mgt444 exam2

Background screening is an unprofitable business. a. True b. False

False

One of the fortunate things about ethical issues in the global market is that they do not affect domestic operations. a. True b. False

False

The best protection employers can offer is to establish a zero-tolerance policy toward workplace violence against or by their employees. a. True b. False

True

When no one takes responsibility for adverse environmental effects ____________ occurs. a. tragedy of commons b. toxic waste c. air pollution d. deforestation

a. tragedy of commons

Lobbying organizations that represent the collective business interests of the United States are called a. umbrella organizations. b. trade associations. c. labor unions. d. company lobbying.

a. umbrella organizations.

Words that are inherently vague, without being misleading are referred to as a. weasel words. b. mildly deceptive. c. perceptively ambiguous. d. intentionally ambivalent.

a. weasel words.

The process of influencing public officials to promote or secure the passage or defeat of legislation is known as a. bribery. b. activism. c. lobbying. d. suffrage.

c. lobbying.

The Foreign Corrupt Practices Act a. governs the operations of foreign MNCs in the United States. b. makes it illegal to make any type of payment to a foreign citizen for the purpose of doing business. c. makes it illegal for the representative of an American corporation to offer or pay officials of foreign governments for the purpose of getting or maintaining business. d. makes it illegal for American government officials to accept bribes from foreign nationals.

c. makes it illegal for the representative of an American corporation to offer or pay officials of foreign governments for the purpose of getting or maintaining business.

If the Children's Advertising Review Unit (CARU) cannot get advertisers to modify their campaigns, CARU must let the matter drop with no further action. a. True b. False

false

Individuals are less restricted in their contributions to political candidates than are PACs. a. True b. False

false

Integrity tests are known as the father of the polygraph. a. True b. False

false

Integrity tests, unlike the polygraph, are not subject to legal constraints on their use. a. True b. False

false

It is usually easy to assess the true motives behind businesses' giving. a. True b. False

false

Labor unions have vigorously pursued civil liberties for employees in the workplace, but have not had much success. a. True b. False

false

Leadership PACs are connected PACs. a. True b. False

false

Like most activist groups, the environmental interest groups have had little success dealing with business. a. True b. False

false

Lobbying takes place only at the federal government level. a. True b. False

false

Lobbyists are affectionately known as "influence peddlers." a. True b. False

false

Lobbyists are generally interested in the common good. a. True b. False

false

MNCs often pay their employees in underdeveloped countries less than the average local wage. a. True b. False

false

Modern polygraph machines and techniques have benefited from significant advances in technology, and are much more reliable than earlier methods of lie detection. a. True b. False

false

Most of the ethical problems that arise in international markets are very different from the moral issues encountered in their home countries. a. True b. False

false

OSHA's budget has generally been tight, but adequate to fully carry out its mission. a. True b. False

false

One of the most direct ways in which the government influences business is through transfer payments. a. True b. False

false

One recommendation for dismissing employees is to fire employees in common work areas. a. True b. False

false

Outsourcing has invariably provided excellent results for the companies utilizing that strategy. a. True b. False

false

PACs are uniformly well thought of in American society. a. True b. False

false

Recent Supreme Court decisions have restricted the activity of PACs a. True b. False

false

Responsibility is considered a standard of excellence in corporate community involvement. a. True b. False

false

Sexual references in advertising create more of a backlash today than they did two or three decades ago. a. True b. False

false

Strategic philanthropy is when businesses give indiscriminately to many causes. a. True b. False

false

Studies of whistle-blowers indicate that many are praised by their peers and managers, and often receive promotions for their actions. a. True b. False

false

Targets of comparative advertising have no recourse if they think their competition has gone too far. a. True b. False

false

The Alien Tort Claims Act has recently been interpreted by the U.S. Supreme Court to apply not only within the U.S., but outside it as well. a. True b. False

false

The Consumer Product Safety Commission is an independent laboratory that has power of persuasion only. a. True b. False

false

The False Claims Act is relatively new legislation, passed in response to the scandals of Enron, WorldCom, and others. a. True b. False

false

The Occupational Safety and Health Administration (OSHA) has had more than enough resources to accomplish its mission since it was formed. a. True b. False

false

The company's overriding concern after making the decision to close a plant should be for the firm to move as quickly as possible. a. True b. False

false

The concept of due process is a basis for the employment-at-will doctrine. a. True b. False

false

The consumer movement is generally traced back to a single cause or event, although the specific incident varies from author to author. a. True b. False

false

The debate over product liability law continues. a. True b. False

false

The effects of advertising have clearly had a net negative effect on society. a. True b. False

false

The effects of advertising have clearly had a net positive effect on society. a. True b. False

false

The level of government regulation of business has always been low. a. True b. False

false

The main reason for global warming is overpopulation. a. True b. False

false

The major reason that health and welfare is one of the largest categories of business giving is the huge amount donated to programs for needy children. a. True b. False

false

The meaning of product quality is uniform to all. a. True b. False

false

The monetary policy set by the Federal Reserve System is completely independent of the influence of other branches of government. a. True b. False

false

The money that PACs donate to political candidates has brought about great benefit to the political system. a. True b. False

false

The new social regulation focuses on businesses' impacts on other businesses. a. True b. False

false

The origin of consumer activism can be traced back to the late 1700s, to the Boston Tea Party. a. True b. False

false

The relationship between government and business has become adversarial, but is improving. a. True b. False

false

The standard of absolute liability is less demanding than that of strict liability. a. True b. False

false

The state laws that address drug testing usually ban them altogether. a. True b. False

false

Tobacco companies no longer advertise tobacco products in a way to appeal to children. a. True b. False

false

Today businesses do not bother with sustainability. a. True b. False

false

Traditionally, the Food and Drug Administration's primary concern has been the "War on Drugs." a. True b. False

false

Use of the polygraph has been banned in virtually all situations. a. True b. False

false

When providing loan guarantees for business, the government actually transfers the money to the business. a. True b. False

false

Whistle-blowing is primarily a due process issue. a. True b. False

false

Workplace violence is a rare occurrence in the United States. a. True b. False

false

the long term effects of indoor air pollution include irritation of the eyes. a. True b. False

false

The ethical theory based on the concept of duty that states that firms have a responsibility to comply with the terms of the sale, inform the customer about the product, not misrepresent anything, and not coerce the customer is a. contractual theory. b. due care theory. c. social costs view. d. caveat emptor.

contractual theory.

The public and government use all of the following methods of influencing each other except a. politicking. b. voting. c. forming special-interest groups. d. coercion.

d. coercion.

When a firm advocates for its own special interest, it is a. acting as an umbrella organization. b. representing its trade association. c. harming the labor union. d. company lobbying.

d. company lobbying.

According to the CECP, motivations for giving include all the following except a. charitable. b. commercial. c. community investment. d. competitiveness.

d. competitiveness.

Hazardous wastes can be generated by manufacturing processes or they can simply result from discarded commercial products, like cleaning fluids or pesticides. a. True b. False

true

Health and human services are critical to the well-being of any community. a. True b. False

true

In addition to being a leading cause of pollution when used, fossil fuels are also often associated with armed conflict. a. True b. False

true

In many ways the most controversial aspect of the government/business relationship is regulation. a. True b. False

true

Industrial waste, urban and agricultural runoff, and overharvesting are forms of water pollution. a. True b. False

true

Involving two or more cultures in ethical issues makes their resolution much more difficult. a. True b. False

true

Keeping people informed is an important social goal of the government. a. True b. False

true

Leadership is a standard of excellence in Corporate Community Involvement. a. True b. False

true

MNCs based in the United States and in the European Union have played a key leadership role in world affairs. a. True b. False

true

Making profits and addressing social concerns are not mutually exclusive. a. True b. False

true

Managers of a business can actually be convicted of murder for violations of safety standards. a. True b. False

true

Many companies are willing to give employees time to engage in and support community projects. a. True b. False

true

Many government regulations over business have been created by the efforts of special interest groups. a. True b. False

true

Market share liability is rarely used today due to the absence of punitive damages. a. True b. False

true

Monitoring the company's community involvement projects entails making adjustments when needed. a. True b. False

true

Most bad reasons for firing employees are already illegal. a. True b. False

true

Most consumers today understand that advertising attempts to persuade them. a. True b. False

true

Newer social regulations cover business practices in all industries. a. True b. False

true

No matter how careful business is regarding the safety of its products, product liability suits are inevitable. a. True b. False

true

Not telling the whole truth in advertisements is a widely used practice called concealing facts. a. True b. False

true

Obesity researchers say they have data proving that the most sugary, calorie-laden breakfast cereals are marked to children most aggressively. a. True b. False

true

One concern about product liability is the size of the financial awards won in court. a. True b. False

true

One effective strategy used by the NRA was its shutting down of scientific studies involving gun injuries. a. True b. False

true

The opposite of cultural relativism is ethical imperialism. a. True b. False

true

The ozone layer is in depletion. a. True b. False

true

The Federal Packaging and Labeling Act of 1967 is administered by the a. Federal Trade Commission. b. Consumer Products Council. c. Interstate Commerce Commission. d. Federal Drug Administration.

a. Federal Trade Commission.

The top PAC contributor during 2015-2016 was: a. Honeywell International b. Teamsters. c. Service Employees International Union. d. Lockheed Martin.

a. Honeywell International

Fund-raising efforts by large non-profit organizations like United Way, who in turn donate funds to specific causes, are called a. federated drives. b. consolidated campaigns. c. multi-gift campaigns. d. umbrella drives.

a. federated drives.

Puffery is another way of saying that a statement is an exaggeration that uses a. general superlatives. b. ambiguous praise. c. vague commendations. d. special terminology.

a. general superlatives.

The father of the consumer movement is a. Ralph Nader. b. Dan Murtaugh. c. Michael Moore. d. Richard Nixon.

a. Ralph Nader.

Educational recipients of giving include each of the following except a. Student matching gifts b. Capital grants including endowments c. Departmental research grants d. Scholarships and fellowships

a. Student matching gifts

Which of the following is true about the average whistle-blower? a. They are more highly paid than inactive observers. b. They have lower job performance reviews than inactive observers. c. They are less likely to hold supervisory or professional status than inactive observers. d. They are more likely to be single than inactive observers.

a. They are more highly paid than inactive observers.

Government regulation generally arises out of some type of market failure. a. True b. False

a. True

Economic integration of many formerly national economies into one worldwide economy is called a. globalization. b. world-system theory. c. capitalization. d. material diversification.

a. globalization.

The process of mobilizing individual citizens who might be most directly affected by legislative activity to political action is called a. grassroots lobbying. b. astroturf lobbying. c. cyberadvocacy. d. company lobbying.

a. grassroots lobbying.

A mixture of wet and dry deposited material from the atmosphere causing higher than normal amounts of nitric and sulfuric acids is a. acid rain. b. smog. c. ozone impact. d. waste deposits.

a. acid rain.

Information that provides potential purchasers with enough information to make the best choice among the options available is a. adequate. b. ambivalent. c. minimal. d. realistic.

a. adequate.

