23 Apr The “rule of law” inhibits capitalism and democracies to thrive and compete globally

Question 1

1. The “rule of law” inhibits capitalism and democracies to thrive and compete globally.

True

False

5 points  

Question 2

1. The Sarbanes-Oxley Act was created to further regulate the financial and accounting practices of companies in response to major, market changing scandals.

True

False

5 points  

Question 3

1. Laws provide a baseline and maximum standards for distinguishing acceptable from unacceptable business practices.

True

False

5 points  

Question 4

1. The Pure Food and Drug Act prohibits the adulteration and mislabeling of food and drugs in interstate commerce.

True

False

5 points  

Question 5

1. In a free-market society the market is always perfect.

True

False

5 points  

Question 6

1. Sarbanes-Oxley

	A.	Establishes an independent public accounting board to oversee audits
	B.	Requires one member of the audit committee to be an expert in finance
	C.	Requires full disclosure to stockholders of complex financial transactions
	D.	Provides a 10-year penalty for wire and mail fraud
	E.	All of the above

5 points  

Question 7

1. The ___________ was enacted to establish oversight, accountability, and enforce truthful and accurate financial reporting in public firms.

	A.	Federal Trade Commission Act
	B.	Sarbanes-Oxley Act
	C.	Antitrust Improvement Act
	D.	FTC Improvements Act

5 points  

Question 8

1. Which of the following is a law that protects consumers?

	A.	The Federal Food, Drug, and Cosmetic Act (FDCA)
	B.	Antitrust Improvements Act
	C.	Sherman Antitrust Act
	D.	Clean Air Act

5 points  

Question 9

1. All of the following arguments are offered as problems with the free-market theory except:

	A.	Most businesses are not on an equal footing with consumers at large
	B.	The “invisible hand” is often nonexistent for consumers in need of protection against questionable advertising
	C.	Whether many firms’ advertising activities truthfully inform consumers about product reliability, possible product dangers, and proper product use is questioned
	D.	These are all problems with the free-market theory

5 points  

Question 10

1. Which act prohibits price discrimination?

	A.	FDCA
	B.	Clayton Act
	C.	FTC Improvements Act
	D.	Federal Trade Commission Act

5 points  

Question 11

1. A set of rules and assumptions about behavioral patterns among the various elements of society is which of the following?

	A.	A social contract
	B.	A corporation’s responsibility
	C.	Good social practice
	D.	Corporate philanthropy

5 points  

Question 12

1. Preventing illegal activities can be best achieved by the following except

	A.	Potential disciplinary action
	B.	Compliance standards
	C.	Philanthropic incentives
	D.	Ethical incentives

5 points  

Question 13

1. Which one of the following institutions was considered “Too Big To Fail” (TBTF)?

	A.	Bank of America
	B.	Unilever
	C.	Ford
	D.	Proctor & Gamble

5 points  

Question 14

1. Martha Stewart was convicted of what?

	A.	Conspiracy, obstruction of justice, and perjury
	B.	Insider trading
	C.	Securities fraud
	D.	Making a false statement to the SEC

5 points  

Question 15

1. Which of the following designates air-quality standards?

	A.	Clean Air Act
	B.	Endangered Species Act
	C.	Noise Pollution Act
	D.	Safe Drinking Water Act

5 points  

Question 16

1. Leib Pinter was charged with conspiracy to commit wire fraud due to which event(s)?

	A.	Fannie Mae fraud
	B.	The subprime mortgage crisis
	C.	Bernie Madoff’s Ponzi scheme
	D.	Both a and b
	E.	Both a and c

5 points  

Question 17

1. Voluntary Self-Regulation consists of which of the following?

	A.	Visions and values
	B.	Ethics programs
	C.	Philanthropy
	D.	All of the above

5 points  

Question 18

1. Which act of Congress gives the Justice Department investigative authority?

	A.	Federal Trade Commission Act
	B.	Sarbanes-Oxley Act
	C.	Antitrust Improvements Act
	D.	The Clayton Act

5 points  

Question 19

1. Which of the following is one of the worst companies according to the Top 10 Companies and Best Corporate Board Practices?

	A.	Toshiba
	B.	Amazon
	C.	AIG
	D.	Costco

5 points  

Question 20

1. _______ was sentenced to 150 years in prison for running a Ponzi scheme.

	A.	Fannie May
	B.	Christopher Milton
	C.	Bernie Madoff
	D.	Martha Stewart