BUL Final Ch. Quizzes

Which of the following is an office, created by the Dodd-Frank Wall Street Reform and Consumer Protection Act, which is charged with creating a better system for analyzing the financial industry? a. The Office of Financial Research b. The Public Accounting Oversight Board c. The Consumer Financial Protection Bureau d. The Financial Stability Oversight Council e. The Office of Whistle-Blower Protection

a. The Office of Financial Research

Which of the following is NOT a factor in the ethical decision-making model? a. employee benefits packages b. individual factors c. ethical issue intensity d. organizational factors e. opportunity

a. employee benefits packages

A payment made to obtain or retain business and is not considered a bribe within the United States is defined as _____. a. facilitation b. illegal under the Dodd-Frank Act c. active bribery d. passive bribery e. illegal under the Foreign Corrupt Practices Act

a. facilitation

All of the following generate discussion about the ethical nature of a decision EXCEPT _____. a. government agency b. special interest groups c. individuals in the business d. the mass media e. blogs and podcasts

a. government agency

The Consumer Financial Protection Bureau (CFPB) _____. a. has supervisory power over credit markets as well as the authority to monitor lenders b. has no supervisory power over credit markets c. has no authority to monitor lenders d. has no responsibility to curtail unfair lending and credit card practices e. has no responsibility to check the safety of financial products before their launch into the market

a. has supervisory power over credit markets as well as the authority to monitor lenders

Individual differences in relation to a generalized belief about how one is affected by internal versus external events or reinforcements is known as ______. a. locus of control b. internal control c. external control d. morality beliefs e. moral intensity

a. locus of control

Some examples of what concept can include human rights, freedom of speech, and the fundamentals of justice? a. principles b. business ethics c. philosophy d. values e. morals

a. principles

_____ is exaggerated advertising, blustering, and boasting upon which no reasonable buyer would rely. a. Puffery b. Dishonesty c. Lying d. Implied Falsity e. Fraud

a. puffery

Groups that influence and/or are affected by a company and that neither engage in economic exchanges with the firm nor are fundamental to its daily survival are collectively called _____. a. secondary stakeholders b. market constituents c. primary stakeholders d. significant others e. community organizations

a. secondary stakeholders

Which of the following is NOT a primary stakeholder group? a. the Media b. employees c. shareholders d. customers e. investors

a. the media

In the stakeholder interaction model, _____. a. there are reciprocal relationships between the firm and its stakeholders b. it recognizes other stakeholders and does not explicitly acknowledge that dialogue must exist between the firm's internal and external environments c. there are no reciprocal relationships between the firm and its stakeholders d. it recognizes other stakeholders and but does not explicitly acknowledge that dialogue must exist between the firm's internal and external environments e. it recognizes other stakeholders, does not explicitly acknowledge that dialogue must exist, but can exist between the firm's employees and customers

a. there are reciprocal relationships between the firm and its stakeholders

_____ impose(s) fines or imprisonment as punishment for breaking the law. a. The honor system b. Criminal law c. Civil law d. Voluntary compliance e. International guidelines

b. Criminal law

Which of the following is true of the Sherman Antitrust Act? a. It prohibits the use of price maintenance agreements among manufacturers and in interstate commerce. b. It prohibits organizations from holding monopolies in their industries. c. It has refined copyright laws to protect digital versions of copy-righted materials, including music and movies. d. It inhibits fair competition. e. It prohibits unfair and deceptive acts and practices, regardless of whether competition is impaired.

b. It prohibits organizations from holding monopolies in their industries.

The concept of board members being linked to more than one company is known as _____. a. a board member compensation problem b. an interlocking directorate c. the shareholder concept d. the stakeholder model of corporate governance e. the stakeholder concept

b. an interlocking directorate

Directors share a ______, which means all their decisions should be in the best interests of the corporation and its stakeholders. a. duty of oversight b. duty of loyalty c. duty of conflict d. duty of control e. duty of accountability

b. duty of loyalty

Corporate governance is defined as _____. a. classic economic precepts, including the goal of maximizing wealth b. formal systems of accountability, oversight, and control c. the members of the Board of Directors d. the memos sent out by upper management on appropriate conduct e. the management style of the firm's CEO

b. formal systems of accountability, oversight, and control

The concept in the chapter that is defined as a situation where the person is faced with multiple choices, all of which are undesirable as defined by the person is called a _____. a. philosophical analysis b. moral dilemma c. value turpitude d. value crisis e. principle decision

b. moral dilemma

The concept that centers around enduring beliefs and ideals that are socially enforced, such as teamwork, trust, and integrity is called _____. a. philosophy b. values c. business ethics d. principles e. morals

b. values

Which dimension of social responsibility refers to business's contributions to society? a. legal b. voluntary responsibilities c. international d. ethical e. economic