The volume and intensity of use that can be sustained in a particular place and time is called a. carrying capacity. b. load factor. c. sustainability. d. life threshold.

a. carrying capacity.

The direct linking of a business's product or service to a specified charity is a. cause-related marketing. b. a public purpose partnership. c. cause branding. d. a joint venture.

a. cause-related marketing.

The current legal view of "let the seller beware" is a. caveat vendor. b. e pluribus unum. c. norvus ordo seclorum. d. caveat emptor.

a. caveat vendor.

Current standards for SA800 include all the following except a. certifications. b. remuneration. c. management systems. d. child labor.

a. certifications.

Information that is direct and straightforward, that is not deceptive or manipulative is a. clear. b. concise. c. convincing. d. creative.

a. clear.

Which of the following is not a principle that should guide corporate decision-making about the collection and use of Employee information? a. companies should base their information policies on FBI procedures that have stood the test of time. b. companies should allow employees to correct any information that is inaccurate. c. when collecting information, it should only be used in ways that are appropriate. d. companies should collect only that employee information that is absolutely necessary.

a. companies should base their information policies on FBI procedures that have stood the test of time.

The practice of directly contrasting a firm's product with the product of a competitor is called a. comparative advertising. b. puffery. c. the taste test approach. d. denigration.

a. comparative advertising.

International markets must be pursued if firms want to remain a. competitive. b. ethical. c. free from corruption. d. legitimate.

a. competitive.

Which of the following is not a standard of excellence by which corporate community involvement should be judged? a. crisis management b. accountability c. infrastructure d. measurement

a. crisis management

The initial part of the total quality management process is to a. define quality in terms of customer expectations and requirements. b. develop standards and specifications for quality. c. design efficient production processes. d. develop customer satisfaction surveys.

a. define quality in terms of customer expectations and requirements.

Air pollution leads to all of the following except a. deforestation b. acid rain. c. global warming. d. smog.

a. deforestation

Which of the following is not a way in which companies can benefit from volunteer programs? a. developing strong ties with local government officials b. developing employee skills c. recruiting and retaining employees d. improving the company's reputation

a. developing strong ties with local government officials

When a business assumes an advocacy role for its interests, it is a. doing what is normal and expected. b. breaking the law. c. operating at the trade association level. d. allowing the government to influence it.

a. doing what is normal and expected.

Most Congressional legislation before the 1950s that affected business was a. economic in nature. b. social regulation. c. aimed at protecting individuals' rights. d. to protect consumers' privacy.

a. economic in nature.

One approach to resolving air pollution problems, intended to reduce a particular pollutant over an entire industrial region by treating all emission sources as if they were under one bubble is called a. emissions trading. b. blanket controls. c. comprehensive emissions regulation. d. the clean air provision.

a. emissions trading.

Community involvement focuses on the contribution of a. employee time and talent. b. financial resources. c. gifts in kind. d. used equipment.

a. employee time and talent.

Enterprise rights are derived from a. employer promises. b. labor demands. c. negotiated contracts. d. the labor market.

a. employer promises.

The idea that the relationship between a worker and employer is voluntary and can be terminated at any time, by either party, is the a. employment-at-will doctrine. b. due process principle. c. corporate governance system. d. arbitrary employment doctrine.

a. employment-at-will doctrine.

A measure of disorder of energy, indicating its unavailability for recycling for the same use, is a. entropy. b. dissolution. c. atrophy. d. declination.

a. entropy.

The position that advocates that an MNC follow the host country's ethical standards is called a. ethical relativism. b. ethical egoism. c. ethical imperialism. d. ethical hegemony.

a. ethical relativism.

Monitoring of employees in the workplace a. has become the norm in businesses today. b. is driven by concerns over workplace violence. c. requires the express consent of employees. d. is done primarily through video cameras.

a. has become the norm in businesses today.

The inability of humans and nature to restore environmental conditions to a previous state within a relevant time frame is a. irreversibility. b. destruction. c. the point of no return. d. imminent domain.

a. irreversibility.

The peer review panel a. is typically well-versed in company culture. b. is made up of senior managers from the company's headquarters. c. is housed in the legal department. d. is typically not well trusted within an organization.

a. is typically well-versed in company culture.

Arguments in favor of bribery include a. it's necessary for profit. b. Nobody does it. c. they are forms of wages. d. they are not expected.

a. it's necessary for profit.

The driving force behind guidelines for product liability is which of the following? a. legal responsibility b. selling products c. ethical reasoning d. immoral people

a. legal responsibility

Which of the following is not a method that the government uses to influence business? a. lobbying b. taxation c. regulation d. industrial policy

a. lobbying

Key elements of corporate political disclosure and accountability include all of the following except a. lobbying. b. disclosure. c. policies. d. oversight.

a. lobbying.

The effects on employees of being monitored include a. low morale. b. decreased productivity. c. a sense of job security. d. distrust of co-workers.

a. low morale.

Major strategies MNCs may use to conduct global business, but still maintain an ethical sensitivity include all of these except: a. modify or redesign products. b. link ethics with global strategy. c. suspend business activities in certain countries. d. conduct ethical audits.

a. modify or redesign products.

A market in which the economies of scale are so great that the largest firm has the lowest costs and is able to drive out competitors is called a(n) a. natural monopoly. b. market failure. c. externality. d. deregulated industry.

a. natural monopoly.

Customer service is provided by all of the following except? a. passing the buck b. offices of consumer affairs c. warranties d. money back guarantees

a. passing the buck

With respect to service, consumers are concerned with which of the following? a. performance b. building time c. provider attributes d. durability

a. performance

The biggest reason for performing drug tests is to a. protect lives. b. protect assets. c. increase customer confidence. d. increase company profits.

a. protect lives.

The act of governing or bringing under the control of law or constituted authority is called a. regulation. b. despotism. c. central planning. d. dictatorship.

a. regulation.

The Warranty Act a. sets standards for what must be contained in a warranty and ease with which consumers must be able to understand it. b. says that any unconditional assurance must be promoted as a full warranty. c. says that full warranties do not have to include repair. d. says that shipping charges do not have to be included in a full warranty.

a. sets standards for what must be contained in a warranty and ease with which consumers must be able to understand it.

OSHA's mission encompasses a. setting and enforcing standards. b. providing training, outreach, and education. c. promoting employer/employee cooperation. d. establishing partnerships.

a. setting and enforcing standards.

One recommendation to make cyberadvocacy more effective is for advocates to a. social media. b. wireless internet. c. smartphones and tablets. d. creation of apps.

a. social media.

Governmental regulations that seek to further societal objectives are examples of a. social regulation. b. economic regulation. c. environmental control. d. central planning.

a. social regulation.

An approach by which corporate giving is designed in a way that best fits with the firm's overall mission and goals is called a. strategic philanthropy. b. mission-driven giving. c. goal-directed philanthropy. d. directed giving.

a. strategic philanthropy.

The legal principle that anyone in the value chain of a product is liable for harm caused to the user if the product as sold was unreasonably dangerous is a. strict liability. b. absolute liability. c. relative liability. d. market share liability.

a. strict liability.

Universities do more lobbying when congressional appropriations committee members serve the districts in which they are located. This targeted lobbying is: a. successful b. unsuccessful. c. mixed. d. untested.

a. successful

Plot placement is a response to a. the TiVo effect. b. consumer reports. c. age compression. d. self-regulatory guidelines.

a. the TiVo effect.

All of the following are key elements that comprise the whistle-blower process except a. the arbitrator. b. whistle-blower. c. the act or complaint about which the whistle-blower is concerned. d. the organization against which the complaint is made.

a. the arbitrator.

The good cause norm is the opposite of a. the employment at will doctrine. b. the reason for wrongful discharge. c. the belief that employees should be discharged only for good reasons. d. based on private property rights.

a. the employment at will doctrine.

One of the most used alternative dispute resolution methods is a. the open door policy. b. the suggestion box. c. the complaint box. d. employee complaint hotlines.

a. the open door policy.

Which of the following is not part of the FDA's mission? a. to help identify and develop new foods and drugs b. to support better informed decisions about FDA-regulated products c. to protect the public health d. to enhance oversight of FDA-regulated products

a. to help identify and develop new foods and drugs

What incentives are provided to claimants under the False Claims Act? a. immunity from prosecution b. 15 to 25 percent of the proceeds from any settlement joined by the government c. guaranteed reinstatement and double back pay d. witness protection program

b. 15 to 25 percent of the proceeds from any settlement joined

The Business Roundtable is an association of a. Fortune 500 companies. b. CEOs of leading companies. c. leading consulting firms. d. human resource executives.

b. CEOs of leading companies.

Which is not a Global Compact principle targeted toward businesses' responsibilities for the environment? a. Promote greater environmental responsibility. b. Close the gap between renewable and traditional energy sources. c. Encourage environmentally friendly technologies. d. Support precautionary approach to environmental responsibility.

b. Close the gap between renewable and traditional energy sources.

Which of the following is not a law that addresses information disclosure issues? a. Equal Credit Opportunity Act b. Credit Collection Limitation Act c. Truth-in-Lending Act d. Fair Credit Reporting Act

b. Credit Collection Limitation Act

The fact that a company is responsible for the harm done to customers by its product even if it can show that it did its best according to the state of the art in the industry at that time is called a. strict liability. b. absolute liability. c. historical liability. d. market share liability.

b. absolute liability.

Which of the following is not an action that managers should take when terminating employees? a. Fire employees in a private space b. Email the employee the termination c. Preserve the employee's dignity d. Use transparent criteria for layoffs

b. Email the employee the termination

Negative externalities are the additional costs incurred by business due to the outside regulations placed by the government. a. True b. False

b. False

Our goals for business focus solely on the production and distribution of goods and services. a. True b. False

b. False

Proponents of privatization want the government to be a producer of services. a. True b. False

b. False

The relationship between government and business is limited to the government's influence over business. a. True b. False

b. False

Which country releases 3.3 billion tons of carbon dioxide each year due to deforestation? a. Russia b. Indonesia c. the United States d. less developed countries

b. Indonesia

There has always been a strong reaction in the United States to any form of industrial policy because: a. It reduces the market's efficiency. b. It conflicts with the widely held view of the government's role in the economy. c. Existing attempts to form industrial policies have generally been irrational and uncoordinated. d. Industrial policies violate antitrust legislation.

b. It conflicts with the widely held view of the government's role in the economy.

Which of the following is not a requirement of a due process system? a. It must follow rules and not be arbitrary. b. It must be well documented. c. It must be predictably effective. d. It must be perceived as equitable.

b. It must be well documented.

The most important issue in corporate community involvement is a. crimes or public safety. b. K-12 education. c. housing. d. health and wellness.

b. K-12 education.

The right to be heard was listed as part of the consumer's Magna Carta because a. consumers should have a say in a store's hours of operations. b. Many consumers felt that they could not effectively communicate their desires and grievances to businesses. c. everyone wants to feel that others listen to them. d. because business has refused to listen to customers.

b. Many consumers felt that they could not effectively communicate their desires and grievances to businesses.

