Question 1

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:

Accepted Answer

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

Question 2

The mayor owns property next to one of the proposed sites for the city's new baseball stadium. The mayor has a conflict of interest and should not vote on the location of the stadium when the city council takes action on the site.

Accepted Answer

A) True 
 B)False

Question 3

Ethical lapses involve gradual decision processes.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

An application for graduate school admission at Arizona State University includes the following request for information: Please list all institutions attended since graduation from high school.
Marie Davis, a returning student, is applying for admissions to the Masters in Architecture program. Marie attended the University of Arizona for one semester in 1976. Marie had a substance abuse problem and did not attend many of her classes. She left the University of Arizona before classes ended that semester. She did not take her final exams and earned 15 credit hours of "E" for that semester. After 8 years, the policy of the University of Arizona is to expunge the records of non-matriculating students. Marie's record was expunged in December 1994.

Accepted Answer

A)  Marie need not disclose her attendance at the University of Arizona. 
B)  Marie should disclose her attendance at the University of Arizona. 
C)  Since Marie did not matriculate according to the University, she did not attend the University of Arizona. 
D)  None of the above

Question 6

You had quite a night last night of partying. Because of excessive drinking, you are unable to get to work today. When you call your supervisor you:

Accepted Answer

A)  Should just say you have the flu. 
B)  Should just say you are sick. 
C)  Should disclose the prior night's activity. 
D)  None of the above

Question 7

Goldman did not pay a fine to the SEC.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

How many months in prison was Martha Stewart sentenced to?

Accepted Answer

A)  Two months 
B)  Five months 
C)  Ten Months 
D)  Two years

Question 11

It would not be unethical for you to accept two employment offers in case one fell through.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following feels that business is like a big poker game and that bluffing in business is expected and acceptable?

Accepted Answer

A)  Laura Nash 
B)  Peter Drucker 
C)  Ayn Rand 
D)  Albert Carr

Question 13

A supplier has just been awarded a large contract by your company. As an employee in purchasing, you were largely responsible for awarding that supplier the contract. The supplier's sales representative has just called and would like to take you to lunch to thank you for the support. Going to lunch with the sale representative does not present any ethical problems.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Attending a class on company time would be unethical.

Accepted Answer

A) True 
 B)False

Question 16

What was the name of the anti-cancer drug?

Accepted Answer

A)  ImClone 
B)  MSL 
C)  Arbitrage 
D)  Erbitux

Question 17

What company did Martha Stewart invest in because of the company's great potential with an anti-cancer drug?

Accepted Answer

A)  Martha Stewart Living 
B)  Martha Stewart Omnimedia 
C)  Martha Stewart Home and Health 
D)  ImClone

Question 18

Albert Carr likens business to a poker game.

Accepted Answer

A) True 
 B)False

Question 19

A newspaper reporter is interviewing you about your experiences in working for a member of Congress. You have indicated you have information about his private life but will not share it. The reporter responds, "Tell me, just between you and me." You share the information and a quote from you on the private life of the member of Congress appears in the newspaper the next day. The reporter was unethical in violating a trust.

Accepted Answer

A) True 
 B)False

Question 20

Goldman was originally founded as a partnership.

Accepted Answer

A) True 
 B)False

Exam 2: Solving Ethical Dilemmas and Personal Introspection

The mayor owns property next to one of the proposed sites for the city's new baseball stadium. The mayor has a conflict of interest and should not vote on the location of the stadium when the city council takes action on the site.

Ethical lapses involve gradual decision processes.

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

You had quite a night last night of partying. Because of excessive drinking, you are unable to get to work today. When you call your supervisor you:

Goldman did not pay a fine to the SEC.

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

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

How many months in prison was Martha Stewart sentenced to?

It would not be unethical for you to accept two employment offers in case one fell through.

Which of the following feels that business is like a big poker game and that bluffing in business is expected and acceptable?

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

Attending a class on company time would be unethical.

What was the name of the anti-cancer drug?

What company did Martha Stewart invest in because of the company's great potential with an anti-cancer drug?

Albert Carr likens business to a poker game.

Goldman was originally founded as a partnership.