b. voluntary responsibilities

______________ ties an organization's products directly to a social concern through a marketing program. a. Business ethics b. Strategic marketing c. Cause-related marketing d. Social marketing e. Strategic philanthropy

c. Cause-related marketing

Which of the following involve efforts to recruit, hire, train, and promote qualified individuals from groups that have been discriminated against into employment positions? a. dual relationships b. optimizations c. affirmative action programs d. employment quotas e. facilitation payments

c. affirmative action programs

Ethical ______ is the ability to perceive whether a situation or decision has an ethical dimension. a. personality b. education c. awareness d. intensity e. morality

c. awareness

The practice of offering something in order to gain an illicit advantage is _____. a. collusion b. intimidating behavior c. bribery d. a conflict of interest e. omission lying

c. bribery

The Sarbanes-Oxley Act was passed to provide oversight of _____. a. nonprofit organizations' governance practices b. corporate environmental practices c. corporate accounting practices d. price discrimination practices e. federal sentencing guidelines' compliance requirements

c. corporate accounting practices

Which of the following is NOT a secondary stakeholder group? a. television news reporters b. magazines c. employees d. special interest groups e. trade associations

c. employees

What does the Federal Sentencing Guidelines for Organizations (FSGO) focus on? a. improving the quality of life for employees and communities b. penalties for companies convicted of restraint of trade charges c. encouraging ethical and legal compliance by reducing penalties for firms with effective compliance programs d. schemes by top management to hide losses and other performance problems e. background checks on employees and other agents

c. encouraging ethical and legal compliance by reducing penalties for firms with effective compliance programs

The relevance or importance of an ethical issue in the eyes of the individual, work group, and/or organization is known as ______. a. locus of control b. obedience to authority c. ethical issue intensity d. opportunity e. moral intensity

c. ethical issue intensity

Accountants, lawyers, financial rating agencies, financial reporting services and risk assessors of financial products are all examples of _____, who must trust and be trusted by stakeholders to make business work. a. experts b. financial gurus c. gatekeepers d. lawmakers e. secondary stakeholders

c. gatekeepers

The shareholder model of corporate governance _____. a. adopts a broader view of the purpose of business than the stakeholder model b. is the same as the stakeholder model c. is founded on the goal of maximizing wealth for investors and owners d. is a less restrictive than the stakeholder orientation e. considers stakeholder welfare in tandem with corporate needs and interests

c. is founded on the goal of maximizing wealth for investors and owners

Before anything else, businesses must _____ to survive. a. compensate their employees well b. be popular c. make a profit d. have a great reputation e. sell internationally

c. make a profit

According to the text, business ethics comprises organizational principles, values, and __________ that may originate from individuals, organizational statements, or from the legal system. a. laws b. morals c. norms d. directions e. meanings

c. norms

Elena, an employee at ABC Marketing, has observed misconduct at work and wonders if she should report it. In the end, she decides not to do so because of the possible repercussions at work. Which of the following has determined the Elena's action? a. corporate culture b. opportunity c. organization factors d. control issues e. individual factors

c. organization factors

Creating a perception or belief by words that intentionally deceives someone is _____. a. related to what is defined as a "white" lie b. related to "noise" c. related to lying by commission d. related to lying by omission e. related to context and intent

c. related to lying by commission

Which of the following statements is correct? a. Primary stakeholders do not typically engage in transactions with a company. b. Social responsibility is associated with decreased profits. c. Ethical issues are usually easy to detect and simple to fix. d. Secondary stakeholders are essential for a company's survival. e. The degree to which a firm understands and addresses stakeholder demands can be referred to as a stakeholder orientation.

e. The degree to which a firm understands and addresses stakeholder demands can be referred to as a stakeholder orientation.

Which statement best describes ethical issue intensity? a. The perceived value of an ethical issue to the society. b. The perceived relevance or importance of an ethical issue to the local community. c. A set of values, beliefs, goals, norms, and ways to solve problems that members of an organization share. d. The perceived importance of an ethical issue to the government. e. The perceived relevance or importance of an ethical issue to the individual, work group, and/or organization

e. The perceived relevance or importance of an ethical issue to the individual, work group, and/or organization

A corporate culture can be defined as ______. a. a set of rules that some employees agree to obey b. the perceived importance of an ethical issue to the government c. the interpersonal relationships in the organization d. the working environment in the executive suite e. a set of values, beliefs, goals, norms, and ways to solve problems that employees of an organization share

e. a set of values, beliefs, goals, norms, and ways to solve problems that employees of an organization share

