Question 1

Why did Albert Meyer hesitate to disclose his findings on New Era?

Accepted Answer

A)  He was not sure
B)  He was asked by his superiors to let it go
C)  He did not have tenure
D)  Both b and c
E)  All of the above

Question 2

When Enron first proposed its off-the-book entities, David Duncan clearly had concerns.Discuss what he did about those concerns.

Accepted Answer

Students should discuss Duncan's e-mail ...

Question 3

Booking sales in advance of actual contracts is not a violation of accounting rules.

Accepted Answer

A) True 
 B)False

Question 4

The U.S.Supreme Court reversal of the Andersen conviction means that there were no ethical missteps by Andersen.

Accepted Answer

A) True 
 B)False

Question 5

What was Jeffrey Skilling's opinion of Jim Chanos?

Accepted Answer

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

Question 6

What was Beech-Nut's fine?

Accepted Answer

A)  $100 million
B)  $50 million
C)  $2 million
D)  $140,000

Question 7

What happened to Andrew Fastow?

Accepted Answer

A)  He was convicted of fraud
B)  Nothing; he did nothing wrong
C)  He testified against Skilling and Lay
D)  Both b and c

Question 8

Compare the behaviors of William Aramony with those of Dennis Kozlowski.Are there signals these CEOs send with their behaviors?

Accepted Answer

Students should discuss the young women ...

Question 9

The failure of an auditor to disclose the possible obsolescence of a firm's major product is a judgment call and not an ethical issue.

Accepted Answer

A) True 
 B)False

Question 10

List the factors that determine the tone at the top.

Accepted Answer

Students should explain that at the top ...

Question 11

Another name for large-charge restructuring is:

Accepted Answer

A)  Big bath.
B)  Spring-loading.
C)  Cookie jar reserves.
D)  All of the above

Question 12

List five categories of ethical and moral development and explain each one and give an example of each.

Accepted Answer

Refer to pages 192 -...

Question 13

Who was the CFO of Enron?

Accepted Answer

A)  Jeffrey Skilling
B)  Andrew Fastow
C)  Ken Lay
D)  John Olson

Question 14

Enron did not disclose that an officer of the company was a principal in the off-the-book entities.

Accepted Answer

A) True 
 B)False

Question 15

Who was the engineer who wrote an internal memo on his concerns about the use of the rocket launchers in low temperatures?

Accepted Answer

A)  Allan McDonald
B)  Bob Lund
C)  Roger Boisjoly
D)  Morton Thiokol
E)  Charles S.Locke

Question 16

Where was Bernie Madoff's secretive operation that had his computer and program for his investment techniques?

Accepted Answer

A)  Off-shore in the Cayman Islands
B)  In West Palm beach
C)  On the 17th floor of his New York offices
D)  In Switzerland

Question 17

Which of the following are more likely to break the law?

Accepted Answer

A)  Companies that are experiencing a downturn in sales
B)  Companies that have had 7 consecutive quarters of losses
C)  Companies that are high earnings performers
D)  Companies that have just had a rapid changeover in leadership

Question 18

What was the total figure for WorldCom's earnings restatement?

Accepted Answer

A)  $3 billion
B)  $4.3 billion
C)  $6.8 billion
D)  $9 billion

Question 19

The total restatement of revenues at HealthSouth was:

Accepted Answer

A)  $1 billion.
B)  $1.5 billion.
C)  $2.0 billion.
D)  $2.5 billion.

Question 20

William Aramony:

Accepted Answer

A)  Was convicted of fraud and served a prison sentence.
B)  Still received his compensation.
C)  Had his pay taken by the federal court.
D)  a and b only
E)  a, b and c

Exam 4: Ethics and Company Culture

List the factors that determine the tone at the top.

Correct AnswerverifiedStudents should explain that at the top ...View AnswerShow Answer

List five categories of ethical and moral development and explain each one and give an example of each.

Correct AnswerverifiedRefer to pages 192 -...View AnswerShow Answer

Compare the behaviors of William Aramony with those of Dennis Kozlowski.Are there signals these CEOs send with their behaviors?

Correct AnswerverifiedStudents should discuss the young women ...View AnswerShow Answer

The total restatement of revenues at HealthSouth was:

Correct AnswerverifiedShow Answer

Enron did not disclose that an officer of the company was a principal in the off-the-book entities.

Correct AnswerverifiedShow Answer

Why did Albert Meyer hesitate to disclose his findings on New Era?

Correct AnswerverifiedShow Answer

William Aramony:

Correct AnswerverifiedShow Answer

What was Jeffrey Skilling's opinion of Jim Chanos?

Correct AnswerverifiedShow Answer

What was Beech-Nut's fine?

Correct AnswerverifiedShow Answer

Where was Bernie Madoff's secretive operation that had his computer and program for his investment techniques?

Correct AnswerverifiedShow Answer

Who was the CFO of Enron?

Correct AnswerverifiedShow Answer

Which of the following are more likely to break the law?

Correct AnswerverifiedShow Answer

What happened to Andrew Fastow?

Correct AnswerverifiedShow Answer

The failure of an auditor to disclose the possible obsolescence of a firm's major product is a judgment call and not an ethical issue.

Correct AnswerverifiedShow Answer

Booking sales in advance of actual contracts is not a violation of accounting rules.

Correct AnswerverifiedShow Answer

What was the total figure for WorldCom's earnings restatement?

Correct AnswerverifiedShow Answer

Another name for large-charge restructuring is:

Correct AnswerverifiedShow Answer

The U.S.Supreme Court reversal of the Andersen conviction means that there were no ethical missteps by Andersen.

Correct AnswerverifiedShow Answer

When Enron first proposed its off-the-book entities, David Duncan clearly had concerns.Discuss what he did about those concerns.

Correct AnswerverifiedStudents should discuss Duncan's e-mail ...View AnswerShow Answer

Who was the engineer who wrote an internal memo on his concerns about the use of the rocket launchers in low temperatures?

Correct AnswerverifiedShow Answer

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Students should explain that at the top ...
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Refer to pages 192 -...
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Students should discuss the young women ...
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Students should discuss Duncan's e-mail ...
View Answer

Correct Answer
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