MGS Chapter 11, 12, 13, 14, 15, 16

Why does a diverse and inclusive workforce benefit a firm supporting a global market? (chap 16)

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

Which of these statements is true regarding the Class Action Fairness Act of 2005? (chap 14)

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

Employees in the United States have a legal right to: (chap 15)

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

Which of the following describe why the consumer movement exists? (chap 14)

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

One major advantage of conducting business online is: (chap 12)

Cost-effective marketing and promotions

This Act makes it a crime to circumvent antipiracy measures built into most commercial software agreements between the manufacturers and their users: (chap 12)

Digital Millennium Copyright Act.

Which of the following is an example of fulfilling social objectives through stock ownership? (chap 13)

Divesting from Chinese companies that made products using forced labor.

In the 1980s, corn and soybeans were genetically modified, enabling farmers to spray for weeds without harming cultivated plants. At first, these changes were: (chap 11)

Expected to increase crop yields per arce

The audit committee is required by U.S. law to be: (chap 13)

Financially literate

How did some authoritarian governments justify limiting citizens' access to the Internet? (chap 11)

Improved national security

Which of these is not a current consumer law that protects individual privacy? (chap 14)

Internet "do not track" rules.

Increased cyber activity by which countries prompted NATO officials to brand them as "patriotic hackers"? (chap 12)

Iran and China

In 2017 mobile payment usage was largest for which type of purchase? (chap 11)

Not: Food and drinks

The idea that every distribution channel must work together to deliver a unified and consistent customer experience is called: (chap 12)

Omnichannel

States that have adopted right-to-work laws: (chap 15)

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

Benefits of managing diversity and inclusion effectively includes all except: (chap 16)

The federal government provides tax breaks.

Which of the following is (are) core rights of consumers? (chap 14)

The right to safety.

Which of the following is NOT true about occupational segregation? (chap 16)

The technology sector is dominated by women.

One argument in favor of net neutrality is: (chap 12)

To fairly compete, small, medium, and large firms should have the same Internet bandwidth.

Variation in the important human characteristics that distinguish people from one another is called: (chap 16)

diversity

A corporation's shareholders have a right to inspect the company's books for any reason. (chap 13)

false

According to the latest government data, in about 30 percent of all married couples with children, both parents worked at least part-time. (chap 16)

false

Cybersecurity experts recommend that firms implement an incident-response plan for cyberattacks, which are strictly preventative in nature. (chap 12)

false

Figure 11.2 shows that internet usage in developing nations has not even begun to catch up with developed countries. (chap 11)

false

In recent years, the use of drug testing in the workplace has increased as drugs have become more available. (chap 15)

false

In the U.S., genetically modified foods were primarily used in fast-food restaurants. (chap 11)

false

The practice of using fake business emails in order to trick users into divulging personal data, such as usernames and passwords, is called: (chap 11)

phishing

We are currently in which phase in the development of technology? (chap 11)

semantic

The gap between those who have access to technology and those who do not is called the digital divide. (chap 11)

true

The fastest growing region for Internet usage growth from 2000 to 2017, was: (chap 11)

Africa

Investors may receive an economic benefit from the ownership of stock by receiving: (chap 13)

Both dividends and capital gains

The current trend in the United States of firms' eliminating domestic partner benefits is largely due to: (chap 16)

The legalization of same-sex marriage in 2015.

The problem of alcohol-related accidents in the workplace is caused almost entirely by hard-core alcoholics. (chap 15)

false

A reason for an increase in employee monitoring does not include: (chap 15)

To reduce the employer's health insurance premiums.

The risk online shoppers take when their web profile negatively impacts their credit is known as: (chap 14)

Web lining

A compulsion to engage in rewarding behaviors, despite negative consequences is called: (chap 11)

behavioral addiction

A technological application that uses biological systems or living organisms to make or modify products or processes for specific use is called: (chap 11)

biotechnology

In the modern world, technology is a major ethical force with no economic or social impacts. (chap 11)

false

Cybersecurity experts recommend including which essential elements for an incident-response plan for cyberattacks? (chap 12)

All are correct: - involvement by all functional departments - support for executive leadership - focus on how to respond to a breach

An identifying marker placed on a user's computer hard drive used to build profiles of their behavior over time is called a: (chap 14)

Cookie

Which of the following is true about corporate boards? (chap 13)

Corporate boards average between 9 and 11 members.

This annual international gathering on January 28 brought together leaders from the U.S. and dozens of European countries to address the global nature of cyberattacks: (chap 12)

Data Privacy Day.

