The Wall Street Journal Weekly Quiz
Covering front-page articles from January 10 – 14, 2005
Professor Guide with Summaries
Developed by: Scott R. Homan Ph.D., Purdue University
Questions 1 – 12 from First Section, Section A
Title:
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Date:
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Tale of Two Docs: Why Dentists Are Earning More
MARK MAREMONT
A1
January 10, 2005
http://online.wsj.com/article/0,,SB110531516417121170,00.html
Once the poor relations in the medical field, dentists in the past few years have started
making more money than many types of physicians, including internal-medicine doctors,
pediatricians, psychiatrists, and those in family practice, according to survey data from
the American Dental Association and American Medical Association.
On average, general dentists in 2000, the most recent year for which comparative data are
available, earned $166,460 -- compared with $164,100 for general internal-medicine
doctors, $145,700 for psychiatrists, $144,700 for family-practice physicians, and
$137,800 for pediatricians. All indications are that dentists have at least kept pace with
physicians since then.
1. Today dentist often make _______money than physicians.
a. more Correct
b. less
c. the same amount of
d. twice the amount of
2. On average dentist make ___________ dollars per year.
a. more than 100,000.00 Correct
b. more than 200,000.00
c. more than 300,000.00
d. more than 400,000.00
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Maverick Banker In Texas Chases Distressed Assets
GEORGE ANDERS
A1
January 13, 2005
http://online.wsj.com/article/0,,SB110556884311724524,00.html
PLANO, Texas -- Shortly after Sept. 11, 2001, U.S. airlines' prospects looked dire. But
Texas banker Andrew Beal saw a bargain. He began buying airline bonds at deeply
depressed prices. It's been a bumpy ride, but many of the $1 billion of bonds he bought
have rallied substantially. That means profits of at least $70 million a year, Mr. Beal says.
© Copyright 2005 Dow Jones & Company, Inc. All rights reserved.
WSJ Professor Guide: Page 1 of 12
Such bets have made the 52-year-old Mr. Beal a billionaire and a controversial figure in
banking. His wholly owned Beal Bank ranked seventh in profitability among 8,000 U.S.
banks as of Sept. 30, as measured by a five-year average return on equity, according to
Highline Banking Data Services. But Mr. Beal likes to pour money into financially
strained areas that others won't touch, creating some concern about how long his winning
streak can last. Unlike many bankers, Mr. Beal never earned an M.B.A. or climbed the
corporate ladder. He is a college dropout who has been self-employed his whole career.
He bought and fixed up old homes in his 20s, then opened a small bank 16 years ago.
Today, he owns 100% of Beal Financial Corp., a bank holding company doing business
in Texas, Nevada and California with combined assets of $7.8 billion and a net worth of
more than $1.7 billion.
3. Texas banker Andrew Beal likes to invest in _______ risk ventures
a. low
b. high Correct
c. zero
d. minimal
4. Texas banker Andrew Beal completed what college degree(s).
a. MBA
b. BS
c. AS
d. Mr. Beal is a college dropout Correct
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Foreign Auto Makers Aim to Boost U.S. Market Share
JOSEPH B. WHITE and NORIHIKO SHIROUZU
A1
January 12, 2005
http://online.wsj.com/article/0,,SB110549518122523684,00.html
DETROIT – Japanese and European auto makers are gearing up to redouble their assault
on the U.S. auto market, and that could threaten more jobs at Detroit's big, unionized auto
makers. General Motors Corp., Ford Motor Co. and the Chrysler unit of German auto
maker DaimlerChrysler AG have together lost nearly nine percentage points of market
share since 2000, despite a volley of new models and billions spent on cash discounts,
cut-rate leases and no-interest financing. They ended 2004 with just 58.6% of the U.S.
market, the latest low in a sinking trend. Executives at Detroit's Big Three have
welcomed the dollar's recent fall against the euro and the yen. A weaker dollar raises the
costs of imported vehicles and imported vehicle parts used in U.S.-made cars. But
executives of Asian and European auto makers gathered here for the big North American
International Auto Show say the ups and downs of the dollar won't force major changes
in their fundamental strategy, which is to claw away even more share in the world's
richest automotive market.
© Copyright 2005 Dow Jones & Company, Inc. All rights reserved.
