th Multiple Choice Questions Please answer all of the following multiple choice
ID: 1165675 • Letter: T
Question
th Multiple Choice Questions Please answer all of the following multiple choice questions: Molly, the CEO of a corporation owning a number of pet stores, calls you for advice. She tells you that she received inside information that the stock of the company was going to go down because of reports that a number of dogs sold by the store had become ill and that she, therefore, immediately sold all her stock in the company before the information became public. She tells you that she has been advised that she is going to be charged with a securities violation involving insider trading. Which of the following is true regarding her situation? 1. a. Corporate executives may be fined but may not be sent to jail. b. Corporate executives may be sent to jail, but only for offenses endangering others. c. Corporate executives may be sent to jail, but only for fraud involving banks. d. Corporate executives may be sent to jail for violation of criminal laws. 2. Which of the following is true regarding the relationship between law and ethics? a. The law attempts to prohibit all "bad" behavior. b. An action that is unethical is also considered illegal in the U.S. c. The law prohibits all "morally objectionable" behavior. d. An action that is unethical may nonetheless be legal. 3. Which of the following is the group given the ultimate legal authority to change management? a. Shareholders b. Human resource managers c. The mayor in the applicable jurisdiction d. The city council in the applicable jurisdiction 4. Which of the following is a term for the maximization of shareholder value? a. Shareholder importance b. Shareholder primacy 2Explanation / Answer
1. Answer is d. Corporate executives can be send to jail for violation of criminal laws.
2. C
3. It is always shareholders. The board sits and resolution is passed for all such changes and the amendments are done.
4 Shareholder primacy
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