Business Ethics Study Guide for final Ch.6, 7

Under the federal Civil False Claims Act, whistle-blowers are referred to as _____.

"relators"

The _____ Act of 1863 was designed to prevent profiteering from the Civil War.

Civil False Claims

_____ is the area of the Foreign Corrupt Practices Act that requires corporations to fully reveal any and all transactions conducted with foreign officials and politicians, in line with the Securities and Exchange Commission provisions.

Disclosure

The _____ was legislation promoted as the "fix" for the extreme mismanagement of risk in the financial sector that led to a global financial crisis in 2008-2010.

Dodd-Frank Wall Street Reform and Consumer Protection Act

The _____ Act of 2010 introduced a new reward program for whistle-blowers who report securities law violations to the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC).

Dodd-Frank Wall Street Reform and Protection

The _____ is a government agency established to prevent banks from failing and otherwise threatening the stability of the U.S. economy.

Financial Stability Oversight Council

Qui Tam Lawsuit

A lawsuit brought on behalf of the federal government by a whistle blower under the False Claims Act of 1864

_____ are facilitating payments to foreign officials in order to expedite or secure the performance of a routine governmental action.

Grease payments

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 Corporate and Criminal Fraud Accountability Act is also called the _____ Act.

Sarbanes-Oxley

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

Sarbanes-Oxley

Under the _____ Act of 2002, congress took an integrated approach to the matter of whistle-blowing by prohibiting retaliation against whistle-blowers and encouraging the act of whistle-blowing.

Sarbanes-Oxley

Sebastian and Amy are arguing over secondary legislation that were in place prior to the passing of the Foreign Corrupt Practices Act (FCPA). Amy is of the opinion that the FCPA encompasses all secondary measures that were in use to prohibit corrupt practices. Sebastian disagrees with Amy on this point. Which of the following, if true, would strengthen Amy's argument?

The FCPA requires corporations to fully disclose all transactions conducted with foreign officials in line with the SEC provisions.

Why was the Foreign Corrupt Practices Act criticized?

The act formally recognizes the facilitation payments, which would otherwise be acknowledged as bribes.

_____ of the Sarbanes-Oxley Act focuses on issues related to corporate tax returns.

Title X

The _____ Act of 1989 first addressed the issue of retaliation against federal employees who bring accusations of unethical behavior.

Whistleblower Protection

Payments to foreign officials in order to expedite or secure the performance of a routine governmental action are known as _____. A. grease payments B. induced payments C. insulated payments D. allurements

a

The _____ is a government agency within the Federal Reserve that oversees financial products and services. A. Consumer Financial Protection Bureau B. Ministry of Internal Affairs C. Ethics Resource Center 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 primary reason for the enactment of the Civil False Claims Act was to: A. protect the government from fraudulent defense contractors. B. prevent corporate retaliation against federal whistle-blowers. C. impose specific performance deadlines in processing whistle-blower complaints. D. prevent whistle-blowers from filing cases against multinational corporations.

a

Which of the following is a difference between internal and external whistle-blowing? A. Unlike external whistle-blowing, the history of internal whistle-blowing is more difficult to track. B. Unlike internal whistle-blowing, external whistle-blowing receives no media coverage. C. Unlike external whistle-blowing, internal whistle-blowing harms the company's public image. D. Unlike internal whistle-blowing, incidents of external whistle-blowing are not well documented.

a

Which of the following is true of the Whistleblower Protection Act of 1989? A. It imposed specific performance deadlines in processing whistle-blower complaints. B. It made it mandatory to disclose the name of the whistle-blower in all circumstances. C. It failed to safeguard federal employees from retaliatory behavior aimed at them. D. It only safeguarded nonfederal employees from retaliatory behavior against them.

a

Death penalty

a fine that is set high enough to match all the organizations assets and basically put the organization of business. This is warranted where the organization was offering primarily for a common purpose was operating primarily for a criminal purpose

financial stability Oversight Council

a government agency established to prevent banks from failing and otherwise threatening the stability of the US economy

Consumer Financial Protection Bureau

a government agency with the Federal Reserve that reduce financial products and services

Sarbanes Oxley act

a legislative response to a corporate accounting scandals of the early 2000's that covers the financial management of the businesses

External whistle-blowing

an employee discovered the corporate misconduct and using it to bring it to the attention of law enforcement agencies and/or the media

Whistle-blower

an employee who discovers corporate misconduct and choose to bring it to the attention of others

