61. (p. 118)Which of the following is true of the Federal Sentencing Guidelines for Organizations (FSGO)?
A. The FSGO has a very narrow definition of an organization.
B. The FSGO cannot levy monetary fines on organizations that violate its stipulations.
C. The FSGO does not hold organizations responsible for their employees’ criminal activities.
D. The FSGO includes an exhaustive list of covered business crimes.
62. (p. 119)Which of the following is true of the culpability score?
A. It can be increased or decreased according to predetermined factors.
B. It is calculated before the base fine of an organization is determined.
C. It plays no role in calculating monetary fines under the FSGO.
D. It is a multiplier of the base fine with a maximum of 2.
63. (p. 119)The formula used to calculate the total fine sentenced by the Federal Sentencing Guidelines for Organizations (FSGO) is:
A. the base fine multiplied by the culpability score.
B. the base fine plus the culpability score.
C. the base fine minus the culpability score.
D. the base fine divided by the culpability score.
64. (p. 119)The maximum penalty that a judge can impose upon an organization for violating the Federal Sentencing Guidelines for Organizations is a penalty worth:
A. a tenth of the organization’s assets.
B. a quarter of the organization’s assets.
C. half of the organization’s assets.
D. the full amount of the organization’s assets.
65. (p. 119)The _____ is a fine that is set high enough to match all the organization’s assets and effectively puts the organization out of business.
A. prohibition payment
B. death penalty
C. facilitation payment
D. relative penalty
66. (p. 119)Under the FGSO, the death penalty:
A. can only be conferred upon multinational corporations and not on smaller businesses.
B. allows the state to appropriate half of the organization’s total assets.
C. is warranted where the organization was operating primarily for a criminal purpose.
D. cannot be levied upon organizations if it means putting them out of business.
67. (p. 119-120)Which of the following is true of the effective compliance program prescribed by Federal Sentencing Guidelines for Organizations?
A. A high-level official (such as a corporate ethics officer) must be in charge of and accountable for the compliance program.
B. Individuals should be granted excessive discretionary authority, as that would reduce the risk of criminal conduct.
C. Criminal offenses must generate an appropriate response, analysis, and corrective action, but not on the basis of suspicion.
D. An organization must be strict to address criminal misconduct in a consistent manner but should avoid penalizing employees for it.
68. (p. 122)The _____ is a legislative response to the corporate accounting scandals of the early 2000s that cover the financial management of businesses.
A. Sarbanes-Oxley Act
B. Trust Indenture Act
C. Equal Opportunity Act
D. Foreign Corrupt Practices Act
69. (p. 122)The creation of the _____ was an attempt to reestablish the perceived independence of auditing companies after the corporate accounting scandals of the early 2000s.
A. Securities and Exchange Commission
B. Consumer Financial Protection Bureau
C. Federal Labor Relations Authority
D. Public Company Accounting Oversight Board
70. (p. 122)Title II of the Sarbanes-Oxley Act:
A. allows public accounting firms to audit a company whose CEO was employed by the firm within the past 12 months.
B. disbanded the Public Company Accounting Oversight Board and allows publicly traded companies to be audited independently.
C. requires senior auditors to rotate off an account every five years, and junior auditors every seven years.
D. permits auditors to keep written communications between management and themselves private.
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