Question 1

Which of the following is a legislation that was introduced to control bribery and other less obvious forms of payment to overseas officials and politicians by American publicly traded companies?

Accepted Answer

A)  The Foreign Assistance Act
B)  The Fair Credit Reporting Act
C)  The Fair Business Standards Act
D)  The Foreign Corrupt Practices Act

Question 2

_____ are facilitating payments to foreign officials in order to expedite or secure the performance of a routine governmental action.

Accepted Answer

The answer of _____ are facilitating payments to foreign officials...

Question 3

Which of the following legislations could fine companies for failing to disclose bribes and other forms of payments to foreign officials before the Foreign Corrupt Practices Act was introduced?

Accepted Answer

A)  The Securities and Exchange Commission
B)  The Dodd-Frank Wall Street Reform and Consumer Protection Act
C)  The U.S. Federal Sentencing Guidelines for Organizations
D)  The Ethics Resource Center

Question 4

Under the Federal Sentencing Guidelines for Organizations, a judge has the discretion to impose a so-called death penalty upon an organization, where the fine matches all the organization's assets.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is a difference between grease payments and bribes under the Foreign Corrupt Practices Act?

Accepted Answer

A)  Unlike grease payments, bribes induce foreign officials to act in violation of their lawful duty.
B)  Unlike grease payments, bribes include donations to bona fide charitable organizations.
C)  Unlike grease payments, bribes are meant to secure a routine governmental action.
D)  Unlike grease payments, bribes are used to facilitate processes approved of by law.

Question 6

In September and October 2008, financial markets around the world suffered a severe crash as:

Accepted Answer

A)  there was aggressive lending to subprime borrowers in a deregulated environment.
B)  the Public Company Accounting Oversight Board (PCAO
B)   was disbanded, allowing auditors to work unregulated.
C)  the assets of American overseas companies were seized by the Federal Sentencing Guidelines for Organizations.
D)  all publicly traded firms only used the services of auditors affiliated with the Public Company Accounting Oversight Board.

Question 7

Under the Federal Sentencing Guidelines for Organizations, the base fine multiplied by the _____ gives the total fine amount.

Accepted Answer

The answer of Under the Federal Sentencing Guidelines for Organizations,...

Question 8

According to the Federal Sentencing Guidelines for Organizations, criminal offenses, whether actual or suspected, must generate an appropriate response, analysis, and corrective action in order to establish an effective compliance program.

Accepted Answer

A) True 
 B)False

Question 9

In order to minimize an organization's culpability score, the Federal Sentencing Guidelines for Organizations prescribes that its employees be granted absolute discretionary authority.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following responsibilities was granted to the Consumer Financial Protection Bureau (CFPB) ?

Accepted Answer

A)  Authority to act if a bank with more than $50 billion in assets poses a threat to the financial stability of the United States
B)  Authority to limit the ability of banks to trade on their own accounts
C)  Authority to examine and enforce regulations for banks and credit unions with assets over $10 billion
D)  Authority to conduct studies regarding consolidation of accounting firms

Question 11

Differentiate between bribes and grease payments.

Accepted Answer

Bribes are payments of money or anything...

Question 12

The _____ is a fine that is set high enough by the Federal Sentencing Guidelines for Organizations to match all the assets of an organization and effectively puts the organization out of business.

Accepted Answer

A)  prohibition payment
B)  death penalty
C)  facilitation payment
D)  relative penalty

Question 13

The concept of an ethical culture was recognized, for the first time, as a foundational component of an effective compliance program under the Revised Federal Sentencing Guidelines for Organizations.

Accepted Answer

A) True 
 B)False

Question 14

The maximum penalty that a judge can impose upon an organization for violating the Federal Sentencing Guidelines for Organizations is a penalty worth:

Accepted Answer

A)  a tenth of the organization's assets.
B)  a quarter of the organization's assets.
C)  half of the organization's assets.
D)  the full amount of the organization's assets.

Question 15

The _____ is a legislative response to the corporate accounting scandals of the early 2000s that cover the financial management of businesses.

Accepted Answer

A)  Sarbanes-Oxley Act
B)  Glass-Steagall Act
C)  Bland-Allison Act
D)  Taft-Harley Act

Question 16

Which of the following is true of the effective compliance program prescribed by the Federal Sentencing Guidelines for Organizations?

