Deck 17: Corporate and White-Collar Crime

Question 1

According to Shover and Hochstetler (2006),which of the following is NOT one of the three components of the middle and upper class lifestyle that contributes to criminal behaviour?

A)a competitive spirit (winning is the only thing)
B)an arrogance (believing the rules don't apply to them)
C)a sense of entitlement (thinking they deserve what they stole)
D)a good lawyer (to help them escape prosecution)

Answer 1

D

Question 2

Which of these refers to white-collar crimes committed with the support and encouragement of a formal organization and intended to,at least in part,advance that organization's goals?

A)professional crime
B)business crime
C)occupational crime
D)organizational crime

Answer 2

D

Question 3

Table 17.1 of the textbook identifies numerous types of corporate and business crime.Which of the following is NOT considered a crime by organization against its employees?

A)Ponzi schemes
B)violation of workplace health and safety laws
C)violation of labour laws
D)discriminatory employment practices

Answer 3

A

Question 4

What is another name the textbook uses for corporate crime?

A)professional crime
B)organizational crime
C)industry crime
D)employee crime

Question 5

According to the textbook,which of the following statements is true when comparing the costs of white-collar and corporate crime to street crime?

A)White-collar and corporate crimes are much more costly in dollar terms than street crime.
B)White-collar and corporate crimes are much less costly in dollar terms than street crime.
C)White-collar and corporate crimes incur around the same costs in dollar terms as street crime
D)There are no reliable estimates that allow one to compare the two.

Question 6

What is the term for crimes committed by a person of respectability and high social status in the course of his occupation?

A)white-collar crime
B)environmental crime
C)high status crime
D)fraud

Question 7

What is the name applied to white-collar crimes committed with the support and encouragement of a formal organization and intended at least in part to advance the goals of that organization?

A)occupational crime
B)white-collar crime
C)organizational crime
D)institutional crime

Question 8

The chief marketing officer of a tire-manufacturing corporation meets with his counterpart from a competitor company and they make a deal to divide up a sales region and fix the prices of the tires they sell to retailers.What is this an example of?

A)executive disengagement
B)occupational crime
C)organizational crime
D)blue-collar crime

Question 9

All of the following fit into Sutherland's concept of white-collar crime except one.Which is the exception?

A)actions of an executive that causes social harm and for which there is a legal sanction
B)illegal actions of executives or employees who use organizational resources to gain personal benefit
C)illegal strike actions of employees against their employer
D)illegal actions of executives who commit crimes against their employer

Question 10

From the list of corporate and white-collar crimes listed in Table 17.1of the textbook identifies numerous types of corporate and business crime,which category does false advertising fit into?

A)offences against the organization
B)corporate and business crime
C)offences against employees
D)crimes by individuals and professional practitioners

Question 11

Which of these social theorists introduced the concept of "white-collar crime"?

A)Goff and Reasons
B)Clinard
C)Sutherland
D)Hirschi

Question 12

According to the textbook,which of these is true of the Westray disaster,according to Justice Richard's inquiry?

A)Westray managers displayed a certain level of disdain for safety.
B)The president of Curragh Corporation was found responsible.
C)The company involved,Curragh Corporation,was just about to improve safety practices.
D)The government warned Curragh Corporation on numerous occasions to improve safety practices.

Question 13

Why are (illegal)migrant workers particularly vulnerable to injury and abuse by employers?

A)They tend to work in more dangerous jobs.
B)They are reluctant to object to unsafe working conditions.
C)Their bosses often don't know they are migrant workers.
D)They are less skilled compared to domestic employees.

Question 14

Table 17.1 of the textbook identifies numerous types of corporate and business crime.Which of the following is NOT considered a corporate crime against the public?

A)price-fixing
B)manipulation of stocks and securities
C)violation of labour laws
D)commercial and political bribery

Question 15

From the list of corporate and white-collar crimes listed in Table 17.1of the textbook identifies numerous types of corporate and business crime,which category does violation of workplace health and safety laws fit into?

