51. Which of the following was an employee complaint in the Enron case?
a. At the same time top executives were selling their stock, the same executives were
encouraging employees to buy the stock.
b. During the period of the stock’s collapse, Enron employees were encouraged to sell
c. While top executives were buying stock in the company, they were encouraging
employees to sell their stocks.
d. Top management was encouraging employees to hold their stocks because they felt the
stock would rebound.
52. Which of the following is a moral basis for disclosure of corporate information?
a. Each person has the right to know those actions of others that could benefit him.
b. Each person has the right to any information about a company he desires.
c. Each person has the right to enter a transaction fairly and thus is required to inform
others of his intent.
d. Each person has the right to know those actions of others that will serious and
adversely affect him.
53. XXXXX XXXXX was charged with which of the following?
a. Making an insider trade
b. Lying in connection with making an alleged insider trade
c. Failing to disclose the financial position of her company
d. Obstructing justice by not providing proper documentation of workplace safety
54. In the Diamond Shamrock and Occidental Petroleum Corporation deal, which of the following
best describes the actions of Ivan Boesky and Michael Milken?
a. They shared inside information with intent to make a significant profit, but because of
actions that neither foresaw, they lost money.
b. They shared inside information with the intent to make significant profit, but were
found out and thus doomed the deal.
c. They traded inside information with intent to make significant profit, and, after the deal
went through, both made substantial profits.
d. They traded insider information with intent to make significant profit, but decided that
it was improper and so did not take advantage of the information.
55. At its height, the compensation of top executives at large companies was, on average, how
much higher than the pay of the average worker?
a. 7 times greater
b. 20 times greater
c. Over 700 times greater
d. Over 300 times greater
56. What is the term that refers to compensation given the family of a CEO in the event that he
dies in office?
a. The golden coffin
b. The golden parachute
c. The golden egg
d. The golden will
57. Until Ben Cohen retired as CEO of Ben & Jerry’s, the cap on executive pay was which of the
a. Twenty times that of the average worker
b. Seven times that of the lowest paid worker
c. Fourteen times that of the average worker
d. Fifty times that of the lowest paid worker
58. What is the first step in the assessment of safety?
a. Deciding how much safety is demanded with respect to a particular product or activity
b. Determining how much safety is attainable and how to attain it in a given endeavor
c. Ascertaining whether a particular instance of a product or activity comes up to
standards of safety
59. What is the second step in the assessment of safety?
60. What is the third step in the assessment of safety?
61. Which step in the assessment of safety is a technical question?
d. Deciding who will experience the risk
62. Which step in the assessment of safety involves a question of acceptable risk?
63. Which of the following is a problem with strict liability?
a. Manufacturers are given greater incentive to make their products safer.
b. The company is in the best position to fix a defect in its product.
c. A company has a “deep pocket,” and so is best able to accept the cost of harm.
d. No company can foresee all of the misuses of its product.
64. Which of the following is an example of preventing pollution at its source?
a. Reimbursing those harmed for the harm done
b. Disposing of the pollution in an appropriate way
c. Not allowing the pollution to develop
d. Properly creating a “paper trace” to track pollution
65. All of the following may result from whistle-blowing cases EXCEPT:
a. Most individuals are fired
b. Individuals are blackballed in the industry
c. Individuals may be shunted at promotion time
d. The possibility of promotion
66. Where does tradition with the corporate community tend to place the burden of justification in
a whistle-blowing case?
a. On the whistle-blower’s co-workers who should support the whistle-blower
b. On the company as a whole
c. On the employee blowing the whistle
d. On the corporation’s senior management and corporate attorneys
67. Which of the following conditions is necessary for whistle-blowing to be morally permissible, but not morally obligatory?
a. The firm will do serious and considerable harm to employees or to the public.
b. The whistle-blower has documented evidence that would convince a reasonable,
impartial observer that one’s view of the situation is correct, and that the company’s
product poses a serious danger to the public.
c. The employee has good reason to believe that by going public, the necessary changes
will be brought about.
d. The whistle-blower has reason to believe that he/she will be seen as failing to be loyal
to the company.
68. Whistle-blowing is often thought to indicate the falsity of which common myth?
a. The Myth of Stakeholder Interest
b. The Myth of Amoral Business
c. The Myth of Moral Business
d. The Myth of Shareholder Interest
69. Which of the following conditions is necessary for whistle-blowing to be morally obligatory?
a. The employee has exhausted the internal procedures and possibilities within the firm,
maybe even to the board of directors.
b. The employee has good reason to believe that by going public, the necessary changes
c. The firm will do serious and considerable harm to employees or to the public.
d. The employee has reported the serious threat to his/her immediate supervisor.
70. Which of the following describe “personal whistle-blowing”?
a. Morally permitted, but not morally required
b. Morally obligatory
c. Morally forbidden
d. Morally irrelevant
71. One might argue that attempts by the government to limit an individual’s of tobacco or alcohol is an example of which of the following?
72. Which are the only two developed nations that allow direct-to-consumer advertising of
a. United States and Great Britain
b. United States and New Zealand
c. United States and Germany
d. United States and Canada
73. Which of the following is not a way in which a company undercuts the competition afforded by another unethically?
a. Pricing one’s product lower than one’s costs, thus making the competition operate at a
b. Buying up competitor companies to eliminate competition.
c. Targeting products in one area to subsidize losses in another, thus driving out the
d. By producing a better product and coming to dominate the field.
74. When, in the event of a civil emergency like a hurricane, merchants raise prices beyond what
is considered a fair or reasonable price, the practice is called which of the following?
a. Price gouging
b. Price fixing
c. Price markups
d. Price jobbing
75. Which of the following is a way in which secret bidding tends to produce fairer bids?
a. If the process were open, a firm that could make a profit at a price considerably less
than the competition might bid up the price to put pressure on that competitor.
b. If the competition were open, a firm might start out at a high bid to scare others off
c. If the process were open, a firm that could make a profit at a price considerably less
than the competition would make a bid only just enough less to win the contract.
d. If the competition were open, firms might get into a bidding war for the contract.