IB Quiz #5

A ________ is a right granted to the inventor of a product or process that excludes others from making, using, or selling the invention. A) patent B) trademark C) civil right D) copyright

A

A firm that focuses on job creation in its local market is pursuing which of the following types of sustainability interests? A) economic B) social C) environmental D) political

A

A company's code of ethics is a cure for all of its ethical dilemmas.

FALSE

Ethical dilemmas are similar to legal questions in that there are clear-cut right and wrong behaviors in every international business situation.

FALSE

In resolving ethical dilemmas, the opinions of individuals involved are more important than the facts of the situation.

FALSE

Intellectual property rights developed in one country are guaranteed throughout the world.

FALSE

Multinational businesses typically develop several codes of ethics, each designed to guide their companies in different situations.

FALSE

Practicing sustainability typically increases production costs but has the benefit of smoothing out relations with foreign governments.

FALSE

Standards of ethical behavior are universal worldwide.

FALSE

To ensure they are upholding ethical standards, international firms should focus exclusively on obeying the laws of their host countries.

FALSE

CSR practices improve employee perceptions of a company, thereby reducing turnover.

TRUE

Considering one's instincts is a good practice when resolving ethical dilemmas.

TRUE

Economic development is hindered by widespread corruption.

TRUE

Failure to adopt CSR behaviors can have have highly detrimental effects on a company.

TRUE

Research shows that corporate executives throughout the world uphold both profitability and social responsibility as business values.

TRUE

The five approaches to analyzing ethical dilemmas often lead to similar solutions.

TRUE

The most advanced companies monitor their suppliers to ensure that their suppliers use sustainable practices.

TRUE

Acme Ethical Standards (Scenario) Four senior managers of Acme International meet to discuss strategies for improving ethical practices in the company's worldwide operations. Jang heads the company's manufacturing division in China, while Luis and Marta are based in the Kenya and U.S. sales divisions, respectively. Geoff manages the research and development office, based in Brazil. The managers discuss various ethical problems faced in their local territories. Which representative most likely sees the biggest problem with book counterfeiting at home? A) Jang B) Luis C) Marta D) Geoff

A

An individual who believes in ethical normativism views ethical truths as ________. A) universal B) constantly changing C) dependent on societal norms D) superior in certain countries

A

Freedom Shoes (Scenario) Freedom Shoes, a sports shoe company, is considering contracting with an overseas vendor to expand its production capacity. The company investigated several suppliers and found one vendor to be most appealing in terms of cost and manufacturing efficiency. However, Freedom's managers have heard reports that the vendor operates factories with sweatshop conditions. During a meeting with the production consultant, attendees discuss whether it is prudent for Freedom to attempt to hold suppliers to appropriate ethical conduct. One executive rejects this idea, stating that it would be impractical. The executive most likely cites each of the following reasons to support his position except ________. A) ethical issues can appear at many points in the supply chain B) monitoring and enforcement would be costly C) monitoring and enforcement would take time D) ethical standards are often not clear cut

A

The practice of meeting humanity's needs without harming future generations is known as ________. A) sustainability B) corporate responsibility C) ethical behavior D) environmental protection

A

The process of reproducing assets without compensating those who originally created them is known as ________. A) counterfeiting B) bribery C) grease payments D) trademarking

A

The stakeholders of a company include all of the following except ________. A) loyal customers of the company's main competitor B) members of the company's board of directors C) the company's CEO and senior managers D) individuals who are company shareholders

A

When using the four-step framework for making ethical decisions, which step involves investigating which individuals have a stake in the outcome? A) get the facts B) implement a decision C) evaluate alternatives D) recognize the ethical problem

A

Which of the following acts makes it illegal for U.S. firms to offer bribes to foreign parties in order to secure or retain business? A) the U.S. Foreign Corrupt Practices Act B) the U.S. Federal Trade Commission Act C) the U.S. Securities Exchange Act D) the Sarbanes-Oxley Act

A

Which of the following countries has the highest level of piracy in records and music? A) China B) Malaysia C) India D) Brazil

A

Which of the following describes the opinions of most executives regarding the claim that businesses should attempt to obtain high returns for investors at the same time as they promote socially beneficial goals? A) Most executives agree with this claim. B) Most executives disagree over the importance of generating high returns for investors. C) Most executives disagree over the importance of promoting socially beneficial goals. D) Most executives disagree over how to define socially beneficial goals.

A

Which of the following is true of a business code of ethics? A) It guides employee behavior in all situations. B) It guides employee behavior in some, but not all, situations. C) It is usually a poor guide for employee behavior. D) It is a cure-all for ethical dilemmas.

