Quiz

LGST 47115

Page Count
15 pages
Word Count
3003 words
Book Title
Business Ethics: Case Studies and Selected Readings 8th Edition
Authors
Marianne M. Jennings
Which of the following is prohibited conduct with respect to stock options?
a. Backdating
b. Backdating with limitations
c. Springloading
d. All of the above
Where are most cruise companies paying taxes?
a. United States
b. United Kingdom
c. Bahamas
d. None of the above
Because of advertising campaigns, with which of the following did children have equal
familiarity?
a. Mickey Mouse and Joe Camel
b. Mickey Mouse and the Kool Penguin
c. Mickey Mouse and the Marlboro Man
d. None of the above
What was the Wrigley company's concern in the use of Skittles in honoring Trayvon
Martin?
a. That the company would be associated with murder
b. That it would be perceived as capitalizing on the death of a teen
c. That its brand would suffer
d. None of the above
How much did Enron's creditors receive?
a. Nothing
b. 18.3 cents on the dollar
c. 50 cents on the dollar
d. None of the above
An ad contains the following: "Restaurant Critic, Jose Winfrey, on Mama Leone's
Italian Eatery," Mama Leone's is simply the best. It is a surprising new entrant into the
competitive Italian bistro market and it is a mighty one."" Jose Winfrey is the cousin of
the owner of Mama Leone's and knows restaurants, but is not a critic for any
publication or other media outlet. The ad:
a. Creates a false impression.
b. Raises no ethical questions.
c. Is legal and ethical because it doesn"t state where he is a critic.
d. Both b and c
e. None of the above
Which of the following accounting techniques did Tyco use?
a. Spring-loading
b. Inventory valuation changes
c. Materiality
d. Both a and b
e. a, b, and c
Who reminded employees of Andersen's document destruction policy?
a. David Duncan
b. Benjamin Neuhausen, the standards partner
c. Nancy Templeton, the Andersen lawyer
d. The SEC
Who in the following list did not declare bankruptcy?
a. Burt Reynolds
b. Billy Joel
c. Lisa Lopes
d. All of the above declared bankruptcy
Soft charges or anticipated costs:
a. Are a source of cookie jar reserves.
b. Are the same as EBITDA.
c. Are never used in acquisition accounting.
d. All of the above
What impact has the demand for biofuels had in countries like Guatemala?
a. High employment and increasing incomes
b. Introduction of farming technology
c. Lower taxes
d. Less food and higher prices
A company CEO said, "If it's legal, it's ethical. I do nothing more." Into which school of
social responsibility would you place this CEO?
a. Inherence
b. Enlightened self-interest
c. Invisible hand
d. Social responsibility
The North Carolina State Bar:
a. Accepted Mr. Nifong's resignation as DA as sufficient punishment.
b. Disbarred Mr. Nifong.
c. Censured Mr. Nifong.
d. Found no violations of the professional code of ethics by Mr. Nifong.
How were Bausch & Lomb sales affected by its product recall in 2005?
a. Its sales were not affected
b. Sales dropped 28 percent
c. Sales dropped 78 percent
d. None of the above
The subprime loan market infiltrated investment firms:
a. Because financial instruments were tied to mortgage and mortgage value.
b. Because many of the investment firms were subprime lenders.
c. Because investment firms had purchased many mortgages.
d. Both a and c
e. All of the above
Evaluate and compare the actions of LiCari at Beech-Nut and Boisjoly at NASA.
Which of the following lists did Fannie Mae not make?
a. Fortune's Best Companies for Minorities
b. Best Companies for Working Mothers
c. Business Ethics Most Ethical Company in America
d. All of the above
Which of the following is not a stage in the regulatory cycle?
a. Awareness
b. Activism
c. Latency
d. Ethical options
e. All of the above are stages
Mary Pickford is an analyst for Munford Stanley, an investment banker. She has touted
the stock, an initial primary offering (IPO), of an obscure biotech firm as a "must buy."
Munford Stanley is the underwriter for the IPO. 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
What was KELP at Tyco?
a. The name for its acquisition program
b. The subsidiary that developed off-shore properties
c. The officer loan program
d. None of the above
A professor for one of your courses has assigned reading materials from various
publications. He tells you that the materials are on reserve and that each student should
go and copy the materials individually. He notes that for him to copy the materials for
students and then sell them or distribute them would be a violation of copyright law.
The professor's conduct:
a. Is unethical and violates copyright law as well.
b. Is something everyone does and is accepted behavior.
c. Does not really harm anyone.
d. Is acceptable in an academic setting.
In the Bank of America case, former general counsel Timothy Mayopoulos was meeting
with the Board of Bank of America:
a. Because SOX requires that counsel report up to the board.
b. Because SOX prohibited him from meeting with the CFO.
c. Because outside counsel was not permitted to meet with the board.
d. Because the SEC required him to do so.
Jeff Sanders, head of finance for Components, Inc. has just interviewed Laura Dern, an
employee from the finance department of InChip, Components' chief competitor. Laura
has explained that she has been passed over one too many times for a promotion at
InChip and is thus in the job market. As Laura is leaving she whispers to Jeff, "Look, I
have no contract at InChip that obligates me in anyway. I can begin immediately.
Further, I have been able to obtain copies of our newest computer chip designs. You"ll
have them before InChip even begins production."
a. Jeff should hire Laura on the spot without any worries about ethical breaches since
Laura is not under contract.
b. Jeff's hiring of Laura may constitute an ethical breach, but would not constitute
illegal conduct.
c. Jeff should not hire Laura, and must analyze the issue of whether to disclose Laura's
conduct to InChip.
