WCC Exam 3 Study Guide with
Accurate Solutions
corporation - ANS-a legal structure allowing individuals to pool resources (capital, labor,
etc.) to generate profit
Characteristics of a corporation - ANS-They act as a single entity separate from the
persons who run/own them; and they can own property.
Why are corporations "well positioned" to engage in illegal and/or unethical activities? -
ANS-Disproportionate influence on government/politicians {the power elite}
How long have corporations been in existence? - ANS-since roman times
How are corporations held liable for criminal activity? - ANS-Corporate agents' actions
may be imputed to the corporation itself; To be a corporate crime, actions should be (1)
on behalf of the corporation, (2) to the benefit of the corporation, or (3) within the scope
of authority granted granted to the agent by the corporation
three primary ways by which corporate crime might be considered violent crime. - ANS-
Violence against public (unsafe environmental practices); violence against consumers
(unsafe products); violence against workers (unsafe working conditions)
How are work-related injuries and diseases associated with premature death? - ANS-
major cause, accurate data are hard to estimate
trust/monopoly - ANS-The exclusive possession or control of the supply or trade in a
commodity or service.
two primary ways by which corporations try to eliminate competition - ANS-1. reduce
competitors sales (predatory pricing and pressuring others not to work with competitors)
2. increase competitors cost (predatory arrangements with suppliers, lending institution
pressure, sabotage)
major anti-trust legislation in the U.S. - ANS-Sherman anti-trust act, Clayton Anti-Trust
Act, Federal Trade Commission Act
Clayton Anti-Trust Act - ANS-specific activities that can be regulated but exempts labor
(unions, sports teams);
, Sherman anti-trust act - ANS-1st proconsumer legislation that prohibits business
activities that reduce competition in the marketplace;
Federal Trade Commission Act - ANS-established federal trade commission with focus
on unfair competition
primary forms of abuse-of-power associated with corporate crime - ANS-- corruption of
political process (bribery, economic interests outweigh public safety)
- corporate crimes against citizens and taxpayers (defrauding the government)
- corporate tax evasion
primary purpose of anti-trust laws - ANS-To promote and protect competition
horizontal price fixing - ANS-competition businesses conspire to charge prices at a
similar level
vertical price fixing - ANS-parties from different levels of production and distribution
chain agree to set prices
price discrimination - ANS-refers to practices where different prices are charged simply
to restrict competition between competitors
When is price discrimination illegal? - ANS-Price discrimination is common and only
illegal when the firm is using it to lessen or eliminate competition.
what is the major problem with price discrimination? - ANS-difficult to determine whether
different prices are being offered to limit competition or price differences are just a
natural part of business
Which type of corporate wrongdoing is most evident in the immediate aftermath of
natural disasters like hurricanes or tornadoes? - ANS-Price gouging
two types of unfair labor practices - ANS-Exploitation and discrimination
OSHA - ANS-Occupational Safety and Health Administration; situated in the department
of labor
What is the difference between securities fraud and commodities fraud? - ANS-
Securities fraud refers to fraudulent activities related to stocks, bonds, and mutual
funds; Commodities fraud is defined as the "fraudulent sale of commodities
investments". Commodities are raw materials such as natural gas, oil, gold, agricultural
products, and other tangible products that are sold in bulk form.
Accurate Solutions
corporation - ANS-a legal structure allowing individuals to pool resources (capital, labor,
etc.) to generate profit
Characteristics of a corporation - ANS-They act as a single entity separate from the
persons who run/own them; and they can own property.
Why are corporations "well positioned" to engage in illegal and/or unethical activities? -
ANS-Disproportionate influence on government/politicians {the power elite}
How long have corporations been in existence? - ANS-since roman times
How are corporations held liable for criminal activity? - ANS-Corporate agents' actions
may be imputed to the corporation itself; To be a corporate crime, actions should be (1)
on behalf of the corporation, (2) to the benefit of the corporation, or (3) within the scope
of authority granted granted to the agent by the corporation
three primary ways by which corporate crime might be considered violent crime. - ANS-
Violence against public (unsafe environmental practices); violence against consumers
(unsafe products); violence against workers (unsafe working conditions)
How are work-related injuries and diseases associated with premature death? - ANS-
major cause, accurate data are hard to estimate
trust/monopoly - ANS-The exclusive possession or control of the supply or trade in a
commodity or service.
two primary ways by which corporations try to eliminate competition - ANS-1. reduce
competitors sales (predatory pricing and pressuring others not to work with competitors)
2. increase competitors cost (predatory arrangements with suppliers, lending institution
pressure, sabotage)
major anti-trust legislation in the U.S. - ANS-Sherman anti-trust act, Clayton Anti-Trust
Act, Federal Trade Commission Act
Clayton Anti-Trust Act - ANS-specific activities that can be regulated but exempts labor
(unions, sports teams);
, Sherman anti-trust act - ANS-1st proconsumer legislation that prohibits business
activities that reduce competition in the marketplace;
Federal Trade Commission Act - ANS-established federal trade commission with focus
on unfair competition
primary forms of abuse-of-power associated with corporate crime - ANS-- corruption of
political process (bribery, economic interests outweigh public safety)
- corporate crimes against citizens and taxpayers (defrauding the government)
- corporate tax evasion
primary purpose of anti-trust laws - ANS-To promote and protect competition
horizontal price fixing - ANS-competition businesses conspire to charge prices at a
similar level
vertical price fixing - ANS-parties from different levels of production and distribution
chain agree to set prices
price discrimination - ANS-refers to practices where different prices are charged simply
to restrict competition between competitors
When is price discrimination illegal? - ANS-Price discrimination is common and only
illegal when the firm is using it to lessen or eliminate competition.
what is the major problem with price discrimination? - ANS-difficult to determine whether
different prices are being offered to limit competition or price differences are just a
natural part of business
Which type of corporate wrongdoing is most evident in the immediate aftermath of
natural disasters like hurricanes or tornadoes? - ANS-Price gouging
two types of unfair labor practices - ANS-Exploitation and discrimination
OSHA - ANS-Occupational Safety and Health Administration; situated in the department
of labor
What is the difference between securities fraud and commodities fraud? - ANS-
Securities fraud refers to fraudulent activities related to stocks, bonds, and mutual
funds; Commodities fraud is defined as the "fraudulent sale of commodities
investments". Commodities are raw materials such as natural gas, oil, gold, agricultural
products, and other tangible products that are sold in bulk form.
