Q&A Hero

Q: Who said, "What's good for me is good for all shareholders"? a. The chairman of General Motors b. Jeff Dachis of Razorfish c. Bill Gates d. Sir Alfred Coke

Q: What statutory duty did the Penn State University officials have regarding Mr. Sandusky's conduct? a. To report it to the proper authorities b. To terminate Mr. Sandusky c. To report it to the NCAA d. To conduct an investigation

Q: What were the NCAA sanctions imposed on Penn State? a. The so-called death penalty plus a fine b. There were no sanctions except a fine c. A suspension of the football program d. Penn State was stripped of all of Paterno's 112 wins

Q: What did the Freeh report on Penn State conclude? a. That the university needed to just provide more training for employees regarding minors on campus b. That the administrators had done the best that they could in handling the situation c. That the Board of Trustees had acted inappropriately d. That Joe Paterno had fulfilled all of his duties to report

Q: What was the allegation about the TV show "Breaking Amish"? a. That the people depicted were not really Amish b. That the people depicted in the show had already left their Amish communities before the show began c. That the people depicted in the show never went to New York City as shown d. All of the above are true

Q: What was the allegation made about HGTV's "House Hunter" show? a. That the houses were not really for sale b. That substitute actors were used for actual homeowners c. That the prices on the homes were changed d. That the buyers never closed the deals

Q: Who was the key witness against Mr. Sandusky at his trial? a. Joe Paterno b. The Penn State athletic director c. The janitor at the football facilities d. Michael McQueary

Q: In the Penn State case, who was charged with criminal activity? a. The president of the university b. Joe Paterno c. The janitor who did not report what he witnessed d. Michael McQueary

Q: Which of the following was a characteristic of the culture at Galleon? a. It was open and transparent b. Mr. Rajaratnam was a difficult and demeaning boss c. It had a good compliance program d. It had training on insider training

Q: How much of the lost money at MF Global did investors receive back in the bankruptcy? a. Between 12 and 42 cents per dollar b. Between 75 and 93 cents per dollar c. Nothing, the liquidation brought no cash d. 50% of their original investment

Q: Who of the following objected to Mr. Corzine's risky venture into Greek debt? a. Edith O'Brien b. Michael Roseman c. Michael Stockman d. Laurie Ferber

Q: When a company announces that an executive is "Leaving to spend more time with his family": a. It means the executive is retiring. b. It means that the executive has a health problem. c. It means that the executive is probably leaving for a different reason. d. It means that the executive is leaving to spend more time with his family.

Q: Which of the following is an example Albert Carr uses to illustrate bluffing? a. A job applicant over 40 who dyes his hair. b. A woman wearing make-up. c. A job applicant who changes the list of magazines he reads on the job application. d. Carr uses all of the above examples

Q: Which of the following is not true about Jon Corzine? a. He is the former governor of New Jersey. b. He is the former senator from New Jersey. c. He is the former chairman of Goldman Sach's. d. He was hands-off in his management style at MF Global.

Q: Edith O'Brien:a. Was MF Global's treasurer.b. Tried to stop the use of client's funds for hedging.c. Was general counsel for MF Global.d. Has been charged criminally.

Q: CDOs:a. Are illegal.b. Are collateralized debt obligations.c. Are not securities.d. Could not be hedged.

Q: What was AIG's role in the Goldman stock offerings? a. It was the insurer for losses on those offerings b. It was the underwriter c. It disclosed Goldman's conduct to the SEC d. It had no role with Goldman

Q: How did Goldman avoid violation of SOX in advancing cash to two of its officers? a. It made them a loan b. It made them an interest-free loan c. It purchased stock from the executives d. It had them issue a promissory note

Q: In the Goldman Abacus deal, who determined what mortgages went into the investment pool? a. Fabrice Tourre b. ACA c. John Paulson d. Lloyd Blankfein

Q: As a result of the Goldman "trading huddles": a. Auction-rate securities are now illegal. b. There are now new regulations of analysts. c. Investment banking houses can no longer employ analysts. d. The definition of sophisticated investors has been changed.

Q: Which of the following is NOT a Goldman cultural philosophy? a. Filthy rich by forty b. Long-term greedy c. The customer is first and foremost d. Don"t kill the marketplace

Q: Which company uses primum non nocere as its credo? a. AIG b. ABC TV c. ImClone d. Johnson & Johnson

Q: Primum non nocere is associated as an ethical philosophy of: a. Plato. b. Aristotle. c. Peter Drucker. d. Laura Nash.

