MGT 3301- Exam Chap 3 & 4
70) A manager who is effectively managing diversity in the liaison role would A) convey that the effective management of diversity is a valued goal and objective. B) serve as a role model for treating others fairly. C) enable diverse individuals to coordinate their efforts and cooperate with one another. D) support diversity initiatives in the wider community.
Answer: C
74) Felicia, who is vice president of talent management for a large manufacturer, works with suppliers and labor unions to support and encourage the effective management of diversity. What role is Felicia performing? A) figurehead B) disturbance handler C) negotiator D) business partner
Answer: C
75) Which of the following managerial roles supports diversity initiatives in the wider community and speaks to diverse groups to interest them in career opportunities? A) figurehead B) leader C) spokesperson D) liaison
Answer: C
76) Norms that are central to the functioning of a society and whose violation brings serious retribution are known as A) sanctions. B) folkways. C) mores. D) rituals.
Answer: C
77) Which of the following is true of women and minorities when they start work in an organization staffed mostly by white men? A) They have advantages due to special preferences. B) They are likely to quit or be fired within a month. C) They are at a slight disadvantage. D) They quickly take over most leadership roles.
Answer: C
77) Willard wants to be an expatriate, but he violated a folkway on a recent international trip. Because of this violation, his international hosts thought of him as A) powerful and socially refined. B) immoral or wicked. C) eccentric or ill-mannered. D) unfamiliar with religion.
Answer: C
79) If a society values the group more than the individual, and believes that people should be judged by the quality of their contribution to the group instead of their individual achievement, then the society is said to value A) individualism. B) power distance. C) collectivism. D) objectivism.
Answer: C
79) Seth, a senior manager, attends a board meeting in which the CEO urges each manager to improve profitability within his or her division. Which of the following reflects an effective management of diversity that Seth could use to help improve profitability? A) retaining only low-paid employees B) hiring more Asian women C) retaining valued employees D) giving preference to Hispanics
Answer: C
46) Economies of scale result from actions such as A) manufacturing products in small quantities. B) keeping the demand high by cutting supply. C) creating products that are exclusive. D) buying inputs for the products in bulk.
Answer: D
48) Which of the following emanate from laws, customs, and practices, and from unwritten attitudes, values, and norms that influence how people interact with each other? A) professional ethics B) chain ethics C) business ethics D) societal ethics
Answer: D
51) Building customer awareness of the newcomer's product is very costly in the face of which of the following sources of barriers to entry? A) economies of scale B) technological barriers C) government regulations D) brand loyalty
Answer: D
51) The ethics ombudsman's authority in monitoring ethical practices and procedures applies within which of these? A) the branch office B) operations departments C) the administrative circle D) the entire organization
Answer: D
52) Dissimilarities among people due to age, gender, race, ethnicity, religion, sexual orientation, socioeconomic background, education, experience, physical appearance, capabilities/disabilities, and any other characteristic that is used to distinguish between people defines A) flexibility. B) solidarity. C) universality. D) diversity.
Answer: D
53) Which of the following is a reason that diversity is such a pressing concern and an issue both in the popular press and for managers and organizations? A) Diverse individuals are hired despite not having valid permits to work. B) Diverse people must receive equal opportunities and be treated fairly and justly. C) Recruitment of diverse people is a major human resources expense for companies. D) Diverse individuals get preferential treatment in the workplace.
Answer: B
64) A rural bank in Texas loses customers when those customers decide to invest their money in foreign banks that they access online. The rural bank's management considers this to be an example of A) a negative effect related to human capital. B) a negative effect related to financial capital. C) a positive effect related to human capital. D) a positive effect related to financial capital.
Answer: B
65) The U.S. government imposes a 25 percent tax on the selling price of any four-wheel-drive SUV that is brought into the U.S. by a foreign car manufacturer to be sold in the U.S. What type of tax is the U.S. government imposing? A) an export tariff B) an import tariff C) a franchise tax D) a licensing tax
Answer: B
68) In the North American Free Trade Agreement (NAFTA), what percentage of the tariffs on the goods traded between Mexico, Canada, and the United States were supposed to be abolished by the year 2004? A) 30 percent B) 99 percent C) 70 percent D) 55 percent
Answer: B
70) In a society, the unwritten rules of conduct that state how people should act in particular situations in that society are known as A) values. B) norms. C) rituals. D) goals.
Answer: B
12) Bruce is a manager seeking new employees. As he looks through applicants' resumes, he decides he wants to hire only women for these positions because he believes that women are much less trouble and will do as he tells them. But then he decides that it would be wrong to exclude people he hasn't even met based on his notions of how men and women behave. Bruce's thoughts and feelings that tell him what is right or wrong are an example of A) moral scruples. B) ethical dilemmas. C) quid pro quo. D) moral imagination.
Answer: A
12) Dinesh manages a division of a sporting goods manufacturer. He attends a conference and receives advice from four experienced managers. Based on what you have read, which of the following pieces of advice should Dinesh take? A) "Make the company a global organization so it can benefit from emerging markets." B) "Make the company a local organization so it can be protected from new competitors." C) "There will always be competitors, so focus on long-term demographic trends instead of worrying about the competition." D) "There will always be demographic changes, so focus on beating competitors instead of analyzing customer trends."
