What happened to Hopkins?
a. She was approved for partnership
b. She was put on hold for partnership
c. She was denied partnership
d. None of the above
The definition of “stakeholder”:
a. Is precise and definitive.
b. Is very limited.
c. Is not yet completed.
d. Was developed by Milton Friedman.
e. None of the above
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
What tobacco company is known for its phenomenal atmosphere for diversity?
a. RJR
b. Philip Morris
c. Camel
d. None of the above
Which of the following does the mountain climb represent in the “Parable of the
Sadhu”?
a. The struggle to achieve in business
b. The nature of interest rates
c. The Sadhu’s home
d. The international nature of business
e. None of the above
Who eventually raised concerns about the documents at Boeing?
a. The CEO
b. A project specialist
c. Erskine
d. Lockheed Martin employees
How many schools was Gadams employed at prior to Livingston?
a. Three
b. Two
c. Four
d. None of the above
Where in the regulatory cycle would you place text messaging?
a. Latency
b. Awareness
c. Activism
d. Regulation/Litigation
Medical Purchasing Agents (MPC) is a company that represents groups of hospitals as
their agents for purchasing medical supplies. MPC is able to obtain discounts for the
hospital group because of their sheer volume needs when they are grouped together.
MPC’s CEO, CFO and general counsel own 51% of the stock of a company called
Medi-Pump. Medi-Pump is the sole supplier to the hospitals for feeding pumps, IV
pumps and other forms of hi-tech medical pumps and supplies. MPC has negotiated a
low-cost supply contract from Medi-Pump to the hospitals. MPC:
a. Has served its customers well with the Medi-Pump contract.
b. Has a conflict because of its ownership of Medi-Pump.
c. Cannot have a conflict so long as the Medi-Pump price is lowest.
d. Cannot have a conflict because it represents groups of hospitals.
e. None of the above
Under the Blanchard/Peale model, which of the following statements is correct?
a. If it’s legal, it’s ethical.
b. If it’s illegal, it’s unethical.
c. If it’s balanced, even if it is illegal, it is ethical.
d. None of the above
What was Jeffrey Skilling’s opinion of Jim Chanos?
a. That he was insightful
b. That he would like to hire him
c. That he was an “a**hole”
d. Both a and b
Why did Burger King want a test market?
a. The product was new
b. Its marketing campaigns recently had been disasters
c. It did not trust Coke
d. Both a and b
e. a, b and c
Who first raised the issue of cigarette advertising directed at children?
a. U.S. Surgeon General
b. FTC
c. AMA
d. None of the above
Who said, “I wish on my kids’ lives I would have stepped up and walked away from the
table that day”?
a. Sherron Watkins
b. Andrew Fastow
c. Paula Reiker
d. David Delainey
Stephen Ambrose, a popular historian with many books to his credit, admitted that some
segments of one of his recent books had language taken from the books of other
historians that was not in quotes. Mr. Ambrose did footnote the work of authors he
relied upon in doing his book.
a. The work of an author is protected by copyright laws.
b. The use of quotes without attribution is not a violation of the law.
c. The use of the material is fair use and need not be footnoted.
d. Both b and c
e. None of the above
Which of the following is an effective tool for preventing individual ethical lapses?
a. Ethics training
b. Screening
c. Internal controls
d. All of the above
The conflicting values in the Time Warner Ice-T case are:
a. First Amendment rights and duty of business to its larger community.
b. Conflicts of interest and personal honesty.
c. There were no conflicting values because everyone agreed with Time Warner.
d. Purchasing conflicts and investments.
e. None of the above
When was the hold-harmless agreement signed?
a. After the suspicions about the syrup content of the concentrate
b. When the contract with the supplier was first entered into
c. After the criminal cases
d. None of the above
What problem did Claremont McKenna encounter that resulted in national headlines
about the school?
a. It was allowing law students to attend review courses
b. It was allowing law students to use application consultants
c. It was increasing its SAT score averages above what they actually were
d. There was no problem except a rogue admissions officer
The MMS had investigations of which two divisions?
a. DC and Colorado
b. DC and Louisiana
c. Colorado and Louisiana
d. Colorado only
What issue affects farmers’ markets?
a. Outbreaks of Salmonella, E-Coli, and Hepatitis
b. That their growth is cutting grocery margins
c. That new federal regulations apply to them
d. None of the above
What was Jett’s penalty for his actions at Kidder Peabody?
a. He was sentenced to federal prison for 5 years
b. He was banished from the securities business for life
c. He was required to repay Kidder all the money he lost
d. Both a and c
What was branded in the brains of Fannie Mae employees?
a. That ethics and integrity are critical to Fannie Mae’s success
b. 6.46
c. Compliance with SOX requirements
d. Diversity
A professor asked a student, “Did you have a chance to look at the reading?” The
student responded, “Yes.” The professor commended the student for keeping up with
assignments in the course and awarded participation points to the student. The student
had, in fact, looked at the reading, but he had not actually done the reading. “Hey, he
just asked me if I had a chance to look at the reading, and I told the truth.” The student:
a. Has not committed an ethical violation.
