BA 243 Final Exam

The Foreign Corrupt Practices Act was introduced to more effectively control bribery and other less obvious forms of payment to foreign officials and politicians by American publicly traded companies as they pursued international growth. True or False

True

A whistle-blower is an individual who discovers corporate misconduct and chooses not to do anything about it. True or False

False

Business ethics can be approached from two distinct perspectives: prohibitive and preventative. True or False

False

Corporate citizenship is an element of corporate social responsibility (CSR). True or False

False

Distribution and marketing are line functions, supporting each of the key functional areas. True or False

False

Doing what is in the best long-term interest of a customer invariably fails to achieve what is best for a company. True or False

False

Ethical behavior should not be the same inside and outside a business situation. True or False

False

Finance assumes the supervisory role that oversees all operational functions of an organization. True or False

False

Grease payments are illegal under the Foreign Corrupt Practices Act. True or False

False

Information systems team coordinate the recruitment, training, and development of personnel for all aspects of an organization. True or False

False

Layoffs reduce corporation costs and only affect the laid-off employees. True or False

False

Management consulting is the system by which business organizations are directed and controlled. True or False

False

Organizational culture can be defined as the values, beliefs, and norms shared by the employees as well as the competitors of that organization. True or False

False

The Consumer Financial Protection Bureau is a government agency within the Federal Reserve that oversees financial products and services. True or False

False

The Federal Sentencing Guidelines for Organizations table factors in both the nature of the crime and the amount of the loss suffered by the victim. True or False

False

The Securities and Exchange Commission can enforce criminal penalties of up to $2 million per violation of the Foreign Corrupt Practices Act for corporations and other business entities. True or False

False

The board members of a company are not accountable to the company and its shareholders. True or False

False

The social contract approach is a very simplistic model that argues that the corporation only has an obligation to itself. True or False

False

Typical markets represent federal, state, and local officials who simplify and reduce rules and regulations, thus discouraging firms from hiring more people and paying more taxes. True or False

False

Typically, the compensation package of a CEO and other senior executives of an organization consists of a base salary and stock options but does not include any performance bonus or other perks. True or False

False

Virtue ethics is the concept of living your life according to the similar virtues of different societies. True or False

False

What is the reason for the increased monitoring of employees at work by organizations? Multiple Choice The evidence gathered from the electronic trail of e-mails from employees can cause potential damage to an organization. The concept of being at work has become far more rigid in the new environment. Organizations have been given the right to monitor every movement of their employees by the federal government. Employers have proved beyond doubt that constant employee surveillance leads to increased worker productivity.

The evidence gathered from the electronic trail of e-mails from employees can cause potential damage to an organization.

Ethics for the greater good is also referred to as utilitarianism. True or False

True

The definition of corporate social responsibility (CSR) assumes that the managers of the corporation are committed to an aggressive growth strategy while complying with all federal, state, and local legal obligations. True or False

True

The field of ethics is the study of how people try to live their lives according to a standard of "right" or "wrong" behavior. True or False

True

The term "globalization" has applications in commercial, economic, social, and political environments. True or False

True

Utilitarianism is a theory in ethics that advocates making choices that offer the greatest good for the greatest number of people. True or False

True

Workplace technology has changed dramatically over the last two decades. True or False

True

________ refers to ethical choices that consider the greatest good for the greatest number of people. Multiple Choice Utilitarianism Centralism Astigmatism Autonomism

Utilitarianism

________ refers to a set of personal principles formalized into a code of behavior. Multiple Choice Traditional norm Value system Extrinsic norm Utilitarianism

Value system

The difference between intrinsic value and instrumental value is that Multiple Choice as opposed to instrumental value, intrinsic value refers to the adoption of those standards that are ultimately unique to a society. as opposed to intrinsic value, instrumental value refers to the quality by which the pursuit of one value is a good way to reach another value. as opposed to intrinsic value, instrumental value refers to the quality by which a value is a good thing in itself and is pursued for its own sake, whether anything comes from that pursuit or not. as opposed to instrumental value, intrinsic value refers to values acquired through media and religion.

as opposed to intrinsic value, instrumental value refers to the quality by which the pursuit of one value is a good way to reach another value.

