QUIZ Ch. 1-2, Quiz Ch 3-5, Quiz Ch. 7-8, Quiz Ch. 8-10, Quiz Ch. 11 - 12, Quiz Ch. 13 & 14, Quiz Ch. 15 - 16, Quiz Ch. 17 - 18, Quiz (practice) Ch. 6-7
When a worthwhile action of a company goes above and beyond what is required by government regulations, it is called a: *a)* mandated action. *b)* civil action. *c)* voluntary action. *d)* market action.
*c)* voluntary action
Strategic initiatives where the firm seeks to profit from solving a social problem are an example of: *a)* mandated actions. *b)* market actions. *c)* voluntary actions. *d)* private actions.
*c)* voluntary actions
Franklin D. Roosevelt's efforts to regulate banking and industry, strengthen labor unions, and enact Social Security came to be known as the: *a)* Fair Deal. *b)* Square Deal. *c)* Great Society. *d)* New Deal.
*d)* New Deal
Which of the following sentences would be most likely to convey the right tone in a claim message? *a)* I expected your company to be more professional in handling my order. *b)* You got my order wrong, and want it to be replaced ASAP. *c)* I'm extremely disappointed with your subpar service. *d)* Please send us a replacement by January 1. *e)* I cannot believe that you sent us a broken product!
*d)* Please send us a replacement by January 1.
*T/F* Plato believed that virtues such as courage, temperance, justice, and wisdom which he called "goods of the soul" were superior to "external goods," which he defined as possessions and money.
False
*T/F* Presidents have formal control over rulemaking by independent agencies.
False
*T/F* Regular employees who are expected to remain with the firm forever are known as datsusara.
False
*T/F* Retributive justice allows that pay raises can be distributed on the basis of friendship rather than on performance.
False
*T/F* Rights are an absolute doctrine with definite limits.
False
*T/F* Risk decisions are based solely on science.
False
*T/F* Skeptics call cause-related marketing "conservation philanthropy".
False
*T/F* Soft law creates binding obligations for corporations.
False
*T/F* Some nonverbal communication movements, such as eye contact, are the same in every culture.
False
*T/F* Stock options give an executive the right to buy the company's stock at a variable price in the future and under conditions determined by the board of directors.
False
*T/F* Studies show that as anti-bribery laws in developed nations are enforced, corrupt countries receive less FDI from MNCs headquartered in less corrupt countries.
False
*T/F* The Association of Southeast Asian Nations was formed in 1967 by the Philippines, Indonesia, Malaysia, Singapore, Thailand, and China.
False
*T/F* The Civil Rights Act of 1875 was based on the First Amendment of the U.S. Constitution.
False
*T/F* The Clean Development Mechanism was a carbon offset program set up under the Montreal Protocol.
False
*T/F* The Clean Water Act is effective in eliminating polluted factory outflows.
False
*T/F* The Code of Federal Regulations is a daily government publication containing proposed rules, final rules, and notice of other actions by federal regulatory agencies.
False
*T/F* The Emergency Economic Stabilization Act prohibited federal regulators from exchanging funds for an ownership interest in banks.
False
*T/F* The Golden Rule of ethics is: "Justice is nothing else than the interest of the stronger."
False
*T/F* The Golden Rule of ethics suggests to managers that it is acceptable to treat workers as simply factors of production that should be manipulated in the manager's best interest.
False
*T/F* The Interstate Commerce Commission requires each agency to set up an adjudication process leading to trial before an administrative law judge.
False
*T/F* The OECD Guidelines for Multinational Enterprises is a set of 16 broadly worded principles about protecting and conserving the natural environment.
False
*T/F* The Resource Conservation and Recovery Act ensures that the thousands of abandoned toxic waste sites around the United States are cleaned up.
False
*T/F* The Thirteenth Amendment was intended to prevent Southern states from passing discriminatory laws.
False
*T/F* The agreement by which an employee exchanges his/her labor in return for specific pay and working conditions is known as a compromise agreement.
False
*T/F* The agricultural sector is the most dominant sector in the United States.
False
*T/F* The average board of directors has five members and this has not changed for many years.
False
*T/F* The belief that business should be conducted without reference to the full range of ethical standards, restraints, and ideals in society is known as business ethics.
False
*T/F* The doctrine of liberty of contract gave equal powers to all parties, thus, employers and employees were at an equal footing.
False
*T/F* The ecosystem is home to multiple biospheres.
False
*T/F* The four fundamental standards to protect basic worker rights which have been set forth in various international labor conventions are known as the fair labor standards.
False
*T/F* The grounds of legitimacy of business power are the same in all societies.
False
*T/F* The impact of a regulation on employment, productivity, and innovation is a direct and easy way to calculate the costs of regulation.
False
*T/F* The invisible barrier of sex discrimination that thwarts the advance of women to top corporate positions is known as bamboo ceiling.
False
*T/F* The key to strict liability is that the injured person must prove negligence or breach of warranty to prevail in court.
False
*T/F* The large cohort of workers born between 1946 and 1964 are known as the baby-bust generation.
False
*T/F* The largest and most powerful peak association is the U.S. Legislative Exchange Council, which was founded in 1912.
False
*T/F* The largest source of carbon monoxide is electric utilities burning coal and oil.
False
*T/F* The number of children a woman must have, on average, to assure that one daughter survives to reproductive age is known as total fertility rate.
False
*T/F* The old Progressives seek to avoid being branded as liberals and try to take advantage of favorable connotations in the word "progressive".
False
*T/F* The organized labor was the strongest supporter of the industries.
False
*T/F* The pluralist theory of business power was supported by Karl Marx.
False
*T/F* The popular theoretician of the rising American capitalist spirit was Adam Smith.
False
*T/F* The populists wanted private individuals to own railroad, telegraph, telephone companies, and banks.
False
*T/F* The president nominates two out of the five commissioners of the Federal Trade Commission.
False
*T/F* The principle of equal freedom can act as a tiebreaker when the rights of two managers are in conflict.
False
*T/F* The process of deciding what action to take regarding specific risks is called hazard assessment.
False
*T/F* The progressive movement was a turn-of-the-nineteenth-century social movement that associated moderate social reform with progress.
False
*T/F* The single measure that best captures the activity and power of MNCs is portfolio investment.
False
*T/F* The substitution of revenues from taxes on productivity for revenues from taxes on pollution is known as the environmental tax reform.
False
*T/F* To be effective, performance goals must be general and progress toward them should be measurable.
False
*T/F* Under GATT, the decision of a dispute body can be overturned only by the unanimous veto of all members.
False
*T/F* Utilitarian ethics require that fair criteria be used to assign benefits and burdens to affirmative action.
False
*T/F* What is right or wrong in a business decision involving ethical concerns is always a clear decision.
False
*T/F* When a company signs a DPA or NPA it is indicted.
False
*T/F* When a court makes a monetary award to a plaintiff to correct concrete losses of his business, this is called punitive damages.
False
*T/F* When an implied covenant of good faith is breached, the employer's ability to fire is limitless.
False
*T/F* When ending routine inquiry messages, one should avoid mentioning deadlines and the reasons for them.
False
*T/F* When writing a claim that you have good reason to believe will result in an adjustment, you should use the indirect order.
False
*T/F* When writing a favorable response to a customer inquiry, you should avoid adding comments, questions, suggestions, or additional information even if such material is relevant to the reader's original request.
False
*T/F* Within a pluralistic society, the authoritative entity has an overriding power over all other entities.
False
*T/F* World Bank and IMF loans usually go to developing countries.
False
*T/F* An argument that supports the dominance theory is that there exists a small group of individuals who, by virtue of wealth and position, control the nation.
True
*T/F* An order acknowledgment message begins with good news and ends on a goodwill note.
True
*T/F* At most companies the chairman of the board is the CEO, giving him/her a dual role.
True
*T/F* Bribes paid by managers of one corporation to managers of another are legal under the Foreign Corrupt Practices Act (FCPA).
True
*T/F* Business involvement in politics can take the form of lobbying, in which business exercises influence by advocating positions to lawmakers and officials.
True
*T/F* Carbon offsets are projects that compensate for all or part of a company's greenhouse gas emissions by eliminating the equivalent sum of those emissions from another source.
True
*T/F* Carcinogen is an agent capable of initiating cancer.
True
*T/F* Casual operational messages do not require careful construction or wording.
True
*T/F* Companies must disclose their compensation plans and the annual compensation of the top five executive officers to shareholders.
True
*T/F* Competitive markets operate more efficiently when their participants have enough information to make informed choices.
True
*T/F* Congress not only passes and amends laws but also approves presidential nominees as head regulators and makes appropriations to agencies.
True
*T/F* Congress passed the Securities Act of 1933 requiring companies to register securities and provide financial statements and other information to buyers before their sale.
True
*T/F* Consumerism is a term that describes a society in which people define their identities by acquiring and displaying material goods beyond what they need for subsistence.
True
*T/F* Corporate actions have an impact on society at two levels.
True
*T/F* Corporate charters require the directors of the company to protect the financial interests of the company's stockholders.
True
*T/F* Corporations are formed under national incorporation laws.
True
*T/F* Cost-benefit approaches compromise ecosystems deserving absolute, not conditional, protection.
True
*T/F* Democratic values are one of the features of a pluralistic society.
True
*T/F* Depending on the situation, claim messages can either be written using the direct order or the indirect order.
True
*T/F* Director interlock refers to a situation that arises when an individual sits on the board of directors of two or more corporations.
True
*T/F* During World War II, support for business rebounded in the United States.
True
*T/F* During the Progressive era in U.S. history, business managers were considered to be trustees of their local communities.
True
*T/F* Extrapolation is the process of inferring the value of an unknown state from the value of another state that is known.
True
*T/F* Facilitation payments violate anti-bribery laws in almost every nation but are still widely tolerated.
True
*T/F* G. William Domhoff argues the existence of a cohesive American upper class based on wealth, socialization in private schools, memberships in exclusive clubs, and occupancy of high positions in business, government, and nonprofit institutions.
True
*T/F* Geography, history, and religion all play major roles in influencing culture.
True
*T/F* Guidance is information published in nonbinding documents like memoranda and circulars intended to clarify official regulations.
True
*T/F* Hand gestures vary in meaning from culture to culture.
True
*T/F* Hazardous air pollutants are chemical emissions that pose a health risk of serious illness such as cancer or birth defects with small inhalation exposures.
True
*T/F* Immediately after the U.S. Civil War, big business dominated both the federal government and the state governments to an extent that has not been seen since that time.
True
*T/F* Immigration generally brings an influx of younger workers who are less costly and more adaptable.
True
*T/F* In 2009, Congress gave the Food and Drug Administration the power to regulate cigarettes and smokeless tobacco.
True
*T/F* In global production, a value chain can span two or more countries.
True
*T/F* In many fifth-tier companies, there is a strong trend toward more centralized authority rather than more "statelessness."
True
*T/F* In terms of a company's social report, the opposite of transparency is opacity.
True
*T/F* In the U.S. Declaration of Independence, "unalienable" rights are considered natural rights that cannot be taken away by government.
True
*T/F* Job descriptions that include sustainability duties encourage accountability.
True
*T/F* Laws that prohibit retail stores from being open for business on Sundays are called blue laws.
True
*T/F* Leadership from the top is critical for the success of diversity management programs.
True
*T/F* Lobbyists have been regulated since 1946, when they were first required to register with the clerks of the House and Senate.
True
*T/F* Measures enacted in the South from 1877 to the 1950s legalizing segregation in public places, buses, trains, restaurants, schools, and businesses were known as Jim Crow laws.
True
*T/F* Milton Friedman believes that the sole objective of managers should be maximization of profit.
True
*T/F* Most U.S. companies have a written code of ethical conduct.
True
*T/F* Most companies now design their compensation discussions to satisfy regulators rather than as a communication to the average shareholder.
True
*T/F* Most mission statements center on profits and products.
True
*T/F* Most shareholders follow management's voting recommendations.
True
*T/F* NGOs are a major force in the ways that government and business operate.
True
*T/F* Natural selection is the evolutionary basis of ethics.
True
*T/F* No matter what the source of a code of conduct, the target is the corporation.
True
*T/F* Nonpolluting economic growth that raises standards of living without depleting the planet's resources of the earth is called sustainable development.
True
*T/F* One critic refers to the process of neoliberal conquest as "necrocapitalism", or the creation of death zones that subjugate life to wealth creation.
True
*T/F* One disability-adjusted life year (DALY) equals one lost year of healthy life.
True
*T/F* One main argument against protectionism is that a major cause of the rise in world trade is the widespread reduction in defensive barriers.
True
*T/F* One way to characterize the cost of regulation is to calculate its total dollar cost.
True
*T/F* Participation in affinity groups decreases an individual's sense of isolation in a work culture.
True
*T/F* Philosopher G. E. Moore believed that a good manager can "sense" the difference between right and wrong behavior.
True
*T/F* Radon is an inert, colorless, and odorless gas found in soil and rock formations.
True
*T/F* Regulation is the effort by governments to achieve economic or social outcomes by directing the behavior of citizens, groups, and corporations.
True
*T/F* Statutes rarely contain all the specific rules needed to assure that their intended purpose is achieved.
True
*T/F* Structural change refers to any shift in the proportions of agricultural, goods-producing, and service occupations in an economy.
True
*T/F* Superfund refers to a federal program that was set up in 1980 to clean up toxic waste sites.
True
*T/F* The "Buy American" laws seek to influence governments and agencies to purchase U.S.-made goods and services rather than foreign-made goods and services.
True
*T/F* The 80 percent rule is the statistical test to measure disparate impact.
True
*T/F* The CO2e is a universal measure that uses the warming potential of carbon dioxide as a reference for the relative warming potential of the six greenhouse gases covered by the Kyoto Protocol.
True
*T/F* The Civil Rights Act of 1960 is the cornerstone of the structure of laws and regulations enforcing equal opportunity.
True
*T/F* The Consumer Product Safety Commission has the power to ban the sales of products that expose consumers to unreasonable risks.
True
*T/F* The First Amendment to the U.S. Constitution gives businesses the right to pursue their agenda with the federal government.
True
*T/F* The Industrial Workers of the World (IWW), formed in 1905, proposed to represent all workers of both sexes and all races in the fight to overthrow the capitalist system.
True
*T/F* The Nineteenth Amendment to the U.S. Constitution gave women the right to vote.
True
*T/F* The OECD is a group of 33 nations formed in 1961 as an outgrowth of cooperation to rebuild Europe after World War II.
True
*T/F* The Resource Conservation and Recovery Act of 1976 gave EPA the authority to manage hazardous waste from the moment it is created to the moment it is finally destroyed.
True
*T/F* The Securities and Exchange Commission (SEC) regulations stipulate that a company must include a shareholder's proposal in its proxy statement if it meets specified requirements.
True
*T/F* The Sullivan Principles was a 1977 code of conduct that required multinational corporations in South Africa to do business in a nondiscriminatory way.
True
*T/F* The Toxics Release Inventory is an Environmental Protection Agency Program that requires facilities handling any of 650 hazardous chemicals to disclose amounts each year that are released or transferred.
True
*T/F* The Tripartite Declaration came in response to the rising power of multinational corporations in the 1960s.
True
*T/F* The U.S. Constitution allows for judicial review of laws to determine if officials of the government exceed their authority.
True
*T/F* The U.S. Constitution is a federal system in which governmental powers are divided between a national government and 50 state governments.
True
*T/F* The ability to make quick and smooth shifts of workers into and out of jobs, companies, or industries as business conditions change is known as labor flexibility.
True
*T/F* The application of one nation's laws within the borders of another nation is known as extraterritoriality.
True
*T/F* The basic purpose of the study of ethics is to have individuals in society act cooperatively as a social whole.
True
*T/F* The conventionalist ethic is a thin justification for questionable behavior by managers.
True
*T/F* The doctrine of liberty of contract allowed employers and workers to negotiate all aspects of the employment contract without any government interference.
True
*T/F* The dominance theory holds that business is preeminent in American society, primarily because of its control of wealth, and that its power is both excessive and inadequately checked.
True
*T/F* The duty of a company to create wealth in ways that avoid harm to, protect, or enhance societal assets is called corporate social responsibility.
True
*T/F* The economic and political factors within a society affect an individual's chances for justice to be served.
True
*T/F* The idea that the needs of workers should be subordinate to the needs of the organization is fundamental to the organization ethic.
True
*T/F* The laws of the United States have been shaped by the consequences of the industrial activities.
True
*T/F* The most effective assurance that information in a corporate sustainability report is correct is provided by independent, external auditors.
True
*T/F* The opening of a routine inquiry should focus on the main objective.
True
*T/F* The pay of top corporate officers is set by the board of directors.
True
*T/F* The primary motive of companies investing in LDCs is getting an adequate return on capital invested.
True
*T/F* The principle of caveat emptor imposes on buyers the responsibility to inspect carefully and skeptically items they purchase.
True
*T/F* The removal or substantial reduction of the body of regulation covering an industry is known as deregulation.
True
*T/F* The social welfare model is a form of industry-labor-government cooperation in which government strongly regulates the labor market to secure expansive rights and generous benefits for workers.
True
*T/F* The strength to act or to compel another entity to act is called power.
True
*T/F* The triple bottom line has become the most accepted approach to CSR reporting because it can satisfy a range of demanding stakeholders.
True
*T/F* The virtue ethic states that ethical behavior arises from the virtues within one's character.
True
*T/F* There can be many subcultures within one culture.
True
*T/F* There is no single formula for social responsibility that fits all companies.
True
*T/F* There is no specific part of the brain that makes ethical decisions.
True
*T/F* There is overwhelming evidence that individuals are influenced to be more or less ethical by the situations they are in.
True
*T/F* Thomas Jefferson believed that an agrarian economy would prevent the rise of subservience to the wealthy and bring a state of equality, basic justice, and concern for the common good.
True
*T/F* Top managers are the strongest influence on the integrity of the company's managers.
True
*T/F* When a company changes its philosophy of giving money to charitable organizations from pure generosity to commercial objectives, it is called strategic philanthropy.
True
*T/F* When responding to an inquiry with two or more questions, a good approach is to answer the questions in the body of your message in the same order your reader used in asking them.
True
*T/F* Your goal in a claim message is to convince your reader that you deserve a remedy or compensation for the situation that has occurred.
True
Which of the following is a category used by the HDI (Human Development Index) to measure the development of nations? *a)* Longevity *b)* Flexibility *c)* Resilience *d)* Dynamism
*a)* Longevity
An entity headquartered in one country that does business in one or more foreign countries is called a(n): *a)* MNC. *b)* LDC. *c)* TNI. *d)* FDI.
*a)* MNC
Creation of externalities such as pollution and resource depletion come under which force of globalization? *a)* MNCs *b)* Governments *c)* Capital *d)* NGOs
*a)* MNCs
Which of the following defines a business, differentiates it from competitors, explains relationships with stakeholders, and focuses energy on critical activities and goals? *a)* Mission statement *b)* Annual report *c)* Social contract *d)* Code of conduct
*a)* Mission statement
The World Bank is an example of which force in globalization? *a)* Multilateral organizations *b)* Technology *c)*Ideas *d)* Labor
*a)* Multikaterak organizations
Which of the following ethical principles is primarily a perfectionist rule for interpersonal relations? *a)* The Golden Rule *b)* The organization ethic *c)* The Doctrine of the Mean *d)* The principle of equal freedom
*a)* The Golden Rule
In terms of a company's social reports, the opposite of _____ is: *a)* opacity; hidden. *b)* transparency; opacity. *c)* altruism; opacity. *d)* transparency; altruism.
*b)* transparency; opacity
According to John Locke, for governments the opposite of power is ____, defined as "the exercise of power beyond right." *a)* monarchy *b)* tyranny *c)* oligarchy *d)* theocracy
*b)* tyranny
At one point of time, courts consistently held charitable gifts to be ____, that is, "beyond the law," because the charters prevalent during that time did not expressly permit them. *a)* bona fide *b)* ultra vires *c)* mala fide *d)* ab extra
*b)* ultra vires
Natural rights are: *a)* limited within a community. *b)* unalienable rights. *c)* relative to specific cultures. *d)* codified into statutes.
*b)* unalienable rights
Research suggests that in heavily regulated labor markets: *a)* firm size is bigger. *b)* unemployment lasts longer. *c)* companies invest more in new technology. *d)* the labor force is more skilled.
*b)* unemployment lasts longer
The Montreal Protocol set timetables to phase out worldwide: *a)* elimination of leaded gasoline. *b)* use of 96 ozone-depleting chemicals. *c)* emission of greenhouse gases. *d)* build-up of radon.
*b)* use of 96 ozone-depleting chemicals
One problem with _____ is that in practice it has led to self-interested reasoning. *a)* the conventionalist ethic *b)* utilitarianism *c)* the disclosure rule *d)* proportionality
*b)* utilitarianism
The idea that character development is the wellspring of ethical behavior is known as the: *a)* Golden Rule. *b)* disclosure rule. *c)* virtue ethic. *d)* equal freedom ethic.
*c)* virtue ethic
The force to act or to compel another person or entity to act is called: *a)* power. *b)* regulation. *c)* justice. *d)* management.
*a)* power
Bias by humans toward members of their own class and prejudice against members of other kind is known as: *a)* speciesism. *b)* objectivism. *c)* utilitarianism. *d)* supremacism.
*a)* speciesism
Formulas for CEO compensation are almost universally focused on attaining: *a)* specific financial goals. *b)* performance goals. *c)* core values of responsibility. *d)* core values of citizenship.
*a)* specific financial goals
A(n) _____ approach teaches employees to meet legal and regulatory requirements and emphasizes following rules. *a)* ethics *b)* compliance *c)* moral *d)* value-based
*b)* compliance
*T/F* A critical function of managers is to create strong competitive strategies that enable a company to meet its strategic objectives even if it means encouraging ethical compromise.