Human denial of responsibility for the misuse of the environment is reflected by: a. OPEN b. NIMBY c. BAMA d. CLOSE

b. NIMBY

Lobbying takes place at all of the following levels except a. umbrella organizations. b. PACs. c. trade associations. d. company lobbying.

b. PACs.

The central product of the new breed of lobbyist is a. influence. b. access. c. advice. d. information.

b. access.

Guidelines for performing drug tests on workers or job applicants include all of the following except: a. Tests should be done in a uniform and impartial manner b. Tests should be the highest quality that money can buy c. Companies should provide clear documentation of the reason for the test d. All employees should be informed in advance of the use, misuse, and test policies

b. Tests should be the highest quality that money can buy

To fight for tort reform, the U.S. Chamber of Commerce established: a. The Institute for Tort Reform. b. The Institute for Legal Reform. c. The U.S. Chamber for Tort Reform. d. The American League for Tort Reform.

b. The Institute for Legal Reform.

Arguments against industrial policy include all of the following except a. reduces market efficiency b. The need to rescue "sunset" industries. c. the need to promote "sunrise" industries. d. foreign industrial policy success has been variable.

b. The need to rescue "sunset" industries.

Industrial policy is: a. by default. b. a powerful nonregulating approach by the government to influence business. c. non debatable. d. consistent in each government administration.

b. a powerful nonregulating approach by the government to influence business.

Government intervention in business began with a. opening of settlements. b. a push for tariffs. c. governments giving land grants. d. the creation of the Interstate Commerce Commission.

b. a push for tariffs.

Workers' trust in their employers is a. at an all-time high. b. a reciprocal relationship. c. based on the employee rights movement. d. higher in small companies than in large firms.

b. a reciprocal relationship.

After Citizens United, an explosion of money created: a. a campaign spending system that lets every citizen participate equally with corporations. b. a system that is no holds barred. c. a system that ignores corporate money d. None of these is true.

b. a system that is no holds barred.

Information that communicates truths, and avoids exaggeration and innuendo is a. adequate. b. accurate. c. ascetic. d. antithetical.

b. accurate.

The Alien Tort Claims Act applies to: a. actions that occur on foreign soil. b. actions that occur on U.S. soil. c. actions that occur in the host country where a U.S. firm is based. d. actions that occur in a foreign country where a foreign firm is based.

b. actions that occur on U.S. soil.

Corporations which donate to PACs may encounter. a. leadership problems. b. agency problems. c. coalition problems. d. political problems.

b. agency problems.

Employees might consider their roles in plant closings a. to fight for their jobs. b. an extension of numerous employee rights issues. c. an opportunity to find better employment. d. a chance to form an employee-owned business.

b. an extension of numerous employee rights issues.

An implied warranty is a. available for all new and used products. b. an unspoken promise that there is nothing significantly wrong with the product. c. limited to one year. d. states exactly what is covered and what is not.

b. an unspoken promise that there is nothing significantly wrong with the product.

An OSHA recommendation for preventing workplace violence include all of the following except a. providing safety education. b. arming the workplace. c. secure the workplace. d. Develop policies and procedures covering visits of health care providers.

b. arming the workplace.

Lobbying efforts that do not represent the genuine concerns of the citizens supposedly involved is called a. grassroots lobbying. b. astroturf lobbying. c. cyberadvocacy. d. company lobbying.

b. astroturf lobbying.

The Employee Polygraph Protection Act (EPPA) of 1988 a. requires employee consent before administration of a polygraph test. b. banned most private sector uses of the lie detector. c. allows lie detector tests to be admitted as evidence in cases involving fraud. d. banned all uses of the lie detector.

b. banned most private sector uses of the lie detector.

Business claims that current product liability law suffers from all of the following problems except a. inefficiency. b. bias. c. raising the costs of litigation. d. imposition of a hidden tax on consumers.

b. bias.

The variation of life forming inside a system is a. degradation. b. biodiversity. c. is an indicator of its efficiency. d. salinization.

b. biodiversity.

The practice of offering something in order to gain an illicit advantage is called a. offshoring. b. bribery. c. corruption. d. grease payments.

b. bribery.

One way in which philanthropy can be made strategic is to a. consult with a tax professional to get the maximum deductions. b. bring contribution programs into sharper alignment with business endeavors. c. distribute contributions as widely as possible. d. eliminate contributions to inefficient non-profit organizations.

b. bring contribution programs into sharper alignment with business endeavors.

All of the following groups have criticized MNC labor practices except a. social activist groups. b. church groups. c. labor unions. d. grassroots organizations.

b. church groups.

After the decision to close a plant, management can take all the following actions except a. provide advance notice to the employees or community. b. close cold turkey. c. help the community attract a replacement industry. d. Provide transfer, relocation, and outplacement benefits.

b. close cold turkey.

Government is generally thought to follow the ethic of a. deontology. b. collectivism. c. individualism. d. socialism.

b. collectivism.

Being more systematic about the company's relationship with the community often results in developing a a. community involvement initiative. b. community action program. c. community partnership plan. d. community crisis center.

b. community action program.

After the 1950s, most Congressional legislation that affected business was a. economic in nature. b. concerned largely with the quality of life. c. supportive of business. d. aimed at promoting competition.

b. concerned largely with the quality of life.

Lobbyists often provide all of the following services, except: a. create slick advertisements. b. conduct indirect-mail campaigns. c. provide access to lawmakers. d. draft legislation.

b. conduct indirect-mail campaigns.

Which of the following is not a driver of the quest to improve product and service quality? a. the demands of a competitive marketplace b. cost controls c. an increasingly sophisticated consumer base d. the threat of product liability lawsuits

b. cost controls

Benefits of employee volunteerism include all the following except a. improves morale b. creates quantifiable social impact c. encourages teamwork d. promotes leadership and skill development

b. creates quantifiable social impact

The philosophy of Western industrialized nations and their MNCs includes all of these factors except: a. economic growth. b. decentralization. c. efficiency. d. free trade.

b. decentralization.

Challenges to accomplishing the goals established at COP21 include all of the following except a. pricing carbon b. defining sustainability c. managing policy risk d. deciding the role of natural gas

b. defining sustainability

Under the employment-at-will doctrine, the only illegal reason for firing someone is a. fraud. b. discrimination. c. belonging to a union. d. poor financial performance.

b. discrimination.

One of the ways that the Chamber of Commerce has regained its power is by a. making large campaign contributions on its own behalf. b. dispensing favors to individual businesses that do not want their company name associated with lobbying efforts. c. hiring outside lobbyists to help it attract more members. d. focusing on international trade issues.

b. dispensing favors to individual businesses that do not want their company name associated with lobbying efforts.

The primary focus of the Business Roundtable is a. free trade policies. b. opposing shareholder empowerment. c. the economic well-being of the nation. d. executive compensation.

b. opposing shareholder empowerment.

Community involvement is most commonly manifested through a. donations of money and like-kind gifts. b. donating the time and talents of its employees. c. sponsoring one of its employees for government office. d. beautification projects at the company's place of business.

b. donating the time and talents of its employees.

An umbrella term that encompasses employer screening for suspected substance abuse is a. steroid challenges. b. drug testing. c. illegal substance checking. d. doping.

b. drug testing.

The ethical theory based on the concept of duty that focuses on the relative vulnerability of the customer is a. contractual theory. b. due care theory. c. social costs view. d. caveat vendor.

b. due care theory.

All living and nonliving substances present in a particular place is a(n) a. environment. b. ecosystem. c. ecology. d. habitat.

b. ecosystem.

Standards of excellence in corporate community involvement include all of the following except a. leadership. b. efficiency. c. issues management. d. relationship building.

b. efficiency.

All of the following are in the top ten principles of safety except a. fully investigate product safety incidents. b. encourage customers to try out the product before purchasing it. c. report product safety defects promptly. d. track your product's safety performance.

b. encourage customers to try out the product before purchasing it.

An attempt to assess the underlying moral justifications for corporate actions and the consequent results of those actions are contained in a. social audits. b. ethical impact statements. c. human rights statements. d. environmental impact statements.

b. ethical impact statements.

A guarantee that is explicitly offered at the time of sale is called a(n) a. implicit warranty. b. express warranty. c. traditional warranty. d. extended warranty.

b. express warranty.

Hazardous wastes can include all the following except a. solids. b. food. c. contained gasses. d. sludges

b. food.

In lobbying, a trade association often uses a. written phone banks. b. grassroots lobbying support. c. lagging promotion. d. limited spending.

b. grassroots lobbying support.

Direct costs of regulation are most visible when we look at the number of new agencies created, aggregate expenditures, and a. global influence. b. growth patterns. c. community response. d. resource spending.

b. growth patterns.

The Credit Card Act of 2009: a. has reduced the cost of credit cards. b. has been mostly beneficial to consumers. c. has provided universal opportunity for rate increases. d. has provided availability of cards to young people.

b. has been mostly beneficial to consumers.

The "third sector" is composed of all of the following except a. museums. b. households. c. churches. d. libraries

b. households.

Employer promises that they may not even know they made are called a. inherent intentions. b. implied contracts. c. public policies. d. good faith promises.

b. implied contracts.

Companies can benefit from volunteer programs that they sponsor in all of the ways shown below except a. improving employee skills and training. b. increasing productivity at work. c. encouraging teamwork. d. developing leadership skills.

b. increasing productivity at work.

TQM must emphasize all of the following except? a. leadership b. individualism c. recognition d. communication

b. individualism

Growth of global business as a critical element in the world economy is known as: a. legitimization. b. internationalization. c. market awareness. d. Multinationalism.

b. internationalization.

Precipitation containing harmful amounts of nitric and sulfuric acids a. occurs only in wet forms. b. is called acid rain. c. occurs mostly in rainforests. d. affects only man-made products.

b. is called acid rain.

The second step in managing the performance of a community action program is a. knowing the community. b. knowing the company's resources. c. selecting the resources to use. d. monitor the projects.

b. knowing the company's resources.

Common consumer complaints include all of the following except a. poor quality of products. b. lack of consumer credit. c. high prices. d. misleading packaging or labeling.

b. lack of consumer credit.

Businesses are paying close attention to all of the following green groups except a. consumers. b. legislators. c. employees. d. investors.

b. legislators.

All of the following are reasons that government regulation of business is needed except a. to ensure that customers and employees are treated fairly. b. maintain competitive markets. c. to protect the environment. d. to ensure that customers and employees are not exposed to unreasonable hazards.

b. maintain competitive markets.

The channels through which corporations can make political contributions are. a. limited. b. many and varied. c. difficult to navigate. d. primarily tax loopholes.

b. many and varied.

Selection of projects for a community action program grows out of a. an application process. b. matching community needs with company resources. c. needs identified by board members. d. grassroots lobbying efforts.

b. matching community needs with company resources.

Government attempts to persuade business to act in the public interest are called a. monetary policies. b. moral suasion. c. standard setting. d. transfer payments.

b. moral suasion.

