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One newspaper headline, following Prudhoe Bay and the refinery explosion read, "BP =
Big Problems for Oil Giant." Who of the following would feel a connection with the
headline test?
a. Peter Drucker
b. Warren Buffett
c. Albert Carr
d. Robert Halfon
Who said, "I am incredibly nervous that we will implode in a wave of accounting
scandals"?
a. Margaret Ceconi
b. Cliff Baxter
c. Jeffrey Skilling
d. Sherron Watkins
Which philosopher developed the "greatest happiness principle"?
a. Immanuel Kant
b. Adam Smith
c. John Stuart Mill
d. Jeremy Bentham
Chiquita Banana was required to pay a $25 million fine to the U.S. government
because:
a. It violated the Foreign Corrupt Practices Act.
b. It made grease payments to customs officials by declaring extra weight on its banana
shipments.
c. It made security payments to a terrorist organization.
d. None of the above
What was the amount of Fannie Mae's restatement of its revenue?
a. $125 million
b. $90 million
c. $115 million
d. $6.3 billion
Which player wrote a book that named names of baseball players who used steroids?
a. Jose Canseco
b. Mark McGwire
c. Curt Schilling
d. Sammy Sosa
How much were Enron board members paid?
a. $25,000 per year
b. They were not paid
c. $3,000,000 per year
d. None of the above
Tyco was originally founded:
a. As a research lab.
b. By Dennis Kozlowski.
c. As a conglomerate.
d. None of the above
What types of ethical issues occur at the societal level?
a. Dabbling in gray areas
b. Falsification of records
c. Cheating on exams
d. Insider trading
Who said, "I don"t condone cop killing. [But] to reach a more just and equitable society
everybody's voice must be heard"?
a. Madonna
b. Nicole Miller
c. David Geffen
d. Jerry of Ben & Jerry's Ice Cream
Sal was at home going through his normal workout when he bent his barbell bar. Sal is
a professional bodybuilder. Sal went to his local sporting-goods store and was
approached by a clerk wishing to assist him. Sal told the clerk about his problem and
the clerk asked Sal to wait while an appropriate bar was located. The clerk presented
Sal with a bar that the clerk said "is just what you need for your type of weight
requirements." Sal paid for the bar and was returning home when he stopped at a health
food restaurant. The drink that he ordered had an unusual taste, but the food
establishment refused a refund. Sal became ill from the drink, which, as it turned out,
had a toxic substance in it. Sal had to be hospitalized. When Sal was able to work out
again, he attached the weights to the new bar and lifted the bar under his chin. The bar
snapped in the middle and severely cut Sal. Sal is angry about the drink and the barbell.
With regard to the barbell bar:
a. Sal is not entitled to any recovery for his injury or the broken second barbell because
he did not buy all of the components, including the weights, from the same store.
b. Sal is not entitled to any recovery for his injury or the broken second barbell because
he is knowledgeable himself in weightlifting and should have known which barbell to
use.
c. Sal is entitled to recovery because there has been a breach of an express warranty.
d. Sal is entitled to recovery because of the warranty of fitness for a particular purpose.
How was the Grubman/Weill deal discovered?
a. Grubman confessed
b. Weill confessed
c. E-mails from Grubman were discovered in other investigations
d. None of the above
Who said, "Subprime mortgages can be productive and fruitful. We just have to put
boundaries in place"?
a. CEO of Citigroup
b. CEO of Merrill Lynch
c. North Carolina's Attorney General
d. Alan Greenspan
You have witnessed one of your co-workers engaged in behavior that constitutes sexual
harassment of one of the department secretaries. The secretary has spoken with you
about the behavior and her concerns. She has also said, "Let me handle it." It seems that
she is not able to handle it because the behavior has continued. You should:
a. Talk with her again.
b. Report the behavior.
c. Talk with your co-worker.
d. Any of the above
John Mackey believes which of the following?
a. He agrees with Kelly's views
b. He believes "service to others" should be the corporate mantra
c. He believes that Friedman's views are correct
d. He believes that Halfon's views are correct
The WorldCom board:
a. Was known as "Bernie's Board".
b. Consisted of experienced outsiders.
c. Approved all loans to Ebbers before they were made.
d. None of the above
What group sold its Time Warner stock following the Ice-T Body Count CD release?
a. NOW
b. NEA
c. Philadelphia municipal pension fund
d. Madonna
Profit margins at grocery stores are:
a. 9 to 10%.
b. 20-20%.
c. 1 to 2%.
d. About the same as other retailers, or 50%.
Which of the following would be consistent with the Divine Command Theory?
a. The Ten Commandments
b. The U.S. Declaration of Independence
c. Natural law
d. All of the above
What is the length of Mr. Madoff's sentence?
a. 10 years
b. 18 years
c. 25 years
d. 150 years
What problem does the United States face in criminal investigations of cruise line
events?
a. Lack of evidence
b. Lack of jurisdiction
c. Lack of sufficient resources
d. There is no problem because the ICCL requires cruise lines to cooperate
What did hospital administrators report to the editors of Bone and Joint Surgery that
resulted in the withdrawal of a previously published article?
a. That the researcher who conducted the studies was not really a physician
b. That the researcher who conducted the studies was paid by a competitor of
Medtronics, the maker of the bone product, Infuse
c. That the researcher had psychological problems
d. That the researcher had falsified the data on patients
Which of the following was not a Kozlowski expense that Tyco paid for?
a. Jimmy Buffett entertainment at Mrs. Kozlowski's birthday party
b. A $6,000 shower curtain
c. Ice sculptures in Sardinia
d. All of the above were Kozlowski expenses paid for by Tyco
Who testified before Congress on the importance of ethics in business?
a. Bernie Ebbers
b. Franklin Raines
c. Jeffrey Skilling
d. Richard Scrushy
Jeff Sanders, head of finance for Components, Inc. has just interviewed Laura Dern, an
employee from the finance department of InChip, Components' chief competitor. Laura
has explained that she has been passed over one too many times for a promotion at
InChip and is thus in the job market. As Laura is leaving she whispers to Jeff, "Look, I
have no contract at InChip that obligates me in anyway. I can begin immediately.