A

A business code of ethics functions as which of the following? A) mission statement B) moral compass C) strategic plan D) map of goals and objectives

B

A firm that avoids using sweatshops is pursuing which of the following types of sustainability interests? A) economic B) social C) environmental D) political

B

An ethical relativist would most likely argue that ethical truths are ________. A) consistent in application B) different from group to group C) based on ancient principles D) absolute across societies

B

Freedom Shoes (Scenario) Freedom Shoes, a sports shoe company, is considering contracting with an overseas vendor to expand its production capacity. The company investigated several suppliers and found one vendor to be most appealing in terms of cost and manufacturing efficiency. However, Freedom's managers have heard reports that the vendor operates factories with sweatshop conditions. One meeting attendee represents the relativist view regarding ethical standards. She upholds the belief that "When in Rome, do as the Romans do." What perspective does this attendee most likely hold regarding the questionable status of the supplier? A) Freedom should require its suppliers to uphold universal standards of ethics. B) Freedom should passively accept the practices that prevail in countries where it does business. C) Freedom should attempt to correct unethical practices exhibited by its suppliers. D) Freedom should be selective in which practices it attempts to correct on the part of suppliers.

B

In Russia, estimated losses from copyright piracy total ________. A) $3,596 million B) $2,224 million C) $1,691 million D) $225 million

B

In a meeting of its senior management, a cigarette company reviews its plans to expand into several emerging markets. One executive suggests that targeting these markets may raise potential CSR concerns. Other attendees at the meeting dismiss the idea. Which of the following is the most effective response the executive could give to support his point regarding CSR concerns? A) Women are an untapped group of potential cigarette consumers in emerging markets. B) The GDPs of target countries may suffer from the burden of increased health care costs. C) Cigarette sales have declined in many of the advanced economies in recent years. D) Advertising that portrays smoking as "hip" will be most likely to appeal to young consumers.

B

Moral principles and values governing behavior regarding right and wrong are known as ________. A) attitudes B) ethics C) laws D) standards

B

Sid Maxwell (Scenario) Sid Maxwell is head of legal affairs for Hudson Inc., a producer of animal figurines that include an embedded software program that makes animal sounds. Hudson is expanding its market to include parts of Asia and Maxwell is concerned about reports of software piracy in the region. The software program embedded in Hudson's figurines is an example of ________. A) a tangible asset B) intellectual property C) a trademark D) local content

B

When using the four-step framework for making ethical decisions, which approach to evaluating actions is being used by a manager who questions whether an action embodies character strengths he values? A) rights approach B) virtue approach C) common good approach D) utilitarian approach

B

Which of the following countries would be least likely to experience rampant corruption? A) a country with minimal laws against corruption B) a country that widely publicizes its financial accounting C) a country run by a military dicatorship, with no elected leaders D) a country with high trade barriers and limited regional commerce

B

Which of the following is a policy platform for companies committed to sustainability and CSR? A) the Organization for Economic Cooperation and Development B) the United Nations Global Compact C) the International Economic Development Council D) the Global Competitiveness Report

B

Which of the following standards for examining ethical dilemmas reflects the view that the best ethical action is one that provides the greatest balance of good over harm? A) common good approach B) utilitarian approach C) virtue approach D) fairness approach

B

A copyright is granted for ________ but not for ________. A) books; software B) music; movies C) works of art; manufacturing processes D) insignias; TV shows

C

A firm is hired by an entertainment company to investigate piracy of its entertainment software in countries abroad. The firm develops a list of countries to investigate based with estimated piracy levels of 90% or higher. Which of the following is most likely on the firm's list? A) India B) Russia C) China D) Mexico

C

Acme Ethical Standards (Scenario) Four senior managers of Acme International meet to discuss strategies for improving ethical practices in the company's worldwide operations. Jang heads the company's manufacturing division in China, while Luis and Marta are based in the Kenya and U.S. sales divisions, respectively. Geoff manages the research and development office, based in Brazil. Another manager raises concerns about the appropriateness of accepting gifts from suppliers. This manager points out that such practices are widely accepted by many local businesses at home. Which manager most likely raised this concern? A) Marta B) Geoff C) Luis D) Jang

C

An oil company is considering establishing operations in a foreign country that represses human rights. Which of the following would best support the position an activist would take regarding the company's entry into that market? A) The firm should establish operations in the country, because it would help create jobs. B) The firm should avoid operating in that country, because too many oil firms exist there. C) The firm should avoid operating in that country, because the government is repressive. D) The firm should establish operations in the country, because it would reduce depotism.

C

Corruption is defined as ________. A) the enforcement of existing corporate practices B) an act that violates a country's laws C) the abuse of power to achieve illegitimate personal gain D) facilitating payments illegally to obtain favors

C

Sid Maxwell (Scenario) Sid Maxwell is head of legal affairs for Hudson Inc., a producer of animal figurines that include an embedded software program that makes animal sounds. Hudson is expanding its market to include parts of Asia and Maxwell is concerned about reports of software piracy in the region. To protect itself against imitators and ensure that customers can easily identify its product, Hudson could register a ________. A) patent B) copyright C) trademark D) users license

C

Sid Maxwell (Scenario) Sid Maxwell is head of legal affairs for Hudson Inc., a producer of animal figurines that include an embedded software program that makes animal sounds. Hudson is expanding its market to include parts of Asia and Maxwell is concerned about reports of software piracy in the region. Which of the following could Hudson obtain to protect its rights to the proprietary software embedded in the figurines? A) trademark B) patent C) copyright D) users license