The new free agent workers will be a. highly educated scientists and managers. b. more proactive about their work environments. c. more loyal to good employers than were their predecessors. d. willing to move overseas to pursue good opportunities.

b. more proactive about their work environments.

Which of the following is not an effect of induced costs? a. small businesses may be adversely affected. b. new agencies may be created. c. new investments in plant and equipment may be affected. d. innovation may be affected.

b. new agencies may be created.

Neuromarketers have concluded that the most effective sounds in terms of psychological appeals include all the following except a. babies giggling b. packages being opened c. vibrating cell phones d. soda being popped and poured

b. packages being opened

The Consumer Product Safety Commission works to reduce the risk of harm from consumer products in all of the following ways except a. banning consumer products. b. passing legislation outlawing products. c. obtaining recall of products. d. informing and educating consumers.

b. passing legislation outlawing products.

The principal instruments through which business uses its financial resources to influence government are a. umbrella organizations. b. political action committees. c. trade associations. d. lobbyists.

b. political action committees.

Existing water rendered unusable is a. wasted. b. polluted. c. decayed. d. drossed.

b. polluted.

The question of whether current public functions should be performed by the government or private sector is addressed by a. industrial policy. b. privatization. c. central planning. d. moral suasion.

b. privatization.

The two major classifications of issues in the business/consumer relationship are a. cost and safety. b. product information and the product itself. c. warranties and advertising. d. customer service and product safety.

b. product information and the product itself.

The Children's Television Act was passed to a. prevent violent shows from being broadcast during morning hours. b. prohibit the airing of commercials about products or characters during a show about those products or characters. c. regulate the plotlines of children's shows. d. limit the number of hours children could watch television.

b. prohibit the airing of commercials about products or characters during a show about those products or characters.

Which of the following is not a strategic priority of the Food and Drug Administration? a. regulatory science b. promotion c. safety and quality d. globalization

b. promotion

Regarding the infant formula controversy, Nestlé was criticized for all of these actions except: a. distributing free samples. b. providing purified water with the formula. c. promoting bottle-feeding over breast-feeding. d. the use of so-called "milk nurses."

b. providing purified water with the formula.

An important criticism of total quality management is that it a. tried to do too much. b. quality means different things to different people. c. actually took focus off of the customer. d. focused too much on adherence to standards, taking the enjoyment out of work.

b. quality means different things to different people.

Payment of a bribe implies some type of a. extortion. b. quid pro quo. c. gambling. d. physical harm to the payee.

b. quid pro quo.

What is not part of the waste management mantra? a. reuse b. rehabilitate c. recycle d. reduce

b. rehabilitate

Employee rights can be based on any of the following except a. economic grounds. b. religious grounds. c. legal grounds. d. ethical grounds.

b. religious grounds.

The primary purpose of deregulation is to a. decrease competition in the affected industries. b. remove certain industries from old-line economic regulations. c. protect the natural environment. d. allow natural monopolies to form.

b. remove certain industries from old-line economic regulations.

Which of the following is not impacted by tort risk? a. relocation of a new plant b. selling products c. expanding operations d. introducing a new product

b. selling products

Arguments against privatization include all of these except: a. social goals. b. service provisions. c. public backlash. d. safety concerns.

b. service provisions.

The Worker Adjustment and Retraining Notification Act (WARN) requires firms employing 100 or more workers to notify workers of a large layoff or shutdown at least ____ in advance. a. six months b. sixty days c. one year d. one month

b. sixty days

Global trade is: a. speeding up. b. slowing down. c. doing about the same. d. diminishing exponentially.

b. slowing down.

Negative externalities are often referred to as a. full absorption costs. b. social costs. c. allocated costs. d. environmental costs.

b. social costs.

Private corporations have not had to recognize employee rights because a. they are exempted from doing so by federal law. b. society has honored the corporation's private property rights. c. employees have never demanded them. d. management has been separated from ownership.

b. society has honored the corporation's private property rights.

Rights provided by law are called a. inherent rights. b. statutory rights. c. enterprise rights. d. negotiated rights.

b. statutory rights.

Government payments to industries or groups with special qualifications are called a. transfer payments. b. subsidies. c. loan guarantees. d. moral suasion.

b. subsidies.

All of the following are issues that include an ethical dimension and are national security versus profits issues except a. increasing b. sweatshops c. harboring terrorists. d. mining of the ocean floor.

b. sweatshops

The Food and Drug Administration is part of a. Housing and Urban Development. b. the Health and Human Services Department. c. the Interstate Commerce Commission. d. the Federal Trade Commission.

b. the Health and Human Services Department.

The focus of total quality management programs is a. quality. b. the customer. c. efficiency. d. worker satisfaction.

b. the customer.

One of the few places in which guidelines for the handling and use of information exists is a. the state of Maryland. b. the healthcare field. c. the consumer credit industry. d. Japan.

b. the healthcare field.

Reasons to be concerned about product liability include all of the following except a. the sheer number of cases. b. the number of trial attorneys being licensed. c. the propensity of people to sue when they are unhappy. d. the growing size of financial awards.

b. the number of trial attorneys being licensed.

Most experts say that privacy means a. being able to approve all uses of personal information. b. the right to keep personal affairs to oneself and to know how information about one is being used. c. the right to deny all requests for personal information. d. the right for personal information to not be shared with any users other than the ones that already have access to it.

b. the right to keep personal affairs to oneself and to know how information about one is being used.

Workers' rights provided through union contracts are established a. by law. b. through collective bargaining. c. by the employer. d. within an overarching framework of common law.

b. through collective bargaining.

Which of the following is not a reason that some people want more transparency in corporate philanthropy? a. money belongs to shareholders b. to close tax loopholes c. improve image of philanthropy d. giving is just for glory

b. to close tax loopholes

The dilemma of deregulation is a. to enhance competition within the industry without harming workers' status. b. to enhance competition within the industry without sacrificing applicable social regulations. c. to prevent monopolies without allowing hypercompetition. d. to provide business more freedom without completely abandoning governmental authority.

b. to enhance competition within the industry without sacrificing applicable social regulations.

Lobbying organizations that are composed of many firms in a given industry or line of business are called a. umbrella organizations. b. trade associations. c. labor unions. d. company lobbying.

b. trade associations.

The power of businesses to drive the political agenda in Washington, D.C. is now a. subject to special interests. b. virtually unchecked. c. largely impeded. d. in the government's interest.

b. virtually unchecked.

Ambiguous advertising that leaves it to the viewer to infer the message is the use of a. concealed facts. b. weasel words. c. plot placements. d. exaggerated claims.

b. weasel words.

Which of the following is not a standard of excellence in Corporate Community Involvement? a. strategy b. integration c. financing d. communications

c. financing

Which of the following is a category of top consumer complaints? a. Auto b. Sales c. Airline d. Landlord/Tenant

c. Airline

Which of the following is not on the top ten list of safety principles? a. Build safety into product design. b. Educate consumers about product safety. c. Allow a margin of error for the consumer. d. Learn from your and others' mistakes.

c. Allow a margin of error for the consumer.

Which of the following is not an argument commonly used against bribery? a. Bribes are inherently wrong. b. Bribes create dependence on corrupt individuals. c. Bribes are unfair because foreigners can get them, while U.S. citizens cannot. d. Once bribes start, they never stop.

c. Bribes are unfair because foreigners can get them, while U.S. citizens cannot.

____ was protection for federal employees who expose illegal, corrupt, or wasteful government activities. a. Employment-At-Will Doctrine b. False Claims Act c. Civil Service Reform Act d. Michigan Whistle-Blowers Protection Act

c. Civil Service Reform Act

Which of the following is not an umbrella organization? a. Chamber of Commerce b. National Association of Manufacturers c. Pharmaceutical Research and Manufacturers of America d. Business Roundtable

c. Pharmaceutical Research and Manufacturers of America

The Unilever Sustainable Living Plan includes the following except a. Improving health and well-being. b. Reducing environmental impact. c. Committing to being carbon positive. d. Enhancing livelihoods.

c. Committing to being carbon positive.

The federal government's major body for ensuring that business lives up to its responsibilities is the a. Interstate Commerce Commission. b. Federal Communications Commission. c. Federal Trade Commission. d. Consumer Protection Agency.

c. Federal Trade Commission.

Each of the following suggestions are encouraged for free and open speech in the workplace except a. Invite suggestions from employees b. Actively refute assumptions and myths that discourage communication c. Hesitate and make excuses for not implementing suggestions d. Tailor rewards so that employees share directly in cost savings or sales increases from ideas they offer.

c. Hesitate and make excuses for not implementing suggestions

Of the portion of corporate philanthropy that goes to education, most of donations go to a. executive education programs. b. higher education. c. K-12 education. d. private schools rather than public institutions.

c. K-12 education.

Which of the following is not a problem associated with psychological appeals? a. Products seldom deliver. b. Stir emotions and manipulate consumers. c. Less memorable than functions or features. d. Take advantage of vulnerability.

c. Less memorable than functions or features.

Which of the following is not an activity of the CFPB? a. Taking consumer complaints b. Researching consumer behavior c. Promoting political education d. Restricting unfair, deceptive, or abusive acts or practices

c. Promoting political education

The body of methodologies and techniques for achieving quality that focuses on the number of defects is called a. Seven Standards. b. Six Smith. c. Six Sigma. d. Seven Severance.

c. Six Sigma.

ritics of integrity tests claim each of the following except: a. They are intrusive and invade privacy. b. They are unreliable. c. They are effective when used as part of a screening process. d. They reject many honest candidates.

c. They are effective when used as part of a screening process.

Things to consider before whistle-blowing include all of these except a. Have you identified sources of support? b. Does the disclosure advance public interest? c. Will you remain anonymous at all costs? d. Have you thought about the outcomes?

c. Will you remain anonymous at all costs?

An alternative dispute resolution method that allows the employee to be represented by an attorney in front of a neutral company executive is called a. mediation. b. arbitration. c. a hearing procedure. d. trial by fire.

c. a hearing procedure.

The fact that advertising can increasingly be found everywhere is referred to as a. the consumer culture. b. expanding markets. c. ad creep. d. evolutionary marketing.

c. ad creep.

The traditional term that was used for advertising located in novel locations (now called ad creep) was a. ambiguous advertising. b. stealth marketing. c. ambient advertising. d. undercover promotion.

c. ambient advertising.

After the decision to close a plant has been made, actions that management should take may include all of the following except a. provide advance notice to employees and the community. b. phase out the business gradually. c. announce the decision in the press before telling employees and community leaders. d. help the community attract replacement industry.

c. announce the decision in the press before telling employees and community leaders.

Government intervention in monopolistic industries is often brought about by a. requests from smaller competitors. b. class-action lawsuits. c. anticompetitive practices. d. frequent bankruptcies within the industries.

c. anticompetitive practices.

Studies of financial performance outcomes on political spending a. show a strong correlation between contributions to PACs, and corporate financial performance. b. show a weak correlation between contributions to PACs, and corporate financial performance. c. are inconclusive. d. apply only to political outcomes.

c. are inconclusive.

