Chapter 3 Quiz

A distributor is a person or an organization that helps another company sell its goods and services to customers. Distributors are considered external stakeholders. a. True b. False

a. True

Ethics are a. a type of norm b. rules that result in happier employees c. standards of right and wrong that influence behavior d. always synergy driven e. company policies that are prominently posted on office bulletin boards

c. standards of right and wrong that influence behavior

Organizations cannot easily control the macroenvironment, which includes sociocultural, demographic, political-legal and international forces. a. True b. False

a. True

The system of governing a company so that the interests of corporate owners and other stakeholders are protected is known as corporate governance. a. True b. False

a. True

To save money, Paul, the owner of a struggling business that supplies fresh produce to restaurants, has been considering reducing the amount of produce in some cases delivered to busy restaurants, knowing the customers will probably not notice the discrepancy. Paul's situation is an example of an ethical dilemma. a. True b. False

a. True

A social audit is a systematic assessment of employee happiness within a company. a. True b. False

b. False

Employees elect a company's board of directors. a. True b. False

b. False

Internal stakeholders include the owners, board of directors, customers, suppliers, distributors, and the community. a. True b. False

b. False

Tyrone, the CEO of a large landscaping company, has been studying an article in a business publication that instructs managers how to increase profits by boosting worker efficiency. Higher profits and greater efficiency are the chief aims of corporate social responsibility, which holds that it is the responsibility of corporations to be profitable even if the other goals in the community are not met. a. True b. False

b. False

When individuals or groups are in the process of purchasing a company, this action is known as being a stakeholder. a. True b. False

b. False

Having some clients who are less knowledgeable about investing and seem to be more trusting of their firm, the management of a financial advising organization has decided to use cash from newer investors to pay off older ones. The actions of management are an example of a. a code of conduct b. a Ponzi scheme c. a business plan d. insider trading e. a JIT system

b. a Ponzi scheme

The management of a financial advising organization has decided to use cash from newer investors to pay off earlier investors. This scam is an example of a. ethical conduct in the pursuit of profit b. a Ponzi scheme c. local economic conditions d. insider trading e. a JIT system

b. a Ponzi scheme

An organization's external stakeholders include a. employees, owners, and the board of directors b. customers, competitors, suppliers, distributors, strategic allies, employee associations, local communities, financial institutions, government regulators, special-interest groups, and the mass media c. management and non-management employees d. suppliers, distributors, employees, owners, and the board of directors e. customers and employees

b. customers, competitors, suppliers, distributors, strategic allies, employee associations, local communities, financial institutions, government regulators, special-interest groups, and the mass media

The triple bottom line represents ________, also known as the ________. a. financial forecasting; financial positive Fs b. synergy, diversity, and change; diversity scale c. people, planet, and profit; 3 Ps d. people, purpose, and profit; triple Ps e. energy, excitement, and excuse; and excuse success formula

c. people, planet, and profit; 3 Ps

While setting up their corporation, Ming and Jie implement a system of governing their organization so that the interests of corporate owners and other stakeholders are protected. Ming and Jie have set up a. a code of ethics b. a business plan c. a TQM system d. a system of corporate governance e. a JIT system

d. a system of corporate governance

________ is the notion that corporations are expected to go above and beyond following the law and making a profit to help society. a. Corporate morality b. Green business practice c. Societal responsibility d. Corporate sustainability e. Corporate social responsibility

e. Corporate social responsibility

Peter and Ana Teraglia are wealthy entrepreneurs who are very interested in helping children who have been abused. Their goal is to donate a percentage of their company profits to helping these children. The Teraglias' actions are an example of a. corporate governance b. corporate sustainability c. mentoring d. corporate ethics e. philanthropy

e. philanthropy

An ethical dilemma is a situation a. in which you need to decrease costs b. in which you must decide whether to pursue a course of action that may benefit you or your organization but is unethical or even illegal c. you must emphasize economic performance d. you must emphasize social performance e. you review standards of right and wrong that influence behavior

b. in which you must decide whether to pursue a course of action that may benefit you or your organization but is unethical or even illegal

Dawn, a young single mother, found a wallet with a large amount of money inside. She has found lost wallets in the past, too. Previously she has always tried to return the cash to the owner, knowing it is the right thing to do. However, money has been very tight lately, so this time she has decided to keep the cash. She told a friend, "I don't normally do this, but we really need the money. So I really have to do it this one time." The most likely explanation for Dawn's behavior is a. the need-to effect b. motivated blindness c. the holier-than-thou effect d. a depression disorder e. sociocultural forces

b. motivated blindness

The board of directors, employees, and owners are the organization's a. external stakeholders b. advisory group c. community stakeholders d. shareholders e. internal stakeholders

e. internal stakeholders