Question 1

WorldCom cooked its books by classifying ordinary expenses as capital expenditures.

Accepted Answer

A) True 
 B)False

Question 2

What commonalities exist among the corporate disasters identified in this chapter? Are there some types of wrongdoing that are more problematic than others? Why or why not?

Accepted Answer

Many of the corporate disaster

Question 3

Arthur Andersen was the accounting firm that ________________ WorldCom's books.

Accepted Answer

The answer of Arthur Andersen was the accounting firm that...

Question 4

Lay's connections and contributions to political candidates resulted in the spouse of what elected official being named to the Enron board?

Accepted Answer

A) Kay Bailey Hutcheson 
B) Phil Gramm 
C) Tom DeLay 
D) Barack Obama 
A) Kay Bailey Hutcheson 
B) Phil Gramm 
C) Tom DeLay 
D) Barack Obama

Question 5

How do you think corporate fraud affects consumer confidence in the economy?

Accepted Answer

Corporate fraud can have a significant i

Question 6

How has the Sarbanes-Oxley Act changed the responsibility of people involved in companies whose stock is publicly traded? Can accounting firms still audit and accept consulting fees? How about directors and company officers-are their duties different now?

Accepted Answer

The Sarbanes-Oxley Act mandated tough se

Question 7

The __________ hypnotized by Enron's success missed a critical wake-up call with the Skilling resignation.

Accepted Answer

A) Enron board members 
B) financial press 
C) stockholders 
D) regulators 
A) Enron board members 
B) financial press 
C) stockholders 
D) regulators

Question 8

Ken Lay stepped down as CEO from Enron to start a new company.

Accepted Answer

A) True 
 B)False

Question 9

Andrew Fastow made more than $30 million while at Enron based on a _________ investment.

Accepted Answer

A) $1 million 
B) zero out-of-pocket 
C) few thousand dollar 
D) $100,000 
A) $1 million 
B) zero out-of-pocket 
C) few thousand dollar 
D) $100,000

Question 10

Andrew Fastow was the Chief Financial Officer of ________________.

Accepted Answer

The answer of Andrew Fastow was the Chief Financial Officer...

Question 11

Enron's annual report issued in late 2000 proudly claimed to have __________ in two years.

Accepted Answer

A) tripled its revenue 
B) doubled its revenue 
C) quadrupled its revenue 
D) matched the revenue for all previous years combined 
A) tripled its revenue 
B) doubled its revenue 
C) quadrupled its revenue 
D) matched the revenue for all previous years combined

Question 12

WorldCom cooked its books by classifying ordinary expenses as ________________ expenditures.

Accepted Answer

The answer of WorldCom cooked its books by classifying ordinary...

Question 13

Enron's profitability was largely an article of faith.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is true about limited partnerships?

Accepted Answer

A) A common way to share losses 
B) A legal way to raise venture capital 
C) A method to divide responsibility 
D) A way to limit the power of executives 
A) A common way to share losses 
B) A legal way to raise venture capital 
C) A method to divide responsibility 
D) A way to limit the power of executives

Question 15

The purpose of Fannie Mae is to purchase and securitize mortgages in order to ensure that funds are consistently available to the institutions that lend money to home buyers.

Accepted Answer

A) True 
 B)False

Question 16

29 executives and directors sold __________ worth of stock knowing Enron was in danger of collapse.

Accepted Answer

A) $1.4 million 
B) $1.1 billion 
C) $550 million 
D) $5.6 million 
A) $1.4 million 
B) $1.1 billion 
C) $550 million 
D) $5.6 million

Question 17

Jeff Skilling's reign as a successful CEO came to an end with his resignation after only:

Accepted Answer

A) two years. 
B) 18 months. 
C) five months. 
D) one year. 
A) two years. 
B) 18 months. 
C) five months. 
D) one year.

Question 18

Identify the major players in the Enron scandal. Discuss their jobs, what effects their conduct had on Enron, what effects their conduct had on stock prices, and their history with the company. How did they profit from their activities?

Accepted Answer

Kenneth Lay, the first CEO of Enron, who

Question 19

Jeff Skilling's resignation happened in conjunction with an energy crisis in ________________.

Accepted Answer

The answer of Jeff Skilling's resignation happened in conjunction with...