False
*T/F* Corporate philanthropy is a large part of overall private philanthropy in the U.S. every year.
False
*T/F* Corporate social responsibility has a definite, universal meaning.
False
*T/F* Economist Thorstein Veblen argued that in the new industrial society, people earned their status by conquest in warfare.
False
*T/F* In 1907, Progressive reformers passed the Adamson Act, making it a crime for banks and corporations to directly contribute to candidates in federal elections.
False
*T/F* In the United States, company charters are granted by the federal government.
False
*T/F* International law found in treaties, conventions, and trade agreements strongly address the social impacts of businesses.
False
*T/F* Protectionism is principally an economic issue.
False
*T/F* Sexual harassment is illegal under Title VII of the Civil Rights Act of 1957.
False
*T/F* Almost all FDI comes from multinational corporations.
True
*T/F* Ethical intuition is a form of social intuition.
True
*T/F* Executives are more often prosecuted than corporations, though harder to convict.
True
*T/F* Governments advance corporate responsibility mainly with binding national regulation.
True
*T/F* In the United States, common law holds that employers and employees may enter voluntary employment contracts and that either party may freely end these agreements anytime.
True
*T/F* Milton Friedman, his colleagues, and their free market ideas came to be called the Chicago School.
True
*T/F* Predictable and strong forces in a pluralistic, free market society limit business power.
True
*T/F* Quid pro quo is a situation, defined as illegal, when submission to sexual activity is required to get or keep a job.
True
*T/F* The catastrophic Depression of the 1930s brought to light much ineptness, criminal negligence, and outright fraud by prominent executives.
True
*T/F* The categorical imperative, an ethical guide for behavior, is based on the writings of German philosopher Immanuel Kant.
True
*T/F* The current WTO-led multilateral trading system has yet to produce a major advance in trade liberalization.
True
*T/F* The market price of a ware refers to the price that is determined by the interaction of supply and demand.
True
*T/F* The maximum achievable control technology is a performance standard used by the Environmental Protection Agency to control emissions of hazardous air pollutants.
True
*T/F* The scientific process of discovering and weighing the dangers posed by pollutants is called risk assessment.
True
*T/F* The sector of occupations that add value to manufactured goods is known as the service sector.
True
*T/F* The six environmental forces that create turbulence in the workplace are interconnected.
True
*T/F* The technique of generating the public's support for the position of a company is called grassroots lobbying.
True
*T/F* The top management of a company sets the tone for the company's social goals.
True
*T/F* The transfer of work from a domestic to a foreign location is known as offshoring.
True
*T/F* When an MNC invests funds to acquire a foreign company, this is called a foreign direct investment.
True
*T/F* When communicating with a nonnative English speaker, it is best to err on the side of simplicity to increase the likelihood of clear communication.
True
*T/F* With a restricted stock, the recipient receives dividends and can vote the shares but cannot sell them until the restriction is lifted.
True
Combining two or more questions in a sentence
de-emphasizes each question
What did Karl Marx believe?
That owners of capital exploited and promoted systems of rising inequality
Which BGS relationship model describes business as responding primarily to economic forces in society?
The market capitalism model
What is the replacement fertility rate?
The number of children a woman must have on average to ensure that one daughter survives to reproductive age is known as the replacement fertility rate.
_____ is a statement or vision that creates insight by describing patterns or relationships in a diffuse subject matter.
Theory
The belief that business should be conducted without reference to the full range of ethical standards, restraints, and ideals in society
Theory of Amorality
What are the central forces of current economic globalization?
Transnational Corporations
____, especially a few hundred of the largest headquartered in developed nations, are the central forces of current economic globalization.
Transnational corporations
This is the state in which company social policies, processes, and actions are visible to external observers.
Transparency
An accounting of a firm's economic, social, and environmental performance
Triple Bottom Line
*T or F:* The economic environment consists of forces that influence market operations, including overall economic activity, commodity prices, interest rates, currency fluctuations, wages, competitors' actions, and government policies.
True
*T or F:* The nation-state is the unit of human organization in which individuals and cultural groups can influence their circumstances and future.
True
*T or F:* The number of children a woman must have on average to ensure that one daughter survives to reproductive age is known as the replacement fertility rate.
True
*T/F* A strategy is a basic approach, method, or plan for achieving an objective.
True
*T/F* A tort is a private wrong committed by one person against another person or his/her property.
True
*T/F* All corporate cultures have ethical dimensions.
True
*T/F* An agrarian society is a preindustrial society in which economic, political, and cultural values are based on agricultural experience.
True
*T/F* Edwardo and his coworkers often show up and start meetings fifteen or even thirty minutes later than scheduled, indicating that they are probably members of a polychronic culture.
True
*T/F* Elites challenge the logic of democratic ideology because in spite of being few in number they pilot the vast majority.
True
*T/F* Enlightenment led to the rise of the idea that human beings are ends in themselves.
True
*T/F* Even today, occupational segregation places many women in female-dominated occupations that tend to be lower paying than male-dominated ones.
True
*T/F* Even without making direct investments in a nation, powerful MNCs can shake its economy.
True
*T/F* For corruption to exist there must be both demand and supply.
True
*T/F* In low-context cultures, individualism is highly valued.
True
*T/F* Plutocracy refers to a society that is ruled by the wealthy.
True
*T/F* Political scientist Thomas R. Dye identified an "institutional elite" of individuals who occupied the top positions in 10 sectors.
True
*T/F* Rights have corresponding duties associated with them.
True
*T/F* Risk management decisions are based on the social sciences—law, economics, politics, and ethics.
True
*T/F* Social responsibility is still frequently seen as a superfluous activity only indirectly related to the bottom line, one that costs money, takes time, and reduces efficiency.
True
*T/F* Socialism is a classless social system in which property is collectively owned and income from labor is equally and indiscriminately divided among members.
True
*T/F* Sometimes those using the name multinational mean to imply that these companies have erased national allegiances, becoming itinerant firms that move investment and activity from nation to nation in search of profits.
True
*T/F* Standards of ethical behavior were arguably clearer in ancient Greek civilization than they are now.
True
*T/F* The United States is not a party to the Kyoto Protocol.
True
*T/F* The environmental management system is an asset of methods and procedures for aligning corporate strategies, policies, and operations with principles that protect ecosystems.
True
*T/F* The great run of free trade ended with World War I, which inflamed global markets with national conflicts.
True
*T/F* The independent regulatory commission is a regulatory agency run by a small group of commissioners independent of political control.
True
*T/F* The inherent power of state governments to regulate economic and social relationships for the welfare of all citizens is known as police power.
True
*T/F* Training is the key to communicating ethics and compliance knowledge.
True
*T/F* Two word verbs combine a verb with a second element to create a different meaning than the two words would have on their own.
True
*T/F* Unlike command regulation, environmental taxes allow polluters to forgo, change, or control production in any way that reduces compliance costs.
True
*T/F* When Congress passes an environmental law, Environmental Protection Agency employees write the detailed, specific rules needed to make it work.
True
*T/F* When companies dominate an industry, they may engage in unfair or destructive competition.
True
*T/F* When compensation committees base salaries and bonuses on median levels in a group of peer companies, they often choose larger peers.
True
*T/F* When managers are convicted of criminal behavior, prison sentences are imposed based on a numerical point system.
True
Which type of culture thinks extensive planning is unwise and views being on time to an event as being fairly unimportant?
polychronic
When you believe that your reader's response will be ________ or ________, the direct organizational plan is appropriate.
positive; neutral
Geert Hofstede refers to the way people view relationships between superiors and subordinates as ____
power distance
Business
a profit-making activity that provides products and services that are intended to satisfy human needs
Capitalism
an economic ideology with a bundle of values, including: - private ownership of means of production - the profit motive - free competition - and limited government restraint in markets
Which procedure involves two translators, one with first-language skills in one language, and one with first-language skills in another, translating a message from one language to another and then back to the first language so that the original message can be compared with the second translation?
back translating
Elisa grew up speaking Spanish, but learned to speak English as an adult, and she now works as a translator for a U.S. company that has frequent business interactions with South American businesses. Elisa's translating skills are good, and the company typically relies on her alone to do their translating. However, they are currently involved in negotiating an extremely important contract and need the wording in Spanish to be exactly right, so they hire George, a freelance translator and native English speaker to help. Elisa translates the English message into Spanish, and George translates the Spanish message back into English. They then compare the original message with George's translation to make sure they match. What process have Elisa and George completed?
back translation
When composing good-news and neutral messages, one may
begin the message with a brief orienting clause
If you are seeking only one piece of information in a routine inquiry message, you should
begin the message with a specific question
The way that Calista and the other people from her native city collectively understand and interpret the world is referred to as their
culture
Tamiko and her friends all have social media accounts that they use to talk to each other. However, they rarely add people that they don't know very well to their friends lists, and they almost never comment on posts made by companies or celebrities because they don't want to overstep their authority. Tamiko and her friends are likely members of a
culture with a high power distance
On which of the following levels does corporate power shape society over time through the aggregate changes of industrial growth? *a)* Deep level *b)* Apparent level *c)* Exterior level *d)* Surface level
deep level
The _____ model believes that it is undemocratic for corporations and the powerful elite to control a system that enriches a few at the expense of many.
dominance
The _____ environment consists of forces that influence market operations, like commodity prices and interest rates.
economic
The study of phenomena that move through time is called __.
history
The Protestant work ethic is the belief that
if hard work is put ahead of pleasure, success will follow
Carly and Trent own a small graphic design company together. They can make decisions for the company by themselves, but they often ask for input from other employees and believe that decisions made by consensus tend to be better for the company as a whole. Carly and Trent's company has a(n) ________ culture.
low power distance
A culture where people tend to express themselves directly and explicitly is a(n) ________ culture.
low-context
Melissa wants her company to adopt more environmentally friendly practices, so she has created a presentation to give to the board of directors. She begins her presentation by explaining some background information on these practices, such as why they are important for the environment and the company's image. Melissa then moves on to discussing exactly what measures she feels her company should adopt, and why she feels they are the best options. Given this information, Melissa is most likely from a(n) ________ culture.
low-context
________ refers to a market economy in which the dominant businesses are large firms run by salaried managers, not smaller firms run by owner-entrepreneurs.
managerial capitalism
A conclusion that can be drawn from the _____ model is that business is deeply integrated into an open society and must respond to multiple economic and noneconomic factors.
market capitalism
Living Planet Index
measures the state of the world's biological diversity based on population trends among terrestrial, freshwater and marine vegetable species
A culture that sees time as something that must be planned to be used as efficiently as possible is
monochronic
When meeting with clients, Rachelle avoids spending time chatting about things like what they did last weekend or what movie they saw most recently. Instead, she focuses on getting down to business so that the meeting ends on time and she can move on to her next task for the day. Rachelle most likely belong to a(n) ________ culture.
monochronic
What are the *(9)* Deep Historical Forces
o Industrial Revolution o Inequality o Population Growth o Technology o Globalization o Nation-States o Ideologies o Great Leaaders o Chance
What *(6)* ideologies facilitated the Industrial Revolution?
o Social Darwinism o Darwinism o Protestant ethic o *Capitalism* o *Constitutional Democracy* o *Progress*
List (5) primary stakeholders in a corporation.
*1)* stockholders *2)* customers *3)* employees *4)* communities *5)* governments
All of the following countries are part of NAFTA except: *a)* Argentina. *b)* Canada. *c)* the United States. *d)* Mexico.
*a)* Argentina.
The First Amendment is an amendment to the Constitution added in 1791 as part of the: *a)* Bill of Rights. *b)* Declaration of Independence. *c)* USA PATRIOT Act. *d)* Natural and Legal Rights.
*a)* Bill of Rights
_____ is Latin for "let the buyer beware". *a)* Caveat emptor *b)* Actus reus *c)* Caveat venditor *d)* Mens rea
*a)* Caveat emptor
Which of the following is a relevant categorization of stakeholders according to their orientation to the firm? *a)* Confrontational, neutral, or supportive *b)* High, medium, or low influence *c)* Neutral, low, or medium influence *d)* Feminists, investors, or environmentalists
*a)* Confrontational, neutral, or supportive
The _____ Act mandates that most new rules cannot go into effect until 60 days after they have been sent to Congress for analysis. *a)* Congressional Review *b)* Administrative Procedure *c)* Congressional Accountability *d)* Apportionment
*a)* Congressional Review
Identify the corporate culture level that encompasses formal statements of belief and intention. *a)* Espoused values *b)* Artifacts *c)* Enacted values *d)* Tacit underlying values
*a)* Espoused values
Which of the following is a part of the tiers of internationalization? *a)* Export sales *b)* Indirect investments *c)* Importing essential goods *d)* Portfolio investment
*a)* Export sales
Which of the following methods is used to infer the value of an unknown state from the value of another state that is known? *a)* Extrapolation *b)* Hazard assessment *c)* Interpolation *d)* Contingent valuation
*a)* Extrapolation
What is the main focus of the Dodd-Frank Act? *a)* Financial reform *b)* Protected speech *c)* Racial harassment *d)* Tort reform
*a)* Financial reform
What are the two broad areas of business involvement in politics? *a)* Lobbying and electoral activity *b)* Lobbying and bribery *c)* Gratuity and electoral activity *d)* Bribery and gratuity
*a)* Lobbying and electoral activity
Intense competition between corporations works to bring consumers: *a)* lower prices. *b)* lower quality. *c)* less choices. *d)* average quality.
*a)* lower prices
Risk management decisions are based on the:
*a)* social sciences
FDI is an example of which force in globalization? *a)* Ideas *b)* Capital *c)* Labor *d)* Technology
*b)* Capital
Aristotle's idea that "virtue requires moderation" is an essential part of the: *a)* disclosure rule. *b)* Doctrine of the Mean. *c)* might-equals-right ethic. *d)* intuition ethic.
*b)* Doctrine of the Mean
The fundamental objective of what organization was to prevent a recurrence of Europe's devastating wars such as World War I and World War II. *a)* IMF *b)* EU *c)* WTO *d)* NAFTA
*b)* EU
Which of the following is true about the OECD Guidelines? *a)* An informal process exists to "encourage" observance of the guidelines. *b)* Each government that joins in the guidelines sets up an office, called a "national contact point." *c)* Observance of the guidelines is obligatory. *d)* There are legal sanctions and penalties for violations of the guidelines.
*b)* Each government that joins in the guidelines sets up an office, called a "national contact point."
Which of the following is true regarding the government structure created by the American Constitution? *a)* It concentrates power. *b)* It invites business and other interests to attempt to influence the government. *c)* It does not require cooperation between levels and branches of government that share power. *d)* It creates a single point of access.
*b)* It invites business and other interests to attempt to influence the government.
Which of the following statements about the laissez-faire concept is true? *a)* It stands for the belief that government intervention in the market is desirable. *b)* It lessens the efficiency with which free enterprise operates to benefit consumers. *c)* It is necessary because market forces are benevolent. *d)* It opines that businesses are responsible for correcting social problems.
*b)* It lessens the efficiency with which free enterprise operates to benefit consumers.
Which of the following statements about the countervailing forces model is true? *a)* It represents primarily the perspective of business critics. *b)* It reflects the BGS relationship in Western industrialized nations. *c)* It stands for the belief that government intervention in the market is undesirable. *d)* It assumes that individuals can own private property and freely risk investments.
*b)* It reflects the BGS relationship in Western industrialized nations.
Which of the following statements about the expression of emotions is true? *a)* Laughter is always viewed as a spontaneous display of pleasure. *b)* Some Middle Eastern cultures express sorrow with loud wailing. *c)* Asian cultures tend to prefer strong public displays of affection. *d)* Westerners frown on public displays of affection. *e)* The expression of emotion is frowned upon in business situations.
*b)* Some Middle Eastern cultures express sorrow with loud wailing.
Ozone, when present in what major layer of the Earth's atmosphere, screens out ultraviolet energy harmful to living tissue. *a)* Mesosphere *b)* Stratosphere *c)* Troposphere *d)* Thermosphere
*b)* Stratosphere
This theory follows that maximum gain on a worldwide basis will be realized if there are no impediments to trade, if there is free competition in pricing, and if capital flows are unrestricted. *a)* The marginalist theory *b)* The law of comparative advantage *c)* "Buy American" laws *d)* The Doctrine of Protectionism
*b)* The law of comparative advantage
Which principle states that a manager will act ethically if the good effects outweigh the evil? *a)* The principle of justice *b)* The principle of double effect *c)* The principle of utility *d)* The principle of equal freedom
*b)* The principle of double effect
In making a decision using this principle, one must determine whether the harm in an action is outweighed by the good. *a)* The organization ethic *b)* The utilitarian ethic *c)* The categorical imperative *d)* The practical imperative
*b)* The utilitarian ethic
In which of the following ways did the railroads change American politics on the surface level? *a)* Trains brought delegates to national party nominating conventions, changing the way candidates were picked. *b)* Their lobbyists could dominate legislatures. *c)* Trains enabled all sorts of associations to have national meetings. *d)* The movement to give women the vote succeeded after Susan B. Anthony took trains to all parts of the country, spreading her rhetoric and unifying the cause.
*b)* Their lobbyists could dominate legislatures.
Exporting a product at a price below the price it normally sells for in its home market is known as: *a)* structural adjustment. *b)* dumping. *c)* free trade. *d)* offshoring.
*b)* dumping
Activity in the _____ sphere is the primary force of change and from this, change radiates to other spheres. *a)* environmental *b)* economic *c)* social *d)* political
*b)* economic
A(n) _____ is an animated, interactive realm of plants, animals, and microorganisms inhabiting an area of the nonliving environment. *a)* niche *b)* ecosystem *e)* biotope *d)* ionosphere
*b)* ecosystem
A(n) _____ warranty is a categorical claim made by the manufacturer to the buyer regarding a product or service. *a)* nenko *b)* karoshi *c)* kaizen *d)* salaryman
*b)* express
Shares of company stock awarded after a fixed period of years if individual and company performance goals are met are called: *a)* time shares. *b)* performance shares. *c)* stock options. *d)* restricted stock.
*b)* performance shares
Which of the following is NOT an element of risk assessment? *a)* Risk characterization *b)* Exposure assessment *c)* Control options *d)* Dose-response assessment
*c)* Control options
What type of change is caused by the processes of job creation and job destruction that alter the mix of work in an economy? *a)* Technological *b)* Demographic *c)* Structural *d)* Legislative
*c)* Structural
Which of the following is true regarding the Interstate Commerce Commission? *a)* It was an executive agency. *b)* It was run by 10 commissioners. *c)* The commissioners served staggered six-year terms. *d)* Five of the commissioners were to be of any one political party.
*c)* The commissioners served staggered six-year terms.
Which ethical principle is grounded on the idea that every individual has protections and entitlements that need to be respected by others? *a)* The intuition ethic *b)* The organization ethic *c)* The rights ethic *d)* The disclosure rule
*c)* The rights ethic
Small particles formed in the atmosphere by photochemical reactions of gases found in urban smog are known as: *a)* inorganic compounds. *b)* precipitants. *c)* condensibles. *d)* volatile organic compounds.
*c)* condensibles
When a manager "cuts corners" by acting in questionable ways, he/she is acting according to the: *a)* rights ethic. *b)* intuition ethic. *c)* ends-means ethic. *d)* utilitarian ethic.
*c)* ends-means ethic
The impact of a company on nature is called its: *a)* social power. *b)* technological power. *c)* environmental power. *d)* economic power.
*c)* environmental power
The idea that ethical consumers will pay a premium for commodities from producers in developing nations who use sustainable methods is known as: *a)* moral purchasing. *b)* free trade. *c)* fair trade. *d)* safe trade.
*c)* fair trade
A manager makes ethical decisions based on what he feels he can get away with given his power in the organization's hierarchy. He is using the principle of the: *a)* categorical imperative. *b)* intuition ethic. *c)* might-equals-right ethic. *d)* disclosure rule.
*c)* might-equals-right ethic
The belief that history is a narrative of improvement in which humanity moves from lower to higher levels of perfection is known as: *a)* capitalism. *b)* speciesism. *c)* progress. *d)* sustainable development.
*c)* progress
Which of the following products is regulated by the CPSC? *a)* Pesticides *b)* Firearms *c)* Cosmetics *d)* Bicycles
*d)* Bicycles
Which of the following is a competitiveness goal? *a)* Job security *b)* Limited hours *c)* Collective bargaining *d)* Create jobs
*d)* Create jobs
Under which of the following forces of globalization does environmentalism come? *a)* MNCs *b)* Governments *c)* Capital *d)* Ideas
*d)* Ideas
Which of the following refers to a basic approach, method, or plan for achieving an objective? *a)* Vision *b)* Initiative *c)* Mission *d)* Strategy
*d)* Strategy
According to this theory, efficiency and the general economic welfare are optimized when each country produces that for which it enjoys a cost advantage. *a)* The marginalist theory *b)* The Doctrine of Protectionism *c)* "Buy American" laws *d)* The law of comparative advantage
*d)* The law of comparative advantage
Governments cannot grant or take away _____ rights. *a)* civil *b)* legal *c)* statutory *d)* natural
*d)* natural
In Japanese industries, a community firm is a company that: *a)* consolidated into national entities with deeply antagonistic goals. *b)* avoids hinted promises of job tenure. *c)* is owned and operated by a group of individuals for their mutual benefits. *d)* operates on a model analogous to a family.
*d)* operates on a model analogous to a family
Directors who are not employees of the company are: *a)* inside directors. *b)* independent directors. *c)* lead directors. *d)* outside directors.
*d)* outside directors
Most multinational corporations (MNCs) are: *a)* public enterprises. *b)* state-owned. *c)* cooperatives. *d)* private enterprises.
