Who said, “What’s good for me is good for all shareholders”?
a. The chairman of General Motors
b. Jeff Dachis of Razorfish
c. Bill Gates
d. Sir Alfred Coke
What theories could the parents of a child injured by ingesting Buckyballs use for
recovery of damages from the company?
a. Strict tort liability
b. Implied warranty of fitness for a particular purpose
c. Express warranty
d. None of the above because there is assumption of risk with children’s toys
Of those who were applying for partnership at the time Ann Hopkins was applying, how
many were women?
a. 1
b. 3
c. 7
d. 10
Which philosopher would start with a tabula rasa and then develop ethical standards?
a. Aristotle
b. Plato
c. John Rawls
d. Robert Nozick
What did Coke do to the employees involved in the Burger King/Frozen Coke
activities?
a. They were terminated or resigned
b. They are still with the company, but were demoted
c. They are still with the company but lost their bonuses
d. None of the above
Raymond Randall is an attorney with the Federal Trade Commission. A 19-year veteran
with the agency, Mr. Randall was known as a good trial attorney. The FTC charged
William Farley, the chairman of Fruit of the Loom, Inc., with violations of the reporting
provisions of the Hart-Scott-Rodino Act, when he purchased shares of West
Point-Pepperell Corporations prior to a Fruit of the Loom takeover bid. The
Hart-Scott-Rodino Act requires investors to notify the government when their holdings
in a firm pass $15 million.
The FTC sought a fine of $10,000 per day against Mr. Farley, for a total of $910,000.
Mr. Farley did notify the FTC once Fruit of the Loom made its decision to acquire West
Point-Pepperell. Randall was assigned the Farley case. The FTC took a position of
refusing to disclose to Farley and his attorneys documents relating to the case. Mr.
Randall felt that the documents pointed to weaknesses in the FTC case and supported
Mr. Farley’s point that he notified the FTC once the takeover position was announced.
Mr. Randall leaked the documents to Mr. Farley’s lawyer.
Mr. Farley’s lawyers were concerned that they should not be in possession of
government documents returned the documents and resigned from the case because
they had seen the documents. Mr. Farley’s new attorneys went to court demanding
production of the documents. The documents were ordered produced by the court.
When the FTC refused to produce them, the case against Mr. Farley was dismissed by a
federal district judge.
a. Did Mr. Randall do the right thing in disclosing the documents to Farley’s attorneys?
b. Did Mr. Farley’s lawyers do the right thing in returning the documents to the FTC?
What are SPEs?
a. A form of gas energy
b. Energy contracts
c. Off-the-book entities
d. None of the above
Which of the following has not been an issue for Bausch & Lomb?
a. Its CEO claimed to have an MBA and did not
b. One of its products resulted in eye infections
c. Accounting issues in its Brazilian operations
d. The failure to self-report issues to the SEC
What was Lavery told in 1978 about the concentrate?
a. That it was adulterated
b. That it might not be made of real apples, but rather, of syrup and flavors
c. That the concentrate had no problems
d. None of the above
Who was criticized for being “Chicken Little” and “not a team player”?
a. Charles Jones
b. John Lavery
c. Jerome LiCari
d. Nils Hoyvald
Who created Fannie Mae?
a. Shareholders
b. The federal government
c. The Federal National Insurance Company
d. None of the above
What memo did GM have that was different from the Ford Pinto situation?
a. There was no GM memo
b. A memo from a lawyer advising against releasing any internal company analysis of
the Malibu design
c. A memo that fired engineers who worked on the Malibu
d. None of the above
How did Coke get better numbers in the test market?
a. It seasonalized the numbers
b. It altered the numbers
c. A marketing consultant used the Boys and Girls Clubs to get customers into Burger
King to buy Frozen Coke value meals
d. Its own employees bought Frozen Coke value meals
What is a condition to most pay-day loans?
a. That the borrower pay 75% interest
b. That the borrower agree to some type of collateral
c. That the borrower agree to give the lender access to the borrower’s checking account
d. That the borrower waive the right to litigation
Following Body Count:
a. Ice-T left the Time Warner label.
b. Ice-T became impoverished.
c. Ice-T became a detective on Law and Order.
d. a, b and c
e. a and c only
What happened to Ken Lay?