Answer: A
13) Li Jun, a manager, has a problem at work. He asks his mentor for advice, and she suggests that he think about what he believes is morally the right thing to do. Essentially, Li Jun's mentor is telling him to pay attention to his A) ethics. B) opinions. C) laws. D) norms.
Answer: A
15) Compared to the changes in the task environment, those in the general environment are often A) harder to identify. B) easier to respond to. C) threats, not opportunities. D) of less consequence.
Answer: A
34) Ms. Chen manages a clothing store. Her boss, the district manager, suggests that she fire competent employees who are old or unattractive because "they aren't good ambassadors for our brand." Ms. Chen tells her boss, "I'm sorry, but I can't do as you ask. If anyone found out that we did this, it would damage the company's reputation. The average shopper wouldn't want to do business with us." Which ethical rule is Ms. Chen applying? A) justice B) practical C) moral rights D) utilitarian
Answer: B
34) Organizations that help other organizations to sell their goods to customers are known as A) competitors. B) distributors. C) customers. D) suppliers.
Answer: B
36) A firm that has not traditionally been a competitor of EcoPro suddenly creates a new type of product that makes EcoPro products obsolete. This is an example of A) demographic forces in the general environment. B) competitors in the task environment. C) suppliers in the task environment. D) politics in the general environment.
Answer: B
37) Bonne Chance Cosmetics manufactures and sells a skincare line. It does not currently make or sell lipstick, but it could do so in future. A cosmetics company that makes and sells lipstick could view Bonne Chance as a potential A) supplier. B) competitor. C) distributor. D) consumer.
Answer: B
38) Cool Breeze Inc. manufactures ceiling fans in a small town. Which of these companies is a potential competitor to Cool Breeze? A) a manufacturer in the same town that pays its workers slightly more than Cool Breeze does B) a maker of floor-level and pocket-sized mechanical fans C) a distributor of ceiling fans to North America, Europe, and Asia D) a technical school that trains its students to repair ceiling fans
Answer: B
39) Factors that make it difficult and costly for a company to compete in a particular task environment or industry are A) political forces. B) barriers to entry. C) isolating mechanisms. D) free trade agreements.
Answer: B
39) Formal standards and rules, based on beliefs about right or wrong, that managers can use to help themselves make appropriate decisions with regard to the interests of their stakeholders are A) honor codes. B) codes of ethics. C) moral codes. D) existentialist guidelines.
Answer: B
45) Victoria quits her job managing an independently owned restaurant to take a new job managing a chain of restaurants. She discovers that, because her new employer buys so much food and so many other supplies, the cost per item is much less. These cost advantages are the result of A) brand loyalty. B) economies of scale. C) boundary spanning. D) power distance.
Answer: B
50) Which of the following statements accurately defines brand loyalty? A) It is the repurchase behavior shown by customers due to the fear of trying a new brand. B) It is the customers' preference for the products currently in the task environment. C) It is the perception of customers that some brands are equivalent. D) It implies that the brand delivers what it promises.
Answer: B
74) The society of the nation of Atlantis has commonly accepted laws against driving while intoxicated, and violations of those laws bring severe penalties. This is an example of which type of norm? A) mores B) sanctions C) folkways D) rituals
Answer: A
33) Which of these is an example of a distributor? A) the International Brotherhood of Electrical Workers union B) DHL, an international shipping company C) individuals who buy phones for their personal use D) Ruby Tuesday, a "fast casual" restaurant chain
Answer: B
52) In the drug manufacturing industry, Gateway Labs is a company operating at massive economies of scale in the production of many drugs. Thus, a potential entrant into the industry will have a A) much wider customer base. B) higher level of production costs. C) competitive advantage in pricing. D) cheaper distribution system.
Answer: B
71) Cedric, the human resources manager at Albuquerque Metals, commits 15 percent of his department's budget to develop a new program for bringing minority and female interns into the company. Which of the following roles is Cedric performing? A) resource allocator B) entrepreneur C) monitor D) figurehead
Answer: B
48) If it is difficult and costly to enter a task environment, then for companies already within a task environment or industry, A) the barriers to entry are low. B) threat of competition is high. C) it is easier to obtain customers. D) it is harder to keep prices high.
Answer: C
49) If established organizations enjoy significant brand loyalty, a new entrant will A) find it neither difficult nor costly to obtain a share of the market. B) easily establish itself as another company enjoying brand loyalty. C) bear huge costs to build customer awareness of its products. D) deter potential competitors from entering the task environment.
Answer: C
53) A high percentage of the customers of Action Sport buy Action Sport shoes at least three-fourths of the time that they buy shoes. In the context of barriers to entry, this product has a large degree of A) distributor loyalty. B) demographic force. C) brand loyalty. D) potential competition.
Answer: C
55) The combination of equipment and skills that a manager uses in the production and distribution of goods is known as A) economies of scale. B) a competitive advantage. C) technology. D) the national culture.
