Deck 12: White-Collar Crime

Question 1

White-collar crime accounts for __________ damage to society than conventional crime.

A) much less
B) about the same amount of
C) a little more
D) much more

Answer 1

D

Question 2

Occupational crimes are committed by individuals in the course of their occupations for

A) career advancement.
B) personal gain.
C) revenge against the employer.
D) unknown reasons.

Answer 2

B

Question 3

Corporate crimes are committed by individuals in corporations for

A) career advancement.
B) personal gain.
C) corporate gain.
D) political reasons.

Answer 3

C

Question 4

Corporate crimes are defined in the textbook as

A) illegal and socially injurious acts of revenge or malevolence that occur for the sole purpose of furthering corporate goals.
B) legal and socially acceptable acts of revenge or malevolence that occur for the sole purpose of furthering corporate goals.
C) legal and socially acceptable acts of intent or indifference that occur for the purpose of furthering corporate goals, and that physically and/or economically abuse individuals in the United States and/or abroad.
D) illegal and/or socially injurious acts of intent or indifference that occur for the purpose of furthering corporate goals, and that physically or economically abuse individuals in the United States and abroad.

Question 5

Transnational corporate crime often results in

A) crimes perpetrated on innocent victims around the world, who then go to the UN for relief.
B) crimes perpetrated on people of other societies, ranging from bribery to export of hazardous products to dangerous working conditions.
C) goods and services being exported from the United States to help those who are victims of transnational corporate crime.
D) visible and easily detected victimization of those who voluntarily buy the corporation's products.

Question 6

Prior to the rise of industrial capitalism, the traditional rights of peasants were to gather raw materials for personal or family use. With the rise of industrial capitalism, this practice has been reinterpreted as

A) inventory shrinkage.
B) immoral behavior resulting from greed.
C) an enshrined right to "pilfer" a certain amount of goods.
D) employee theft.

Question 7

Employee theft is defined as

A) marketing unknown products obtained from a corporate executive.
B) stealing services from the employer to sell at a profit on the street.
C) stealing merchandise and job-related items from one's workplace.
D) stealing merchandise and job-related items from a spouse's workplace.

Question 8

Employee theft accounts for how much annual economic loss?

A) $50 billion
B) $100 billion
C) $150 billion
D) $400 billion

Question 9

Self-report studies indicate that __________ percent of employees admit to some sort of theft from the workplace.

A) 25
B) 50
C) 75
D) 100

Question 10

Ditton refers to employee theft as

A) full-time crime.
B) part-time crime.
C) racially motivated.
D) economically motivated.

Question 11

Ditton's concept of "part-time crime" refers to

A) individuals who spend more hours and minutes breaking the law than someone involved in full-time crime, but who sees his or her criminal activity as nominal.
B) individuals who spend more hours and minutes breaking the law, but only on special occasions.
C) individuals who spend part of their weekly schedule devoted to criminal activity and the rest of their time to legitimate occupations.
D) none of the above.

Question 12

Part-time employee theft was identified by Ditton as including which of the following?

A) fencing, fiddling, and dealing
B) running, stealing, and fencing
C) stealing, dealing, and running
D) fiddling, stealing, and dealing

Question 13

Fiddling, according to Ditton's typology, occurs when

A) salespeople undercharge customers for goods and services.
B) salespeople overcharge customers for the goods or services they sell.
C) musical instruments are stolen and sold as "collectible antiques."
D) electronic equipment is stolen by employees for personal enjoyment.

Question 14

Stealing, according to Ditton's typology, occurs when

A) a victim of theft steals from the suspected thief.
B) an employee steals from another employee.
C) an employee steals from the company directly.
D) "pilfering rights" have been eliminated.

Question 15

Dealing, according to Ditton's typology, occurs when there is

A) a cost-benefit analysis that doles out the goods and services for the highest profit.
B) a secret deal on the cost of the item that is not reported for tax purposes.
C) gambling based on card games that determine the owner of the stolen goods.
D) a secret sale of goods for the seller's and the buyer's personal gain.

Question 16

Mars' research on employee theft reveals which four different types of employees?

