Business Ethics Final Exam With Correct Answers

Which two concepts are best illustrated by the following passage from a January 29, 2008, report in The New York Times about Société General trader Jerome Kevel, whose trading misconduct eventually led the bank to lose more than $7 billion? "Over time, Mr. Kevel had increased the size of his bets - he hedged his positions on paper with falsified documents and e-mail messages - but he remained convinced that success was just around the corner. 'He bet on the return of the markets that were extremely low and he imagined that there would be a return of the markets just as large as the losses,' [a French prosecutor] said. 'There is an addiction. There is a dependency on this complicated game of betting on the markets, and there is a sort of spiral into which it's difficult to exit.'" illusion of optimism and escalation of commitment. According to a May 14, 2008 on-line legal newsletter, the former president of American multinational corporation Pacific Consolidated Industries Martin Self was awaiting sentencing for committing a crime. He admitted that "he approved a marketing contract for the relative of an employee with the United Kingdom [Great Britain] Ministry of Defense, which resulted in more than $70,000 in payments. But the relative did no work. Instead, the money was meant to [get] contracts for Pacific." What federal law did Mr. Self-violate? The Foreign Corrupt Practices Act