32. Which of the following statements best describes the ethical position of Enron executives? a. If it’s legal, its ethical. b. If we are under pressure to keep the stock price up, we do what it takes. c. Everybody does it. d. both a and b ANS: D PTS: 1 NAT: AACSB: Ethics TOP: ethical views 33. of the following is not a requirement of Sarbanes-Oxley? a. code of ethics b. ethics hotline (anonymous) c. ethics officer d. both a and c ANS: D PTS: 1 NAT: AACSB: Ethics TOP: 34. Sarbanes-Oxley is: a. a philosophical school that serves society first b. federal legislation that imposed ethics requirements on corporations c. an international accounting treaty d. the former CEO of World.Com ANS: B PTS: 1 NAT: Ethics TOP: 35. Dennis Kozlowski, the former CEO of Tyco, who was famous for this lavish party and decorating expenses, said that he asked that all of his pay packages, loans, and expenditures be authorized by the board and company policy. a. The authorizations make all the expenses and loans ethical. b. Mr. Kozlowski could have taken unfair advantage of the board and his position. c. Being able to do something procedurally correct does not mean it is ethical. d. both b and c ANS: D PTS: 1 NAT: AACSB: Ethics TOP: ethical conduct 36. Which of the following countries is one of the best examples of the long-term impact of foreign business corruption? a. Russia b. Mexico c. Italy d. Japan ANS: C PTS: 1 NAT: Ethics TOP: international ethics
b. companies lose money when they are socially responsible c. economic studies show businesses that are socially responsible make less money d. all of the above ANS: A PTS: 1 NAT: AACSB: Ethics TOP: role of business in society 41. Colleges and universities are given complimentary trips, staff assistance, marketing stipends and other in-kind materials by companies that provide study-abroad programs for students in exchange for the colleges and universities marketing the programs exclusively to their student bodies. Students are not aware of the benefits the travel-abroad companies provide to their colleges and universities. Which category of ethical dilemma applies here? a. conflict of interest b. hiding information c. taking unfair advantage d. all of the above ANS: D PTS: 1 NAT: AACSB: Ethics TOP: ethical dilemmas 42. Tim Donaghy was a referee for the NBA. Mr. Donaghy began betting in 2003 on NBA games. He also provided tips to other gamblers on who would win games in which he was serving as a referee. Mr. Donaghy’s actions: a. were illegal federal law, but not an ethical breach. b. were a conflict of interest. c. were not a breach of ethics because he used the money he made for a summer camp for underprivileged children. d. none of the above ANS: D PTS: 1 NAT: AACSB: Ethics TOP: ethical breaches 43. Michael Chertoff is the head of the Department of Homeland Security. Mr. Chertoff pays 25 cents to the federal government each time a personal fax comes to him at his federal office. Mr. Chertoff’s actions: a. are meant to establish an effective tone at the top. b. are unnecessary because there is no ethical breach when you have no control over who sends faxes. c. are inconsequential for the agency. d. none of the above ANS: A PTS: 1 NAT: Ethics TOP: ethical culture 44. “If you what we’re doing now is bad, you should have seen 10 years ago at this company...” is an example of: a. ethical analysis. b. rationalization. c. comparative or relative ethics. d. both a and c ANS: B PTS: 1 NAT: Ethics TOP: rationalization