Answer: C
57) The collection of values that a society considers important and the norms of behavior that are approved by the society are known as A) sociocultural forces. B) economies of scale. C) the national culture. D) demographic forces.
Answer: C
58) Cedric, a brand manager, transferred from the United States to Japan. He discovered that although people in the United States highly value individualism, people in Japan expect individuals to conform to group expectations. Cedric concluded that Japan places more of an emphasis on A) cultural relativism. B) self-control. C) collectivism. D) political differences.
Answer: C
60) "A grouping of people based on some shared characteristic such as national origin, language, or culture" refers to A) diversity. B) minority. C) ethnicity. D) disability.
Answer: C
60) Karen, an executive at Brandon's Department Store, finds that the median age of the population in the chain's region is increasing by about three years every decade. This is an example of which type of force in the general environment? A) political B) economic C) demographic D) sociocultural
Answer: C
66) Managers who are sensitive and responsive to the needs and concerns of workers who may be less fortunate in terms of income and financial resources are showing an awareness of A) ethnic solidarity. B) class prejudice. C) socioeconomic diversity. D) financial well-being.
Answer: C
68) Vanessa, who owns and runs a small business, treats all her employees, customers, and suppliers fairly, regardless of their age, gender, or ethnicity. Which of the following roles is Vanessa performing? A) tycoon B) liaison C) leader D) figurehead
Answer: C
57) Nils is a human resources director at a small company. He mentions to his CEO that one of the company's employees has requested paternity leave. The CEO asks, "Do we really have to provide that?" Which of these laws should Nils cite in his answer? A) Equal Pay Act B) Age Discrimination in Employment Act C) Pregnancy Discrimination Act D) Family and Medical Leave Act
Answer: D
58) Which of the following employment opportunity laws prohibits discrimination and allows for the awarding of punitive and compensatory damages, in addition to back pay, in cases of intentional discrimination? A) Equal Pay Act B) Age Discrimination in Employment Act C) Pregnancy Discrimination Act D) Civil Rights Act
Answer: D
59) Today in most industrialized nations, as a consequence of falling birth and death rates, the absolute number of older people has increased substantially. This is an example of ________ change. A) sociocultural B) economic C) political D) demographic
Answer: D
61) The U.S. Census treats ethnicity in terms of whether a person A) speaks a foreign language. B) is Chinese, Korean, or Japanese. C) has a skin color other than white. D) is Hispanic, Latino, or of Spanish origin or not.
Answer: D
61) The population of the United States is shifting from the Northeast to the Southwest. This is an example of which type of force in the general environment? A) political B) legal C) sociocultural D) demographic
Answer: D
69) Susan's company sends her to "expat training" before her international posting. The training teaches the values, norms, knowledge, beliefs, moral principles, laws, customs, and other practices that unite the citizens of the country where she is going. These values, norms, beliefs, etc. are also known as A) a representative democracy. B) a free-trade economy. C) the national culture. D) culture shock.
Answer: C
62) Amethyst Corporation's employees practice a variety of religions. The CEO of Amethyst wants suggestions from managers about how to be flexible when interacting with employees of different religions. Which of these would be a reasonable suggestion for a manager to make? A) "Give employees special bonuses during religious festivals." B) "Allow employees to hold religious services in the office." C) "Conduct mandatory company-wide prayer breakfasts." D) "Allow employees to have time off for religious observances."
Answer: D
63) A tax that a government imposes on goods imported into the country is known as a(n) A) sanction. B) quota. C) embargo. D) tariff.
Answer: D
64) As treatments for human immunodeficiency virus (HIV) and acquired immune deficiency syndrome (AIDS) improve, more people with those conditions are well enough to continue working. Which of the following protects employees with AIDS from being discriminated against in the workplace? A) Age Discrimination in Employment Act of 1967 B) Family and Medical Leave Act of 1993 C) Civil Rights Act of 1991 D) Americans with Disabilities Act of 1990
Answer: D
65) The combination of social class and income-related factors is referred to as ________ background. A) sociological B) financial C) family D) socioeconomic
Answer: D
67) One of the reasons that world trade has increased so dramatically is that tariff barriers have A) vanished. B) changed little, leading to a sense of stability. C) become much stronger. D) fallen significantly.
Answer: D
69) Sam has been a manager for six months. At his performance review, his manager suggests that Sam do more to manage diversity in the disseminator role. Which of these approaches should Sam suggest to improve his effectiveness in this role? A) Develop new ways to manage diversity. B) Take quick actions to manage conflict arising from diversity. C) Evaluate how fairly employees are being treated. D) Communicate to employees about diversity policies.
Answer: D
54) David, a sales manager, was surprised when customers repeatedly bought more expensive True Sound headphones instead of the less expensive substitutes that his company produces. David told the vice president of sales that True Sound must have a high level of A) demographic force. B) brand loyalty. C) potential competition. D) distributor loyalty.