If an employee's personal value system prompts him or her to speak up about the misconduct of the organization he or she works for, the employee takes on the role of a whistle-blower. True of False

True

If companies are well governed, they will usually outperform other companies and will be able to attract investors whose support can finance further growth. True or False

True

Impatient stockholders wanting the stock price to rise each and every quarter are representative of most markets. True or False

True

Internal whistle-blowing involves an employee bringing the organization's misconduct to the attention of his or her manager or supervisor and taking the complaint through appropriate channels within the organization. True or False

True

Marketing, sales, and customer service are identified as the key functions in a value chain. True or False

True

Poor corporate governance weakens a company's potential and at worst can pave the way for financial difficulties and even fraud. True or False

True

Some of the advances in workplace technology over the last two decades include desktop computing, the Internet, and the growth of e-mail and instant messaging (IM). True or False

True

Stakeholders include stockholders, employees, and the federal government. True or False

True

Sustainable ethics in a culture are those that persist within the operational policies of the organization long after the latest public scandal or the latest management buzzword. True or False

True

A policy that results when an organization is driven by events and/or a fear of future events is known as a ________. Multiple Choice distributive ethical policy reactive ethical policy secure ethical policy defensive ethical policy

reactive ethical policy

The difference between reactive and proactive policies of an organization is that Multiple Choice unlike reactive policies, proactive policies ignore the actions the organization will most likely take to be recognized as an ethical organization. reactive policies are driven by events and/or a fear of future events, whereas proactive policies are driven by a clear sense of what is construed as ethical for the organization. proactive policies help monitor the ethical performance of the organization only externally, whereas reactive policies monitor the organization both internally and externally. unlike proactive policies, reactive policies are true ethical policies.

reactive policies are driven by events and/or a fear of future events, whereas proactive policies are driven by a clear sense of what is construed as ethical for the organization.

Under the Foreign Corrupt Practices Act (FCPA), which of the following is considered illegal behavior? Multiple Choice record-keeping provisions political contributions donations to foreign charities grease payments

record-keeping provisions

A ________ is defined as someone with a share or interest in a business enterprise. Multiple Choice stakeholder moderator mediator crossholder

stakeholder

The Sarbanes-Oxley Act of 2002 is also known as Multiple Choice the Employee Protection and Care Act. the Comprehensive Crime Control Act. the Dodd-Frank Wall Street Reform and Protection Act. the Corporate and Criminal Fraud Accountability Act.

the Corporate and Criminal Fraud Accountability Act.

The definition of corporate social responsibility as the actions of an organization that prioritize social benefit over maximizing profits and meeting legal obligations assumes that Multiple Choice the corporation has maximum market share. the corporation is operating in a competitive environment. the corporation is committed to a non-aggressive growth strategy. the laws of the country in which the corporation operates is not too restrictive.

the corporation is operating in a competitive environment.

Which of the following explains why employers are in favor of monitoring and restricting the actions of their employees? Multiple Choice the implications of vicarious liability for employers the federal restrictions placed upon wiretapping the reluctance of employees to give thick consent the federal restrictions placed on cybersquatting

the implications of vicarious liability for employers

In external whistle-blowing, an employee who discovers corporate misconduct brings it to the attention of Multiple Choice the chief executive officer of his or her organization. his or her supervisor. the law enforcement agencies. his or her human resource manager.

the law enforcement agencies.

The term "business ethics" is sometimes considered an oxymoron because Multiple Choice small, new businesses tend to be less honest than large, established businesses. the recent spate of financial scandals portrays organizations as fundamentally unethical. the standard of corporate governance has been at its highest level in the last decade. local businesses tend to have fewer accounting scandals than international businesses.

the recent spate of financial scandals portrays organizations as fundamentally unethical.

Universal ethics argues that Multiple Choice societies can place different emphasis on different virtues. universal principles may not apply to everyone, everywhere, all the time. there are certain principles that should apply to all ethical judgments. everyone is committed to doing the right thing.

there are certain principles that should apply to all ethical judgments.

