Question 1

The Fifth Amendment:

Accepted Answer

The Fifth Amendment provides constitutional protection against self-incrimination.

Question 2

_____ occurs if you learn of some information and pass it on to others, such as friends, a spouse, or other relatives and they act on the information to their benefit.

Accepted Answer

Misappropriation occurs if you learn of some information and pass it on to others, such as friends, a spouse, or other relatives and they act on the information to their benefit.

Question 3

Once a crime has been reported or sufficiently investigated to establish that the person has committed the crime, the person is taken into custody by the police either on the scene of the crime, or through the use of a(n) _____.

Accepted Answer

Once a crime has been reported or sufficiently investigated to establish that the person has committed the crime, the person is taken into custody by the police either on the scene of the crime, or through the use of an arrest warrant.

Question 4

Which of the following is the most prominent criminal activity involving fraud on the securities market?

Accepted Answer

The most prominent criminal activity involving fraud on the market is insider trading.

Question 5

You are in possession of information that indicates a big merger between two corporations is about to occur, you might purchase shares of the corporation's stock so that when the merger is announced and the stock value increases, you will have received the benefit of that increase to the detriment of the public who did not know that information. This is an example of:

Accepted Answer

Insider trading occurs when someone, usually a corporate insider, buys or sells a security while in possession of inside information. Inside information is any material information about the stock that is unknown to the public.

Question 6

_____ includes fraud involving the delivery of benefits through domestic programs provided by the government including Social Security, Temporary Assistance for Needy Families (formerly AFDC), and other entitlement programs.

Accepted Answer

Fraud against the government includes fraud involving the delivery of benefits through domestic programs provided by the government including Social Security, Temporary Assistance for Needy Families (formerly AFDC), and other entitlement programs.

Question 7

The _____ Amendment provides the defendant the right to a speedy trial, the right to subpoena witnesses to speak on his or her behalf, the right to confront witnesses, and the right to a jury of his or her peers.

Accepted Answer

The Sixth Amendment provides the defendant the right to a speedy trial, the right to subpoena witnesses to speak on his or her behalf, the right to confront witnesses, and the right to a jury of his or her peers.

Question 8

The Eighth Amendment:

Accepted Answer

The Eighth Amendment protects us against the imposition of cruel and unusual punishment by the government. It also ensures our right to bail.

Question 9

Which of the following is an example of crimes included under the public corruption category?

Accepted Answer

A federal public official engaged in covert payoffs is an example of crimes included under the public corruption category.

Question 10

Which of the following Amendments ensures our right to bail?

Accepted Answer

The Eighth Amendment protects us against the imposition of cruel and unusual punishment by the government. It also ensures our right to bail.

Question 11

Ponzi and pyramid schemes are most likely to be examples of _____.

Accepted Answer

Ponzi and pyramid schemes are most likely to be example of economic crimes.

Question 12

Which of the following statements is true regarding the Fifth Amendment?

Accepted Answer

The Fifth Amendment provides constitutional protection against self-incrimination. This means that you cannot be compelled to testify against yourself as to criminal matters and can refuse to talk to the police about any crime that you might have committed. This is, in part, the basis for the Miranda warnings.

Question 13

Which of the following frauds involves someone, usually a corporate insider, buying or selling a security while in possession of inside information?

Accepted Answer

Insider trading occurs when someone, usually a corporate insider, buys or sells a security while in possession of inside information. Inside information is any material information about the stock that is unknown to the public.

Question 14

According to the Miranda warnings:

Accepted Answer

Miranda warnings are partly based on the Fifth Amendment. According to Miranda warnings, "You have the right to remain silent. Anything you say can and will be used against you in a court of law. You have the right to speak to an attorney, and to have an attorney present during any questioning. If you cannot afford a lawyer, one will be provided for you at government expense."

Question 15

The Sixth Amendment:

Accepted Answer

The Sixth Amendment establishes our constitutional right to an attorney through the important phases of the criminal process.

Question 16

All of the following statements is true regarding the constitutional rights of a business EXCEPT:

Accepted Answer

Under the constitution, businesses are protected from illegal searches and seizures by the Fourth Amendment much like individuals are. Corporations have no Fifth Amendment rights against self-incrimination. The Sixth Amendment gives the corporation the right to counsel through its officers or agents. The Eighth Amendment's prohibition against cruel and unusual punishment has no application to corporate punishment.

Question 17

The Fourth Amendment:

Accepted Answer

The Fourth Amendment protects a person against unreasonable searches and seizures by the police or other government official.

Question 18

Embezzlement and loan fraud are most likely to be examples of _____.

Accepted Answer

Embezzlement and loan fraud are most likely to be examples of financial institution fraud.

Question 19

The theory behind holding corporate officers and managers liable for corporate crimes is similar to _____.

Accepted Answer

The theory behind holding corporate officers and managers liable is similar to respondeat superior.

Question 20

_____ are often called "blue sky" laws.

Accepted Answer

Securities laws are often called "blue sky" laws.

Quiz 8: Business Crimes