Deck 19: Corporate Misconduct and Ethics

Question 1

Who is credited by most criminologists with developing the concept of white- collar crime?

A) Bernard Madoff
B) Arthur Anderson
C) Edwin Sutherland
D) Jeremy Bentham

Answer 1

C

Question 2

Enron hid massive amounts of debt by:

A) underpaying its employees
B) creating special-purpose entities
C) not including executive compensation data in quarterly estimates
D) all of the above

Answer 2

B

Question 3

Unscrupulous banking practices such as not requiring income verification is known as:

A) subprime lending
B) criminal behavior
C) malfeasance
D) mortgage fraud

Answer 3

A

Question 4

The most common financial settlement between the federal government and corporate offenders is in which type of industry?

A) mortgage
B) student loan
C) health care
D) automobile

Question 5

The most prevalent type of health care fraud is:

A) fraudulent billing
B) pharmaceutical fraud
C) doctor shopping
D) unnecessary medical testing

Question 6

_________ are a type of compensation that gives the owner the right to buy a number of shares of a company at a predetermined price at any time in the future until a pre-set expiration date.

A) Stock quotes
B) Performance evaluations
C) Golden parachutes
D) Stock options

Question 7

Current or former employees with direct knowledge of fraud are called:

A) fraud exposers
B) traitors
C) whistleblowers
D) DPA's

Question 8

The False Claims Act provides anyone with inside knowledge of fraud an incentive of up to ______ of any funds recovered to come forward with that information.

A) $10,000
B) $500,000
C) 30 percent
D) 50 percent

Question 9

Which of the following statements are true regarding deferred prosecution agreements?

A) Deferred prosecution agreements are attractive to prosecutors.
B) Deferred prosecution agreements are attractive to corporations.
C) Deferred prosecution agreements most often require the corporation to institute internal compliance procedures.
D) All of the above statements are true.

Question 10

Over two-thirds of drug overdose deaths involve which type of drug?

A) marijuana
B) stimulants
C) opioids
D) hallucinogens

Question 11

Many for-profit educational institutions are aggressively recruiting ________ in an attempt to take advantage of a loophole and to stay under the maximum threshold of revenue that can originate from federal aid funds.

A) minorities
B) veterans
C) first generation students
D) students from lower socio-economic status

Question 12

According to the text, Americans view white-collar crimes more seriously than they have in the past.

Question 13

Since 1980, the wage gap between executives and average employees has declined.

Question 14

Media coverage can have a strong impact on the public opinion and prosecution of corporate offenders.

Question 15

According to the text, prosecutors have increasingly become sympathetic to corporate crime.

Question 16

Criminal prosecutions of corporations are relatively rare.

Question 17

Approximately 2% of Americans were a victim of a corporate crime in 2019.

Question 18

Approximately 80 percent of healthcare fraud is due to dishonest individuals who lie to the government to obtain public benefits.

Question 19

A fee-for-service healthcare model encourages more comprehensive treatment.

Question 20

The Affordable Health Care Act passed in 2010 imposed strict requirements for providers who seek permission to bill Medicare.

Question 21

The opioid-related overdose deaths since 2013 have largely been driven by the overprescribing of pain medication