The advances in technology have affected customers in a way that Multiple Choice their personal data can no longer be sent to any part of the world. they have round-the-clock access to customer services. they no longer have access to after-hours tech support services. their personal data cannot be digitized, thus protecting their privacy.

they have round-the-clock access to customer services.

An employee who discovers corporate misconduct and chooses to bring it to the attention of others is referred to as a(n) ________. Multiple Choice whistle-blower history-sheet eragent provocateur criminal informant

whistle-blower

The two types of whistle-blowing, internal and external, are categorized based on Multiple Choice whom the whistle-blower chooses to inform. the motivation of the whistle-blower. the type of organizational misconduct. the nationality of the whistle-blower.

whom the whistle-blower chooses to inform.

Which approach to corporate social responsibility (CSR) assumes that there are no external consequences to the actions of the corporation and its managers? Multiple Choice instrumental approach social contract approach trident approach utilitarian approach

instrumental approach

The quality by which a value is a good thing in itself and is pursued for its own sake, whether anything comes from that pursuit or not, is called a(n) ________. Multiple Choice traditional norm instrumental value extrinsic norm intrinsic value

intrinsic value

The UN Global Compact Multiple Choice ignores issues of environmental concern. is the largest initiative of its kind in the world. applies only to organizations operating in developed nations. is a regulatory instrument that polices organizations.

is the largest initiative of its kind in the world.

One of the responsibilities of the audit committee of a company is to Multiple Choice: elect members of the company's board of directors. oversee compensation packages for the senior executives. monitor the company's choice of accounting policies and procedures. Correctanalyze the company's economic progress.

monitor the company's choice of accounting policies and procedures.

Some of the employees, including the top managers and the board of directors, of Warburges Inc. have been in the news lately for accepting bribes and using corporate resources for personal expenses. Which of the following characteristics did the firm fail to demonstrate? Multiple Choice vicarious liability ethical relativism organizational integrity corporate governance

organizational integrity

Over the last five decades, corporate ethics has moved from the domain of human resource departments into the ________. Multiple Choice legal department finance and accounting department talent management portfolio organizational mainstream

organizational mainstream

The board of directors of a company Multiple Choice is not accountable to the company's stakeholders. should ideally be elected by the CEO. oversees the governance of the organization. should ideally have less power than the CEO.

oversees the governance of the organization.

The original reason for the enactment of the Civil False Claims Act was to Multiple Choice protect the government from fraudulent defense contractors. prevent corporate retaliation against federal whistle-blowers. impose specific performance deadlines in processing whistle-blower complaints. prevent whistle-blowers from filing cases against multinational corporations.

protect the government from fraudulent defense contractors.

Marketing professionals are responsible for Multiple Choice providing products to customers. developing and creating product designs. recruiting and selecting candidates for a position. tracking the financial transactions of a company.

providing products to customers.

Which of the following is true of the effective compliance program prescribed by the Federal Sentencing Guidelines for Organizations? Multiple Choice A high-level official (such as a corporate ethics officer) must be in charge of and accountable for the compliance program. Individuals should be granted excessive discretionary authority, as that would reduce the risk of criminal conduct. Criminal offenses must generate an appropriate response, analysis, and corrective action, but not on the basis of suspicion. An organization must be strict to address criminal misconduct in a consistent manner but should avoid penalizing employees for it.

A high-level official (such as a corporate ethics officer) must be in charge of and accountable for the compliance program.

Marketing professionals abide by a code of ethics adopted by the ________. Multiple Choice Society for Marketing Resources American Marketing Association American Ethics Association Marketers' Ethics Resource Center

American Marketing Association

The code of ethics adopted by the ________ speaks about doing no harm, fostering trust, and improving "customer confidence in the integrity of the marketing exchange system." Multiple Choice American Counseling Association (ACA) Society for Marketing Resources American Marketing Association (AMA) Marketing Research Association (MRA)

American Marketing Association (AMA)

Which of the following best illustrates the social contract approach to corporate management? Multiple Choice Indibean Inc. promotes extensive work shifts. Armac Inc. asks its employees to work on holidays to increase profits. At Clark Enterprises, there have been substantial layoffs to control costs. At Redder Enterprises, employees' wages have grown at a higher rate than inflation.

