https://uotp.mrooms.net/course/view.php?id=11078
1.An underwater mortgage is not enforceable.
a. True
b. False

2.The Red Cross CEO resigned in protest over the use of Red Cross funds.
a. True
b. False

3.How much were Enron board members paid?
a.
$25,000 per year

b. 

None of the above

c. 

They were not paid

d. 

$3,000,000 per year

4.You work in the finance division of a NYSE company. You have just learned that your supervisor has been using information on quarterly returns, prior to the time they are made public, to trade in the company’s stock. You:
a.
Must report the activity in some way.

b. 

Must confront the supervisor.

c. 

Need not do anything because the SEC will eventually uncover his activities.

d. 

Need not do anything because only officers are prohibited from trading on inside information.

5.FINOVA eventually declared bankruptcy.
a. True
b. False

6.Dennis Kozlowski’s first trial resulted in a hung jury.
a. True
b. False

7.Mr. Ebbers was a Sunday School teacher at his Hattiesburg, Mississippi church.
a. True
b. False

8.Joseph Jett:
a.
Held a Harvard MBA.

b. 

None of the above

c. 

Held his first job at Kidder Peabody.

d. 

Was convicted of securities fraud.

9.Most ethical lapses are sudden and not foreseen.
a. True
b. False

10.There was a fluid transfer of employees between Andersen and Enron.
a. True
b. False

11.Mark-to-market accounting gave corporate officers discretion in reporting earnings.
a. True
b. False

12.Who was the CEO at GE at the time GE owned Kidder Peabody?
a.
Edward Cerullo

b. 

Gary Lynch

c. 

Linda LaPrade

d. 

Jack Welch

13.What auditor practice was stopped by Sarbanes-Oxley?
a.
CPA certification

b. 

Compensation of auditors by their audit clients

c. 

Joint audit and consulting contracts for the same companies

d. 

Auditing the same company for two years in a row

14.Who was trying to have an investigation into Madoff’s operation launched as of 2005?
a.
Congress

b. 

Harry Markopolos

c. 

The SEC

d. 

NASD

15.Circumventing rules in order to get products imported is not covered under the FCPA.
a. True
b. False

16.What did PwC not anticipate in deciding to do business in Russia?
a.
The difficulty of many attempting to use it for money-laundering purposes.

b. 

Both a and b

c. 

The problems with bribes.

d. 

The power of government officials to get information and results.

17.The WorldCom stock frenzy is unique in business history.
a. True
b. False

18.EBITDA is an acronym for:
a.
Earnings before I took depreciation for assets.

b. 

Earnings before interest and taxes decertified by the auditor.

c. 

Earnings before interest and debt adjustments.

d. 

Earnings before interest, taxes, depreciation, amortization.

19.Which of the following was not a Kozlowski expense that Tyco paid for?
a.
A $6,000 shower curtain

b. 

Ice sculptures in Sardinia

c. 

All of the above were Kozlowski expenses paid for by Tyco

d. 

Jimmy Buffett entertainment at Mrs. Kozlowski’s birthday party

20.What are the risks of marketing infant formula in third-world countries?
a.
Customers may mix the powdered formula with bad water.

b. 

Customers may water down the formula.

c. 

Customers cannot afford the formula.

d. 

All of the above

21.Whistleblowers who turn to external avenues for dealing with issues are unethical.
a. True
b. False

22.Loans to corporate executives are now illegal under Sarbanes-Oxley.
a. True
b. False

23.Which of the following is an effective tool for preventing individual ethical lapses?
a.
Internal controls

b. 

All of the above

c. 

Screening

d. 

Ethics training

24.Provide the accounting for the following:

        Operating Revenues:                            $10,000,000
        Nonrecurring, non-operating gain:        $4,000,000
        Nonrecurring, non-operating loss:        $8,000,000
        Operating expenses:                            $6,000,000
a. 

EBITDA is $4,000,000

b. 

GAAP is no income

c. 

None of the above

d. 

EBITDA is no income

25.How many CFOs did Scrushy have at HealthSouth from 1998 through 2003?
a.
Three

b. 

One

c. 

Five

d. 

Four

26.Bribery is a cultural issue and generally not regulated by law.
a. True
b. False

27.How many people were fired following the Challenger explosion?
a.
Three, including the CEO

b. 

None

c. 

Two

d. 

One

28.The HealthSouth board knew very little about the creative accounting at HealthSouth.
a. True
b. False

29.What was Lavery’s first step in dealing with the concentrate issues?
a.
Canceling the contract

b. 

Checking the supplier’s facilities

c. 

None of the above

d. 

Ordering less concentrate

30.When was the Beech-Nut hold-harmless agreement signed?
a.
None of the above

b. 

When the contract with the supplier was first entered into

c. 

After the suspicions about the syrup content of the concentrate

d. 

After the criminal cases

31.What happened to the Union Carbide plant in Bhopal?
a.
The Indian government now owns the plant and produces dry-cell batteries.

b. 

Dow acquired Union Carbide and now operates the plant.

c. 

Union Carbide still operates it.

d. 

The plant has been mothballed.

32.Although you are not part of your company’s engineering group, you have discovered a major flaw in the company’s new paper-thin solar calculator. The calculator adds when the subtract button is pressed if there are more than three figures to the right of the decimal point. Since it is not your area, you should do and say nothing.
a. True
b. False

33.The Red Cross disclosed that 9-11-01 funds would be used for administrative purposes.
a. True
b. False

34.Andrew Fastow’s role as an officer of an SPE was not a conflict of interest.
a. True
b. False

35.What happens under a car title loan?
a.
A default results in the debtor’s loss of ownership in the car

b. 

None of the above

c. 

That as long as the creditor holds the title, the debtor has time to pay without the creditor being able to sell the car

d. 

That no interest is paid until the default

36.UBS had rules that prevented operations employees from trading/client-facing positions.
a. True
b. False

37.What is the length of Mr. Madoff’s sentence?
a.
150 years

b. 

10 years

c. 

18 years

d. 

25 years

38.What do the VA and Atlanta Public School System cases have in common?
a.
Both involved evaluation and compensation based on numeric goals

b. 

Both involved government entities

c. 

All of the above

d. 

Both involved employees trying to alert others to the problems

39.A county commissioner who makes decisions on construction permits and zoning exceptions and approaches a hotel builder to lease space for her clothing store in his new hotel while his application for zoning and construction are pending has done nothing unethical.
a. True
b. False

40.Whistleblowers have both internal and external avenues for dealing with issues.
a. True
b. False