Which of the following is not a category of recipient to whom corporations often give money? a. education b. arts and culture c. athletic teams d. civic and community activities

c. athletic teams

Business lobbyists do all of the following things for their clients except a. establish communications channels with regulatory bodies. b. protect firms against surprise legislation. c. audit the effects of passed legislation. d. help draft legislation.

c. audit the effects of passed legislation.

The FCPA differentiates between: a. domestic and international disputes b. land ownership and building rental c. bribes and grease payments d. entry fees and corporate filing fees

c. bribes and grease payments

Steps in developing a community action program include all of the following except a. knowing the community. b. knowing the company's resources. c. building bridges to the community. d. monitoring projects.

c. building bridges to the community.

Philanthropy, as it is used in the textbook, means a. donations of corporate employees' time and talents. b. a desire to help mankind by acts of charity. c. business giving of financial resources. d. altruistic acts that benefit all of society.

c. business giving of financial resources.

The purpose of Superfund legislation was to a. identify toxic waste sites. b. eliminate dumping of toxic wastes. c. clean up hazardous waste dumps and spills. d. prevent land degradation.

c. clean up hazardous waste dumps and spills.

Distinct groups or parties that realize they have something in common, so that it makes sense for them to join forces, typically form a. joint ventures. b. partnerships. c. coalitions. d. limited liability corporations.

c. coalitions.

Which of the following industries has not been affected by deregulation? a. financial services. b. trucking c. computer software d. Airline

c. computer software

CERES key drivers include all of the following except a. competition for resources b. economic globalization c. concentrate on industrialized countries d. connectivity and communications

c. concentrate on industrialized countries

The social movement that seeks to augment the rights and powers of buyers in relation to sellers is a. caveat emptor. b. buyer beware. c. consumerism. d. purchaser power.

c. consumerism.

A 2015 Pew research survey found over 50% of respondents thought that the federal government was doing well in all areas except a. responding to national disasters. b. ensuring safe food and medicine. c. corporate bailouts. d. ensuring access to education.

c. corporate bailouts.

The Consumer Product Safety Improvement Act of 2008 does not cover which of the following? a. ATVs b. toy safety c. cotton d. phthalates

c. cotton

The ability of an organization to effectively identify, acquire, foster, and retain loyal profitable customers is a. customer service. b. effective marketing. c. customer relationship management. d. ethical marketing.

c. customer relationship management.

Using the Internet to communicate with grassroots supporters and enable them to contact their legislators is termed a. grassroots lobbying. b. astroturf lobbying. c. cyberadvocacy. d. company lobbying.

c. cyberadvocacy.

Which of the following adds to soil erosion problems and is a major cause of the greenhouse effect? a. ozone depletion b. carbons c. deforestation d. sustainability

c. deforestation

A major cause of the greenhouse effect is a. the price of gasoline. b. ozone depletion. c. deforestation. d. ultraviolet rays.

c. deforestation.

The Food and Drug Administration is involved in the regulation of a. pet food. b. weight loss programs. c. dietary supplements. d. fast foods.

c. dietary supplements.

The reason that the United States government passed antitrust legislation was a. to conform to Adam Smith's economic theory from Wealth of Nations. b. due to lobbying efforts by private citizens' groups. c. due to the anti-competitive practices of some large trusts. d. to restrict competition.

c. due to the anti-competitive practices of some large trusts.

Government regulation of business through the control of economic or market variables is a form of a. negative externality. b. social cost. c. economic regulation. d. indirect cost.

c. economic regulation.

Which of the following is not one of home/host stakeholder pressures? a. culture b. system of government c. economic system d. laws

c. economic system

The Sarbanes-Oxley act applies to: a. contract workers b. self-employed citizens c. employees in publicly held firms d. the unemployed

c. employees in publicly held firms

Anything that is internal or external to an entity is its a. ecology. b. ecosystem. c. environment. d. habitat.

c. environment.

Reports of studies explaining and estimating the ecological ramifications of questionable practices and irreversible uses of resources and proposing detailed, reasonable alternatives to these practices and uses are a. triple bottom line reports. b. social needs statements. c. environmental impact statements. d. engineering assessment studies.

c. environmental impact statements.

National Safe Place is a youth program that does all of the following except a. educating youth about the dangers of running away b. providing safe havens for youth c. establishing after school programs d. helping youth to resolve difficult situations

c. establishing after school programs

Anti Corruption programs have steps including: a. performing drug tests on employees. b. making grease payments. c. establishing hotlines or helplines for all members. d. suspending operations.

c. establishing hotlines or helplines for all members.

The position that advocates that an MNC should continue to follow its home country's ethical standards even while operating in another country is known as a. ethical relativism. b. ethical egoism. c. ethical imperialism. d. ethical hegemony.

c. ethical imperialism.

Legal challenges to the employment-at-will doctrine include all the following except a. public policy exceptions. b. contractual actions. c. firing exceptions. d. breach of good faith actions.

c. firing exceptions.

Which one of the following is not a difference between the old social contract and the new? a. lifetime careers with one employer vs. fewer life careers b. loyalty to employer vs. loyalty to self and profession c. focus on team accomplishments vs. focus on team building d. stable positions vs. temporary assignments

c. focus on team accomplishments vs. focus on team building

Climate change is also known as a. the greenhouse effect. b. waste management. c. global warming. d. global emissions

c. global warming.

The belief that employees should only be discharged for good reasons is the a. justice as a fairness principle. b. employment-at-will doctrine. c. good cause norm. d. sphere of justice principle.

c. good cause norm.

Which of the following is not a role increasing the government's complex relationship with business? a. The government is a major purchaser. b. the government can elevate some businesses while devaluing others. c. government cannot have buying power d. government can create new businesses through subsidization.

c. government cannot have buying power

People who prefer to invest in companies with sustainability programs are known as a. sustainability investors b. power investors c. green investors d. ethical investors

c. green investors

Endangered species are threatened with extinction due to a. ozone depletion b. drought c. habitat destruction d. inside air pollution

c. habitat destruction

Due diligence means that a company a. has done sufficient preparatory work to produce a safe product. b. The company has successfully passed an OSHA safety audit. c. has taken every possible precautionary step possible and followed all industry standards. d. has studied the problem extensively.

c. has taken every possible precautionary step possible and followed all industry standards.

The Golden Rule of Politics is a. do unto others before they do unto you. b. do unto others as you would want done to you. c. he who has the gold, rules. d. do unto others as they would want done to them.

c. he who has the gold, rules.

Which of the following is not a strategy for improving global business ethics? a. use of global codes of conduct b. incorporating ethical dimensions into top level strategic planning processes c. imposing the home country's ethical standards on the host country d. suspension of activities

c. imposing the home country's ethical standards on the host country

Employee ownership of a business whose former owners were considering shutting it down a. almost always results in bankruptcy. b. assures worker/owners continued employment. c. in most cases, results in employees having to take significant wage and benefit reductions to make the business profitable. d. forces workers to think like owners.

c. in most cases, results in employees having to take significant wage and benefit reductions to make the business profitable.

In 2012, the United States' rank in the Corruption Perception Index was: a. First, being least corrupt. b. in the top 10. c. in the top 20. d. at the very bottom.

c. in the top 20.

Business generally follows the ethic of a. deontology. b. collectivism. c. individualism. d. socialism.

c. individualism.

The clash of ethical systems between government and business is centered around a. growth and sustainability. b. economic goals and social welfare. Copyright Cengage Learning. Powered by Cognero. Page 10 c. individualist and collectivist ethics. d. privatization and federalization.

c. individualist and collectivist ethics.

Every form of state intervention that affects industry as a distinct part of the economy is called a. internationalization. b. globalization. c. industrial policy. d. privatization.

c. industrial policy.

Business's response to consumerism over time has been one of a. benign neglect. b. rapid response. c. ineffective action, followed by improved responses. d. extreme care.

c. ineffective action, followed by improved responses.

Cause branding is similar to cause-related marketing, but a. is done with more dissimilar organizations. b. is a more formalized arrangement. c. is a longer term commitment. d. is usually less successful.

c. is a longer term commitment.

Indoor air pollution a. can be cured by using air conditioning. b. is found primarily in less developed countries. c. is becoming an increasing concern because most people spend the majority of their lives indoors. d. is not a significant environmental problem.

c. is becoming an increasing concern because most people spend the majority of their lives indoors.

The National Association of Manufacturers (NAM): a. receives accolades from its small and medium-sized members for focusing on their particular needs. b. advocates for protectionist trade policies. c. is the preeminent U.S. manufacturers association as well as the nation's largest industrial trade association. d. is credited with helping create the gain in manufacturing jobs.

c. is the preeminent U.S. manufacturers association as well as the nation's largest industrial trade association.

The Federal Trade Commission (FTC) a. achieves free and fair complexion in the economy. b. protects misleading practices. c. issues trade regulation rules. d. Monitors competitive practices.

c. issues trade regulation rules.

Which of the following is not a way in which the Consumer Product Safety Commission works to reduce the risk of harm from consumer products? a. developing voluntary standards within an industry b. issuing and enforcing mandatory standards c. lobbying Congress to pass new consumer protection laws d. conducting research on potential product hazards

c. lobbying Congress to pass new consumer protection laws

The American with Disabilities Act (ADA) a. is limited to companies that contract with the federal government. b. makes it illegal to collect information about employees' medical information. c. makes it illegal to base employment decisions on a medical condition that does not impair the person's ability to perform an essential function of the job. d. makes it illegal to base employment decisions on a medical condition.

c. makes it illegal to base employment decisions on a medical condition that does not impair the person's ability to perform an essential function of the job.

Arguments against bribery include all the following except a. you shouldn't compromise your beliefs. b. bribery is illegal in the United States. c. managers can deal with corrupt governments. d. one should take a stand for honesty.

c. managers can deal with corrupt governments.

The primary reason for government regulation of business is a. hypercompetition. b. central planning of the economy. c. market failure. d. lobbying efforts by business.

c. market failure.

Grease payments are all of following except a. monies given to minor officials b. get goods through red tape c. monies given to high ranking officials d. small sums of money

c. monies given to high ranking officials

Which of the following is not an example of corruption? a. bribery b. paying for political favors c. negotiating for the lowest price on a contract d. paying protection money to the police

c. negotiating for the lowest price on a contract

Use of plot placements involve a. awards given for extraordinarily poor advertisements. b. advertising ideas taken from the storylines of books or movies. c. placement of products part of the storyline of a television show. d. ideas for new products taken from books.

c. placement of products part of the storyline of a television show.

Which of the following is not a problem central to the toxic substances issue? a. not being aware of the effects b. the need for daily reports to the EPA c. population increase d. toxic substances can be associated with industrial accidents

c. population increase

Six Sigma practitioners believe in fixing the ____ rather than the ____. a. practice; theory b. product; worker c. process; product d. worker; customer

c. process; product

The primary responsibility for product safety lies with the a. consumer. b. government. c. producer. d. Consumer Product Safety Commission.

c. producer.

