Enron Worldcom

GUTIERREZ, Ma. Kristine December 10, 2011

3C1 – Financial Management

ENRON and WORLDCOM

ENRON was a multinational energy corporation that was founded in Omaha, Nebraska in 1985. Regardless of ENRON’s vast successes within the natural gas industry - within which it was considered to be one of the foremost natural gas conglomerate companies, the mention of the name ENRON in current times is commonly associated with a financial scandal involving the company. WorldCom was a telecommunications company that underwent a merger with fellow telecommunications company MCI in 1997; subsequent to the merger of these 2 giants within the telecommunications industry, the conglomerate company was renamed ‘MCI WorldCom’. Both of these companies experienced difficulty handling their business.

Those two companies or both really are taking down markets because of its huge contribution to the success of their country. Enron being called as the most innovative company says it all. If you were to be called that, you should be proud and it also means that you are doing in good in the business world. But then something happened last 2001, bankruptcy. Their shares are only pennies and 25,000 workers lost their jobs which is really heartbreaking. It seems that they are publishing high profits that aren’t really made so that means that they are fooling everyone else. Even the big bosses of Enron didn’t escape from this tragic loss. They even had to sell their houses, nothing is left for them. I just hope that when I enter into a business company or a corporation, I would not be able to experience everything these two companies experienced. As for WorldCom, it is also same as that in Enron like they were unable to provide sufficient maintenance to other investments. Their profits were declining that made them go down.  This accounting fraud purportedly resulted in the fraudulent...