
2. Congress should also pass laws to regulate schools in the same way that Sarbanes-Oxley
regulates corporations. Schools could use such regulations to prevent cheating and bullying, and to
3. The Opening Case at the beginning of this chapter discusses how shareholders are
victimized by financial trends sometimes prompted by rumor, innuendo, and lies. Many of these rumors
are generated by the media. Unfortunately, Congress cannot shield stockholders from the media
Questions for Review and Discussion
1. Associative corporativism prospers when innovative people take risks. Risk takers employ one of
three positions. The risk taker may be an inventor or entrepreneur with a new idea, an original product,
or an innovative business technique. A second risk taker is the investor who is willing to put his or her
capital into a venture that may or may not reap dividends. The final risk takers are the managers
themselves, that is, those individuals who are willing to take a chance as the directors and officers of a
corporation. In order to be effective, corporate risk takers must avoid the central pitfall of associate
corporativism, that is, the tendency of a corporate system to move from a simple and direct hands-on