The CEO of Big Ships knows his company has won a $2 billion contract to build ships for the Navy. He is told by the Navy to keep this quiet until the official announcement. Knowing that Big Ships stock will rise when the announcement is made, he tells his children to buy as much Big Ships stock as they can right away. He does not buy any stock. The CEO may:
a. not be sued for insider trading since he did not engage in trades; his relatives can be sued
b. not be sued for insider trading because he did not engage in trades; his relatives may not be sued because they have no relation to the company
c. not be sued for insider trading under the Supreme Court rule in the Dirks case
d. be sued only if his employment contract or contract with the Navy prohibits trading e. none of the other choices
e
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In balancing the risks and benefits that are part of every ethical decision, managers receive guidance from each of the following except
a. justice b. self interest c. risk minimization d. proportionality
All of the following are methods that organization can adopt to proactively eliminate fraud opportunities EXCEPT:
a. Accurately identifying sources and measuring risks. b. Implementing appropriate preventative and detective controls. c. Creating widespread monitoring by employees. d. Eliminating protections for whistle blowers.
Another name for active agreement is
a. forceful agreement. b. strong agreement. c. request for involvement. d. call to action.
Considering what you have learned about writing style and writing lapses, which sentence demonstrates the best overall construction?
a. Since I have learned how to modify my writing style—a skill I didn't know could be developed—I have been able to write every report effectively. b. Having learned how to modify my writing style, my reports have improved. c. Having learned how to modify my writing style, I now write with greater confidence. d. Learning to modify my writing style, has increased my confidence.