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59) The Sarbanes-Oxley Act of 2002 holds high-ranking corporate officials responsible for the
validity and accuracy of their companies’ financial statements.
60) Under the 1991 Sentencing Guidelines, the culpability score is the greatest of the company’s
gain, the victim’s loss, or a dollar amount corresponding to an offense level.
61) What effect did the erosion of the mens rea requirement have on corporate liability?
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62) What are the arguments against imposing liability on corporations?
63) Why is it difficult to impose liability on corporate executives?
64) Under the 1991 Sentencing Guidelines, what factors affect the fine that the company has to
pay?
65) When Lucine, a health department inspector, comes to inspect Jason’s new restaurant, Jason
offers her a certain sum of money to limit her inspection to the serving area. In doing so, Jason is
committing the crime of ________.
A) larceny
B) criminal fraud
C) embezzlement
D) bribery
66) Which of the following terms refers to a crime where the victim is the corporation that the
criminal works for?
A) strict liability crime
B) embezzlement
C) interbusiness crime
D) intrabusiness crime
67) Which of the following terms refers to the misappropriation of trust funds or money held in a
fiduciary capacity?
A) forgery
B) false pretense
C) defalcation
D) false token
68) Which of the following best defines false pretenses?
A) It is the material altering of anything in writing that, if genuine, might be the foundation of a
legal liability.
B) It is a designed misrepresentation of existing facts or conditions by which a person obtains
another’s money or goods.
C) It is the making of an entry into the books of a bank or corporation that is designed to
represent the existence of funds that do not exist.
D) It is the suppression of a material fact that the person is legally bound to disclose.
69) Elaine, a dealer in antique furniture, falsifies the age of a wooden cabinet when selling it to a
customer and, in the process, charges him more than twice its actual price. In this example, what
fraudulent act has Elaine committed?
A) forgery
B) defalcation
C) false token
D) false pretenses
70) ________ is the material altering of anything in writing that, if genuine, might be the
foundation of a legal liability.
A) Forgery
B) Defalcation
C) False entry
D) Larceny
71) Charlene handles finance and accounts at a technology start-up. She falsifies certain records
so that the company’s assets will appear greater and thereby improve its chances of obtaining a
loan. What crime has Charlene committed?
A) larceny
B) false entries
C) false tokens
D) forgery
72) A private university provides scholarships to students who are immigrants from certain
countries. If Sam, a local resident, alters his documents to make it look like he belongs to one of
these countries, what form of fraud has he committed?
A) defalcation
B) false entry
C) false token
D) bribery
73) The secretive and wrongful taking and carrying away of the personal property of another
with the intent to permanently deprive the rightful owner of its use or possession is known as
________.
A) larceny
B) embezzlement
C) defalcation
D) bribery
74) Which of the following statements is true of larceny?
A) It is carried out by means of false representation.
B) It is carried out by means of fear or force.
C) It is carried out by means of stealth.
D) It is commonly called theft by persons with legal training.
75) Hayako, a successful author, lived in a remote village and had entrusted his agent with the
management of his business affairs. Many years later, it came to light that the agent took over
copyright ownership for many of Hayako’s works and, as a result, made a profit of many millions
of dollars. In this instance, the agent has committed the crime of ________.
A) embezzlement
B) bribery
C) forgery
D) false entry
76) Which of the following statements best defines the term “embezzlement”?
A) It is the secretive and wrongful taking and carrying away of the personal property of another
with the intent to permanently deprive the rightful owner of its use or possession.
B) It is the intentional use of some sort of misrepresentation to gain an advantage over another
person.
C) It is the wrongful conversion of the property of another by one who is lawfully in possession
of that property.
D) It is the offering, giving, soliciting, or receiving of money or any object of value for the
purpose of influencing a person’s action.
77) Which of the following is an example of embezzlement?
A) A pharmaceutical company markets a drug which contains untested compounds.
B) A storeowner hands money to a criminal at gunpoint.
C) A cashier takes a small amount of money from the cash register each day.
D) An art dealer quotes a highly inflated price to unsuspecting buyers.
78) A ________ is a program that travels from one computer to another but does not attach itself
to the operating system of the computer it infects.
A) worm
B) virus
C) Trojan horse
D) bot
79) Which of the following is true of the differences between worms and viruses?
A) Worms attach themselves to the operating system of a computer, whereas viruses do not.
