Business Ethics midterm part 2

____ are used to obtain or retain business and are not generally considered illegal in the U.S.

Facilitation payments

Examples of consumer fraud include shoplifting, collusion, guile, and duplicity​.

True

The first step toward understanding business ethics is to

develop ethical-issue awareness.

The primary objective of U.S. antitrust laws is to

distinguish competitive strategies that enhance consumer welfare from those that reduce it.

Mr. Smith told his client, Mr. Jabar, who was not an IT expert, that the new software systems were much better than his existing ones. To convince Mr. Jabar, Mr. Smith used a great deal of technical jargon that his client did not really understand. Mr. Smith did this intentionally to confuse Mr. Jabar. This is an example of

noise.

Which of the following has been identified by the Ethics Resource Center as being one of the leading forms of observed misconduct in organizations?

Abusive behavior

What is a primary reason why some small businesses resist the opening of large chain retailers like Walmart or Home Depot?

Because the large size creates economies of scale and they can charge lower prices

_____ is associated with a hostile workplace where someone considered a target is threatened, harassed, belittled, or verbally abused.

Bullying

What type of fraudulent activity involves an employee who assists a consumer in fraud?

Collusion

What type of fraud involves intentional deception on the part of an individual or group in order to derive an unfair economic advantage over an organization?

Consumer

The _____ was established after the latest financial crisis, in response to a situation that caused many consumers to lose their homes.

Consumer Financial Protection Bureau

Which of the following is not a side-effect of being the victim of workplace bullying?

Corporate intelligence

An employee can only ​successfully accuse a co-worker of sexual harassment if it seriously affected his or her psychological well-being or caused injury.

False

Cause-related marketing is the synergistic and mutually beneficial use of an organization's core competencies and resources to deal with key stakeholders so as to bring about organizational and societal benefits.

False

Sarbanes-Oxley is considered to be the most sweeping financial overhaul of the regulatory system since the Great Depression.

False

The primary method for resolving conflicts and serious business disputes is through the use of self-regulation.

False

The three fundamental elements that motivate people to be fair are honesty, integrity, and equality. ​

False

Which of the following is not an aspect of the institutionalization of social responsibility?

Familial responsibilities

Passed by Congress in 1991, the _____ created incentives for organizations to develop and implement ethical compliance programs.

Federal Sentencing Guidelines for Organizations

________ is associated with a person who is crafty or understands right/wrong behavior but uses tricks to obtain an unfair advantage.

Guile

Which of the following is not a reason why the institutionalization of business ethics has progressed in recent decades?

Institutionalization of ethics is now mandated for all organizations by governments around the world

Which is not one of the four sources of criminal and civil laws?

Judicial law

Which of the following is true regarding abusive and intimidating behavior?

Not everyone agrees on what constitutes abusive behavior.

Abusive or intimidating behavior is the most common ethical problem for employees. Which of the following is not related to this concept?

Performance probation

Which of the following is one of the seven steps that the U.S. Sentencing Commission requires for an effective compliance program?

Provide oversight by high-ranking personnel

Which of the following acts, passed in response to public outrage over conditions described in Upton Sinclair's The Jungle, was the first consumer protection legislation?

Pure Food and Drug Act of 1906

_____ is the synergistic and mutually beneficial use of an organization's core competencies and resources to deal with key stakeholders so as to bring about organizational and societal benefits.

Strategic philanthropy

Which of the following laws instituted a whistle-blower bounty program in which whistle-blowers are eligible to receive 10 to 30 percent of fines if their reports result in convictions of more than $1 million in penalties?

The Dodd-Frank Act.

Which of the following is one of the three criteria that must be met to constitute a hostile work environment?

The conduct was unwelcome.

Which of the following groups is not a group that receives special legal protections?

The highly educated

Omission lying is intentionally not informing others of any differences, problems, safety warnings, or negative issues relating to the product or company that significantly affect awareness, intention, or behavior.

True

One of the steps the U.S. Sentencing Commission delineated companies must implement to demonstrate due diligence is that a firm must develop and disseminate a code of conduct that communicates required standards and identifies key risk areas for the organization. ​

True

_____ responsibilities relate to a business's contributions to stakeholders.

Voluntary

By prohibiting accounting firms from providing both auditing and consulting services to the same corporate clients without permission, the Sarbanes-Oxley Act is attempting to eliminate

conflicts of interest.

An ethical organizational culture creates an environment in which to structure behavior that is then evaluated by stakeholders. The key elements of an organizational culture include all of the following except

employee compensation

A major purpose of the Federal Sentencing Guidelines for Organizations, the Sarbanes-Oxley Act, and the Dodd-Frank Act is to

encourage employees to report misconduct

Issues related to fairness and honesty may arise because business is sometimes regarded as a

game governed by its own rules rather than those of society.

An activity is probably ethical if it

is approved of by most individuals in the organization and is customary in the industry.

War metaphors are common in business. This kind of mindset can be dangerous for business leaders because

it may foster the idea that honesty is unnecessary in business.

Title VII of the Civil Rights Act of 1964

prohibits discrimination on the basis of race, color, sex, religion, or national origin.

When a restaurant claims that it sells the world's best cup of coffee, it could be accused of

puffery

The ________________ desires to find a solution to a social problem rather than to simply earn profits.

social entrepreneur

Ethical issues in business typically arise because of conflicts among individuals' morals and

the core values and culture of the organizations where they work.

Accountants must abide by a strict code of ethics that defines their responsibilities to

their clients and the public interest.

A company can be sued for discrimination if it

uses age as a hiring or firing criterion.

Donation of computer equipment to schools by Toshiba would be associated with _____ responsibilities.

voluntary

The ethical decision-making process begins

when stakeholders trigger ethical issue awareness and individuals openly discuss it with others.

The Age Discrimination in Employment Act specifically outlaws hiring practices that discriminate against people

who are 40 and over.

This is a leading self-regulatory body that provides directions for managing customer disputes and reviews advertising cases.​

​Better Business Bureau

Externally imposed boundaries of conduct, such as laws, rules, regulations, and other requirements are known as

​Mandated boundaries