a. He was acquitted of all charges
b. He was convicted of all charges
c. He was convicted of 8 of the 12 crimes he was charged with
d. None of the above
Suppose, with reference to #57 above, that Pickford already owns an interest in the
biotech firm, but Munford Stanley is not the underwriter. Pickford:
a. Does not have a conflict of interest.
b. Has a conflict of interest, but it is acceptable in IPOs.
c. Has a conflict of interest that must be disclosed to all purchasers.
d. Does not have a conflict of interest, but Munford Stanley does.
e. None of the above
The former CEO of Countrywide Mortgage (now a part of Bank of America), offered
favorable loans to members of Congress, Countrywide government regulators, and
members of the board and officers of Fannie Mae, the quasi-government agency that
bought Countrywide’s mortgages in the secondary market. The loans were jumbo loans
at below-market rates. Countrywide sold 90% of its mortgages to Fannie Mae.
Congress was responsible for the creation, funding, and policies of Fannie Mae. The
members of Congress who received the Fannie Mae favorable loans sat on House and
Senate Banking Committees. Which of the following categories of ethical breaches, if
any, applies to this practice?
a. Taking things that don”t belong to you
b. Taking unfair advantage
c. Conflict of interest
d. All of the above apply
Joseph Jett:
a. Held his first job at Kidder Peabody.
b. Held a Harvard MBA.
c. Was convicted of securities fraud.
d. None of the above
Place the following in the order of their progression in the regulatory cycle:
•Activism
•Awareness
•Latency
•Regulation/Litigation
a. I, II, III, IV
b. II, III, I, IV
c. III, I, II, IV
d. III, II, I, IV
e. None of the above is the correct order
Who said, “We don”t believe in perks, not even executive parking spots”?
a. Dennis Kozlowski
b. Tyco’s CEO following Kozlowski
c. Patricia Prue
d. Frank Walsh
Following his meeting with the board of Bank of America, general counsel Timothy
Mayopoulos:
a. Was able to modify the company’s public disclosures.
b. Was able to go to the SEC.
c. Was fired.
d. Was given a promotion.
Edith O’Brien:
a. Was MF Global’s treasurer.
b. Tried to stop the use of client’s funds for hedging.
c. Was general counsel for MF Global.
d. Has been charged criminally.
How much of Andersen’s Enron revenues came from consulting fees?
a. $27 million
b. $25 million
c. $52 million
d. None of the above
XYZ Corporation expects its managers and employees to testify at congressional
hearings and appear before state legislatures to advocate policy positions on everything
from taxes to activities in national parks. Into which school of social responsibility
would you place XYZ Corporation?
a. Inherence
b. Enlightened self-interest
c. Invisible hand
d. Social responsibility
Why was Ms. Druyun’s sentenced increased from six- to nine-months?
a. The judge had not applied the sentencing law correctly
b. Because Mr. Sears was sentenced to nine months
c. Because she had lied to federal investigators
d. Both a and c
Who is Sherron Watkins?
a. An Arthur Andersen auditor
b. An employee of Fortune
c. A former vice president of Enron
d. None of the above
Which model for ethical decision analysis requires managers to seek additional
perspectives on ethical issues?
a. Laura Nash model
b. The Wall Street Journal model
c. The Blanchard and Peale Model
d. Both a and c
e. a, b, and c
Randy White is the executive director of a non-profit preschool for special needs
children. Part of Randy’s responsibilities include fundraising for the preschool. Because
of his experience and success in operating specialty pre-schools, Randy is sought after
as a consultant at locations around the country to assist in the start-up and operation of
such facilities. Randy does so quite frequently. Randy does not take vacation time for
this work, and his consultant fees (which range from $750 – $1500 per day) are kept by
him as personal income. Randy uses his secretary at the preschool to book his travel
arrangements and prepare his consultant reports and bills for these outside
engagements.
a. Randy’s activities are ethical so long as disclosed.
b. Randy is using the time and resources of his employer in an unethical manner.
c. Randy’s activities are ethical whether disclosed or undisclosed.
d. There is no conflict of interest in Randy’s activities.
Susan Wade is the president of the Illinois Hospice Organization (IHO). IHO is a state
organization affiliated with a national non-profit organization, the National Hospice
Organization. Both the state and national organizations have members from both
for-profit and non-profits hospices. Susan Wade is the director of a non-profit hospice in
Illinois.
A Chicago newspaper has printed a story about hospices and what they do. Susan was
interviewed extensively for the piece. In one quote in the article, Susan expressed her
concerns about for-profit hospices. “It has become the sort of franchise of the decade.
They’re not all bad, but I think the original spirit of hospice is becoming very
adulterated. There’s one time in a person’s life when he shouldn’t be looked at as a
number, as a piece of an actuarial problem. If your first and last priority is making
money, it flies in the face of what hospice is all about. It’s the end of the health-care
chain. It’s the place of last hope for patients. Dollars should not be the issue here.”
A chief operating officer of a for-profit hospice has written to Susan complaining that
her remarks are libelous and misinform the public about for-profit hospices.
a. Does Ms. Wade have a conflict of interest?
b. Is Ms. Wade properly executing her role as the president of the state organization?
Mother Teresa is an example of which category of moral development?
a. Morally superior
b. Moral sycophant
c. Inherently moral
d. Moral postpone
What were the rumors around the industry about the concentrate products?
a. That there might be adulteration
b. That there would soon be a price increase
c. There were no rumors; the concentrate was the best the industry had seen
d. None of the above
How much did Boeing pay to settle the criminal investigation into the use of the
documents and other issues?
a. $1 billion
b. $615 million
c. $1.1 billion
d. $5 billion in lost contracts
The March 2007 rule of the SEC requires new disclosures on:
a. Officer perks.
b. Options.
c. Grants.
d. Both a and b
A radar detector:
a. If purchased legally, is not an unethical device.
b. If used only in those states in which they are permitted is an ethical device.
c. Is a legal and ethical tool for circumventing speed limits.
d. None of the above
Why do companies issue press releases when executives depart that indicate the
executives are leaving to spend more time with their families? What are the ethical
issues in issuing such statements if they are not true?
List those who are affected by wi-fi piggybacking.
Leaking proprietary information to the media is not an ethical breach.
A company executive exerting pressure on a scientist and her university to delay
disclosure of study results harmful to the company and its products would be unethical.
David Duncan was indicted on obstruction charges and convicted.
Confrontation is a key part of ethics.
You are taking a graduate level course in management that will help you in performing
your duties at work. Each week you must submit case analyses to your professor. Using
work time to complete the analyses would be unethical.
James and Jennifer Stolpa and their five-month old son, Clayton, were stranded
outdoors in a snowstorm for 8 days. They were rescued after James left Jennifer and
Clayton in a cave and hiked 30 miles in subfreezing temperatures to get help.
During the time they were stranded, the Stolpas ate Doritos-brand corn chips that they
had with them in their car. When they were rescued and taken to the Washoe Medical
Center for treatment of severe frostbite, they were visited by boxing champ, George
Foreman. Mr. Foreman is a spokesperson for Doritos. His visit to the Stolpas earned
national press and television coverage that emphasized the Doritos consumption.
If you were an executive with Doritos, would you have sent Mr. Foreman to the
hospital?
Albert Carr believes that a card up the sleeve is not the same as bluffing and is a form
of cheating.
Decisions on corporate charitable contributions carry no ethical implications.
Develop a policy for universities for disclosure by researchers of funding sources.
Timothy Mayopoulos met with the board of Bank of America to discuss financial
disclosures.
Earnings management is the use of accounting techniques to smooth earnings.
You work for a school district as a facilities coordinator. You drive to the various
schools in the district and supervise construction and remodeling and assess various
building needs. When you are traveling around to the various schools, you use a district
vehicle that is clearly marked as such. One day you stop at the country club and have
lunch before heading to the next school since the country club is on the way. You also
stop at the bank drive-thru teller to do some personal banking business. Both the lunch
and the bank stop are ethical breaches.
A conflict of interest is unethical only if those involved actually change their decision
based on the benefits to be derived.
Althea Caldwell is the director of Arizona’s Department of Health Services (DHS).
DHS is charged the administration of the state’s behavioral health system and is
responsible for contracting with private providers for millions of dollars of mental
health care each year for eligible patients.
Ms. Caldwell accepted a $20,000 per year director position for a hospital group
corporation. One of the hospitals in the group was one to which state contracts for
mental health treatment had been awarded.
One month after accepting the position, Ms. Caldwell asked the state’s attorney general
for an opinion as to whether she had a conflict of interest.
Does Ms. Caldwell have a conflict of interest?