Coca-Cola’s test marketing of Frozen Coke:
a. Took unfair advantage of Burger King.
b. Involved stating things known not to be true.
c. Gave a false impression.
d. All of the above
What was unique about the compounding industry?
a. It was neither a state nor federally regulated industry
b. It had pressure to produce compounds quickly and cheaply
c. It did not always comply with regulatory requirements
d. It had no ethical issues
When Beech-Nut’s CEO became aware of the problems with its juice supplier, he:
a. Immediately canceled the contract and no longer used the product.
b. Canceled future shipments only.
c. Reported the problem to the FDA.
d. None of the above
Which were not problems that resulted from WorldCom’s high level of mergers?
a. Merging billing systems was difficult
b. Customer service concerns
c. Collections suffered
d. All of the above were problems
Megyn Kelly, a Fox News Anchor, is interviewing a physician about the impact of
Obamacare. The physician is a partner with Ms. Kelly’s ex-husband.
a. Ms. Kelly need not disclose the relationship because she is now divorced.
b. Ms. Kelly need not disclose the relationship unless she also interviews her
ex-husband.
c. Ms. Kelly needs to disclose the relationship.
d. Ms. Kelly need not disclose the relationship because she is an anchor, not a reporter.
Businesses must face social issues because:
a. It is the right thing to do.
b. They can affect profits.
c. The U.S. Constitution requires them to do so.
d. None of the above
Nobel economist Milton Friedman said that the social responsibility of a business is to
make money for its shareholders. Into which school of social responsibility would you
place Dr. Friedman?
a. Inherence
b. Enlightened self-interest
c. Invisible hand
d. Social responsibility
How did Bausch & Lomb compete with itself?
a. It sold its own contact lenses on the gray market
b. It had both wholesale and retail operations
c. It sold lenses through physicians
d. None of the above
What is the variable in uncovering resume fraud?
a. Sometimes the fraud is uncovered and sometimes it is not
b. The amount of time it takes to uncover the fraud
c. Whether the fraud relates to degrees
d. None of the above
What rationalization do most speeders use to justify driving in excess of the speed
limit?
a. I’m a better driver.
b. That’s what they do in California.
c. Everybody speeds.
d. That speed limits are arbitrary.
Which of the following was the focus of the Bank of America and Mayopoulos’ dust-up
during the Merrill Lynch acquisition?
a. An accounting practice at Bank of America
b. The termination of outside legal counsel
c. The disclosure of the extent of losses at Merrill
d. Ken Lewis’s desire to retire
Which of the following have removed plants, companies, or offices from states or local
areas after having received benefits for locating there?
a. Pfizer
b. GM
c. Nike
d. Oliver Stone
What was Lavery’s first step in dealing with the concentrate issues?
a. Canceling the contract
b. Ordering less concentrate
c. Checking the supplier’s facilities
d. None of the above
Circumventing rules in order to get products imported is not covered under the FCPA.
Which of the following is not a conflict of interest?
a. A doctor’s referral of a patient to an x-ray lab that he owns for a full work-up without
disclosing his ownership interest
b. A purchasing agent’s failure to disclose a 22% ownership interest in a supplier that
would be chosen anyway
c. A bank officer’s solicitation of a charitable contribution for a non-profit organization
of which he is a member from a customer with a large line of credit up for renewal in
30 days
d. All of the above are conflicts of interest
What actions did the Stevens-Henager employees take prior to leaving for their new
jobs at Eagle Gate College?
a. Copied documents to take with them to a competing college
b. Copied marketing plans to take with them to a competing college
c. Sabotaged Stevens-Henager’s leads list
d. Both a and c
Jack Grubman made his deal with Sandy Weill on his stock analysis:
a. In order to obtain funding for WorldCom.
b. In order to obtain funding for Citigroup.
c. In order to gain a promotion at Salomon.
d. None of the above
Which of the following is true about the Union Carbide Bhopal plant?
a. It met Indian safety standards
b. It was operated by Union Carbide technicians from the United States
c. It never met government regulations
d. It met both U.S. and Indian safety standards
How much had Ford offered to settle the case for?
a. $10 million
b. $20 million
c. $30 million
d. None of the above
Gaining access to non-public bid information is not covered under the FCPA.
The sale of a product with a known defect or with knowledge of its potentially harmful
impact on users:
a. Is illegal.
b. Is unethical.
c. Exposes the manufacturer to strict and negligent product liability.
d. Both b and c
What was Lee Iacocca’s objective in designing the Pinto?
a. A car less than 2,000 pounds that cost less than $2,000
b. A carefully designed competitor for small imports
c. Safety
d. None of the above
The KELP program at Tyco:
a. Was not abused; accounting issues were unrelated.
b. Was poorly supervised and administered.
c. Violated federal law at the time.
d. Was embezzlement.
