Business Ethics Chapter 6

The _____ is a fine that is set high enough by the Federal Sentencing Guidelines for Organizations to match all the assets of an organization and effectively puts the organization out of business. prohibition payment facilitation payment death penalty relative penalty

death penalty

Which of the following responsibilities was granted to the Consumer Financial Protection Bureau (CFPB)? Authority to limit the ability of banks to trade on their own accounts Authority to act if a bank with more than $50 billion in assets poses a threat to the financial stability of the United States Authority to examine and enforce regulations for banks and credit unions with assets over $10 billion Authority to conduct studies regarding consolidation of accounting firms

Authority to examine and enforce regulations for banks and credit unions with assets over $10 billion

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. Group of answer choices Federal Labor Relations Authority B. Public Company Accounting Oversight Board C. Consumer Financial Protection Bureau D. Securities and Exchange Commission

B. Public Company Accounting Oversight Board

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

It encompasses all the measures that were previously used to control unethical overseas transactions by U.S. corporations.

The illegal and unethical practice of providing old (or early) investors above-average returns on their investment with funds raised from new (or late) investors in the absence of any real business operation to generate profits is referred to as the _____. Pigeon drop Tobashi scheme Ponzi scheme Jamaican switch

Ponzi scheme

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? The Fair Credit Reporting Act The Foreign Assistance Act The Foreign Corrupt Practices Act The Fair Business Standards Act

The Foreign Corrupt Practices Act

Which of the following is true of the effective compliance program prescribed by the Federal Sentencing Guidelines for Organizations? A high-level official (such as a corporate ethics officer) must be in charge of and accountable for the compliance program. Criminal offenses must generate an appropriate response, analysis, and corrective action, but not on the basis of suspicion. An organization must be strict to address criminal misconduct in a consistent manner but should avoid penalizing employees for it. Individuals should be granted excessive discretionary authority, as that would reduce the risk of criminal conduct.

A high-level official (such as a corporate ethics officer) must be in charge of and accountable for the compliance program.

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

A. Consumer Financial Protection Bureau

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. Taft-Harley Act D. Bland-Allison Act

A. Sarbanes-Oxley Act

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 Dodd-Frank Wall Street Reform and Consumer Protection Act B. The U.S. Federal Sentencing Guidelines for Organizations C. The Ethics Resource Center D. The Securities and Exchange Commission

A. The Dodd-Frank Wall Street Reform and Consumer Protection Act

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

A. the base fine multiplied by the culpability score.

Which of the following is true of the penalties under the Federal Sentencing Guidelines for Organizations (FSGO)? They do not include monetary fines. They include organizational probation. They are not levied on small businesses. They are levied only on foreign corporations.

B. They include organizational probation.

The maximum penalty that a judge can impose upon an organization for violating the Federal Sentencing Guidelines for Organizations is a penalty worth: A. half of the organization's assets. B. the full amount of the organization's assets. C. a tenth of the organization's assets. D. a quarter of the organization's assets.

B. the full amount of the organization's assets.

Under the Foreign Corrupt Practices Act, payments that are acceptable (legal) provided they expedite or secure the performance of a routine governmental action are called _____. A. accentuation payments B. alternative payments C. facilitation payments D. implicit payments

C. facilitation payments

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

D. It protects employees of companies who provide evidence of fraud.

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

D. The Bank Secrecy Act

Under the Foreign Corrupt Practices Act, payments to foreign officials in order to expedite or secure the performance of a routine governmental action are known as _____. implicit payments accentuating payments induced payments grease payments

D. grease payments

Which of the following statements is true of the culpability score? It is calculated before the base fine of an organization is determined by the Federal Sentencing Guidelines for Organizations. It can be increased or decreased according to predetermined factors. It is a multiplier of the base fine of an organization with a maximum of 2. It plays no role in calculating monetary fines under the Federal Sentencing Guidelines for Organizations.

It can be increased or decreased according to predetermined factors.

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

The U.S. Department of Justice (DOJ) and the Securities and Exchange Commission (SEC)

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

Unlike grease payments, bribes induce foreign officials to act in violation of their lawful duty.