A)offences against employees
B)corporate and business crime
C)offences against the organization
D)crimes by individuals and professional practitioners

Question 16

Which of the following best explains why employers fail to implement safe working conditions?

A)The penalties for management of guilty companies are often very light.
B)Few countries have workplace safety laws to protect employees.
C)Administrators cannot agree on how to implement new conditions.
D)Too few deaths and injuries result to make this a priority issue.

Question 17

Which of the following refers to white-collar crime committed by an individual or group of individuals exclusively for personal gain?

A)business crime
B)organizational crime
C)corporate crime
D)occupational crime

Question 18

According to Wheeler and Rothman,if the gun or knife is the tool for the common criminal,what is the tool for white-collar criminals?

A)the corporation
B)the contract
C)the telephone
D)the stock market

Question 19

Table 17.1 of the textbook identifies numerous types of corporate and business crime.Which of the following is considered a corporate or business crime against the public?

A)price-fixing
B)tax fraud
C)violation of labour laws
D)rouge trading

Question 20

Which of the following statements is true when comparing the frequency of deaths related to occupational safety and deaths resulting from murder?

A)There are far fewer occupational deaths than deaths resulting from murder.
B)Occupational deaths outnumber deaths resulting from murder.
C)The number of occupational deaths is around the same as deaths resulting from murder.
D)There are no reliable estimates of occupational death or murders.

Question 21

What is the name of the fraud in which investors are promised substantial returns on an investment,but there is in fact no investment and existing investors are paid off with money from new victims.

A)abuse of trust
B)the pump and dump
C)Ponzi scheme
D)insider trading

Question 22

Which of the following was the Bre-X scandal an example of?

A)insider trading
B)pump and dump
C)a Ponzi scheme
D)selling a stock short

Question 23

Donovan reported that over 100,000 people in Canada had their tax returns adjusted by Revenue Canada.What was the reason their tax returns were adjusted?

A)They inflated charitable tax deductions.
B)They "accidentally" miscalculated their taxes due.
C)They invented dependents.
D)They did not report tips and gratuities.

Question 24

What type of fraud was perpetrated by Bernie Madoff and Earl Jones?

A)insider trading
B)selling a stock short
C)Ponzi schemes
D)"pump and dump"

Question 25

"Corporations are subject to the same laws as natural persons." What is the common term for the legal concept expressed in this statement?

A)authoritarian personality
B)bureaucratic personality
C)juristic person
D)rational governance

Question 26

Which of the following best represents the "criminogenic market structure"?

A)the underground trade in prohibited goods
B)tradespeople who perform work "off the books" so they don't have to pay taxes on the revenue
C)competitive markets which pressure companies,managers & employees to break the law
D)companies that become involved in illegal underground markets

Question 27

What is the name the textbook applies to an individual stock trader who,without authorization,gambles with his company's money through unauthorized deals?

A)rogue trader
B)maverick trader
C)insider trader
D)stock manipulator

Question 28

According to the textbook,what were the most widely publicized cases of unprofessional conduct in recent years?

A)falsification of research findings by academics
B)malpractice by doctors
C)cars sold with major defects
D)sexual abuse by members of the clergy

Question 29

What is the name for one of the crimes perpetrated by Enron,Worldcom,and Nortel?

A)auditor fraud
B)accounting fraud
C)Ponzi scheme
D)insider trading

Question 30

What was the decision by the Ford Motor Company when they discovered that drivers of the Ford Pinto could die in fires ignited by the car being rear-ended?

A)They immediately recalled all of the cars to repair the defect.
B)They decided it would be cheaper to pay for lawsuits brought by the families of Ford Pinto drivers who had been burned to death than to fix the design flaw that caused the fires.
C)They immediately contacted all owners of the cars to ensure they did not drive the car until the defect was repaired.
D)They decided to stop making the Ford Pinto.

