BA 325 Test 3

The board committee that administers and approves salaries and benefits of high-level managers in a company is called:

Compensation

In 2017, median compensation for directors at the largest U.S. corporations was around:

$300,000

An example of "insider trading" is:

A company executive passing nonpublic information about an upcoming acquisition to a friend, who traded for a profit.

Why does a diverse and inclusive workforce benefit a firm supporting a global market?

A variety of language skills serves the global customer base well.

One alternative to product liability lawsuits is called:

Alternative dispute resolution.

Which of these statements is (are) true regarding sexual harassment?

An imbalance of power.

Rules in the United States that prohibit competitors from secretly dividing up the market amongst themselves are called:

Antitrust laws.

The Securities and Exchange Commission outlaws:

Any manipulative or deceptive device used to trade stocks.

In 2015, more than 50 percent of minority-owned businesses were owned by:

Asian Americans.

Investors may receive an economic benefit from the ownership of stock by receiving:

Both dividends and capital gains.

The major federal consumer protection agencies are authorized by law to:

Both of these answers are correct: Intervene directly into the very center of free market activities, if that is considered necessary to protect consumers; and substitute government-mandated standards for decision making by private buyers and sellers.

Which of these statements is true regarding the Class Action Fairness Act of 2005?

Both of these answers are correct: Lawyers were restricted from shopping for friendly venues to try interstate cases; and excessive attorney compensation was limited.

Which part of the Department of Justice protects the public from being charged excess fees based on one's race?

Civil Rights Division

The EU's 2018 General Data Protection Regulation applies to:

Companies anywhere who provide services to European customers.

According to the new social contract:

Companies try to attract workers by giving them interesting and challenging work.

The right to free speech is protected in the United States by the:

Constitution

An identifying marker placed on a user's computer hard drive used to build profiles of their behavior over time is called a:

Cookie

Which of the following is true about corporate boards?

Corporate boards average between 9 and 11 members.

Businesses can take a number of measures to respond voluntarily to consumer demands. Which of the following is an example of such a measure?

Customer call centers.

Which of the following is an example of fulfilling social objectives through stock ownership?

Divesting from Chinese companies that made products using forced labor.

Sexual harassment applies to:

Either men or women who are being harassed.

Corporate governance involves the exercise of control over a company's:

Entire corporate direction.

The practice of adapting the job to the worker is called:

Ergonomics

The directors of a company are a central factor in corporate governance because they:

Exercise formal legal authority over company policy.

This U.S. agency enforces the laws prohibiting deceptive advertising:

Federal Trade Commission

The audit committee is required by U.S. law to be:

Financially literate

One important aspect of the new social contract regarding fixed pension benefits is:

Fixed pensions have been reduced in the U.S. by around 90 percent.

Trading stocks in advance of large institutional investment moves is called:

Front-running

When women and minorities are highly competent but are unable to attain executive positions, this is typically called:

Glass ceiling.

Government rules on equal treatment of employees include:

Government contractors must have written positive affirmative action plans to overcome the past and present effects of discrimination in their work force.

An argument that opposes the idea of high executive pay is:

High salaries divert resources that could be used to invest in the business.

Supporters of declassifying board elections argue that this approach:

Increases accountability and responsiveness to shareholders

In 2014, of the following nations, the fastest-growing stock market was in:

India

When businesses adopt voluntary policies for protecting the privacy of individuals' information disclosed during electronic transactions, this is an example of:

Industry self-regulation.

Which of these is not a current consumer law that protects individual privacy?

Internet "do not track" rules.

An argument against affirmative action is:

It is inconsistent with the principles of fairness and equality.

Random drug testing of employees is accurately described by which statement?

It screens randomly selected employees at various times through the year.

The "agency problem" arises when:

Managers act in their own interest, rather than in the interest of shareholders.

Many executives believe that a diverse workforce boosts innovation because:

Many unique perspectives contribute to a better solution.

The growing diversity in the U.S. workforce is due to:

Millennials entering the workforce. Immigration from other countries. Shifting patterns of work and retirement. All of these answers are correct.

According to the textbook, Asian American men now have higher median weekly earnings than white American men primarily because:

Most Asians had earned a bachelor's degree or higher.

Under U.S. laws, who has the right to hold an election to choose what union they want to represent them, if any:

Most private and public workers.

When a mother or father is granted time off when children are born or adopted and during the early months of a child's development, this is called:

Parental leave.

According to the U.S. Department of Labor, some of the most dangerous jobs include:

Police, fire fighters, prison guards.

States that have adopted right-to-work laws:

Prevent unions from requiring all workers they represent to pay fees or dues.

Age, ethnicity, gender, mental or physical abilities, race, and sexual orientation fall under which dimension of diversity?

Primary

The "right to be heard" promises that consumers' interests will:

Receive full and sympathetic consideration.

If someone is entitled to be treated in a certain way, this refers to a(n):

Right

Which major consumer right was violated according to the discussion case Volkswagen's "Clean Diesel" Campaign?

Right to Privacy

Bias within the hiring process refers to:

Selecting only candidates that match a preconceived ideal of the role.

How are directors (members of corporate boards) selected?

Shareholders elect the directors from a list of candidates.

Under what legal doctrine does a firm bear legal responsibility for injuries caused by something it made or sold, whether or not it was negligent or breached a warranty?

Strict liability

Consumer groups have generally opposed the idea of product liability reform using which argument?

Strict liability should be retained.

A living wage has been defined as a wage that:

Supports half the basic needs of an average-sized family, based on local prices.

The Occupational Safety and Health Act gives workers the right to a job:

That is free from recognized hazards that are likely to cause death or serious injury.

The act that requires lenders to inform borrowers of the annual rate of interest to be charged, plus related fees and services charges is called:

The Truth in Lending Act.

Consumers have become more dependent on businesses for product quality because:

The complexity of products makes choices complicated for consumers.

Which of the following is not a function of board committees?

The finance committee works closely with the human resources department to fund employee salaries.

What is one reason why woman and minorities fail to move into executive or board positions?

The old boys' network.

Which of the following is (are) core rights of consumers?

The right to safety.

Which of the following is not true about occupational segregation?

The technology sector is dominated by women.

Which of the following statements is not true about shareholders?

They own equal shares of company assets.

A reason for an increase in employee monitoring does not include:

To reduce the employer's health insurance premiums.

A legal right of shareholders is:

To vote on members for the board of directors.

Which law allows individuals who sue federal contractors for fraud to receive up to 30 percent of any amount recovered by the government?

U.S. False Claims Act (as amended in 1986).

The activism of institutional investors in other countries has been spearheaded by:

U.S.-based pension and mutual funds that in recent years acquired large stakes in foreign countries.

The leading cause of death on the job is due to:

Vehicle accidents.

In some cases, businesses have banded together to agree on how they will treat their customers. This is called:

Voluntary industry codes of conduct.

Institutional investors are sometimes referred to as:

Wall Street Investors

A prime social responsibility of business is to safeguard consumers:

While continuing to supply them with goods and services they want.

When an employee believes his or her employer has done something that is wrong or harmful to the public, and he or she reports alleged organizational misconduct to the media, government, or high-level company officials, what has occurred?

Whistle-blowing

Employee theft is correctly described by which statement?

It is a significant economic, social, and ethical problem in the workplace.

One of the main reasons that American executives are paid so much is:

Pay is set by the compensation committees of the board, largely comprised of other CEOs who have an interest in pushing compensation up.

The main responsibility of the National Highway Traffic Safety Administration is to:

Set motor vehicle safety standards.

In the case The Ugly Side of Beautiful Nails, the nail salon industry violated which of these worker rights?

To a safe and healthy workplace.

Institutional investors are best described by which statement?

Institutions invest their funds by purchasing shares of stock in corporations on behalf of their investors or members.

Benefits of managing diversity and inclusion effectively includes all except:

The federal government provides tax breaks.

Businesses can reduce income inequality by which action?

Commit to paying a living wage to all employees.

Variation in the important human characteristics that distinguish people from one another is called:

Diversity.

The right to a safe and healthy workplace is accurately described by which statement?

Extensive training and careful precautions are necessary to avoid accidents, injuries, and illness.

Which type of U.S. company is required to follow the Family and Medical Leave Act (FMLA), and offer up to 12 weeks of unpaid employee leave to address family needs?

Firms with at least 50 employees.

The company justified Wynn's high compensation package, in the discussion case Executive Misconduct at Wynn Resorts, by saying that:

He had led the company to total returns of 19 percent per year between 2002 and 2017.

An argument in support of high executive compensation is:

High salaries provide an incentive for innovation and risk-taking.

Child care assistance in the workplace is accurately described by:

It helps reduce employee absenteeism and tardiness. It aids in recruiting workers by making the company more attractive to parents. It helps retain talented employees. All of these answers are correct.

Which of the following statements is not true about the organization Consumer Reports?

It is supported by the federal government.

Which law eliminated certain time restrictions for filing pay discrimination lawsuits?

Lilly Ledbetter Fair Pay Act of 2009.

Sexual harassment is accurately described by which statement(s)?

Most sexual harassment incidents target women. Sexual harassment is illegal in the United States. The U.S. Equal Employment Opportunity Commission is empowered to sue on behalf of victims. All of these answers are correct.

Social investors seek to eliminate from their investment portfolios companies that:

Pollute the environment. Discriminate against employees. Make dangerous products like tobacco or weapons. All of these answers are correct.

One action a company can take to effectively manage diversity and inclusion is:

Set up a diversity council to monitor the company's goals.

What criteria must be met before a whistle-blower goes public?

There is enough potential harm to justify the possible costs of disclosure to the whistle-blower.

Many companies have argued that the evolution of strict liability has:

Unfairly burdened them with excess costs.

A strong employer-employee relationship is central to:

Both of these answers are correct: Achieving a corporation's economic goals; and satisfying the wishes of those who contribute their skills and talents to the company.

Women in the U.S. workforce are accurately characterized by which of these statements?

Both of these answers are correct: The participation rate has been between 46 and 47 percent since the late 2000s; and the participation rates of women and men in the workforce have diverged.

Groups that collect and combine data from various sources into individual profiles that are sold to retailers and advertisers are called:

Data aggregators.

Since the mid-1950s the proportion of American workers represented by unions has:

Decreased

Which of the following is a key feature of effective boards of directors?

Hold regular meetings without the CEO present.

As shown in Figure 2, in 2015 the countries with the highest and lowest percentages of unionized labor, respectively, were:

Iceland, Turkey.

Reports filed with the SEC provide information on a company's:

Sales and earnings. Depreciation by line of business. Details of foreign operations. All of the above.

The current trend in the United States of firms' eliminating domestic partner benefits is largely due to:

The legalization of same-sex marriage in 2015.

The risk online shoppers take when their web profile negatively impacts their credit is known as:

Weblining.

Companies can combat sexual and racial harassment—and protect themselves from expensive lawsuits—by:

Both of these answers are correct: Communicating a zero-tolerance policy on harassment to all employees; and establishing a complaint procedure and acting quickly to resolve any problems.

The "gig" (or sharing) economy is accurately described by which of these?

Both of these answers are correct: Many companies have become more cost-efficient; and the generally low wages have increased the welfare burden on the government.

Which of the following describe why the consumer movement exists?

Both of these answers are correct: Some product advertising claims have been inflated; and some businesses have violated the public's privacy.

In 2008 and early 2009, share values declined sharply as the global economy fell into a severe recession. This type of stock market is referred to as a:

Bear Market

The primary goal(s) of the Food and Drug Administration include:

Both of these answers are correct: Ensuring the safety and effectiveness of a wide range of consumer products; and reviewing and approving new products before they are released to consumers.

Employees in the United States have a legal right to:

Both of these answers are correct: Organize and bargain collectively; and a safe and healthy workplace.

The law requiring that toys and infant products be tested before sale is called the:

Consumer Product Safety Improvement Act.

A global organization headquartered in London that represents over 200 consumer groups in more than 100 nations is called:

Consumers International.

A reason for institutions becoming more assertive in promoting the interests of their member investors is:

Expressing dissatisfaction with management performance by selling a large block of stock would reduce the value of the institution's holdings.

Which of the following is not a goal of consumer protection laws?

Facilitate consumers' getting extended credit when making purchases.

Warning consumers about the possible side effects of pharmaceutical drugs is an example of consumer protection against:

Hazardous products.

One particularly negative aspect of behavioral advertising is:

Online users may be vulnerable to the spread of misinformation tailored to their beliefs.

The mission of the Securities and Exchange Commission (SEC) is to:

Protect shareholders' rights by making sure that stock markets are run fairly.