5 Biggest Failed Companies Due To Poor Management

3. MCI WorldCom

Asset Value at Time of Bankruptcy: $104 billion

MCI WorldCom was the second largest phone company in the U.S., and it was set up in 1998 after Worldcom and MCI Communications completed their merger.

MCI WorldCom is another example of accounting fraud, in which its chief executive, chief financial officer, and chief accounting officer listed expenses as capital expenditure and inflated revenues. By capitalizing expenses, a firm can overstate its net profit since the expenses are reflected on the balance sheet instead. The bubble burst in 2002 when an internal team discovered the fraud.