*d)* private enterprise
A(n) _____ is a government entity that invests the savings of a nation. *a)* angel investor *b)* private investor *c)* central bank *d)* sovereign wealth fund
*d)* sovereign wealth fund
The practice of a corporation publishing information about its economic, social, and environmental performance is known as: *a)* sustainability accounting. *b)* global indexing. *c)* global reporting initiative. *d)* sustainability reporting.
*d)* sustainability reporting
According to the Environmental Protection Agency: *a)* a sublinear relationship exists between the amount of exposure to a toxic substance and the effect it has on human health. *b)* in the absence of a clear understanding of dose-response relationships at low doses, risk estimates should be based on a sublinear or threshold curve. *c)* there should be more regulation to limit human exposure when the risk estimate is based on the linear curve. *d)* the higher the inferred risk, the more justification there is for high expenditures to control polluting emissions.
*d)* the higher the inferred risk, the more justification there is for high expenditures to control polluting emissions.
Gases that evaporate from liquid or solid carbon-based compounds and, which, in sunlight react with other pollutants to form urban smog are known as: *a)* particulate matters. *b)* gas flares. *c)* greenhouse gases. *d)* volatile organic compounds.
*d)* volatile organic compounds
A contract in which the seller guarantees the nature of the product is known as a(n): *a)* entitlement. *b)* privilege. *c)* condition. *d)* warranty.
*d)* warranty
Which of the following illustrates the most positive way of explaining a shipping delay? *a)* Your order of 20 bolts of dyed silk will not be shipped until March 30 due to a production delay. *b)* Due to unforeseen circumstances, we are unable to ship your order. *c)* We cannot ship the bolts of dyed silk you have ordered until next month, because dyeing does not resume until February 1. *d)* Because we aren't producing dyed silk at this time, you will receive your order sometime in late March. *e)* Our silk dyeing process resumes on February 1; your order of 20 bolts of dyed silk will arrive on March 30.
*e)* Our silk dyeing process resumes on February 1; your order of 20 bolts of dyed silk will arrive on March 30.
Which of the following is the most effective method of making questions stand out in a routine message? *a)* including as many questions as possible in each paragraph *b)* placing all the questions in a single paragraph *c)* combining two or more questions in a sentence *d)* avoiding the use of bullets to list questions *e)* structuring questions in true question form
*e)* structuring questions in true question form
When speaking with an unfamiliar audience made up of nonnative English speakers, you should
talk clearly and use simple words and sentence structure
Social contract
the basic agreement between a business and its society that defines the broad duties of the business that are needed to retain the support of society
Identify Secondary Stakeholders
- Suppliers, Competitors, and Creditors - Trade Associations and Unions - Political Parties, Political Interest Groups, and Religious Groups - The Media and Educational Institutions - The Earth's Biosphere, Future Generations and the Poor
The Human Development Index scale ranges from:
-1 to +1
Institution
A formal pattern of relations that links people to accomplish a goal
Economic Activity
A geophysical force with power to change the natural environment
Society
A network of human relations composed of ideas, institutions, and material things
Populism
A political pattern, recurrent in world history, in which common people who feel oppressed or disadvantaged seek to take power from a ruling elite seen as thwarting fulfillment of the collective welfare
Ideology
A set of beliefs and values that create a specific view of the world fulfills the human need for concepts and categories of meaning that explain daily life
Theory
A statement or vision that creates insight by describing patterns or relationships in a diffuse subject matter A good theory is concise and simplifies complex phenomena
Material things
the tangible artifacts of a society that shape and are shaped by ideas and institutions
Culture
A system of shared knowledge, values, norms, customs, and rituals acquired by social learning
Strategic Management
Actions taken by managers to adapt a company to changes in its market and sociopolitical environments
Who wrote "The Wealth of Nations"?
Adam Smith
What observation did Adam Smith make?
Adam Smith observed that the desire to trade for mutual advantage lies deep in human instinct
The Industrial Revolution
An economic metamorphosis in England in the late 1700s It occurred when certain necessary conditions were present and shifted the country from a simple agrarian economy into a growing industrial economy
Idea
An intangible object of thought
____ is the act of a corporation cloaking its lack of social responsibility by insincere membership in the UN Global Compact.
Bluewashing
_____ is a form of government requiring popular sovereignty, political liberty, and majority rule.
Democracy
The _____ measures human consumption of renewable natural resources.
Ecological Footprint
*T/F* Ethical perfection is factual and real.
False
When an agency decides to promulgate a rule and the draft is ready, the agency publishes it as a proposed rule in the:
Federal Register
A set of values that create a specific view of the world is a(n) _______
Ideology
What is the advantage of closing a message with a tailored ending?
It helps in building more goodwill
The _____ combines in one measure thousands of population trends among terrestrial, freshwater, and marine vegetable species.
Living Planet Index
_____ is an ideology which says that workers should revolt against property-owning capitalists who exploit them, replacing economic and political domination with more equal and democratic socialist institutions.
Marxism
According to the 2010 UN Programme's Human Development Report, which country has the highest human development in the world?
Norway
_____ is a recurrent spectacle in which common people who feel oppressed or disadvantaged in some way seek to take power from ruling elite that thwarts fulfillment of the collective welfare.
Populism
A basic approach, method, or plan for achieving an objective
Strategy
Government
Structures and processes in society that authoritatively make and apply policies and rules
Documentation and disclosure of how closely corporate operations conform to the goal of sustainable development
Sustainability Reporting
Secondary stakeholders
Entities in a relationship with the corporation in which the effects on them, the corporation, or both are less significant and pressing
Primary stakeholders
Entities in a relationship with the corporation in which they, the corporation, or both are affected immediately, continuously, and powerfully Primary stakeholders include: o Stockholders o Customers o Employees o Communities o Governments
The theory that ethical values are created by cultural experience
Ethical Relativism
The theory that because human nature is everywhere the same, basic ethical rules are applicable in all cultures
Ethical Universalism
The study of good and evil, right and wrong, and just and unjust
Ethics
An ethics and compliance program that teaches employees to make decisions based on ethical values
Ethics Approach
A system of structures, policies, procedures, and controls used by corporations to promote ethical behavior and ensure compliance with laws and regulations
Ethics and Compliance Program
*T or F:* A Web site open to collaborative editing by multiple individuals is known as a blog.
False
*T or F:* Although the global population growth is slowing, it will be the highest in the most developed regions
False
*T or F:* An enduring belief about which basic choices in a society are "correct" is called an idea.
False
*T or F:* In the Gini index, 0 percent stands for absolute inequality and 100 percent stands for perfect equality.
False
*T or F:* The countervailing forces model is essentially the same as the market capitalism model.
False
*T/F* A progressive business model is one in which the central strategy for creating value is based on meeting market demands.
False
*T/F* A routine inquiry should not open with a question or request.
False
*T/F* A tort solely involves an intentional action that causes injury.
False
*T/F* According to corporate charters, the legal line of authority for a company runs from the state, to directors, to managers, and to shareholders of the company in this sequence.
False
*T/F* According to historian Gary Cross, consumerism expresses a less powerful worldview than political ideologies.
False
*T/F* According to the theory of dualism, humans and nature are one.
False
*T/F* Cause-related marketing is a variant of strategic philanthropy in which charitable contributions are based on purchases of a service.
False
*T/F* Disease caused by industrial pollution is far more significant than disease caused by older, non-industrial forms of pollution.
False
*T/F* Disparate impact exists if an employer gives less favorable treatment to employees because of their race, color, religion, sex, or national origin.
False
*T/F* During the period from 1895 to 1904, the public saw the growth of huge firms as a natural, inevitable, and desirable response to the new economic incentives.
False
*T/F* Dystopia refers to a socially engineered model of alternative community that is designed to correct faults in the world so its members can find happiness.
False
*T/F* Ending a message with phrases such as "as soon as possible" or "at your convenience" helps in building goodwill.
False
*T/F* Ethnic nepotism refers to systematic efforts made by companies to recruit from diverse groups, promote tolerance, and modify corporate cultures to include nonmainstream employees.
False
*T/F* Ethnocentrism is sensitivity to the different dimensions of cultural difference.
False
*T/F* Even as nations' nontariff barriers have generally fallen, tariffs have multiplied.
False
*T/F* Exposure assessment establishes a link between a substance and human disease.
False
*T/F* Externalities are costs of production borne by the enterprise that causes them.
False
*T/F* For the sake of conciseness and clarity, the questions in a routine inquiry should be combined into a single sentence.
False
*T/F* Foreign direct investment is the limited, speculative purchase of stocks and bonds in a foreign company by individuals.
False
*T/F* Gases that evaporate from liquid or solid carbon-based compounds are known as condensibles.
False
*T/F* Globalization has been the official policy of the United States throughout most of its history.
False
*T/F* Hard law refers to statements of philosophy, policy and principle found in nonbinding international conventions.
False
*T/F* If Julie writes an email responding to a customer complaint, she is engaging in internal-operational communication.
False
*T/F* If you plan to do business abroad, you should focus your research solely on the people of the culture you are about to visit.
False
*T/F* If your response to an inquiry includes some bad news along with good news, you should place the bad news at the beginning and ending of the message.
False
*T/F* Illegal gratuity refers to an agreement to exchange something of value for an official act.
False
*T/F* In the United States of 1850 to 1900, rapid industrial growth was taking place within a highly-regulated capitalist system that in many ways seemed to bear out the socialist's nightmare of exploitation.
False
*T/F* In the United States, the Progressive movement was the first movement to protect the consumers.
False
*T/F* In the context of writing order acknowledgements, when delays are routine and expected and do not pose a serious problem, you should use the indirect approach.
False
*T/F* In traditional philanthropy, foundations and corporations give grants to profitable organizations that then spend the money to meet stated goals.
False
*T/F* In writing a favorable response to an inquiry containing several questions, it is considered inappropriate to begin the message by stating that you are complying with the reader's request.
False
*T/F* Indoor air in developed nations contains a mixture of pollutants including combustion by-products from cooking such as carbon monoxide and asbestos.
False
*T/F* Internal-operational communications are highly casual exchanges between employees of the same company.
False
*T/F* Internal-operational messages are those emails and hard-copy messages written by the employees of a company to suppliers and service organizations outside the company.
False
*T/F* Kant's categorical imperative is an ethical guideline that allows a manager to be flexible and act depending on the situation.
False
*T/F* Keynesianism is an economic philosophy according to which social progress comes when individuals freely pursue their self-interests in unregulated markets.
False
*T/F* Liberalism is a word denoting both the ideology of using markets to organize society and a set of specific policies to free markets from state intrusion.
False
*T/F* Lobbyists have huge power over broad liberal and conservative tides and headline issues to which the public is attentive.
False
*T/F* Logical positivism is a school of thought that rejects ethical perfection, taking the position that human affairs will be characterized by flawed behavior.
False
*T/F* MNCs are all similar in their organizational structures and operations.
False
*T/F* Mandated actions go beyond those compelled by law or regulation.
False
*T/F* On the surface level, corporate power shapes society over time through the aggregate changes of industrial growth.
False
*T/F* The Environmental Protection Agency sets drinking water standards and also regulates bottled water.
False
*T/F* The Equal Protection Clause has been interpreted to give the federal government wide power to regulate business.
False
*T/F* The Food and Drug Administration has the authority to regulate the quality, safety, and labeling of poultry, meat, eggs, and alcoholic beverages.
False
*T/F* The Global Compact is a code of conduct that enforces its principles.
False
*T/F* The Sarbanes-Oxley Act requires that accounting firm auditors of a company be rotated every three years.
False
*T/F* The transfer of work from within a company to an outside supplier is known as out-tasking.
False
*T/F* The typical MNC is international rather than national.
False
*T/F* There are five major boundaries on managerial power: government and laws, social interest groups, social values, markets and economic stakeholders, and demographics of the society in which the managerial power wants to operate.
False
*T/F* Though TNCs differ greatly in international dimensions, a single measure has been created that can capture the definitive meaning of "transnational."
False
*T/F* Usually, CEO pay is determined by managerial power.
False
*T/F* Utilitarianism protects both individual needs and community needs equally.
False
*T/F* Voluntary CSR is the full corrective for flaws in markets.
False
*T/F* Voluntary regulation is used when the political will for stringent command rules is present.
False
*T or F:* Sustained economic growth arose in Western Europe and the United States during the first half of the twentieth century.
False.
*T or F:* The Living Planet Index measures the human consumption of the renewable natural resources.
False.* The Living Planet Index measures *the state of the world's biological diversity based on population trends among terrestrial, freshwater and marine vegetable species*
Proponents of the dominance model:
Focus on the defects and inefficiencies of capitalism believe that corporations/business and a powerful elite/the government control a system that enriches a few at the expense of the many.
_____ refers to capital investment by private firms outside their home countries.
Foreign direct investment
Kondratiev Waves (aka Waves of Innovation)
Generational cycles (or "long waves") of invention, expansion, stagnation and finally depression/recession. These cycles begin with a long upswing caused by technological innovations that stimulate investment and economic expansions or "booms." Eventually these long booms becom stagnant as technologies mature and both returns to investors and opportunities decline. After this period of slower/stalled expansion comes the inevitable decline. found by studying historical data on technological advances, economic structure, salaries, and political unrest to derive a clear pattern linking innovation to the performance of the economy Each of these Kondratiev waves is driven by new technologies
Jean Luc and Oscar own a small manufacturing company in Louisiana, and they are meeting with two executives of a Mexican retail chain in the hopes of convincing them to carry their products. Jean Luc begins the pitch, and after a couple of minutes, Oscar jumps in to say, "Jean Luc really hit the nail on the head when he said these products offer better value than what you're currently carrying." The Mexican executives both speak English, but they look at each other in confusion. What mistake did Oscar make?
He used a colloquialism
In which of the BGS relationship models do business and government govern the great mass of people?
In *the Dominance Model* business and government govern the great mass of people
_____ are aspirational statements of principles, policies, and rules for foreign operations that a multinational corporation voluntarily agrees to follow.
International codes of conduct
_____ believed that owners of capital exploited workers and promoted systems of rising inequality.
Karl Marx
In the _____ model, the _____ acts as a buffer between business and non-market forces.
Market capitalism; market
The tangible artifacts of a society that shape and are shaped by ideas and institutions are called _______.
Material things
A person hired by a corporation to oversee fulfillment of conditions in an agreement to avoid criminal indictment
Monitor
In the international arena, a _____ is an actor formed of three elements: a ruling authority, citizens, and a territory with fixed borders.
Nation-State
An agreement in which U.S. attorneys decline prosecution of a corporation that has taken appropriate steps to report a crime, cooperate, and compensate victims
Nonprosecution Agreement
An emerging form of philanthropy that uses market forces to achieve results
Philanthrocapitalism
Charitable giving of money, property, or work for the welfare of society
Philanthropy
Values based on assumptions of security and affluence are known as _____ values.
Postmaterialist
_____ is the belief that sacred authority called for hard work, saving, thrift, and honesty as necessary for salvation.
Protestant ethic
Payments in excess of a wronged party's actual losses to deter similar actions and punish a corporation that has exhibited reprehensible conduct
Punitive Damages
Herbert Spencer proposed the idea of ____
Social Darwinism
Herbert Spencer's idea that evolutionary competition in human society, as well as the natural world, weeded out the unfit and advanced humanity is known as:
Social Darwinism
The basic agreement between a business and its society that defines the broad duties of the business that are needed to retain the support of society is called a(n) _______.
Social contract
The network of human relations that consists of ideas, institutions, and material things is a(n) ________.
Society
A critique of the _____ model is that creating surplus ethical sensitivity that soars above legal duty is impractical and unnecessary.
Stakeholder
A form of corporate philanthropy in which charitable activities reinforce strategic business goals
Strategic Philanthropy
Economic growth that meets current needs without social and environmental impacts that harm future generations
Sustainable Development
The countervailing forces model differs from the dominance model in that it:
The countervailing forces model differs from the dominance model in that: o The dominance model *accepts* the absolute primacy of business. o The countervailing forces model *rejects the absolute primacy of business.*
Globalization
The creation of networks of human interaction that span worldwide distances
The Dominance Model of BGS Relationship
The dominance model states that business corporations, the government, and a powerful elite control a system that enriches the few at the expense of the many. Proponents focus on defects/inefficiencies of capitalism
Market economy
The economy that emerges when people move beyond subsistence production to production for trade, and markets take on a more central role
The perspective of the market capitalism model leads to the conclusion that: *a)* government regulation should be limited. *b)* it is the responsibility of businesses to correct social problems. *c)* businesses can get away with inferior quality goods and higher profits. *d)* the ethical duty of management is to promote the interests of all stakeholders.
The perspective of the market capitalism model leads to the conclusion that *government regulation should be limited.*
Business actions are judged by the general ethical standards of society, not by a special set of more permissive standards
Theory of Moral Unity
What is the mainspring of globalization?
Trade
What is considered to be the bedrock of economic globalization?
Trade liberalization
_____ is a philosophy in which nations promote trade by easing restrictions, including both tariff and non-tariff barriers.
Trade liberation
*T or F* The primary purpose of a business is to make a profit by providing products that satisfy human needs.
True
An enduring belief about which fundamental choices in personal and social life are "correct" is a(n) _______.
Value
Postmaterialist
Values based on assumptions of security and affluence
A nonviolent economic offense of cheating and deception done in the course employment for personal or corporate gain
White-collar Crime
A Web site open to collaborative editing by multiple individuals is known as a ____
Wiki
The following is an email from Devi to her coworker, Ilya: "Remind me, should David be invited to tomorrow's meeting?" This is an example of
a casual internal-operational message
The Molinari Company has shipped the wrong dining room set to Martha. In the hopes of correcting the situation, Martha plans to write
a claim message
You are most likely to build goodwill with your readers by using
a closing that is tailored to your message
The Human Development Index (HDI) Scale
a composite statistic (composite index) of life expectancy, education, and per capita income indicators, used to rank countries into four tiers of human development. A country scores higher HDI when: o the life expectancy at birth is longer o the education period is longer o and the income per capita is higher.
Trade liberation
a philosophy in which nations promote trade by easing restrictions, including both tariff and non-tariff barriers.
Check in does not mean the same thing as the words check and in do on their own. Check in is an example of
a two-word verb
Two-word verbs consist of
a verb and a second element that, when combined, creates a new meaning
A direct-order message
allows the writer to begin with the key point and get to the objective without delay
Danny is an American whose company has sent him to handle a business deal in Japan. While he is there, Danny's host offers him unfamiliar foods, refuses to make prolonged eye contact, and bows frequently. Danny thinks the food and frequent bowing are weird and that refusing to make eye contact is rude. In his mind, the way things are done in the United States is the "right" way. What tendency is Danny exhibiting?
ethnocentrism
The tendency to see only the features of your own culture as "normal" is called
ethnocentrism
Social Darwinism
evolutionary competition in human society weeds out the unfit and advances humanity Idea proposed by Herbert Spencer
Ozqur owns a chain of frozen yogurt shops. After one of his employees had a particularly scary encounter with a patron, he writes a memo to his employees outlining the new procedure for dealing with difficult or threatening customers. This message is most likely a ________ message.
formal internal-operational
The flow of goods and services across borders unhindered by government-imposed restrictions such as taxes, tariffs, quotas, and rules is known as:
free trade
The structures and processes in a society that authoritatively make and apply policies and rules are called ________.
governments
According to the Gini index, the cause of most of the rise in world income inequality is a(n):
growing gap between the peoples of rich and poor nations.
Marina's boss has absolute authority in her office. He makes the decisions, and Marina is expected to simply do as he says. Marina most likely lives in a ________ culture.
high power distance
Wei is giving a sales presentation in which she describes her company's product and how it will meet the needs of the people she is talking to. She does not explicitly state everything she wants the audience to know. Rather, she relies on body language, tone of voice, and eye movements to give cues that her audience members can use to understand her full message. Wei most likely belongs to a(n) ________ culture.
high-context
A good place for general explanatory material in a routine inquiry with multiple questions is
in the body of the message along with the questions
A formal pattern of relations that link people together in order to accomplish a goal is a(n) ________.
institution
Messages that stay within a business and are used to complete the work of the business are referred to as ________ messages.
internal-operational
The idea that a manager simply "knows" the difference between right and wrong actions is fundamental to the: *a)* disclosure rule. *b)* organization ethic. *c)* intuition ethic. *d)* rights ethic.
intuition ethic
The economic philosophy that rejects government intervention in markets is called __.
laissez-faire
Background information is explicitly stated in a ________ culture, but is largely implied in a(n) ________ culture.
low-context; high-context
A _____ emerges when people move beyond subsistence production to production for trade, and markets take on a more central role.
market economy
Langdon always makes it to appointments on time and feels that meeting deadlines is an important part of his job. Langdon most likely belongs to a(n) ________ culture.
monochronic
Technology that is developed on the scale of one-billionth of a meter is known as:
nanotechnology
The _____ is the unit of human organization in which individuals and cultural groups can influence their circumstances and future.
nation-state
When including bad news in a favorable response, you should
place the bad news in secondary positions
Barron and Gyeong want to convince Amaro that his tools supply store should buy their company's brand of ratchets. When they all meet, instead of beginning their sales pitch, Barron asks Amaro if he caught the local soccer team's most recent match. This leads to a discussion of the team's season and then to talk about Gyeong's son, who plays soccer for the nearby university. Eventually, after they have each talked about their families, Barron and Gyeong bring the conversation around to their product. This meeting would most likely happen in a ________ culture.
polychronic
Rosita has a meeting scheduled for 2:00 p.m. today, but she already knows she won't be there until at least 2:15. However, this doesn't bother her. In her mind, she'll get there when she gets there. Furthermore, she knows that the client she's meeting with will also show up late. No one will feel impatient or rushed just because they are not starting on time. Rosita and her client most likely belong to a ________ culture.
polychronic
Constitutional democracy
protection of individuals' rights
Foreign Direct Investment
refers to capital investment by private firms outside their home countries
The invention of the _____ in the late 1700s and its widespread use beginning in the early 1800s triggered the Industrial Revolution.
steam engine
Nanotechnology
technology that is developed on the scale of one-billionth of a meter
Protestant ethic
the belief that sacred authority called for hard work, saving, thrift, and honesty as necessary for salvation
Progress (the ideology)
the idea that humanity was in upward motion toward material betterment
Ecological Footprint
the impact of a person or community on the environment, expressed as the amount of land required to sustain their use of natural resources . is calculated as the total land area, in hectares, required to maintain worldwide human consumption of food, wood, fiber, energy, and water
Nation-state
the unit of human organization in which individuals and cultural groups can influence their circumstances and future. An actor in the international arena that's formed of three elements: o a ruling authority o citizens o and a territory with fixed borders
*T/F* When a message is likely to elicit a positive or neutral response from a reader, the direct approach is preferable.
true
Which of the following sectors includes fishing and forestry occupations? *a)* Agricultural *b)* Goods-producing *c)* Service *d)* Manufacturing
*a)* Agricultural
Which part of the U.S. Constitution gives the federal government the right to regulate business? *a)* Article I *b)* Article III *c)* Article V *d)* Article VI
*a)* Article I
Which of the following is a worker protection goal? *a)* Collective bargaining *b)* Encourage investment *c)* Allow turnover *d)* Reduce regulatory burden
*a)* Collective bargaining
Which state charters the largest number of corporations in the United States? *a)* Delaware *b)* New Jersey *c)* California *d)* New York
*a)* Deleware
The Group of Eight has now expanded and is currently known as: *a)* G20. *b)* G24. *c)* G77. *d)* G8 + 5.