A) conformists, innovators, retreatists, and rebels
B) hawks, donkeys, wolves, and vultures
C) delinquents, hard-core criminals, animals, and atavists
D) carriers, runners, relays, and fencers

Question 17

According to Mars' research, the "hawks" are those employees who

A) have little autonomy and lack control over their labor power, but whose work requires significant contact with others.
B) have considerable autonomy but work within a loosely structured setting.
C) have little autonomy, are not isolated from others, and have no control over their labor power.
D) maintain individuality, autonomy, and control over their own labor power, and have infrequent contact with others.

Question 18

According to Mars' research, the "donkeys" are those employees who

A) have little autonomy and lack control over their labor power, but whose work requires significant contact with others.
B) have considerable autonomy but work within a loosely structured setting.
C) have little autonomy, are not isolated from others, and have no control over their labor power.
D) maintain individuality, autonomy, and control over their own labor power, and have infrequent contact with others.

Question 19

According to Mars' research, the "wolves" are those employees who

A) have little autonomy and lack control over their labor power, but whose work requires significant contact with others.
B) have considerable autonomy but work within a loosely structured setting.
C) have little autonomy, are not isolated from others, and have no control over their labor power.
D) maintain individuality, autonomy, and control over their own labor power, and have infrequent contact with others.

Question 20

According to Mars' research, the "vultures" are those employees who

A) have little autonomy and lack control over their labor power, but whose work requires significant contact with others.
B) have considerable autonomy but work within a loosely structured setting.
C) have little autonomy, are not isolated from others, and have no control over their labor power.
D) maintain individuality, autonomy, and control over their own labor power, and have infrequent contact with others.

Question 21

Embezzlement involves the theft of property and resources from the employer for

A) a temporary fix.
B) personal gain.
C) permanent relief.
D) revenge.

Question 22

Embezzlement can involve which of the following?

A) taking from the racks
B) taking from the till
C) manipulating the books
D) both b and c

Question 23

One method of computer-mediated embezzlement is known as

A) hot-dog hawking.
B) baloney blowing.
C) salami slicing.
D) bratwurst baiting.

Question 24

One estimate revealed that the average computer crime of embezzlement nets

A) $500,000.
B) $300,000.
C) $100,000.
D) an amount that is unknown and unknowable.

Question 25

Collective embezzlement is a crime against the corporation committed by

A) the corporate customers.
B) low-level employees.
C) the corporation executives.
D) the taxpayers.

Question 26

The victims of collective embezzlement scams are usually

A) the corporate customers.
B) low-level employees.
C) the corporation executives.
D) the taxpayers.

Question 27

In 1980, the Federal Savings and Loan Insurance Company increased the insurance for secured deposits from __________ to __________, thus paving the way for the S&L scandal.

A) $15,000, $30,000
B) $40,000, $100,000
C) $50,000, $150,000
D) $70,000, $200,000

Question 28

Of the following, which are four types of collective embezzling?

A) Land flips, nominee loans, reciprocal lending, and linked financing.
B) Land loans, nominee flips, reciprocal financing, and linked lending.
C) Rollover accounts, secret IRAs, tax-free savings, and conjoint borrowing.
D) Rollover IRAs, secret accounts, tax-free borrowing, and conjoint savings.

Question 29

What usually occurs in a "land flip"?

A) A deposit is made under the condition that the person making the deposit receives a loan in return, which will be defaulted. The S&L fails, and the taxpayers bail everyone out.
B) A "straw borrower" receives a kickback for having the loan in his or her name, and someone else pockets the money and defaults on the loan.
C) Land is sold by the original owner at market value, and a fraudulent appraisal results in the land being resold for twice the market value, which results in profits for all involved.
D) Executives from different S&Ls make loans to each other.

Question 30

What usually occurs in a "nominee loan"?

A) A deposit is made under the condition that the person making the deposit receives a loan in return, which will be defaulted. The S&L fails, and the taxpayers bail everyone out.
B) A "straw borrower" receives a kickback for having the loan in his or her name, and someone else pockets the money and defaults on the loan.
C) Land is sold by the original owner at market value, and a fraudulent appraisal results in the land being resold for twice the market value, which results in profits for all involved.
D) Executives from different S&Ls make loans to each other.

