Examining a Business Failure / Worldcom

A gentleman by the work of Bernie Ebbers started working in the teleph atomic number 53 industry that would compete in long surpass services in 1983. The company at that time was cognize as LDDS and located in Jackson, Mississippi. Bernie Ebbers, in 1995, expanded the physical composition by acquiring a number of small LD (long Distance) companies and changed the name of the company to WorldCom. He bought the telecommunications company MCI for $37 one million million million dollars in 1998. The company at the time was rated as the number 2 long distance provider. They were rated second to AT&T and in short were known as WorldCom a telecommunications giant. WorldCom was widely regarded as one of the success stories of the decade for its sudden monetary success and the many job opportunities it created in 1990. WorldCom had entered a bid to buy Sprint. It had offered $129 billion dollars to purchase the company, however, the deal was negated by the regulators. The block was due to the salving market that was trending for telecom services. This move would have set pole the companys performance. The executives at WorldCom proceeded to enter some deceitful numbers to cover up the financial condition of the validation so as to make the company look really profitable.

In researching the company according to a document empower Report of Investigation dated March 31, 2003 the report expound the accounting discrepancies as such: As enormous as the fraud was, it was accomplished in a relatively casual way: more than $9 billion in rancid or unsupported accounting entries were made in WorldComs financial systems in order to achieve desired reported financial results. The number one reason for WorldComs collapse, and the filing of Chapter 11 Bankruptcy was the board of directors doing which included fraud, and accounting discrepancies. Bernie Ebbers, WorldComs CEO, his business strategy was responsible for this fraud. He really concentrated on creating and go on to grow through business acquisitions.... If you want to get a full essay, order it on our website: Orderessay

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