The Tylenol case in the 1980s, in which capsules were injected with cyanide, is an example of a. product extortion. b. product liability. c. product tampering. d. product packaging.

c. product tampering.

Ethical issues in the global environment include all of these except: a. product safety. b. human resource management. c. production efficiency. d. advertising practices.

c. production efficiency.

Modern goals for business include all of the following except a. safe working environments. b. fair pay. c. promoting social welfare. d. equal employment opportunities.

c. promoting social welfare.

All of the following are proposed standards for the SA8000 program, to improve sweatshop conditions, except a. allowing workers to form unions. b. prohibiting corporal punishment. c. providing retirement benefits. d. limiting work to a maximum of 48 hours per week.

c. providing retirement benefits.

Which of the following is not an SA8000 standard proposed to improve sweatshop conditions? a. prohibition on employing workers under a certain age b. provision of a safe and healthy working environment c. provision of educational opportunities for workers d. prohibition of discriminatory practices

c. provision of educational opportunities for workers

The two central issues of goods and services are a. price and warranties. b. reliability and durability. c. quality and safety. d. value and function.

c. quality and safety.

Businesses have responded to consumer activism with all of the following efforts except a. toll-free hotlines. b. user-friendly Web sites. c. rebate and discount programs. d. consumer representatives.

c. rebate and discount programs.

Government influences business through all of the following nonregulatory methods except a. being a major employer. b. being a standard setter. c. requiring equal employment opportunities be granted to job applicants. d. providing transfer payments.

c. requiring equal employment opportunities be granted to job applicants.

Which of the following is not one of the rights in the consumer's Magna Carta? a. right to safety b. right to be informed c. right to be protected d. right to choose

c. right to be protected

The Privacy Act of 1974 a. was repealed by the USA Patriot Act of 2001. b. restricts the use of personal information by private companies. c. set controls on the right of the government to collect, use, and share data about individuals. d. set time limits for how long personal data could be maintained by government and private companies.

c. set controls on the right of the government to collect, use, and share data about individuals.

The ethical theory based on the concept of duty that suggests that if a product causes harm, the firm should pay the costs of any injury is a. contractual theory. b. due care theory. c. social costs view. d. caveat vendor.

c. social costs view.

Which of the following is not a dimension of quality listed in the textbook? a. performance b. durability c. status d. aesthetics

c. status

Requirements of a due process system include all of the following except a. institutionalization. b. ease of use. c. subject to review and appeal. d. applicable to all employees.

c. subject to review and appeal.

Business that meets the need of the present without compromising the ability of future generations to meet their own needs is following principles of a. endurance. b. long-termism. c. sustainability. d. ecological determinism.

c. sustainability.

The prevention of solar heat absorbed by our atmosphere from returning to space is known as a. ozone depletion. b. deforestation. c. the greenhouse effect. d. acid rain.

c. the greenhouse effect.

The exception that protects employees from being fired because they refuse to commit crimes or take advantage of privileges to which they are entitled by law is a. common law. b. the employee protection principle. c. the public policy exception. d. the fair employment loophole.

c. the public policy exception.

The due-process resistance to drug testing is based on a. protecting employees' constitutional rights. b. the poor conviction record of drug-related crimes in the court systems. c. the questionable accuracy of the tests. d. potential harm to the accuser.

c. the questionable accuracy of the tests.

The new social contract is placing on employees more responsibility for a. planning their retirement funding. b. career management. c. their own successful career/job and future in the employment relationship. d. their co-workers' advancement in the organization.

c. their own successful career/job and future in the employment relationship.

The point at which a particular phenomenon suddenly begins to be activated is the a. inception. b. point of origin. c. threshold. d. entry barrier.

c. threshold.

Circular economy refers to all of the following except a. the term for the system businesses use to recycle b. recovering and regenerating resources and products c. throwing away unused resources d. keeping resources and extracting value as long as possible

c. throwing away unused resources

The primary reason given for support of higher education programs is a. the value of a liberal arts education. b. civic duty. c. to increase the pool of trained personnel. d. to have an educated voter pool.

c. to increase the pool of trained personnel.

The basic activity of CARU is a. nominating exceptional children's advertising for national awards. b. to develop guidelines for effective advertising to children. c. to review and evaluate child-directed advertising in all media. d. monitor new developments in ads directed toward children.

c. to review and evaluate child-directed advertising in all media.

Programs that attempt to blend all of the functions of a business into a holistic, integrated philosophy built around teamwork, productivity, and customer satisfaction are called a. Six Sigma programs. b. total care programs. c. total quality management programs. d. customer focus programs.

c. total quality management programs.

Chemicals or mixtures that may present unreasonable risks of injury to health or to the environment are called a. industrial wastes. b. water pollution. c. toxic substances. d. radioactive material.

c. toxic substances.

Peter Drucker has labeled the expanded global marketplace the a. moral free space. b. hyper competitive economy. c. transnational economy. d. multinational competitive sphere.

c. transnational economy.

An area that drains to a common waterway is called: a. urban runoff b. deforestation c. watershed d. ozone

c. watershed

Grease payments are used to get minor officials to do all the following except a. what they are supposed to do. b. what they are supposed to do, but faster. c. what the FCPA wants them to do. d. what they are supposed to do, but better.

c. what the FCPA wants them to do.

An individual who reports to some outside party some wrongdoing that he or she knows or suspects his or her employer of committing is a(n) a. informant. b. corporate traitor. c. whistle-blower. d. muckraker.

c. whistle-blower.

Which of the following is not part of the anticorruption movement? a. Transparency International b. OECD anti bribery initiatives c. individual country initiatives d. World Trade Organization

d. World Trade Organization

Green rankings can be misleading because: a. They focus on compliance with regulations. b. They focus on operational impacts. c. they focus on overall practices, while ignoring the firm's political advocacy activities. d. All of these are correct.

d. All of these are correct.

Which of the following is not a level at which businesses lobby? a. individual company. b. sectoral trade associations. c. umbrella trade associations. d. All of these are levels at which businesses lobby.

d. All of these are levels at which businesses lobby.

What questions were raised because of the Bhopal tragedy? a. To what extent should MNCs maintain identical standards at home and abroad regardless of how lax laws are in the host country? b. How wise are laws that require plants to be staffed entirely by local employees? c. Should certain kinds of plants even be located in developing nations? d. All of these questions.

d. All of these questions.

Acceptable reasons not to give employees sixty days' notice of closing include which of the following? a. action that may have postponed layoffs b. unforeseen business circumstances c. natural disasters d. All of these.

d. All of these.

Hypernorms are justified if: a. There is undisputed consensus that the principle is universal. Copyright Cengage Learning. Powered by Cognero. Page 13 b. They are supported by NGOs. c. they are a component of well-known global industry standards. d. All of these.

d. All of these.

Large corporations view NGO partners in what way? a. As trusted partners b. As brand challenged c. As useful resources d. All of these.

d. All of these.

Major recipients of health and human services giving are: a. welfare agencies b. hospitals c. youth agencies d. All of these.

d. All of these.

When it comes to the government business relationship, the public thinks: a. The government is doing too much. b. The government is doing too little. c. the government needs to adapt to new realities. d. All of these.

d. All of these.

Which of the following is a reason that businesses give to arts programs? a. to improve quality of community life b. to improve academic performance for students c. to create a vibrant community d. All of these.

d. All of these.

Corporate philanthropy is used to achieve which of the following? a. Business objectives b. Corporate reputation c. Branding d. Each of these

d. Each of these

All of the following are "green watchdogs" groups seeking to monitor green advertising and certify green products except a. Green-e b. Forest Stewardship Council c. Energy Star d. EcoNogo

d. EcoNogo

U.S. based MNCs are increasingly interested in cases brought under the Alien Tort Claims Act because a. they could allow the firm to recoup some costs of incorporating overseas. b. they could allow the firm to sue foreign firms on a reciprocal basis. c. they provide an insight into the customs of the host country. d. They are increasingly being named as defendants in tort cases for doing business in countries with repressive governments.

d. They are increasingly being named as defendants in tort cases for doing business in countries with repressive governments.

According to Braithwaite, advice for communicating with employees who are being lad off include all the following except a. Be complete. b. Be consistent. c. Inform affected employees first. d. Inform competitors.

d. Inform competitors.

All of the following are arguments in support of bribery except a. everybody does it. b. It is normal practice in many countries. c. it is a form of commission, tax, or compensation for doing business between cultures. d. It is a way of providing needy foreigners with money they need.

d. It is a way of providing needy foreigners with money they need.

Which of the following is not a commonly recognized benefit of advertising? a. It stimulates competition. b. It provides information useful in comparison shopping. c. It provides competitors with information. d. It lowers the price of goods and services.

d. It lowers the price of goods and services.

The newer form of industrial policy is exemplified by: a. a focus on enabling industrialization. b. Karl Aiginer's book, "Industrial Policy: A Dying Breed or a Re-emerging Phoenix?" c. policy that does not conflict with widely held views on the role of government in the economy. d. Robert Reich's book, "The Next American Frontier."

d. Robert Reich's book, "The Next American Frontier."

The Consumer Financial Protection Bureau: a. enforces consumer financial protection laws. b. takes consumer complaints. c. promotes financial education. d. The CFPB does all of these things.

d. The CFPB does all of these things.

Which of the following is not an allegation commonly made in product liability suits? a. The product was improperly manufactured. b. The product's design was defective. c. The manufacturer failed to provide satisfactory instructions. d. The product was produced under inhumane conditions.

d. The product was produced under inhumane conditions.

In the Montreal Protocol of 1987, most of the nations that produced or used CFCs agreed to a. a gradual phase-out of those materials. b. limit future use of CFCs to amounts produced in that year. c. an immediate ban on all CFCs. d. a quick phase-out of CFCs.

d. a quick phase-out of CFCs.

The relationship between Congress and lobbying firms has been referred to as: a. cordial. b. friendly. c. a back door. d. a revolving door.

d. a revolving door.

Which of the following is not a reason commonly given for community involvement? a. moral justification. b. positions the company to help themselves c. companies can develop community support and trust. d. a way to help employees build their resumés

d. a way to help employees build their resumés

What forms of retaliation might be aimed at a whistle-blower? a. not given promotion b. cold shoulder from coworkers c. transfer to another office d. all of these choices

d. all of these choices

"Wicked" environmental problems include a. smog b. toxic waste c. acid rain. d. all of these.

d. all of these.

Problems made worse by deforestation include a. soil erosion. b. the greenhouse effect. c. moisture and nutrient ecosystem cycles. d. all of these.

d. all of these.

Today's employees are looking for a. competitive pay and benefits. b. opportunities for professional growth. c. meaningful work. d. all of these.

d. all of these.

Methods of providing due process for employees outside of the legal system are called a. arbitration. b. mediation. c. adjudication. d. alternative dispute resolution.

d. alternative dispute resolution.

