Answer ALL 5 discussion questions.

Case 3.25 Stanford University and Government Payment for Research Included in government research grants to universities are indirect cost payments designed to compensate for the researchers' use of the schools' facilities. Stanford University received approximately $240 million in federal research funds annually. About $75 million went to actual research, and Stanford billed the federal gov- ernment $85 million, or 20 percent of its operating budget, for its overhead. 50 The rest of the research funds went toward employee benefits. An audit of Stanford's research program in 1990 by U.S. Navy accountant Paul Biddle revealed that the school the government $3,000 for a cedar-lined closet in president Donald Kennedy's home (Hoover House), $2,000 for flowers, $2,500 for refurbishing a grand pia $7000 for