies, and the cost and benefits of the act. The last sectionRead MoreEnron : The Financial Statement1461 Words   |  6 Pages whenever companies have outstanding energy-related or other derivative contracts (either assets or liabilities) on their balance sheets at the end of a particular quarter, they must adjust them to fair market value, booking unrealised gains or losses to the income statement of the period. A difficulty with application of these rules in accounting for long-term futures contracts in commodities such as gas is that there are often no quoted prices upon which to base valuations. Companies having theseRead MoreSarbanes Oxley Act Of 20021410 Words   |  6 Pagesof some major accounting frauds such as Enron and WorldCom. The main objective of this act is to recover the investors’ trust in the stock market, and to prevent and detect corporate accounting fraud. I will discuss the background of Sarbanes-Oxley Act, and why it became necessary in the first section of this paper. The second section will be the act’s regulations for the management, external auditors, and companies, mainly publicly-traded companies, and the cost and benefits of the act. The last sectionRead MoreAnalyzing The Fraudulent Acti vities Of Worldcom3290 Words   |  14 Pagesfailed company. In this paper an attempt is made to analyze the fraudulent activities reasons and fraud performance of WorldCom. Also analysis the accounting and audit environment in WorldCom. WorldCom was the second largest long distance telecommunications corporation in America. Although the corporate structure was consistent with â€Å"best governance practice† and some governance indicators were even higher than the industry average requirements, the WorldCom’s failure proves that their corporate governanceRead MoreThe Anatomy Of Corporate Fraud Essay845 Words   |  4 PagesArticle Critique #1 The first article researched was The Anatomy of Corporate Fraud: A comparative Analysis of High Profile American and European Corporate Scandals. The abstract discusses the analysis conducted on the three major American accounting scandals; Enron, WorldCom, and HealthSouth, and compares to the three major European accounting scandals; Parmalat, Royal Ahold, and Vivendi Universal. Bahram Soltani (2014), also discusses within the abstract the different areas reviewed regardingRead MoreCase Analysis Arthur Andersen: Questionable Accounting Practices1000 Words   |  4 PagesThus, it leaded to a negative influence on Andersens Corporate culture, which enabled Andersen to be more interested in its own revenue growth through ethical and legal misconducts, such as accounting irregularities and fraud. More seriously, it developed a number of lawsuits from1997 to 2005, which impelled the SEC to keep a close watch on, from its client such as Baptist Foundation of Arizona, Sunbeam, Waste Ma nagement, Enron, and Worldcom. Especially for the SEC to Enrons investigating, it would