At Redder Enterprises, employees' wages have grown at a higher rate than inflation.

Whistle-blowers who expose fraudulent behavior against the government are entitled to between 10 and 30 percent of the amount recovered under the federal ________. Multiple Choice Civil False Claims Act Fair Employment Practice Act Enforcement Act Civil Liberties Act

Civil False Claims Act

Which of the following is an example of corporate social responsibility (CSR)? Multiple Choice Brenner Enterprises gives its employees greater freedom in choosing projects. Dawson Inc. uses a clean-fuel technology shuttle for employee conveyance. Larsen Inc. provides free lunch coupons to its employees. Infinite Corp. promotes team building activities for employees.

Dawson Inc. uses a clean-fuel technology shuttle for employee conveyance.

The Organization for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises were initially a part of the ________. Multiple Choice Public Company Accounting Oversight Board International Bureau of Economic Analysis Dodd-Frank Wall Street Reform and Consumer Protection Act Declaration on International Investments and Multinational Enterprises

Declaration on International Investments and Multinational Enterprises

Which of the following statements is true of telecommuting? Multiple Choice It allows employees a certain degree of flexibility in terms of their work hours. It allows employees to prioritize personal work over work productivity. It makes it easier for employers to measure the amount of time employees are on-site. It helps employees concentrate and work better at home with no distractions.

It allows employees a certain degree of flexibility in terms of their work hours.

Which of the following is true of the Sarbanes-Oxley Act (SOX)? Multiple Choice It helped disband the Public Company Accounting Oversight Board. It protects employees of companies who provide evidence of fraud. It prohibits a CEO from signing the company's federal income tax return. It considers whistle-blowing a white collar crime.

It protects employees of companies who provide evidence of fraud.

How has globalization affected the economy? Multiple Choice Transnational markets have given way to national markets. Regional trade blocs have been replaced by domestic markets. National markets are becoming less dependent on each other. National markets are being overtaken by regional trade blocs.

National markets are being overtaken by regional trade blocs.

The illegal and unethical practice of providing old (or early) investors above-average returns on their investment with funds raised from new (or late) investors in the absence of any real business operation to generate profits is referred to as the ________. Multiple Choice Ponzi scheme Jamaican switch Pigeon drop Tobashi scheme

Ponzi scheme

Information can be digitized and transmitted over fiber-optic cables because of the recent advances in technology. Which ethical obligation of this new capability is now being realized? Multiple Choice Should customers be charged more now that companies can offer them better customer servicing? Should customers be charged less now that companies have ways in which they can reduce production costs? Should customer service be relative to the amount of money customers spend on company products? Should customers be informed that their personal information is being sent to other countries?

Should customers be informed that their personal information is being sent to other countries?

Which of the following statements is true of whistle-blowers? Multiple Choice They are universally lauded for their decision to speak out. They are individuals who typically have low levels of integrity. They seldom harm anybody with their decision to speak out. They are often criticized and considered troublemakers.

They are often criticized and considered troublemakers.

Which of the following is true of managers in an organization with good corporate governance? Multiple Choice They must be nominated by the compensation committee. They should fulfill a fiduciary responsibility to the owners. They must consider only the single bottom line of profitability. They should follow an exclusive, rather than an internal, approach.

They should fulfill a fiduciary responsibility to the owners.

"Do unto others as you would have them do unto you" is the Golden Rule. True or False

True

A developed nation is a country that enjoys a high standard of living as measured by economic, social, and technological criteria. True or False

True

A less-developed nation is a country that lacks the economic, social, and technological infrastructure of a developed nation. True or False

True

Business ethics involves the application of standards of moral behavior to business situations. True or False

True

Companies can now make vast amounts of information available to its employees and customers on their Internet, intranet, and extranet sites. True or False

True

Cyberliability applies the existing legal concept of liability to the field of computers. True or False

True

Demanding customers who want new and better products and services at lower prices represent a typical market. True or False

True

Employers feel it necessary to monitor employees at the workplace because they have an obligation to their stakeholders to operate as efficiently as possible. True or False

