WCC Exam 2 Questions with Complete
Solutions14
Corporate policies and pressures can promote deceptive sales practices by employees. -
ANSWERS-true
With the Sarbanes-Oxley Act, criminal penalties for willful misconduct can include a prison
sentence. - ANSWERS-true
Jeff Skilling was the Enron executive receiving the greatest prison sentence. - ANSWERS-true
The consolidation across American industries has decreased price fixing. - ANSWERS-false
WorldCom cooked its books by classifying ordinary expenses as capital expenditures. -
ANSWERS-true
Qwest was accused of artificially pumping up its revenue over a period of several years. -
ANSWERS-true
Starting in 2021, the FTC made it illegal to falsely claim a product was "Made in the United
States" when it was not actually made in the United States. - ANSWERS-true
The financial press, mesmerized by Enron's dazzling bottom line, missed a critical wake-up call. -
ANSWERS-true
Ken Lay stepped down as CEO from Enron to start a new company. - ANSWERS-false
, The purpose of Fannie Mae is to purchase and securitize mortgages in order to ensure that
funds are consistently available to the institutions that lend money to home buyers. - ANSWERS-
true
Which of the following are stipulations of the Federal Trade Commission Act? - ANSWERS--
advertisers must have evidence to back up their claims
- advertisements cannot be unfair
- advertising must be truthful and nondeceptive
Enron's limited partnerships were all of the following except: - ANSWERS-a mechanism to limit
employee losses.
Post mortems of the Enron collapse have targeted the "Casablanca maneuver" by members of
the Enron board of directors. What does this reference mean? - ANSWERS-Denying any
knowledge of questionable activity despite damming evidence
Enron experienced the beginning of the end with major losses in the third quarter of 2001. The
company had to explain a __________ loss to corporate credit-rating agencies. - ANSWERS-$638
million
This occurs when competitors conspire to set specific bids for goods or services. - ANSWERS-bid
rigging
This occurs where customers are lured into the store with the promise of a sale item that does
not exist, or, is not available in an appropriate amount. - ANSWERS-bait and switch
The broiler chicken price fixing increased the price of broiler chickens by how much? -
ANSWERS-50%
Solutions14
Corporate policies and pressures can promote deceptive sales practices by employees. -
ANSWERS-true
With the Sarbanes-Oxley Act, criminal penalties for willful misconduct can include a prison
sentence. - ANSWERS-true
Jeff Skilling was the Enron executive receiving the greatest prison sentence. - ANSWERS-true
The consolidation across American industries has decreased price fixing. - ANSWERS-false
WorldCom cooked its books by classifying ordinary expenses as capital expenditures. -
ANSWERS-true
Qwest was accused of artificially pumping up its revenue over a period of several years. -
ANSWERS-true
Starting in 2021, the FTC made it illegal to falsely claim a product was "Made in the United
States" when it was not actually made in the United States. - ANSWERS-true
The financial press, mesmerized by Enron's dazzling bottom line, missed a critical wake-up call. -
ANSWERS-true
Ken Lay stepped down as CEO from Enron to start a new company. - ANSWERS-false
, The purpose of Fannie Mae is to purchase and securitize mortgages in order to ensure that
funds are consistently available to the institutions that lend money to home buyers. - ANSWERS-
true
Which of the following are stipulations of the Federal Trade Commission Act? - ANSWERS--
advertisers must have evidence to back up their claims
- advertisements cannot be unfair
- advertising must be truthful and nondeceptive
Enron's limited partnerships were all of the following except: - ANSWERS-a mechanism to limit
employee losses.
Post mortems of the Enron collapse have targeted the "Casablanca maneuver" by members of
the Enron board of directors. What does this reference mean? - ANSWERS-Denying any
knowledge of questionable activity despite damming evidence
Enron experienced the beginning of the end with major losses in the third quarter of 2001. The
company had to explain a __________ loss to corporate credit-rating agencies. - ANSWERS-$638
million
This occurs when competitors conspire to set specific bids for goods or services. - ANSWERS-bid
rigging
This occurs where customers are lured into the store with the promise of a sale item that does
not exist, or, is not available in an appropriate amount. - ANSWERS-bait and switch
The broiler chicken price fixing increased the price of broiler chickens by how much? -
ANSWERS-50%