A(n) _____ exists when an individual must choose whether to advance his or her own interests, those of the organization, or those of some other group. a. ethical dilemma b. corporate intelligence c. facilitation payment d. discrimination situation e. conflict of interest

e. conflict of interest

The four levels of social responsibility are _____. a. ethical, philanthropic, social, and religious b. political, economic, legal, and ethical c. economic, legal, philanthropic, and social d. economic, legal, political, and social e. economic, legal, ethical, and philanthropic

e. economic, legal, ethical, and philanthropic

The three fundamental elements that motivate people to be fair are _____. a. equality, reciprocity, and harmony. b. honesty, integrity, and morality. c. charity, fidelity, and harmony. d. truthfulness, fidelity, and harmony. e. equality, reciprocity, and optimization

e. equality, reciprocity, and optimization

The ability to perceive whether a situation or decision has an ethical dimension is defined as ______. a. ethical issue intensity b. moral issue intensity c. business issue awareness d. moral awareness e. ethical awareness

e. ethical awareness

The Consumers' Bill of Rights decreed by President John F. Kennedy specified all of the following EXCEPT the right to _____. a. be heard b. safety c. be informed d. to choose e. freedom

e. freedom

The term ethical culture is associated with all of the following except _____. a. positively related to workplace confrontation over ethics issues, reports to management of observed misconduct, and the presence of ethics hotlines b. culture that creates shared values and support for ethical decisions and is driven by the ethical leadership of top management c. the component of corporate culture that captures the values and norms an organization defines and is compared to by its industry as appropriate conduct d. acceptable behavior as defined by the company and industry e. maximizing profits and placing shareholder's first

e. maximizing profits and placing shareholder's first

What concept refers to a person's personal philosophy about what is right or wrong? a. principles b. business ethics c. values d. philosophy e. morals

e. morals

Rawls used what he called the veil of ignorance which led him to develop ______. a. the difference principle which states that each person has basic rights that are compatible to the basic liberties of others b. the Constitution principle c. five main principles of justice d. the equality principle in that economic and social equalities (or inequalities) should be arranged to provide the most benefit to the least-advantaged members of society e. the difference principle in that economic and social equalities (or inequalities) should be arranged to provide the most benefit to the least-advantaged members of society

e. the difference principle in that economic and social equalities (or inequalities) should be arranged to provide the most benefit to the least-advantaged members of society

According to researchers, normative values largely originate from all of the following EXCEPT ______. a. government b. religion c. family d. friends e. the media

e. the media

Active bribery is an offense committed by the official who receives the bribe.

false

Applying a personal moral philosophy is the first step in the ethical decision-making process.

false

Fortunately, social responsibility and ethics are completely interchangeable terms.

false

The Sarbanes-Oxley Act made it illegal for U.S. businesses to issue bribes to foreign government officials.

false

The focus of core practices is on developing an individual's morals, rather than on structurally sound organizational practices and integrity for financial and nonfinancial performance measures.

false

Which of the following is derived from precedents established by judges? a. Common Law b. Administrative Law c. Constitutional Law d. Civil Law e. Statutory Law

a. Common Law

_____ is one of the most important and oft-cited elements of virtue, and refers to being whole, sound, and in an unimpaired condition. a. Integrity b. Fairness c. Values d. Honesty e. Reciprocity

a. Integrity

Those who have influence in a work group, including peers, managers, coworkers, and subordinates, are referred to as significant others. Which of the following is supported by research concerning significant others? a. Significant others within an organization may have more impact on a worker's decisions on a daily basis than any other factor. b. Significant others within an organization have little impact on a worker's decisions. c. Significant others within an organization may have less of an impact on a worker's decisions than gender. d. Significant others within an organization have more impact on a worker's decisions on a daily basis than any other factor. e. Significant others within an organization have no impact on a worker's decisions.

a. Significant others within an organization may have more impact on a worker's decisions on a daily basis than any other factor.

The Act/Agency that makes regular surprise inspections to ensure businesses maintain safe working environments is called the _____. a. The Occupational Safety and Health Administration b. Immigration Reform and Control Office c. ICE Agency d. Civil Rights for Employees Act e. Equal Safety Act

a. The Occupational Safety and Health Administration

The Dodd-Frank Wall Street Reform Act _____. a. contains five provisions that include increasing the accountability and transparency of financial institutions, creating a bureau to educate consumers in financial literacy and protect them from deceptive financial practices, implementing additional incentives for whistle-blowers, increasing oversight of the financial industry, and regulating the use of complex derivatives b. contains 10 provisions that include increasing the accountability and transparency of financial institutions, creating a bureau to educate consumers in financial literacy and protect them from deceptive financial practices, implementing additional incentives for whistle-blowers, increasing oversight of the financial industry, and regulating the use of complex derivatives c. seeks to improve financial regulation, increase oversight of the industry, and prevent the types of risk-taking, deceptive practices, and lack of oversight that led to the 2008-2009 financial crisis d. created only one financial agency (The Financial Stability Oversight Council). e. created only one financial agency (The Financial Consumer Protection Agency)

c. seeks to improve financial regulation, increase oversight of the industry, and prevent the types of risk-taking, deceptive practices, and lack of oversight that led to the 2008-2009 financial crisis

