Martha Stewart Was Convicted of Obstruction of Justice After Lying

question 50

Multiple Choice

Martha Stewart was convicted of obstruction of justice after lying to the fBI during an investigation of her sale of ImClone Systems stock,whose value dramatically fell immediately after she sold it.Her conviction was unusual,as this sort of white collar crime is much more likely to be dealt with in civil,rather than criminal,court.How does the tendency to deal with white collar criminals in civil court bias our understanding of the demographics of crime?

• A) It causes us to underestimate the number of property crimes committed each year.
• B) It encourages us to equate cash register honesty with real honesty.
• C) It leads us to overestimate the relationship between poverty and crime.
• D) It creates a false relationship between gender and crime.

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Definitions:

Audit Committee

A subset of a company's board of directors that oversees financial reporting and disclosure.

Proxy Solicitation

The process of collecting proxies from shareholders so that votes can be cast on behalf of those unable to attend the shareholders' meeting in person.

Proxy Statement

A document containing the information that companies are required to provide to shareholders that enables them to make informed decisions about matters that will be discussed at an annual or special shareholder meeting.

Investment Evaluation

The process of assessing the performance and potential of investment opportunities to inform financial decisions.