Accepted Answer

A)  A high-level official (such as a corporate ethics officer)  must be in charge of and accountable for the compliance program.
B)  Individuals should be granted excessive discretionary authority, as that would reduce the risk of criminal conduct.
C)  Criminal offenses must generate an appropriate response, analysis, and corrective action, but not on the basis of suspicion.
D)  An organization must be strict to address criminal misconduct in a consistent manner but should avoid penalizing employees for it.

Question 17

A company can be found in violation of the Foreign Corrupt Practices Act even if its bribe is unsuccessful.

Accepted Answer

A) True 
 B)False

Question 18

The Sarbanes-Oxley Act is a legislative response to the corporate accounting scandals of the early 2000s that covers the financial management of businesses.

Accepted Answer

A) True 
 B)False

Question 19

Under the Foreign Corrupt Practices Act, payments that are acceptable (legal)  provided they expedite or secure the performance of a routine governmental action are called _____.

Accepted Answer

A)  facilitation payments
B)  accentuation payments
C)  alternative payments
D)  implicit payments

Question 20

The Credit Rating Agency and the New York Stock Exchange are the only bodies authorized to enforce the Foreign Corrupt Practices Act.

Accepted Answer

A) True 
 B)False

Exam 6: The Role of Government

Differentiate between bribes and grease payments.

Correct AnswerverifiedBribes are payments of money or anything...View AnswerShow Answer

The Sarbanes-Oxley Act is a legislative response to the corporate accounting scandals of the early 2000s that covers the financial management of businesses.

Correct AnswerverifiedShow Answer

Under the Federal Sentencing Guidelines for Organizations, the base fine multiplied by the _____ gives the total fine amount.

Correct AnswerverifiedShow Answer

The _____ is a fine that is set high enough by the Federal Sentencing Guidelines for Organizations to match all the assets of an organization and effectively puts the organization out of business.

Correct AnswerverifiedShow Answer

In September and October 2008, financial markets around the world suffered a severe crash as:

Correct AnswerverifiedShow Answer

The concept of an ethical culture was recognized, for the first time, as a foundational component of an effective compliance program under the Revised Federal Sentencing Guidelines for Organizations.

Correct AnswerverifiedShow Answer

Which of the following is a difference between grease payments and bribes under the Foreign Corrupt Practices Act?

Correct AnswerverifiedShow Answer

The Credit Rating Agency and the New York Stock Exchange are the only bodies authorized to enforce the Foreign Corrupt Practices Act.

Correct AnswerverifiedShow Answer

According to the Federal Sentencing Guidelines for Organizations, criminal offenses, whether actual or suspected, must generate an appropriate response, analysis, and corrective action in order to establish an effective compliance program.

Correct AnswerverifiedShow Answer

Which of the following is true of the effective compliance program prescribed by the Federal Sentencing Guidelines for Organizations?

Correct AnswerverifiedShow Answer

The maximum penalty that a judge can impose upon an organization for violating the Federal Sentencing Guidelines for Organizations is a penalty worth:

Correct AnswerverifiedShow Answer

_____ are facilitating payments to foreign officials in order to expedite or secure the performance of a routine governmental action.

Correct AnswerverifiedShow Answer

The _____ is a legislative response to the corporate accounting scandals of the early 2000s that cover the financial management of businesses.

Correct AnswerverifiedShow Answer

Under the Federal Sentencing Guidelines for Organizations, a judge has the discretion to impose a so-called death penalty upon an organization, where the fine matches all the organization's assets.

Correct AnswerverifiedShow Answer

Which of the following legislations could fine companies for failing to disclose bribes and other forms of payments to foreign officials before the Foreign Corrupt Practices Act was introduced?

Correct AnswerverifiedShow Answer

Under the Foreign Corrupt Practices Act, payments that are acceptable (legal) provided they expedite or secure the performance of a routine governmental action are called _____.

Correct AnswerverifiedShow Answer

Which of the following is a legislation that was introduced to control bribery and other less obvious forms of payment to overseas officials and politicians by American publicly traded companies?

Correct AnswerverifiedShow Answer

Which of the following responsibilities was granted to the Consumer Financial Protection Bureau (CFPB) ?

Correct AnswerverifiedShow Answer

A company can be found in violation of the Foreign Corrupt Practices Act even if its bribe is unsuccessful.

Correct AnswerverifiedShow Answer

In order to minimize an organization's culpability score, the Federal Sentencing Guidelines for Organizations prescribes that its employees be granted absolute discretionary authority.

Correct AnswerverifiedShow Answer

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Bribes are payments of money or anything...
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