Q: Which of the following feels that business is like a big poker game and that bluffing in business is expected and acceptable? a. Laura Nash b. Peter Drucker c. Ayn Rand d. Albert Carr

Q: James Dodgsen is a student in a graduate course in business. The professor in the course has given Dodgsen and his classmates a surprise quiz in class. Dodgsen did not do the reading for class that day because he had been grading papers as part of his TA position. He has been prepared for every other class that semester. As he glances as the quiz questions, he realizes that he does not know any of the answers. However, he sees that Jane Frampton, the student who sits next to him, is well prepared and answering the questions with great ease. He can see her answers because of her large, block-style printing. Dodgsen copies her answers. a. Dodgsen is justified in using the answers because he the pop quiz was unfair. b. Dodgsen is justified in using the answers because he was fulfilling his TA responsibilities instead of preparing for class. c. Dodgsen is justified in using the answers if he intends to read the material eventually. d. Dodgsen has been dishonest. e. None of the above

Q: Suppose, with reference to #12 above, that Pickford already owns an interest in the biotech firm, but Munford Stanley is not the underwriter. Pickford: a. Does not have a conflict of interest. b. Has a conflict of interest, but it is acceptable in IPOs. c. Has a conflict of interest that must be disclosed to all purchasers. d. Does not have a conflict of interest, but Munford Stanley does. e. None of the above

Q: Professor Reba McGintry is the head of the Student Conduct Board. Charges have been brought against 3 students who are also members of the university basketball team. The charges are based on the criminal charges brought by the local district attorney against the 3 men for sexual assault. Professor McGintry's husband was one of the staff attorneys in the DA's office who made the decision to go forward with the prosecution. Professor McGintry: a. Can proceed with the hearing because the two matters are unrelated. b. Can proceed with the hearing because of marital privilege. c. Must excuse herself from the students' hearing because of a conflict of interest. d. Has no conflict, but her husband does. e. None of the above

Q: Beth Williams is an exercise physiologist who serves as an expert consultant for Women's Walkers, Inc., a shoe company specializing in manufacturing walking shoes for women. Dr. Williams is paid an annual consulting fee along with additional fees for drafting reports and making media and public appearances for the company. Executive Woman, a national magazine, has asked Dr. Williams to serve as one of three experts on a panel that will evaluate the full market range of women's walking shoes. a. Dr. Williams will be paid a consulting fee by Executive Woman as well.b. Dr. Williams can participate in the Executive Woman panel so long as her affiliation with Women's Walkers is disclosed.c. Dr. Williams can participate in the Executive Woman panel if she waives her fee.d. Dr. Williams is an academic with no conflict of interest and can participate in the Executive Woman panel.

Q: MF Global used customer funds for hedging activity.

Q: Adding in additional home repairs for an insurance claim for damage to your home is simply a shifted norm.

Q: Goldman's securities offerings in the 1920s were similar to its offerings in the mortgage-debt instruments sold in the 2000s.

Q: Goldman did not pay a fine to the SEC.

Q: The SEC failed to pass the shareholder say-on-pay regulation.

Q: Fabrice Tourre was aware that the CDO market was going to crash.

Q: Goldman was originally founded as a partnership.

Q: During the 1990s, Goldman increased it standards for profitability before doing an IPO.

Q: In the equation P=Æ’(x), P stands for profits.

Q: Ikea fell into the either/or conundrum in solving its problems in dealing with Russian authorities.

Q: "To bribe or not to bribe" is a set-up for the either/or conundrum.

Q: Increasing isolation is a part of leadership but does not affect ethical choices.

Q: A focus on the trappings of success causes leaders to lose their way.

Q: Albert Carr believes that a card up the sleeve is not the same as bluffing and is a form of cheating.

Q: Albert Carr believes that bluffing in business is justified because it is understood as part of the game of business.

Q: Violation of company rules would not be considered an ethical violation.

Q: Albert Carr likens business to a poker game.

Q: With respect to #27, it would be unethical for you to hire your friend to get him to bring the information to your company.

Q: With respect to #20, it is not necessary for the company to take any action to correct the problem or refund money for those who already own the new calculator.

Q: Although you are not part of your company's engineering group, you have discovered a major flaw in the company's new paper-thin solar calculator. The calculator adds when the subtract button is pressed if there are more than three figures to the right of the decimal point. Since it is not your area, you should do and say nothing.

Q: With respect to #10, using your work computer and paper to complete the case analyses would be unethical.

Q: Reality TV shows enhance the "real life" scenarios.

Q: Galleon Hedge Fund was involved in insider trading.

Q: Leaders who are focused on their own goals are less likely to lose their way when it comes to ethics.

Q: Peter Drucker believes that those who have more education should be held to higher standards.

Q: What rationalization do most speeders use to justify driving in excess of the speed limit? a. I'm a better driver. b. That's what they do in California. c. Everybody speeds. d. That speed limits are arbitrary.

Q: What rationalization did the students at Stuyvesant High School offer for cheating? a. They were under tremendous pressure for grade achievement. b. They were high achievers to whom test scores were irrelevant. c. They were helping each other. d. The Warren Buffett rationalization.

Q: Which of the following categories does hazing fit into? a. Interpersonal abuse b. Organizational abuse c. Conflict of interest d. None of the above

Q: Into which group would the students at Stuyvesant High School fall? a. Moral relativists b. Utilitarians c. Ethical egoists d. Virtue

Q: With respect to #85, what is Senator Specter concerned about? a. The slippery slope b. That the NFL is unregulated c. That there is no need for concern d. That no crime was committed

Q: With respect to #85, what rationalization did Matt Walsh follow? a. "I was just following orders." b. "Everybody does it." c. "That's the way it has always been done." d. All of the above

Q: Matt Walsh, a golf pro from Hawaii, was a video operator for the New England Patriots from 1999-2002. Walsh says that he taped the Patriots' opponents' signals, information that he says was then used by the Patriots when they next met that team. If you know the signals, then you know what defense has planned. Offense is then a tad easier. Some quotes emerged from the situation: From Patriots' coach, Bill Belichick, "I misinterpreted the rules." From Jacksonville Coach Jack Del Rio on the videotaping, "I think all teams do that. That's been going on forever." From Matt Walsh, "I had always been a big Patriots fan. I wasn"t going to question what they wanted me to do." From Pennsylvania Senator Arlen Specter, "If you can cheat in the NFL, you can cheat in college, you can cheat in high school, you can cheat on your grade-school math test. There's no limit as to what you can do. I think they owe the public a lot more candor and a lot more credibility." What rationalization is the Jacksonville coach applying? a. "Everybody does it." b. "That's the way it has always been done." c. "If we don"t do it. . ." d. All of the above

Q: Which model for ethical decision analysis requires managers to seek additional perspectives on ethical issues? a. Laura Nash model b. The Wall Street Journal model c. The Blanchard and Peale Model d. Both a and c e. a, b, and c

Q: The UCLA Medical Center is facing sanctions from California's Department of Health because several of its employees viewed records of famous patients, patients with whom the employees had no contact or care responsibilities. The employees viewed the records of, among others, Maria Shriver (wife of Governor Arnold Schwarzenegger), the late Farrah Fawcett, and Britney Spears. The unauthorized access to the records was uncovered when the story of the late Ms. Fawcett's recurrence of cancer was published in The National Enquirer before Ms. Fawcett had disclosed her health condition to family or friends. Ms. Fawcett's lawyers then notified the hospital of the only possible source of the information. Which category of an ethical breach applies to the conduct of the hospital employees? a. Committing acts of personal decadence b. Conflict of interest c. Divulging information d. Balancing ethical dilemmas

Q: A group of Wachovia (now part of Wells Fargo) customers filed a class action lawsuit against Wachovia Bank because fraudulent telemarketers had taken money from their accounts and that the telemarketers did so with the knowledge of bank executives who were aware of the fraud but did nothing to stop it. Banks executives insisted that they knew nothing about the thefts. However, internal e-mails released during discovery in the case showed that executives were discussing the frauds and providing warnings. "YIKES!!!!" "DOUBLE YIKES!!!!" "There is more, but nothing more that I want to put into a note." Warning from a Wachovia bank executive to colleagues that the bank had received 4,500 complaints of fraud in two months from customers who had been fleeced of $400 million by marketing firms who paid the bank large fees for access and on returned checks. "We are making a ton of money from them." What test for resolving ethical dilemmas would have helped the executives at Wachovia reach a better decision as they debated the issue on their e-mails? a. "I was just following orders." b. "This doesn"t really hurt anyone." c. The Front-Page-of-the-Newspaper Test d. "It's a gray area."

