Exam 2

Which of the following is not true about justice reasoning: - The reasoner relies upon some accepted rule or standard - The reasoner considers who pays the costs and who receives the benefits - The reasoner seeks a fair distribution to all affected - The reasoner is interested in the net value of benefits

The reasoner is interested in the net value of benefits

Business managers should use all four methods of ethical reasoning - virtues, utility, rights, and justice - to better understand ethical issues at work

True

Managers, as major decision makers, are one of the keys to whether a company will act ethically or unethically

True

Marketing ethics include having concern for consumer health and safety issues

True

Sometimes national leaders resist the notion of international regulation, seeking to control matters of commerce themselves within their own countries

True

Under US law, lobbying activities must be disclosed publicly

True

The information strategy tool must used by business is: - Political contributions - Lobbying - Legal challenges - Direct communications

Lobbying

A Super PAC is a financial-incentive political strategy tool

True

A just or fair ethical decision occurs when: - Benefits and burdens are distributed in fair proportions - The rights of all affected are considered - Benefits exceed costs - The greatest good for those with power is achieved

Benefits and burdens are distributed in fair proportions

Businesses are expected to be ethical in their relationships with: - Customers - All of these answers are correct - Stockholders - Competitors

All of these answers are correct

When a business seeks to overturn a law after is has been passed or threaten to challenge the legal legitimacy of the new regulation in the courts, this is called: - Accumulating - Overturn lobbying - Legal challenges - Funneling

Legal challenges

Antitrust laws protect consumers from: - Anticompetitive practices by business - Selling products above cost to drive away rivals - Conspiring with business partners to increase competition - Firms using market dominance to expand commerce

Anticompetitive practices by business

The unspoken understanding among employees of what is and is not acceptable behavior is called: - Ethical climate - Ethical relativism - Rites and rituals - Corporate image

Ethical climate

In most companies, a moral atmosphere cannot be detected

False

Regulation cannot be applied to international business behavior

False

Public policy tools involve a combination of: - Incentives and political favors - Penalties and prison terms - Incentives and penalties - Political favors and prison terms

Incentives and penalties

At the core of rights reasoning is the belief that: - The right to join a union is no longer universally accepted - Economic and political powers determine who is right - Respecting others is the essence of human rights - The company's right to a profit must be protected

Respecting others is the essence of human rights

European Union regulators accused Uber of engaging in: - Price-fixing - False advertising - Unfair competition - Unhealthy working conditions

Unfair competition

A purchasing agent directing her company's orders to a firm from which she received a valuable gift, is an example of: - Egotism - Ethical relativism - Moral development - Conflict of interest

Conflict of interest

Business cannot expect to be profitable while adhering to ethical principles of conduct

False

Ethics are primarily based on religious beliefs

False

Government and business together establish the regulatory rules under which business operates in society

False

A national health care policy an example of an economic policy

False

Stakeholder groups typically use far different tactics than businesses to influence government officials, elections, and regulation

False

The American Institute of Certified Public Accountants Code directs accountants to steadfast in honorable behavior, but not to the point of personal sacrifice

False

If a manager approaches ethics with benevolence in mind, he or she would stress what? - Laws and professional codes - Economic efficiency - Friendly relations with an employee - Company rules and procedures

Friendly relations with an employee

A company that has ranked among the most ethical firms form 2007 to 2017, according to Forbes magazine is: - Walmart - Equifax - AFLAC - Amazon.com

AFLAC

Most ethics or compliance officers are entrusted to: - Audit the company's financial records - Reduce the risks to the company of employee misconduct - Arrange customer training courses at a nearby university - Act as a liaison between company and their temporary employees

Act as a liaison between the company and their temporary employees

The most effective ethics program utilize which of the following: - Quick reference guides - Posters - Written policy - All of these answers are correct

All of these answers are correct

The core components upon which a company's ethical performance depends include: - All of these answers are correct - The traditions, attitudes, and business practices built into a company's culture - The personal character of the managers and employees - The values and virtues of the managers

All of these are correct

A corporate political strategy does not: - Hinder a competitor's ability to compete economically - Seek to continue the firm's economic survival or growth - Determine the legal limits allowed for campaign financing - Exercise a firm's right to a voice in government affairs

