Deck 9: Values and the Virtuous Manager

Question 1

By December 2001, Enron was_______ .

A) a well-run multinational corporation
B) an innovative success story
C) an example of corporate leadership
D) a "Ponzi" scheme

Answer 1

a "Ponzi" scheme

Question 2

Enron started as_______ .

A) the result of a merger of two traditional companies
B) a maverick oil and gas concern
C) an energy trading concern
D) a South American company

Answer 2

the result of a merger of two traditional companies

Question 3

Enron had a balance sheet littered with _______ .

A) debts
B) unusually creative accounting entries
C) subordinate notes
D) responsibilities of its parent company

Answer 3

unusually creative accounting entries

Question 4

Enron fell apart because of _______ .

A) the death of its chairman
B) the collapse of the oil market
C) its inability to raise funds to cover its "off balance sheet" transactions
D) excess liquidity

Question 5

Enron was_______ .

A) a company with no assets
B) a limited liability partnership
C) a company with no international assets
D) the biggest bankruptcy in U.S. history

Question 6

Bureaucratic ethics is based on_______ .

A) too many people making decisions
B) the Protestant Ethic
C) managers' rules for success
D) individual affluence

Question 7

In modern American Bureaucratic companies _______ .

A) details are pushed up and credit is pushed up
B) details are pushed down and credit is pushed up
C) details are pushed down and credit is pushed down
D) details are pushed up and credit is pushed down

Question 8

Ethics in a Bureaucracy most often resembles _______ .

A) a moral maze
B) a straight line
C) a ellipse
D) a jig-saw puzzle

Question 9

Business managers tend to be morally_______ .

A) weak
B) congruent
C) incongruent
D) mute

Question 10

Moral talk by managers is seen as:

A) a threat to the image of effectiveness
B) helpful to efficiency
C) both of the above
D) none of the above

Question 11

The Sarbanes-Oxley Act affects auditors.

Question 12

John C. Coffee, Jr. blames the rise in laborers' compensation for much of the corporate abuses of the 1990's.

Question 13

All aggressive companies must eventually restate earnings.

Question 14

The Sarbanes-Oxley Act affected directors of publicly traded companies.

Question 15

The Sarbanes-Oxley Act affected officers of publicly traded companies.

Question 16

Lawyers may never report the fraud of their clients.

Question 17

Enron owned natural gas pipelines.

Question 18

Enron made a fortune in broadband services.

Question 19

Arthur Anderson served as Enron's auditors.

Question 20

Arthur Anderson always used the highest objective accounting standards with respect to Enron.