Which of the following best describes Craigslist’s liability for content on its site?
a. It is liable for any criminal activity that results from posting on its site
b. It does not have an obligation to remove ads that involve criminal activity
c. It must screen all ads
d. None of the above
How much money had Intel spent developing the Pentium chip?
a. $150 million
b. $500 million
c. $600 million
d. $1 billion
What explanation did Krispy Kreme offer for not meeting its earnings targets in 2004?
a. The Atkins Diet craze
b. A change in accounting that was required by the SEC
c. A change in leadership
d. A change in the franchise structure of the company
Who named BP the world’s most admired company?
a. Fortune
b. Business Ethics
c. Business Week
d. Forbes
Which director had a conflict of interest in his acceptance of a broker’s fee for a Tyco
acquisition?
a. Mark Swartz
b. Patricia Prue
c. Frank E. Walsh
d. Mark Belnick
Which of the following individuals knew nothing about Bernie Madoff’s Ponzi scheme?
a. Frank DiPascali
b. Harry Markopolos
c. The SEC
d. All of the above knew about his Ponzi scheme
In which stage of the regulatory cycle do scientific studies document an evolving issue?
a. Latency
b. Awareness
c. Activism
d. Regulation/litigation
You had quite a night last night of partying. Because of excessive drinking, you are
unable to get to work today. When you call your supervisor you:
a. Should just say you have the flu.
b. Should just say you are sick.
c. Should disclose the prior night’s activity.
d. None of the above
What was the allegation made about HGTV’s “House Hunter” show?
a. That the houses were not really for sale
b. That substitute actors were used for actual homeowners
c. That the prices on the homes were changed
d. That the buyers never closed the deals
What did Intel discover when it ran tests on the Pentium chip?
a. That it would make an error once every 27,000 years
b. That the chance of an error was one in 9 billion
c. That the floating point error problem was not one that required attention
d. a and b only
e. a, b and c
What was WorldCom’s risk in relation to Mr. Ebbers’ personal loans?
a. Ebbers had conflicting business interests with WorldCom
b. Embarrassment if the CEO did not repay his loans
c. Loss of company control through creditor foreclosure on Ebbers’ pledged shares
d. The increase in the share price
What happened to Cliff Baxter?
a. He was convicted of all charges
b. He was acquitted of all charges
c. He committed suicide
d. Both a and c
What was the issue with the Ice-T Body Count CD?
a. People objected because the lyrics suggested killing police officers
b. The lyrics were obscene
c. The CD was not selling
d. None of the above
Who of the following objected to Mr. Corzine’s risky venture into Greek debt?
a. Edith O’Brien
b. Michael Roseman
c. Michael Stockman
d. Laurie Ferber
An application for graduate school admission at Arizona State University includes the
following request for information:
Please list all institutions attended since graduation from high school.
Marie Davis, a returning student, is applying for admissions to the Masters in
Architecture program. Marie attended the University of Arizona for one semester in
1976. Marie had a substance abuse problem and did not attend many of her classes. She
left the University of Arizona before classes ended that semester. She did not take her
final exams and earned 15 credit hours of “E” for that semester. After 8 years, the policy
of the University of Arizona is to expunge the records of non-matriculating students.
Marie’s record was expunged in December 1994.
a. Marie need not disclose her attendance at the University of Arizona.
b. Marie should disclose her attendance at the University of Arizona.
c. Since Marie did not matriculate according to the University, she did not attend the
University of Arizona.
d. None of the above
Who was criticized for being “colored by naivet and impractical ideals”?
a. Charles Jones
b. John Lavery
c. Jerome LiCari
d. Nils Hoyvald
Which earnings management tool did WorldCom use?
a. Transactional earnings management
b. Materiality
c. Reserves
d. Both a and c
e. Both a and b
f. a, b, and c
What types of ethical issues occur at the individual level?
a. Inflated travel expenses
b. Falsification of financial statements
c. Gray area activities
d. Cheating on exams
Into which of the following categories do patent and copyright infringement fall?
a. Conflict of interest
b. Balancing ethical dilemmas
c. Organizational abuse
d. Interpersonal abuse
e. Taking things that don”t belong to you
As a result of the Welch divorce, what happened at GE?
a. GE was fined by the SEC for failure to disclose all of Mr. Welch’s compensation
b. Nothing, GE was not affected by this personal matter
c. GE terminated Welch as a consultant
d. GE hired a lawyer for Welch
Who said he would “recommend him (Gadams) for almost any administrative position
he wishes to pursue”?
a. Gilbert Rossette
b. Richard Cole
c. Gary Rice
d. David Malcolm
Which of the following’s views is aligned most closely with the inherence school of
social responsibility?
a. Milton Friedman
b. Anita Roddick of the Body Shop
c. Ben & Jerry
d. Both b and c
e. None of the above
What defense did Jerome Kerviel, Joseph Jett, and Nick Leeson share?