Determine the legal limits allowed for campaign financing

Which of these statements accurately describe a Super PAC? - Allows limited contributions from unions - Allows limited contributions from individuals - Is also called the dependent expenditure-only committee - Does not allow direct contributions to candidates or political parties

Does not allow direct contributions to candidates or political parties

An example of global regulation that mitigates the impact of jet fuel on the environment is: - The Aviation Plan - The Clean Air Act - The Space Force Initiative - The International Space Station

The Aviation Plan

When the benefits of an action outweigh its costs, the action is considered ethically preferred according to: - Utilitarian reasoning - Plato and Aristotle - Virtue ethics - Theological reasoning

Utilitarian reasoning

Which statement characterizes the moral reasoning typically found in a child? - "Respect the rights of others" - "I'll let you play with my toy I play with yours" - "When in Rome, do as the Romans do" - "Seek the greatest good for the greatest number"

"I'll let you play with my toy if I can play with yours"

Proponents of business as a political participant argue: - A pluralistic system invites many participants - It is business's constitutional right to be involved - Business is vital stakeholder of government - Both of these answers are correct: A pluralistic system invites many participants; and business is vital stakeholder of government

Both of these answers are correct: A pluralistic system invites many participants; and business is vital stakeholder of government

Hiring former government officials for positions in the corporate world is: - Normally legal - Always unethical - Considered unethical by over 50% of Americans - Both of these answers are correct: Always unethical; and considered unethical by over 50% of Americans

Both of these answers are correct: Always unethical; and considered unethical by over 50% of Americans

Supporters of advocacy advertisements believe that they: - Identify a company as an interested and active stakeholder - Can help mold public opinion on a particular policy issue - Increase union activity and long-term expenses for an organization - Both of these answers are correct: Identify a company as an interested and active stakeholder; and can help mold public opinion on a particular policy issue

Both of these answers are correct: Identify a company as an interested and active stakeholder; and can help mold public opinion on a particular policy issue

Since 2008, the total amount spent on lobbing activity has: - Remained exactly the same - Doubled - Decreased slightly - Increased slightly

Decreased slightly

One of the oldest financial-incentive tools is: - Political action committee contributions - Political consulting aid - Advocacy advertising - Lobbying

Political action committee contributions

The critical component in installing an effective ethics program is: - To allow all employees the freedom to act as they wish - In hiring an expensive ethics consultant - Maintaining the position as the industry sales leader - The integration of various ethics safeguards into a comprehensive program

The integration of various ethics safeguards into a comprehensive program

Which of the following represents a structural remedy for an antitrust violation? - Paying a large fine - Breaking up a monopoly - Disclosure of company information to rivals - Agreeing to change a firm's conduct

Breaking up a monopoly

When a firm solicits its stockholders for political contributions for a particular candidate by letter and then sends those contributions to the candidate on behalf of its stockholders, it is called: - Lobbying - Bundling - Collating - Constituency building

Bundling

According to a 2017 survey, Americans hold a dim view of: - The Supreme Court - Nurses - Business executives - Churches

Business executives

To influence government policymakers' actions, an information strategy involves: - Business leaders speaking before government policymakers - Government policymakers hiring special interest groups for fact-finding projects - Businesses listening to government policymakers in order to develop a corporate strategy - Gaining support from other affected organizations

Business leaders speaking before government policymakers

In the case Equifax's Date Breach, which ethical climate dominated during the data breach? - Benevolence - Egoism - Team approach - Integrity

Egoism

Which ethical criterion is described by the idea that a company should strive for efficiency? - Egoism - Benevolence - Business-centered - Principle

Egoism

Which of the following are examples of natural monopolies? - Electric utilities and railroads - Cable television and the media - Internet services and trucking - None of these answers are correct

Electric utilities and railroads

Which of the following is not a constituency-building strategy tool? - Expert witness testimony - Advocacy advertising - Public relations - Legal challenges

Expert witness testimony

An ethical egoist acts for the benefit of others and sacrifices self-interest

False

In Europe, unions are prohibited by law to be on businesses' administrative boards

False

In the United States, most ethics policies are based primarily on the company's mission and vision

False

Moral intensity refers to the perception of how illegal an ethical issue is

False

The Sarbanes- Oxley Act requires that firms maintain financial practices, apart from high ethical standards, in how they conduct and monitor business operations