WSJ Professor Guide: Page 2 of 12
5. A weaker dollar _______ the costs of imported vehicles and imported vehicle
parts used in U.S.-made cars
a. raises Correct
b. lowers
c. stabilizes
d. deflates
6. Japanese and European auto makers are gearing up to _______ their markets
share in the U.S.
a. increase Correct
b. decrease
c. minimize
d. give away
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Bush Will 'Lead' Drive For Changes to Social Security
JOHN D. MCKINNON and CHRISTOPHER COOPER
A1
January 11, 2005
http://online.wsj.com/article/0,,SB110540013749722107,00.html
President Bush promised to offer an ambitious plan for overhauling Social Security soon,
pledging to "provide the political cover" for nervous lawmakers and warning opponents
they are "taking a risk politically" by resisting change. "I have an obligation to lead on
this issue," Mr. Bush said in an interview with The Wall Street Journal. The president
deflected suggestions that he plans to leave it largely to Congress to draft a detailed plan,
saying, "I have the responsibility to lay out potential solutions." He declined to delve into
specifics, but said, "You'll find out soon."
The president's comments, in his first newspaper interview since winning re-election,
suggest that Mr. Bush and his advisers plan to turn up the political heat on members of
Congress, many of whom have expressed reluctance to address the issue. Broadly, the
administration aims to carve out private investment accounts for younger workers using
part of Social Security payroll taxes, while curbing guaranteed benefits that the federal
government has promised future retirees.
7. The Bush administration aims to carve out ____________for younger workers
using part of Social Security payroll taxes.
a. vacation accounts
b. public investment accounts
c. private investment accounts Correct
d. child care credits
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WSJ Professor Guide: Page 3 of 12
8. Social Security benefits for future retirees are going to be __________.
a. expanded
b. curbed Correct
c. removed
d. reviewed
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A Doctor's Version Of Obesity Surgery Raises Some Bile
DAVID ARMSTRONG
A1
January 14, 2005
http://online.wsj.com/article/0,,SB110565253112325628,00.html
In a nation of epidemic obesity, weight-loss surgery is booming. The number of such
procedures, almost all of them stomach reductions, rose 36% last year to 141,000, five
times the 1999 level, according to the American Society for Bariatric Surgery. One of the
field's busiest practitioners is Robert Rutledge. Garnering patients via his Web site and
local seminars, the 53-year-old surgeon charges $17,000 for his version of the surgery,
undercutting the $25,000 to $30,000 typically charged for the standard procedure, known
as a "gastric bypass."
9. The weight-loss surgery industry is ______________.
a. subject to too much regulation
b. slowly expanding
c. stagnant
d. booming Correct
10. A traditional gastric bypass typically costs _______ dollars.
a. over 20,000 Correct
b. under 20,000
c. over 100,000
d. over 200,000
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With NHL on Ice, Hockey Player Finds Cold Comfort Abroad
STEFAN FATSIS
A1
January 14, 2005
http://online.wsj.com/article/0,,SB110565436846425695,00.html
ROCKVILLE, Md. -- One morning in late December, Jeff Halpern of the Washington
Capitals laced up his Bauer 8000 skates for practice at a suburban rink. But his National
Hockey League teammates weren't on the ice with him. Mr. Halpern played instead with
a lineup consisting of a 29-year-old paralegal, a 30-year-old antiques dealer, a 45-yearold restaurant owner and a 29-year-old business-school student. That's not a normal
winter workout for a five-year NHL veteran. But with the league idled by a labor dispute,
Mr. Halpern, who is 28, was reduced to directing his friends in an hour of skating,
passing and shooting drills. Citing more than $500 million in losses the past two seasons,
© Copyright 2005 Dow Jones & Company, Inc. All rights reserved.
WSJ Professor Guide: Page 4 of 12
the NHL in September locked out its 700 players. Representatives of the league's 30
teams and its players' union have made no apparent progress toward a settlement, and the
2004-05 season could soon be formally canceled. If that happens, the NHL would be the
first major U.S. sports league to lose an entire season to labor strife.
11. The reason why NHL players are not playing is called a _______________.
a. ice flu
b. strike
c. lockin
d. lockout Correct
12. Over the past two seasons the NHL claims to have lost over_______ million
dollars.
a. 1
b. 2
c. 10
d. 500 Correct
Questions 13 – 17 from Marketplace, Section B
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Travel Expenses Prompt Yale To Force Out Institute Chief
JOANN S. LUBLIN
B1
January 10, 2005
http://online.wsj.com/article/0,,SB110532423531621358,00.html
In the latest setback for the corporate-governance movement, Yale University's School of
Management is quietly forcing out the prize-winning head of its International Institute for
Corporate Governance over alleged expense-account abuse. Florencio López-de-Silanes,
38 years old, allegedly double-billed Yale for about $150,000 in business-travel expenses
since mid-2001, according to people familiar with the situation. The tenured finance and
economics professor has made full restitution, they say. Under an agreement with Yale,
he will remain on unpaid leave until his departure from the university in June. The
embarrassing flap has sparked probes by both his employer and the World Bank, where
he has been a governance consultant and helped train foreign corporate directors.
