Effects on other commercial organizations Worldcom Accounting essay
The accounting fraud at WorldCom: its causes, characteristics, consequences and lessons learned. Javiriyah Ashraf 2011 University of Central, With WorldCom in tatters, he is accused of masterminding a record-breaking accounting fraud that brought down the company he founded and left. The New York Times published an article focusing on WorldCom's aggressive accounting in 2011. reporting revenue. About: What do ethics have to do with accounting, How does a scandal affect the business environment and society? This article will explain exactly these questions by Worldcom Scandal. WorldCom Scandal Formerly known as WorldCom, now known as MCI, this US-based telecommunications company was once the second largest long distance telephone company in the US. Today it is perhaps best known for a massive accounting scandal that led to The Company Filing for Bankruptcy. The accounting strategy, which the SEC says was introduced when the slowing economy resulted in a decline in WorldCom's profits, may have been blessed by other executives. Order a custom essay The Rise and Fall of Worldcom with free plagiarism report. First, coercion was the main relevant theory these managers used to run businesses. They showed their ability to apply punishment to subordinates and this comes from the manager's position and controlling the behavior of colleagues through coercion. Network effects occur when the customer The value of a product increases with the number of people using the same product or a complementary product. A typical example is the telephone. By itself, the phone is little more than a paperweight. To me it's only useful if other people have it. The business environment is often uncertain, where managers are confronted with many factors that influence the organization. The microenvironment includes suppliers, customers and stakeholders, all of whom directly influence the organization. However, the macro environment includes factors that influence the fact that WorldCom, the country's second-largest long-distance telecommunications company, announced that it overestimated earnings and the first quarter by more than 3. The announcement stunned financial analysts and, in the future, top accounting issues at other companies, had a