Question 31

What usually occurs in a "reciprocal lending"?

A) A deposit is made under the condition that the person making the deposit receives a loan in return, which will be defaulted. The S&L fails, and the taxpayers bail everyone out.
B) A "straw borrower" receives a kickback for having the loan in his or her name, and someone else pockets the money and defaults on the loan.
C) Land is sold by the original owner at market value, and a fraudulent appraisal results in the land being resold for twice the market value, which results in profits for all involved.
D) Executives from different S&Ls make loans to each other.

Question 32

What usually occurs in a "linked financing"?

A) A deposit is made under the condition that the person making the deposit receives a loan in return, which will be defaulted. The S&L fails, and the taxpayers bail everyone out.
B) A "straw borrower" receives a kickback for having the loan in his or her name, and someone else pockets the money and defaults on the loan.
C) Land is sold by the original owner at market value, and a fraudulent appraisal results in the land being resold for twice the market value, which results in profits for all involved.
D) Executives from different S&Ls make loans to each other.

Question 33

Physician fraud is a common form of

A) insider trading.
B) occupational fraud.
C) corporate violence.
D) corporate fraud.

Question 34

What is the annual cost of Medicare and Medicaid fraud?

A) $1 million
B) $5 million
C) $4 billion
D) $100 billion

Question 35

Insider trading involves the use of inside information to make a big profit in the

A) stock market.
B) gambling business.
C) pharmaceutical industry.
D) medical profession.

Question 36

Corporate violence includes the following actions, EXCEPT

A) toxic dumping.
B) the failure to provide safety equipment to employees.
C) the sale and marketing of dangerous pharmaceuticals.
D) intentional interpersonal homicide.

Question 37

In the automobile industry, several examples illustrate that it is sometimes cheaper for manufacturers to avoid recalls of their vehicles and

A) arrange to meet the families of those killed in crashes.
B) hire more people to build more vehicles.
C) risk potential lawsuits in cases where people might be injured or killed while riding in these vehicles.
D) go public with the data that demonstrated their vehicles were faulty by design.

Question 38

With the faulty steel-belted radial tires produced and marketed by Firestone, thousands of accidents occurred, forty-one people were killed, and the company was

A) convicted of manslaughter.
B) fined $50,000.
C) never prosecuted.
D) put out of business.

Question 39

Corporations in the United States produce nearly 292 million tons of toxic waste every year and __________ percent of it is improperly disposed-contaminating food, water, and air.

A) 20
B) 40
C) 70
D) 90

Question 40

Corporate theft differs from conventional theft because corporate theft involves

A) no face-to-face interaction, or entering a building illegally.
B) taking property illegally.
C) taking money illegally.
D) direct contact between offender and victim.

Question 41

Advertising products in the United States can be __________, but it cannot be __________, according to the law.

A) hyperbolic, accurate
B) deceptive, false
C) false, deceptive
D) accurate, hyperbolic

Question 42

When Jello advertises that "every kid in America loves Jello brand gelatin," they are making a

A) deceptive and illegal claim.
B) false, but legal, exaggerated claim.
C) blatantly false and deceptive claim.
D) basically true and accurate claim.

Question 43

Price-fixing occurs when corporations conspire to set prices artificially high on similar products and then

A) deceptively advertise those products.
B) one company offers to "take the fall" for the rest.
C) each company makes more profit as a result.
D) consumers are offered more competitive prices.

Question 44

Large corporations, with annual sales that exceed $1 billion, are responsible for how much transnational corporate crime?

A) 25 percent
B) 50 percent
C) 75 percent
D) 100 percent

Question 45

Transnational corporations consider bribery __________ in the production of commodities around the world.

A) a small cost
B) a significant problem
C) an illegal and immoral act
D) out of bounds

Question 46

Braithwaite argues that bribing government officials by businesses entices governments to

A) line the public coffers with much needed money.
B) provide jobs for their citizens.
C) report bribe offers to law enforcement officials for effective prosecution.
D) act against the public interest and in the interest of the company.