Question 20

Limited partnerships are typically set as a perfectly legal way to raise venture capital.

Accepted Answer

A) True 
 B)False

WorldCom cooked its books by classifying ordinary expenses as capital expenditures.

What commonalities exist among the corporate disasters identified in this chapter? Are there some types of wrongdoing that are more problematic than others? Why or why not?

Arthur Andersen was the accounting firm that ________________ WorldCom's books.

Lay's connections and contributions to political candidates resulted in the spouse of what elected official being named to the Enron board?

How do you think corporate fraud affects consumer confidence in the economy?

How has the Sarbanes-Oxley Act changed the responsibility of people involved in companies whose stock is publicly traded? Can accounting firms still audit and accept consulting fees? How about directors and company officers-are their duties different now?

The __________ hypnotized by Enron's success missed a critical wake-up call with the Skilling resignation.

Ken Lay stepped down as CEO from Enron to start a new company.

Andrew Fastow made more than $30 million while at Enron based on a _________ investment.

Andrew Fastow was the Chief Financial Officer of ________________.

Enron's annual report issued in late 2000 proudly claimed to have __________ in two years.

WorldCom cooked its books by classifying ordinary expenses as ________________ expenditures.

Enron's profitability was largely an article of faith.

Which of the following is true about limited partnerships?

The purpose of Fannie Mae is to purchase and securitize mortgages in order to ensure that funds are consistently available to the institutions that lend money to home buyers.

29 executives and directors sold __________ worth of stock knowing Enron was in danger of collapse.

Jeff Skilling's reign as a successful CEO came to an end with his resignation after only:

Identify the major players in the Enron scandal. Discuss their jobs, what effects their conduct had on Enron, what effects their conduct had on stock prices, and their history with the company. How did they profit from their activities?

Jeff Skilling's resignation happened in conjunction with an energy crisis in ________________.

Limited partnerships are typically set as a perfectly legal way to raise venture capital.

Introduction

Crimes Against Consumers

Unsafe Products

Environmental Crime

Institutional Corruption: Mass Media and Religion

Securities Fraud

Fiduciary Fraud

Crimes by the Government

Corruption of Public Officials

Medical Crime

Computer Crime

Conclusions

Filters

Exam 7: Corporate Fraud

WorldCom cooked its books by classifying ordinary expenses as capital expenditures.

What commonalities exist among the corporate disasters identified in this chapter? Are there some types of wrongdoing that are more problematic than others? Why or why not?

Arthur Andersen was the accounting firm that ________________ WorldCom's books.

Lay's connections and contributions to political candidates resulted in the spouse of what elected official being named to the Enron board?

How do you think corporate fraud affects consumer confidence in the economy?

How has the Sarbanes-Oxley Act changed the responsibility of people involved in companies whose stock is publicly traded? Can accounting firms still audit and accept consulting fees? How about directors and company officers-are their duties different now?

The __________ hypnotized by Enron's success missed a critical wake-up call with the Skilling resignation.

Ken Lay stepped down as CEO from Enron to start a new company.

Andrew Fastow made more than $30 million while at Enron based on a _________ investment.

Andrew Fastow was the Chief Financial Officer of ________________.

Enron's annual report issued in late 2000 proudly claimed to have __________ in two years.

WorldCom cooked its books by classifying ordinary expenses as ________________ expenditures.

Enron's profitability was largely an article of faith.

Which of the following is true about limited partnerships?

The purpose of Fannie Mae is to purchase and securitize mortgages in order to ensure that funds are consistently available to the institutions that lend money to home buyers.

29 executives and directors sold __________ worth of stock knowing Enron was in danger of collapse.

Jeff Skilling's reign as a successful CEO came to an end with his resignation after only:

Identify the major players in the Enron scandal. Discuss their jobs, what effects their conduct had on Enron, what effects their conduct had on stock prices, and their history with the company. How did they profit from their activities?

Jeff Skilling's resignation happened in conjunction with an energy crisis in ________________.

Limited partnerships are typically set as a perfectly legal way to raise venture capital.

Introduction

Crimes Against Consumers

Unsafe Products

Environmental Crime

Institutional Corruption: Mass Media and Religion

Securities Fraud

Fiduciary Fraud

Crimes by the Government

Corruption of Public Officials

Medical Crime

Computer Crime

Conclusions

Filters