Explore all topics
Start Free Trial
Need Help? Contact us
back arrowfull exam logo
search
ai logoChat with AI
Servicesarrow
Discoverarrow

Topics

Explore all topics
Discover more topics

Exam 11: Legal and Ethical Issues in Finance

arrow
Exam 1: The Fundamental Principles of Finance12 Questionsadd course
Exam 2: Time Value of Money15 Questionsadd course
Exam 3: Risk and Return18 Questionsadd course
Exam 4: The Term Structure of Interest Rates18 Questionsadd course
Exam 5: Bonds and Bond Valuation17 Questionsadd course
Exam 6: Stocks and Stock Valuation19 Questionsadd course
Exam 7: Capital Budgeting Decision Methods26 Questionsadd course
Exam 8: Capital Structure and the WACC14 Questionsadd course
Exam 9: Analyzing and Forecasting Financial Statements13 Questionsadd course
Exam 10: Finance Within the Firm10 Questionsadd course
Exam 12: Financial Markets and Institutions14 Questionsadd course
Select questions type
  • Essay
  • Multiple Choice
  • Short Answer
  • True False
  • Matching
  • Select Tags
search iconSearch Question
flashcardsStudy Flashcards
Select questions type
  • Essay
  • Multiple Choice
  • Short Answer
  • True False
  • Matching
  • Select Tags

In what way was Proctor and Gamble's interest rate swap deal unethical?

Free
(Essay)
4.9/5
(60)
Question 1
Correct Answer:
Verified

They are not a financial firm and have no expertise in derivatives, yet they used money that belonged to the shareholders to speculate on interest rates, putting it at risk.

What legal accounting tool did Enron's CFO use to make earnings look better than they were?

Free
(Short Answer)
4.8/5
(72)
Question 2
Correct Answer:
Verified

Special purpose entities (SPEs).

What circumstance in the economy made Robert Citron's investment strategy change from a winner to a loser?

Free
(Essay)
4.7/5
(87)
Question 3
Correct Answer:
Verified

The fear of inflation caused the Fed to raise interest rates. Citron's strategy made money when interest rates fell and lost money when interest rates rose.

What circumstance allowed Nick Leeson to put Barings Bank's funds at risk?

(Essay)
4.8/5
(87)
Question 4

What circumstance made it possible for Charles Keating to quintuple Lincoln Savings and Loan's assets in a short period of time?

(Short Answer)
4.9/5
(74)
Question 5

What circumstance allowed Robert Citron to put the Orange County Investment Pool's funds at risk?

(Essay)
4.8/5
(85)
Question 6

What strategy that Nick Leeson tried only made things worse?

(Short Answer)
4.8/5
(85)
Question 7

What risk metric proved insufficient for Long Term Capital Management?

(Short Answer)
5.0/5
(82)
Question 8

What particular form of debt did Robert Citron use to leverage up the returns to the Orange County Investment Pool?

(Short Answer)
4.9/5
(75)
Question 9

What part of the strategy made things worse for both Orange County and Long Term Capital Management when returns started going negative?

(Essay)
4.8/5
(77)
Question 10

Who were the Keating five?

(Short Answer)
4.8/5
(76)
Question 11

What other firm did the Enron scandal bring down, and for what reason?

(Essay)
4.9/5
(83)
Question 12

What unusual step did the Board of Directors at WorldCom take to avoid lowering the stock price?

(Essay)
4.9/5
(81)
Question 13

What situation that arose due to the S&L crisis caused the federal government to bail out Wall Street and the big banks in the 2007 financial crisis?

(Essay)
4.8/5
(81)
Question 14
close modal

Filters

  • Essay(0)
  • Multiple Choice(0)
  • Short Answer(0)
  • True False(0)
  • Matching(0)