Groups that collect and combine data from various sources into individual profiles that are sold to retailers and advertisers are called: (chap 14)

Data aggregators.

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? (chap 16)

Firms with at least 50 employees.

Supporters of declassifying board elections argue that this approach: (chap 13)

Increases accountability and responsiveness to shareholders.

An argument in support of preventing government access to private cell phones, according to the case To lock or Unlock Your Phone: Personal Privacy or National Security, is: (chap 11)

Individuals have rights to privacy and safety

The "agency problem" arises when: (chap 13)

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

Romantic relationships in the workplace are described by which statement? (chap 15)

Many companies allow managers to become romantically involved with subordinates, so long as they do not supervise them directly.

Consumers owe more money on their home loans (mortgages) than on any other kind of household debt. After mortgages, what makes up the largest portion of household debt? (chap 14)

Student loans

According to McKinsey and Company, which position cannot be easily replaced with robots? (chap 12)

Team managers

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: (chap 14)

The truth in lending act

What criteria must be met before a whistle-blower goes public? (chap 15)

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

Employment-at-will is a legal doctrine that means employees are hired and retain their jobs at the sole discretion of the employer. (chap 15)

True

The activism of institutional investors in other countries has been spearheaded by: (chap 13)

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

In some cases, businesses have banded together to agree on how they will treat their customers. This is called: (chap 14)

Voluntary industry codes of conduct.

A prime social responsibility of business is to safeguard consumers: (chap 14)

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

Nondemocratic governments tend to fiercely protect the public's intellectual property rights. (chap 11)

false

Policies and practices that leverage a variety of perspectives, life experiences, and approaches that every individual brings to the workplace, are referred to as diversity. (chap 16)

false

Rights of employees are ethical and social, not legal or contractual, in nature. (chap 15)

false

The U.S. Constitution protects the right to free speech—which means only the government can take away this right. (chap 15)

false

The U.S. Department of Labor has ruled that employees who are economically dependent on the employer should be classified as independent contractors. (chap 15)

false

The United States has the most Internet users, more than any other country. (chap 11)

false

The term pay gap refers to the inequitable concentration of a group, such as minorities or women, in a particular job category. (chap 16)

false

Under the "right to be heard" protection, the consumer is guaranteed satisfactory quality and service at fair prices. (chap 14)

false

In the United States, the right to free speech: (chap 11)

must be weighed against the consequences for the community.

In the United States the government has tried to help narrow the digital divide by subsidizing Internet upgrades for schools and providing free cell phones to citizens in need. (chap 11)

true

In the United States, immigrants are more likely than non-immigrants to start their own business, having been responsible for 30 percent of small business growth. (chap 16)

true

It is the responsibility of the board of directors and its audit committee to engage an independent accounting firm to audit the financial statements prepared by management. (chap 13)

true

Nations have tended to move sequentially through each phase of technology, beginning with the lowest technology and moving higher with each step. (chap 11)

true

One reason for business efforts to reform product liability laws is the increasing cost of insuring against liability suits. (chap 14)

true

Robotic technology has advanced enough to generate many new business opportunities. (chap 12)

true

Shareholders have become an increasingly powerful and vocal stakeholder group in corporations. (chap 13)

true

Since the 1960s, growth in the numbers of institutional investors in the United States has been phenomenal. (chap 13_

true

Technology tends to ripple through society until it affects every community. (chap 11)

true

The Organization for Economic Cooperation and Development (OECD), representing 34 nations, issued a revised set of principles of corporate governance to serve as a benchmark for companies and policymakers worldwide. (chap 13)

true

What are the benefits of sequencing the human genome? (chap 11)

Both correct: - Helps early diagnosis of diseases - Spurs new ways to prevent illnesses

The EU's 2018 General Data Protection Regulation applies to: (chap 14)

Companies anywhere who provide services to European customers.

According to the new social contract: (chap 15)

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

What is one reason why woman and minorities fail to move into executive or board positions? (chap 16)

The old boys' network.

Institutional investors are sometimes referred to as: (chap 13)

Wall Street investors.

The doctrine of strict liability extends only to the retailer who is involved in selling the product, not the manufacturer. (chap 14)

false

The level of income inequality in the United States has fallen since the 1980s. (chap 15)

false

The major agency charged with enforcing equal opportunity laws and executive orders in the United States is the Americans with Disabilities Council (ADC). (chap 16)

false

The responsibility of managing technology with its many privacy and security issues for business organizations is entrusted to the CFO. (chap 12)

false

This term refers to the practical applications of science and knowledge to commercial and organizational activities. (chap 11)

technology

Microsoft launched a program in 2017 to bring the Internet to more of rural America using: (chap 11)

unused broadcast channels

In 2017 about what percentage of people around the world had no access to the Internet? (chap 11)

52 percent

The law requiring that toys and infant products be tested before sale is called the: (chap 14)

Consumer Product Safety Improvement Act.

