Archives: Quiz

Jane and Phil enter into a contract, but make a bilateral mistake. For the contract to be rescinded by either party, the bilateral mistake must be about a. a material fact. b. value. c. an opinion. d. a prediction. Rice […]

Rolf is an emergency medical technician. Medical personnel such as Rolf are prohibited by state statute from working more than a certain number of consecutive hours. One month, Rolf works more than the legal limit. Rolf can recover for a. […]

Seymour borrows $350,000 from Reliable Bank to buy a home. Seymour stops making payments on the loan ten months later. After the bank repossesses the property securing the loan but before it is sold, Seymour wants to buy it. This […]

Ski Resorts, Inc., wants to add a new run to its facility in a national park on federal land. For this action, an environmental impact statement is a. prohibited. b. required. c. unnecessary. d. voluntary. Wings2Go Corporation fails to hold […]

Sparky offers Teodora $1,000 for her collection of rare coins. She accepts. If a dispute arises, a court would likely a. enforce the deal after questioning the adequacy of consideration. b. not question the adequacy of the consideration. c. rewrite […]

Larceny relies on fear and force. Marvin is a very good businessman. He starts Marvin’s Bike Company in the small town of Wheatland, South Dakota. There is one other bike store in Wheatland. Through good business management, Marvin’s Bike Company […]

A false impression, unlike lying, is not an ethical violation. Mr. Ebbers was a Sunday School teacher at his Hattiesburg, Mississippi church. Answer: T The SEC failed to pass the shareholder say-on-pay regulation. Answer: F John Rawls is a contractarian. […]

If whistleblowers do not have internal avenues for dealing with issues, they will quit or turn to external avenues. Alcohol ads carry the additional issues of safety for the users. Answer: T Goldman was originally founded as a partnership. Answer: […]

A real estate agent who recommends a management firm to an apartment complex buyer without disclosing that the agent owns 50% of the firm has committed an ethical violation. What factors contribute to the failure in necessary confrontation? Answer: Students […]

Slotting fees can lead to under-the-table payments to individuals. Executive compensation increases are often awarded despite stock performance. Answer: T The subprime market did not begin until 2007. Answer: F Slotting fees are legal. Answer: Answer: T If the earnings […]

You work for a construction firm that is submitting a bid for the construction of a new company headquarters building for Smithco. A friend you have known since high school works in Smithco’s capital budgeting area and has full knowledge […]

Discuss the dangers in earnings management. Kyphon employees sold, sold, sold Kyphon’s products for spinal fracture repairs. One rep took his territory’s sales from $16,000 a month to $200,000 per month in less than a year. Incentive programs do produce […]

Chiquita officials said that they either had to make payments to a mercenary and terrorist group or its employees were in danger. Evaluate the company’s reasoning. If my supervisor asked me to cover for him by lying about his whereabouts, […]

An agreement by an agent to accept a 10% commission from a seller who will sell goods to the agent’s employer is ethical so long as the agent would have chosen that seller anyway. Explain who is affected when dog […]

You are a building inspector for the county. A friend of yours is a plumbing contractor. Under county regulations, all steps in plumbing construction from the initial dig to the final installation of sink and bathroom fixtures requires an inspection […]

Goldman did not pay a fine to the SEC. Explain the point George Lefcoe was making with his experience with the hams as gifts. Answer: Professor Lefcoe was trying to show that we have gradual slippage on ethics as we […]

It would not be unethical to continue interviewing for positions after you have already accepted employment with a particular firm. The mayor owns property next to one of the proposed sites for the city’s new baseball stadium. The mayor has […]

Tylenol’s competitors were able to win customers when Tylenol’s quality control problem was revealed. Both Kozlowski and Tyco were generous in their philanthropic activities. Answer: T Taking advantage of a party in a contract situation due to the party’s inexperience, […]

The withholding of material information in a contract relationship is an ethical issue as well as misrepresentation. Hilton was under intense financial pressure at the time it hired former Starwood employees. Answer: T List the factors that determine the tone […]

Alice is a secretary in your department. Alice is also a member of the American Guild of Organists. Alice has been placed in charge of the Guild’s national convention. Each time you pass by Alice’s desk or go to her […]

To whom did the internal auditor at WorldCom express concerns? a. No one; the head of internal audit was indicted as well b. Scott Sullivan c. Audit committee and the board d. Both b and c Suppose that AmTrain, a […]

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 […]

Who said, “What’s good for me is good for all shareholders”? a. The chairman of General Motors b. Jeff Dachis of Razorfish c. Bill Gates d. Sir Alfred Coke What theories could the parents of a child injured by ingesting […]

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 […]

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. […]

What was a reason for the city of Detroit’s bankruptcy? a. The disparity between the amount due in pension payments and the amount in the fund and coming in b. Payments for gun-related crimes c. The GM pension plan d. […]

The Duke LaCrosse players: a. Were ultimately found guilty of some criminal charges. b. Were exonerated by the North Carolina attorney general. c. Had their charges dropped by Michael Nifong. d. None of the above What happened to the suits […]

Which company had to issue financial restatements because of promotional fees accounting? a. Royal Ahold b. U.S. Foodservice c. K-Mart d. All of the above Who is responsible for the losses at Chase? a. Joseph Jett b. Jerome Kerviel c. […]

Under Sarbanes-Oxley, when must a company file an 8-K? a. Every quarter b. Only when selling stock c. Annually d. Within one day of any changes listed in the statute Which of the following is an effective tool for stopping […]

Who was the key witness against Mr. Sandusky at his trial? a. Joe Paterno b. The Penn State athletic director c. The janitor at the football facilities d. Michael McQueary Which of the following is not considered a stakeholder? a. […]

What happened to the Union Carbide plant in Bhopal? a. Union Carbide still operates it b. Dow acquired Union Carbide and now operates the plant c. The plant has been mothballed d. The Indian government now owns the plant and […]

One newspaper headline, following Prudhoe Bay and the refinery explosion read, “BP = Big Problems for Oil Giant.” Who of the following would feel a connection with the headline test? a. Peter Drucker b. Warren Buffett c. Albert Carr d. […]

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 […]

How low did FINOVA’s share price dip? a. To $1.12 b. To $0.72 c. To $0.24 d. To $0.06 How many candidates were approved for partnership in the year Hopkins was a candidate? a. 7 b. 15 c. 21 d. […]

Which of the following ethical theorists subscribes to self-interest? a. Ayn Rand b. Adam Smith c. Thomas Hobbes d. a and c only e. All of the above Ben Small, a sole practitioner, has just decided to form a law […]

What did Ken Lay do when Bethany McLean was researching Enron? a. Called her editor and asked that she be removed from the story b. Answered all her questions c. Thanked her for Fortune naming Enron one of the 100 […]

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 […]

Warren Buffett is the CEO of: a. Home Depot. b. Berkshire Hathaway. c. Southwest Airlines. d. None of the above Provide the accounting for the following: a. EBITDA is no income b. GAAP is no income c. EBITDA is $4,000,000 […]

What methods do businesses use to obtain minority-owned business status? a. Hold ownerships with a silent minority partner b. Relocate in order to have minority employees c. Use a name that carries minority connotations d. All of the above What […]

How many Jack-in-the-Box customers were affected by the E-Coli poisonings? a. 100 b. 150 c. 300 d. 600 What happened when John Olson issued a skeptical report on Enron? a. He was given a bonus b. He was fired c. […]

Thomas Hobbes felt that we needed strong government control in order to achieve ethical behavior. Labeling infertility surgery as “diagnostic surgery” in order to allow the patient to recover the costs from an insurer is unethical. Answer: T A credo […]

Interrogatories are given under oath. a. True b. False The corporate sentencing guidelines provide a mathematical formula for determination of corporate sentences for crimes. a. True b. False Answer: True If privacy is an important requirement for resolution of a […]

A monopsony is the same thing as a monopoly. a. True b. False Which is a requirement for establishing apparent authority? a. underlying express authority b. an agency agreement c.both a and b d.none of the above Answer: d The […]

Competition among Colgate, Crest, and Aim toothpastes is: a. intrabrand competition. b. interbrand competition. c.controllable through resale price maintenance. d.none of the above Express warranties cannot be disclaimed. a. True b. False Answer: True Directors A and B of a […]

Janet Kennedy has received a letter in the mail from BISA International, a credit card firm. The letter describes the card as follows: “This card is yours for only a small annual fee that is billed to your account. There […]

The Oil Pollution Act creates a trust fund for oil spill cleanup. a. True b. False Which of the following is correct about inpersonamjurisdiction? a. The courts of Missouri would have jurisdiction over the case because Bassett did business on […]

Which of the following terms is not an express warranty? a. “nonskid” b. “nonbreakable” c.”shelled” d.All of the above are express warranties. Under SarbanesOxley, audit committees of publicly held companies’ boards need not be made up of independent members so […]

Under CARD, colleges and universities must: a. disclose financial relationships with the credit card companies. b. provide debt counseling for students. c.limit locations for student solicitation for credit cards. d.do all of these. Which of the following is not an […]

Jane Eyring works for PharmaMeds, Inc.Jane is a physician-scientist who is responsible for running the pilot tests on PharmaMed’s new oral spray medication for individuals with adult onset diabetes. Jane has discovered that if those in the test group do […]

Representative Pete Stark said the following in a speech on the floor of the U.S. House of Representatives, “You”re going to spend it to blow up innocent people if we can get enough kids to grow old enough for you […]