Corporate Actions in a Larger Context. 500344RR
1. According to the Federal Sentencing Guidelines for boards, a board must
A. always resolve conflicts of interest in favor of an individual board member.
B. work with executives to analyze the incentives for ethical behavior.
C. leave the evaluation of all board policies, procedures, governance structure, and position descriptions to the executives.
D. avoid exercising reasonable oversight with respect to the effectiveness and implementation of an ethics program.
2. _______ rely on gatekeepers for fair and effective functioning of economic markets.
A. District attorneys B. Politicians C. Financial analysts D. Bankers
3. In what situation does market failure occur?
A. Manufacturers use substitutes for certain resources.
B. Businesses conform to regulatory requirements.
C. No economic solutions are used to address environmental problems.
D. No markets exist to create a price for important social goods.
4. The Sarbanes-Oxley Act of 2002 applies to more than 15,000 publicly held companies in what country or region?
A. Russia B. United Kingdom C. United States D. European Union
5. Section 201 of the Sarbanes-Oxley Act
A. mandates that members of public company audit committees should be independent, with a total absence of current or prior business relationships.
B. prohibits various forms of professional services that are determined to be consulting rather than auditing.
C. requires a company’s management to file an internal control report with its annual report each year.
D. provides the codes of ethics for senior financial officers.
6. The _______ model explains the nature of economic transactions in terms of a flow of resources from businesses to households and back again.
A. circular flow B. triple bottom line C. neoclassical D. pyramidal flow
7. The _______ approach to environmental sustainability maintains market prices, does or will incorporate the costs of production, and will lead to appropriate resource usage.
A. corporate social responsibility B. market
C. sustainable pricing D. environmental pricing
8. The _______ holds that a business is responsible for the entire life of its products, including their ultimate disposal even after the sale.
A. cradle-to-grave model B. eco-efficiency principle
C. cradle-to-cradle model D. take-make-waste approach
9. Executive compensation is an area of board responsibility that requires a delicate balance between
A. the CEO’s self-interest and the board of directors’ self-interest.
B. the board of directors’ self-interest and the company’s long-term financial interest.
C. human resources and financial concerns.
D. the CEO’s self-interest and the company’s long term financial interest.
10. Sara, an employee of PentaComp Inc., passed on confidential information about her company to her friend. Her friend benefitted from selling PentaComp’s stock based on the information shared by Sara. In this scenario, Sara can be charged with
A. insider trading. B. evading taxes. C. underreporting income. D. falsifying documents
11. Professionals are said to have _______ if they have a professional and ethical obligation to clients rooted in trust that overrides their personal interests.
A. executive rights B. fiduciary duties C. creditor claims D. statutory duties
12. What did the environmental legislation enacted in the 1970s do?
A. Addressed environmental concerns primarily using tort law.
B. Focused mainly on providing compensation after the occurrence of pollution or any other environmental harm.
C. Overestimated the influence that businesses can have in establishing a law.
D. Shifted the burden from those threatened with harm to those who would cause the harm.
13. In economic terms, resources that aren’t being used to satisfy consumer demand
A. are being wasted. B. are being conserved.
C. can be used for animal welfare. D. can be used to preserve the environment.
14. The Clean Air Act and the Clean Water Act, two major pieces of legislation that have been hallmarks of the regulatory approach to environmental externalities, were passed in the
A. 1980s. B. 1950s. C. 1960s. D. 1970s.
15. In economic terms, all resources
A. are infinite because they can be replaced by substitutes.
B. are distributed fairly by the government.
C. can be made available everywhere.
D. are distributed efficiently in the market.
16. Which of the following provisions of the Sarbanes-Oxley Act addresses the rules of professional responsibility for attorneys?
A. Section 307 B. Section 407 C. Section 406 D. Section 201
17. “Closed-loop” production seeks to
A. reduce waste rather than eliminating it totally.
B. integrate what’s presently waste back into production.
C. double the existing productivity from one-half the resource use.
D. dispose of waste with minimal damage to the environment.
18. Reminiscent of the _______ tradition, a view supporting animal rights suggests that some animals have the cognitive capacity to possess a conscious life of their own, and people have a duty not to treat these animals as mere objects and means to their own ends.
A. social web B. neoclassical C. Kantian D. virtue ethic
19. _______ serve as gatekeepers by evaluating a company’s financial prospects or creditworthiness.
A. Boards of directors B. Analysts C. Attorneys D. Auditors
20. The concept of sustainable development and sustainable business practice
A. suggests that only individuals who can prove that they’ve been harmed by pollution can raise legal challenges.
B. suggests a radically new vision for integrating financial and environmental goals compared with the growth model that preceded it.
C. suggests any harm to the environment can be adequately compensated.
D. focuses only on the costs that businesses incur in pursuing environmental goals.
what country or region The Sarbanes-Oxley Act of 2002 applies?