motivate managers in WorldCom to engage in earning management? Issue 2: Whether or not WorldCom crossed line from earnings management to fraudulent reporting? Issue3: Why were the actions of WorldCom managers not detected over a long time? Issue4: Why Cooper and Vinson’s actions are so different in terms of ethical values? 3.0 Analysis of Issues in WorldCom 3.1 Earning Management Earning management is defined as “the process of taking deliberate actions within the constraints of GAAP so as to achieve
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Identifying information Cynthia is a divorced 47 year old mother of two sons‚ Stanley age 27 and George age19. Both of her sons live at home with her. Stanley‚ who is trainable mentally impaired‚ requires a lot of Cynthia’s attention. George attends Oakland Community College with plans on transferring to a four year university in his junior year. Cynthia has a great relationship with both of her children. Cynthia is in the middle class income range grossing $65‚000 a year. She is an African
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M1. Case Study Assignment: Fraud at WorldCom 1. Who were the major characters in WorldCom? There are a couple of major characters that played their roles in the downfall of WorldCom. Mr. Bernard J. (Bernie) Ebbers‚ one of the founders of the original small long-distance carrier‚ was asked to take charge of the company during its early struggles. It was under his tenure that WorldCom began its expanding pursuits and aggressive acquisitions. Although Mr. Ebbers was he head of the company‚ their CFO
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Inflating revenues with bogus accounting entries from ‘corporate unallocated revenue accounts’ (Malik‚ 2003). Resources Bethany McLean‚ Peter Elkind‚ Smartest Guys in the Room: The Amazing Rise and Scandalous Fall of Enron‚ (Portfolio‚ 2003) Pg 6-10 Cynthia Cooper (2008). Extraordinary Circumstances: The Journey of a Corporate Whistleblower. Wiley. Ferrell‚ O. C.‚ Fraedrich‚ J.‚ & Ferrell‚ L. (2005). Business Ethics Ethical Decision Making and Cases. Boston‚ MA: Houghton Mifflin Company. Lynne W. Jeter
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proprietary estoppel where she can claim for damages from Cynthia. Lydia may also have a contractual licence with Cynthia which Cynthia cannot revoke at will. Lydia Barnet’s (Client) Objectives Lydia does not want to vacate the cottage which she has lived in and maintained for ten years. Lydia is looking for a solution which will enable her to make this possible. She knows there has not been a formal agreement between herself and Cynthia that will enable her to live in the cottage however long
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References: Anderson‚ M. (2013). WorldCom ’s Betty Vinson and Cynthia Cooper: A Tale of Two Professionals. Strategic Finance‚ 95(7)‚ p. 48-51. Retrieved from www.ebscohost.com Beresford‚ D.‚ Katzenbach‚ N.‚ & Rogers‚ Jr.‚ C.B Carbone‚ C. (2006). Cutting the Cord: telecommunications employment shifts towards wireless. Monthly
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WorldCom was a pre-eminent telecommunications company that dealt with the same ethical issues that many companies deal with today. Ethics is something that comes into play in every businesses day to day operations. A decision is it ethical or not‚ is something that every employee makes in today’s business environment. Ethics is a topic that needs to be talked about and reinforced on a reoccurring basis so that unethical events like what happened in WorldCom‚ do not happen. There were many unethical
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Mba 555 - Case Study Table of Contents Summary 3 Introduction 4 Facts 4 Café Latte 4 Cynthia Chan 5 Stuart Chan 7 Rob Chan 8 Jeff Burns 8 The Chan Family 9 Inferences 9 Cynthia Chan 9 Stuart Chan 10 Rob Chan 10 Jeff Burns 11 The Chan Family 11 Problems 12 Decision –Additional Options 14 Behavior Assessment 15 Cynthia Chan 16 Stuart Chan 16 Rob Chan 17 Decision Assessment 17 Lessons Learned 19 Case Study: Café Latte‚ LLC Summary Café Latte‚ a new espresso bar‚ is about to
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swiftly ate my supper and headed towards the garage. For the first time‚ my mother drove us to school for the reason that father was gone for an essential meeting to New York‚ along with my bother. I reached there and noticed that my friends‚ Ella and Cynthia were not present. In fact‚ the whole Grade 9 was not present. I felt uneasy. I quickly rocketed to the administration office in tense‚ to inform if where did grade 9 go? As soon as I reached there I saw the Vice Principal‚ Mr. Henry. He was tall gentleman
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Finance 1 NETCO case Capital budgeting report Capital Budgeting Report Introduction At present the boat Cynthia II no longer has economic value for NETCO meaning that either an overhaul of said boat has to be financed or a new boat should be purchased. Therefore‚ an NPV budget decision has to be computed in order to determine which alternative‚ an overhaul of the current boat or the purchase of a new one‚ is most profitable. To compare the profitability of these two options we used
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