Answer: B
56) Social structure is the traditional system of relationships established between ________ in a society. A) splinter groups and rights holders B) people and groups C) belief systems and cultural traditions D) casualness and formality
Answer: B
56) Which of the following Equal Employment Opportunity (EEO) laws prohibits discrimination in employment decisions on the basis of race, religion, sex, color, or national origin and covers a wide range of employment decisions, including hiring, firing, pay, promotion, and working conditions? A) Age Discrimination in Employment Act B) Title VII of the 1964 Civil Rights Act C) Equal Pay Act D) Americans with Disabilities Act
Answer: B
72) A society has a common practice that men should remove their hats whenever they ride in elevators that are also carrying women. This is an example of which type of norm? A) rituals B) folkways C) standards D) mantras
Answer: B
11) The wide-ranging global, economic, technological, sociocultural, and political forces that affect the organization and its task environment make up the ________ environment. A) competitive B) near C) task D) general
Answer: D
55) Which of the following refers to the invisible barriers that prevent minorities and women from being promoted to top corporate positions? A) gender limit B) flight grounder C) invisible cliff D) glass ceiling
Answer: D
75) Values are deeply embedded in society and A) change through a slow and painful process. B) are static and remain unchanged. C) change quickly via smooth transitions. D) are the same across all societies.
Answer: A
18) Max is interviewing for a management job with an international manufacturer. One of the interviewers asks him whether he would rather focus on the task environment or the general environment in this management position. Which of these is the best answer for Max to give? A) "I'd like to focus on the task environment because it has the most immediate and direct effect on managers, so I could make a real difference." B) "Focusing on the general environment interests me because I want to improve the organization's ability to obtain inputs and dispose of outputs." C) "I can focus on both because the task environment and the general environment are basically the same thing." D) "Since companies are becoming more homogeneous because of globalization, neither the label 'task environment' nor 'general environment' really applies anymore."
Answer: A
22) Caltronix helps Gen Marco sell Marco washing machines. Caltronix does not use the machines. Which of the following describes either company correctly? A) Caltronix is a distributor. B) Caltronix is a customer. C) Gen Marco is a supplier. D) Gen Marco is a customer.
Answer: A
22) Senior management of a restaurant chain decides to cut the workforce by 15 percent. Which of these groups is most likely to respond positively to this news? A) stockholders B) managers C) employees D) customers
Answer: A
26) Heartz Ltd. provides Glayton Technologies with input resources that it needs to produce its products. In this context, which of the following categories does Heartz Ltd. belong to? A) suppliers B) competitors C) distributors D) customers
Answer: A
27) A supplier's bargaining position is strong when A) the input is vital to the organization. B) there are a large number of suppliers for an input. C) the supply is free. D) the supply is not protected by a patent.
Answer: A
27) According to which of the following rules is an ethical decision one that distributes rewards and harms in a fair way? A) justice rule B) moral rights rule C) utilitarian rule D) practical rule
Answer: A
29) Employees who are similar in their level of skill, performance, or responsibility should receive similar pay; allocation of outcomes should not be based on differences such as gender, race, or religion. This is an example of which rule of ethical decision making? A) justice rule B) moral rights rule C) utilitarian rule D) practical rule
Answer: A
31) A company based in India performs the routine data entry tasks for a Texas-based insurer. This arrangement is an example of A) global outsourcing. B) power distance. C) inverted sourcing. D) shared services.
Answer: A
37) A person's confidence and faith in another person's goodwill is called A) trust. B) esteem. C) ethics. D) moral scruple.
Answer: A
38) Which of the following is a likely result of loss of trust? A) Withholding information becomes the norm to keep the stakeholders' interests safe. B) Distrust decreases the time spent negotiating and bargaining between stakeholders. C) More motivated stakeholders contribute to a higher standard of living and well-being. D) An increase in company performance takes place as people try to win back trust.
Answer: A
40) Which of the following emanate from a particular community's unwritten attitudes, values, and norms that influence how people interact with each other? A) societal ethics B) professional ethics C) individual ethics D) organizational ethics
Answer: A
40) Which of these is an example of a barrier to entry? A) the lack of well-trained employees who have years of experience in a specialized area B) government regulations that set few or no restrictions on establishing a business in that field C) the ability to manufacture components or products in small quantities D) the ability to specialize in one specific type of product for a niche audience
Answer: A
42) For a company planning to enter a task environment or industry, the greater the economies of scale within that task environment, A) the higher will be the barriers to entry. B) the smaller will be the investment. C) the easier it will be to create brand loyalty. D) the higher will be tariff rates.
Answer: A
44) It is easier to obtain customers and keep prices high in a task environment where there are few A) competitors. B) customers. C) suppliers. D) distributors.
Answer: A
45) Standards that govern how members of an organization, whether they are managers or workers, make decisions when the way in which they should behave is not clear-cut are ________ ethics. A) professional B) individual C) societal D) organizational
Answer: A
47) By fully using its employees' skills and knowledge, ImagineDragon Software is making more effective use of organizational resources than do its competitors. It is thus increasing A) economies of scale. B) the national culture. C) intellectual capital. D) soft skills.