Question 31

Which of the following best describes a belief held by judges who have sentenced white-collar offenders relatively leniently?

A)The offenders are treated differently because they are just scapegoats and the real offenders are the laws and the corporations.
B)The offenders are treated differently because they are apt to be rehabilitated.
C)The offenders are treated differently due to the belief that their loss of a job,professional license,or status is sufficient punishment.
D)The offenders are treated differently because they did not cause any physical harm to a victim or the community.

Question 32

Which of the following is NOT a reason that white-collar crime is said to positively correlate with class position?

A)Ownership and authority positions within a corporation provide power and freedom from control that may be criminogenic.
B)The upper class is more criminogenic than those with a lower socio-economic status.
C)The modern corporation facilitates this kind of freedom.
D)This freedom means that modern corporations are largely unregulated.

Question 33

About what percentage of the Canadian workforce reported either having committed fraud against their employer or witnessing someone committing fraud during the previous year,according to a 2001 survey by Ernst & Young?

A)15
B)25
C)35
D)45

Question 34

Which of the following contradicts the textbook's account for the causes behind the financial collapse of 2008?

A)Bundles of mortgages were combined into collateralized debt obligations and sold as if they were sound investments.
B)The greed of mortgage holders and individual investors led to the catastrophe.
C)Several high ranking officials from banks and mortgage companies have been imprisoned for their role in the collapse.
D)NINJA mortgages were issued by some mortgage companies.

Question 35

Which of the following is NOT a typical crime committed against employers by employees as discussed in the textbook?

A)taking kickbacks from suppliers
B)creating phony invoices
C)stealing company property
D)stealing company cars

Question 36

The bankruptcy of WorldCom,a long-distance telephone service provider,can be largely attributed to which of the following?

A)consumer safety issues
B)overpayment for a number of smaller companies purchased
C)a fraud based on non-existent profits
D)faulty products

Question 37

The textbook argues that the justice system does not deal with white-collar crimes effectively.Which of the following is NOT one of the reasons given as to why these crimes are not dealt with more effectively by the justice system?

A)The public is more concerned about street & violent crime.
B)White-collar crime is complex and costly to prosecute.
C)White-collar criminals have powerful connections with judges and regulatory agencies.
D)White-collar criminals are often paroled to the community quickly.

Question 38

According to the textbook,why are civil suits against corporations often unsuccessful?

A)There is little news coverage or political will to prosecute the small fry.
B)The liabilities borne by modern corporations in civil suits are limited.
C)Judges are especially sympathetic to such individuals because they represent the best examples of entrepreneurship.
D)Damage judgments against corporations affect their salaries so they are extra careful in their actions.

Question 39

The social movement against white-collar crime beginning in the 1970s has resulted in a move toward which of the following in Canada?

A)tougher legal sanctions for white-collar offences and more government regulation of corporations
B)tougher legal sanctions for white-collar offences,but not towards more government regulation of corporations
C)more government regulation of corporations,but not towards tougher legal sanctions for white-collar offences
D)neither tougher legal sanctions for white-collar offences nor tougher legal sanctions for white-collar offences

Question 40

Which of the following is the term for a type of fraud where stock promoters take a worthless company,invent a story about how profitable the company will be,spread that story so that people to buy the stock,and then sell the stock realizing a profit?

A)abuse of trust
B)pump and dump
C)fictitious trust
D)insider trading

Question 41

White-collar crime theorizing and research has not had much influence on the field of criminology.

Question 42

Social class is an irrelevant issue when analyzing white-collar and corporate crime.

Question 43

Corporate involvement in crime is a relatively new phenomenon.

Question 44

Workplace accidents and occupational deaths are often the result of employer carelessness or unsafe conditions.As such corporate executives are frequently held accountable in Canada through serious penalties,including imprisonment.

Question 45

Most cases involving corporate malfeasance are dealt with through civil and regulatory processes and not the criminal courts.

