Understanding Worldcom Bankruptcy, Causes, Effects, and the Role of Staff and the Outcome of the Crisis - Dissertation Example

Comments (0) Cite this document
Summary
The object of this research paper is to come to understand how Worldcom Bankruptcy business and accounting fraud took place and how the government and other concerned parties missed on this for so long. The number of total assets that were nearly $107 Billion in Assets. …
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER95.9% of users find it useful
Understanding Worldcom Bankruptcy, Causes, Effects, and the Role of Staff and the Outcome of the Crisis
Read TextPreview

Extract of sample "Understanding Worldcom Bankruptcy, Causes, Effects, and the Role of Staff and the Outcome of the Crisis"

Download file to see previous pages The causes and results of the fines that were imposed by the SEC (Securities and Exchange Commission), a staggering $750,000,000. In addition to that, understand how could the company announce accounting irregularities amounting to $11,000,000,000 and also their relevant financial reporting that caused such irregularities.
To completely paint the picture of the bankruptcy, there is a need to cover practical and academic aspects of organizational structure, the staff (individuals, teams, and groups), and the culture that predominated WorldCom and made it possible for the business entity to commit such fraud and deceit.
In addition to that above, I want to share some light into the leadership of WorldCom and its role in the eventual demise of it. Was it all a matter of leadership, good or bad, or perhaps that are some underlying reasons that caused the bankruptcy.
There are a number of factors that need to be studied in relation to WorldCom. For instance, what is the role of the external auditors of WorldCom in bankruptcy and fraud? Were they a part of it or they simply ignored wrongdoings and kept things running as they were without intervention.
The above discussion has been done based on the secondary data available. However, the effort has been put to discuss the same in light of the related theories in academia. Adding to the above discussion, a detailed analysis would be carried out to show the effect of the crisis on its various stakeholders. In Human Resource Management, human beings are assumed as the most significant asset within an organization. The discussion has been provided to provide an insight as to how this crisis affected its most significant assets. In the end, a conclusion has been inferred from the entire analysis and discussion.  ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(Understanding Worldcom Bankruptcy, Causes, Effects, and the Role of Dissertation, n.d.)
Understanding Worldcom Bankruptcy, Causes, Effects, and the Role of Dissertation. Retrieved from https://studentshare.org/finance-accounting/1574885-worldcom-assignment-to-be-reviewd
(Understanding Worldcom Bankruptcy, Causes, Effects, and the Role of Dissertation)
Understanding Worldcom Bankruptcy, Causes, Effects, and the Role of Dissertation. https://studentshare.org/finance-accounting/1574885-worldcom-assignment-to-be-reviewd.
“Understanding Worldcom Bankruptcy, Causes, Effects, and the Role of Dissertation”, n.d. https://studentshare.org/finance-accounting/1574885-worldcom-assignment-to-be-reviewd.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Understanding Worldcom Bankruptcy, Causes, Effects, and the Role of Staff and the Outcome of the Crisis

Bankruptcy

... the debtor and creditor rights without discouraging either has evolved over a century of deliberations. After the Bankruptcy Act of 1841 which was repealed in 1843, the country was distraught with the occurrence of the American Civil War of 1861. The northern ‘union’ and the southern ‘confederate states of America’ fought a bloody combat for four years which left most of the Southern America and their infrastructure destroyed (McPherson). The financial distress caused by the Civil War fueled the demand for the formulation of another bankruptcy law. The next bankruptcy law was enacted in 1867 immediately after the end of the Civil War. The law was titled “Bankruptcy Act of 1867”. This law was longer lived than the previous laws... ...
9 Pages(2250 words)Research Paper

Bankruptcy

...environment (Tenk). If Quick ratio, Current ratio and Times Interest Earned ratio are negative then this is an indication that the company faces liquidity problems and the creditors are not satisfied with the company's financial performance and also the creditors will not issue more debt in future (Tenk). If the company's cash outflows are higher than the cash inflows then this is an alarming situation for the company. It gives also the indication that there is any mismanagement exists in the company's operating, investing and financing activities (Tenk). Fraud, misrepresentation and misappropriation of funds are also a prime factor that invites bankruptcy in the long run. MAIN EFFECTS AFTER DECLARATION...
4 Pages(1000 words)Essay

Bankruptcy of WorldCom

...by making the employees act one against other. The work that was to be actually done by the respective employees was carried out by employees in a different department who were actually loyal to the top management rather than company. When David Schneeman, the acting CFO of UUNET refused to book 9 line accruals as instructed by David Myers for his business unit, staff in the department of general accounting made the entry. Finally, it so happened that an amount of $3.3 billions were released in a span of only one year. The corporate environment of WorldCom was not so healthy. The finance department of the company was located at Jackson, Mississippi. The department had none of the senior lawyers...
6 Pages(1500 words)Case Study