*a)* G20
The coordinated efforts of a company to prevent its managers from breaking the law and to act ethically are called: *a)* ethics programs. *b)* reciprocity. *c)* theory of amorality. *d)* moral muteness.
*a)* ethics programs
The study of the amount of a substance human beings can absorb through inhalation, ingestion, or skin absorption is called: *a)* exposure assessment. *b)* contingent valuation. *c)* epidemiological study. *d)* hazard characterization.
*a)* exposure assessment
What are the two kinds of warranties? *a)* Express and implied *b)* Express and categorical *c)* Categorical and allusive *d)* Connoted and implied
*a)* express and implied
When a factory dumps toxic waste into a stream, it results in a(n) _____ cost for society. *a)* external *b)* internal *c)* private *d)* extraterritorial
*a)* external
When a factory dumps toxic waste into a river and pollutes the river, the costs borne by society in order to clean up the mess is called a(n): *a)* externality. *b)* internal diseconomy. *c)* internal economy. *d)* natural monopoly.
*a)* externality
Cost-benefit analysis: *a)* forces methodical consideration of each impact of a policy on social welfare. *b)* disciplines thinking and always dictates choices. *c)* injects untenable calculation into emotional arguments. *d)* that reveals marginal abatement costs rarely helps regulators find efficient levels of regulation.
*a)* forces methodical consideration of each impact of a policy on social welfare
Business entities in foreign countries controlled by parent transnational corporations are known as: *a)* foreign affiliates. *b)* indigenous producers. *c)* domestically owned firms. *d)* parent firms.
*a)* foreign affiliates
President Abraham Lincoln issued the Emancipation Proclamation that: *a)* freed an estimated 4 million slaves. *b)* totally abolished slavery. *c)* was intended to prevent Southern states from passing discriminatory laws. *d)* prohibited race discrimination in voting.
*a)* freed an estimated 4 million slaves
In the realm of international law, _____ are found mainly in treaties, creates binding rights, prohibitions, and duties. *a)* hard laws *b)* quasi-laws *c)* traditional law *d)* statutory law
*a)* hard laws
Attempting to establish a link between a substance and human disease is called: *a)* hazard assessment. *b)* risk management. *c)* risk characterization. *d)* hazard characterization.
*a)* hazard assessment
In case of ____, the action might have been or might be taken even in the absence of the gift. *a)* rigging *b)* bribery *c)* illegal gratuity *d)* lobbying
*a)* illegal gratuity
Moral intuition is a form of social intuition that is adaptive to the social environment and predominates in individual ethical decisions, more so when they are ______ *a)* immediate. *b)* abstract. *c)* less emotionally loaded. *d)* amenable to decision regimes.
*a)* immediate
A(n) _____ warranty is an unwritten commonsense warranty arising out of reasonable expectations that a product will both fulfill its ordinary purpose and fulfill the particular purpose of the buyer. *a)* implied *b)* express *c)* categorical *d)* absolute
*a)* implied
An express advocacy communication that is not coordinated with a candidate is known as a(n): *a)* independent expenditure. *b)* bundle expenditure. *c)* hard expenditure. *d)* soft expenditure.
*a)* independent expenditure
The Fourteenth Amendment of the U.S. constitution: *a)* intended to prevent Southern states from passing discriminatory laws. *b)* prohibited race discrimination in voting. *c)* abolished slavery. *d)* prohibited the making of laws impeding the free exercise of religion.
*a)* intended to prevent Southern states from passing discriminatory laws
The concentric circle of social responsibility that encompasses responsibility to exercise the economic function with a sensitive awareness of changing social values and priorities is the: *a)* intermediate circle. *b)* external circle. *c)* outer circle. *d)* inner circle.
*a)* intermediate circle
If a company issues ethics guidelines that include the statement: "If an action feels wrong, don't do it," the company is applying the: *a)* intuition ethic. *b)* ends-means ethic. *c)* equal freedom principle. *d)* theory of justice.
*a)* intuition ethic
A traditional business model: *a)* is one in which the central strategy for creating value is based on meeting market demands while complying with the law. *b)* is one where social performance is based on the response of the management teams to pressures in the business environment. *c)* defines a strategy that meets market needs by mitigating social problems. *d)* focuses on making a profit and resists demand to go beyond the minimum duty of obeying the law.
*a)* is one in which the central strategy for creating value is based on meeting market demands while complying with the law.
According to Howard R. Bowen: *a)* mangers have an ethical duty to consider the broad social impact of their decisions. *b)* corporations can exceed the limit of power granted by a social contract. *c)* businesses should mainly look after their own interests before improving society. *d)* voluntary actions will not head off negative public attitudes.
*a)* mangers have an ethical duty to consider the broad social impact of their decisions.
Usually, CEO pay is determined by: *a)* market forces in the competition for managerial talent. *b)* managerial power. *c)* assets under management. *d)* their ability to set their own pay.
*a)* market forces in the competition for managerial talent
Friedrich Nietzsche's idea that great men made their own ethical rules without respect for the general good was called: *a)* master morality. *b)* the theory of moral responsibility. *c)* realism. *d)* moral free space.
*a)* master morality
The rights to which a person is entitled simply because he/she is a human and that cannot be taken away by the government are known as _____ rights. *a)* natural *b)* civil *c)* legal *d)* statutory
*a)* natural
Japanese firms pay their employees on the _____ curve, a slowly rising wage scale based largely on seniority that allows for small differentials based on ability and provides a comfortable income fitting various stages. *a)* nenko *b)* karoshi *c)* kaizen *d)* salaryman
*a)* nenko
A _____ effluent is a runoff that enters surface waters from diffuse sources. *a)* nonpoint *b)* volume *c)* line *d)* area
*a)* nonpoint
The yellow dog contract was a type of employer-employee agreement according to which workers would: *a)* not associate themselves with any unions. *b)* leave if they behaved unlawfully. *c)* remain with the firm. *d)* not disclose confidential information.
*a)* not associate themselves with any unions
When managers are convicted of a crime, their prison sentences are based on a(n): *a)* numerical point system. *b)* grading system. *c)* evidence-based review system. *d)* rating system.
*a)* numerical point system
A governmental committee formed by a company that makes campaign contributions by getting money from individual employees, not the corporate treasury, is called a: *a)* political action committee. *b)* subcommittee. *c)* progressive change committee. *d)* joint committee.
*a)* political action committee
Which of the following sentences would be most effective in attracting attention as part of a routine inquiry about an advertised product? *a)* It would be nice if you would tell me more about the company retreat facilities that were advertised in the most recent edition of 'Business Today' *b)* Could you please answer the following questions regarding the company retreat facilities that were advertised in the most recent edition of 'Business Today'? *c)* I saw your company retreat facilities advertisement in 'Business Today', and I want to know more about them. *d)* Please refer to your latest company retreat facilities advertisement. I have a few questions about it. *e)* Your new company retreat facilities appears to meet our needs well, and we would like to know more about them.
*b)* Could you please answer the following questions regarding the company retreat facilities that were advertised in the most recent edition of 'Business Today'?
This is a part of the tiers of internationalization. *a)* Indirect investments *b)* Establishment of foreign sales offices *c)* Portfolio investment *d)* Importing essential goods
*b)* Establishment of foreign sales offices
Which of the following is a Japanese word denoting death from the stress of overwork? *a)* Maquiladora *b)* Karoshi *c)* Nenko *d)* Datsusara
*b)* Karoshi
_____ is an economic philosophy of active state intervention to stabilize the economy and stimulate employment. *a)* Protectionism *b)* Keynesianism *c)* Marxism *d)* Monetarism
*b)* Keynesianism
This is an independent director who chairs regular board meetings of other independent directors. *a)* Inside director *b)* Lead director *c)* Internal director *d)* Vocational director
*b)* Lead director
Which of the following is most likely to drive future population changes? *a)* High fertility *b)* Low mortality *c)* Stable fertility *d)* Zero migration
*b)* Low mortality
____ is an agreement negotiated in 1991 among Argentina, Brazil, Paraguay, and Uruguay. *a)* EU *b)* NAFTA *c)* Mercosur *d)* ASEAN
*b)* Mercosur
Workplace fatalities have declined after the creation of the: *a)* National Labor Relations Board. *b)* Occupational Safety and Health Administration. *c)* Employment and Training Administration. *d)* U.S. Chemical Safety and Hazard Investigation Board.
*b)* Occupational Safety and Health Administration
The most widely used index measure of a corporation's "multinationality" is called the: *a)* LDC. *b)* TNI. *c)* FDI. *d)* TNC.
*b)* TNI
Which of the following acts guaranteed union organizing and bargaining rights? *a)* The Employee Free Choice Act *b)* The National Labor Relations Act *c)* The Norris-LaGuardia Anti-Injunction Act *d)* The Worker Adjustment and Retraining Act
*b)* The National Labor Relations Act
The modern impetus for what theory comes from the sociologist C. Wright Mills. *a)* Pluralist theory *b)* Theory of elite dominance *c)* State autonomy theory *d)* Positive political theory
*b)* Theory of elite dominance
Discrimination caused by policies that apply to everyone and seem neutral but have the effect of disadvantaging a protected group is known as: *a)* reverse discrimination. *b)* disparate impact. *c)* glass ceiling. *d)* quid pro quo.
*b)* disparate impact
Systematic efforts made by a company to recruit from different groups, promote tolerance, and modify corporate cultures to include nonmainstream employees are known as: *a)* tokenism. *b)* diversity management. *c)* ethnic nepotism. *d)* meritocracy.
*b)* diversity management
The power of judges to review legislative and executive actions and strike down laws that are unconstitutional or acts of officials that exceed their authority is known as: *a)* judicial supremacy. *b)* judicial review. *c)* merit review. *d)* legislating.
*b)* judicial review
The basic purpose of a company that defines the type of business in which the company is engaged in and explains how it differs from its competitors is called a: *a)* GRI. *b)* mission statement. *c)* social issue. *d)* corporate social reporting method.
*b)* mission statement
The ability of a business to influence government is called: *a)* social power. *b)* political power. *c)* general power. *d)* personal power.
*b)* political power
In theory, _____ is a scientific process leading to an objective, quantitative measure of the risks posed by a substance. *a)* contingent valuation *b)* risk assessment *c)* risk management *d)* cost-benefit analysis
*b)* risk assessment
A Washington Office is: *a)* set up by a corporation to pursue a political goal. *b)* set up by a corporation and staffed with experts in advocating the firm's point of view to lawmakers and regulators. *c)* an office that represents the political interests of many companies and industries. *d)* an office that represents the interests of an industry or industry segment.
*b)* set up by a corporation and staffed with experts in advocating the firm's point of view to lawmakers and regulators.
Which of the following is NOT an example of an ecosystem service? *a)* A coral reef that stabilizes seabeds. *b)* Pollination of crops. *c)* A land that has stopped producing water. *d)* Pest control by birds.
*c)* A land that has stopped producing water.
_____ power is the ability of a company to influence events, activities, and people by virtue of control over resources. *a)* Legal *b)* Technological *c)* Economic *d)* Social
*c)* Economic
Which of the following is true about guidance? *a)* It is legally binding. *b)* It is issued exclusively by Congress. *c)* It is intended to clarify official regulations. *d)* It does not affect existing rules.
*c)* It is intended to clarify official regulations.
Which of the following is NOT true about the new communal economy that Francois-Noël Babeuf, the originator of modern socialist doctrine, envisioned? *a)* The government would receive their output and distribute to everyone the basic material necessities of life. *b)* To eliminate individual desire for wealth and power, schools would teach egalitarian principles. *c)* Private property would be ratified. *d)* Citizens would be required to work based on their trade or skill.
*c)* Private property would be ratified.
Which of the following are awarded to deter similar actions and punish a corporation that has exhibited malicious and willful misconduct? *a)* Compensatory damages *b)* Nominal damages *c)* Punitive damages *d)* General damages
*c)* Punitive damages
Which of the following is an example of a speculative technique? *a)* Stock splitting *b)* Declaring dividends *c)* Short-selling *d)* Stock dilution
*c)* Short-selling
Which Act was passed to take care of the thousands of abandoned toxic waste sites around the country? *a)* The Toxic Substances Control Act *b)* The Medical Waste Tracking Act *c)* The Comprehensive Environmental Response, Compensation, and Liability Act *d)* The Resource Conservation and Recovery Act
*c)* The Comprehensive Environmental Response, Compensation, and Liability Act
Which of the following is true regarding the Federal Trade Commission (FTC)? *a)* This important regulator was set up in the Populist era. *b)* The president nominates its seven commissioners. *c)* The Senate has to approve the commissioners. *d)* Each commissioner serves a five-year term.
*c)* The Senate has to approve the commissioners.
Which of the following statements about moderately formal internal-operational messages is true? *a)* They are usually used to give quick responses to work issues. *b)* They are typically written to present policies and procedures. *c)* They begin by stating their objectives and then systematically discuss vital information. *d)* They are typically collected and kept in manuals for further reference. *e)* They do not require careful construction or wording.
*c)* They begin by stating their objectives and then systematically discuss vital information.
Which of the following is true regarding natural rights? *a)* They are bestowed by governments on their citizens. *b)* They have to be codified by the legislative body. *c)* They exist on a higher plane than civil rights. *d)* They are also called alienable rights.
*c)* They exist on a higher plane than civil rights.
Which of the following is true about typical MNCs? *a)* Most MNCs are said to be stateless. *b)* Corporations are formed under international incorporation laws. *c)* They remain national rather than international. *d)* MNCs have become too transnational.
*c)* They remain national rather than international. .
Which of the following refers to an exposure point greater than zero at which a substance begins to pose a health risk? *a)* Hormesis *b)* Absolute limit *c)* Threshold *d)* Level of tolerance
*c)* Threshold
Identify the correct statement regarding the waves of innovation that have taken place since the beginning of the Industrial Revolution. *a)* The first wave of innovation lasted for about 50 years. *b)* The second wave of innovation had a time length of 65 years. *c)* Thus far, the waves of innovation have been divided into seven distinct phases. *d)* So far, the general trend has been the shortening of successive waves.
*c)* Thus far, the waves of innovation have been divided into seven distinct phases. (Looking at the Ch2 PPT slide 18, and also at various online sources, it seems the overall consensus is that there has *only been 5 waves*. A couple sources claim we are in the process of/about to begin a sixth wave, and one source suggested there's a predicted a seventh wave.)
The EPA program that requires facilities handling any of 650 hazardous chemicals to disclose amounts each year that are released or transferred is the: *a)* Waste Management Inventory. *b)* Resource Conservation and Recovery Information Inventory. *c)* Toxics Release Inventory. *d)* Criteria Pollutant Emissions Database.
*c)* Toxics Release Inventory
Which of the following is an example of a stereotype? *a)* Roberto, a Brazilian, is often late to meetings and likes to chat before getting down to business. *b)* James, an American, dislikes even moderate public displays of affection. *c)* Zoe must like spicy food because she is Cuban. *d)* Akiko is Japanese and bows when greeting someone. *e)* Lillian Stark is English, and she prefers that people whom she does not know well call her Ms. Stark.
*c)* Zoe must like spicy food because she is Cuban.
When one company supplies the entire market for a good or service more cheaply than a combination of smaller firms, it has: *a)* an oligopoly. *b)* pure competition. *c)* a natural monopoly. *d)* monopolistic competition.
*c)* a natural monopoly
The first wave of regulation: *a)* oversaw the set up of independent regulatory commissions. *b)* was not predominately promotional for business. *c)* allowed the government to give vast financial subsidies and grants to private interests. *d)* eliminated tariffs to protect infant industries.
*c)* allowed the government to give vast financial subsidies and grants to private interests
The doctrine of liberty of contract: *a)* entails government subsidy of salaries for workers who lacked enough work. *b)* creates more jobs by mandating shorter hours, forcing companies to hire more people to maintain output. *c)* allows employers and employees to negotiate their wages, hours, duties, and conditions without government interference. *d)* requires regular employees to remain with the firm.
*c)* allows employers and employees to negotiate their wages, hours, duties, and conditions without government interference
As a first step in implementing corporate social responsibility, a corporation should: *a)* engage in dialog with a range of stakeholders. *b)* translate strategy into specific goals and performance objectives. *c)* assess its current situation and activities. *d)* develop an overall strategy for corporate responsibility.
*c)* assess its current situation and activities.
In cultures that have low power distance *a)* no one is permitted to have any authority at all. *b)* great emphasis is placed on the authority of superiors. *c)* authority is shared between many people. *d)* employees look to their boss to make even minor decisions. *e)* may be hesitant to offer comments during online conversations.
*c)* authority is shared between many people.
The study of good and evil, right and wrong, and just and unjust actions in business is called: *a)* moral free space. *b)* corporate culture. *c)* business ethics. *d)* moral muteness.
*c)* business ethics
Rules of corporate governance adopted by corporations are called: *a)* policies. *b)* articles of incorporation. *c)* bylaws. *d)* standing rules.
*c)* bylaws
An agent capable of initiating cancer is known as a(n): *a)* effluent. *b)* precipitate. *c)* carcinogen. *d)* condensible.
*c)* carcinogen
The estimated burden of disease caused by pollution is calculated as the percentage of deaths and: *a)* average years of life lost. *b)* expected years of life lost. *c)* disability-adjusted life years. *d)* quality-adjusted life years.
*c)* disability-adjusted life years
A quantitative estimate of how toxic a substance is to human beings or animals at increasing levels of exposure is called a(n) _____ assessment. *a)* hazard *b)* exposure *c)* dose-response *d)* chemical safety
*c)* dose-response
An amount of money for a project added into an appropriations bill by any member of the Senate or House of Representatives is known as a(n): *a)* budget proviso. *b)* grant fund. *c)* earmark. *d)* competitive grant.
*c)* earmark
All of the following are norms of social values EXCEPT: *a)* duty. *b)* justice. *c)* economics. *d)* piety.
*c)* economics.
A treated or untreated wastewater discharge from an industrial facility is known as a(n): *a)* spill. *b)* surface runoff. *c)* effluent. *d)* condensible.
*c)* effluent
According to Thomas Donaldson and Thomas W. Dunfee, ethical principles that are the basis for all other ethical principles are called: *a)* formal rules. *b)* tacit underlying values. *c)* hypernorms. *d)* externalities.
*c)* hypernorms
Rights to life are an example of: *a)* master morality. *b)* reciprocity. *c)* hypernorms. *d)* slave morality.
*c)* hypernorms
In 2009, U.S. charitable giving was about $304 billion. The largest proportion of this was given by: *a)* corporations. *b)* foundations. *c)* individuals. *d)* charitable bequests.
*c)* individuals
The National Pollution Discharge Elimination System is the permit system used to regulate: *a)* emission of criteria pollutants. *b)* emission of hazardous air pollutants. *c)* industrial effluents from point sources. *d)* industrial effluents from nonpoint sources.
*c)* industrial effluents from point sources
The Japanese worker compensation system defines _____ as a syndrome marked by emotional and physical stress accumulated during six months or more of overwork. *a)* nenko *b)* keiretsu *c)* karoshi *d)* maquiladora
*c)* karoshi
The practice of harnessing market forces to motivate compliance with regulatory goals is known as: *a)* cap-and-trade regulation. *b)* command-and-control regulation. *c)* market incentive regulation. *d)* voluntary regulation.
*c)* market incentive regulation
_____ is an emphasis on material objects or money that displaces spiritual, aesthetic, or philosophical values. *a)* Consumerism *b)* Individualism *c)* Materialism *d)* Rationalism
*c)* materialism
All of the following are true of protectionism EXCEPT: *a)* industries must be shielded from foreign competition. *b)* large trade deficits of the United States must be reduced. *c)* maximum gain on a worldwide basis will be realized if capital flows are unrestricted. *d)* trade barriers in foreign countries restrict American imports to them.
*c)* maximum gain on a worldwide basis will be realized if capital flows are unrestricted.
The 80 percent rule is met if a company has hired: *a)* at least 10 percent of black applicants if it has hired 20 percent of all white applicants. *b)* at least 10 percent of white applicants if it has hired 20 percent of all black applicants. *c)* minorities at the rate of at least 80 percent of the rate at which it hires from the demographic group. *d)* minorities at the rate of at least 20 percent of the rate at which it hires from the demographic group.
