Question 1

Farrell compares derivatives to the black market because:

Accepted Answer

A)  Derivatives are illegal, like black market sales. 
B)  Derivatives are profitable, like selling on the black market. 
C)  Derivatives are a way to avoid taxes and government regulations. 
D)  Both (b) and (c) 
E)  All of (a), (b), and (c) 
A)  Derivatives are illegal, like black market sales. 
B)  Derivatives are profitable, like selling on the black market. 
C)  Derivatives are a way to avoid taxes and government regulations. 
D)  Both (b) and (c) 
E)  All of (a), (b), and (c)

Question 2

Explain why derivatives are, as Partnoy says, "a horror show." How can we make derivatives less dangerous and frightening? Or should they be abolished altogether?

Accepted Answer

Derivatives are often referred to as a "

Question 3

The dismantling of Arthur Andersen cost only 10,000 employees their jobs.

Accepted Answer

A) True 
 B)False

Question 4

Explain how "managed earnings" might threaten the credibility of the U.S. financial reporting system. Should we abolish managed earnings? Why is it important to manage earnings?

Accepted Answer

Managed earnings refers to the practice

Question 5

Using a concrete example from your own life, use the "Ethical Decision Making" chart to solve a moral dilemma. Be sure to walk yourself carefully through each step on paper. Was it helpful? Did you come to the same conclusion that you did when you actually worked through the problem?

Accepted Answer

One moral dilemma I faced in my own life

Question 6

Farrell believes that derivatives could not have much effect on the world market.

Accepted Answer

A) True 
 B)False

Question 7

The __________ heuristic is the tendency people have to give inordinate weight to anecdotal social cues and markers when making judgments of economic value.

Accepted Answer

The answer of The __________ heuristic is the tendency people...

Question 8

Ferguson writes that the 2008 financial crash was triggered by defaults on ___________ mortgages.

Accepted Answer

The answer of Ferguson writes that the 2008 financial crash...

Question 9

Warren Buffett once compared good businesses to old-growth trees: they take a long time to mature, and once they have matured, they tend to stick around. Why might today's market conditions discourage the planting and care of, in Buffett's metaphor, slow-growing "old-growth" trees? How might accountants and other financial experts encourage the "long view" of a company's financial growth?

Accepted Answer

Today's market conditions might discoura

Question 10

Using the concepts of the fiduciary relationship as defined by Moore and Partnoy, is the system of investing in derivatives and hedge funds ethically sound?

Accepted Answer

The concept of a fiduciary relationship,

Question 11

In Cohen's article, what do Arthur Anderson employees say about the Enron scandal?

Accepted Answer

A)  The firm pressured employees to "cook" the books. 
B)  The firm was doing "drive-by" auditing. 
C)  The firm was made into a scapegoat and unfairly blamed. 
D)  The firm was using the same accounting practices as most other firms. 
E)  Both (c) and (d) 
A)  The firm pressured employees to "cook" the books. 
B)  The firm was doing "drive-by" auditing. 
C)  The firm was made into a scapegoat and unfairly blamed. 
D)  The firm was using the same accounting practices as most other firms. 
E)  Both (c) and (d)

Question 12

Thomas Fischer, former managing partner for the Milwaukee office of Arthur Andersen, blames the recent increase in corporate scandals on what he calls:

Accepted Answer

A)  Flying under the radar 
B)  False delusions 
C)  Renewed economic pressures 
D)  Social and economic blow-off 
E)  Social and economic blindness 
A)  Flying under the radar 
B)  False delusions 
C)  Renewed economic pressures 
D)  Social and economic blow-off 
E)  Social and economic blindness

Question 13

In the 1990s, quantitative analysts used mathematical formulas to price derivatives and predict the market. According to Ferguson, why didn't these formulas help them avoid the crisis of 2008?

Accepted Answer

A)  The formulas were overly complex and hard to use. 
B)  Computers were not powerful enough in the 1990s. 
C)  The markets are affected by human emotion, which is hard to calculate. 
D)  The markets change over time, and the formulas stayed the same. 
E)  Dishonest analysts used the formulas for their own benefit. 
A)  The formulas were overly complex and hard to use. 
B)  Computers were not powerful enough in the 1990s. 
C)  The markets are affected by human emotion, which is hard to calculate. 
D)  The markets change over time, and the formulas stayed the same. 
E)  Dishonest analysts used the formulas for their own benefit.

Question 14

The concept of a level playing field is often used to symbolize __________.

Accepted Answer

The answer of The concept of a level playing field...

Question 15

Arthur Andersen was the accounting firm that worked for __________.

Accepted Answer

The answer of Arthur Andersen was the accounting firm that...

Question 16

Explain the two chief harm-based arguments against insider trading. What does Moore say about these arguments? Can you identify another problem with either argument?

Accepted Answer

The two chief harm-based arguments again

Question 17

One billionaire trader, George Soros, has warned that trading __________ will cause extreme instability and threaten to dismantle society itself.

Accepted Answer

The answer of One billionaire trader, George Soros, has warned...

Question 18

The type of derivatives that seem to be the most troublesome are:

Accepted Answer

A)  Traditional derivatives 
B)  Derivative securities 
C)  Exchange-traded derivatives 
D)  Derivatives that are not traded on any exchange 
E)  All derivatives 
A)  Traditional derivatives 
B)  Derivative securities 
C)  Exchange-traded derivatives 
D)  Derivatives that are not traded on any exchange 
E)  All derivatives

Question 19

The derivatives bubble has grown parallel to the subprime credit meltdown, triggering a(n) __________.

Accepted Answer

The answer of The derivatives bubble has grown parallel to...

Question 20

According to Boatright, the main aim of federal securities laws is expressed by the phrase __________.

