A "Ponzi Scheme" is best described as: a. A fraudulent investing scam that "generates returns" for early investors by distributing funds received from new investors. b. The knowing concealment of product defects. c. The intentional false reporting of test results to regulatory authorities.

17. The most notable unethical conduct of the Enron Corporation involved: a. The knowing concealment of product defects. b. An accounting fraud designed to overstate the company's financial performance. c. The intentional false reporting of test results to regulatory authorities.

18. The most notable unethical conduct of Madoff Investment Securities involved: a. An accounting fraud designed to overstate the company's financial performance. b. The intentional false reporting of test results to regulatory authorities. c. The misappropriation of client funds.

19. The unethical conduct that contributed to the Financial Collapse of 2008 can best be described as:

a. An accounting fraud designed to overstate the industry's financial performance. b. A systemic failure by those in the financial industry to act in good faith because they believed someone other than themselves would bear the consequences of their behavior. c. The misappropriation of client funds.

20. Most businesses in the United States today are operated as: a. Corporations. b. Limited liability companies. c. Sole proprietorships.