WORLDCOM

...lost a total $66 million in pension fund value. The effect of the WorldCom’s bankruptcy filing caused huge losses in employees’ pension funds – from $351,000 in North Dakota to $1.2 billion in California.2 The sudden closure of WorldCom causes the demand shock for long distance telephone companies. In order that the supply meets the demand for phone calls services between the years 2002 - 2003, the prices of telephone plans have risen between $11 and $23 per month. This issue even added burden to the WorldCom’s stakeholders. The company is also socially responsible for not being open to its stakeholders regarding the...
5 Pages(1250 words)Essay

WorldCom

...WorldCom Introduction The case study about WorldCom an organization that started as company owned by nine people and grew to be almost a multinational company in a span of around two decades is not uncommon in the corporate world both in the United States and United Kingdom. Following an elaborate explanation of how the company grew from scratch until its collapse it is evident that the blame of the bankruptcy cannot be shouldered by the CEO (Bernie Ebbers who resigned in April 2002) and CFO (Scott Sullivan who was sacked in June 2002) only. Several others are also to blame including the government, board of directors, auditing committee and stock brokers just to mention a few....
2 Pages(500 words)Essay

Bankruptcy

... Chapter 7 bankruptcy also known as liquidation bankruptcy is the common bankruptcy chapter across the United States. It usually involves a trustee selling a debtor’s non-exempt assets and turning over the proceeds to the creditors. In this regard, the debtor is required to gather all their financial records properly before filing the petition. Chapter 7 bankruptcies can be filed by businesses which are troubled by debts or those which are unable to pay off their creditors. In the same way individuals who reside or own property in the country can file for chapter 7 bankruptcy. However, individuals who have had their bankruptcy cases dismissed in the last 180 days do not qualify for this type of bankruptcy. People essentially file... for...
1 Pages(250 words)Research Paper

Worldcom

...Worldcom Case Primary Stakeholders and their Interests Worldcom is a telecommunication company that is based in Mississipi, was founded by Mr. Ebbers who had a goal of turning it into a multinational company. It was based on buy wholesale phone networks from AT&T and sell retail. His strategy was to grow the firm through acquisition. In 1997, WorldCom completed the largest merger in history at the time with MCI. Mr. Ebbers wanted to be the head of the top company on Wallstreet and in the telecommunications industry, his objectives therefore focused on financial gains mostly. One major problem however, was Ebbers’ incapability to maintain the businesses he was acquiring. He managed his...
1 Pages(250 words)Article

Bankruptcy

...Bankruptcy Bankruptcy can be defined as a process with which a business can eliminate or repay part of or all debt, but under the safeguard of the federal bankruptcy court (Cross & Miller, 2011, p. 371). Accordingly the Bankruptcies are categorized into two: the Liquidation and the reorganization types. The two categories engross the five bankruptcy types: chapter7-Liquidation, chapter 13-individual debt adjustment, chapter 11-reorganisation, chapter 12-Family farmer, and chapter 9- municipality (Distenfield, 2005, p. 47). All five chapters are distinct as each defines each obligation of debtors and as determined by bankruptcy courts. Chapter 7 Bankruptcy is also known as straight bankruptcy in which an individual or a corporation... will...
2 Pages(500 words)Essay

Bankruptcy

...Bankruptcy Bankruptcy Social and ethical responsibilities are the two major traits that a person must possess before starting any type of business. Filing for bankruptcy in reality, is the last resort in the minds of Entrepreneurs, because this act is considered bad for a person’s reputation. According to my opinion, filing for bankruptcy is both a social as well as an ethical responsibility. It allows the entrepreneur to send a clear message to his clients that he will not be able to pay his debts. It also allows the lower staff to understand that they will not gain any profit from the company. Filing for bankruptcy is...
1 Pages(250 words)Essay

Causes and Effects of the Global Financial Crisis

...Running Head: Causes and Effects of the Global Financial CrisisCauses and Effects of the Global Financial Crisis Introduction Recent global financial crisis was inevitable after the crash of the real estate markets, as this paved the way for subprime loans to reveal their negative impacts. As subprime mortgages turned into nonprofit loans and the mortgage, backed securities went into default the loss of confidence in the banking system led to the liquidity crisis. Lack of liquidity in the financial markets caused the...
11 Pages(2750 words)Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Dissertation on topic Understanding Worldcom Bankruptcy, Causes, Effects, and the Role of Staff and the Outcome of the Crisis for FREE!

Contact Us