One of the biggest challenges for autonomous vehicle manufacturers, according to the case The Arrival of Autonomous Cars—Bright Future or Looming Threat? was: (chap 12)

Ensuring the vehicles were safer than driver-controlled automobiles.

The directors of a company are a central factor in corporate governance because they: (chap 13)

Exercise formal legal authority over company policy

Employee theft is correctly described by which statement? (chap 15)

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

Which of the following statements is not true about the organization Consumer Reports? (chap 14)

It is supported by the federal government.

According to the textbook, Asian American men now have higher median weekly earnings than white American men primarily because: (chap 16)

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

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: (chap 16)

Parental leave.

Age, ethnicity, gender, mental or physical abilities, race, and sexual orientation fall under which dimension of diversity? (chap 16)

Primary

The main responsibility of the National Highway Traffic Safety Administration is to: (chap 14)

Set motor vehicle safety standards

How are directors (members of corporate boards) selected? (chap 13)

Shareholders elect the directors from a list of candidates.

Some studies have shown that the burden of complying with safety regulations falls hardest on: (chap 15)

Small businesses

Consumers make less rational choices when they have accurate information about a product. (chap 14)

false

The digital divide describes the gap between those: (chap 11)

individuals who have internet access through technology and those who do not.

Critics have argued that honesty tests discriminate disproportionately against minorities. (chap 15)

true

E-business revenues are expected to rise primarily due to consumers in emerging markets. (chap 12)

true

Employee Assistance Programs (EAPs) are correctly described by which of these statements? (chap 15)

ALL are correct: - To a safe and healthy workplace. - Nearly three-quarters of small companies with 50 to 99 employees offer EAPs. - They offer counseling and follow-up to alcohol and drug abusers.

Reports filed with the SEC provide information on a company's: (chap 13)

All are correct - Sales and earnings - Depreciation by line of business - Details of foreign operations

Why does the inclusion of women on corporate boards improve company performance? (chap 16)

All are correct: - Alternative courses of action are more realistically considered. - Women are more likely to raise multiple stakeholder concerns. - Women bring different life experiences to discussions.

The growing diversity in the U.S. workforce is due to: (chap 16)

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

Child care assistance in the workplace is accurately described by: (chap 16)

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

Social investors seek to eliminate from their investment portfolios companies that: (chap 13)

All are correct: - Pollute the environment - Discriminate against employees - Make dangerous products like tobacco or weapons

The use of robotics in the workplace has increased recently because: (chap 12)

All are correct: - new collaborative machines have been invented - the cost of robots has decreased - robots are more reliable than people.

Some argue that publishing personal DNA sequencing results is unethical because: (chap 11)

All correct - The results could compromise one's employment situation. - The cost of health insurance could rise. - Life insurance could be denied.

Another name for unsolicited commercial emails is: (chap 11)

All correct - UCE - Spam - Junk email

One alternative to product liability lawsuits is called: (chap 14)

Alternative dispute resolution.

Rules in the United States that prohibit competitors from secretly dividing up the market amongst themselves are called: (chap 14)

Antitrust laws

The Securities and Exchange Commission outlaws: (chap 13)

Any manipulative or deceptive device used to trade stocks.

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: (chap 13)

Bear market

One type of digital currency that operates outside the banking system using encrypted technology is: (chap 11)

Bitcoin

Companies can combat sexual and racial harassment—and protect themselves from expensive lawsuits—by: (chap 16)

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 primary goal(s) of the Food and Drug Administration include: (chap 14)

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.

Where are workers not permitted to form independent unions? (chap 15)

Both some communist countries and some military dictatorships.

Which part of the Department of Justice protects the public from being charged excess fees based on one's race? (chap 14)

Civil Rights Division.

A global organization headquartered in London that represents over 200 consumer groups in more than 100 nations is called: (chap 14)

Consumers international

Buying and selling goods and services electronically is called: (chap 12)

E-business

Sexual harassment applies to: (chap 16)

Either men or women who are being harassed.

A reason for institutions becoming more assertive in promoting the interests of their member investors is: (chap 13)

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

The right to a safe and healthy workplace is accurately described by which statement? (chap 15)

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

One important aspect of the new social contract regarding fixed pension benefits is: (chap 15)

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

When women and minorities are highly competent but are unable to attain executive positions, this is typically called: (chap 16)

Glass ceiling

Government rules on equal treatment of employees include: (chap 16)

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

Warning consumers about the possible side effects of pharmaceutical drugs is an example of consumer protection against: (chap 14)

Hazardous products.

