Question 1

Pension accounting for ERISA differed from pension accounting for the SEC.

Accepted Answer

Pension accounting for ERISA (Employee Retirement Income Security Act) is regulated by the U.S. Department of Labor, while pension accounting for the SEC (Securities and Exchange Commission) is regulated by the U.S. Securities and Exchange Commission. Therefore, there may be differences in the accounting requirements and disclosure rules between the two entities.

Question 2

Facebook modified its advertising fees to base it on:
A) The average viewing time for all videos.
B) The average number of viewers per ad.
C) The average number of Facebook subscribers for the past quarter.
D) None of the above

Accepted Answer

Facebook modified its advertising fees to base it on the average viewing time for all videos. This change in the fee structure was made in response to criticism regarding inflated video metrics in the past.

Question 3

A company can be relieved of its pension obligations in bankruptcy.

Accepted Answer

In a bankruptcy case, a company can ask the court to terminate its pension plan and transfer the responsibility for paying pensions to the Pension Benefit Guaranty Corporation (PBGC). However, this may result in lower benefits for pensioners and retirees.

Question 4

Intel's biggest obstacle in its Pentium chip flaw was:
A) The cost of replacement.
B) Admitting that there was a problem and acknowledging it to the public.
C) The hit to earnings if the sales were not made.
D) Both a and c
E) None of the above

Accepted Answer

Intel's biggest obstacle was admitting there was a problem with the Pentium chip and acknowledging it publicly. This issue was more about reputation and trust than the direct financial cost.

Question 5

Facebook advertising fees were determined based on:
A) The average viewing time for videos.
B) The number of Facebook subscribers.
C) The number of hits per ad.
D) None of the above

Accepted Answer

Facebook advertising fees are determined based on factors such as the target audience, ad placement, and bidding strategy. The options A, B, and C are not accurate in determining Facebook advertising fees.

Question 6

The Pension Protection Act of 2006 does not apply to all employers with pension plans.

Accepted Answer

The answer of The Pension Protection Act of 2006 does...

Question 7

The typical number of loan renewals for subprime auto borrowers is:
A) Six.
B) Seven.
C) Eight.
D) Nine.

Accepted Answer

The answer of The typical number of loan renewals for...

Question 8

Return policies affect the compensation of sales people in department stores.

Accepted Answer

Sales people in department stores often receive commission or bonuses based on the amount of sales they make. If a customer returns a product, it can decrease the sales amount and therefore affect the compensation of the sales person. Thus, return policies do affect the compensation of sales people in department stores.

Question 9

Katy Perry has the support of the archdiocese in her purchase of the convent.

Accepted Answer

Katy Perry did receive support from the archdiocese in her efforts to purchase a convent in Los Angeles, which was part of a legal battle involving the Sisters of the Immaculate Heart of Mary.

Question 10

The FDA cannot control the content of celebrity Tweets on prescription drugs.

Accepted Answer

The answer of The FDA cannot control the content of...

Question 11

What error did Intel discover in its Pentium chip in July 1994?
A) That the chip was contaminated
B) That there was a floating point error that caused errors in division calculations
C) That the chip could cause computer viruses
D) None of the above

Accepted Answer

Intel discovered a floating point error in its Pentium chip in July 1994, which caused errors in division calculations. This led to a recall of the affected chips and a significant blow to Intel's reputation.

Question 12

Pfizer was able to complete its research park in New London, Connecticut.

Accepted Answer

Pfizer eventually left New London, Connecticut, and the research park was never completed, leading to a significant controversy and legal battle over eminent domain.

Question 13

What was the total cost if Intel replaced all chips?
A) $100 million
B) $200 million
C) $260 million
D) $320 million

Accepted Answer

The answer of What was the total cost if Intel...

Question 14

What did Intel discover when it ran tests on the Pentium chip?
A) That it would make an error once every 27,000 years
B) That the chance of an error was one in 9 billion
C) That the floating point error problem was not one that required attention
D) a and b only
E) a, b and c

Accepted Answer

Intel discovered that the Pentium chip would make an error once every 27,000 years, but the chance of an error was actually one in 9 billion. They initially believed the floating point error problem was not significant, but eventually acknowledged the issue and offered to replace affected processors.

Question 15

What company changed Intel's reaction to the flawed chips?
A) Dell
B) Microsoft
C) IBM
D) Apple

Accepted Answer

IBM's refusal to ship computers containing the flawed chips forced Intel to reconsider its initial reaction to the problem. Intel initially downplayed the significance of the flaw in its Pentium processors, but IBM's decision highlighted the seriousness of the issue, leading to a broader recall and replacement effort by Intel.

Question 16

How much money had Intel spent developing the Pentium chip?
A) $150 million
B) $500 million
C) $600 million
D) $1 billion

Accepted Answer

Intel spent approximately $1 billion developing the Pentium chip, showcasing the company's significant investment in advancing microprocessor technology.

Question 17

What is the correct rate of auto repossession on subprime auto loans?
A) One in five
B) One in six
C) One in seven
D) One in nine

Accepted Answer

One in six subprime auto loans results in repossession, reflecting the higher risk associated with lending to borrowers with lower credit scores.

Question 18

Who made the Intel error problem public?
A) Intel
B) A mathematician professor
C) IBM
D) None of the above

Accepted Answer

The Intel error problem was made public by a mathematician professor named Thomas Nicely, who noticed discrepancies in his calculations while using an Intel processor.

Question 19

One of the causes of underfunding of pensions were experts' assumptions about rates of return.

Accepted Answer

Experts made overly optimistic assumptions about rates of return, leading to underfunding of pensions.

Question 20

What was Intel's original proposal on the flawed chips?
A) To replace them without questions
B) To replace them only for computer users who had to do calculations
C) To replace them only for a fee
D) None of the above

Accepted Answer

Intel's original proposal was to replace the flawed chips only for computer users who had to do calculations, which caused significant public backlash.

Quiz 5: Ethics and Contracts

Pension accounting for ERISA differed from pension accounting for the SEC.

Facebook modified its advertising fees to base it on:

A company can be relieved of its pension obligations in bankruptcy.

Intel's biggest obstacle in its Pentium chip flaw was:

Facebook advertising fees were determined based on:

The Pension Protection Act of 2006 does not apply to all employers with pension plans.

The typical number of loan renewals for subprime auto borrowers is:

Return policies affect the compensation of sales people in department stores.

Katy Perry has the support of the archdiocese in her purchase of the convent.

The FDA cannot control the content of celebrity Tweets on prescription drugs.

What error did Intel discover in its Pentium chip in July 1994?

Pfizer was able to complete its research park in New London, Connecticut.

What was the total cost if Intel replaced all chips?

What did Intel discover when it ran tests on the Pentium chip?

What company changed Intel's reaction to the flawed chips?

How much money had Intel spent developing the Pentium chip?

What is the correct rate of auto repossession on subprime auto loans?

Who made the Intel error problem public?

One of the causes of underfunding of pensions were experts' assumptions about rates of return.

What was Intel's original proposal on the flawed chips?