A process in which a neutral party resolves a dispute between two or more parties and the resolution is binding is known as a. mediation. b. negotiation. c. adjudication. d. arbitration.

d. arbitration.

Which of the following is not one of the top consumer product categories most frequently associated with injuries requiring hospital treatment? a. sports and recreational activities b. home maintenance and construction c. toys and children's products d. automobiles

d. automobiles

Government regulations have been criticized for all the following reasons except a. being too extensive. b. being too costly. c. being burdensome to business. d. being ineffective.

d. being ineffective.

The purpose of the Federal Packaging and Labeling Act of 1967 was to a. prohibit deceptive labeling of certain consumer products. b. require disclosure of certain important information. c. limit both the type and amount of material used in packaging. d. both prohibit deceptive labeling of certain consumer products and require disclosure of certain important information.

d. both prohibit deceptive labeling of certain consumer products and require disclosure of certain important information.

Social regulation's focus on people encompasses their roles as all of the following except a. employees. b. consumers. c. citizens. d. business owners.

d. business owners.

The legal view of "let the buyer beware" that prevailed throughout most of history was a. caveat vendor. b. e pluribus unum. c. norvus ordo seclorum d. caveat emptor.

d. caveat emptor.

The industry under the greatest attack for its marketing and advertising practices is a. pharmaceuticals. b. liquor. c. automobiles. d. cigarettes.

d. cigarettes.

One of the strengths of Six Sigma program's has been its a. laser-like focus on worker satisfaction. b. increase in customer loyalty. c. contribution to research in production quality. d. clarity of process and the steps companies must take to adopt it.

d. clarity of process and the steps companies must take to adopt it.

Which of the following is not a CERES principle? a. protection of the biosphere b. sustainable use of natural resources c. reduction of waste d. cooperation with business and government

d. cooperation with business and government

The criticism of their use of sweatshops has led MNCs to do all of these things except:: a. work to improve working conditions. b. establish codes of conduct. c. perform social or ethical audits. d. create the Fair Labor Association (FLA).

d. create the Fair Labor Association (FLA).

A 2015 Pew research survey found that respondents think the government is doing well on many issues except a. setting workplace standards. b. protecting the environment. c. keeping us safe from terrorists. d. cutting corporate taxes.

d. cutting corporate taxes.

Advertising abuses include all of the following types except a. ambiguity. b. concealed facts. c. psychological appeals. d. cynical depictions.

d. cynical depictions.

Political contributions from undisclosed donors are called: a. soft money b. hard money c. easy money d. dark money

d. dark money

The right to receive an impartial review of one's complaints and to be dealt with fairly is known as a. the right to a fair and speedy trial. b. the right to trial by a jury of one's peers. c. good faith bargaining. d. due process.

d. due process.

Essential aspects of quality include which of the following? a. advertising b. color c. attributes d. durability

d. durability

All of the following are reasons given for the current obsession with quality except a. the average consumer demands more. b. global competitiveness. c. the Internet. d. employee satisfaction.

d. employee satisfaction.

A loophole allowing employers to bypass the FCRA is a. employment decision restrictions. b. the interview process. c. having adverse employment decisions made for reasons related to the background check. d. employers can opt to do the background checks themselves.

d. employers can opt to do the background checks themselves.

Advertising claims that cannot be substantiated by evidence are termed a. misleading. b. outlandish. c. understatements. d. exaggerated claims.

d. exaggerated claims.

The opposite of privatization could be considered a. creeping expropriation. b. industrial policy. c. subsidization. d. federalization.

d. federalization.

Which of the following is not a category of corporate contributions programs? a. community giving for which there is little or no expected benefit for the business. b. gifts that support long-term strategic business goals while also meeting a critical community need. c. giving that benefits the business wherein the benefit is its primary motivation. d. firms whose donations usually go to children's programs

d. firms whose donations usually go to children's programs

"Functional foods" are all the following except a. yogurts that claim to ease constipation b. butter substitutes that reduce your cholesterol c. Tomato extracts that keep your skill young and ward off cancer d. foods that claim to negatively affect your health functioning

d. foods that claim to negatively affect your health functioning

Which of the following is not a characteristic of sweatshops? a. child labor b. low pay c. poor working conditions d. forced prostitution

d. forced prostitution

The new social contract is being driven by a. the employee rights movement. b. technology. c. deregulation. d. global competition.

d. global competition.

The power held by consumers comes from a. umbrella organizations. b. trade associations. c. company lobbying. d. grassroots involvement.

d. grassroots involvement.

The Foreign Corrupt Practices Act allows a. bribes under $10,000. b. bribes, as long as the firm does not deduct them on its tax return. c. bribes, as long as they are disclosed to shareholders. d. grease payments.

d. grease payments.

Which of the following is not usually a function that lobbyists serve for their clients? a. monitoring legislation b. helping members of Congress get reelected c. organizing grassroots efforts d. helping former members of Congress find jobs

d. helping former members of Congress find jobs

A strong industrial policy: a. is present in most developing countries. b. is a term heard continuously. c. is government intervention. d. helps firms compete in a fast-moving global economy.

d. helps firms compete in a fast-moving global economy.

Which of the following is not one of the major workplace privacy issues? a. integrity testing b. drug testing c. monitoring employees d. hourly pay and benefits

d. hourly pay and benefits

Energy inefficiency is a major concern a. with renewable energy sources. b. with transportation, but not in housing. c. primarily for the wealthy. d. in all countries.

d. in all countries.

Which of the following is not a feature of the global economy? a. international movement of labor b. more trade in goods than in services c. international flow of capital d. international laws governing fair trade

d. international laws governing fair trade

An ombudsman a. hears all formal employee complaints. b. is part of the human resources department. c. is a consultant hired by a company to chair hearing procedures. d. investigates reported complaints and helps to achieve equitable settlements.

d. investigates reported complaints and helps to achieve equitable settlements.

All of the following are significant issues in cigarette advertising except a. promotion of a dangerous product. b. its aim at young audiences. c. its aim at less-educated consumer markets. d. its aim at less-developed countries.

d. its aim at less-developed countries.

Employee rights are a. encompassed in private property law. b. guaranteed by the Constitution. c. spelled out in labor union contracts. d. justifiable claims that utility cannot override.

d. justifiable claims that utility cannot override.

Warranties were originally used by manufacturers to a. help sell their products. b. differentiate their products from those of competitors. c. improve the image of their products. d. limit the length of time they were responsible for products.

d. limit the length of time they were responsible for products.

All the following are true of the new social contract except a. focus on team building projects b. communication through technology c. pay that reflects contributions d. loyalty to employer

d. loyalty to employer

Which of the following is not a major reason given for governmental regulation? a. controlling natural monopolies b. controlling negative externalities c. achieving social goals d. maintaining a trade surplus with foreign countries

d. maintaining a trade surplus with foreign countries

A company that is held responsible for the damage caused by its product in proportion to its percentage of industry sales is subject to a. strict liability. b. absolute liability. c. relative liability. d. market share liability.

d. market share liability.

Today, the FDA regulates all of these except a. vaccines b. blood products c. prescription drugs d. medical care

d. medical care

Outplacement services seek to a. minimize the severance costs to workers. b. place displaced workers in other jobs within the same company. c. provide employee benefits to displaced workers for at least one year. d. minimize cost and disruption to the company and maximize benefits to the displaced workers.

d. minimize cost and disruption to the company and maximize benefits to the displaced workers.

All of the following are dimensions of quality except a. features. b. conformance. c. serviceability. d. objectivity.

d. objectivity.

The Food and Drug Administration regulates all of the following except a. food. b. drugs. c. cosmetics. d. personal care products.

d. personal care products.

Advertising that is designed to persuade on the basis of human emotions and emotional needs rather than reason relies on a. puffery. b. concealed facts. c. ambiguous wording. d. psychological appeals.

d. psychological appeals.

Political accountability is: a. arguing against corporate political spending. b. making direct financial contributions. c. raising unlimited amounts of money to support a political candidate. d. responsibility for political actions and a willingness to answer for them.

d. responsibility for political actions and a willingness to answer for them.

Government's new role in its relationship with business during the New Deal era was one of a. partner. b. servant. c. master. d. restoring prosperity and promoting economic growth.

d. restoring prosperity and promoting economic growth.

Which of the following actions is not usually a viable alternative to closing a plant? a. diversify revenue sources b. sell the plant to a new owner c. create an employee-owned firm d. seek tax breaks that will help profits

d. seek tax breaks that will help profits

Arguments for industrial policy include all of the following except a. for economic reform. b. making the government more efficient. c. making the government more effective. d. stifling innovation.

d. stifling innovation.

Age compression is the practice of a. marketing to an older audience. b. airing commercials about products during children's shows about those products. c. underage consumers responding to alcoholic ads. d. targeting younger children when advertising products meant for older teenagers.

d. targeting younger children when advertising products meant for older teenagers.

Surveillance has become more simple and less expensive in the workplace is a result of a. higher rates of employee theft. b. higher rates of workplace violence. c. concerns about sexual harassment. d. technological developments.

d. technological developments.

Early research conducted in the organization later known as the Food and Drug Administration fed small doses of poison to a. rats. b. chimpanzees. c. the "Death Squad." d. the "Poison Squad."

d. the "Poison Squad."

CARU was created by: a. Congress. b. the Manufacturer's Self-Advertising Regulation Association. c. the Children's Television Network. d. the Council of Better Business Bureaus.

d. the Council of Better Business Bureaus.

A consumer's right to choose refers to a. his right to have an inventory of more than one to choose from. b. her right to decide what store to buy from. c. his right to eliminate products that do not meet his needs. d. the assurance that competition is working effectively.

d. the assurance that competition is working effectively.

Participation in the formulation and execution of public policy at various levels of government is a. available only to individual citizens. b. required by the constitution. c. the definition of lobbying. d. the definition of political involvement.

d. the definition of political involvement.

Which of the following is not considered a part of the induced costs of regulation? a. the effect on innovation b. the effect on investments in plant and equipment c. the effect on small business d. the effect on consumers

d. the effect on consumers

If employers do not give unsatisfactory employees every reasonable opportunity to improve their performance before being fired, the company may have violated a. the worker's right to free speech. b. the Equal Employment Opportunity Act. c. fair trade agreements. d. the good faith principle.

d. the good faith principle.

The National Federation of Independent Businesses (NFIB) attributes its newfound power to a. the growth of multinational companies. b. globalization. c. its new status as a trade association. d. the growth of small businesses in business news.

d. the growth of small businesses in business news.

Which of the following is not a key element in the whistle-blowing process? a. the act or complaint b. the party to whom the report is made c. the organization against which the complaint is made d. the law under which the complaint is lodged

d. the law under which the complaint is lodged

Outsourcing refers to a. small (usually fewer than ten employees) layoffs. b. transferring employees to overseas postings. c. layoffs at small companies. d. the relocation of business processes to a different company.

d. the relocation of business processes to a different company.

Energy inefficiency is a. an ecological system cycle. b. the balance on nonrenewable sources of energy around the world. c. biological phenomena. d. the wasting of precious nonrenewable sources of energy.

d. the wasting of precious nonrenewable sources of energy.