Q: Minnesota has a statewide smoking ban for public places. However, the state statute includes an exemption that permits smoking by actors in theatrical performances. In order to take advantage of the exemption, the Old Clover Inn, located in Vadnais Heights, Minnesota, has begun holding theater night, every night. The Old Clover Inn has placed its pool tables in an area that is framed with theater curtains and refers to the pool players as its actors. The Inn also has a stage for its cribbage players who sit and play cribbage and smoke. The Inn calls the nightly production, "As the Clover Turned," and it distributes a playbill that describes the nightly plays as involving "numerous uncredited actors in the role of bar patrons." The Inn distributes buttons for $1 to patrons. The buttons read, "Act Now!" The Minnesota Health Department has warned the Inn that what it is doing is an attempt to circumvent the law. Which statement best describes the Old Clover Inn's approach to ethics? a. Old Clover Inn acts in a socially responsible manner, going above the requirements of the law in running a business. b. Old Clover Inn has found a perfectly legal way of doing business and compliance with the law is one standard for ethics. c. Old Clover Inn believes that ethics requires doing more than the law requires and less than the law allows. d. None of the above

Q: LeAnn Rimes, a country western singer, signed a contract at age 12 with Curb Records. Curb Records is owned by Mike Curb, a long-standing presence in the music industry who began his career with a group known as The Mike Curb Congregation. Under the terms of that contract as it originally existed, and as it was signed by Ms. Rimes' guardians, Ms. Rimes would have been 35 before she had delivered the 21 albums required under the agreement. "At 12, I didn"t understand everything in my contract. All I know is that I really wanted to sing," was the explanation Ms. Rimes offered when she later testified before the California Senate Select Committee on the Entertainment Industry looking into the labor issues surrounding long-term album requirements contracts. Which of the following would apply to Curb Records' conduct with regard to Ms. Rimes? a. Taking unfair advantage b. Conflict of interest c. There is no ethical dilemma because Ms. Rimes' guardians were involved d. Taking something that does not belong to you.

Q: Priscilla Ceballos's 6-year-old daughter is a fan of Hannah Montana and wanted to go to a Hannah Montana concert. A radio station was offering two tickets to the Hannah Montana concert for the child who wrote the winning essay. Ms. Ceballos and her daughter wrote an essay that detailed an account of their husband/father dying in the war on Iraq. The problem was that their husband/father was not in Iraq and certainly not dead. When the fake essay was uncovered, Ms. Ceballos said, "We did the essay, and that's what we did to win. . . We did whatever we could to win." The company revoked the prize and the award of the tickets. Suppose the contest rules did not spell out that the essay had to be based on true and verifiable facts. What could the radio station rely on in revoking the prize and still have public support for its decision? a. The Blanchard/Peale test for ethical dilemmas b. Normative standards c. Stakeholder analysis d. None of the above

Q: Former NBA referee Tim Donaghy entered a guilty plea to two federal felony charges in connection with his bets and tips to others on NBA games. Mr. Donaghy picked teams to win in games he was scheduled to referee. Experts have said that Donaghy committed the equivalent of insider trading on Wall Street by providing outsiders with information about games, players, and referees. He got $5,000 from his tippees for correct picks. Apart from the criminal charges, what category of ethical breach does Mr. Donaghy's conduct fall into? a. Taking what does not belong to you b. Conflict of interest c. Committing interpersonal abuse d. None of the above

Q: The former CEO of Countrywide Mortgage (now a part of Bank of America), offered favorable loans to members of Congress, Countrywide government regulators, and members of the board and officers of Fannie Mae, the quasi-government agency that bought Countrywide's mortgages in the secondary market. The loans were jumbo loans at below-market rates. Countrywide sold 90% of its mortgages to Fannie Mae. Congress was responsible for the creation, funding, and policies of Fannie Mae. The members of Congress who received the Fannie Mae favorable loans sat on House and Senate Banking Committees. Which of the following categories of ethical breaches, if any, applies to this practice? a. Taking things that don"t belong to you b. Taking unfair advantage c. Conflict of interest d. All of the above apply

Q: Which statement best describes the moral of the story in "The Parable of the Sadhu"? a. That the rules and normative standards for mountain climbing are different from our day-to-day rules and that not stopping to help another climber is sometimes the right thing to do. b. That those who are not prepared for the challenges of hiking have to bear the consequences. c. That in our quest for success we sometimes walk right through moral dilemmas without really analyzing them. d. That sometimes, despite working together, we are unable to solve problems and that we should not feel guilty if we have done our best.