Answer: A
59) Lisa, one of the employees at a small factory, says that she should be paid as much as her coworker Jonathan. Lisa and Jonathan have the same job title, but Jonathan has been with the company six months longer. Lisa is white, and Jonathan is African American. Both of them are in their late 40s. Under which federal law might Lisa bring a claim of discrimination? A) Equal Pay Act B) Age Discrimination in Employment Act C) Pregnancy Discrimination Act D) Civil Rights Act
Answer: A
62) Deregulation and privatization are a part of which of the following forces in the general environment? A) political and legal B) technological and industrial C) cognitive and sociocultural D) macroeconomic and microeconomic
Answer: A
71) Ifaneyi's company transfers him to the United States, where he finds that he is expected to be much more casual than he is used to in terms of what he wears and how he speaks to people. In the context of social norms, the customs and practices related to correct dress and social manners are known as A) folkways. B) artifacts. C) values. D) rites.
Answer: A
72) A top manager giving a speech to employees about the importance of diversity is acting as a(n) A) figurehead. B) leader. C) liaison. D) entrepreneur.
Answer: A
73) Ingrid moves to a different country to manage IT employees. She discovers that this society has what she considers surprising ideas about what is bad, wrong, undesirable, or unattractive. These ideas are A) values. B) mores. C) rites. D) folkways.
Answer: A
76) Since becoming a senior vice president at her firm, Malaika has checked in informally with workers who reported concerns related to diversity and unfair treatment and represented the company at job fairs that attract diverse candidates. She has also worked with contractor firms to improve their diversity management of subcontractors. According to the text, which managerial roles has Malaika played? A) monitor, spokesperson, negotiator B) resource allocator, spokesperson, entrepreneur C) disturbance handler, resource locator, ally D) dissembler, monitor, negotiator
Answer: A
82) When workers in a society become wealthy and pass their wealth to their children, thereby increasing the gap between the rich and the poor in that society, the society is said to have high A) power distance. B) individualism. C) achievement orientation. D) short-term orientation.
Answer: A
83) Bernadette reports to her manager that a coworker in another group insisted that she have sex with him or he would ruin her chances of promotion. Bernadette slept with him, and now she is very upset and is having difficulty concentrating at work. Does she have a valid claim of quid pro quo sexual harassment? A) yes, because the coworker threatened her with negative consequences if she did not sleep with him B) yes, because he was directly responsible for making the decision to promote Bernadette C) no, because Bernadette went along with the sexual harassment, making her claim invalid D) no, because sexual harassment takes place between a supervisor and a subordinate
Answer: A
83) The government uses taxation and social welfare programs to reduce inequality and improve the welfare of the least fortunate in ________ countries. A) low-power-distance B) high-power-distance C) long-term-orientation D) short-term-orientation
Answer: A
86) A male manager stands, smiling, as a worker from another unit makes a remark to his female subordinate about her appearance that she considers to be sexually demeaning. This male manager has exhibited A) a hostile work environment. B) the glass ceiling. C) the similar-to-me effect. D) the salience effect.
Answer: A
88) In a fast-developing country, the government uses taxation and programs to improve the welfare of the least fortunate. This country is an example of low power distance because A) large inequalities between citizens are not allowed to develop. B) individuals are treated as being superior to the group. C) people whose behaviors differ from the norm are respected. D) happiness and living for the present are valued.
Answer: A
89) The recommended steps to eliminate sexual harassment include A) clearly communicate harassment policy and establish a complaint procedure. B) ensure that alleged victims are isolated from the workforce until the legal case is resolved. C) immediately fire alleged harassers regardless of the nature of the offense. D) establish and strictly enforce a company-wide dress code.
Answer: A
90) Ramon is a manager at a small company. One of his colleagues tells him that some employees are suing the company, alleging a hostile work environment. The president of the company allegedly taunted them and made remarks about their race. "Can the employees really do that?" Ramon's colleague asks him. Which of these responses would be accurate for Ramon to give? A) "It sounds like it's possible for them to sue for a hostile work environment and for race discrimination." B) "They can probably sue, but not on the grounds of a hostile work environment. That applies to sexual harassment." C) "Under federal law, they can't sue unless they quit or are fired, so I don't think we need to worry about a lawsuit right now." D) "Our company is too small for 'hostile work environment' statutes to apply, but we should still try to solve this problem."
Answer: A
11) At a job interview, the interviewer asks Andrea to describe a time when she faced an ethical dilemma. An ethical dilemma is a situation in which a person has to decide if he/she should act in a way that A) neglects his/her own self-interest to favor another's self-interest. B) is the right thing to do, even though doing so might go against his/her own self-interest. C) does not go against the self-interest of anyone involved. D) may help another person and favor his/her own self-interest at the same time.
Answer: B
13) Which of the following is part of an organization's general environment? A) customers B) technology C) competitors D) suppliers
Answer: B
21) Pentathlon Ltd. and New Image Fitness both specialize in designing bikes for triathletes in the North American market. Thus, each company would see the other as a A) supplier. B) competitor. C) distributor. D) customer.
Answer: B
23) Actions of suppliers, distributors, customers, and competitors can affect managers' ability to obtain resources and dispose of outputs, and thus, have a significant impact on the company's A) socioeconomic environment. B) short-term decision making. C) political influence. D) power distance.
