WCC Exam 3 – Study Guide – Course Review Material
corporation - correct answer ✔✔a legal structure allowing individuals to pool resources (capital,
labor, etc.) to generate profit
Characteristics of a corporation - correct answer ✔✔They act as a single entity separate from
the persons who run/own them; and they can own property.
Why are corporations "well positioned" to engage in illegal and/or unethical activities? - correct
answer ✔✔Disproportionate influence on government/politicians {the power elite}
How long have corporations been in existence? - correct answer ✔✔since roman times
How are corporations held liable for criminal activity? - correct answer ✔✔Corporate agents'
actions may be imputed to the corporation itself; To be a corporate crime, actions should be (1)
on behalf of the corporation, (2) to the benefit of the corporation, or (3) within the scope of
authority granted granted to the agent by the corporation
three primary ways by which corporate crime might be considered violent crime. - correct
answer ✔✔Violence against public (unsafe environmental practices); violence against
consumers (unsafe products); violence against workers (unsafe working conditions)
How are work-related injuries and diseases associated with premature death? - correct answer
✔✔major cause, accurate data are hard to estimate
trust/monopoly - correct answer ✔✔The exclusive possession or control of the supply or trade
in a commodity or service.
, two primary ways by which corporations try to eliminate competition - correct answer ✔✔1.
reduce competitors sales (predatory pricing and pressuring others not to work with
competitors)
2. increase competitors cost (predatory arrangements with suppliers, lending institution
pressure, sabotage)
major anti-trust legislation in the U.S. - correct answer ✔✔Sherman anti-trust act, Clayton Anti-
Trust Act, Federal Trade Commission Act
Clayton Anti-Trust Act - correct answer ✔✔specific activities that can be regulated but exempts
labor (unions, sports teams);
Sherman anti-trust act - correct answer ✔✔1st proconsumer legislation that prohibits business
activities that reduce competition in the marketplace;
Federal Trade Commission Act - correct answer ✔✔established federal trade commission with
focus on unfair competition
primary forms of abuse-of-power associated with corporate crime - correct answer ✔✔-
corruption of political process (bribery, economic interests outweigh public safety)
- corporate crimes against citizens and taxpayers (defrauding the government)
- corporate tax evasion
primary purpose of anti-trust laws - correct answer ✔✔To promote and protect competition
horizontal price fixing - correct answer ✔✔competition businesses conspire to charge prices at
a similar level
corporation - correct answer ✔✔a legal structure allowing individuals to pool resources (capital,
labor, etc.) to generate profit
Characteristics of a corporation - correct answer ✔✔They act as a single entity separate from
the persons who run/own them; and they can own property.
Why are corporations "well positioned" to engage in illegal and/or unethical activities? - correct
answer ✔✔Disproportionate influence on government/politicians {the power elite}
How long have corporations been in existence? - correct answer ✔✔since roman times
How are corporations held liable for criminal activity? - correct answer ✔✔Corporate agents'
actions may be imputed to the corporation itself; To be a corporate crime, actions should be (1)
on behalf of the corporation, (2) to the benefit of the corporation, or (3) within the scope of
authority granted granted to the agent by the corporation
three primary ways by which corporate crime might be considered violent crime. - correct
answer ✔✔Violence against public (unsafe environmental practices); violence against
consumers (unsafe products); violence against workers (unsafe working conditions)
How are work-related injuries and diseases associated with premature death? - correct answer
✔✔major cause, accurate data are hard to estimate
trust/monopoly - correct answer ✔✔The exclusive possession or control of the supply or trade
in a commodity or service.
, two primary ways by which corporations try to eliminate competition - correct answer ✔✔1.
reduce competitors sales (predatory pricing and pressuring others not to work with
competitors)
2. increase competitors cost (predatory arrangements with suppliers, lending institution
pressure, sabotage)
major anti-trust legislation in the U.S. - correct answer ✔✔Sherman anti-trust act, Clayton Anti-
Trust Act, Federal Trade Commission Act
Clayton Anti-Trust Act - correct answer ✔✔specific activities that can be regulated but exempts
labor (unions, sports teams);
Sherman anti-trust act - correct answer ✔✔1st proconsumer legislation that prohibits business
activities that reduce competition in the marketplace;
Federal Trade Commission Act - correct answer ✔✔established federal trade commission with
focus on unfair competition
primary forms of abuse-of-power associated with corporate crime - correct answer ✔✔-
corruption of political process (bribery, economic interests outweigh public safety)
- corporate crimes against citizens and taxpayers (defrauding the government)
- corporate tax evasion
primary purpose of anti-trust laws - correct answer ✔✔To promote and protect competition
horizontal price fixing - correct answer ✔✔competition businesses conspire to charge prices at
a similar level