*c)* minorities at the rate of at least 80 percent of the rate at which it hires from the demographic group
When annual CEO salary and bonus are based on ____, the CEO can take actions to maximize short-term profits. *a)* market forces *b)* stock awards *c)* net income *d)* stock options
*c)* net income
The concentric circle of responsibility that outlines newly emerging and still amorphous responsibilities that business should assume to improve the social environment, even if they are not directly related to specific business processes is the: *a)* neutral circle. *b)* inner circle. *c)* outer circle. *d)* intermediate circle.
*c)* outer circle
Transnational corporations are defined as: *a)* doing business in the state in which they are incorporated. *b)* doing business in the state of incorporation as well as neighboring states in the same country. *c)* parent entities that control assets of affiliated entities in foreign countries. *d)* entities formed between two or more parties only to import essential goods.
*c)* parent entities that control assets of affiliated entities in foreign countries.
A(n) _____ society is one that has multiple groups and institutions through which power is diffused. *a)* oligarchic *b)* totalitarian *c)* pluralistic *d)* power elite
*c)* pluralistic
The saying, "Your right to swing your fist ends where my nose begins" is a colloquial version of the: *a)* conventionalist ethic. *b)* organization ethic. *c)* principle of equal freedom. *d)* principle of proportionality.
*c)* principle of equal freedom
The First Amendment: *a)* gives each state sovereign immunity from being sued in federal court by someone of another state or country. *b)* allows the Congress to levy tax without appointing it among the states or basing it on Census results. *c)* protects rights of free speech, freedom of the press, and freedom of assembly. *d)* gives defendants in criminal cases the right to a speedy trial.
*c)* protects rights of free speech, freedom of the press, and freedom of assembly.
The lending of money for interest is known as: *a)* predatory borrowing. *b)* predatory lending. *c)* usury. *d)* alternative giving.
*c)* usury
What agreement was formed in 1967 by five countries—the Philippines, Indonesia, Malaysia, Singapore, and Thailand? *a)* EU *b)* NAFTA *c)* Mercosur *d)* ASEAN
*d)* ASEAN
What is the primary focus of the Sarbanes-Oxley Act of 2002? *a)* Business bankruptcy *b)* Pricing practices *c)* Individual bankruptcy *d)* Accounting rules
*d)* Accounting rules
Which of the following was perhaps the greatest defect of state corporate governance laws? *a)* Inability to control costs in emerging markets. *b)* Inability to provide access to low-cost funding sources. *c)* Inability to regulate litigation pertaining to fiduciary responsibilities. *d)* Inability to prevent fraud and manipulation in national capital markets.
*d)* Inability to prevent fraud and manipulation in national capital markets.
Which of the following is a major reason for the diffusion and decentralization of power in the government? *a)* Congress dominated by a few major leaders. *b)* Lack of reforms in Congress. *c)* The rise of political parties. *d)* Increased complexity of government.
*d)* Increased complexity of government.
Executive-branch agencies have to submit proposed and final rules to the ____, whereas independent regulatory commissions must follow procedures in the: *a)* Office of Administration; Congressional Review Act. *b)* Office of Management and Budget; Sherman Antitrust Act. *c)* Office of Personnel Management; Emergency Economic Stabilization Act. *d)* Office of Information and Regulatory Affairs; Administrative Procedures Act.
*d)* Office of Information and Regulatory Affairs: Administrative Procedures Act
Which of the following countries has a feminine culture wherein cooperation and compromise have much higher priority than assertiveness and ambition? *a)* The United Stated *b)* Japan *c)* Mexico *d)* Scandinavia
*d)* Scandinavia
This is the economic growth that meets the needs of the present without consuming social and environmental resources in a way that harms future generations. *a)* Protectionism *b)* Assurance *c)* Triple bottom line *d)* Sustainable development
*d)* Sustainable development
_____ discrimination is a pattern or practice of individual acts or rules in a corporate culture that permits or condones discrimination. *a)* Subtle *b)* Reverse *c)* Positive *d)* Systemic
*d)* Systemic
Transportation is an example of which force in globalization? *a)* Capital *b)* Ideas *c)* NGOs *d)* Technology
*d)* Technology
Which of the following statutes was established to reform financial regulation and prevent a recurrence of the 2007-2008 financial crisis? *a)* The Sarbanes-Oxley Act *b)* The Uniform Securities Act *c)* The International Emergency Economic Powers Act *d)* The Dodd-Frank Act
*d)* The Dodd-Frank Act
Which of the following Acts prohibits employers from discriminating against applicants or employees based on hereditary information? *a)* The Employment Non-Discrimination Act *b)* The Biologics Control Act *c)* The Emergency Medical Treatment and Active Labor Act *d)* The Genetic Information Nondiscrimination Act
*d)* The Genetic Information Nondiscrimination Act
Which of the following statements about the Industrial Workers of the World (IWW) is NOT true? *a)* The Industrial Workers of the World (IWW) was formed in 1905. *b)* IWW proposed to represent all workers of both sexes and all races and in every industry in the fight to overthrow the capitalist system. *c)* Laws were passed to prevent IWW members from speaking or assembling and it defied them, sometimes violently. *d)* The IWW was the largest union and its unmitigated rejection of the system scared mainstream America and it was severely repressed.
*d)* The IWW was the largest union and its unmitigated rejection of the system scared mainstream America and it was severely repressed.
Which of the following acts outlawed the yellow dog contracts? *a)* he National Labor Relations Act *b)* The Worker Adjustment and Retraining Act *c)* The McNamara-O'Hara Service Contract Act *d)* The Norris-LaGuardia Anti-Injunction Act
*d)* The Norris-LaGuardia Anti-Injunction Act
Which of the following laws raised 890 tariff lines covering tens of thousands of items and increasing the average American duty on imported goods? *a)* The Fordney-McCumber Tariff Act *b)* The Buy American Act *c)* The Trade and Tariff Act *d)* The Smoot-Hawley Tariff Act
*d)* The Smoot-Hawley Tariff Act
Which of the following is true about the business scenario during the 19th century? *a)* After the Civil Wars, agriculture started dominating industries. *b)* West Virginia and Kentucky were controlled by railroads. *c)* The presence of business was least in Washington, D.C. *d)* The Southern American states were more dependent on agriculture prior to the Civil Wars.
*d)* The Southern American states were more dependent on agriculture prior to the Civil Wars.
Which of the following abolished slavery? *a)* The Emancipation Proclamation *b)* Executive Order 13526 *c)* The Sixteenth Amendment *d)* The Thirteenth Amendment
*d)* The Thirteenth Amendment
In considering whether or not to do a certain action based on ethical reasoning, a manager asks herself: "If I act in this way, would my family approve of my actions?" Which of the following ethical principles is she applying? *a)* The ends-means ethic *b)* The intuition ethic *c)* The organization ethic *d)* The disclosure rule
*d)* The disclosure rule
Which of the following guidelines will help create an effective good-news message? *a)* The message should use the we-viewpoint instead of the you-viewpoint. *b)* The message should be composed using the indirect plan of organizing information. *c)* The objective or main part of the message should be reserved for the ending. *d)* The message should be concluded with an appropriate, friendly comment. *e)* All the details of the message should be covered in the first paragraph.
*d)* The message should be concluded with an appropriate, friendly comment.
This ethical principle requires the manager to calculate which course of action, among alternatives, will result in the greatest benefit for the company and all workers. *a)* The might-equals-right ethic *b)* The ends-means ethic *c)* The proportionality ethic *d)* The utilitarian ethic
*d)* The utilitarian ethic
Brain research into neural sensitivity affirms this ethic if it is defined as moral intuition enlightened by experience and ethical education. *a)* The intuition ethic *b)* The rights ethic *c)* The equal freedom ethic *d)* The virtue ethic
*d)* The virtue ethic
Which of the following is true regarding salarymen? *a)* They constantly look for better opportunities. *b)* Their performance is not stressed upon. *c)* They take constant vacations. *d)* They must work long hours.
*d)* They must work long hours.
This is the state in which company social policies, processes, and actions are visible to external observers. *a)* Opacity *b)* Integrity *c)* Accountability *d)* Transparency
*d)* Transparency
Which of the following refers to a set of free market policies imposed on developing nations by the IMF and the World Bank as loan conditions? *a)* Structural adjustment program *b)* Autarky *c)* The Bretton Woods system *d)* Washington Consensus
*d)* Washington Consensus
Halina has received a customer inquiry asking about the availability of her hotel's penthouse suite on April 5th. She has determined that the suite is available, and is composing a response for the customer. Which of the following openings should Halina use? *a)* I have received your message dated April 5, in which you ask... *b)* Thank you for your inquiry about our penthouse suite. *c)* Thank you for your message dated April 5. *d)* Yes, our penthouse suite is available on April 5th. *e)* We appreciate you contacting our hotel.
*d)* Yes, our penthouse suite is available on April 5th.
Which of the following should be included in the body of a direct claim? *a)* a statement indicating that you will take your business elsewhere *b)* a direct statement that uses the word 'you' and points out what the reader did wrong *c)* a statement that indirectly places the blame on the reader *d)* a paragraph explaining the problem to help your reader understand your requirements *e)* a statement that uses words such as 'disappointment' and 'complaint' to accurately reflect your emotions and the situation
*d)* a paragraph explaining the problem to help your reader understand your requirements
Negligence is: *a)* a misinterpretation which affects a person's reputation in society. *b)* illegal participation in an otherwise legal activity. *c)* deliberately exposing a person to the risk of injury. *d)* an unintentional failure to act as a responsible, prudent person exercising ordinary care.
*d)* an unintentional failure to act as a responsible, prudent person exercising ordinary care
The FDA has the authority to: *a)* regulate the safety and labeling of alcoholic beverages. *b)* protect the public from fraudulent sale practices. *c)* regulate the quality, safety, and labeling of poultry. *d)* approve human and veterinary drug and medical services.
*d)* approve human and veterinary drug and medical services
Stockholders: *a)* cannot propose resolutions for votes. *b)* are said to be owners of corporations. *c)* own a fraction of the corporation as property. *d)* are liable for the corporation's actions.
*d)* are said to be owners of corporations
With regard to affirmative action, advocates of utilitarian ethics: *a)* raise questions about the ultimate fairness of affirmative action. *b)* say that discrimination in favor of protected groups is benevolent of intention. *c)* say that ethics require calculations about the overall costs to society of affirmative action. *d)* argue that preferential treatment policies benefit everyone by making fuller use of talent.
*d)* argue that preferential treatment policies benefit everyone by making fuller use of talent
Verification by audit that information in a corporate sustainability report is correct is known as: *a)* triple bottom line. *b)* social audit. *c)* sustainability reporting. *d)* assurance.
*d)* assurance
The slender margin atop the earth's surface that supports life is called the: *a)* hydrosphere. *b)* ionosphere. *c)* lithosphere. *d)* biosphere.
*d)* biosphere
Laws that prohibited stores from opening on Sundays were called: *a)* soft laws. *b)* tort laws. *c)* hard laws. *d)* blue laws.
*d)* blue laws
The Federal Trade Commission (FTC) has broad duties to: *a)* ban the sale of products that expose consumers to unreasonable risks. *b)* prohibit discrimination by lenders based on religion. *c)* set safety standards for radiation-emitting products. *d)* challenge mergers and acquisitions that reduce competition or innovation.
*d)* challenge mergers and acquisitions that reduce competition or innovation
The National Highway Traffic Safety Administration does all of the following EXCEPT: *a)* mandates minimum safety standards for automobiles, trucks, and their components. *b)* establishes fuel economy standards for cars and light-duty trucks. *c)* administers grants for states and cities to promote highway safety. *d)* conducts its own investigations for information about defects.
*d)* conducts its own investigations for information about defects.
The exercise of authority over members of a corporate community is called: *a)* corporate performance management. *b)* corporate sustainability. *c)* corporate statism. *d)* corporate governance.
*d)* corporate governance
The debasement of integrity for money, position, privilege, or other self-benefit is termed as: *a)* manipulation. *b)* exploitation. *c)* lobbying. *d)* corruption.
*d)* corruption
All of the following are governmental forces of globalization EXCEPT: *a)* erosion of sovereignty by capital markets. *b)* pressure to lower trade barriers. *c)* pressure to reduce social welfare for citizens. *d)* creation of externalities such as resource depletion.
*d)* creation of externalities such as resource depletion.
Milton Friedman: *a)* advocated policies to minimize the market's role. *b)* wanted the practice of Social Security to continue. *c)* wanted the detailed regulations of industries to continue. *d)* desired to turn America's national parks over to corporations.
*d)* desired to turn America's national parks over to corporations.
With regard to MNCs in the United States: *a)* it is still rare for top executives to be naturalized citizens. *b)* boards of directors are dominated by foreign country majorities. *c)* most employees at company headquarters are foreign country nationals. *d)* each company must be chartered by a state.
*d)* each company must be chartered by a state
The philosophy that social progress comes when individuals freely pursue their self-interests in unregulated markets is known as: *a)* socialism. *b)* mercantilism. *c)* imperialism. *d)* economic liberalism.
*d)* economic liberalism
The Securities Exchange Act of 1934 Act: *a)* required companies to file annual reports called 10-Qs. *b)* obligated companies to file quarterly reports called 8-Ks. *c)* entailed companies to file reports known as 10-Ks that quickly update investors on significant events. *d)* established the Securities and Exchange Commission (SEC).
*d)* established the Securities and Exchange Commission (SEC)
Costs of production borne not by the enterprise that causes them but by society are called: *a)* internal diseconomies. *b)* internal economies. *c)* benefits. *d)* externalities.
*d)* externalities
The just price: *a)* is the economic price for which a good or service is offered in the marketplace. *b)* incorporates an excessive profit. *c)* is determined by supply and demand without any moral dimension. *d)* is inspired by fairness.
*d)* is inspired by fairness.
The Roman Catholic Church exhorted the merchants to charge a _____ price for their wares. *a)* market *b)* natural *c)* promotional *d)* just
*d)* just
Separation of powers is the constitutional arrangement that separates the power of the: *a)* federal government from the state governments. *b)* central government of a sovereign state from the government at a subnational level. *c)* elected legislature from other estates which are subservient to it. *d)* legislative, executive, and the judicial functions of the national government into three branches.
*d)* legislative, executive, and the judicial functions of the national government into three branches
A/an _____ is a model of the methods an organization can use to achieve certain goals. *a)* process certification *b)* service principle *c)* assurance standard *d)* management standard
*d)* management standard
All of the following statements were the interrelated themes of broader responsibility that emerged during the Progressive era EXCEPT: *a)* managers were trustees, whose corporate roles put them in positions of power. *b)* managers had an obligation to balance multiple interests. *c)* many managers subscribed to the service principle. *d)* managers concentrated more on promoting their self-interests.
*d)* managers concentrated more on promoting their self-interests.
Epidemiological studies: *a)* have high statistical power. *b)* are totally reliable and valid. *c)* do not measure human deaths. *d)* measure real human illness.
*d)* measure real human illness
When Hershey Foods states that its purpose is "to consistently create shareholder value by achieving excellence in every aspect of our business," this is called its: *a)* social issue. *b)* GRI. *c)* corporate social reporting method. *d)* mission statement.
*d)* mission statement
According to the U.S. Sentencing Commission's Guidelines Manual, if criminal conduct occurs: *a)* stop the program. *b)* terminate participation. *c)* establish dynamic psychological processes. *d)* modify the program to prevent repeat offenses.
*d)* modify the program to prevent repeat offenses
Democracy
A form of government requiring popular sovereignty, political liberty, and majority rule Is government in which power and civic responsibility are exercised by all adult citizens, directly, or through their freely elected representatives. Characteristics of democracy include: o Citizen participation o Universal suffrage o Free and fair elections o Political liberty o Popular sovereignty o Majority rule and minority rights o Individual rights and freedoms o Cooperation and compromise/ social consensus o Decentralized government
Liassez-faire
An economic philosophy that rejects government intervention in markets
Value
An enduring belief about which fundamental choices in personal life and social life are "correct"
Stakeholder
An entity that is benefitted or burdened by the actions of a corporation or whose actions may benefit or burden the corporation The corporation has an ethical duty toward these entities
Historical force
An environmental force of unknown origin and mysterious action that provides the energy for events, causing a distinct chain of events The *(9)* Deep Historical Forces are: o Industrial Revolution o Inequality o Population Growth o Technology o Globalization o Nation-States o Ideologies o Great Leaaders o Chance
Verification by audit that information in a corporate sustainability report is reliable
Assurance
A profit-making activity that provides products and services that are intended to satisfy human needs is called a(n) _______.
Business
The study of good and evil, right and wrong, and just and unjust actions in business
Business Ethics
The underlying idea or theory that explains how a business will create value by making and selling products or service in the market
Business Model
_____ is an economic ideology with a bundle of values including private ownership of means of production, the profit motive, free competition, and limited government restraint in markets.
Capitalism
A form of strategic philanthropy in which charitable contributions are based on purchases of a product
Cause Marketing
Payments awarded to redress actual, concrete losses suffered by injured parties
Compensatory Damages
An ethics and compliance program that emphasizes following rules in laws, regulations, and policy.
Compliance Approach
The Economic Environment
Consists of forces that influence market operations, including: o overall economic activity o commodity prices o interest rates o currency fluctuations o wages o competitors' actions o and government policies.
A set of values, norms, rituals, formal rules, and physical artifacts that exists in a company
Corporate Culture
A system of shared knowledge, values, norms, customs, and rituals that are acquired by social learning is called a ____
Culture
An agreement between a prosecutor and a corporation to delay prosecution while the company takes remedial actions
Deferred Prosecution Agreement
The _____ is calculated as the total land area, in hectares, required to maintain worldwide human consumption of food, wood, fiber, energy, and water.
Ecological Footprint
Colette is a business executive from France, and Franz is a business executive from Germany. Colette does not speak German, nor does Franz speak French. Which language are they most likely to conduct business in?
English
List the *(6)* Key External Environments
*G -* Government *E -* Economy *T -* Technology *C -* Culture *N -* Nature *L - * Law
Human rights are an example of which force in globalization?
Ideas
History
The study of phenomena moving through time
*T/F* A community firm is a Japanese company that operates on a model analogous to a family.
True
Darwinism
constant improvement characterized the biological world
The uniform currency used by the European Union (EU) is called the:
euro
The opening of a routine inquiry should always
give the reader a clear sense of your purpose
When is it best to use the indirect approach in creating a message?
when the message is likely to evoke a negative response from the reader
*T/F* A manufacturer or seller can be held liable for a breach of express warranty but not implied warranty.
False
*T/F* A pattern of individual acts in a corporate culture that permits or condones discrimination is known as reverse discrimination.
False
*T/F* A peak association refers to a group that represents the political interests of the industrial market leader.
False
*T/F* A policy is a decree issued by an agency to implement a law passed by Congress.
False
*T or F:* A concern with the stakeholder theory is that it is not always clear who or what a legitimate stakeholder is.
True
*T or F:* An environmental force of unknown origin and mysterious action that provides the energy for events is known as a historical force.
True
*T or F:* Economic activity is a geophysical force with power to change the natural environment.
True
*T or F:* Great Britain was the first society to usher in the Industrial Revolution.
True
*T or F:* In addition to unprecedented wealth creation and new material comforts, capitalism also brings in risks of economic shocks.
True
*T or F:* Institutions are formal patterns of relations that link people together to accomplish a goal.
True
*T or F:* The broad duties of a business that are needed to obtain the support of society are called its social contract.
True
*T or F:* The business-government-society (BGS) field is the study of this environment and its importance for managers.
True
*T or F:* The dominance model believes that society is undemocratic in its operations.
True
*T or F:* The public generally believes that a business has social responsibilities beyond merely making a profit.
True
The economic environment consists of forces that influence market operations, including: *(7)*
*C -* Commodity Prices *I -* Interest Rates *G -* Government Policy *O -* Overall economic activity *C - * Currency fluctuations *C - * Competitor's actions *W -* Wages
What are the *(5)* Internal Environments?
*C -* Corporate culture *O -* Owners *D -* Directors *E -* Employees *M -* Managers
*T or F:* Liberalization refers to the creation of networks of human interaction that span worldwide distances.
*False.* *Globalization* refers to the creation of networks of human interaction that span worldwide distances.
*T or F:* A form of government requiring popular sovereignty, political liberty, and majority rule is the androcracy.
*False.* A form of government requiring popular sovereignty, political liberty, and majority rule is the *democracy*
*T or F:* Change in the business environment is the work of 10 deep historical forces or streams of related events.
*False.* Change in the business environment is the work of *9* deep historical forces or streams of related events.
*T or F:* Global income inequality is measured by the Lorenz index.
*False.* Global income inequality is measured by the *Gini Index*
*T or F:* Governments are secondary stakeholders to corporations.
*False.* Government are *primary* stakeholders to corporations
*T or F* The structures and processes in a society that make and apply policies and rules are called businesses.
*False.* The structures and processes in a society that make and apply policies and rules are called *government.* *Businesses* are a profit-making activity that provides products and services that are intended to satisfy human needs.
*(8)* Characteristics of democracy include:
*M -* Majority rule and minority rights *I -* Individual rights and freedoms *C -* Cooperation and compromise/ social consensus *C -* Citizen participation *U -* Universal suffrage *P -* Political liberty *P -* Popular sovereignty *D -* Decentralized government *F -* Free and fair elections
Companies that join the ____, a voluntary initiative, must reduce emissions, energy use, and waste beyond legal requirements. *a)* EcoManagement and Audit Scheme *b)* International Organization for Standardization *c)* Principles for Responsible Investment *d)* FTSE4Good Global Index
*a)* EcoManagement and Audit Scheme
The _____ is required to set national standards for air pollutants at levels that protect public health and the environment. *a)* Environmental Protection Agency *b)* Council on Environmental Quality *c)* U.S. Chemical Safety and Hazard Investigation Board *d)* U.S. Green Building Council
*a)* Environmental Protection Agency
____ refers to actions taken by managers to adapt a company to changes in its market and sociopolitical environments.
*Strategic Management* refers to actions taken by managers to adapt a company to changes in its market and sociopolitical environments.