Question 47

How many people were killed in the first week after the Union Carbide chemical leak in Bhopal, India?

A) 500
B) 1,000
C) 4,000
D) 8,000

Question 48

What is the Dalkon Shield?

A) The legal strategy used by the Enron defense team.
B) The $11 piece of metal that could have prevented Pinto gas tanks from exploding.
C) An IUD manufactured by A. H. Robbins that was sold unsterilized in more than 80 countries.
D) The NAFTA clause that results in small fines for companies that fail to inform their workers in Mexico that asbestos is present.

Question 49

Who is Kenneth Lay?

A) The Halliburton executive convicted of bribing Iraqi government officials.
B) An Enron executive who earned $146 million in options trades while Enron employees lost their retirement funds.
C) The architect of Wall Street's largest and longest investor scheme.
D) The friend of Martha Stewart and founder of ImClone, Inc., who plead guilty to insider trading.

Question 50

What is a Ponzi scheme?

A) The practice of shipping chemicals illegal to sell in the United States to other nations where they are sold.
B) A form of real estate fraud involving kickbacks for loans made to nonexistent buyers.
C) A fraud where initial investors in a nonexistent enterprise receive returns that are paid using funds from later investors.
D) A form of collective embezzlement that uses computers to systematically shift illegal funds among banks and businesses.

Question 51

"Taking from the till" and "manipulating the books" are examples of collective embezzlement.

Question 52

Psychiatrists are more likely than other specialists to be involved in Medicare and Medicaid fraud.

Question 53

Unnecessary surgeries result in tens of thousands of deaths every year.

Question 54

Corporate violence causes far more deaths than does street crime.

Question 55

Crimes of interpersonal violence result in far more injury and suffering than crimes of corporate violence every year.

Question 56

Price-fixing results in lower prices for consumers and better competition among manufacturers of similar products.

Question 57

Advertising in the United States can be false, but not deceptive, according to the law.

Question 58

Transnational corporate bribery results in thousands of corrupt deals and hundreds of government officials being thrown out of office.

Question 59

Corporate dumping occurs when companies unload their unwanted inventory, for whatever reasons, onto markets illegally.

Question 60

Dangerous working conditions are a result of transnational corporations finding Third-World countries that do not have strict safety regulations, setting up shop, and paying the workers minimally.

Question 61

Price-fixing is probably the most expensive form of corporate theft.

Question 62

The worst corporate offenders are small, regional corporations.

Question 63

Street crime injures more individuals than corporate violence.

Question 64

It is very easy to identify and correct the effects of corporate violence.

Question 65

White-collar crime receives much less attention from the media than conventional crime.

Question 66

Martha Stewart was convicted and served time for insider trading.

Question 67

Since the passage of NAFTA, working conditions have improved in Mexico.

Question 68

Transnational bribery benefits Third-World leaders who nonetheless make it difficult for U.S. transnationals to invest in their countries.

Question 69

Although transnational bribery enriches both foreign leaders and transnational corporate executives, the bribes have very little effect on the overall economy of the foreign country.

Question 70

Compare and contrast conventional crime and white-collar crime. In addition to addressing at least two similarities and two differences, be sure to explain what conventional and white-collar crime refer to.

Question 71

Write a brief essay that demonstrates your understanding of collective embezzling. What is collective embezzling? How does it differ from traditional embezzling? As part of your answer be sure to identify and briefly describe the spectacular example that led to the concept in the 1990s. Who were the typical victims and perpetrators? What legal changes facilitated the crimes?

Question 72

White-collar crime is a large category that contains multiple types of crimes. Illustrate your understanding of the nature of white-collar crime by explaining what it is and identifying and briefly explaining the three major types of white-collar offenses.

Question 73

When most people think of violent crime, they only refer to acts of interpersonal violence. However, corporations also engage in violent crimes. Write a brief essay that illustrates your understanding of corporate violence by briefly explaining and illustrating the range of acts that fall under the "corporate violence" rubric.