Which of the following officers raised concerns about loans to Tyco officers?
a. Mark Belnick
b. Mark Swartz
c. Patricia Prue
d. Karen Mayo
What was Medtronic’s involvement in the research on its Infuse bone product?
a. It was paying the physicians involved in the research
b. It was involved in drafting the articles on the research for publication in medical
journals
c. It released all the data from the research for further study
d. All of the above
Under the Rights Theory, who holds the responsibility for protection of rights?
a. Individuals, under normative standards
b. Government
c. Individuals rights are not protected, just defined
d. None of the above
Minnesota has a statewide smoking ban for public places. However, the state statute
includes an exemption that permits smoking by actors in theatrical performances. In
order to take advantage of the exemption, the Old Clover Inn, located in Vadnais
Heights, Minnesota, has begun holding theater night, every night. The Old Clover Inn
has placed its pool tables in an area that is framed with theater curtains and refers to the
pool players as its actors. The Inn also has a stage for its cribbage players who sit and
play cribbage and smoke.
The Inn calls the nightly production, “As the Clover Turned,” and it distributes a
playbill that describes the nightly plays as involving “numerous uncredited actors in the
role of bar patrons.” The Inn distributes buttons for $1 to patrons. The buttons read,
“Act Now!”
The Minnesota Health Department has warned the Inn that what it is doing is an attempt
to circumvent the law. Which statement best describes the Old Clover Inn’s approach to
ethics?
a. Old Clover Inn acts in a socially responsible manner, going above the requirements
of the law in running a business.
b. Old Clover Inn has found a perfectly legal way of doing business and compliance
with the law is one standard for ethics.
c. Old Clover Inn believes that ethics requires doing more than the law requires and less
than the law allows.
d. None of the above
What did the memo entitled, “Fatalities Associated with Crash Induced Fuel Leakage
and Fires” analyze?
a. Other auto manufacturers’ cars and their risks
b. The cost-benefit analysis of producing the Pinto as is or changing its
design/components
c. The history of rear-end auto collisions in the U.S.
d. None of the above
Which of the following is not an option for whistleblowers?
a. Leaving the company and saying nothing about the issue
b. Leaving the company and saying something upon leaving
c. Staying with the company and saying nothing about the issue
d. Staying with the company and revealing the problem to an internal source
e. All of the above are possible options for whistleblowers
Under Sarbanes-Oxley, which of the following would be a conflict of interest for the
outside auditor of a company?
a. Providing management consulting services to the company, too
b. Providing actuarial service to the company, too
c. Designing the company’s financial system
d. All of the above
Jack Grubman was involved in which of the following activities at Citi?
a. Embezzlement
b. IPO allocations to clients
c. Negative analysis of WorldCom stock and performance
d. All of the above
What was Captain Hazelwood’s condition when the Valdez ran into a reef?
a. He was asleep
b. He had been drinking
c. He had been working excessive hours
d. a and b only
e. All of the above
Home Depot shareholders rebelled because:
a. Of excessive compensation and poor earnings performance.
b. The failure of board members to face shareholders.
c. They were not given discounts at stores.
d. Both a and b
e. All of the above
Which of the following categories was involved in the Skecher’s ads for its Shape-Up
Athletic shoes?
a. Saying things that are not true
b. False impression
c. Conflict of interest
d. All of the above
Which school of social responsibility most closely matches Freeman’s Stakeholder
Theory?
a. Inherence
b. Social Responsibility
c. Invisible Hand
d. Enlightened Self-Interest
Employer e-mail systems have been ruled as employer property in which employees
have no rights of privacy.
The failure to follow U.S. safety standards in foreign operations constitutes an ethical
lapse.
A journalist who fails to disclose his or her financial interest in the subject of a story he
or she is covering has a conflict of interest.
UBS, a bank based in Switzerland, has received a subpoena from the IRS for the bank
records of 52,000 U.S. citizens. The IRS alleges that the U.S. taxpayers hid money in
UBS accounts for the purpose of avoiding paying taxes. UBS had created a program
that recruited tax advisers and their clients under the guise that they could protect their
funds from the IRS.
Swiss law prohibits banks, under privacy rights, from disclosing information about their
customers and their accounts. However, the IRS has obtained a subpoena for the records
and a federal judge has issued it because UBS is soliciting business in the United States.
One banking minister in Switzerland has indicated, however, that Swiss privacy laws do
not apply when there has been fraud.
Evaluate the ethics of UBS as well as their customers. If you worked for the bank,
would you release the information? Would you place your money in Swiss accounts?
Having loan applicants pay for the expenses of bank officer travel for purposes of
evaluating collateral is not a conflict of interest.
Royal Dutch’s share price was not affected by its restatement of its reserves.
Stakeholders include employees and customers.
A physician conducting a study on a new prescription drug manufactured by a firm in
which he is a 10% shareholder does not have a conflict of interest so long as his stock
ownership is disclosed in his report on the drug.
Using co-workers to give your supervisor the impression that you are in the office is not
an ethical issue.
The Red Cross CEO resigned in protest over the use of Red Cross funds.
If an employee can return to work, there is not a lost work day even if the employee is
on a stretcher.
Fabrice Tourre was aware that the CDO market was going to crash.
The United States Declaration of Independence is grounded in natural law.
All damage cases from the Valdez spill are settled.
Attending a class on company time would be unethical.
Italy’s freeway system has not been completed despite billions in funding.
There are not ethical issues in the use of child labor if the children’s families approve of
their jobs.
Explain the process prosecutors use to obtain guilty pleas and convictions among the
high executive ranks of a company for financial fraud.
Kant and Rand do not agree on the importance of self-interest in ethical theory.
Bankruptcies are on the increase.