What are the *(5)* 'waves' of innovation and the technologies that drove them?
*Wave 1: The Industrial Revolution* (1771-1830) o Water-powered machinery o Textiles o Iron o Steam engine* *Wave 2: Industrial Production* (1828-1880) o Steam o Railways o Steel o Heavy engineering* *Wave 3: Scientific Revolution* (1875-1930) o Electricity o Chemicals o Internal-combustion engine *Wave 4: Scientific Technical Revolution* (1930-1970) o Petrochemical industry o Electronics o Aviation o Automobile* o Mass production* *Wave 5: Information and Telecommunication Revolution* (1970-2010) o Digital networks o Software o New Media o Biotechnology o Microcomputers* o Information* o Telecommunication* (asterisks * represent technologies found via the internet, supplemented with those found on Ch2 PPT, slide 18)
Which of the following statements is true about ideologies? *a)* All ideologies have the power to organize collective activity. *b)* Ideologies are structures and processes that authoritatively make and apply policies and rules. *c)* Ideologies are essential to coordinate the work of individuals who have no direct relationship with each other. *d)* Secular and sacred ideologies are distinct from one another and rarely overlap.
*a)* All ideologies have the power to organize collective activity.
Which of the following is a major provision of the Sarbanes-Oxley Act? *a)* Audit firms are prohibited from doing consulting work for corporations while also auditing their books. *b)* It creates a Private Company Accounting Oversight Board to oversee accounting firms and improve the accuracy of their audits. *c)* Every board of directors must create audit committees consisting of independent directors who receive consulting or advisory fees from the company other than their compensation. *d)* Boards of directors are permitted to, at their discretion, approve personal loans for company executives.
*a)* Audit firms are prohibited from doing consulting work for corporations while also auditing their books.
In reality, the sequence of the flow of authority of a corporation from the powers granted in the charter of the corporation is from the: *a)* CEO to the directors to the stockholders. *b)* directors to the CEO to the stockholders. *c)* stockholders to the directors to the CEO. *d)* CEO to the stockholders to the directors.
*a)* CEO to the directors to the stockholders
A universal measure that uses the warming potential of CO2 as a reference for the relative warming potential of the six greenhouse gases covered by the Kyoto Protocol is the: *a)* CO2 equivalent. *b)* carbon dioxide equivalent. *c)* TRI. *d)* EMS.
*a)* CO2 equivalent
_____ are those social issues/impacts related to factors that influence success in the marketplace. *a)* Competitive social issues *b)* Generic social issues *c)* Value chain social impacts *d)* Comprehensive social impacts
*a)* Competitive social issues
Which of the following is an ideology in which the pursuit of material goods beyond subsistence shapes social conduct? *a)* Consumerism *b)* Citizenship *c)* Materialism *d)* Productivism
*a)* Consumerism
The treaty that requires nations to preserve biological diversity by promoting sustainable economic activity is known as the: *a)* Convention on Biological Diversity. *b)* 2010 Biodiversity Target. *c)* Global Biodiversity Information Facility. *d)* Pacific Biodiversity Information Forum.
*a)* Convention on Biological Diversity
Which of the following statements about workplace values is true? *a)* Cultures that place emphasis on interpersonal relationships rather than planning, as is the case in Spain, tend to be more relaxed in business. *b)* Canadian culture views the employee-employer relationship like a family and expects it to last for a lifetime. *c)* American culture focuses on networking and interpersonal relationships rather than maximizing production or planning. *d)* Cultures that have high power distance also tend to expect workers to be free to move from job to job. *e)* All cultures believe that if you put hard work before pleasure, success will follow.
*a)* Cultures that place emphasis on interpersonal relationships rather than planning, as is the case in Spain, tend to be more relaxed in business.
One of the arguments that supports this theory is that there is a small group of individuals that exist, by virtue of wealth and position, control the nation and act in undemocratic ways. *a)* Dominance theory *b)* Pluralist theory *c)* Agonism theory *d)* Positive political theory
*a)* Dominance theory
When multinational corporations invest their funds to start a business in a foreign country, this is called a(n): *a)* FDI. *b)* TPI. *c)* LDC. *d)* TNI.
*a)* FDI
The _____ is a daily government publication containing proposed rules, final rules, and notices of public meetings by regulatory agencies, and presidential executive orders. *a)* Federal Register *b)* Code of Federal Regulations *c)* Official Congressional Directory *d)* United States Reports
*a)* Federal Register
When ready, rules in their final wording are printed in the: *a)* Federal Register. *b)* Code of Federal Regulations. *c)* Official Congressional Directory. *d)* United States Reports.
*a)* Federal Register
The basic statute for fighting water pollution in the United States is the: *a)* Federal Water Pollution Control Act Amendments of 1972. *b)* Water (Prevention and Control of Pollution) Act of 1974. *c)* Water Pollution Program Improvement Act. *d)* Safe Drinking Water Act.
*a)* Federal Water Pollution Control Act Amendments of 1972
Corporations are not allowed to invoke the _____ Amendment right against self-incrimination when prosecutors ask them to turn over documents related to a crime. *a)* Fifth *b)* Sixth *c)* Fourteenth *d)* Fifteenth
*a)* Fifth
_____ occurs when networks of economic, political, social, military, scientific, and environmental interdependence grow to span worldwide distances. *a)* Globalization *b)* Sovereignty *c)* Socialism *d)* Protectionism
*a)* Globalization
"Do unto others as you would have them do unto you" is the basic tenet of the: *a)* Golden Rule. *b)* Doctrine of the Mean. *c)* organization ethic. *d)* rights ethic.
*a)* Golden Rule
_____ is a situation where sexually offensive conduct is pervasive in the workplace, making work unreasonably difficult for an affected individual. *a)* Hostile environment *b)* Verbal abuse *c)* Quid pro quo *d)* Anti-social behavior
*a)* Hostile environment
All variations of ethical principle should conform to which of the following? *a)* Hypernorms *b)* Externalities *c)* Moral muteness *d)* Master morality
*a)* Hypernorms
Which of the following is true regarding immigration in various countries? *a)* Immigration generally brings an influx of younger workers who are less costly and more adaptable. *b)* Many European nations are strongly ethnocentric and welcome immigrants. *c)* The Japanese easily integrate with non-Japanese people in their workplaces. *d)* Since the replacement rate in the United States has fallen below the fertility rate, continued immigration will prevent the population declines facing Europe and Japan.
*a)* Immigration generally brings an influx of younger workers who are less costly and more adaptable.
Which of the following is NOT a part of the principles of good regulation set forth by the World Bank? *a)* Increase court involvement in business matters. *b)* Focus on enhancing property rights. *c)* Expand the use of technology. *d)* Make reform a continuous process.
*a)* Increase court involvement in business matters.
Which of the following statements about a CSR review is false? *a)* It explores regulatory requirements, but cannot examine competitors' initiatives. *b)* It involves an engagement of stakeholders to reveal expectations in society. *c)* It can begin with a definition of CSR to provide a focus. *d)* It involves a discovery of core values.
*a)* It explores regulatory requirements, but cannot examine competitors' initiatives.
Which of the following is true regarding the common-law principle that governs the employer-employee relationship in the United States? *a)* It holds that employer and employees may enter voluntary employment contracts. *b)* It holds that employers and employees can end their agreement subject to predetermined conditions. *c)* It allows the employee to work for the employer's and his/her benefit. *d)* It says that when a conflict arises between an employee and an employer, the employee's viewpoint should be considered.
*a)* It holds that employer and employees may enter voluntary employment contracts.
Which of the following statements about the Seventeenth Amendment is true? *a)* It instituted the direct election of senators by voters in each state. *b)* It gave women the right to vote. *c)* It gave companies the freedom to lobby. *d)* It defined monetary campaign contributions as a form of speech.
*a)* It instituted the direct election of senators by voters in each state.
Which of the following statements is true about the Department of Homeland Security? *a)* It issues rules affecting every industry. *b)* Its budget is almost 10 times that of the next largest agency, the EPA. *c)* It has 60,000 employees. *d)* It is primarily a business regulator.
*a)* It issues rules affecting every industry
Which of the following statements about the stakeholder model is true? *a)* It reorders the priorities of management away from those in the market capitalism model. *b)* Exponents of this model agree on how to identify a stakeholder. *c)* It makes a realistic assessment of power relationships between the corporation and other entities. *d)* It sets up clear guidelines to measure profit.
*a)* It reorders the priorities of management away from those in the market capitalism model.
Which of the following is true regarding the progressive movement? *a)* It was less radical than populism. *b)* It had narrower appeal than populism. *c)* It was strongly opposed by the urban middle class and professionals. *d)* It was less effective than populism.
*a)* It was less radical than populism.
Which of the following is true regarding the competitive pressures faced by American companies? *a)* Large industries such as airlines and telecommunications are deregulated. *b)* Foreign trade has been declining at a constant rate since 1960. *c)* In less affluent, less industrialized countries, wages are lower due to scarcity of labor compared with demand. *d)* By global standards, American workers are quite economical.
*a)* Large industries such as airlines and telecommunications are deregulated.
Which of the following statements is true about the regulation of lobbyists? *a)* Lobbyists have been regulated since 1946, when they were first required to register with the clerks of the House and Senate. *b)* The Lobbying Disclosure Act requires individuals and corporations engaged in lobbying to register with the House of Commons. *c)* Four times a year, the individuals and corporations engaged in lobbying must disclose their political contributions to candidates. *d)* The House and the Senate have adopted different rules to prevent the appearance of impropriety.
*a)* Lobbyists have been regulated since 1946, when they were first required to register with the clerks of the House and Senate.
_____ is a term that denotes both the ideology of using markets to organize society and a set of policies to free markets from state intrusion. *a)* Neoliberalism *b)* Embedded liberalism *c)* Social liberalism *d)* Liberalism
*a)* Neoliberalism
As a response to the economic depression in 1932, President Franklin D. Roosevelt proposed the ____, a series of programs to bring "Relief, Recovery, and Reform." *a)* New Deal *b)* Square Deal *c)* Fair Deal *d)* New Frontier
*a)* New Deal
Which of the following is accurate regarding the rise of antagonistic groups? *a)* New groups that focused on consumer, environmental, taxpayer, civil rights, and other issues were on the rise. *b)* Corporations continued dominating Washington politics with quiet, behind-the-scenes influence over key leaders. *c)* The public interest movement's focus is now on legislation, not on forms of civil regulation. *d)* The power in Washington, D.C. started becoming more centralized.
*a)* New groups that focused on consumer, environmental, taxpayer, civil rights, and other issues were on the rise.
Which of the following is a reason for the persisting gender wage gap? *a)* Occupational segregation places many women in female-dominated occupations that tend to be lower paying than male-dominated ones. *b)* Employers never hesitate to invest heavily in training women, thus giving women an equal opportunity for promotions. *c)* The earning gap does not reflect elements of sex discrimination. *d)* Although globalization has narrowed gender wage differentials, especially in high-skill occupations, they persist due to cultural traditions that shape labor market characteristics.
*a)* Occupational segregation places many women in female-dominated occupations that tend to be lower paying than male-dominated ones.
Which of the following were formidable business adversaries that emerged during the 19th century? *a)* Organized labor and the Anti-Saloon League *b)* The Progressive movement and the Modern Whig Party *c)* The Populist movement and the Progressive movement *d)* The Anti-Saloon League and the Populist movement
*a)* Organized labor and the Anti-Saloon League
Which of the following is an ideal opening for a direct claim? *a)* Please adjust invoice 3459 to show that we ordered six office chairs, not seven. *b)* Unfortunately, you shipped only three laptops instead of the five we ordered. *c)* On November 1, our team met and decided it was time to upgrade the phones for our field representatives. *d)* Imagine our disappointment when we received our order and discovered three broken glasses. *e)* You shipped us three tablets that didn't work, and you shipped them later than you promised.
*a)* Please adjust invoice 3459 to show that we ordered six office chairs, not seven.
Which of the following claim messages presents its content in the most appropriate manner? *a)* Please replace the broken product by tomorrow. *b)* It was highly disappointing that our order was not fulfilled as per your service-level agreement. *c)* You guys really screwed up this time. *d)* Your delivery of a broken product was unacceptable. *e)* I am not happy about receiving the wrong product. You should be more careful.
*a)* Please replace the broken product by tomorrow.
____ is the limited, speculative purchase of stocks and bonds of a foreign company by individuals or mutual funds. *a)* Portfolio investment *b)* FDI *c)* TNI *d)* Direct investment
*a)* Portfolio investment
What doctrine propounds that government should protect business interests from foreign competitors. *a)* Protectionism *b)* The law of comparative advantage *c)* The marginalist theory *d)* The Truman Doctrine
*a)* Protectionism
Name the document sent to shareholders before the annual meeting that sets forth matters requiring their vote. *a)* Proxy statement *b)* Charter *c)* Share certificate *d)* Financial report
*a)* Proxy statement
Which of the following sectors includes jobs in retailing, transportation, and health care? *a)* Service *b)* Manufacturing *c)* Agricultural *d)* Goods-producing
*a)* Service
_____ represent every segment of global society and have many ways to restrict business, including boycotts, lawsuits, picket lines, media campaigns, and lobbying for more regulation. *a)* Social interest groups *b)* Governments *c)* Markets *d)* Economic stakeholders
*a)* Social interest groups
_____ power is the ability to influence the direction, rate, characteristics, and consequences of physical innovations as they develop. *a)* Technological *b)* Political *c)* Cultural *d)* Economic
*a)* Technological
Which of the following is a measure of social globalization? *a)* Telephone traffic *b)* The number of embassies in a country *c)* Tariff rates *d)* Import barriers
*a)* Telephone traffic
____ is a 1789 law permitting foreign citizens to litigate alleged violations of international law in U.S. federal district courts. *a)* The Alien Tort Claims Act *b)* The Sherman Antitrust Act *c)* The Foreign Exchange Regulation Act *d)* The Sarbanes-Oxley Act
*a)* The Alien Tort Claims Act
Which of the following was passed to prevent racial discrimination in "inns, public conveyances on land or water, theaters and other places of public amusement"? *a)* The Civil Rights Act of 1875 *b)* Executive Order 11246 *c)* The Civil Rights Act of 1866 *d)* Executive Order 10925
*a)* The Civil Rights Act of 1875
Which of the following agencies sets the drinking water standards? *a)* The Environmental Protection Agency *b)* The Food Safety and Inspection Service *c)* The Consumer Product Safety Commission *d)* The Food and Drug Administration
*a)* The Environmental Protection Agency
Which of the following federal agencies was established in 1966 to set highway safety standards? *a)* The Federal Highway Administration *b)* The National Transportation Safety Board *c)* The National Highway Traffic Safety Administration *d)* The Federal Motor Carrier Safety Administration
*a)* The Federal Highway Administration
Which Act makes it illegal for U.S. citizens anywhere in the world to bribe foreign officials? *a)* The International Anti-Bribery Act *b)* The Foreign Corrupt Practices Act *c)* The Sarbanes-Oxley Act *d)* The Foreign Investment and National Security Act
*a)* The Foreign Corrupt Practices Act
*T or F:* Theories simplify and organize areas of knowledge by describing patterns or regularities in the subject matter.
True
The main purpose of what code is to boost economic growth of its members by expanding trade. *a)* The OECD Guidelines for Multinational Enterprises *b)* The Caux Round Table principles for business *c)* The Business Charter for Sustainable Development *d)* The FLA Workplace Code of Conduct
*a)* The OECD Guidelines for Multinational Enterprises
Which Act gave the Environmental Protection Agency the authority to manage hazardous waste from "from cradle to grave"? *a)* The Resource Conservation and Recovery Act *b)* The Toxic Substances Control Act *c)* The Comprehensive Environmental Response, Compensation, and Liability Act *d)* The Federal Water Pollution Control Act
*a)* The Resources Conservation and Recovery Act
After the turn-of-the-century fraud scandals, Congress created requirements for antifraud mechanisms with this 2002 Act. *a)* The Sarbanes-Oxley Act *b)* The Confidential Information Protection and Statistical Efficiency Act *c)* The Federal Information Security Management Act *d)* The TEACH Act
*a)* The Sarbanes-Oxley Act
Which Act did Congress pass in 1933 that required companies to register securities and provide financial statements and other information to buyers before their sale? *a)* The Securities Act *b)* The Securities Exchange Act *c)* The Sarbanes-Oxley Act *d)* The Uniform Securities Act
*a)* The Securities Act
Which of the following was a major force that oppressed individualism in the northern colonies of America in the early 1800s? *a)* The ascetic Puritan theology *b)* The ascetic Presbyterian theology *c)* The Catholic Church *d)* The Separatist belief
*a)* The ascetic Puritan theology
Which of the following ethical principles is based on the fundamental idea of "a command that admits no exception"? *a)* The categorical imperative *b)* The Doctrine of the Mean *c)* The disclosure rule *d)* The rights ethic
*a)* The categorical imperative
Which of the following doctrines held that all persons were created equal and were entitled to the same opportunities and protections? *a)* The doctrine of natural rights *b)* The Hallstein Doctrine *c)* The Monroe Doctrine *d)* The Fairness Doctrine
*a)* The doctrine of natural rights
Identify the ethical principle that states that managers are responsible for the consequences when they create situations leading to both good and evil effects. *a)* The principle of proportionality *b)* The principle of justice *c)* The principle of utility *d)* The principle of equal freedom
*a)* The principle of proportionality
Which of the following believed that both good and evil were a natural part of human nature? *a)* The realist school *b)* The school of ethical relativism *c)* The school of ethical universalism *d)* The legalist school
*a)* The realist school
Which of the following statements about stereotypes is true? *a)* They are perpetuated by generalizations about cultures. *b)* They are flexible and constantly changing. *c)* They are not based on real life observations. *d)* They have no use in the modern world. *e)* They help us better get to know individuals.
*a)* They are perpetuated by generalizations about cultures.
_____ of the Civil Rights Act of 1964 prohibits discrimination in any aspect of employment. *a)* Title VII *b)* Title IX *c)* Title XI *d)* Title V
*a)* Title VII
What is the primary mission of the International Monetary Fund? *a)* To promote international economic stability. *b)* To promote long-term development in the poorest countries. *c)* To promote international fair trade. *d)* To overcome shortages of private capital.
*a)* To promote international economic stability
The purpose of this concept is to appraise the overall impact of a firm's operations by adding non-financial measures to traditional financial results. *a)* Triple bottom line *b)* Traditional business model *c)* Progressive business model *d)* Code of conduct
*a)* Triple bottom line
The _____ was a program that gave federal regulators power to exchange funds for an ownership interest in banks and corporations. *a)* Troubled Asset Relief Program *b)* Temporary Liquidity Guarantee Program *c)* NCUA Corporate Stabilization Program *d)* Commercial Paper Funding Facility Program
*a)* Troubled Asset Relief Program
_____ is the ethical philosophy of the greatest good for the greatest number. *a)* Utilitarianism *b)* Capitalism *c)* Deep ecology *d)* Moral responsibility
*a)* Utilitarianism
_____ regulations do not require legal compulsions or sanctions. *a)* Voluntary *b)* Market incentive *c)* Required disclosure *d)* Command-and-control
*a)* Voluntary
Which of the followings statements about language and international business is true? *a)* When executives have no common language, they are likely to use English. *b)* English is the primary business language of the Americas, while German is the primary business language of Europe. *c)* English is only used to conduct business when a Canadian, American, or English company is involved. *d)* Because English is the main language of international business, non-native English speakers have no problems understanding it. *e)* English is so prevalent in international business that an executive from Cuba and an executive from Peru would use it to communicate with each other.
*a)* When executives have no common language, they are likely to use English.
Which of the following statements regarding the Gini index is true? *a)* Zero percent stands for absolute equality. *b)* It is a statistical measure of complexity. *c)* Fifty percent represents absolute inequality. *d)* Inequality reduces as the percentage figure rises toward 100.
*a)* Zero percent stands for absolute equality.
Sociologist C. Wright Mills saw American society as a pyramid of power and status. The base of the pyramid was composed of: *a)* a mass of powerless citizens. *b)* a large elite in command of the economic, political, and military domains. *c)* a big group of lieutenants who carried out the elite's policies. *d)* professional managers of corporations, politicians beholden to the elite for their election, and bureaucrats appointed by the politicians.
*a)* a mass of powerless citizens
The clause in Article I, Section 8 of the Constitution that gives the Congress the power to regulate business is called the: *a)* Commerce Clause. *b)* Contract Clause. *c)* Establishment Clause. *d)* Vesting Clause.
*a)*Commerce Clause
Policies that seek out, encourage, and sometimes give preferential treatment to employees in the groups protected by Title VII of the Civil Rights Act of 1964 are called: *a)* affirmative action. *b)* systematic discrimination policies. *c)* anti-harassment policies. *d)* quid pro quo.
*a)* affirmative action
A society that has its economic, political, and cultural values based on agriculture is called a(n) _____ society. *a)* agrarian *b)* postindustrial *c)* industrial *d)* tribal
*a)* agrarian
Facilitating payments: *a)* are small amounts of money demanded by minor officials to perform their regular duties. *b)* refer to anything of value improperly requested or given in exchange for a corrupt action. *c)* violate anti-bribery laws and are not tolerated in any nation. *d)* are endemic and routine in most developed nations.
*a)* are small amounts of money demanded by minor officials to perform their regular duties
Kinds of decisions made form a part of: *a)* assumptive values. *b)* tacit underlying values. *c)* espoused values. *d)* artifacts.