True

Under the Foreign Corrupt Practices Act, payments made with the knowledge that any portion of the payment is to be passed along to a foreign official for a prohibited purpose under the Foreign Corrupt Practices Act are known as ________. Multiple Choice grease payments facilitation payments bribes costs

bribes

In the context of business ethics, an ideal ________ is structured to liberate and empower people to make more effective decisions with greater confidence. Multiple Choice remuneration work-life balance code of ethics business plan

code of ethics

In creating a code of ethics, the Institute of Business Ethics advises companies to Multiple Choice develop their own model to suit their requirements rather than pick a previously tested model. conduct a pilot test of the code with a sample consisting of employees drawn from all levels and different locations. produce a code of conduct and circulate it via the company's extranet. ensure that the framework is limited to the company's employees and customers.

conduct a pilot test of the code with a sample consisting of employees drawn from all levels and different locations.

Which of the following is most likely to be the next stage in making ethical behavior sustainable for an organization after it promotes its commitment to ethical behavior? Multiple Choice continuously monitoring the ethical behavior of its employees as the company grows hiring an ethics officer celebrating and rewarding the ethical behavior demonstrated by its employees supporting the code of ethics with extensive training for every member of the organization

continuously monitoring the ethical behavior of its employees as the company grows

Happy Times (HT) is an alcohol manufacturing brand that deals with several types of alcoholic beverages. HT uses social media for promoting the message of responsible drinking. It sponsors the FreeTaxi program for customers with HT membership on Christmas and New Year's Eve. It has also initiated several community welfare projects where a percentage of the profits go to the Hunger Relief Fund for Children. In the given scenario, which of the following is best illustrated? Multiple Choice ethical ambiguity universal ethics emotional contagion corporate citizenship

corporate citizenship

One of the primary responsibilities of an organization's ________ is to ensure compliance with the company's internal code of ethics. Multiple Choice business sales unit quality assurance unit corporate governance committee proposal committee

corporate governance committee

In the context of business ethics, the ________ perspective is a summation of the customs, attitudes, and rules that are observed within a business. Multiple Choice descriptive normative preventative prescriptive

descriptive

Globalization raises concerns about the Multiple Choice restricted access multinational companies have to all less-developed countries. ethical behavior of economically advanced nations toward developing ones. inability of multinational companies to reduce their production costs. lack of currency flow in foreign exchange markets.

ethical behavior of economically advanced nations toward developing ones.

A situation in which there is no obvious right or wrong decision, but rather a right or right answer, is termed ________. Multiple Choice status paradox absence paradox discursive dilemma ethical dilemma

ethical dilemma

The inside members of a company's board of directors Multiple Choice typically have no direct connection with the company. hold managerial positions within the company. comprise the company's creditors and suppliers. include the external consultants used by the company.

hold managerial positions within the company.

ThinkNow is an advertising firm based in Dallas, Texas. One of its departments is in charge of the hiring process and is responsible for the orientation of newly hired employees. Which of the following organizational areas does this department represent? Multiple Choice finance human resources research and development information systems

human resources

In the context of the creation of a code of ethics, the Institute of Business Ethics advises companies Multiple Choice to hire young trainees to conduct research and formulate ethical policies. to put the code on the organization's website, and not to send it to all employees, suppliers, and other stakeholders. to introduce practical examples of the code in all company internal (and external) training programs and induction courses. not to try out the code first, as no piloting is required.

to introduce practical examples of the code in all company internal (and external) training programs and induction courses.

Multinational companies are also known as ________. Multiple Choice transnational corporations intranational trade blocs regional trade blocs transcontinental bureaus

transnational corporations

The stage in which an individual is focused on self-chosen ethical principles found to be comprehensive and consistent is ________. Multiple Choice "good boy/nice girl" ethical orientation law-and-order orientation universal ethical principle orientation obedience and punishment orientation

universal ethical principle orientation

Actions that are taken out of duty and obligation to a purely moral ideal, rather than based on the needs of the situation, are known as ________. Multiple Choice utilitarianism virtue ethics consequentialism universal ethics

universal ethics

Ethics for the greater good or ________ is an approach more focused on the outcome of one's actions rather than the apparent virtue of the actions themselves. Multiple Choice utilitarianism normative ethics worldcentrism virtue ethics

utilitarianism