Adelphia Communications – Corporate Scandal

Adelphia Communications Corporate Scandal Adelphia Communications Nature of the line of business Adelphia Communications is a cable television corporation that had its home mathematical function in Greenwood Village, Colorado. It was the twenty percent largest telecommunications union in the US with annual revenue of $3.61 billion. Founded by butt Rigas in 1952, it make rapid strides before bill scandals ripped the company apart. It was eventu all in ally change 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 understanding sheet loans and this money was used by the Rigas family for their expenses. can Rigas bought the overawe Sabres team for $150 million and this came from Adelphia. It paying(a) $12.8 million in 2001 for office furniture and design operate provided by Doris Rigas. Even John Rigas good works were tainted. Adelphia paying(a) a Rigas family partners hip that owns the Sabres $744,000 for luxury-box rentals, hockey tickets, and opposite 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 aliment duties for Adelphia. (Leonard, Harrington, Burke, Rigas, Rigas, Cohen, 2002, p.137). When this information got to the public. John Rigas as well as triad of his sons James, Tim and Michael resigned from the board. The Rigas family rigged the companys balan! ce sheet by inflating the number of subscribers and increase the routine expenses that were entered as capital expenses in the balance sheet. ethical Dilemma The ethical dilemma present here is the interlocking of interest between the founders of the company and the remaining parties like shareholders and employees. conflicting other corporate scandals, the Rigases did not plan to sell their...If you take to get a extensive essay, order it on our website: OrderCustomPaper.com

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