Why might WorldCom fraud seem less egregious than Enron? 

 

 

2. Why, according to a telecom executive from the South, was WorldCom able to grow so quickly? 

 

 

3. What was the basic strategy of the nine investors who later became WorldCom at the beginning of their business? T

 

 

4. What was Ebber's acquisition formula? 

 

 

5. What were some of the factors that led to a decrease in WorldCom's growth? 

 

6. What are some reasons why WorldCom might have been less able to deal with its problems that its telecom competitors, most of whom faced the same problems? 

 

 

7.    What were some of the practices that WorldCom used to sustain its 42% E/R ratio?

 

 

8.    Very briefly state why the improper release of accruals was fraudulent. 

 

9.    Briefly explain how WorldCom's method if 'Closing the Gap' worked. 

 

 

10. What is the difference between a 'disinterested judgment' and an 'interested judgment'? 

 

 

11. Give at least two reasons why Sullivan's decision to capitalize line costs was an 'interested judgment'? 

 

 

12. What is the difference between the burden of ownership and the way WorldCom's lines were a 'burden' to the company? 

 

 

13. How was Enron's fraud similar to that of WorldCom?

 

 

14. How were the Dutch doctor in WWII able to resist the Nazi demands that they euthanize patients and perform other medical atrocities? 

 

 

15. How did Arthur Andersen view its relationship with WorldCom? 

 

 

16. What were some ways that Arthur Andersen made it easy for WorldCom to commit fraud? 

 

17. How did WorldCom fraud come to light in the end?

Answer rating: 100% (QA)

1 WorldCom fraud may seem less egregious than Enron due to differences in public perception media coverage and the scale of financial manipulation involved 2 According to a telecom executive WorldCom ... View the full answer