False

Today, more companies than ever are turning to formal ethics audits to measure the quality of their ethics programs

False

An example of a regulatory agency charged with enforcing social regulation is: - Federal Aviation Administration - Federal Trade Commission - Federal Communications Commission - Internal Revenue Service

Federal Trade Commission

In a survey of 105 companies in 2017, the most frequent public affairs tactic was related to: - Grassroots issues - Political action committees - Issues management - Federal government relations

Federal government relations

Patterns of government taxing and spending that are intended to stimulate or support the economy are: - International standards policies - Social assistance policies - Fiscal policies - Monetary policies

Fiscal policies

Under the Sarbanes- Oxley Act, corporations are required to: - Have executives vouch for the accuracy of a firm's financial reports - Have their audit committee comprised of only executives employed by the firm - All of these answers are correct - Collect reimbursements from the US government if financial restatements occur

Have executives vouch for the accuracy of a firm's financial reports

Expert witness testimony is often collected: - Through company newsletters - On the steps of the White House - In congressional hearings - From The Wall Street Journal

In congressional hearings

Governments being asked to regulate driving distractions are examples of public policy: - Input - Goal - Effect - Tool

Input

Building ethical safeguards into a company's everyday routines is called: - Justifying ethics - Ethical awareness - Institutionalizing ethics - Change management

Institutionalizing ethics

The main drawback to utilitarian reasoning is that: - Cost-benefit calculations can only be provided by accountants - The majority may override the rights of those in the minority - Managers using this reasoning process often fail to consider the means taken to reach the end - It is difficult to accurately measure both costs and benefits

It is difficult to measure both costs and benefits

An ethics issue based on cross-cultural contradictions is best illustrated by which example? - False and misleading advertising claims - Hiring child workers in violation of civil law - Legally marketing a pesticide abroad that has been banned in the US - Circumventing government regulations to ensure company profits

Legally marketing a pesticide aboard that is been banned in the US

Which country passed major anti-corruption reforms in 2016? - India - Russia - Mexico - Brazil

Mexico

Government regulations help balance negative externalities such as: - No smoking rules enforced to mitigate the effects of second-hand smoke - Gender controls over alcohol purchases and consumption - Drug testing at private businesses - Age restrictions for Social Security recipients

No smoking rules enforced to mitigate the effects of second-hand smoke

Economic regulations are illustrated by which action? - Allowing market forces to set prices - Preventing anticompetitive business practices - Providing protection of pension benefits - Ensuring safe working conditions

Preventing anticompetitive business practices

The Principles and Standards of Ethical Supply Chain Management Conduct include the principle: - Social competence - Promote competitive relationships with suppliers - Protect confidentiality - Be true to yourself

Protect confidentiality

People everywhere depend on ethical systems to tell them whether their actions are: - Logical and reasonable judgment - Legal or illegal - Right or wrong - Financially attainable or not

Right or wrong

Around the world, government: - Tends to cooperate with business - Tends to be in conflict with business - Sometimes cooperates and sometimes is in conflict with business - Tends to be controlled by business

Sometimes cooperates and sometimes is in conflict with business

in 2016, the Global Electoral Organization (GEO) discussed which critical election administration issues? - How to disengage electoral stakeholders - The use of technology to increase accountability - How to increase election disputes - How to hide dark money contributions

The use of technology to increase accountability

Cooperation between business and government often occurs when: - They encounter a common problem or enemy - Business can afford it - Business operates at arm's length from the government - Government has the support of the people

They encounter a common problem or enemy

According to a recent Transparency International survey, Denmark and New Zealand are two countries that are least likely to be subject to bribery

True

According to utilitarian reasoning, an action is ethically preferred when its benefits outweigh its costs

True

Bribery is found in nearly every sector of the global marketplace, but can be worse in some parts of the world

True

Cost-benefit analysis is often used to determine the costs of regulation

True

Economic regulations aim at modifying the normal operations of the free market and the forces of supply and demand

True

Expert witnesses provide testimony to legislators for business or business groups

True

For managers who reason at stages 2 and 3, their personal rewards, recognition from others, or compliance with the company's rules become their main ethical compass

True

Dark money refers to: - Anonymous contributions to for-profit organizations - Money collected illegally by PACs - Soft money - Undisclosed contributions to tax-exempt organizations

Undisclosed contributions to tax-exempt organizations