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What is insider trading?

41. Susan would like to stop employees from taking long lunches. She decides the best way to do so is to punish those who come back from lunch late. Which of the following is not a potential negative effect of Susan’s plan?
a.
undesirable emotional reactions
b.
recurrence of undesirable behavior
c.
aggressive, disruptive behavior
d.
employee indifference toward Susan


ANS:  D                  

   42.   According to the Ethics Competency: Time off for bad behavior, Samuel Waksal, former CEO of the biotech firm ImClone, was serving time in a federal prison for ____.

a.
creative accounting
b.
fudging the numbers on the income statement
c.
insider trading
d.
corporate theft


ANS:  C                   

   43.   According to the Ethics Competency: Time off for bad behavior, the prison rehab program for substance abusers is so popular that ____.
a.
one lawyer advised his clients to show up drunk on the day of their sentencing so they get interviewed right away about their substance abuse problem.
b.
inmates arrange for doctors to testify, for a consulting fee, that they purportedly treated the individual for alcohol abuse.
c.
inmates try to bribe the probation officer and judge to get in the program
d.
both one lawyer advised his clients to show up drunk on the day of their sentencing so they get interviewed right away about their substance abuse problem and inmates arrange for doctors to testify, for a consulting fee, that they purportedly treated the individual for alcohol abuse.


ANS:    D