Public Company Accounting Oversight Board

an independent oversight body for auditing companies

Routine governmental action FCPA

any regular administrative process or procedure excluding any action taken by foreign official in the decision to award new or continuing business

A qui tam lawsuit is a lawsuit brought on behalf of _____ by a whistle-blower under the False Claims Act of 1863. A. multinational corporations B. the federal government C. small business owners D. private enterprises

b

A qui tam lawsuit is a lawsuit brought on behalf of the federal government by a whistle-blower under the _____ of 1863. A. Foreign Corrupt Practices Act B. False Claims Act C. National Emergency Act D. Comstock Act

b

Alan, a newly hired employee in charge of tracking his company's inventory, finds that there is a major discrepancy between the expected stock and the actual stock. He discovers that one of the employees in his department is responsible for the misappropriation of this stock and immediately reports his observation to the operations manager. Alan plays the role of an _____ whistle-blower. A. explicit B. internal C. implicit D. external

b

The _____ first addressed the issue of retaliation against federal employees who bring accusations of unethical behavior. A. Sarbanes-Oxley Act of 2002 B. Whistleblower Protection Act of 1989 C. False Claims Act of 1863 D. Rehabilitation Act of 1973

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 signing the company's federal income tax return. D. It considers whistle-blowing a white collar crime.

b

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. black funds

c

Title XI of the Sarbanes-Oxley Act focuses on: A. corporate social responsibility. B. enhanced financial disclosures. C. corporate fraud and accountability. D. auditor independence.

c

Which of the following employees is an external whistle-blower? A. Laura, who files a complaint against one of her company's suppliers for not meeting the requirements within the specified time. B. Evelyn, who reports to a senior manager that her supervisor deliberately stocks expired food products on the shelves of the super market. C. Benjamin, who alleges to the federal government that the company he works for is fixing prices with its competitors. D. Ray, who discovers and ignores the fact that his company's main competitor is doing something unethical.

c

Which of the following is true of corporate whistle-blowing? A. Corporate whistle-blowing is heavily discouraged by the Sarbanes-Oxley Act of 2002. B. Corporate whistle-blowers are no longer protected by law from retaliatory behavior. C. Corporate whistle-blowing has considerable potential for financial gain in some areas. D. Corporate whistle-blowers are assured safety by the Whistleblower Protection Act.

c

Which of the following is true of facilitation payments under the Foreign Corrupt Practices Act (FCPA)? A. The FCPA does not recognize them formally or differentiate between them and bribes. 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 true of the Foreign Corrupt Practices Act? A. It does not distinguish between bribery and facilitation payment. B. It does not permit the expediting of routine governmental action. C. It is considered violated even if a bribe was unsuccessful. D. It is applicable to all schemes unless they occur over wire communications.

c

federal sentencing guidelines for organizations

chapter 8 of the guidelines that hold the businesses liable for the criminal acts of their employees agents

Under the federal Civil False Claims Act, whistle-blowers who expose fraudulent behavior against the government are entitled to _____ of the amount recovered. A. between 30 and 50 percent B. less than 10 percent C. at least 50 percent D. between 10 and 30 percent

d

Internal whistle-blowing

employee discovering corporate misconduct and bring it to the attention of his/her superior supervisor established procedures to address the misconduct within the organization

Foreign Corrupt Practices Act

encompasses all the measures that were previously in use to curb unethical overseas transactions

The Whistleblower Protection Act of 1989 applied only to _____ employees.

federal

It is impossible to track the history of _____ whistle-blowing actions since they rarely receive any media attention.

internal

Facilitation payments

payments that are acceptable / legal provided they expedite or security performance of a routine governmental action

The Vlocker Rule

proposed that there should be a key position in the latest legislation to limit the ability of banks to trade on their own accounts

Whistle-blower hotline

telephone line by which employs can leave messages to alert a company to suspected misconduct without revealing their identity

Prohibition

the Act that includes wording from the Bank Secrecy Act and the Mail Fraud Act to prevent those funds overseas for the express purpose of conducting a fraudulent scheme

Disclosure

the FCPA requirement that corporations fully disclose any and all transaction conducted with foreign officials and politicians.

culpability score

the calculation of a degree of blame or guilt that is used as a multiplier of up to 4 times the base fine. this can be adjusted according to aggravating or mitigating factors

For a whistle-blower hotline to work, trust must be established between employees and _____.

their employer