Problem 1: Summarize the telecom market and the WorldCom strategy leading up to the acquisition of MCI. How did these events impact the future of the company - good or bad?
Problem 2: In accounting terms, what did Worldcom do that was illegal, led to is senior officers being jailed, and ultimately led to the demise in the company? In hindsight, could any of this have been avoided and how? Be as specific as possible
Problem 3: How can CEOs of large companies, in good faith, sign off on Sarbanes Oxley Section 404 when they do not have direct visibility to all of their employees?
Problem 4: Do you think the Sarbanes Oxley Act is an effective remedy for rooting out fraud in companies? Provide your viewpoint of the pros and cons of this legislation and end with your opinion on whether it should be continued?
Problem 5: Provide a list of five different stakeholders (in priority order) that you feel were involved in the wrongdoing at Worldcom. After each stakeholder, please provide a summary of their specific role in the process and what they should have done differently. (hint: Stakeholders can be individuals or organizations?
Problem 6: Do you think Verizon (ex. Worldcom) is on the road to recovery? Why or Why Not? Do you think the "price" Worldcom paid for their wrong doings was appropriate given the state of the company today? Why or why not?