Chapter 7

Question 1

Activities undertaken by an individual or company that are done in a dishonest or illegal manner and are designed to give an advantage to the perpetuating individual or company

Answer 1

Corporate Fraud

Question 2

Augmenting financial data to yield previously non-existent earnings

Answer 2

Cooking the books

Question 3

Conduct of trustee, attorney, corporate officer or other fiduciary that consists of taking advantage of his position in transaction and acting for his own interests rather than for the interests of the beneficiaries of the trust corporate shareholders or his client

Answer 3

Self-dealing

Question 4

What are two fraudulent schemes?

Answer 4

Load shift and Get shorty

Question 5

Act of brazenly denying ones participating in questionable activity in the face of damning evidence

Answer 5

Casablanca maneuver

Question 6

Interplay between economics law and politics and how institutions develop in different social and economic systems

Answer 6

Political Economic Theory

Question 7

Proposes that for a corporation to continue to exist it must act in congruence with society’s norms and values

Answer 7

Legitimacy Theory

Question 8

Set new or expanded requirements for all US public company boards, management, and public accounting firms.

Answer 8

Sarbanes-Oxley 2002