How low did FINOVA’s share price dip?
a. To $1.12
b. To $0.72
c. To $0.24
d. To $0.06
How many candidates were approved for partnership in the year Hopkins was a
candidate?
a. 7
b. 15
c. 21
d. 47
Why did Audi enter into a settlement with 8 Mile and Eminem?
a. Audi had copied the color scheme on one of Eminem’s CD covers
b. Audi had run an ad with the look and feel of Chrysler’s “Lose Yourself” ad
c. Audi had used Eminem’s photo in one of its ads
d. None of the above
With reference to #32 above, where does the story take place?
a. Mt. Washington
b. Himalayas
c. Nepal
d. Both b and c
At the heart of the Marsh McLennan mess was:
a. Price-fixing.
b. Insider trading.
c. Conflicts of interest.
d. Both a and c
Which of the following was not a description of Ann Hopkins that appeared in the
comments from the partners at Price Waterhouse?
a. “Strong character, independence and integrity”
b. “A stimulating conversationalist”
c. “Sometimes overly aggressive, unduly harsh, difficult to work with and impatient
with staff”
d. All of the above were comments made by the partners
The Barbara Walters/Andrew Lloyd Webber/Sunset Boulevard examples involves:
a. Bribery.
b. Organizational abuse.
c. Interpersonal abuse.
d. Conflicts of interest.
What loophole regarding consumer debts was closed by the bankruptcy reforms passed
in 2005?
a. Full exemptions for home, regardless of their size, were reduced to partial
exemptions or additional requirements for residency
b. Consumers could no longer declare bankruptcy
c. Consumers had to surrender their homes to the bankruptcy court
d. None of the above
Who is Richard Grimshaw?
a. Ford engineer who did the cost-benefit analysis on the Pinto
b. A teen who was severely burned when the Pinto he was riding in exploded into
flames following a rear-end collision
c. CEO of Ford Motor
d. Secretary of the Department of Transportation
In November 2009, a large cache of e-mails and technical documents from the Climate
Research Unit (CRI), part of the University of East Anglia in Great Britain, appeared on
several Internet file-servers and could be downloaded by the public. The University has
yet to determine whether the posting of the proprietary files were the result of a hacker’s
effort or whether they were posted by a whistleblower with CRI.
CRI’s research and data have been used by the UN’s Intergovernmental Panel on
Climate Change (IPCC) as the basis for its support for both the Kyoto and Copenhagen
Protocols, a form of international treaty that would have countries agree to curb their
carbon emissions. The Kyoto Protocol fizzled when the United States declined to adopt
it. The meeting at Copenhagen for the adoption of emissions standards began on
December 7, 2009. Fossil-fuel industries would be affected by the Protocol. Those
industries include oil and gas, auto industry, and fossil-fuel based utilities (coal, oil, and
gas). Those industries did undertake voluntary reductions following the demise of the
Kyoto Protocol. To date, businesses and industries in the United States have achieved
one-half of the reductions that Kyoto would have mandated.
The 1,000+ e-mails from the scientists at CRI reveal what MIT scientist Michael
Schrage has called “malice, mischief, and Machiavellian maneuverings” among the
scientists with regard to their data and research on climate change. The e-mails include
the following revelations:
•Ongoing efforts to manipulate the peer-review process for manuscripts that were
submitted for publication in academic journals if those manuscripts challenged the
research and conclusions of CRI scientists.
From: Phil Jones. To: Many. March 11, 2003
“I will be emailing the journal to tell them I”m having nothing more to do with it until they
rid themselves of this troublesome editor.”
Professor Jones appears to be lobbying for the dismissal of the editor of Climate Research,
a scientific journal that published papers downplaying climate change.
From Phil Jones To: Michael Mann (Pennsylvania State University). July 8, 2004
“I can’t see either of these papers being in the next IPCC report. Kevin and I will keep
them out somehow ” even if we have to redefine what the peer-review literature is!”
•There was considerable disagreement acrimony among the CRI scientists about the
results, meaning, and interpretation of their data and work ” something not revealed
in either their publications or speeches.
•Significant portions of data from CRI were withheld from public disclosure or
examination by scientists outside CRI.
•University of Arizona professor Jonathan Overpeck expressed concern to his
colleagues in the e-mails, “Please write all e-mails as though they will be made
public.”
•CRI scientists ignored requests for the release of raw data.
•One CRI scientist deleted his e-mails after demands for the data were made public.
