Business Ethics Midterm Test

Title IX of the Sarbanes- Oxley Act focuses on: A. Corporate social responsibility B. Enhanced financial disclosures C. White-collar crime penalty enhancements D. Corporate fraud and accountability

C

Under the Federal Sentencing Guidelines for Organizations, the death penalty: A. Can only be conferred upon multinational corporations and not no smaller businesses. B. Allows the state to appropriate half of the total assets of an organization. C. Is warranted where the organization was operating primarily for a criminal purpose. D. Cannot be levied upon organizations if it means putting them out of business.

C

Under the Foreign Corrupt Practices Act, payments made with the knowledge that any portion of the payment is to be passed along to a foreign official for a prohibited purpose under the Foreign Corrupt Practices Act are known as________. A. grease payments B. Facilitation payments C. Bribes D. Costs

C

Which of the following in true of facilitation payments under the Foreign Corrupt Practices Act (FCPA)? A. The FCPA recognizes them as bribes or an illegal form of payment B. The FCPA permits them if they secure exclusive contracts from foreign officials. C. The FCPA finds them acceptable if they expedite a routine governmental action . D. The FCPA finds them acceptable if they involve securing new businesses overseas.

C

Which of the following is a routine governmental action? A. Allocating funds for companies to make facilitation payments overseas. B. Providing legal immunity for the employees of foreign companies. C. Providing police protection for the transit of goods across a country D. Accepting payment from a foreign company in return for an exclusive contract.

C

Which of the following legislations required full disclosure of funds that were taken out of or bought into the United State before the Foreign Corrupt Practice Act was introduced? A. the Trade Commission Act B. The Consumer Protection Act C. The Bank Security Act D. The Government Corporate Control Act

C

Which of the following legislations required full disclosure of funds that were taken out of or brought into the United States before the Foreign Corruption Practices Act was introduced? A. The Trade Commission Act B. The Consumer Protection Act term-49 C. The Bank Secrecy Act D. The Government Corporate Control Act

C

Which of the following requirements is included in the status of organizational promotion under the Federal Sentencing Guidelines for Organizations (FSGO)? A. Reporting a business's financial condition to the court on a periodic basis. B. Reporting confidential details of all employees to the court on a periodic basis. C. Reporting progress to the FSGO in expediting or securing the performance of routine governmental favors. D. Reporting progress to the FSGO in making monetary contributions to the U.S> political parties.

C

Which of the following responsibilities was granted to the Consumer Financial Protection Bureau(CFPB)? A. Authority to act if a bank with more than$50 billion in assets poses a threat to the financial stability of the United State B.Authority to limit the ability of banks to trade on their own accounts C. Authority to examine and enforce regulations for banks and credit unions with assets over$1o billion D. Authority to conduct studies regarding consolidation of accounting firms.

C

The creation of the _______ was an attempt to reestablish the perceived independence of auditing companies after the corporate accounting scandals of the early 2000s. A. Securities and Exchange Commission B. Consumer Financial Protection Bureau C. Federal Labor Relations Authority D. Public Company Accounting Oversight Board

D

Title VIII of the Sarbanes-Oxley Act addresses issues related to ________. A. Enhanced financial disclosures B. Commission resources and authority C. The estimation of auditing fees D. Corporate and criminal fraud accountability

D

Which of the following is a legislation that was introduced to control bribery and other less obvious forms of payment to overseas officials and politicians by American publicly traded companies. A.The Foreign Assistance Act B. The Fair Credit Reporting Act C. The Gramm- Leach-Bliley Act D. The Taft- Harley Act

D

The Foreign Corrupt Practices Act was criticized because it formally recognized________.

Facilitation payments

Payments to foreign officials made in connection with expediting lawful customs clearances and obtaining the issuance of entry or exit visas are considered bribes under the Foreign Corrupt Practices Act

False

The base fine of an organization sentenced under the Federal Sentencing Guideline for Organizations is always calculated after its culpability score.

False

Title VIII of the Sarbanes-Oxley Act provides tougher criminal penalties for altering documents, defrauding shareholders, and certain other forms of obstruction of justice and securities fraud. It also protects employees of companies who provide evidence of fraud.

False

Under no circumstance can the culpability score be increased or decreased

False

Under no circumstances can the culpability score be increased or decreased

False

The ______ is a legislative response to the corporate accounting scandals of the early 2000s that cover the financial management of businesses. A. Sarbanes Oxley Act B. Glass-Steagall Act C. Bland- Allison Act D. Taft- Harley Act

A

The _________ is a government agency within the Federal Reserve that overseas financial products and services. A.Consumer Financial Protection bureau B. Ministry of Internal Affairs C. Department of Commerce D. Public Company Accounting Oversight Board

A

The formula used to calculate the total fine sentenced by the Federal Sentencing Guidelines for Organizations (FSGO) is : A. The base fine multiplied by the culpability score. B. The base fine plus the culpability score. C. The base fine minus the culpability score. D. The base fine divided by the culpability score.