*a)* artifacts
Contingent valuation is the method of: *a)* assigning a price to ecological goods that are not traded in markets. *b)* calculating the dollar amount that people exposed to a risk are willing to pay to reduce the risk of premature death. *c)* estimating economic values for ecosystem services that directly affect market prices. *d)* harnessing market forces to motivate compliance with regulatory goals.
*a)* assigning a price to ecological goods that are not traded in markets
The call to pressure a company by not buying its products and services is known as a(n): *a)* boycott. *b)* injunction. *c)* picketing. *d)* economic sanction.
*a)* boycott
Direct investment means: *a)* buying or creating facilities in another country for producing in local markets. *b)* buying or creating facilities in home country. *c)* buying facilities based in home country for the purpose of exporting products. *d)* buying facilities in home country for the sole purpose of importing essential goods.
*a)* buying or creating facilities in another country for producing in local markets.
Which of the following is an example of a two-word verb? *a)* calm down *b)* negotiate quickly *c)* crawl under *d)* international communication *e)* close tightly
*a)* calm down
The theory of _____ valued nature primarily as a commodity to be used in wealth-creating activity that increased the vigor, welfare, and comfort of society. *a)* capitalism *b)* socialism *c)* altruism *d)* utilitarianism
*a)* capitalism
The learning of specific virtues such as prudence or honesty is known as: *a)* character development. *b)* intellectual development. *c)* affective development. *d)* social development.
*a)* character development
A _____ is a zone of ideas, discourse, and action dominated by progressive values, that transcends national societies and focuses on global issues. *a)* civil society *b)* political society *c)* government *d)* state
*a)* civil society
Formal statements of aspirations, principles, guidelines and rules, for corporate behavior are known as: *a)* codes of conduct. *b)* service principles. *c)* doctrines. *d)* norms.
*a)* codes of conduct
When a civil court requires payments by a company to correct "concrete losses" experienced by injured parties, these payments are called: *a)* compensatory damages. *b)* general damages. *c)* punitive damages. *d)* incidental damages.
*a)* compensatory damages
During industrialization: *a)* consumption supplants thrift and saving. *b)* less emphasis is placed on material things. *c)* self-restraint overwhelms wealth creation. *d)* rural, slow-paced societies remain unaltered.
*a)* consumption supplants thrift and saving.
The four fundamental standards to protect basic worker rights set forth in international labor conventions are known as _____ standards. *a)* core labor *b)* agency worker *c)* fair labor *d)* second New Deal
*a)* core labor
A government document that creates a corporation and defines its authority is called a: *a)* corporate charter. *b)* state charter. *c)* commerce charter. *d)* director's charter.
*a)* corporate charter
The legal authority for corporate managers and directors is derived from the: *a)* corporate charter. *b)* board of directors. *c)* stockholders. *d)* CEO.
*a)* corporate charter
At which level of legal power do industrial activities influence the laws of the society? *a)* Deeper level *b)* Surface level *c)* Apparent level *d)* Exterior level
*a)* deeper level
If dominating companies in an industry cut prices until competitors leave the market, and then raise prices again, they are engaging in: *a)* destructive competition. *b)* pure competition. *c)* monopolistic competition. *d)* perfect competition.
*a)* destructive competition
If an employer gives less favorable treatment to employees because of their race, color, religion, sex, or national origin, he/she is indulging in: *a)* disparate treatment. *b)* separate but equal treatment. *c)* reverse discrimination. *d)* diversity management.
*a)* disparate treatment
The idea that business is preeminent in American society, primarily because of its control of wealth, and that its power is both excessive and inadequately checked is based on the _____ theory of business power. *a)* dominance *b)* state autonomy *c)* pluralist *d)* agonism
*a)* dominance
The theory that humans are separate from nature because they have the power of reason and, unlike plants and animals, have souls is known as the theory of: *a)* dualism. *b)* atomism. *c)* emergentism. *d)* humanism.
*a)* dualism
Maximum achievable control technology is a performance standard used by the Environmental Protection Agency to control: *a)* emissions of hazardous air pollutants. *b)* emissions of criteria pollutants. *c)* water pollutants. *d)* land pollutants.
*a)* emissions of hazardous air pollutants
*T or F:* Values based on assumptions of security and affluence are known as postmaterialist values.
True
The idea that a manager has the right to take a certain action as long as it does not deprive a worker of one of his rights is fundamental to the ethical principle of: *a)* equal freedom. *b)* compensatory justice. *c)* proportionality. *d)* double effect.
*a)* equal freedom
Affirmative action complemented the ideal of: *a)* equality of result. *b)* equality of opportunity. *c)* achievement based on merit. *d)* individual rights before the law.
*a)* equality of result
Corporate cultural values found in documents such as mission statements and codes of ethics are known as: *a)* espoused values. *b)* artifacts. *c)* enacted values. *d)* tacit underlying values.
*a)* espoused values
The idea that ethical rules are "transcultural" because the same ethical rules apply to all cultures is a fundamental tenet in: *a)* ethical universalism. *b)* the theory of amorality. *c)* reciprocity. *d)* ethical relativism.
*a)* ethical universalism
The study of which actions are "right" and which actions are "wrong" is called: *a)* ethics. *b)* law. *c)* religion. *d)* master morality.
*a)* ethics
According to norms of distributive justice: *a)* fair criteria should be used to assign benefits and burdens of affirmative action. *b)* affirmative action destroys the right of all individuals to equal treatment before law. *c)* the overall benefit to society as a result of affirmative action should be calculated. *d)* discrimination in favor of protected groups is benevolent of intention.
*a)* fair criteria should be used to assign benefits and burdens of affirmative action
A government in which powers are divided between a central government and subdivision governments is called a(n): *a)* federal system. *b)* unitary system. *c)* confederation system. *d)* devolved system.
*a)* federal system
Advocates of social responsibility feel that: *a)* it is an ethical duty of corporations to promote social justice. *b)* social responsibility is impractical. *c)* forces other than social responsibility force full responsibility on corporations. *d)* it is an insufficient doctrine.
*a)* it is an ethical duty of corporations to promote social justice.
A price that incorporates a modest profit and is adequate to maintain a merchant in the social station to which they are born is known as: *a)* just price. *b)* market price. *c)* promotional price. *d)* cost price.
*a)* just price
The rightful use of business power is called: *a)* legitimacy. *b)* flexibility. *c)* interactivity. *d)* efficiency.
*a)* legitimacy
The economic policy of lowering tariffs and other barriers to encourage trade and investment is known as: *a)* liberalization. *b)* globalization. *c)* capitalism. *d)* multinationality.
*a)* liberalization
The Environmental Protection Agency uses the _____ dose-response rate model that assumes that there will be a proportionate decrease in cancers from large exposures to small ones. *a)* linear *b)* quantal *c)* graded *d)* indirect
*a)* linear
Emissions of manufactured gases containing chlorine and bromine, when released into the ____, persist and eventually rise into the ____, they are converted by chemical reactions into more reactive gases that destroy ozone. *a)* lower atmosphere; stratosphere *b)* higher atmosphere; troposphere *c)* lower atmosphere; mesosphere *d)* higher atmosphere; mesosphere
*a)* lower atmosphere; stratosphere
The transfer of work from a domestic to a foreign country, or to a foreign supplier is called: *a)* offshoring. *b)* telecommuting. *c)* nearshoring. *d)* homesourcing.
*a)* offshoring
The members of the broad political and social reform movement that took place in the early years of the 20th century are known as the: *a)* old Progressives. *b)* liberals. *c)* new Progressives. *d)* socialists.
*a)* old Progressives
Industries such as the steel industry and big agricultural sectors such as cotton, peanuts, sugarcane, and tobacco benefit from protectionist rules and subsidies. This is an example of the government: *a)* passing regulations to benefit special interests. *b)* regulating socially desirable goods and services. *c)* regulating socially desirable production methods. *d)* passing resolution of national and global problems.
*a)* passing regulations to benefit special interests
A group that represents the political interests of many companies and industries is called a: *a)* peak association. *b)* business association. *c)* trade association. *d)* sector association.
*a)* peak association
When businesses give money to candidates and lobby legislation, they are attempting to use: *a)* political power at the surface level. *b)* social power at the deeper level. *c)* cultural power at the abysmal level. *d)* legal power at the exterior level.
*a)* political power at the surface level
The political reform movement that arose among U.S. farmers in the late 1800s was the: *a)* populist movement. *b)* progressive movement. *c)* libertarian movement. *d)* socialistic movement.
*a)* populist movement
According to leading progressive, David C. Korten: *a)* power on earth was being transferred from national governments to transnational corporations which by their nature serve only the short-term interests of citizens. *b)* "a few hundred" multinational corporations are making daily business decisions which have more impact than those of most sovereign governments. *c)* developing nations should set up a stable and enabling regulatory environment that indulges the "concern of the business sector for national policies that are enabling but not overly regulating." *d)* in seeking return on capital invested, MNCs may build or buy facilities, contract with local suppliers, and hire workers.
*a)* power on earth was being transferred from national governments to transnational corporations which by their nature serve only the short-term interests of citizens
Civil regulation is also known as: *a)* private regulation. *b)* self-regulation. *c)* state regulation. *d)* voluntary regulation.
*a)* private regulation
Socialism poses a revolutionary challenge to _____ society because it requires a change in property relationships that destroys bedrock arrangements. *a)* communist *b)* capitalist *c)* anarchist *d)* feudal
*b)* capitalist
The Federal Trade Commission (FTC): *a)* promotes fair competition in industries by enforcing antitrust laws. *b)* bans the sale of products that expose consumers to unreasonable risks. *c)* sets safety and effectiveness standards for over-the-counter drugs. *d)* regulates the safety and labeling of cosmetics.
*a)* promotes fair competition in industries by enforcing antitrust laws
When a manager acts toward a customer in a favorable way in the hope that the customer will return for future purchases, this is an example of: *a)* reciprocity. *b)* utilitarianism. *c)* realism. *d)* manipulation.
*a)* reciprocity
When the Department of Agriculture sets standards for and inspects foods entering the production process, it is: *a)* regulating socially desirable goods and services. *b)* resolving national and global problems. *c)* regulating to protect special interests. *d)* regulating socially desirable production methods.
*a)* regulating socially desirable goods and services
The idea that a bank cashier should not be fired for stealing $100 if a bank officer is allowed to keep his job after embezzling $1,000 is consistent with the ethical principle of: *a)* retributive justice. *b)* restorative justice. *c)* distributive justice. *d)* compensatory justice
*a)* retributive justice
The Consumer Product Safety Commission (CPSC) has the power to: *a)* set mandatory safety standards for more than 15,000 consumer products. *b)* minimize but not ban the sale of products that expose consumers to unreasonable risks. *c)* prevent false and deceptive advertising. *d)* protect the public from fraudulent and deceptive sales practices.
*a)* set mandatory safety standards for more than 15,000 consumer products
The _____ model is a form of industry-labor-government cooperation in which government strongly regulates the labor market to secure expansive rights and high benefits for workers. *a)* social welfare *b)* community firm *c)* macroeconomic *d)* surplus labor
*a)* social welfare
_____ is a classless social system in which property is collectively owned and income from labor is equally and indiscriminately divided among members. *a)* Socialism *b)* Capitalism *c)* Anarchism *d)* Fascism
*a)* socialism
A tax or duty charged by a government on goods moved across a border is known as a: *a)* tariff. *b)* subsidy. *c)* quota. *d)* trade barrier.
*a)* tariff
Which 2010 Act, passed to control risk in financial markets, is the biggest surge in economic regulation since the New Deal? *a)* The Dodd-Frank Act *b)* The Expedited Funds Availability Act *c)* The Tax Extenders and Alternative Minimum Tax Relief Act *d)* The Congressional Accountability Act
*a)* the Dodd-Frank Act
The large cohort of workers born between 1946 and 1964 are known as: *a)* the baby-boom generation. *b)* Gen X. *c)* Gen Y. *d)* the baby-bust generation.
*a)* the baby-boom generation
According to Karl Marx and Friedrich Engels: *a)* the basis for socialism was an inevitable process of class struggle underlying and explaining the history of human society. *b)* in the free market, central planning is more burdensome than naturally occurring problems in the market. *c)* under socialism the working class is exploited by the owners of capital, who pay low wages for dehumanizing work. *d)* free markets harnessed greed for the public good and protected consumers from abuse.
*a)* the basis for socialism was an inevitable process of class struggle underlying and explaining the history of human society.
In considering whether or not to do a certain action that involves ethical reasoning, a manager asks himself: "If I act in this way, do I want to read about my actions in 'The New York Times' tomorrow morning?" In this scenario, he is applying: *a)* the disclosure rule. *b)* the universalizability test. *c)* the ends-means ethic. *d)* the reversibility test.
*a)* the disclosure rule
All of the following statements are true of the requirements of proxy statements EXCEPT: *a)* the proposal cannot exceed 1,000 words. *b)* a shareholder may submit only one proposal for a particular shareholder meeting. *c)* stockholders must own $2,000 or more shares for at least one year. *d)* a proposal should receive no less than 3 percent of vote to be presented at the next shareholder meeting.
*a)* the proposal cannot exceed 1,000 words.
All of the following are frequently used types of stock awards EXCEPT: *a)* time shares *b)* performance shares *c)* stock options *d)* restricted stock
*a)* time shares
All of the following are examples of social performance indicators in the triple bottom line EXCEPT: *a)* total amount of employee wages and benefits. *b)* total hours of employee training. *c)* total number of incidents of discrimination and actions taken. *d)* total number of substantiated complaints regarding breaches of customer privacy.
*a)* total amount of employee wages and benefits.
The standard that uses economic, environmental, and social performance indicators that are based on GRI standards is called the: *a)* triple bottom line. *b)* social audit. *c)* business model. *d)* value chain.
*a)* triple bottom line
Jeremy Bentham developed the idea of _____ as a guide to ethics. *a)* utilitarianism *b)* deontology *c)* virtue ethics *d)* ethical egoism
*a)* utilitarianism
A _____ is the sequence of coordinated actions that add benefit to a product or service. *a)* value chain *b)* value stream *c)* value grid *d)* value network
*a)* value chain
When a company indulges in charity, it is said to be undertaking a: *a)* voluntary action. *b)* market action. *c)* mandated action. *d)* private action.
*a)* voluntary action
According to Plato: *a)* when people engaged in trade they inevitably succumbed to the temptation of excess. *b)* happiness is the ultimate goal of life. *c)* the amount of happiness a person gained in life was equal to the amount of virtue accumulated in the soul. *d)* profit motive was to be supported.
*a)* when people engaged in trade they inevitably succumbed to the temptation of excess.
The four cardinal virtues identified by Plato are justice, temperance, courage, and: *a)* wisdom. *b)* respect. *c)* honor. *d)* benevolence.
*a)* wisdom
What laws seek to influence governments and agencies to purchase U.S.-made goods and services rather than foreign-made goods and services? *a)* Blue laws *b)* "Buy American" laws *c)* The laws of comparative advantage *d)* Soft laws
*b)* "Buy American" laws
According to the Sarbanes-Oxley Act of 2002, criminal violations can lead to fines of up to: *a)* $100,000. *b)* $50 million and lengthy prison terms. *c)* $5 million and a minimum of 20 years in prison. *d)* $10,000 and a maximum of one year of imprisonment.
*b)* $50 million and lengthy prison terms
What is a "significant regulatory action"? *a)* A rule to control risk in financial markets. *b)* A rule with an annual effect on the economy of $100 million or more. *c)* A rule that gives the federal government wide power to regulate business. *d)* A rule to bring "Relief, Recovery, and Reform."
*b)* A rule with an annual effect on the economy of $100 million or more
Which of the following is true of order acknowledgements? *a)* The sole purpose of writing acknowledgements is to help build goodwill. *b)* Acknowledgements let people who order goods know the status of their orders. *c)* Acknowledgements are typically written using the indirect plan of organizing information. *d)* You must use a highly formal style when writing acknowledgements. *e)* You should not use the you-viewpoint when writing acknowledgements.
*b)* Acknowledgements let people who order goods know the status of their orders.
The _____ Act requires each agency to set up an adjudication process leading to trial before an administrative law judge. *a)* Congressional Accountability *b)* Administrative Procedure *c)* Congressional Review *d)* Apportionment
*b)* Administrative Procedure
Which of the following should you do when responding favorably to questions in a routine inquiry message? *a)* Answer each question in a separate message to ensure clarity. *b)* Answer the most important question first. *c)* Answer all the questions in a single paragraph. *d)* Conclude the message with the answer to the reader's primary question. *e)* Request the sender limit the number of questions.
*b)* Answer the most important question first.
Which of the following guidelines should be followed when answering two or more questions in a favorable response message? *a)* Respond to the most important query as quickly as possible, then follow up with a second message addressing the less important questions. *b)* Arrange the answers in the same order as the corresponding questions in the inquiry message. *c)* Avoid telling the reader that you are complying with his or her request, as it sounds redundant. *d)* Answer the questions in order of simplest to most complex. *e)* Avoid numbering your answers, unless the questions they are responding to were also numbered.
*b)* Arrange the answers in the same order as the corresponding questions in the inquiry message.
Under which of the following corporate cultural values do symbolic displays such as picture walls of former executives come under? *a)* Espoused values *b)* Artifacts *c)* Enacted values *d)* Tacit underlying values
*b)* Artifacts
Which level of corporate culture includes both physical expressions of culture and visible behaviors? *a)* Espoused values *b)* Artifacts *c)* Assumptive values *d)* Tacit underlying values
*b)* Artifacts
Which of these concluding sentences is most likely to build goodwill in a routine inquiry message? *a)* Your early response would be most sincerely appreciated. *b)* As we must begin production on July 15, I'd appreciate your response by that date. *c)* Thank you in advance for your help. We expect a reply as soon as possible. *d)* Please respond to our queries at your convenience. *e)* Thank you for your cooperation in assisting us with our queries.
*b)* As we must begin production on July 15, I'd appreciate your response by that date.
_____ occurs when a lawmaker or official asks for, is offered, or receives something valuable in return for being influenced to perform an official act. *a)* Lobbying *b)* Bribery *c)* Illegal gratuity *d)* Rigging
*b)* Bribery
Which of the following is an economic system in which private individuals and corporations own the means of production and, motivated by the desire for profit; compete in free markets under conditions of limited restraint by government? *a)* Utilitarianism *b)* Capitalism *c)* Socialism *d)* Fascism
*b)* Capitalism
Which of the following is NOT a part of the six environmental forces that create turbulence in the workplace? *a)* Demographic change *b)* Climate change *c)* Structural change *d)* Competitive pressures
*b)* Climate change
Which of the following is NOT an ideology that facilitated the Industrial Revolution? *a)* Constitutional democracy *b)* Communism *c)* Darwinism *d)* Social Darwinism
*b)* Communism
Superfund is the common name for the: *a)* Medical Waste Tracking Act. *b)* Comprehensive Environmental Response, Compensation, and Liability Act. *c)* Resource Conservation and Recovery Act. *d)* Toxic Substances Control Act.
*b)* Comprehensive Environmental Response, Compensation, and Liability Act
_____ is a polling process in which people are asked to put a dollar amount on some aspect of nature. *a)* Risk assessment *b)* Contingent valuation *c)* Cost-benefit analysis *d)* Exposure assessment
*b)* Contingent valuation
At this level, the workings of corporate power are unplanned, unpredictable, indirect, and irregular, but they are constant and far more significant. *a)* Exterior *b)* Deep *c)* Surface *d)* Apparent
*b)* Deep
_____ refers to a situation that arises when an individual sits on the board of directors of two or more corporations. *a)* Collaborative leadership *b)* Director interlock *c)* Office sharing *d)* Directorate formation
*b)* Director interlock
Which sphere of justice requires that the benefits and burdens of company life be distributed using impartial criteria? *a)* The proportionality ethic *b)* Distributive justice *c)* Restorative justice *d)* Retributive justice
*b)* Distributive justice
_____ is based on trade and investment flows and restrictions; measures include trade as a percent of GDP, inflows of foreign direct investment as a percent of GDP, tariff rates, and import barriers. *a)* Social globalization *b)* Economic globalization *c)* Democratic globalization *d)* Alternative globalization
*b)* Economic globalization
Which of the following is NOT a general policy of the OECD Guidelines for Multinational Enterprises? *a)* Enterprises should encourage human capital formation, in particular by creating employment opportunities and facilitating training opportunities for employees. *b)* Enterprises should take disciplinary action against employees who make bona fide reports to management. *c)* Enterprises should refrain from seeking or accepting exemptions not contemplated in the statutory or regulatory framework related to environmental, taxation, or other issues. *d)* Enterprises should respect the human rights of those affected by their activities consistent with the host government's international obligations and commitments.
*b)* Enterprises should take disciplinary action against employees who make bona fide reports to management.
Title VII of the Civil Rights Act of 1964 created the ____, an independent regulatory commission, to enforce its provision. *a)* Bureau of Labor Statistics *b)* Equal Employment Opportunity Commission *c)* National Labor Relations Board *d)* Bureau of International Labor Affairs
*b)* Equal Employment Opportunity Commission
Which of the following schools holds that in terms of biological and psychological needs, human nature is the same everywhere? *a)* Reciprocity *b)* Ethical universalism *c)* Amorality *d)* Ethical relativism
*b)* Ethical universalism
_____ advocacy suggests the election or defeat of a candidate using specific words like "vote for," "defeat," or "support." *a)* Ideological *b)* Express *c)* Bureaucratic *d)* Issue
*b)* Express
What is measured as the dollar value of funds invested by a parent corporation for starting, acquiring, or expanding an enterprise in a foreign nation. *a)*Portfolio investment *b)* FDI *c)* Debt security *d)* TNI
*b)* FDI
After publication in the _____ final regulations are codified in the: *a)* Code of Federal Regulations; Official Congressional Directory. *b)* Federal Register; Code of Federal Regulations. *c)* Code of Federal Regulations; Federal Register. *d)* Federal Register; United States Reports.