d. Jeff should not hire Laura and need not worry about Laura's conduct and its impact
on InChip.
What did Hughie Elbert Stover do at the Upper Big Branch mine that resulted in
criminal charges against him and Massey Coal?
a. He took federal mine inspectors on tours that avoided certain areas
b. He instructed others to destroy mine document records
c. He trained security guards to provide warnings over the radio about the presence of
federal mine inspectors
d. All of the above
Who was fired when the company and government learned of the use of the Lockheed
Martin documents?
a. The former Lockheed Martin employee who brought the documents
b. The supervisor who knew of the use of the documents
c. The employee who reported the document use
d. Both a and b
What would be the final merger for WorldCom?
a. CompuServe
b. GTE
c. MCI
d. Sprint
Who is the lead character and author of the article, "The Parable of the Sadhu"?
a. Stephen
b. The Sadhu
c. Bowen McCoy
d. The author is never named
How much of the lost money at MF Global did investors receive back in the
bankruptcy?
a. Between 12 and 42 cents per dollar
b. Between 75 and 93 cents per dollar
c. Nothing, the liquidation brought no cash
d. 50% of their original investment
What was the impact of the Community Reinvestment Act on Fannie Mae?
a. It had to stop purchasing mortgage loans.
b. It could only purchase loans that were not high credit risks.
c. It enabled Fannie Mae to expand its portfolio substantially.
d. None of the above
Who is Gilbert Rossette?
a. A teacher accused of molesting junior high students
b. Head of California State Board of Education
c. A professor at Fresno Pacific College
d. An official at Mendota Unified School District
You are a sales associate with a large department store chain. You have noticed that a
fellow sales associate has been taking high-ticket items home with her. You have
checked the sales records and she has not been paying for the items. You should:
a. Ignore the conduct because it is not your business.
b. Ignore the conduct because she will be caught eventually.
c. Confront her with your knowledge.
d. Report her conduct to the police.
A group of Wachovia (now part of Wells Fargo) customers filed a class action lawsuit
against Wachovia Bank because fraudulent telemarketers had taken money from their
accounts and that the telemarketers did so with the knowledge of bank executives who
were aware of the fraud but did nothing to stop it. Banks executives insisted that they
knew nothing about the thefts. However, internal e-mails released during discovery in
the case showed that executives were discussing the frauds and providing warnings.
"YIKES!!!!"
"DOUBLE YIKES!!!!"
"There is more, but nothing more that I want to put into a note."
Warning from a Wachovia bank executive to colleagues that the bank had received
4,500 complaints of fraud in two months from customers who had been fleeced of $400
million by marketing firms who paid the bank large fees for access and on returned
checks.
"We are making a ton of money from them."
What test for resolving ethical dilemmas would have helped the executives at Wachovia
reach a better decision as they debated the issue on their e-mails?
a. "I was just following orders."
b. "This doesn"t really hurt anyone."
c. The Front-Page-of-the-Newspaper Test
d. "It's a gray area."
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.
Selling products banned from sale in the United States in other countries is not an
ethical violation.
The "Parable of the Sadhu" is an essay in support of the theory of survival of the fittest.
MF Global used customer funds for hedging activity.
Both the director of general accounting and the controller at WorldCom were
comfortable with capitalizing ordinary expenses.
Hiring an employee from a competitor firm who has brought with her proprietary
information is ethical so long as the employee has not breached an employment contract
with that competitor.
Accepting gifts from suppliers and vendors is not a problem so long as no bid decisions
are pending.
A purchasing agent whose daughter works for a supplier has a conflict of interest.
Kant would label paying lower wages in developing countries than the wages paid in
developed economies as unethical.
In the story of the "Parable of the Sadhu," the author never helped the Sadhu.
Laura Nash does not see any purpose in examining how an ethical dilemma occurs.
A group of food retailers and manufacturers banded together to self-regulate their ads,
particularly on the Internet, for their products. Discuss why the manufacturers and
retailers would make such a joint agreement?
Most ethical lapses are sudden and not foreseen.
Your supervisor has told you that he wants to "get rid of Jane." Jane is a Hispanic
female co-worker who is very bright and capable and hardworking. Your supervisor has
asked you to document everything Jane does and says that will help build a case for
termination. You should do as your supervisor tells you.
How would you describe Adelphia's treatment of its stakeholders?
Attending a class on company time would be unethical.
Why does the DEA want to revoke the licenses of several drug store chains to issue
controlled substances medications?
a. There are too many pharmacies in Florida
b. The chains failed to establish adequate internal controls for dispensation of controlled
substances
d. The chains failed to submit proper paperwork for licensing
d. Both b and c
When Enron first proposed its off-the-book entities, David Duncan clearly had
concerns. Discuss what he did about those concerns.
Former-President George W. Bush has proposed reforming Social Security by asking
those from ages 18-40 to forego their social security and invest their own funds in a
retirement/pension plan. What ethical theory most applies to this proposal?
The American Medical Association has taken no position on doctors accepting perks
from pharmaceutical companies.

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