Week 3 Quiz 10 Q’s and A’s
One objection to companies hiring undocumented immigrants is: (Points : 1)
a) such immigrants make no social security payments.
b) such immigrants increase wages paid to everyone else.
c) such immigrants often commit voter fraud.
d) such immigrants depress wages paid to everyone else.
2. The Happy Camper company produces tents that it produces in Indonesia and sells in the US. It claims its income in Indonesia, in order to pay lower taxes. This could be considered an example of: (Points : 1)
a) insider trading.
b) rogue derivations.
c) transfer costing.
d) rogue transferring.
3. One effective and ethical way to minimize agency costs is to make sure: (Points : 1)
a) managers throughout the corporation follow the same practices.
b) no foreign managers are hired.
c) managers have enough money to bribe the authorities.
d) allow managers to make up their rules as they wish.
4. One of the central reasons that a government contract may generate additional expenses is that: (Points : 1)
a) the government has an incentive to price gouge.
b) most taxpayers support cost overruns.
c) the government can always revert to the gold standard.
d) the taxpayer is ultimately responsible for paying such expenses.
5. A company's managers, operating in a foreign country, should: (Points : 1)
a) operate only within their own personal ethical code.
b) reject the foreign country's culture and practices.
c) be sensitive to the foreign country's traditions.
d) ignore all violations of U.S. law and traditions.
6. Missy is a lobbyist for an global petroleum company, and has offered a politician stocks at a discounted price if the politician will support legislation that will benefit Missy's company. This would be a case of: (Points : 1)
a) transfer gouging.
b) transfer trading.
c) bribery.
d) price gouging.
7. Companies that offer financial services are regulated and have licensing bodies because: (Points : 1)
a) financial service companies ask for more regulations.
b) financial services can be extremely complex to understand.
c) most people don't really care about credit default swaps.
d) some financial services are insufficiently creative.
8. A multinational corporation, according to Ethisphere, should act ethically in another country because it: (Points : 1)
a) decreases profit.
b) will offend the host country.
c) can often be profitable and ethical.
d) will necessarily improve stock value.
9. Cindy watches the real estate and housing market very closely. She is convinced, on the basis of publically-available information, the housing prices will go up, and so buys a number of houses and rental properties. Cindy here is best-described as: (Points : 1)
a) following a good business strategy.
b) insider trading.
c) war profiteering.
d) price gouging.
10. Intellectual piracy has been estimated to cost American corporations, at a minimum: (Points : 1)
a) $100 billion.
b) $100 million.
c) $100 trillion.
d) $100,000.
JOIN OUR STUDY GROUPS