Chapter 4
Refers to the standard of moral behavior.
What is ethics?
The trading of previously issued securities from one investor to another takes place in the:
What is secondary market?
A(n) ________-based ethics code emphasizes the prevention of unlawful behavior by increasing control and penalizing wrongdoers.
What is compliance?
What type of scheme did B. Madoff commit and stole over $65 billion from investors?
What is Ponzi?
Many individuals today believe that ethical behavior is determined by what is best for them at the time.
What is situational ethics?
Refers to the first public offering of a corporation's stock.
What is initial public offering (IPO)?
A firm's concern for the welfare of society
What is corporate social responsibility?
An unresolved ethical issue that surrounds global trade
What is labor standards?
When investors purchase ________ stock, they receive a priority claim in the payment of dividends, as well as assets, if the business is liquidated. However, these investors do not have voting rights.
What is preferred?
A(n) ________-based ethics code defines corporate values; creates a supportive environment, and, stresses shared accountability among employees.
What is integrity?
A phone call to a government official by an employee of the Enron Corporation disclosed the deception and dishonesty of the firm's accounting records.
What was/is a whistleblower?
Learned by observing the actions of others in the organization.
What are corporate values?
Mark impresses his friends by stating that he just cast four votes in the election of the board of directors of Microsoft, indicating that Mark owns __________ stock in Microsoft.
What is common?
A very critical last step in the process of establishing an ethics code
What is enforcement?
Investors using private company information to further their own fortunes.
What is insider trading?
Charitable donations by corporations to nonprofit organizations
What is corporate philanthropy?
The ________ is a large national electronic stock trading market.
What is NASDAQ?
A unique focus of an integrity-based ethics code
What is shared accountability among employees?
Government act that deals with bribery to obtain business
What is The Foreign Corrupt Practices Act?: