Business Ethics - Exam #2 Study Guide
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. indictment b. fraud c. personal crisis d. conflict of interest e. ethical issue
ethical issue
A payment made to obtain or retain business that is not considered a bribe within the United States is defined as _______. a. active bribery b. facilitation c. duplicity d. insider trading e. passive bribery
facilitation
Accountants, lawyers, financial rating agencies, financial reporting services, and risk assessors of financial products—who must trust and be trusted by stakeholders to make business work—are all examples of _______. a. secondary stakeholders b. core practices c. financial gurus d. lawmakers e. gatekeepers
gatekeepers
The Consumer Financial Protection Bureau (CFPB) _______. a. has supervisory power over credit markets as well as the authority to monitor lenders b. has no responsibility to curtail unfair lending and credit card practices c. has no authority to monitor lenders d. has no responsibility to check the safety of financial products before their launch into the market e. has no supervisory power over credit markets
has supervisory power over credit markets as well as the authority to monitor lenders
One of the most important and oft-cited elements of virtue, which refers to being whole, sound, and in an unimpaired condition, is known as _______. a. integrity b. fairness c. honesty d. reciprocity e. value
integrity
Individuals who believe they control the events in their lives by their own effort and skill,view themselves as masters of their destinies, and trust in their capacity to influence their environment have what is known as _______. a. a significant other b. corporate culture c. ethical issue intensity d. internal control e. external control
internal control
Individual differences in relation to a generalized belief about how one is affected by internal versus external events or reinforcements is defined as _______. a. ethical issue intensity b. internal control c. external control d. locus of control e. moral intensity
locus of control
Creating a perception or belief by words that intentionally deceive someone is defined as _______. a. lying by omission b. context and intent c. active bribery d. "white lies" e. lying by commission
lying by commission
Externally imposed levels of appropriate conduct, such as laws, rules, and regulations, are known as _______. a. voluntary boundaries b. individual boundaries c. mandated boundaries d. core practices e. philanthropy boundaries
mandated boundaries
The U.S. Sentencing Commission continued to emphasize that there should be standards and procedures in place to prevent and detect misconduct along with the importance of _______. a. organizational culture b. hiring an external CEO c. eliminating federal prosecutions of organizations d. the honor system e. the firm's board
organizational culture
Our organizational ethical decision-making framework demonstrates _______. a. that decisions cannot be judged as ethical or unethical b. the many factors that influence decisions as ethical or unethical c. that very few factors influence decisions d. that companies with a strong reputation for ethical conduct never fail to maintain an ethical culture e. that ethical failure is inevitable
the many factors that influence decisions as ethical or unethical
Which of the following can be broadly defined as a lack or absence of integrity, incomplete disclosure, and an unwillingness to tell the truth? a. Value b. Reciprocity c. Conflict of interest d. Lying e. Dishonesty
Dishonesty
What does the Federal Sentencing Guidelines for Organizations (FSGO) focus on? a. Schemes by top management to hide losses and other performance problems b. Encouraging ethical and legal compliance by reducing penalties for firms with effective compliance programs c. Penalties for companies convicted of restraint of trade charges d. Improving the quality of life for employees and communities e. Background checks on employees and other agents
Encouraging ethical and legal compliance by reducing penalties for firms with effective compliance programs
Which of the following statements describes the Sherman Antitrust Act? a. It prohibits unfair and deceptive acts and practices, regardless of whether competition is impaired. b. It prohibits organizations from holding monopolies in their industries. c. It bans price discrimination between retailers and wholesalers. d. It prohibits the use of price maintenance agreements among manufacturers and in interstate commerce. e. It refines copyright laws to protect digital versions of copyrighted materials, including music and movies.
It prohibits organizations from holding monopolies in their industries.
Ethical issue intensity is best defined by which of the following? a. The perceived relevance or importance of an ethical issue to the individual, work group, and/or organization b. The perceived importance of an ethical issue to the government c. The perceived value of an ethical issue to society d. A set of values, beliefs, goals, norms, and ways to solve problems that members of an organization share e. The perceived relevance or importance of an ethical issue to the local community
The perceived relevance or importance of an ethical issue to the individual, work group, and/or organization
Harassment is defined as discrimination on the basis of which of the following? a. Age b. Gender c. Union affiliation d. Marital status e. National origin
Union affiliation
The ability to perceive whether a situation or decision has an ethical dimension is defined as _______. a. moral issue intensity b. moral awareness c. ethical awareness d. business issue awareness e. ethical issue intensity
ethical awareness
Exaggerated advertising, blustering, and boasting upon which no reasonable buyer would rely is known as _______. a. dishonesty b. fraud c. implied falsity d. puffery e. lying
puffery
Those who have influence in a work group, including peers, managers, coworkers, and subordinates, are referred to as _______. a. significant others b. normative approaches c. immediate job context d. instrumental concerns e. opportunities
significant others
Most ethical issues concerning a business will become visible through _______. a. civil litigation b. stakeholder concerns c. stock market performance d. congressional legislation e. criminal prosecution
stakeholder concerns
Opportunity can best be described as _______. a. a reflection of whether the firm has an ethical conscience b. where individuals work, whom they work with, and the nature of the work c. the conditions in an organization that limit or permit ethical or unethical behavior d. a corporate culture e. organizational factors
the conditions in an organization that limit or permit ethical or unethical behavior
Institutional theory can be defined as _______. a. the relevance or importance of an event or decision in the eyes of the individual, work group, and/or organization b. the ability to perceive whether a situation or decision has an ethical dimension c. the theory that organizations operate according to taken-for-granted institutional norms and rules d. a thought experiment that examined how individuals would formulate principles if they did not know what their future position in society would be e. the principle that states that each person has basic rights that are compatible to the basic liberties of others
the theory that organizations operate according to taken-for-granted institutional norms and rules
Which of the following are among the top types of observed misconduct? (Select three) a. Abusive behavior b. Working more hours than reported c. Internet abuse d. Puffery e. Conflicts of interest
Abusive behavior, Internet Abuse, Conflict of Interest
Efforts to recruit, hire, train, and promote qualified individuals from groups that have traditionally been discriminated against are involved in which of the following? a. Dual relationships b. Employment quotas c. Optimizations d. Facilitation payments e. Affirmative action programs
Affirmative action programs
What ties an organization's products directly to a social concern through a marketing program? a. Cause-related marketing b. Strategic philanthropy c. Social entrepreneurship d. Strategic marketing e. Gatekeepers
Cause-related marketing
Which of the following refers to precedents established by judges? a. Common Law b. Statutory Law c. Administrative Law d. Constitutional Law e. Civil Law
Common Law
When an individual must choose whether to advance his or her own interests, those of the organization, or those of some other group, which of the following exists? a. Ethical dilemma b. Corporate intelligence c. Discrimination situation d. Conflict of interest e. Facilitation payment
Conflict of interest
A set of values, norms, and artifacts—including ways of solving problems that members (employees) of an organization share—describes which of the following? a. Individual factors b. Conflicts of interest c. Immediate job context d. Corporate culture e. Opportunity
Corporate culture
Which of the following are the three fundamental elements that motivate people to be fair? a. Equality, reciprocity, and harmony b. Equality, reciprocity, and optimization c. Honesty, integrity, and morality d. Charity, fidelity, and harmony e. Truthfulness, fidelity, and harmony
Equality, reciprocity, and optimization
According to researchers, normative values largely originate from which of the following? (Select three) a. government b. the media c. family d. religion e. entertainment
Government, Family, Religion
Which of the following are factors in the ethical decision-making model? (Select three) a. Individual factors b. Employee benefits packages c. Ethical issue intensity d. Organizational factors e. Internal control
Individual Factors, Ethical Issue Intensity, Organizational Factors
Which of the following statements is true of the Dodd-Frank Wall Street Reform Act? a. It 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. b. It 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. c. It 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. d. It created only one financial agency (The Financial Stability Oversight Council). e. It created only one financial agency (The Financial Consumer Protection Agency).
It 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.
The act/agency that enforces regular surprise inspections to ensure businesses maintain safe working environments is called the _______. a. Title VII of the Civil Rights Act b. Equal Safety Act c. Immigration Reform and Control Office d. Occupational Safety and Health Administration e. ICE Agency
Occupational Safety and Health Administration (OSHA)
Which of the following is the result of conditions that either provide rewards, whether internal or external, or fail to erect barriers against unethical behavior? a. Opportunity b. Punishment c. Regulation d. Locus of Control e. Governance
Opportunity
Which of the following statements is true? a. Some ethical issues are difficult to recognize because they are gray areas that are hard to navigate. b. Employees will never engage in questionable behaviors because they are trying to achieve firm objectives related to sales or earnings. c. In a dilemma, none of the alternatives have negative consequences. d. The work environment makes it easy to define and reduce ethical issues. e. Failure to acknowledge or be aware of ethical issues is the best thing for an organization.
Some ethical issues are difficult to recognize because they are gray areas that are hard to navigate.
John Rawls used what he called the veil of ignorance, which led him to develop which of the following? (Select two) a. The difference principle b. The precautionary principle c. The equality principle d. The first principle e. The Peter principle
The Difference Principle and The Equality Principle
Which of the following is an office created by the Dodd-Frank Wall Street Reform and Consumer Protection Act, and is charged with creating a better system for analyzing the financial industry? a. The Financial Stability Oversight Council b. The Public Company Accounting Oversight Board c. The Consumer Financial Protection Bureau d. The Office of Financial Research e. The Office of Whistle-Blower Protection
The Office of Financial Research
Businesses may improve their communities, reduce government involvement by providing assistance to stakeholders, develop employee leadership skills, and foster an ethical culture and values that deter organizational misconduct by addressing which one of the following? a. Cause-related marketing b. Voluntary responsibilities c. International responsibilities d. Economic responsibilities e. Goodwill responsibilities
Voluntary responsibilities
The Sarbanes-Oxley (SOX) Act _______. 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 provide protection for "whistle-blowing" employees c. 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 d. is the same as the Public Company Accounting Oversight Board (PCAOB) e. does not impose additional requirements on executives
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 ability to perceive whether a situation or decision has an ethical dimension is known as ethical _______. a. personality b. intensity c. morality d. awareness e. education
awareness
The practice of offering something in order to gain an illicit advantage is known as _______. a. bribery b. commission lying c. collusion d. a conflict of interest e. intimidating behavior
bribery
The Sarbanes-Oxley (SOX) Act was passed to provide federal oversight of _______. a. corporate environmental practices b. corporate accounting practices c. nonprofit organizations' governance practices d. federal sentencing guidelines' compliance requirements e. price discrimination practices
corporate accounting practices
Fines or imprisonment may be imposed as punishment for breaking the law under _______. a. civil law b. voluntary compliance c. criminal law d. the honor system e. international guidelines
criminal law