Accepted Answer

fair and o

Farrell compares derivatives to the black market because:

Explain why derivatives are, as Partnoy says, "a horror show." How can we make derivatives less dangerous and frightening? Or should they be abolished altogether?

The dismantling of Arthur Andersen cost only 10,000 employees their jobs.

Explain how "managed earnings" might threaten the credibility of the U.S. financial reporting system. Should we abolish managed earnings? Why is it important to manage earnings?

Using a concrete example from your own life, use the "Ethical Decision Making" chart to solve a moral dilemma. Be sure to walk yourself carefully through each step on paper. Was it helpful? Did you come to the same conclusion that you did when you actually worked through the problem?

Farrell believes that derivatives could not have much effect on the world market.

The __________ heuristic is the tendency people have to give inordinate weight to anecdotal social cues and markers when making judgments of economic value.

Ferguson writes that the 2008 financial crash was triggered by defaults on ___________ mortgages.

Using the concepts of the fiduciary relationship as defined by Moore and Partnoy, is the system of investing in derivatives and hedge funds ethically sound?

In Cohen's article, what do Arthur Anderson employees say about the Enron scandal?

Thomas Fischer, former managing partner for the Milwaukee office of Arthur Andersen, blames the recent increase in corporate scandals on what he calls:

In the 1990s, quantitative analysts used mathematical formulas to price derivatives and predict the market. According to Ferguson, why didn't these formulas help them avoid the crisis of 2008?

The concept of a level playing field is often used to symbolize __________.

Arthur Andersen was the accounting firm that worked for __________.

Explain the two chief harm-based arguments against insider trading. What does Moore say about these arguments? Can you identify another problem with either argument?

One billionaire trader, George Soros, has warned that trading __________ will cause extreme instability and threaten to dismantle society itself.

The type of derivatives that seem to be the most troublesome are:

The derivatives bubble has grown parallel to the subprime credit meltdown, triggering a(n) __________.

According to Boatright, the main aim of federal securities laws is expressed by the phrase __________.

On the Job: Everyday Ethics at Work

The Check Is in the Mail": Honesty and Trust in Business

Who Gets What and Why? Fairness and Justice

Is the Social Responsibility of Business...to Increase Its Profits"?: Social Responsibility and Stakeholder Theory

When Innovation Bytes Back: Ethics and Technology

The Art of Seduction: the Ethics of Advertising, Marketing, and Sales

Things Fall Apart: Product Liability and Consumers

You Know How to Whistle, Dont You?": Whistle-Blowing, Company Loyalty, and Employee Responsibility

Think Local, Act Global: International Business

Working With Mother Nature: Environmental Ethics and Business Ecology

When the Buck Stops Here: Leadership

Whos Minding the Store?: The Ethics of Corporate Governance

Is Everything for Sale?: The Future of the Free Market

The Good Life

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Exam 3: Money, How We Get It, and Where It Goes: Accounting, Finance, and Investment Ethics

Farrell compares derivatives to the black market because:

Explain why derivatives are, as Partnoy says, "a horror show." How can we make derivatives less dangerous and frightening? Or should they be abolished altogether?

The dismantling of Arthur Andersen cost only 10,000 employees their jobs.

Explain how "managed earnings" might threaten the credibility of the U.S. financial reporting system. Should we abolish managed earnings? Why is it important to manage earnings?

Using a concrete example from your own life, use the "Ethical Decision Making" chart to solve a moral dilemma. Be sure to walk yourself carefully through each step on paper. Was it helpful? Did you come to the same conclusion that you did when you actually worked through the problem?

Farrell believes that derivatives could not have much effect on the world market.

The __________ heuristic is the tendency people have to give inordinate weight to anecdotal social cues and markers when making judgments of economic value.

Ferguson writes that the 2008 financial crash was triggered by defaults on ___________ mortgages.

Using the concepts of the fiduciary relationship as defined by Moore and Partnoy, is the system of investing in derivatives and hedge funds ethically sound?

In Cohen's article, what do Arthur Anderson employees say about the Enron scandal?

Thomas Fischer, former managing partner for the Milwaukee office of Arthur Andersen, blames the recent increase in corporate scandals on what he calls:

In the 1990s, quantitative analysts used mathematical formulas to price derivatives and predict the market. According to Ferguson, why didn't these formulas help them avoid the crisis of 2008?

The concept of a level playing field is often used to symbolize __________.

Arthur Andersen was the accounting firm that worked for __________.

Explain the two chief harm-based arguments against insider trading. What does Moore say about these arguments? Can you identify another problem with either argument?

One billionaire trader, George Soros, has warned that trading __________ will cause extreme instability and threaten to dismantle society itself.

The type of derivatives that seem to be the most troublesome are:

The derivatives bubble has grown parallel to the subprime credit meltdown, triggering a(n) __________.

According to Boatright, the main aim of federal securities laws is expressed by the phrase __________.

On the Job: Everyday Ethics at Work

The Check Is in the Mail": Honesty and Trust in Business

Who Gets What and Why? Fairness and Justice

Is the Social Responsibility of Business...to Increase Its Profits"?: Social Responsibility and Stakeholder Theory

When Innovation Bytes Back: Ethics and Technology

The Art of Seduction: the Ethics of Advertising, Marketing, and Sales

Things Fall Apart: Product Liability and Consumers

You Know How to Whistle, Dont You?": Whistle-Blowing, Company Loyalty, and Employee Responsibility

Think Local, Act Global: International Business

Working With Mother Nature: Environmental Ethics and Business Ecology

When the Buck Stops Here: Leadership

Whos Minding the Store?: The Ethics of Corporate Governance

Is Everything for Sale?: The Future of the Free Market

The Good Life

Filters