BUSINESS ETHICS EXAM 3

Which of the following is not an instance of "insider trading"?

A marketing executive briefing stock analysts on the company's sales performance.

Which of the following statements is not true with respect to acid rain?

Acid rain occurs when carbon dioxide combines with water vapor in the atmosphere.

Which of the following statements is true of air pollution?

Air pollution occurs when more pollutants are emitted into the atmosphere than can be safely absorbed and diluted by natural processes.

Depletion of the ozone layer, destruction of the rain forests, and species extinctions all have an impact on:

All of society

Environmental regulations stimulate some sectors of the economy by:

All of the above

Intellectual property refers to:

All of the above.

The Children's Online Privacy Protection Act of 1998 requires:

All of the above.

The Securities and Exchange Commission outlaws:

Any manipulative or deceptive device used to trade stocks.

Sustainable development: `

Balances economic and environmental considerations.

Why is inequality an environmental problem?

Both A and B, but not C

The core idea(s) of sustainable development is(are):

Both A and B, but not C.

A CIO is the company's:

Chief information officers

Which of the following is the most advanced stage of corporate environmental responsibility?

Clean technology stage

Which of the following is an example of a nonrenewable resource?

Coal

The Motion Picture Association of America claimed that 44 percent of the industry's domestic losses came from illegal downloading of movies by:

College students and recent graduates.

A shared resource, such as land, air, or water, that a group of people uses collectively is a(n):

Commons

Some researchers believe that business firms moving towards ecological sustainability results in:

Competitive advantages

Which of the following is true about corporate boards?

Corporate boards average 12 members.

Companies that reduce pollution and hazardous waste, reuse or recycle materials, and operate with greater energy efficiency achieve a competitive advantage due to:

Cost savings

The practice of downloading copyrighted songs was challenged because it:

Denied legitimate compensation to the recording artists.

This Act makes it a crime to circumvent antipiracy measures built into most commercial software agreements between the manufactures and their users:

Digital Millennium Copyright Act.

Corporate governance involves the exercise of control over a company's:

Entire operations

When businesses form voluntary, collaborative partnerships with environmental organizations and regulators to achieve specific objectives this is called:

Environmental partnerships.

The directors of a company are a central factor in corporate governance because they:

Exercise formal legal authority over company policy.

Over time the role of the CIO:

Has changed dramatically, becoming more integrated into the overall strategic direction of the firm.

In 2008 the F.D.A. declared that food from cloned animals and their offspring was safe to eat, but:

Imposed a voluntary ban on the sale of cloned animals.

Which of the following statements is not true about arable land?

It is a nonrenewable source

The "agency problem" arises when:

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

The main reason that American executives are paid so much is:

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

Environmental justice is a movement to:

Prevent inequitable exposure to risk, such as from hazardous waste.

In 2005, the United Nations approved a declaration that:

Prohibited all forms of human cloning "in as much as cloning is incompatible with human dignity and the protection of human life."

The mission of the Securities and Exchange Commission (SEC) is to:

Protect shareholders' rights by making sure that stock markets are run fairly.

The most successful global businesses in coming years will be those companies that:

Recognize the imperative for sustainable development as an opportunity both for competitive advantage and ethical action.

Rapid economic development is often accompanied by:

Rising incomes, bringing higher rates of both consumption and waste.

In response to concerns about the lack of transparency in financial accounting, Congress passed a new law called the:

Sarbanes-Oxley Act.

Which of the following statements is not true about environmental standards?

The government rarely interferes in a business's choice of pollution technology.

The Environmental Protection Agency (EPA) was created:

To coordinate most of the government's efforts to protect the environment.

Which if the following is not a legal right of stockholders?

To vote on who will become chief executive officer (CEO).

Which of the following is an example of industrial ecology in practice?

Using wastes from one process as raw materials for another process.

In some economically developed countries and most developing countries around the world genetically modified food was:

Welcomed as a way to increase crop yields.