However, he neglected to delete an e-mail that revealed his actions in response to a
British Freedom of Information Act (BFOIA), “I am supposed to go through my
emails and he can get anything I”ve written about him. About 2 months ago I
deleted loads of emails, so have very little ” if anything at all.” There is an
investigation of possible violations of the BFOIA.
•That the CRI scientists were aware that the reconstruction of the earth’s climate
(paleoclimatology) during periods prior to actual human measurement and
recording is a massive and complicated undertaking that is dependent upon
statistical interpretation of raw data, interpretation that would ordinarily result in
intense academic controversy. However, the e-mails reflect efforts to prevent or
obscure the controversy. Again, CRI Scientist Phil Jones’ e-mail:
From: Phil Jones. To: Many. Nov 16, 1999
“I’ve just completed Mike’s Nature [the science journal] trick of adding in the real temps to
each series for the last 20 years (i.e., from 1981 onwards) and from 1961 for Keith’s to
hide the decline.”
•An e-mail from a U.S. climatologist included in the releases reflected, “I support
the continued collection of such data, but I am disturbed by how some people in the
paleo community try to oversell their product.”
•Another scientist wrote, “I”m not political. If anything, I would like to see the
climate change happen, so the science could be proved right, regardless of the
consequences.”
•An outside scientist brought into the loop wrote, “That fact is that we can”t account
for the lack of warming at the moment [since 1998] and it is a travesty that we
can”t.”
The University of East Anglia is conducting an investigation of the e-mails and CRI, but
has warned, “The selective publication of some stolen emails and other papers taken out of
context is mischievous and cannot be considered a genuine attempt to engage with this
issue in a responsible way.”
Prominent government and NGO officials have responded by indicating that regardless of
the conduct of the scientists there is a climate problem that must be addressed.
List all of the ethical issues you see. Be sure to include a discussion of any social
responsibility issues that you see.
David Duncan, the audit partner in charge of the Enron account for the Houston
Andersen office:
a. Was close friends with Andrew Fastow.
b. Was close friends with Sherron Watkins.
c. Was close friend with Richard Causey.
d. None of the above
Who said, “Competition can be fierce, but must also be fair and legal”?
a. Adam Smith
b. Milton Friedman
c. Pepsi
d. Marsh McLennan
How does numbers pressure develop in an organization?
a. Through incentive plans
b. Through performance evaluations
c. Through amount of time devoted to discussing numbers and performance
d. All of the above
Materiality:
a. Is a standard for determining whether a financial event or issue must be reported.
b. Is no longer part of GAAP.
c. Is the reason EBITDA is now used.
d. Is a physical technique for managing earnings.
What relationships are now being regulated as a result of underfunded pension plans?
a. Auditors of the funds and their clients
b. Union officials and auditors of pension funds
c. Actuaries of funds and the pension plan sponsors
d. All of the above
Former Prosecutor Michael Nifong of Durham County, North Carolina:
a. Withheld evidence from defense attorneys.
b. Conducted line-ups inappropriately.
c. Embezzled from the county.
d. Both a and b
e. a, b and c
Which category of ethical dilemma does line-cutting fall into?
a. Taking things that don’t belong to you
b. Taking unfair advantage
c. Conflict of interest
d. False impression
Who is Thomas Ward?
a. Beech-Nut’s purchasing manager
b. Beech-Nut’s CEO
c. Beech-Nut’s head of chemistry
d. Beech-Nut’s lawyer
How did Patricia Anderson’s car get rear-ended?
a. The car stalled on the freeway and she was trying to get off the freeway when she
was rear-ended
b. She was rear-ended by a car going 70 mph as she sat at a stop sign
c. She was not rear-ended; her car exploded at a stop sign
d. None of the above
Which of the following is not an element of the Laura Nash’s model for evaluating
ethical dilemmas?
a. Is it legal?
b. How would I feel if I were on the other side of the fence?
c. How will my actions be perceived?
d. Could I discuss my decision with my boss, CEO, family, friends?
In addition to the crush space issues, what other problems did the Pinto design have?
a. None, the only problem was the crush space
b. The price of the car was too high
c. Protruding flanges and bolt heads
d. None of the above
Who said, “The question is not about business, it’s about responsibility”?
a. President Clinton
b. Charlton Heston
c. Tracy Morrow
d. David Geffen
Which of the following would not be a basis for a negligence product liability suit?
a. A recall by Toyota of certain of its cars for problems with the floor mat interfering
with the driver’s ability to apply the brakes quickly
b. A highly explosive gas tank installed in a car with the manufacturer’s knowledge of
its dangers
c. The continued sale of sunglasses to baseball teams knowing that the sunglasses were
not shatterproof and had caused players eye injuries
d. All of these would be a basis for a negligence product liability suit
Ikea’s solution to obtain electrical power for the grand opening of its flagship store in
Russia was:
a. To pay the bribes demanded by the government officials running the electric
company because it was a facilitation payment.
b. To lease generators.
c. To shut down its operations in Russia.
d. To use an agent to pay the officials so that it was not violating the law.