B) Viruses attach themselves to the operating system of a computer, whereas worms do not.
C) The software programs designed to detect viruses are reactive, whereas those designed to
detect worms are proactive.
D) The software programs designed to detect worms are reactive, whereas those designed to
detect viruses are proactive.
80) Defalcation is the material altering of anything in writing that, if genuine, might be the
foundation of a legal liability.
81) Larceny is carried out by means of fear, force, or false representation.
82) Federal employees in the postal service are protected by the Whistleblower Protection Act.
83) Which of the following statements is true of equity fines?
A) The corporation is fined in a manner that is considered just and fair to shareholders.
B) The fine is determined in accordance with criminal sentencing guidelines issued by a court of
equity.
C) The corporation pays the fine in the form of stock to a victim’s compensation fund.
D) The fine absolves corporate managers of all responsibility.
84) Which of the following is a remedy for ineffective monitoring by agencies?
A) replacing federal chartering of corporations with state chartering
B) encouraging greater use of the nolo contendere plea
C) eliminating the imposition of equity fines
D) increasing the operating budgets of regulatory agencies
85) For the past six months, Julia has been using her video arcade as a front to operate a series of
illegal gambling operations. She stays out of trouble by paying local law enforcement officials a
certain amount of money every week. Julia is violating the ________.
A) Racketeer Influenced and Corrupt Organizations Act
B) Sarbanes-Oxley Act
C) False Claims Act
D) Homeland Security Act
86) Under the ________, private citizens can sue employers on behalf of the government for
fraud against the government.
A) Sarbanes-Oxley Act
B) Racketeer Influenced and Corrupt Organizations Act
C) False Claims Act
D) Whistleblower Protection Act
87) Which of the following statements is true of the False Claims Act?
A) Private citizens may sue employers on behalf of the government for fraud against the
government.
B) Private citizens may sue employers on behalf of the government for misrepresentation of a
government employee.
C) The government may sue employers for fraud against a private citizen.
D) The government may sue employers for fraud against a government official.
88) Under the ________, a successful party may receive 25 percent of the amount recovered if
the government chooses to intervene in the action, or 30 percent if the government does not
participate in the suit.
A) False Claims Act
B) Sarbanes-Oxley Act
C) Whistleblower Protection Act
D) Homeland Security Act
89) Which of the following statements is true about the Sarbanes-Oxley Act of 2002?
A) It offers protection to federal employees who report illegal governmental activities.
B) It seeks to eliminate the conflicts of interest that can lead to fraudulent activity.
C) It prohibits persons employed by or associated with an enterprise from engaging in
racketeering activity.
D) It lets private citizens sue employers on behalf of the government for fraud against the
government.
90) Karen, an employee at a large multinational organization, learned that the palm oil being
imported by her company was resulting in large amounts of illegal deforestation. If Karen
decides to blow the whistle on the organization and go public with this information, she will be
protected from being fired, demoted, or otherwise discriminated against at the workplace by the
provisions in the ________.
A) Glass-Steagall Act
B) Racketeer Influenced and Corrupt Organizations Act
C) False Claims Act
D) Sarbanes-Oxley Act
91) Which of the following is a characteristic of the Sarbanes-Oxley Act of 2002?
A) It offers protection to employees who act as whistleblowers.
B) It allows any person to recover treble damages plus attorney’s fees in a civil action.
C) It prohibits persons employed by or associated with an enterprise from engaging in white-
collar crimes or acts of violence.
D) It offers protection to federal employees who report illegal governmental activities.
92) Under the False Claims Act, private citizens may sue employers on behalf of the government
for fraud against the government.
93) The Racketeer Influenced and Corrupt Organization Act was originally enacted to help fight
government corruption.
94) The Whistleblower Protection Act offers protection to the vast majority of federal executive-
branch employees.
95) What are the arguments for and against the extensive use of the Racketeer Influenced and
Corrupt Organizations Act (RICO)?
96) Compare and contrast the Sarbanes-Oxley Act and the Whistleblower Protection Act.
97) The Convention on Cybercrime paved the way for international rules governing ________.
A) corporate liability
B) copyright infringement
C) the protection of free speech
D) Internet advertising
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98) White collar crime is a problem unique to the United States.
99) Improvements in technology have increased the amount of white-collar crime on a
worldwide scale by creating more opportunities for skilled employees to commit such crime.
100) The United States has not yet ratified the Convention on Cybercrime.