13. The head of Yale University's International Institute for Corporate
Governance is being forced out due to ____________________
a. plagiarism
b. expense-account abuse Correct
c. lying
d. retirement
© Copyright 2005 Dow Jones & Company, Inc. All rights reserved.
WSJ Professor Guide: Page 5 of 12
Title:
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Real Estate Near Ground Zero Is On the Upswing
RYAN CHITTUM
B1
January 12, 2005
http://online.wsj.com/article/0,,SB110548301862023260,00.html
While wrecking crews cart away the last bits of the World Trade Center complex, the
real-estate market along the site's edges in lower Manhattan is coming back. What's
causing all this activity? Cheap rent is the main attraction. After the Sept. 11 terrorist
attacks some companies fled downtown and others that remained moved some of their
operations elsewhere to make sure any future attack couldn't shut them down. A nascent
movement to turn the district into a residential area sputtered. Combined with the slump
on Wall Street, downtown Manhattan's fortunes seemed bleak.
14. A key motivation for companies moving into office space near ground zero in
New York is _____________.
a. free office space
b. easy access to ports
c. low rent Correct
d. easy acces to train station
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GM's 'Car Guy' Faces Test With New Pontiac, Buick Sedans
LEE HAWKINS JR.
B1
January 11, 2005
http://online.wsj.com/article/0,,SB110540898776022448,00.html
Mr. Lutz, a former Chrysler Corp. vice chairman, came out of retirement in 2001 to help
GM reinvigorate its sleepy model lineup. His colorful personality and his track record for
championing bold styling won over GM dealers and employees dispirited by two decades
of cars that failed to stop the company's slide in U.S. market share. But now, with the first
vehicles launched under his tutelage sitting in showrooms, comes the real test. And so far
the Pontiac G6 hasn't fared well in a midsize sedan segment dominated by Japanese
powerhouses Toyota Motor Corp., Nissan Motor Corp. and Honda Motor Co. And
perhaps most galling, Mr. Lutz's old employer, DaimlerChrysler AG, scored a home run
with its Chrysler 300 C, among the most successful sedans from Detroit in decades.
15. Then new GM lineup of models is selling ______________ than other main
competitor brands.
a. better
b. the same as
c. worse Correct
d. much better
© Copyright 2005 Dow Jones & Company, Inc. All rights reserved.
WSJ Professor Guide: Page 6 of 12
Title:
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Directors Are Getting the Jitters
JOANN S. LUBLIN, THEO FRANCIS and JONATHAN WEIL
B1
January 13, 2005
http://online.wsj.com/article/0,,SB110557570822924751,00.html
Times are getting tenser in some corporate boardrooms. Tentative court settlements
unveiled last week disclosed that 10 former directors of WorldCom Inc. (now called MCI
Inc.) and another 10 from Enron Corp. agreed to fork over a total of $31 million from
their own wallets to settle lawsuits. As a result, outside directors may now "think very
hard about what they're doing," says Giles Stockton, a directors-and-officers insurance
underwriter for Brit Insurance Holdings PLC, a United Kingdom insurer. "To be
extinguished from litigation, they may have to pay out of their own pocket."
16. For individuals serving on corporate boards the risk of personal liability has
________.
a. increased Correct
b. deceased
c. stayed the same
d. become a non-issue
Title: Merry -- but Not for All - With 2004 Holiday Sales
The Strongest Since 1999, Why Are Big Retailers Sad?
By:
KEMBA J. DUNHAM, AMY MERRICK and ANN ZIMMERMAN
Page: B1
Date: January 14, 2005
Link http://online.wsj.com/article/0,,SB110566258633625944,00.html
Ho, ho, ho. U.S. retailers had a merry Christmas after all. Yesterday, the Commerce
Department reported December retail sales rose a hefty 8.7% over the same month a year
ago, marking a strong growth rate and one of the strongest holiday sales gains since 1999.
But traditional mid-priced department stores missed out on the merriment: Department
stores eked out a tiny 1.3% gain in sales, the smallest of any retail category. Their weak
showing was the most visible fallout yet from a profound shift in consumers' giftshopping habits. Overall, though, holiday sales were stronger than almost anyone
predicted as recently as three weeks ago. Even pessimistic retailers had to concede
victory over their own expectations that 2004 holiday sales would come up short.
