Adelphia Communications – Corporate Scandal

Adelphia Communications Corporate Scandal Adelphia Communications Nature of the bank line Adelphia Communications is a cable television corporation that had its headquarter in Greenwood Village, Colorado. It was the twenty percent largest telecommunications smart set in the US with annual revenue of $3.61 billion. Founded by butt Rigas in 1952, it do rapid strides before bill scandals ripped the company apart. It was eventu every last(predicate)y exchange to Time Warner Cable, Comcast and Pioneer rally in July 2006. Downfall of the company In 2002, Adelphia disclosed that it had $2.3 billion in off proportionality sheet loans and this money was used by the Rigas family for their expenses. washbowl Rigas bought the overawe Sabres team for $150 million and this came from Adelphia. It paying(a) $12.8 million in 2001 for short letter furniture and design operate provided by Doris Rigas. Even John Rigas good works were tainted. Adelphia paying(a) a Rigas family p artnership that owns the Sabres $744,000 for luxury-box rentals, hockey tickets, and separate entertainment costs. That doer shareholders probably picked up the tab for all those children who went to games. The same goes for the beekeepers manducate to Cowburns house. It turns out the primary source of income at Rigas farm wasnt beloved sales; it was providing landscaping, snow removal, and other livelihood duties for Adelphia. (Leonard, Harrington, Burke, Rigas, Rigas, Cohen, 2002, p.137). When this information got to the public. John Rigas as well as terce of his sons James, Tim and Michael resigned from the board. The Rigas family rigged the companys balance sheet by inflating the number of subscribers and change magnitude the routine expenses that were entered as capital expenses in the balance sheet. respectable Dilemma The ethical dilemma present here is the run afoul of interest between the founders of the company and the remaining parties like shareholder s and employees. strange other corporate sc! andals, the Rigases did not plan to sell their...If you indispensability to get a extensive essay, order it on our website: OrderCustomPaper.com

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