The Fraud at Tyco Included Each of the Following Acts

question 55

Multiple Choice

The fraud at Tyco included each of the following acts except for:

• A) Benefits given to certain members of the board of directors to secure their silence about the fraud
• B) Corporate assets used by members of top management for personal purposes
• C) Setting up special-purpose-entities to keep debt off Tyco's books
• D) Related party transactions that were not adequately disclosed

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Definitions:

Maintenance of Membership

A union agreement clause requiring employees to maintain union membership for the duration of the employment contract.

Agency Shop

A workplace agreement where employees do not have to join the union, but must pay union dues since the union negotiates on behalf of all employees.

Closed Shop

A form of labor agreement in which a company agrees to hire and employ only members of a labor union.

Rand Formula

A labor union policy that mandates all workers in a bargaining unit to pay union dues, regardless of union membership, to ensure collective bargaining benefits for all.