The most recent trend in sex-appeal advertising campaigns is: a. to target the Christian right. b. to target feminists. c. to target sex workers. d. to target younger and younger girls.

d. to target younger and younger girls.

The ethics and global strategy plan for improving global business ethics has as its central idea a. placing ethics ahead of profits as the number one priority. b. focusing on human rights rather than profits. c. employing only hypernorms for the MNC's ethical standards. d. utilizing ethical standards as significant inputs into top-level strategy formulation and implementation.

d. utilizing ethical standards as significant inputs into top-level strategy formulation and implementation.

Which of the following is not a major approach that business uses to influence the government? a. lobbying b. PACs c. coalition building d. vigilance

d. vigilance

Issues related to product information include all of the following except a. advertising. b. warranties. c. labeling. d. website design.

d. website design.

A basic premise of Total Quality Management (TQM) is that the product designer is the final judge of quality. a. True b. False

false

A limited warranty means that the company guarantees all parts of the product and all types of defects, but only for a limited period of time. a. True b. False

false

A political strategy for public activism is keeping an issue off the public agenda by providing no information to policymakers. a. True b. False

false

According to Transparency International's Corruption Perception Index (CPI), underdeveloped countries typically rank low in corruption. a. True b. False

false

Advertising hard liquor on television used to be illegal in the United States. a. True b. False

false

Astroturf lobbying is massively regulated. a. True b. False

false

Background checks are not concerning to privacy advocates. a. True b. False

false

Because of the difficulty in coordinating the effort, grassroots lobbying is no longer used extensively. a. True b. False

false

Because of widespread concern over water pollution, toxic chemicals are no longer dumped into U.S. lakes and rivers. a. True b. False

false

Belief in the "good cause norm" is a primary principle underlying the doctrine of employment-at-will. a. True b. False

false

Biodiversity continues to be lost at a small rate. a. True b. False

false

Business involvement in the community represents enlightened self-interest. a. True b. False

false

Business support for the arts has been increasing. a. True b. False

false

Business's response to consumerism has consistently been to meet consumers' demands as quickly and effectively as possible. a. True b. False

false

By definition, quality does not include service. a. True b. False

false

Cause-related marketing is one of the clearest examples of corporate philanthropy. a. True b. False

false

Comparative advertising always affects advertising positively. a. True b. False

false

Consumers are readily pursuing green products. a. True b. False

false

Cultural relativism is the best ethical guide for MNCs faced with a moral dilemma in its host country. a. True b. False

false

Deforestation does not affect global warming. a. True b. False

false

Deforestation occurs only in less developed countries (LDCs). a. True b. False

false

Deregulation has provided uniform benefits for all parties affected. a. True b. False

false

Drug testing by companies has risen continuously since first introduced. a. True b. False

false

Global codes of conduct seek to establish domestic principles or guidelines by which businesses might follow while doing business around the world. a. True b. False

false

Government is not a central stakeholder of business. a. True b. False

false

For an MNC to be perceived as legitimate in the eyes of a host country, it must fulfill its social responsibilities. a. True b. False

true

For large corporations today, political involvement is imperative. a. True b. False

true

A company may create a positive impact in the community by giving time and talents of its managers. a. True b. False

true

A company's desire to portray its product in the most flattering light can lead to misinformation. a. True b. False

true

A full warranty must contain certain features, including repair within a reasonable period of time at no charge a. True b. False

true

A global water crisis has developed as a result of drought, pollution, mismanagement and politics. a. True b. False

true

A good way to avert whistle-blowing is for management to make a visible effort to listen and be responsive to employees' concerns. a. True b. False

true

A major ethical challenge of MNCs is that their firms' cultures and philosophies may differ from that of their host countries. a. True b. False

true

A major exception to the employment-at-will doctrine is the public policy exception. a. True b. False

true

Ad creep has been expanding. a. True b. False

true

Advocates of privatization base their positions on the need for efficiency and overall performance. a. True b. False

true

An umbrella organization has a broad base of membership that represents businesses in several different industries. a. True b. False

true

As the economy struggles to come out of the recession, consumers have become more cautious and selective about spending. a. True b. False

true

Because it represents a homogenous group of businesses, the NFIB is able to present a unified message when lobbying Congress. a. True b. False

true

Cheap labor factories that abuse women, children, and workers are called sweatshops. a. True b. False

true

Corporate philanthropy involves primarily the giving of financial resources, and managerial time and talent. a. True b. False

true

Corruption, at its core, is essentially an abuse of power. a. True b. False

true

Countries at earlier stages of economic development often do not have a legal or ethical infrastructure in place to help protect their citizenry. a. True b. False

true

Court cases and legal doctrine now make it clear that business is responsible for product safety. a. True b. False

true

Court decisions are gradually eroding the employment-at-will doctrine. a. True b. False

true

Cultural differences between an MNC's home country and its host country sometimes make it difficult to distinguish between cultural issues and ethical issues. a. True b. False

true

Customer relationship management (CRM) is the ability of an organization to retain profitable customers. a. True b. False

true

Despite the poor economy, there is a backlash against globalization. a. True b. False

true

Due process is one of the most frequently proclaimed employee rights issues of the last decade. a. True b. False

true

Early economic regulations and the government bodies that administered them were usually formed along industry lines. a. True b. False

true

Employee rights to safety and health issues are growing. a. True b. False

true

Employees have enjoyed steadily improving work conditions. a. True b. False

true

Environment means many different things to different people. a. True b. False

true

Externalities are side effects or by-products of actions that are not intended, but unavoidably impact others a. True b. False

true

Firms can provide support to survivors of job losses by providing emotional, directional, tactical and informational support. a. True b. False

true

The new social contract is driven by globalization and the declining labor movement. a. True b. False

true

One of the ethical issues that is exacerbated by operating in developing countries is that the host nation's citizens often do not understand the technology being used, nor do they recognize its potential dangers. a. True b. False

true

One of the recurring problems in industries that have been deregulated is that they tend to become dominated by a few firms. a. True b. False

true

One privacy guideline states that firms should respect and preserve the boundary between work and home. a. True b. False

true

One strategy for corporate political action is constituency building. a. True b. False

true

One study estimates that passive smoke was responsible for 2,400 lung cancer deaths, in one year, in the United States. a. True b. False

true

One way to resolve ethical conflicts between an MNC's home country and host country is to simply stop doing business in the host country. a. True b. False

true

Outsourcing refers to the relocation of business processes to a different company. a. True b. False

true

Outsourcing today affects both blue collar and white collar jobs. a. True b. False

true

PACs allow labor to organize their giving. a. True b. False

true

Part of the price we pay for the advances in technology is that information about us is stored in dozens of places. a. True b. False

true

Quality and safety of products are central to consumers' concerns. a. True b. False

true

Regulating the way business operates is only one of several roles the government has in its relationship with business. a. True b. False

true

Secondary, or passive, smoke can cause death from lung cancer even in non-smokers. a. True b. False

true

Self-regulation in advertising relies on the advertiser itself to control its advertising conduct and performance. a. True b. False

true

Seventy percent of the world's poor live in rural areas, dependent on biological resources. a. True b. False

true

Some employers are requiring that their new hires sign contracts that waive their right to sue the firm and accept mandatory arbitration to settle disputes. a. True b. False

true

Some observers worry that in times of crisis, corporate philanthropy becomes a zero sum game in that contributions that go to alleviate the crisis then do not go to causes that need them. a. True b. False

true

The "Not In My Back Yard (NIMBY)" mentality is an attitude based on avoidance or denial of responsibility. a. True b. False

true

The "Silent Stakeholder" is the natural environment. a. True b. False

true

The "subjective calculation" for value is a comparison of quality received for the price spent. a. True b. False

true

The Consumer Product Safety Commission plays an important role for consumers regarding unsafe products a. True b. False

true

The Consumer Product Safety Commission's power and budgets have been subject to the administration in office. a. True b. False

true

The EEOC monitors employer use of background checks. a. True b. False

true

The FCPA has had a significant impact on the way American firms do business globally. a. True b. False

true

The Food and Drug Administration and the CPSC have been controversial over the decades. a. True b. False

true

The Food and Drug Administration grew out of the work of one man. a. True b. False

true

The Global Compact brings together thousands of companies to support universal environmental and social principles. a. True b. False

true

The Nestlé infant formula case is one in which a normal business practice in the firm's home country proved to be problematic in the host countries. a. True b. False

true

The Sarbanes-Oxley Act makes whistle-blowing much easier. a. True b. False

true

The Truth in Lending Act requires all suppliers of consumer credit to fully disclose all credit terms and to permit a 3-day right of rescission in any transaction involving a security interest in the consumer's residence. a. True b. False

true

The U.S. Office of Personnel Management endorses integrity tests as valid. a. True b. False

true

The argument in favor of unlimited corporate political spending is based on the right to free speech. a. True b. False

true

The business community now encompasses the entire world. a. True b. False

true

The categories of recipients to whom corporations give remain stable over time. a. True b. False

true

The challenge that management faces is to make products as safe as possible and affordable to consumers. a. True b. False

true

The consumer movement is still absolutely essential for achieving a fair and just marketplace for all consumers. a. True b. False

true

The ethical issues encountered in underdeveloped countries are often more acute than those found in industrialized nations. a. True b. False

true

The hole in the ozone layer was caused primarily by CFCs. a. True b. False

true

The main reason that Morgan Stanley employees fared so well in the 9/11 attacks on the World Trade Center was the company's preparation for terrorist attacks. a. True b. False

true

The primary ethical argument in favor of drug testing is the responsibility companies have to their employees and the public to provide safe workplaces, secure asset protection, and safe places in which to transact business. a. True b. False

true

The restriction of business activities can be expected to continue as the extinction rate for species climbs. a. True b. False

true

The social contract has been changing to reflect society's expanded expectations of business. a. True b. False

true

The success of peer review panels depends on whether the panelists are elected or appointed a. True b. False

true

The trend toward using Alternative Dispute Resolution (ADR) is growing. a. True b. False

true

The triple bottom line is a system of reporting that covers economic, social, and environmental performance. a. True b. False

true

The way in which most legislation gets passed is through special-interest politics. a. True b. False

true

To be effective, grassroots lobbying must be genuine. a. True b. False

true

Today, many major U.S. corporations avoid paying taxes by utilizing offshore tax loopholes. a. True b. False

true

U.S. residents, more than people in other countries, tend to sue when they are harmed. a. True b. False

true

Under the doctrine of strict liability, there is no legal defense for placing on the market a product that is dangerous to a consumer because of a known or knowable defect unless an argument of due diligence is allowed. a. True b. False

true

Unlimited corporate political spending was made legal by the Citizens United decision of the U.S. Supreme Court. a. True b. False

true

Whistle-blowing against abuse of government by private companies is making a comeback, due to the False Claims Act. a. True b. False

true

Workplace violence is one of the four leading causes of death in the workplace and leading cause of death for women. a. True b. False

true