A

The illegal and unethical practice of providing old investors above-average returns on their investment with funds raised from new investors in the absence of any real business operation to generate profits is referred to as the _______. A. Ponzi scheme B. Jamaican switch C. Pigeon drop D. Bland- Allison Act

A

Under the Foreign Corrupt Practices Act, payments made with the knowledge that any portion of the payment is to be passed along to a foreign official for a prohibited purpose under the Foreign Corrupt Practices Act are known as __________ . A. Grease payments B. Facilitation payments C. Bribes D. Costs

A

Under the Foreign Corrupt Practices Act, payments that are acceptable provided they expedite or secure the performance of a routine governmental action are called________. A. Facilitation payments B. Accentuation Payments C. Explicit payment D. Implicit payment

A

Which of the following government agencies jointly enforce the Foreign Corrupt Practices Act. A. The U.S, Department of Justice(DOJ) and the Securities and Exchange Commission (SEC) B. The U.S. Congress Office of Compliance and the federal Judicial Center C. The U.S. National Economic Council (NEC) and the Government Accountability Office(GAO) D. The U.S. Department of Commerce and the Office of Financial Research

A

Which of the following key U.S. legislations is an attempt to discourage, if not prevent, illegal conduct within organizations? A. The U.S. Federal Sentencing Guidelines for Organizations B. The U.S. Federal International Customary Law C. Te U.S. Federal Procurement Regulations System D. The U.S. Federal Standards for Commercial Services

A

Which of the following legislations could fine companies for failing to disclose bribes and other forms of payments to foreign officials before the Foreign Corrupt Practices Act was introduced ? A. The Securities and Exchange Commission B. The Dodd-Frank Wall Street Reform and Consumer Protection Act C. The U.S. Federal Sentencing Guidelines for Organizations D. The Ethics Resource Center

A

The _______ is a fine that is set high enough by the Federal Sentencing Guidelines for Organization to match all the assets of an organization and effectively puts the organization out of business. A. Prohibition Payment B. Death Penalty C. Facilitation payment D. Relative Penalty

B

The _______ is a government agency established to prevent banks from failing and otherwise threatening the stability of the U.S. economy. A. U.S. Congress office of Compliance B. Financial Stability Oversight Council C. Consumer Financial Protection Bureau D. Office of Financial Research

B

The _______ states that there should be a key restriction in the legislation to limit the ability of banks to trade on their own accounts (termed proprietary trading) A. Sarbanes- Oxley Act B. Volcker rule C. Campbell's rule D. Bland- Allison Act

B

Which of the following did the government formulate to penalize corporate wrongdoing. A. The Glass-Steagall Act B. The Sarbanes-Oxley Act C. The Gramm- Leach- Bliley Act D. The Taft-Harley Act

B

Which of the following is true of the Sarbanes- Oxley Act(SOX)? A. It helped disband the Public Company Accounting Oversight Board. B. it protects employees of companies who provide evidence of fraud. C. It prohibits a CEO from singing the company's federal income tax return. D. It considers whistle-blowing a white collar crime.

B

Which of the following statements is true of the Federal Sentencing Guidelines for Organizations? A. It holds organizations liable only or fraudulent activities in foreign market. B. It holds businesses liable for the criminal acts of their employees and agents C. It decreases the costs of unethical behavior D. It covers very few business crimes.

B

Which of the following statements is true of the Federal Sentencing Guidelines for Organizations? A. It holds organizations liable only or fraudulent activities in the foreign market. B. It holds businesses liable for the criminal acts of their employees and agents C. It decreases the costs of unethical behavior D. It covers very few business crimes.

B

Which of the following statements is true of the Foreign Corruption Practices Act? A. Ut us jointly enforced by the Federal Bureau of Investigation and the Ministry of Internal Affairs. B. It encompasses all the measures that were previously used to control unethical overseas transactions by U.S. corporations. C. It replaced the Dodd-Frank Wall Street Reform and Consumer Protection Act. D. It ignores stipulations laid down by the Bank Secrecy Act and the Mail Fraud Act.

B

Prior to the passing of the Foreign Corrupt Practices Act, illegal corporate behavior was punishable only through "secondary" sources of legislation like the _________, which required full disclosure of funds that were taken out of or brought into the United States.

Bank Secrecy Act

________ are payments of money or anything else of value to influence or induce any foreign official to act in a manner that would be in violation of his or her lawful duty

Bribes

The introduction of the ________ placed more effective controls over bribing practices and less obvious forms of payment to foreign officials and politicians by American publicly traded companies pursuing international growth

Foreign Corrupt Practices Act

Under the Sarbanes- Oxley Act, any public accounting firms that audited the records of publicly traded companies were required to register with the ________

Public Company Accounting Oversight Board

The Foreign Corrupt Practices Act finds facilitation payments acceptable provided they expedite or secure the performance of a __________

Routine Governmental Action

The _______ was hailed as one of the most important pieces of legislation governing the behavior of accounting firms and financial markets since the Securities and Exchange Commission legislation in the 1930s

Sarbanes -Oxley Act

The Public Company Accounting Oversight Board was established under the ______ Act.

Sarbanes-Oxley

_______ of the Sarbanes-Oxley Act focuses on issues related to auditor independence.

Title II

_______ of the Sarbanes-Oxley Act focuses on issues related to corporate tax returns,

Title X

The Federal Sentencing Guidelines for Organizations table factors in both the nature of the crime and the amount of the loss suffered by the victim

True

The Sarbanes-Oxley Act is a legislative response to the corporate accounting scandals of the early 2000s that covers the financial management of businesses

True

The creation of the Public Company Accounting Oversight Board(PCAOB) as an independent oversight body was an attempt to reestablish the perceived independent of auditing companies that faced serious questioning after several corporate scandals

True

The processing of governmental papers, such as visas , is an example of a routine governmental action.

True

The title VI of the Sarbanes-Oxley Act provides additional funding and authority to the Securities and Exchange Commission to follow through on all the new responsibilities outlined in the act.

True

Which of the following is a difference between grease payments and bribes under the Foreign Corrupt Practices Act? A. Unlike grease payments, bribes induce foreign officials to act in violation of their lawful duty. B. Unlike grease payments, bribes include donations to bona fide charitable organizations C. Unlike grease payments, bribes are meant or secure a routine governmental Action D. Unlike grease payments, bribes are used to facilitate processes approved of by law.

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