Answer: B
24) An organization's major customer puts pressure on the organization to reduce prices on its products. This is an example of influence exerted by the organization's ________ environment. A) demographic B) task C) legal D) sociocultural
Answer: B
24) The utilitarian rule states that an ethical decision A) will affect those who consider utility in their business decisions. B) produces the greatest good for the greatest number of people. C) protects the most important stakeholders first. D) is one that can be made quickly and with a minimum amount of tension.
Answer: B
25) According to which of the following rules is an ethical decision one that best maintains people's fundamental privileges? A) religious equality B) moral rights C) financial D) fairness-based
Answer: B
25) Miriam is a senior manager for an international chain of fitness centers. Two suppliers provide exercise machines for her company. Which of the following is the wisest advice on how Miriam should manage her suppliers? A) Keep the relationships as they are and focus on other matters, since suppliers are not essential to this type of organization. B) Seek out potential new suppliers who can meet or exceed the quality standards of existing suppliers. C) Eliminate one of the suppliers based on the quality of machinery and speed of shipping. D) Eliminate one of the suppliers based on the lowest total price for each machine.
Answer: B
32) When a company outsources tasks globally, which of these factors can wipe out the price differential from lower labor costs? A) powerful trade unions B) high shipping costs C) low pollution controls D) negative publicity
Answer: B
73) Greg is a middle manager at an accounting firm. When one of his employees emails him a series of racist jokes, Greg tells the employee to stop. Greg also goes to human resources and encourages the staffers there to send out a general reminder that racist, sexist, or otherwise inappropriate jokes are inappropriate for the workplace. Taking quick action to correct inequalities and curtailing discriminatory behavior is the duty of a manager in a ________ role. A) leader B) disturbance handler C) negotiator D) liaison
Answer: B
78) If a society believes that self-expression is important to the people in that society, then the society is said to value A) social background. B) individualism. C) objectivism. D) power distance.
Answer: B
81) When a manager asks a subordinate for sexual favors in return for a promotion, what type of sexual harassment has occurred? A) hostile work environment B) quid pro quo C) accommodative approach D) whistleblower approach
Answer: B
84) Val comes from a culture that values equality, works for the improvement of the welfare of the less fortunate, and values warm personal relationships more than goal achievement. Val's culture has A) high collectivism and short-term orientation. B) low power distance and strong nurturing orientation. C) high power distance and nurturing orientation. D) low uncertainty avoidance and high individualism.
Answer: B
85) A female subordinate is offended by posters in her supervisor's office that she believes are degrading to women. She avoids going into the office, even when she has a work-related question. Her supervisor has exhibited A) immediate corrective action. B) a hostile work environment. C) unfair retaliation. D) an isolated incident.
Answer: B
87) If two female managers exchange a lewd sexual joke in the presence of a male manager, these female managers have exhibited A) nothing illegal or unethical. B) a hostile work environment. C) quid pro quo sexual harassment. D) a salience effect.
Answer: B
89) In countries that are rooted in a culture of collectivism it is easy to spot A) admiration for personal success. B) conformity to group norms. C) high regard for individual entrepreneurs. D) belief in individual rights.
Answer: B
15) It was considered ethical and legal to acquire and possess slaves in ancient Rome and Greece. Today, however, slavery is considered both unethical and illegal. This implies that A) ethics and laws can be fixed or flexible principles depending on the situation. B) ethics are always fixed but law is always flexible. C) neither laws nor ethics are fixed principles. D) ethics are always flexible, but law is always fixed.
Answer: C
16) The set of forces and conditions that originate with global suppliers, distributors, customers, and competitors and affect an organization's ability to obtain inputs and dispose of its outputs is the ________ environment. A) demographic B) legal C) task D) societal
Answer: C
17) Stockholders are interested in the way that a company operates because they A) supply the company's raw materials. B) want to do what is morally right. C) want to maximize the return on their investment. D) need to minimize the company's reputation.
Answer: C
18) The stakeholder group with the most responsibility for deciding the goals of the organization is the A) stockholders. B) customers. C) managers. D) working-level employees.
Answer: C
20) Global Blenders sells goods and services that other companies offer but does not provide any organization with the input resources needed to produce goods and services. Based on this information, we can thus say that Global Blenders is a A) supplier, not a competitor. B) competitor, not a distributor. C) distributor, not a supplier. D) supplier, not a distributor.
Answer: C
26) Which of these sayings is a reflection of the moral rights rule? A) Act first and ask questions later. B) Do the greatest good for the greatest number of people. C) Do unto others as you would have them do unto you. D) Do nothing that would embarrass the company if news of it became public.
Answer: C
28) One managerial implication of the justice model is that managers should base their decisions on A) whatever stockholders want because stockholders own the company. B) what provides the maximum benefit to the most stakeholders. C) whatever promotes a fair distribution of outcomes to stakeholders. D) a consensus of local, national, and international opinion.
