Question 1

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

Accepted Answer

A) True 
 B)False  False

Question 2

Enron made a fortune in broadband services.

Accepted Answer

A) True 
 B)False  False

Question 3

Business managers tend to be morally_______ 	.

Accepted Answer

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

Question 4

Bureaucratic ethics is based on_______ 	.

Accepted Answer

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

Question 5

Ethics in a Bureaucracy most often resembles _______	.

Accepted Answer

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

Question 6

Enron was_______ 	.

Accepted Answer

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 7

In modern American Bureaucratic companies _______	.

Accepted Answer

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

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

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Moral talk by managers is seen as:

Accepted Answer

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

Question 11

All aggressive companies must eventually restate earnings.

Accepted Answer

A) True 
 B)False

Question 12

Enron started as_______ 	.

Accepted Answer

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

Question 13

Enron owned natural gas pipelines.

Accepted Answer

A) True 
 B)False

Question 14

Lawyers may never report the fraud of their clients.

Accepted Answer

A) True 
 B)False

Question 15

Arthur Anderson served as Enron's auditors.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

Enron had a balance sheet littered with _______	.

Accepted Answer

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

Question 18

By December 2001, Enron was_______ 	.

Accepted Answer

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

Question 19

The Sarbanes-Oxley Act affects auditors.

Accepted Answer

A) True 
 B)False

Question 20

Enron fell apart because of _______	.

Accepted Answer

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

Exam 9: Values and the Virtuous Manager

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

Enron made a fortune in broadband services.

Business managers tend to be morally_______ .

Bureaucratic ethics is based on_______ .

Ethics in a Bureaucracy most often resembles _______ .

Enron was_______ .

In modern American Bureaucratic companies _______ .

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

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

Moral talk by managers is seen as:

All aggressive companies must eventually restate earnings.

Enron started as_______ .

Enron owned natural gas pipelines.

Lawyers may never report the fraud of their clients.

Arthur Anderson served as Enron's auditors.

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

Enron had a balance sheet littered with _______ .

By December 2001, Enron was_______ .

The Sarbanes-Oxley Act affects auditors.

Enron fell apart because of _______ .