Yesterday, the National Retail Federation announced a 5.7% rise in holiday sales in 2004,
beating both its own forecast of 4.5% growth and the 5.1% rise in 2003. The upbeat tally
capped a roller-coaster ride of a Christmas season. Rarely has consumer spending been
both so closely examined and so difficult to gauge. "There was a lot of conflicting data
out there, more so than I've seen in the last five years," says Ken Perkins, head of
RetailMetrics LLC, a Cambridge, Mass, research firm.
© Copyright 2005 Dow Jones & Company, Inc. All rights reserved.
WSJ Professor Guide: Page 7 of 12
17. Overall retail sales ________ during the month of December when compared
to the year before.
a. decreased as expected
b. rose a hefty amount Correct
c. stayed the same
d. decreased a lot
Questions 18 – 22 from Money & Investing, Section C
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Playing for Keeps: French Game Giant Vs. Electronic Arts
CASSELL BRYAN-LOW
C1
January 13, 2005
http://online.wsj.com/article/0,,SB110555930725124334,00.html
In France's famous "Asterix" comic books, a small village in Gaul heroically beats back
the entire Roman army. Today, French videogame maker Ubisoft Entertainment SA is in
a similar predicament, scrambling to keep from being overrun by potential acquirer and
U.S. gaming giant Electronic Arts Inc. But Ubisoft hasn't yet found the magic potion that
gives Asterix and his fellow villagers the strength to resist the invaders. Last month, EA
acquired a 20% stake in Ubisoft on the sly in a move that Ubisoft's five founding
brothers, the Guillemots, promptly denounced as "hostile." Since then, Europe's secondlargest videogame maker has been weighing various defenses, including rallying major
shareholders around its founders and knocking on the door of other videogame
companies.
18. The Electronic Arts corporation acquired a 20% stake in the Ubisoft company.
The move was considered __________ by Ubisoft.
a. hostile Correct
b. friendly
c. a welcomed relief
d. positive
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Supreme Court to Hear Andersen's Appeal of Conviction
KARA SCANNELL and JONATHAN WEIL
C1
January 10, 2005
http://online.wsj.com/article/0,,SB110532370372021349,00.html
The final chapter in the saga of Arthur Andersen LLP has yet to be written. The Supreme
Court on Friday agreed to hear an appeal of the accounting firm's June 2002 criminal
conviction for obstructing justice stemming from its massive shredding of documents in
connection with the Enron Corp. scandal. Andersen is appealing that conviction as well
as an appeals-court finding that the trial judge properly interpreted the federal witnesstampering statute, which Andersen was found guilty of violating. The Supreme Court will
hear the case in April.
© Copyright 2005 Dow Jones & Company, Inc. All rights reserved.
WSJ Professor Guide: Page 8 of 12
19. Arthur Andersen LLP was convicted for_____________.
a. over charging the government
b. fraud
c. obstructing justice Correct
d. Stealing client assets
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General Motors Faces a Bumpy Road, And Reverberations Could Be Wide
JESSE EISINGER
C1
January 12, 2005
http://online.wsj.com/article/0,,SB110547129704023014,00.html
What's bad for General Motors could turn out to be bad for the country. These should be
salad days for General Motors Corp. Interest rates are abnormally low, so buying cars on
credit is cheap. The American savings rate has plunged, suggesting that consumers are
hardly averse to spending. And the dollar has tumbled, making American-made vehicles
much more competitive with foreign makes. Yet GM last year warned of disappointing
profits, lost market share and cut production. If it couldn't make big bucks last year, when
will it? Apparently not any time soon. Its chief executive officer, Rick Wagoner, began
this week's Detroit auto show on a pessimistic note, telling reporters that "it's not going to
be an easy year."
20. The CEO of General Motors expects it to be __________ to make profits in
2005.
a. easy
b. difficult Correct
c. very easy
d. impossible
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'Auction' IPOs: First Google, Now Morningstar
IAN MCDONALD and AARON LUCCHETTI
C1
January 11, 2005
http://online.wsj.com/article/0,,SB110539442748621974,00.html
Morningstar Inc.'s embrace of the populist "auction" system for launching a stock
offering of its shares gives the method a boost, but a slew of imitators isn't expected to
follow. Morningstar, a Chicago investment researcher that made its name rating mutual
funds, hopes to raise at least $100 million in its initial public offering, which would make
it the second-largest IPO auction offering on record in the U.S., according to Thomson
Financial. The largest involved Google Inc., which last summer raised nearly $2 billion.
But others have faltered amid doubts that the fledgling offering technique would attract
enough investors. "This is a big boost" for the auction movement, says Tom Taulli, head
of IPO research firm CurrentOfferings.com. "So far, all of them have been small
companies except for Google, which you could argue was a freak event."
© Copyright 2005 Dow Jones & Company, Inc. All rights reserved.