Fifty-nine auto dealers around the country were fined $200,000 by the Department of
Labor for child labor violations. The car dealers hire 16- and 17-year olds to move cars
from service bays to customer pick-up areas and from lots to show rooms. They are also
employed to wash cars. The teenagers move the cars literally only hundreds of feet in
the process, but they are driving the cars.
Under the Fair Labor Standards Act and the federal regulations, only those employees
who are age 18 or above are permitted to drive as part of job requirements. The fine for
a violation is $1,100.
The Department of Labor contacted dealerships and asked for the names of their
employees under the age of 18. Once the Department had the names, it contacted the
young employees to question them about their job duties. Upon discovery of the
driving, the dealerships were fined.
About one-half of the dealerships have paid the fines and the remainder are protesting.
The result has been that dealerships will now employ only those who are 18 and older
because it is impossible to have an employee responsible for washing cars and not be
able to move the car. The result has been that many special job programs for minority
students and students in vocational schools have been eliminated.
a. Do you think this type of driving was intended to be covered in the child labor
statutes?
b. Are auto dealers taking advantage of children or helping them?
A recent survey found that 24% of Americans feel that it is always wrong to speed. In
which of the following schools of ethical thought would this 24% fit best?
a. Moral relativists
b. Utilitarians
c. Ethical egoists
d. Virtue
Non-GAAP measures can be helpful:
a. When a company has large equipment needs.
b. When a company switched inventory evaluation methods.
c. When a company has changed accounting practices.
d. All of the above
Which of the following is a correct statement about employer liability for sleepy
employees who fall asleep on the way home and cause accidents?
a. Employers have no liability for these accidents
b. Employers have been held liable for such accidents
c. Employers are liable only if they pay the employees during their travel time to and
from work
d. Employers are not liable if employees volunteer for extra work hours
What are the risks of marketing infant formula in third-world countries?
a. Customers cannot afford the formula
b. Customers may mix the powdered formula with bad water
c. Customers may water down the formula
d. All of the above
How did Fannie Mae discover the flaws in its computer model for amortization?
a. The OFHEAO report disclosed them
b. Former employee Roger Barnes raised concerns
c. Both a and b
d. None of the above
What job did Bernie Ebbers hold while he was in Canada?
a. Motel owner
b. Junior high basketball coach
c. Long distance operator
d. None of the above
A focus on the trappings of success causes leaders to lose their way.
Ethical lapses involve gradual decision processes.
BP’s focus on costs influenced its judgment and decisions on engineering issues.
Acquisition accounting gave Tyco officers flexibility in reporting earnings.
Murry Gunty was expelled from Harvard.
Employee hotlines exist to help employees who feel they cannot communicate concerns
through the lines of authority.
Your company’s policy on company vehicles is that no family members may use them
or ride in them. It would be unethical to use a company car to drive you and your
spouse to a movie.
Andrew Fastow’s role as an officer of an SPE was not a conflict of interest.
No officers at Chiquita can be held criminally responsible for the Chiquita payments to
mercenary groups.
Competitors cannot agree on prices for their products without violating the law.
Discuss the similarities between the Westland/Hallmark case and the Cintas and OSHA
case.
Long-term relationships create ethical and legal obligations between the parties through
conduct and accommodations.
If you are fired from your job, you can use any information you gained while employed
to help your next employer.
The failure to disclose relevant information about a product or service is unethical.
The failure to speak out when an ethical or legal lapse occurs within your firm is in
itself an ethical violation.
Reality TV shows enhance the “real life” scenarios.
Copyright owners have the exclusive rights to control use of the copyrighted material.
It is not your responsibility to report a co-worker who leaves the office early each day
without taking time off.
You are a building inspector for the county. A friend of yours is a plumbing contractor.
Under county regulations, all steps in plumbing construction from the initial dig to the
final installation of sink and bathroom fixtures requires an inspection sign-off. Your
plumbing contractor friend has just called and wants to take you to dinner for your
birthday at a five-star restaurant. Because you are friends anyway, the dinner presents
no ethical problems.
Claiming a computer is stolen in order to obtain insurance when the computer is simply
outmoded is acceptable when the insurer doesn”t question claims that amount to less
than $2,000.