An organization's obligation to maximize its positive impact on stakeholders and to minimize its negative impact refers to its _____. a. regulation mandate b. consumerism c. social responsibility d. ethical dilemma e. moral justice

c. social responsibility

The two-way relationship between a firm and its stakeholders is conceptualized by the _____. a. stakeholder orientation model b. measures of corporate impacts table c. stakeholder interaction model d. corporate governance model e. stockholder-focus approach

c. stakeholder interaction model

Which of the following statements best describes an opportunity? a. organizational factors b. a reflection of whether the firm has an ethical conscience c. the conditions in an organization that limit or permit ethical or unethical behavior d. how easy it is to pilfer office supplies from one's workplace e. a corporate culture

c. the conditions in an organization that limit or permit ethical or unethical behavior

Which of the following is NOT one of the top types of observed misconduct? a. lying to employees b. Internet use abuse c. working more hours than reported d. abusive behavior e. putting one's own interests ahead of the organization's

c. working more hours than reported

The concept that refers to how closely workplace decisions align with a firm's stated strategic direction and its compliance with ethical and legal considerations is defined as _____. a. control b. oversight c. a duty of oversight d. accountability e. a duty of loyalty

d. accountability

Many studies have found a positive relationship between which of the following? a. high levels of government regulation and cultural values b. apathetic boards of directors and an ethical culture c. high cultural values and low industry competition d. an ethical culture and good business performance e. unmotivated employees and good business performance

d. an ethical culture and good business performance

The Sarbanes-Oxley Act (SOX) _____. a. did not modify the attorney-client relationship in that it does not require lawyers to report wrongdoing to top managers and/or the board of directors b. does not impose additional requirements on executives c. does not provide protection for "whistle-blowing" employees d. attempts to eliminate conflicts of interest by prohibiting accounting firms from providing both auditing and consulting services to the same client companies without special permission from the client firm's audit committee e. is the same as the Public Company Accounting Oversight Board

d. attempts to eliminate conflicts of interest by prohibiting accounting firms from providing both auditing and consulting services to the same client companies without special permission from the client firm's audit committee

The term that comprises organizational principles, values, and norms that may originate from individuals, organizational statements, or from the legal system that primarily guide individual and group behavior in business is defined as _____. a. values b. philosophy c. morals d. business ethics e. principles

d. business ethics

Abusive or intimidating behavior _____. a. does not need "intent" as a consideration b. does not relate to ignoring someone c. is a problem but is clearly defined by the legal system d. can differ from person to person e. relates only to profanity

d. can differ from person to person

An organization that has a strong ethical environment usually has a core value of placing _____ interests first. a. stockholders' b. management's c. government's d. customers' e. competitors'

d. customers'

A problem, situation, or opportunity requiring an individual, group, or organization to choose among several actions that must be evaluated as right or wrong is called a(n) _____. a. crisis b. conflict of interest c. indictment d. ethical issue e. fraud

d. ethical issue

The _____ is a set of 10 principles concerning human rights, labor, the environment, and anti-corruption. This document seeks to create openness and alignment among business, government, society, labor, and the United Nations. a. CERES Principals b. MERCOSUR c. NAFTA d. Global Compact e. The Sullivan Principals

d. global compact

_____ are groups or individuals who have a claim in some aspect of a company's products, operations, markets, industry, and outcomes. a. Employees b. Investors c. Customers d. Stakeholders e. Gatekeepers

d. stakeholders

Discrimination on the basis of all but which of the following is defined as harassment? a. marital status b. national origin c. age d. union affiliation e. gender

d. union affiliation

Which approach to stakeholder theory focuses on the actual behavior of the firm and usually addresses how decisions and strategies are made for stakeholder relationships. a. Control approach b. Instrumental approach c. Normative approach d. Strategic decision making approach e. Descriptive approach

e. Descriptive approach

___ involves the conditions for encouraging or limiting ethical behavior in an organization through rewards for ethical behavior or failing to prohibit unethical behavior. a. Punishment b. Regulation c. Locus of Control d. Governance e. Opportunity

e. Opportunity

Congress passed the FSGO in 1991 to create an incentive for organizations to develop and implement programs designed to foster ethical and legal compliance. These guidelines, developed by the U.S. Sentencing Commission, apply to all felonies and class A misdemeanors committed by employees in association with their work.

true

In a dilemma all of the alternatives have negative consequences, so the less harmful choice is made.

true

The ethical component of a corporate culture relates to the values, beliefs, and established and enforced patterns of conduct that employees use to identify and respond to ethical issues

true

The opportunities that employees have for unethical behavior in an organization can be nearly eliminated through formal codes, policies, and rules that are adequately enforced by management.

true