Q: The Graduate Management Admissions Council announced that it would begin using a "palm vein" scan to eliminate proxy test taking after the FBI broke up a ring of six test takers who had taken the GMAT for 590 applicants, for a price of $3,000 each. Which ethical category does the conduct of the proxy test takers fit into? a. Taking something that does not belong to you b. Giving or allowing false impression c. Balancing ethical dilemmas d. Organizational abuse

Q: The Graduate Management Admissions Council announced that it was canceling the GMAT scores of 84 applicants and students. The Council found that the students were active users of a now shut-down website, Scoretop.com, a site with origins in China that posted live questions from the GMAT. The site had 5,000 to 6,000 subscribers who paid $30 per month for access, but the Council is only canceling the scores of thoseagainst whom it feels it has an airtight case. Two of the students whose scores were canceled are currently enrolled at the University of Chicago's MBA programandanother has alreadygraduated from Stanford's MBA program. Twelve of the students whose scores were canceled had posted questions on Scoretop.com and the remaining 72 allowed the site to post their testimonials that they had seen the Scoretop.com questions on their GMAT. Ten of the 72 students had applied to Stanford but were denied admission. Which ethical category does the conduct of the students who posted live questions fit into? a. Taking something that does not belong to you b. Balancing ethical dilemmas c. Interpersonal abuse d. Organizational abuse

Q: Customer A has $250 in his account. Six checks, totaling $325, have come in for payment. One check is for $257.00, with the remaining five checks making up the difference to the $325 total. First Bank pays the five smallest checks first, honors the $257.00 with overdraft protection, and charges the customer one overdraft fee. Second Third Bank pays the largest ($257) check first, pays the five remaining smaller checks with overdraft protection, and then charges the customer five overdraft fees. Which of the following is correct?a. If this type of charge is legal; it is ethical.b. This type of charge is an example of taking unfair advantage.c. This type of charge is a conflict of interest.d. This type of charge is not an ethical issue.

Q: There are no laws that cover cutting in line. However, those who do take cuts in line are viewed with disdain by others because: a. Case precedent prohibits it. b. Normative standards govern this behavior. c. There are still criminal penalties for cutting in line. d. The theory of rights covers the issue.

Q: Which is Warren Buffett's test for ethics? a. The Categorical Imperative b. The Front-Page-of-the-Newspaper test c. The Wall Street Journal model d. Ethical Egoism e. None of the above

Q: Which best describes the Categorical Imperative? a. Act in one's self-interest b. All rights exist by Divine Command c. Circumstantial ethics d. Behave in a manner that you are willing to have imposed on the whole e. None of the above

Q: The contractarians are best represented by: a. Immanuel Kant. b. Robert Nozick. c. Thomas Hobbes. d. John Rawls. e. None of the above

Q: Which of the following ethical theorists subscribes to self-interest? a. Ayn Rand b. Adam Smith c. Thomas Hobbes d. a and c only e. All of the above

Q: Stephen Ambrose, a popular historian with many books to his credit, admitted that some segments of one of his recent books had language taken from the books of other historians that was not in quotes. Mr. Ambrose did footnote the work of authors he relied upon in doing his book. a. The work of an author is protected by copyright laws. b. The use of quotes without attribution is not a violation of the law. c. The use of the material is fair use and need not be footnoted. d. Both b and c e. None of the above

Q: An ad contains the following: "Restaurant Critic, Jose Winfrey, on Mama Leone's Italian Eatery," Mama Leone's is simply the best. It is a surprising new entrant into the competitive Italian bistro market and it is a mighty one."" Jose Winfrey is the cousin of the owner of Mama Leone's and knows restaurants, but is not a critic for any publication or other media outlet. The ad: a. Creates a false impression. b. Raises no ethical questions. c. Is legal and ethical because it doesn"t state where he is a critic. d. Both b and c e. None of the above

Q: Which of the following would be a breach of trust and ethics? a. Sharing a new product idea with a prospective employer b. Leaving your current employment for a higher paying job c. Leaving your current employment for a job with more flexibility d. Taking the skills you have learned at a current job to a new job e. All of the above are breaches of trust and ethics