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Chapter 1
Origins and Development of Security
True or False
T* F
One of the oldest contract security companies in the United States is Pinkerton.
T F*
Expenditures on private security have decreased significantly in the past 15 years.
T F*
The first federal bill attempting to regulate private security was presented to
Congress in 1951 by Representative Don Sundquist.
T F* The Private Security Officer Employment Standards Act of 2002 spelled out
specific training requirements for security personnel.
Multiple Choice
All of the following are reasons for the recent increase in expenditures for security in the US,
except:
a) drugs and violence in the workplace
b) the significant, steady increase in all types of crime in the past 10 years *
c) the threat of terrorism
d) the kidnapping of executives assigned outside the United States
Beginning in the latter half of the 18th Century in England, which of the following was/were
true?
a) Workers were exposed to long hours, crippling work, and low wages
b) Thievery, crimes of violence, and juvenile delinquency were the order of the day
c) More counterfeit money was in circulation than government-issued money
d) All of the above *
e) Both a and c
Henry Wells and William Fargo were partners in what company, initially established in 1850 and
eventually becoming Wells Fargo?
a) American District Telegraph
b) Enron
c) American Express *
d) Brinks
What former Secret Service investigator started a major detective agency in 1909?
a) William Fargo
b) William J. Burns *
c) Edwin Holmes
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d) West Churchman
What year signifies the beginning of the modern age of security?
a) 1940
b) 1955 *
c) 1971
d) 2001
Due to the recent increased complexity of fraud, arson, burglary, and other areas of sophisticated
criminal practices, which of the following has/have occurred as a response?
a) There has been an increase in the number of consulting agencies and private
investigative firms
b) Central repositories of security information have been created
c) There has been an increase in the number of websites selling information
ranging from criminal histories to credit checks
d) All of the above *
e) Both b and c
d) None of the above
According to 2002 statistics, all of the following is/are among the most serious of economic
crime problems except:
a) DVD piracy *
b) money laundering
c) identity fraud
d) insurance crime
e) E-commerce crime
An act passed in 2002, in the wake of the Enron scandal, requires greater financial disclosure and
audits for public companies. What is the name of this act?
a) Gore bill
b) Sarbanes-Oxley Act *
c) Sundquist Act
d) Shepard Act
What was C. West Churchman’s contribution to security management?
a) He sponsored the Sundquist bill
b) He developed the Code of Ethics for the security profession
c) He outlined a systems approach, which focuses on central objectives within an
organization *
d) He conceived the idea of preventing crime instead of controlling it
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