Corruption Flashcards
Payers can make corrupt payments by giving recipients hidden interests in profit-making enterprises.
A. True
B. False
True
Daniela, a plant manager for a utility company, also owns a commercial cleaning business. Daniela threatened to withhold business from any vendors of the utility company that did not hire her cleaning business for their office cleaning needs. Which of the following BEST describes the type of corruption scheme in which Daniela engaged?
A. Kickback scheme
B. Collusion scheme
C. Illegal gratuity scheme
D. Economic extortion scheme
D. Economic extortion scheme
When an employee or official uses force or fear to demand money in exchange for making a particular business decision, that individual is engaging in:
A. A kickback scheme
B. An illegal gratuity scheme
C. Economic extortion
D. Bribery
C. Economic extortion
Which of the following is NOT a type of loan that frequently turns up in corruption cases?
A. A legitimate loan in which a third party makes the loan payments
B. An outright payment falsely described as an innocent loan
C. A legitimate loan made on favorable terms
D. A legitimate loan made at market rates
D. A legitimate loan made at market rates
Elena Smith, a city commissioner, negotiated a land development deal with a group of private investors. After the deal was approved, the investors rewarded Elena with an all-expenses-paid trip even though giving such rewards to government officials is prohibited by law. Which of the following is the MOST APPROPRIATE term to describe what has taken place?
A. Collusion
B. Illegal gratuity
C. Economic extortion
D. Need recognition
B. Illegal gratuity
Which of the following is a typical method used to make corrupt payments in corruption schemes?
A. Gifts, travel, and entertainment
B. Payment toward credit card debt
C. Checks and other financial instruments
D. All of the above
D. All of the above
James is a purchaser for a large government entity. ABC Inc. tells James that if he awards ABC at least $5 million in contracts over the next two years, then ABC will hire James at the end of the two years at twice his current salary. Because no actual money changes hands, this could NOT be considered a bribery or corruption scheme.
A. True
B. False
False
Which of the following scenarios is an example of a conflict of interest?
A. An employee has an undisclosed personal relationship with a company that does business with their employer.
B. An employee is related to someone who works for one of their company’s vendors and informs their employer of the relationship.
C. An employee for a phone installation company works as a fishing guide on weekends but does not tell the phone company about the other job.
D. An employee for a pharmaceutical company has an economic interest in a company that does business with their employer and discloses it to their employer.
A. An employee has an undisclosed personal relationship with a company that does business with their employer.
Which of the following is TRUE regarding the methods typically used for making corrupt payments in corruption schemes?
A. Payers often make corrupt payments by selling property to recipients at prices lower than the property’s market value
B. Payers often make corrupt payments by offering recipients loans on extremely favorable terms
C. Payers often make corrupt payments by paying off the recipient’s credit card debt
D. All of the above
D. All of the above
Bruce is a purchaser for Acme Widgets. Bruce’s brother-in-law is a salesperson for Olson Electronics, one of Acme’s largest suppliers. Bruce told his supervisor about the relationship, and she approved his ordering of supplies from his brother-in-law, provided that the purchases were reviewed by a senior manager. Bruce did not receive any favors or money from his brother-in-law in return for the sales. A year after Bruce discussed the situation with his supervisor, Acme’s management discovers that another supplier offers the same parts as Olson Electronics but at a cheaper price. Acme Widgets is considering suing Bruce for conflict of interest. Which of the following is the MOST ACCURATE statement about Acme’s chances of success?
A. Acme’s chances are good because it is clear that Bruce had a conflict of interest in dealing with his brother-in-law.
B. Acme’s chances are poor because Bruce did not actually receive any money from his brother-in-law for sending him business.
C. Acme’s chances are poor because the company was aware of the situation and allowed Bruce to do business with his brother-in-law’s company despite the relationship.
D. Acme’s chances are good because it could have gotten the supplies at a lower price
C. Acme’s chances are poor because the company was aware of the situation and allowed Bruce to do business with his brother-in-law’s company despite the relationship.
Which of the following statements about the methods used to make corrupt payments in corruption schemes is INCORRECT?
A. Payers often make corrupt payments by buying assets from recipients and allowing the recipients to retain title or use of the items.
B. Payers often make corrupt payments by using their credit cards to pay recipients’ transportation, vacation, and entertainment expenses.
C. Payers often make corrupt payments by making outright payments falsely described as innocent loans.
D. Payers often make corrupt payments by selling property to recipients at prices higher than the property’s market value.
D. Payers often make corrupt payments by selling property to recipients at prices higher than the property’s market value.
Which of the following scenarios is an example of a kickback scheme?
A. A vendor inflates the amount of an invoice submitted to the company for payment
B. An employee receives a payment for directing excess business to a vendor
C. A politician threatens to close a business if it does not pay a bribe
D. A government official demands money in exchange for making a business decision
B. An employee receives a payment for directing excess business to a vendor
Which of the following is NOT an example of a corruption scheme?
A. A procurement manager refuses to award contracts to vendors unless they agree to do business with the company where the manager’s spouse works.
B. A law firm’s bookkeeper approves a fake invoice and issues a payment to a shell company that the bookkeeper controls.
C. A vendor gives expensive airplane tickets to a government purchasing agent as a thank-you gift after the agent awards a large contract to the vendor.
D. A bank manager promises to approve a contractor’s loan application in exchange for discounted home improvement work.
B. A law firm’s bookkeeper approves a fake invoice and issues a payment to a shell company that the bookkeeper controls.
