WGU Global Business Chp 7 Exam | Questions
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Terms in this set (18)
What is the relationship between Business ethics are important because it creates
ethics and economic progress? trust between buyers and sellers. Without trust
there cannot be economic progress.
What is the function of corporate A business' primary goal to shareholders is to make
social responsibility? a profit, but to stakeholders(customers. employees,
business partners, entire society) they have
corporate social responsibility to be fair, create
quality products, follow laws, keep customer info
confidential, build charity, be environmentally
careful, fair treatment, fair wages, dignity/respect,
good conditions, no discrimination.
What are some famous scandals Enron, World Com, Vivendi, Parmalet
concerning business ethics?
Events related to the Enron scandal? Displayed future profit as current in order to make
profit look better than it was. They collapsed and
so did the retirement of the employees that bought
their stock and 20K jobs lost. The result is Sarbanes
Oxley 2002. many checks and balances now.
, Events related to World Com? Overstated their earnings and under reported
costs. This caused a false profit to show as an
increase. Making stock prices climb. the Ceo
Ebbers was found out. He filed bankruptcy and was
later charged with the crime and sentenced to 25
years in prison.
Events related to Vivendi? The company cooked its books to make financial
performance look better than it was for the
purpose of making acquisitions. Used company
finances to repurchase stock. He was fined 50Mill
and had to forfeit his 25mill severance.
Events related to Parmalat? Cooked its books by purchasing its own credit-line
notes and creating an asset that did not really exist.
Company collapsed when it could not pay its
debts in 2003. Europe's biggest bankruptcy. 10 yrs
for fraud.
What are the reasons for having Prevent accidental errors and intentional
internal controls that facilitate ethical misrepresentations. Sometimes use a 3rd party
behavior? auditing system.
A type pf fraud in which money a Ponzi scheme
received from later investors is used
to provide returns to earlier
investors, thus giving an appearance
of a profitable investment, is called a
______.
and Answers | Verified Solutions | 2026 Edition |
Pass Guaranteed
Save
Terms in this set (18)
What is the relationship between Business ethics are important because it creates
ethics and economic progress? trust between buyers and sellers. Without trust
there cannot be economic progress.
What is the function of corporate A business' primary goal to shareholders is to make
social responsibility? a profit, but to stakeholders(customers. employees,
business partners, entire society) they have
corporate social responsibility to be fair, create
quality products, follow laws, keep customer info
confidential, build charity, be environmentally
careful, fair treatment, fair wages, dignity/respect,
good conditions, no discrimination.
What are some famous scandals Enron, World Com, Vivendi, Parmalet
concerning business ethics?
Events related to the Enron scandal? Displayed future profit as current in order to make
profit look better than it was. They collapsed and
so did the retirement of the employees that bought
their stock and 20K jobs lost. The result is Sarbanes
Oxley 2002. many checks and balances now.
, Events related to World Com? Overstated their earnings and under reported
costs. This caused a false profit to show as an
increase. Making stock prices climb. the Ceo
Ebbers was found out. He filed bankruptcy and was
later charged with the crime and sentenced to 25
years in prison.
Events related to Vivendi? The company cooked its books to make financial
performance look better than it was for the
purpose of making acquisitions. Used company
finances to repurchase stock. He was fined 50Mill
and had to forfeit his 25mill severance.
Events related to Parmalat? Cooked its books by purchasing its own credit-line
notes and creating an asset that did not really exist.
Company collapsed when it could not pay its
debts in 2003. Europe's biggest bankruptcy. 10 yrs
for fraud.
What are the reasons for having Prevent accidental errors and intentional
internal controls that facilitate ethical misrepresentations. Sometimes use a 3rd party
behavior? auditing system.
A type pf fraud in which money a Ponzi scheme
received from later investors is used
to provide returns to earlier
investors, thus giving an appearance
of a profitable investment, is called a
______.