Further, I have been able to obtain copies of our newest computer chip designs. You"ll
have them before InChip even begins production."
a. Jeff should hire Laura on the spot without any worries about ethical breaches since
Laura is not under contract.
b. Jeff's hiring of Laura may constitute an ethical breach, but would not constitute
illegal conduct.
c. Jeff should not hire Laura, and must analyze the issue of whether to disclose Laura's
conduct to InChip.
d. Jeff should not hire Laura and need not worry about Laura's conduct and its impact
on InChip.
The local fire chief of Penbrooke conducted an inspection of a small bakery in
Penbrooke and found a violation of the Penbrooke fire code: the bakery did not have a
commercial ventilator hood over its stove. The owner of the bakery asked where she
could find a ventilator hood and someone to install it. The fire chief referred her to
Chimney Specialists, another business in Penbrooke. The chief did not disclose that his
son owns Chimney Specialists and that the chief had loaned his son money for starting
the business in exchange for a percentage of the profits.
a. The fire chief has a conflict of interest.
b. The bakery owner has a conflict of interest.
c. There is no conflict unless the chief has fabricated the violation.
d. There is no conflict if the son has the only hood ventilator business in Penbrooke.
"Smoothing out earnings" can be a comfort name for:
a. Cooking the books.
b. Manipulating earnings.
c. The perfectly legal practice of timing expenses and income to avoid blips that affect
share value.
d. All of the above
Which of the following did Malden Mills not do in 2004?
a. Partner with a Chinese factory
b. Expand its military contracts
c. Sell on QVC
d. Both a and b
e. Malden did all of the above
Plato and Aristotle have which ethical school of thought in common?
a. Moral relativism
b. Justice
c. Contractarianism
d. Virtue
What reason did Ken Lay give for Jeffrey Skilling's departure from Enron?
a. He had another job
b. He wanted to spend more time with his family
c. He was fired
d. None of the above
What statutory duty did the Penn State University officials have regarding Mr.
Sandusky's conduct?
a. To report it to the proper authorities
b. To terminate Mr. Sandusky
c. To report it to the NCAA
d. To conduct an investigation
Who provides the data for investment requirements for pension funds?
a. Investment advisers
b. Actuaries
c. The federal government
d. ERISA
Laura Nash provides tools for examining how a company got into an ethical dilemma.
Dumping a product that has been outlawed in the U.S. in other countries is legal.
Tyco was not forthcoming in its financial statements about its acquisitions.
Marc Anthony and Jennifer Lopez, the famous parents of twins have brought suit in
California against Silver Cross, LTD., a British company known for its expensive prams
(baby carriages). Mr. Anthony and Ms. Lopez allege that their images were used in
connection with advertisements for Silver Cross prams without their permission. They
allege that the use of their pictures and images with the carriages gives the impression
that they are endorsing the product. They refer to the use of their photos as "a brazen
and intentional" violation of their rights. Evaluate the ethics of Silver Cross.
Pension accounting for ERISA differed from pension accounting for the SEC.
The safest and simplest conflict of interest policy for purchasing agents is to accept
nothing from suppliers.
Confrontation is easy for most people.
The employment-at-will doctrine contains an exception for whistle-blowers.
Discuss the similarities between a teen's decision to text-message whilst driving and an
executive's decision to not perform routine maintenance in the interest of saving on
costs at a plant.
It would not be unethical to continue interviewing for positions after you have already
accepted employment with a particular firm.
Freeman's stakeholder theory is grounded in ethical egoism.
Robert Nozick is the leading thinker for utilitarianism.
Company A's executives are members of the board of a charity. Company A may even
itself be a major donor to the charity. The charity may even benefit many of the
company's customers. The charity holds a golf tournament to raise money. The
executives participate in the tournament. In some cases, Company A even pays the
executives' participation fees (good for company image). Company B is a supplier to
Company A or a vendor that would like to be a supplier. Enter the desire for face time.
In some tournaments, Company A executives turns to every Company B executive in
the supply chain and asks for participation. And participate they do. They pay their
entry fees because Company A executives ask. But sometimes Company B folks want
and get more. Company B antes up the dough for primo participation in the tournament.
Ifa VP of Company A is playing a round with a celebrity, Company B pays enough to
get its VP in the same foursome.
Discuss the ethical issues.
Your supervisor has told you that he wants to "get rid of Jane." Jane is a Hispanic
female co-worker who is very bright and capable and hardworking. Your supervisor has
asked you to document everything Jane does and says that will help build a case for
termination. You should do as your supervisor tells you.
In the equation P=ƒ(x), P stands for profits.
WorldCom's accounting issues involved capitalization of ordinary expenses.
Shareholders have the eventual say in executive compensation.
Royal Dutch's restatement of its reserves did not affect its revenues.