Question 46

The crimes committed by Enron,Worldcom,and Nortel all including accounting fraud.

Question 47

The cost to society of white-collar and corporate crime is far greater than the costs of street crimes.

Question 48

White-collar crimes committed with the encouragement of a formal organization and intended,at least in part,to advance the goals of that organization are referred to as organizational crime.

Question 49

Occupational crime is another name for corporate crime.

Question 50

While costly to society,there are few deaths or injuries stemming from corporate crime and irresponsibility.

Question 51

In 2004 the Canadian government passed legislation to make it easier to prosecute fraud-related offences.This has contributed to a significant increase in prosecutions of white-collar crime cases.

Question 52

Based on an understanding of white-collar crime,we can no longer assume that the poor are necessarily more criminal than the rich.

Question 53

Executive disengagement is when employees do not inform superiors of certain actions so the superiors cannot be held responsible.

Question 54

A company that understates its revenues while over-stating its expenses as a means to make it appear more profitable than it really is a classic example of accounting fraud.

Question 55

Large compensation packages and attractive stock option packages for executives of large corporations have helped reduce corporate crime in recent years.

Question 56

The term "criminogenic market structure" refers to competitive market pressures that help promote law breaking and unethical behaviour by managers and employees or legitimate companies.

Question 57

An employee stealing cash from the register of the retail store where she works is an example of occupational crime.

Question 58

The law treats corporations as a juristic person,thus making them formally liable to the same laws as "natural persons."

Question 59

Consumer safety issues with products from China stem partly from little quality control in Chinese factories,which in turn is the result of demands for cheap consumer products from that country.

Question 60

The increased regulations that Wall Street has been subject to in recent years is cited as one of the major causes of the financial crisis of 2008.

Question 61

Explain why the organizational form of the corporation is crucial to understanding much corporate crime.

Question 62

Explain what is meant by a criminogenic market structure.Analyze one of the case studies of corporate crime from the textbook and detail how it was influenced by market-based criminogenic factors.

Question 63

Identify and describe a case study of white-collar crime that has taken place in Canada in recent years.Critically examine this case study by invoking the relationship between social class and white-collar crime.

Question 64

"The conscious decisions of a number of individuals and organizations resulted in the Westray tragedy." Support this statement by providing some of the details of how the tragedy came about.

Question 65

Document and explain the physical and social harm caused by white-collar crime in Canada.

Question 66

Traditionally misconduct by professionals is often hidden from public view because such cases are dealt with privately by governing bodies.

Question 67

Explain what is meant by the concept of the "criminogenic market structure." Provide a case study of corporate crime to which this concept can be applied.

Question 68

The Catholic Church has aggressively pursued allegations of sexual misconduct by its priests.

Question 69

What role has executives played in corporate crime in recent years? Use one or more case studies to justify your answer.

Question 70

Explain why Sutherland's definition of white-collar crime would include both violations of the Criminal Code and violations of quasi-criminal statutes in Canada.

Question 71

Describe the concept of white-collar crime and explain its impact on the discipline of criminology.

Question 72

Tax fraud can only be committed by individuals,not corporations.

Question 73

Rogue traders have cost investors millions but their behaviour has not negatively impacted on the financial institutions they work for.

Question 74

Explore the contention that Conrad Black's behaviour was motivated by a sense of entitlement and make sure to cite some examples from Black's life that support this contention.

Question 75

Explain how the financial collapse of 2008 occurred in the United States,focusing on the role played by private sector financial institutions.

Question 76

Losses to companies from theft by employees are almost as much as losses from shoplifting.

Question 77

How does "executive disengagement" make it easier for corporate crime to occur? Provide a real or hypothetical example to support your answer.

Question 78

A Ponzi scheme is where investors are promised substantial returns but existing investors are actually paid off with money from new victims.

Question 79

Explain the distinction between occupational crime and organizational crime.Provide two to three hypothetical examples for each.

Question 80

Why is white-collar crime positively related to class position?