Answer: C
30) When a company contracts with suppliers in other countries to make the various inputs that go into its products or to assemble the final products to reduce costs, ________ occurs. A) inverted sourcing B) power distance C) global outsourcing D) shared services
Answer: C
35) Which of these approaches could help a company be more responsive to its customers? A) Focus on the most profitable customers and give them special benefits. B) Exploit opportunities by finding large companies who are interested in becoming customers. C) Segment the customer base into distinct groups, and figure out how to appeal to each group. D) Avoid threats by focusing on customers' enduring tastes and needs.
Answer: C
41) Within an industry, the existing economies of scale, brand loyalties, and government regulations that impede access to the task environment create A) global outsourcing. B) power distance. C) barriers to entry. D) barriers to exit.
Answer: C
43) In a task environment where there are few competitors, it is A) harder to reach economies of scale. B) harder to create brand loyalty. C) easier to obtain customers. D) harder to keep prices high.
Answer: C
44) People in a particular country may automatically behave ethically because they have internalized values and norms that specify how they should behave in certain situations. This is an example of which code of ethics? A) professional ethics B) individual ethics C) societal ethics D) organizational ethics
Answer: C
46) Which of the following are the result of differences in personalities, values, and attitudes? A) societal ethics B) occupational ethics C) individual ethics D) organizational ethics
Answer: C
47) Family, friends, personality, and experience are sources of ________ ethics. A) societal B) occupational C) individual D) organizational
Answer: C
80) Evan's boss tells him, "Diversity training is nice, but I just don't think we can afford it this year." Based on what you have read about diversity in the workforce, which would be the best response for Evan to make? A) "If employees believe that someone discriminated against them, they will most likely look for work elsewhere, so the problem will take care of itself." B) "If the upcoming merger goes through, we won't be responsible for diversity problems that happened before the merger. Maybe we don't need training now." C) "Diversity-related lawsuits can cost more than $100 million to settle and attract negative attention in the media. I don't think we should take that risk." D) "Let's find the handouts from the last diversity training and repurpose them into memos to remind our employees of the goals in an economical way."
Answer: C
80) Jessica is moving to another country to manage a call center for her employer. The country she is moving to has low power distance. Which of these situations is Jessica most likely to discover in this new country? A) rudeness and insubordination among the employees who report to her B) CEOs who make dozens or hundreds of times as much as the average worker makes C) many and varied social welfare programs, such as childcare assistance and subsidized doctor visits D) fear and nervousness among the employees who report to her
Answer: C
82) Betty works in a software firm as a programming officer. During her appraisal, Ben, the floor manager, asks for sexual favors from Betty in return for her promotion and pay raise. Which form of sexual harassment has occurred? A) hostile work environment B) accommodative approach C) quid pro quo D) whistleblower approach
Answer: C
86) Adam says, "In my country, we put an emphasis on getting things done properly. We say, 'Fall seven times, get up eight.'" A society that emphasizes this attitude has A) low power distance B) high power distance C) long-term orientation D) short-term orientation
Answer: C
88) Which of the following is a part of developing and clearly communicating a sexual harassment policy endorsed by top management? A) Ensure that alleged harassers are represented by company lawyers. B) Provide only a few examples of types of harassment behavior because it can lead to poor morale. C) Develop a procedure for employees to use to report instances of harassment. D) Provide little discussion of the disciplinary actions due to possible lawsuits.
Answer: C
14) Which of the following is part of an organization's task environment? A) culture B) economy C) politics D) competition
Answer: D
14) Which of the following statements about ethics and law is true? A) Both ethics and law are fixed principles. B) Ethics are fixed, but law is flexible. C) Ethics are flexible, but law is fixed. D) Neither ethics nor laws are fixed principles.
Answer: D
16) The people and groups that supply a company with its productive resources, and thus have a claim on and a stake in the company, are known as A) community members. B) individual rights holders. C) claimants. D) stakeholders.
Answer: D
19) Golden Lumber Inc. sees its profits drop during a recession. To benefit stockholders and to make the company more attractive to potential new stockholders, Golden decides to reduce costs. Which stakeholder group is probably most adversely affected by this cost cutting? A) board of directors B) customers C) managers D) employees
Answer: D
20) Important issues concerning product quality and safety specifications are governed by the contracts a company signs with its A) government inspectors. B) senior supervisors. C) human resources division. D) suppliers and distributors.
Answer: D
21) The most critical stakeholder group is often the A) stockholders. B) managers. C) employees. D) customers.
Answer: D
23) To help managers and employees make ethical decisions and behave in ways that benefit their stakeholders, they can use four ethical rules or principles to analyze the effects of their business decisions on stakeholders, the ________ rules. A) utilitarian, moral choice, justice, and practical B) utilitarian, moral rights, justice, and existentialist C) fairness, moral choice, justice, and practical D) utilitarian, moral rights, justice, and practical
Answer: D
29) Charlotte, a vice president at a tool-and-die manufacturer, wants to outsource the company's manufacturing. Which of these actions should Charlotte take to accomplish that goal? A) Limit outsourcing to countries where people speak the same language her management team does. B) Balance considerations of negative publicity, competition between suppliers, and client education. C) Focus on price because that is customers' sole concern. D) Balance considerations of price, quality, reliability, and speed.