C

Under prevailing legislation, firms that bribe foreign parties to secure business can be fined ________. A) $10 million B) $4.5 million C) $2 million D) $1 million

C

When applying the four-step framework for making ethical decisions, which step should managers take first? A) evaluate alternatives B) get the facts C) recognize the ethical problem D) implement a decision

C

Which of the following is an example of a corporate human rights violation? A) operating a factory that pollutes the air B) selling a defective product C) operating a sweatshop factory D) failing to make foreign tax payments

C

Which of the following makes it more difficult for companies to implement global CSR measures? A) The UN Convention on the Rights of the Child defines specific standards for global CSR. B) Most international companies agree on the importance of improving access to quality education. C) Company stakeholders often have conflicting expectations regarding business accountability. D) Solutions to social and environmental problems are typically clear cut for headquarter managers.

C

Which of the following protects books and software from unauthorized use? A) patent B) trademark C) copyright D) domain registration

C

Which of the following standards for examing ethical dilemmas reflects the view that actions should be based on the welfare of the entire community or nation? A) rights approach B) utilitarian approach C) common good approach D) virtue approach

C

Which of the following would most likely be considered a sustainable business practice? A) reducing the overall tax liability of a corporation B) developing a patented process to produce steel C) using solar energy to power manufacturing plants D) enforcing mandatory drug testing among employees

C

Acme Ethical Standards (Scenario) Four senior managers of Acme International meet to discuss strategies for improving ethical practices in the company's worldwide operations. Jang heads the company's manufacturing division in China, while Luis and Marta are based in the Kenya and U.S. sales divisions, respectively. Geoff manages the research and development office, based in Brazil. One of the managers points to a controversial practice in his or her home territory, that of compensating high-level executives with much higher salaries than those of the junior employees. This manager is most likely which of the following? A) Geoff B) Luis C) Jang D) Marta

D

An international human rights organization recommends that its member countries review their human rights policies on a periodic basis to ensure that their governments are upholding ethical standards for the treatment of prisoners. Which of the following represents the most effective reasoning in support of the organization's recommendation? A) Ethical policies and practices tend to remain consistent within the same country over time. B) Nations should only enforce ethical standards that have been approved by other nations. C) Nations should enforce those ethical standards that have been adopted in other nations. D) Ethical standards change over time, so national policies should be updated as necessary.

D

Each of the following is helpful for reducing corruption except ________. A) consistently enforced anticorruption laws B) governments committed to above-the-board practices C) highly transparent accounting systems D) independence from the global economy

D

Each of the following represents a core CSR value except ________. A) eliminating child labor B) guarding against corruption C) protecting the environment D) inhibiting labor unions

D

Freedom Shoes (Scenario) Freedom Shoes, a sports shoe company, is considering contracting with an overseas vendor to expand its production capacity. The company investigated several suppliers and found one vendor to be most appealing in terms of cost and manufacturing efficiency. However, Freedom's managers have heard reports that the vendor operates factories with sweatshop conditions. 65) Freedom hires a production consultant to help make the decision regarding which overseas supplier to use. The consultant takes an activist perspective on the issue. Which of the following would the activist most likely recommend regarding the vendor in question? A) Freedom should avoid partnering with suppliers and should make its own products. B) Freedom should avoid taking investigative action, which would be time-consuming. C) Freedom should move ahead with the contract, based on price and efficiency alone. D) Freedom should monitor the vendor's workplace conditions before making a decision.

D

In India, estimated losses from copyright piracy are greatest in which of the following industries? A) entertainment software B) records and music C) books D) business software

D

In the United States, what prison term can be assessed for managers who bribe foreign parties to secure or retain business? A) nine years B) seven to nine years C) five to seven years D) up to five years

D

In the four-step framework for making ethical decisions, when should a decision be implemented and evaluated? A) immediately after the facts of the situation are obtained B) as the first step in the decision-making process C) immediately after all relevant persons have been consulted D) after alternative courses of action have been evaluated

D

The Nike "Swoosh" is an example of a(n) ________. A) patent B) fad C) copyright D) trademark

D

When making decisions regarding ethical business actions, managers should do which of the following? A) focus predominantly on whether the actions uphold accepted standards of fairness B) focus mainly on the company's obligations to produce profits for its shareholders C) place the highest emphasis on the company's ability to benefit the common good D) balance their obligation to shareholders with contributions to the public good

D

Which of the following is an example of an environmental sustainability interest? A) providing employees educational opportunities B) developing public works in a community C) optimizing diversity in hiring D) minimizing pollutants in manufacturing

D

Which of the following standards for examing ethical dilemmas reflects the view that actions should protect and respect the human dignity of everyone involved? A) fairness approach B) virtue approach C) utilitarian approach D) rights approach

D

Which of the following would most likely be considered an appropriate action for a multinational company in meeting its global corporate social responsibility obligations? A) lowering production costs for specific manufactured items B) improving the efficiency of assembly line operations C) developing a strategic plan to enter an emerging market D) offering jobs to assist local workers in rising out of poverty

D