The 10-K entails information that one needs to know when he/she wants to follow or invest in the US public firms. The report contains adequate information that provides one with prior knowledge of what to expect when engaging in an investment. The report provides a clear picture of a firm's business, the risks encountered, and the operational and financial results for a given fiscal year. As a result, from this report on Embarq corporation, under item 7, there is the Management Discussion and Analysis (MD & A) section. This section covers several aspects of the company. Thus, this paper will entail information on what I found interesting in this section.
My most interesting part was the operation subsection. This part entails several aspects of the Embarq and CenturyTel company. Among them includes the company's environment, economic conditions, accounting status, and also policies execution. However, what is interesting lies under economic conditions. From the report, consumer access lines have continued to have a significant growth in losses (Embarq Corporation, 2008) . As a result, it is expected that the company’s services delivery will decline. However, ironically, instead of declining, the company continued having success in selling extra services that helped in mitigating the effects of losses.
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As a result, in the year 2008, the company's high-speed internet subscribers increased to 1.4 million. It is interesting how the losses in the previous year turn out to be a success the following year. This implies that, despite the losses, the company was still determined to ensure services are provided to its consumers. It shows that the company did not mind about the short-term effects. Instead, the company had its eyes on long-term results. As a result, the company's revenues increased by 4% per household in the year 2008. However, the results obtained from revenue per household calculation were used to estimate the company's success. Thus, this resulted in attraction and retention of high-value customers hence promoting its growth further.
Reference
Embarq Corporation . (2008, December 31). Retrieved from UNITED STATES SECURITIES AND EXCHANGE COMMISSION: https://www.sec.gov/Archives/edgar/data/1350031/000119312509028860/d10k.htm