a. That their managers were aware of their trades and how they were making money
b. That they had not been properly trained
c. That they were ordered to do what they did
d. That they were not subject to securities laws
What was the problem with the research and resulting publication on aspirin resistance?
a. The researchers had falsified the data
b. The researchers had received funding from pharmaceutical companies that sold drugs
to aspirin resistant patients
c. The researchers owned stock in the pharmaceutical companies that sold drugs to
aspirin resistant patients
d. The researchers owned stock in the companies that produced aspirin
Why was it important for ASCAP to confront the children’s summer camps on the use
of members’ songs without license arrangements?
a. ASCAP members stand to lose their copyright if they do not control use
b. ASCAP members simply wanted the royalty payments
c. ASCAP members did not want their songs used at camps
d. Both b and c
Who said, “All sensible businessmen prefer to be truthful, but they seldom feel inclined
to tell the whole truth”?
a. Marjorie Kelly
b. Adam Smith
c. Michael Novak
d. Albert Carr
Which of the following would be a breach of trust and ethics?
a. Sharing a new product idea with a prospective employer
b. Leaving your current employment for a higher paying job
c. Leaving your current employment for a job with more flexibility
d. Taking the skills you have learned at a current job to a new job
e. All of the above are breaches of trust and ethics
Who of the following did business with Enron?
a. Ken Lay’s son
b. Ken Lay’s sister
c. Both a and b
d. Neither a nor b
Which of the following was a characteristic of the culture at Galleon?
a. It was open and transparent
b. Mr. Rajaratnam was a difficult and demeaning boss
c. It had a good compliance program
d. It had training on insider training
What is Chase’s policy on pay-day loans?
a. Chase makes the loans after full disclosure
b. Chase is re-examining allowing pay-day lenders access to customers’ checking
accounts
c. Chase is the number one pay-day lender in the United States
d. Chase refuses to make withdrawals for pay-day lenders
Which of the following is NOT an example of an express warranty?
a. “This toothpaste makes teeth the whitest around.”
b. “This water heater holds 50 gallons.”
c. “Preshrunk jeans”
d. “This jacket is lined.”
What did the GM internal memo estimate the cost of the exploding gas tanks would be
to GM?
a. $2.40 per car
b. The memo did not do that analysis because it did not put a value on human life
c. GM had learned from the Ford Pinto case and did not have such a memo
d. $200,000 per car
Who sold blocks of Enron stock in August and September 2001?
a. Jeffrey Skilling
b. Ken Lay
c. Both a and b
d. Neither a nor b
AES’s solution to the increasing demands of the Kazakh government was:
a. To lease generators.
b. To make facilitation payments to government officials.
c. To offer political donations instead of bribes.
d. To shut down its operations there.
How many people were fired following the Challenger explosion?
a. None
b. One
c. Two
d. Three, including the CEO
The failure to disclose material information in negotiations is an ethical breach.
A major donation by one of your long-term suppliers to a non-profit organization run by
your spouse should not create perception problems so long as your purchasing decisions
are based on the merits.
Dr. Phil Hayes has received an offer of full funding for his research on a new drug
manufactured by Eli Mentin. The drug would be a competitor for Prozac without the
questioned side-effects of possible violent behavior. Eli Mentin has, however, attached
a condition to the funding. That condition is that Dr. Hayes may not publish his findings
until Eli Mentin executives and its attorneys have had the opportunity to review them.
List the ethical issues Dr. Hayes faces with this offer.
You need not disclose in your employment application those positions you held which
will not result in good feedback about you if your supervisors there are contacted.
Describe Dayton-Hudson’s experience with charitable contributions.
Alice is a co-worker who is going through a divorce and has two small children. Alice’s
husband is not paying the child support the temporary court order requires. As a result,
Alice is broke until she can get her court hearing. Alice has been able, through diverting
checks returned to the company, to take about $2200 from the company to “temporarily
help her cover her bills,” as she has explained to you. You must report Alice’s
embezzlement.
Using positive law as an ethical standard means simply compliance with the law.
One of the questions in the Laura Nash model is to examine your intentions in choosing
a particular course of conduct.
The city employee who manages the finances for a football stadium that is a joint
venture between the city and the football team can accept tickets, dinners, and team
clothing items without raising conflicts issues.
If I worked in purchasing in my company, it would be unethical for me to accept season
tickets for my city’s NBA team from the company that has supplied catering for the
company’s training sessions.
With respect to #10, using your work computer and paper to complete the case analyses
would be unethical.
Personality tests violate federal antidiscrimination laws.
Locke and Rawls are contractarians.
If whistleblowers do not have internal avenues for dealing with issues, they will quit or
turn to external avenues.
Prior to working for Kidder Peabody, Joseph Jett was fired from one job and laid off
from another.
Dennis Kozlowski said, “Money is the only way to keep score.” Is this Mr. Kozlowski’s
credo? Discuss how this view might interfere with his ability to analyze ethical issues.
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.