20 Questions
What is the main concern regarding the concept of being 'under water' in mortgages?
Home values are less than mortgage values
From the provided statements, which belief might lead to unethical behavior in business according to the text?
Financial gain is the sole aim in business
What does the text suggest about the relationship between financial success and ethical behavior?
Financial success correlates with unethical behavior
Based on the statements provided, what is the view of individuals who believe 'Business is like a game one plays to win'?
'In business, people will do anything to further their own interest'
What were some of the direct causes of the 2008 Financial Disaster?
Credit Default Swaps, Securitized Mortgages, Derivatives
What was a common practice by rating agencies that contributed to the 2008 Financial Disaster?
Paid fees by companies they rated and took investment banks' advice
What was a significant issue related to CEOs that contributed to the financial crisis?
Understanding complex financial products and focusing on short-term gains
What was a common characteristic of mortgage originators during the 2008 Financial Disaster?
Relaxed lending standards and offered sophisticated products consumers didn't understand
How did regulators contribute to the 2008 Financial Disaster?
Were 'asleep at the switch' and looked for high-paying jobs in financial industry
Why were investors punishing companies during the 2008 Financial Disaster?
For not delivering huge returns
Which statement reflects a common ethical judgment according to the text?
Business persons prioritize profit over ethical considerations.
What is the implied view of individuals who strongly agree with 'Business is like a game one plays to win'?
Business success justifies disregarding moral values.
What common belief might lead to unethical practices according to the text?
Competitive pressure forces managers to resort to unethical actions.
Which statement portrays a cynical perspective often associated with business ethics?
'The profit motive pressures managers to compromise their ethical concerns.'
What was a key incentive that led to short-term thinking for both companies and individuals during the 2008 Financial Disaster?
High salaries and bonuses for financial professionals
What factor contributed to the overvaluation of securitized mortgages by rating agencies during the 2008 Financial Disaster?
Receiving advice from investment banks on how to rate securities
What was a common characteristic of subprime mortgages that contributed to the 2008 Financial Disaster?
Lack of understanding by consumers about the products they were buying
What factor led to a conflict of interest for regulators during the 2008 Financial Disaster?
Asleep at the switch due to looking for high-paying jobs in the financial industry
Why did many investment banks have no 'skin' in the game during the 2008 Financial Disaster?
They went public without holding substantial financial stakes in their own products
What was a significant contributing factor to the Financial Disaster of 2008 related to CEOs' compensation packages?
Being rewarded based on long-term stock price performance
Test your knowledge on the causes of the financial disaster in 2008, including factors like complex financial products, incentives for short-term thinking, herd mentality, arrogance, greed, and recklessness. Explore the roles of investment banks, cheap money supply, and rating agencies in the crisis.
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