An argument in support of high executive compensation is: (chap 13)

High salaries provide an incentive for innovation and risk-taking

Which of the following is a key feature of effective boards of directors? (chap 13)

Hold regular meetings without the CEO present

When businesses adopt voluntary policies for protecting the privacy of individuals' information disclosed during electronic transactions, this is an example of: (chap 14)

Industry self-regulation.

The ideas, concepts, and other symbolic creations of the human mind are often referred to as: (chap 12)

Intellectual Property

One argument in favor of affirmative action is: (chap 16)

It levels the playing field to correct past discriminatory hiring practices.

Random drug testing of employees is accurately described by which statement? (chap 15)

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

Which law eliminated certain time restrictions for filing pay discrimination lawsuits? (chap 16)

Lilly Ledbetter Fair Pay Act of 2009.

Under U.S. laws, who has the right to hold an election to choose what union they want to represent them, if any: (chap 15)

Most private and public workers.

The place where information is stored, ideas are described, and communication takes place in and through an electronic network of linked systems is called: (chap 11)

NOT: cloud computing

In 2017 which country had the most restrictive Internet censorship policies, completely blocking its citizens from conducting Internet searches and from using social media platforms? (chap 11)

North Korea

One of the main reasons that American executives are paid so much is: (chap 13)

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

According to the U.S. Department of Labor, some of the most dangerous jobs include: (chap 15)

Police, fire fighters, prison guards.

The "right to be heard" promises that consumers' interests will: (chap 14)

Receive full and sympathetic consideration.

The self-reinforcing feature of technology means that: (chap 11)

Technology acts as a multiplier to encourage is own faster development.

The Occupational Safety and Health Act gives workers the right to a job: (chap 15)

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

Consumers have become more dependent on businesses for product quality because: (chap 14)

The complexity of products makes choices complicated for consumers.

Which of the following statements is not true about shareholders? (chap 13)

They own equal shares of company assets.

In the case The Ugly Side of Beautiful Nails, the nail salon industry violated which of these worker rights? (chap 15)

To a safe and healthy workplace.

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? (chap 15)

Whistle-blowing

Downloading illegal files, spreading computer viruses, and stealing from online bank accounts is collectively referred to as: (chap 12)

cybercrime

Institutional investors have little incentive to hold their shares and organize to change management policy. (chap 13)

false

It is illegal in the United States to offer stock trade tips to clients based on public information. (chap 13)

false

The activism of institutional shareholders has been completely limited to the United States. (chap 13)

false

The current phase of technology is the service society. (chap 11)

false

Boards of directors in the United States are required to staff their compensation committees exclusively with outside directors. (chap 13)

true

Employers are not required by law to agree to the union's demands, but they are required to bargain in good faith. (chap 15)

true

If someone is entitled to be treated in a certain way, this refers to a(n): (chap 15)

true

In 2014, NATO ratified a change to its mission of collective defense by stating that a cyberattack on one member nation would be declared an attack on all members. (chap 12)

true

In a business context, privacy rights refer to protecting an individual's personal life from unwarranted intrusion by his or her employer. (chap 15)

true

One problem with companies issuing product recalls is that the public is often unaware of them. (chap 14)

true

Some experts believe that cybercrime can only be controlled through international government coordination. (chap 12)

true

Some firms require managers to sign a consensual relationship agreement to protect against harassment suits related to failed office romances. (chap 15)

true

Stock options represent the right to buy a company's stock at a set price for a certain period. (chap 13)

true

The collection of large amounts of consumer data by businesses creates ethical issues of privacy and security. (chap 12)

true

The mission of the Consumer Financial Protection Bureau is to ensure that financial products and services are fair, transparent, and competitive. (chap 14)

true

The proportion of working women that have told researchers they have been sexually harassed on the job is between 40 and 70 percent. (chap 16)

true

The term diversity refers to variation in the important human characteristics that distinguish people from one another. (chap 16)

true

The two main types of investors that own shares of stock in U.S. corporations are individuals and institutions. (chap 13)

true

Under the Family Medical Leave Act, companies that employ 50 or more people must grant unpaid, job-protected leaves for up to 12 weeks to employees with serious family needs, including the birth or adoption of a baby. (chap 16)

true

When boards of directors meet without management present, they are more likely to have completely candid discussions about a company's affairs. (chap 13)

true