b. Has given or allowed a false impression.
c. Is to be commended for finding a loophole.
d. Both a and b
What industry practice had BP failed to follow for its Prudhoe Bay pipeline
maintenance?
a. Smart-pigging
b. Pipe flow tests
c. Pipe inspections
d. BP did all of the above
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
When did Boeing employees first see Lockheed Martin’s proposed bid for the project?
a. During the interview with the Lockheed Martin employee
b. After hiring the former Lockheed Martin employee
c. After they asked for the documents from the former Lockheed Martin employee
d. Boeing employees never did see the proposed bid
When is it legal under federal law to sell a product that tastes like apple juice but is not
apple juice?
a. There is no such provision under federal law
b. When the label discloses that the product is not real apple juice
c. When the company is not generally a seller of apple juice
d. None of the above
Who is Lavery?
a. CEO of Beech-Nut
b. Plant manager for Beech-Nut
c. Employee in Beech-Nut’s purchasing department
d. Director of Research and Development for Beech-Nut Nutrition
A covenant not to compete is enforceable against an employee (except in California and
North Dakota) if:
a. It is filed as a public record.
b. It is reasonable in time and geographic scope.
c. It is no longer than six months.
d. It is entered into under threat of termination.
What was the original verdict against GM in the LA Malibu case?
a. $1.2 billion
b. $2 billion
c. $4.9 billion
d. $5.0 billion
In the Darlene Druyun/Boeing case, what laws were violated?
a. Federal procurement statutes
b. Antitrust laws
c. Federal securities laws
d. Both a and b
Ms. Baridis compared herself to:
a. Michael Milken.
b. Darlene Druyun.
c. Harry Stonecipher.
d. Jose Canseco.
Who was held personally liable to WorldCom shareholders for their losses?
a. NASDAQ
b. The SEC
c. WorldCom board members
d. Jack Grubman
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.
Acting in one’s own self-interest is a description of ethical egoism.
It is unethical to introduce a product with deceptively similar packaging to that of a
major competitor.
A newspaper reporter is interviewing you about your experiences in working for a
member of Congress. You have indicated you have information about his private life
but will not share it. The reporter responds, “Tell me, just between you and me.” You
share the information and a quote from you on the private life of the member of
Congress appears in the newspaper the next day. The reporter was unethical in violating
a trust.
The use of secret rooms for sales transactions by knock-off goods sellers:
a. Eliminates the damage to the brand.
b. Is not trademark infringement if it is not done in public.
c. Has been effective in reducing the size of the knock-off markets.
d. None of the above
A company can be relieved of its pension obligations in bankruptcy.
Whistleblowers who turn to external avenues for dealing with issues are unethical.
No HealthSouth board members did business with Scrushy or HealthSouth.
Professor Dan Ariely’s work focuses on the impact of stepping outside ethical norms.
The duty of loyalty between employee and employer makes whistle-blowing unethical
per se.
Ayn Rand and Thomas Hobbes were proponents of ethical egoism.
The failure to disclose a current employee’s conduct that resulted in dismissal and harm
to a prospective employer is a breach of ethics.
Define wi-fi piggybacking and explain why it is an ethical issue.
Using the MLB steroids case as an example, explain how unethical choices by some
players harms players who comply with the rules.
Henry Rauzi, the controller for Sunbeam, issued an offer to Linda Croce for an
entry-level accounting position at Sunbeam at a salary of $34,000 per year. Ms. Croce
accepted the offer and gave notice to her employer. When then-CEO of Sunbeam, Paul
Kazarian, was informed of the offer, he demanded that Mr. Rauzi rescind it because
Kazarian had not approved it prior to it being made. Mr. Rauzi called Ms. Croce at
10:00 P.M. three days before she was scheduled to being work and told her of Mr.
Kazarian’s action. Ms. Croce had no job and remained unemployed for several months
while she searched for a new job.
Evaluate the legality and ethics of Sunbeam’s officer’s actions with respect to Ms.
Croce.
The cost of options must be accounted for in the company’s revenue statements.
List three effects the Bhopal disaster had on Union Carbide.
Susan is interviewing for a position in purchasing with a major international retailer.
Susan would like to go into consulting and sees this job, if she gets it, as experience for
joining a consulting firm in 2-3 years. The interviewer asks Susan, “Where do you see
yourself in five years?” Susan replies, “Working here”and I probably would have
moved up to head one area of purchasing.” Evaluate Susan’s response, considering
ethical categories and applying the readings from Unit 2.
No employees at WorldCom raised any objections to the accounting practices.
Evaluate Yahoo’s decision to do business in China through a partially owned subsidiary.