Answer: D
30) When a manager has no hesitation about communicating to people outside the company regarding a decision made because the typical person in a society would think it is acceptable, this logic is explained by the ________ rule. A) justice B) moral rights C) utilitarian D) practical
Answer: D
31) The practical rule states that an ethical decision A) considers people, property, and environment equally. B) produces the greatest good for the most stockholders. C) punishes the dishonest and praises the honest. D) is one that can be communicated with no reluctance.
Answer: D
32) Danika, a board member for a medium-sized corporation, faces an ethical dilemma. She is unsure whether the board should fire senior employees who have violated rules or merely discipline those employees but keep them on staff to avoid potentially harmful publicity. Danika asks herself, "Would my family members and friends approve of this decision, and am I willing to see the decision communicated to all people and groups affected?" Asking this question is part of the ________ rule. A) justice B) moral rights C) utilitarian D) practical
Answer: D
42) An example of how societal ethics vary among societies might be how they view A) murdering a boss. B) bombing a competitor's factory. C) missing a meeting. D) bribing a public official.
Answer: D
43) Standards that govern how members of a particular community deal with each other in matters involving issues such as fairness, justice, poverty, and the rights of the individual are ________ ethics. A) fundamental B) professional C) individual D) societal
Answer: D
78) Which of these statements accurately reflects the results of research on diversity in the workplace? A) Over time at a company, disparity "mountains" become "molehills" as a more diverse group of individuals win promotions to managerial roles. B) Managers have an ethical and financial duty to maintain disparities in treatment due to irrelevant distinctions such as race and diversity. C) As most people would expect, minor disparities related to race and gender make little difference in the long run as to the number of female and male managers at a company. D) Over time, a small but favorable bias to one gender, race, or ethnicity can have significant impacts on who gets promoted to management.
Answer: D
81) The degree to which people in a society accept the idea that inequalities in the well-being of its citizens are due to differences in people's physical and intellectual capabilities is known as A) individual power. B) power philosophy. C) independence power. D) power distance.
Answer: D
84) Alexandra, a manager, is in a work environment that she finds personally offensive because of her gender. She wants to talk with the director of human resources. Which of the following phrases should she use to explain to the director what is taking place? A) "a Sarbanes-Oxley violation" B) "a crack in the glass ceiling" C) "quid pro quo harassment" D) "a hostile work environment"
Answer: D
85) Which of the following statements best defines uncertainty avoidance? A) It is the belief that inequalities are due to differences in physical and intellectual capabilities. B) It is a worldview that subordinates the individual to the goals of the group. C) It is behavior considered important by most members of a group or an organization. D) It is the degree to which societies tolerate differences in personal beliefs and actions.
Answer: D
87) Junko, a sales manager, is about to emigrate to a country where people tend to emphasize "living for the moment." A more formal name for this cultural emphasis is A) high power avoidance. B) low power avoidance. C) long-term orientation. D) short-term orientation.
Answer: D
1) Customers are stakeholders of an organization, but managers are not.
Answer: FALSE
1) When new competitors enter an industry, prices in the industry typically increase.
Answer: FALSE
10) Societies that are high on uncertainty avoidance, such as the United States, value diversity and tolerate differences between people in their actions.
Answer: FALSE
2) The greater the economies of scale of existing organizations, the lower are the barriers to entry for new competitors.
Answer: FALSE
2) Under the utilitarian rule, an ethical decision is one that best maintains and protects the fundamental rights and privileges of the people affected by it.
Answer: FALSE
3) Most profit-oriented organizations are threatened during economic downturns, but not-for-profit organizations tend to flourish.
Answer: FALSE
4) While the typical organization in the United States emphasizes the importance of the group, the typical organization in Japan emphasizes the importance of the individual.
Answer: FALSE
5) A shift in the age distribution of the population of the United States is an example of a sociocultural force that affects organizations in the United States.
Answer: FALSE
6) A government imposes tariffs on imports to protect its industries and workers from inflation.
Answer: FALSE
6) The term "diversity" refers to differences in gender and age, but not to those in sexual orientation.
Answer: FALSE
7) Governments of countries that resort to raising tariff barriers ultimately increase employment.
Answer: FALSE
8) The norms of a society are written rules of codes of conduct that tell people how they are supposed to act in given situations.
Answer: FALSE
9) In a society, a folkway violation can lead to serious retribution.
Answer: FALSE
9) Managers can promote the effective management of diversity through the performance of interpersonal and decisional roles, but not through informational roles.
Answer: FALSE
10) Although a slight bias toward a particular group can seem unimportant, it can lead to very large differences between groups over time.
Answer: TRUE
3) From a moral rights perspective, managers should compare alternative courses of action on the basis of how each will affect the rights of each stakeholder group.
Answer: TRUE
4) The practical rule ensures that managers are taking into account the interests of all stakeholders.
Answer: TRUE
5) The ethics of the top managers of an organization shape that organization's code of ethics.
Answer: TRUE
7) According to the federal Glass Ceiling Commission Report, African Americans have the hardest time being promoted.
Answer: TRUE
8) The increasing racial and ethnic diversity of the workforce and the population as a whole underscores the importance of effectively managing diversity.
Answer: TRUE
