Creative Accounting

Question 1

Socially accepted codes of behavior are called

a)morals.

b)laws.

c)ethics.

d)rules.

Question 2

In general, we acquire our moral compass from the process of _______, by which we’re inducted into a particular culture’s worldview.

a)socialization

b)introspection

c)legitimation

d)intuition

Question 3

Hopi children learn that Spider Woman spun the world and all of its creatures. According to Parsons, such myths help society to _______ the peoples’ worldview.

a)objectify

b)legitimize

c)integrate

d)intensify

Question 4

With respect to establishing a just and virtuous social order, how does Braid Reid characterize the role of the legal system in the world of business?

a)It’s a vital tool when properly applied.

b)It can be effective, but only when competitors agree to trust each other.

c)It’s ineffective, as it’s the default position when trust is absent.

d)The legal system can assure ethical behavior in the settlement of disputes.

Question 5

Enron executives used _______ to falsify financial statements.

a)stockholder knowledge

b)employee pensions

c)creative accounting

d)independent reviewers

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