WSJ Professor Guide: Page 9 of 12
21. Morningstar Inc. is going to launch a stock offering of its shares using _____.
a. a bank
b. a public meeting
c. a stock broker in China
d. an auction Correct
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In WorldCom Case, the Prosecutors Won't Bore Jurors With Accounting
ALMAR LATOUR and SUSAN PULLIAM
C1
January 14, 2005
http://online.wsj.com/article/0,,SB110565308727325653,00.html
If it's up to the prosecution, the trial revolving around the largest accounting fraud in U.S.
history may end up having relatively little to do with accounting. Assistant U.S. Attorney
David Anders soon will begin the government's case against Bernard Ebbers, the former
chief executive officer of WorldCom Inc. The main charge against Mr. Ebbers doesn't
have to do with the accounting fraud, according to the indictment. It is a conspiracy
charge that he deceived investors about the telecom titan's worsening condition -- which
company officials allegedly tried to cover up with an about $11 billion fraud. Part of the
reason for the prosecution's likely trial strategy: Past trials of corporate scandals show
that most jurors are unlikely to be interested in lengthy and technical explanations of
shady accounting maneuvers.
22. The main charge against the former CEO of WorldCom is _________.
a. Accounting fraud
b. Piracy
c. Conspiracy to deceived investors Correct
d. Theft of company assets
Questions 23 – 25 from Personal Journal, Section D
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Airlines Cut Prices On Overseas Fares
AVERY JOHNSON
D1
January 11, 2005
http://online.wsj.com/article/0,,SB110540747152022403,00.html
With the domestic market in turmoil, airlines are increasingly looking to international
flights for profits. Even before Delta's dramatic fare restructuring last week, many
airlines were quietly making major changes to international ticket prices. The big U.S.
carriers are also adding capacity on international routes, where there is less competition
from discount carriers. In one of the most significant moves, airlines are offering deep
discounts in business class for travelers who can book weeks or months in advance. The
goal: Get more high-end leisure travelers to buy seats at the front of the plane, while still
charging top-dollar prices to business travelers who book at the last minute.
© Copyright 2005 Dow Jones & Company, Inc. All rights reserved.
WSJ Professor Guide: Page 10 of 12
23. Airlines investments in international flights are________________.
a. decreasing
b. increasing Correct
c. becoming harder to make
d. staying the same
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Effort to Speed Airport Security Is Going Private
AMY SCHATZ
D1
January 12, 2005
http://online.wsj.com/article/0,,SB110549106703823542,00.html
The Homeland Security Department, under pressure to jump-start a program allowing
select pre-registered travelers to speed through airport security, is turning to the private
sector for help. The Registered Traveler program gives frequent air passengers access to
special security lines, provided they first voluntarily undergo criminal and terrorist
background checks. In exchange, they get a biometric identification card -- containing a
fingerprint and other personal data -- and access to the shorter lines. The program has
generally received favorable reviews from volunteers and the three-month trial has been
extended indefinitely. There is just one problem: The pilot program, currently
administered by the department's Transportation Security Administration, is offered at
only five airports for just 10,000 volunteers. This means that Registered Travelers can
use their cards only at their home airports and nowhere else. TSA's pace at expanding the
test into a national program has, so far, been the biggest complaint.
24. The Homeland Security Department’s pilot test to assist frequent travelers in
getting through airport screening has been ____________.
a. a failure
b. favorably reviewed from volunteers Correct
c. ignored by frequent travelers
d. difficult to keep people interested in
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Making Washer-Dryers A Fashion Statement
CHERYL LU-LIEN TAN
D1
January 13, 2005
http://online.wsj.com/article/0,,SB110558181391124985,00.html
A new home-furnishing frontier finally has opened: It is now possible to get a washer and
dryer in burnt orange. In an effort to breathe some life into their business, manufacturers
of large appliances are experimenting with parts of the color palette rarely seen in
kitchens and laundry rooms. Several years ago, Viking Range Corp. and a few other
appliance makers began dabbling in colors other than black, white and graphite. But
despite limited success in their efforts to push the color boundaries -- Viking says color
appliances account for only 1% to 2% of its overall sales -- other companies now are
jumping in.
© Copyright 2005 Dow Jones & Company, Inc. All rights reserved.
WSJ Professor Guide: Page 11 of 12
25. Manufacturers of large appliances are experimenting with ________ rarely
seen in kitchens and laundry rooms today.
a. large bakery and drying ovens
b. parts of the color palette Correct
c. direct current machines
d. oversized machines
© Copyright 2005 Dow Jones & Company, Inc. All rights reserved.
WSJ Professor Guide: Page 12 of 12