*b)* Federal Register; Code of Federal Regulations
The _____ Amendment of the U.S. constitution prohibited race discrimination in voting. *a)* Fourteenth *b)* Fifteenth *c)* Sixteenth *d)* Thirteenth
*b)* Fifteenth
The _____ protects the right of business to organize and press its agenda on the government. *a)* Sixteenth Amendment *b)* First Amendment *c)* Sixth Amendment *d)* Eleventh Amendment
*b)* First Amendment
Which of the following is a criticism of cost-benefit analysis? *a)* It disciplines thinking and always dictates choices. *b)* Fixing precise values of costs and benefits is difficult and controversial. *c)* They compromise ecosystems deserving conditional, not absolute, protection. *d)* Benefits and costs of a program often fall on the same party.
*b)* Fixing precise values of costs and benefits is difficult and controversial.
The _____ is authorized to inspect meat, poultry, and eggs. *a)* Animal and Plant Health Inspection Service *b)* Food Safety and Inspection Service *c)* Food and Drug Administration *d)* Center for Disease Control and Prevention
*b)* Food Safety and Inspection Service
What has been the official policy of the United States since the end of World War II. *a)* Global trade compliance *b)* Free trade *c)* Globalization *d)* Sovereignty
*b)* Free trade
This is a treaty in which two or more nations agree to reduce or eliminate barriers, opening their borders to freer mutual trade. *a)* Protectionism *b)* Free trade agreement *c)* Customs union *d)* Global trade compliance
*b)* Free trade agreement
The theory that the sole responsibility of a corporation is to optimize profits while obeying the law is known as: *a)* Monetarism. *b)* Friedmanism. *c)* Ordoliberalism. *d)* Keynesianism.
*b)* Friedmanism
Which of the following is an example of a primary stakeholder in a corporation? *a)* Media *b)* Government *c)* Trade associations *d)* Political parties
*b)* Government
Which of the following is a relevant categorization of stakeholders according to their power to affect a firm's business? *a)* Neutral, supportive, or confrontational *b)* High, medium, or low influence *c)* Neutral, investors, or environmentalists *d)* Feminists, investors, or environmentalists
*b)* High, medium, or low influence
The standard used by the International Organization for Standardization to determine the quality of a product or service is the: *a)* ISO 5000. *b)* ISO 9000. *c)* ISO 14000. *d)* ISO 2600.
*b)* ISO 9000
Which of the following statements about back translating is true? *a)* It is the only way to translate idioms and colloquialisms accurately. *b)* If the translations are good, the second translation will match the original message. *c)* It involves one translator translating a message into a new language. The translated message is then reviewed by a second translator for accuracy. *d)* It requires three translators. *e)* It only works with Latinate languages.
*b)* If the translations are good, the second translation will match the original message.
Identify the correct statement about shareholder influence. *a)* Shareholders often exercise their voting power to replace management. *b)* In corporate elections, stockholders cannot vote for another candidate. *c)* If stockholders submit nominees to board nominating committees, the directors have to accept them. *d)* Most shareholders do not follow management's voting recommendations.
*b)* In corporate elections, stockholders cannot vote for another candidate.
Which of the following is an assumption of the market capitalism model? *a)* Government intervention in economic life is significant. *b)* Individuals can own private property and freely risk investments. *c)* Consumers have limited knowledge about products and prices. *d)* Limited information prevents individuals from making completely rational decisions.
*b)* Individuals can own private property and freely risk investments.
The first independent regulatory commission that was set up by the Congress to regulate the railroads was the: *a)* Public Utilities Commission. *b)* Interstate Commerce Commission. *c)* Public Service Commission. *d)* Railroad Revitalization Commission.
*b)* Interstate Commerce Commission
Which of the following statements about Executive Order 11246 is NOT true? *a)* It is the origin of most affirmative action in corporations. *b)* It is a legal defense a company can use to fight a disparate impact charge. *c)* It is enforced by the Office of Federal Contract Compliance Programs. *d)* It requires all companies with federal contracts of $50,000 or more and 50 or more employees, to have a written affirmative action plan.
*b)* It is a legal defense a company can use to fight a disparate impact charge.
Which of the following statements about portfolio investments is true? *a)* It is measured as the dollar value of funds invested by a parent corporation. *b)* It is limited and speculative. *c)* It confers a degree of control over the company. *d)* It is a long-term investment that cannot be sold anytime.
*b)* It is limited and speculative.
The _____ institutionalized the idea that whites were superior to blacks by creating segregated schools, restrooms, and water fountains. *a)* Northern Black codes *b)* Jim Crow laws *c)* Nuremberg Laws *d)* Blue laws
*b)* Jim Crow Laws
_____ actions are initiatives required either by government regulation or civil regulation. *a)* Voluntary *b)* Mandated *c)* Market *d)* Profit
*b)* Mandated
_____ regulation gives polluters financial motives to control pollution while also giving them flexibility in how reductions are achieved. *a)* Command-and-control *b)* Market incentive *c)* Cap-and-trade *d)* Voluntary
*b)* Market incentive
Which of the following statements about unions that arose in the United States in the latter half of the 19th century is true? *a)* Almost all early unions were radical and avowedly socialist. *b)* Most early unions were tied to single companies or locations. *c)* The largest union, the Knights of Labor, disdained Marxism and elected to work with employers for higher wages and better working conditions. *d)* The first big national union, the American Federation of Labor, called for overthrow of the capitalists rather than for reforms to protect labor.
*b)* Most early unions were tied to single companies or locations.
Which of the following is a less preferred name, compared to the others, for a multinational corporation? *a)* Global *b)* Multidomestic *c)* Transnational *d)* International
*b)* Multidomestic
Which of the following requires that affirmative action payment be made to make up for past wrongs? *a)* Utilitarian considerations *b)* Norms of compensatory justice *c)* Norms of distributive justice *d)* Ethical theories of rights
*b)* Norms of compensatory justice
To administer the Troubled Asset Relief Program, Congress created a new agency in the Treasury Department known as the: *a)* Office of the Comptroller of the Currency. *b)* Office of Financial Stability. *c)* Office of Financial Institutions. *d)* Office of Government Financial Policy.
*b)* Office of Financial Stability
_____ is formed in the air by chemical reactions between nitrogen dioxide and volatile organic compounds. *a)* Methane *b)* Ozone *c)* Benzene *d)* Ammonia
*b)* Ozone
Which of the following, released by industrial activity and combustion, is composed of small fragments suspended in the air? *a)* Methane *b)* Particulate matter *c)* Volatile organic compounds *d)* Toluene
*b)* Particulate matter
What did the third wave of federal workplace regulation deal with? *a)* Union rights *b)* Polygraph and drug test rules *c)* Pension rights *d)* Civil rights
*b)* Polygraph and drug test rules
Which of the following statements about regulations is false? *a)* Regulation varies widely around the world. *b)* Poor countries regulate business in a consistent manner. *c)* Poor countries regulate business the most. *d)* Heavier regulation brings bad outcomes.
*b)* Poor countries regulate business in a consistent manner.
This is a grant of stock with restrictions on transaction that are removed when a specified condition is met. *a)* Performance shares *b)* Restricted stock *c)* Stock options *d)* Perquisites
*b)* Restricted stock
Which of the following is an internal business environment? *a)* Culture *b)* Shareholders *c)* Economy *d)* Government
*b)* Shareholders
In the context of order acknowledgements, which of the following illustrates the most positive way of responding to a vague order? *a)* If you had specified the exact model, we would have shipped your order immediately. *b)* So we can ship your order, please let us know which of the two bookcase models you would like. *c)* The expected delivery date was not mentioned in your order. *d)* You failed to mention the number of bookcases that you need. *e)* You did not specify the details of the requested products.
*b)* So we can ship your order, please let us know which of the two bookcase models you would like.
_____ are the ultimate arbiters of legitimate behavior and can act forcefully to blunt the exercise of corporate power that harms the public. *a)* Governments *b)* Social interest groups *c)* Markets *d)* Economic stakeholders
*b)* Social interest groups
According to which of the following theories does liability exist, even in the absence of negligence, when an activity or product is inherently dangerous? *a)* Absolute liability *b)* Strict liability *c)* Contributory liability *d)* Enterprise liability
*b)* Strict liability
_____ is the documentation and disclosure of how closely corporate operations conform to the goal of sustainable development. *a)* Assurance *b)* Sustainable development *c)* Triple bottom line *d)* Sustainability reporting
*b)* Sustainability reporting
Which of the following is used as a statistical test to measure disparate impact? *a)* The one-eighth rule *b)* The 80 percent rule *c)* The 20 percent rule *d)* The one-half rule
*b)* The 80 percent rule
Which of the following is a carbon offset program set up under the Kyoto Protocol that allows developed countries to meet greenhouse gas reproduction pledges by paying for carbon offset projects in developing nations? *a)* The Emissions Trading Mechanism *b)* The Clean Development Mechanism *c)* The environmental management system *d)* ISO 14001
*b)* The Clean Development Mechanism
Which ethical principle asserts that right actions are found in the area between extreme behaviors—labeled as excess on the one hand and deficiency on the other? *a)* The principle of equal freedom *b)* The Doctrine of the Mean *c)* The categorical imperative *d)* The theory of justice
*b)* The Doctrine of the Mean
Which Act was passed by Congress in 2008 to restore financial stability? *a)* The Expedited Funds Availability Act *b)* The Emergency Economic Stabilization Act *c)* The Congressional Accountability Act *d)* The Tax Extenders and Alternative Minimum Tax Relief Act
*b)* The Emergency Economic Stabilization Act
Which Act, did the Progressive reformers pass in 1907, making it a crime for banks and corporations to directly contribute to candidates in federal elections? *a)* The Bipartisan Campaign Reform Act *b)* The Hatch Act *c)* The Tillman Act *d)* The Federal Election Campaign Act
*b)* The Tillman Act
Which of the following ethical principles is based on the idea that a manager can do whatever he wants as long as he does not break the law? *a)* The principle of equal freedom *b)* The conventionalist ethic *c)* The Doctrine of the Mean *d)* The disclosure rule
*b)* The conventionalist ethic
Which of the following was an observation made by Adam Smith? *a)* Corporations are insulated from pressures holding them responsible. *b)* The desire to trade for mutual advantage lies deep in human instinct. *c)* Common people who feel disadvantaged in some way seek to take power from the ruling elite. *d)* To maintain broad public support, business must adjust to social, political, and economic forces.
*b)* The desire to trade for mutual advantage lies deep in human instinct.
Which of the following is true regarding the demographic changes noticed in American society? *a)* The population is growing at a faster rate now. *b)* The fertility rate of women is just below the replacement fertility rate. *c)* The labor force is becoming homogeneous in gender, race, and ethnicity. *d)* The workforce is becoming younger.
*b)* The fertility rate of women is just below the replacement fertility rate.
Which of the following is a rare variant of the progressive model wherein a founder with noble impulses left a culture inclined to corporate responsibility? *a)* The local business *b)* The large corporation *c)* The traditional business *d)* The small company
*b)* The large corporation
Which of the following statements about a routine inquiry that seeks only one piece of information is true? *a)* Such a message makes it mandatory for the writer to use the indirect approach. *b)* The message can be move to a goodwill ending immediately after you ask your question. *c)* The length of the message must be kept to a minimum by excluding explanatory information. *d)* Such a message restricts the sender from adding any extra explanation related to the query. *e)* The message requires that the writer use the we-viewpoint in addressing the reader.
*b)* The message can be move to a goodwill ending immediately after you ask your question.
Which of the following guidelines should be followed when writing an effective message carrying good news? *a)* The message should use the we-viewpoint instead of the you-viewpoint. *b)* The objective of the message should be made clear within the first paragraph. *c)* The message should be written using the indirect order of organizing information. *d)* The objective or key point of the message should be presented at the end of the message. *e)* All the details of the message should be covered in the first paragraph.
*b)* The objective of the message should be made clear within the first paragraph.
Which of the following is true regarding the structural changes seen in American society? *a)* The agricultural sector employs most number of Americans. *b)* The percentage of workers employed in the goods-producing sector is declining. *c)* There is a drastic decline in the number of employees in the service sector. *d)* The American job landscape is shaped by four long-term structural trends.
*b)* The percentage of workers employed in the goods-producing sector is declining.
The New Deal was a political sea change born out of the Great Depression. Which of the following is a lasting legacy of the era? *a)* The government should spend more on infrastructure programs that promoted business rather than social programs. *b)* The philosophy that government should be used to correct the flaws of capitalism and control the economy. *c)* The view that government should lay the groundwork for a large, powerful, and activist worker's state. *d)* The government should not interfere with corporations.
*b)* The philosophy that government should be used to correct the flaws of capitalism and control the economy.
The modern impetus for this theory comes from the sociologist C. Wright Mills. *a)* Pluralist theory *b)* Theory of elite dominance *c)* State autonomy theory *d)* Positive political theory
*b)* Theory of elite dominance
Which of the following is NOT one of the three most common reasons for corporations to make foreign direct investments? *a)* They seek access to new markets. *b)* They seek to introduce new management skills and technologies to foreign markets. *c)* Companies in nations with small domestic markets enter foreign markets to grow. *d)* Some companies create efficiencies and lower their costs by moving production across borders.
*b)* They seek to introduce new management skills and technologies to foreign markets.
Which of the following is a major duty that state incorporation laws impose on boards of directors? *a)* To exercise due diligence in supervising shareholders. *b)* To represent the interests of stockholders by conducting a profitable business that enhances share value. *c)* To make day-to-day management decisions. *d)* To put their own self-interests ahead of the shareholders.
*b)* To represent the interests of stockholders by conducting a profitable business that enhances share value.
According to Aristotle, which of the following is true? *a)* Courage, temperance, justice, and wisdom are "external goods". *b)* Trade was a lower form of acquisition because it was activity that did not contribute to inner virtue. *c)* "External goods" were superior to "goods of the soul". *d)* Profit motive was to be supported.
*b)* Trade was a lower form of acquisition because it was activity that did not contribute to inner virtue.
The _____ movement was a turn-of-the-twentieth-century political movement that associated moderate social reform with betterment. *a)* socialistic *b)* progressive *c)* libertarian *d)* populist
*b)* progressive
Which of the following is true regarding problems faced by cross-border corporate power? *a)* International law strongly addresses the social impacts of business. *b)* Transnational corporations are subject to uneven regulation in developing nations. *c)* Strict regulations ensure that corporations are made directly accountable for social harms. *d)* International law has strongly codified norms protecting commercial rights, human rights, and other social resources.
*b)* Transnational corporations are subject to uneven regulation in developing nations.
Which of the following statements about colloquialisms is true? *a)* It is impossible to replace colloquialisms with plain language. *b)* Unfamiliar colloquialisms can cause problems even for native English speakers. *c)* In the United States, colloquial expressions are rarely used. *d)* Colloquialisms are generally easy for international communicators to understand. *e)* Colloquialisms are almost never defined on ESL websites.
*b)* Unfamiliar colloquialisms can cause problems even for native English speakers.
Which of the following is a characteristic of a democracy? *a)* Single party rule *b)* Universal suffrage *c)* Enforced political authority *d)* Country is ruled by famous citizens
*b)* Universal suffrage
_____ refers to a socially engineered model of alternative community that is designed to correct faults in the world so its members can find happiness. *a)* Ideology *b)* Utopia *c)* Materialism *d)* Euphoria
*b)* Utopia
Which of the following is true regarding bribery? *a)* Ordinary contributions given to curry general favor are prosecuted. *b)* Whether something is a bribe depends heavily on context and situation. *c)* When lobbyists entertain legislators at receptions, they are engaging in criminal bribery. *d)* A campaign contribution that does not involve an agreed upon exchange is still considered a bribe.
*b)* Whether something is a bribe depends heavily on context and situation.
Karpos is looking for a company to supply his business with wire in various gauges. When sending inquiries to prospective suppliers, which of the following would be the most effective sentence to include in his opening? *a)* It would be nice if you could tell me about your wire products. *b)* Will you please answer the following questions about your wire products? *c)* As our previous supplier went out of business, we need information regarding your wire products. *d)* We would like to know about your wire products. *e)* Your wire products appear to be just what we need.
*b)* Will you please answer the following questions about your wire products?
What method does the EPA use to calculate the value of a statistical life? *a)* Willingness-to-accept approach *b)* Willingness-to-pay approach *c)* Social welfare approach *d)* Social surplus approach
*b)* Willingness-to-pay approach
A local electric company that, without government regulation, restricts output and raises price without fear of competition is a typical example of: *a)* an oligopoly. *b)* a natural monopoly. *c)* pure competition. *d)* monopolistic competition.
*b)* a natural monopoly
According to Karl Marx: *a)* business power is exercised in a society in which other institutions also have great power. *b)* a ruling capitalist class exploited workers and dominated other classes. *c)* business power is counterbalanced, restricted, controlled, and subject to defeat. *d)* largely through market forces, business power could be disciplined to benefit society.
*b)* a ruling capitalist class exploited workers and dominated other classes
A set of economic policies prescribed to correct flaws in a national economy is known as: *a)* the Washington Consensus. *b)* a structural adjustment program. *c)* autarky. *d)* liberalization.
*b)* a structural adjustment program
Labor flexibility is the: *a)* view that business is analogous to a game and special, lower ethics are permissible. *b)* ability to make quick and smooth shifts of workers into and out of jobs as business conditions change. *c)* transferring of work from within a company to an outside supplier to cut labor costs. *d)* agreement by which an employee exchanges his/her labor in return for specific pay and working conditions.
*b)* ability to make quick and smooth shifts of workers into and out of jobs as business conditions change
A support network formed by employees who personify an attribute associated with discrimination, stereotyping, or social isolation is known as a(n) _____ group. *a)* personal union *b)* affinity *c)* hierarchical *d)* citizen
*b)* affinity
The idea that business should be conducted without considering ethical standards or societal ideals is known as the theory of: *a)* moral responsibility. *b)* amorality. *c)* reciprocity. *d)* ethical universalism.
*b)* amorality
The two basic methods of proving a substance dangerous are: *a)* animal testing and natural experiments. *b)* animal testing and epidemiological studies. *c)* computer models and epidemiological studies. *d)* computer models and natural experiments.
*b)* animal testing and epidemiological studies
A policy of national self-sufficiency and economic independence is called: *a)* an embargo. *b)* autarky. *c)* free trade. *d)* a tariff.
*b)* autarky
Setting the exercise price of stock options at the price on a date before the date they were granted is: *a)* day trading. *b)* backdating. *c)* earmarking. *d)* overnight rating.
*b)* backdating
During the 19th century, the Anti-Saloon League: *a)* advocated the use of alcohol. *b)* became a strong national adversary of business. *c)* was destined to be the strongest single element opposing industry over the following century. *d)* accepted money for granting favors to corporations.
*b)* became a strong national adversary of business
According to conservative economists: *a)* businesses are reservoirs of skill and energy for improving civic life. *b)* business is most responsible when it makes money efficiently. *c)* business is most accountable when it applies its energy on social projects. *d)* managers have an ethical duty to
*b)* business is most responsible when it makes money efficiently
Emissions trading programs are also known as: *a)* command-and-control systems. *b)* cap and trade. *c)* carbon tax regimes. *d)* carbon fees with rebates.
*b)* cap and trade
In background lobbying, lobbyists: *a)* try to raise awareness of a particular cause at the local level. *b)* carry out activities that are designed to build friendly relations with lawmakers, officials, and staffs. *c)* try to generate public support for the position of a company, industry, or any interest. *d)* carry out direct interaction with government officials or staffs through meetings, phone calls or e-mails.
*b)* carry out activities that are designed to build friendly relations with lawmakers, officials, and staffs.
According to the _____ view of economics, a business is socially responsible if it maximizes profits while operating within the law. *a)* neoclassical *b)* classical *c)* contemporary *d)* Keynesian
*b)* classical
The example of _____ is perhaps the strongest influence on integrity in a corporate culture. *a)* organization culture *b)* company leaders *c)* employee relations strategies *d)* subordinate behaviors
*b)* company leaders
The idea that a retail shop owner should pay damages to a customer who was hurt by a salesperson is consistent with the ethical principle of: *a)* restorative justice. *b)* compensatory justice. *c)* retributive justice. *d)* distributive justice.
*b)* compensatory justice
According to new Progressives: *a)* corporations have insufficient power. *b)* corporations have inordinate legal rights. *c)* corporations are inherently moral. *d)* free markets force the corporations to serve the public interest.
*b)* corporations have inordinate legal rights
A method of ethical reasoning in which insight comes from answering a list of questions is known as the: *a)* deontological approach. *b)* critical questions approach. *c)* general questions approach. *d)* consequentialist approach.
*b)* critical questions approach
The ability of businesses to influence the values and habits of people in a society is called: *a)* economic power. *b)* cultural power. *c)* technological power. *d)* legal power.
*b)* cultural power
The Resource Conservation and Recovery Act: *a)* is an easy statute to administer and with which to comply. *b)* demands that regulators keep track of all hazardous waste produced anywhere in the country. *c)* allows balancing costs against benefits. *d)* ensures that the thousands of abandoned toxic waste sites around the United States are cleaned up.
*b)* demands that regulators keep track of all hazardous waste produced anywhere in the country
An agreement by which an employee exchanges his/her labor in return for specific pay and working conditions is called a(n): *a)* yellow-dog contract. *b)* employment contract. *c)* compromise agreement. *d)* nondisclosure agreement.
*b)* employment contract
Under the doctrine of ____, an employee must act "solely and entirely" for the employer's benefit in all work-related matters or be liable for termination and damages. *a)* liberty of contract *b)* employment-at-will *c)* good faith *d)* strict liability
*b)* employment-at-will
A statistical survey of human mortality and morbidity in a sample population is called a(n) _____ study. *a)* demographic *b)* epidemiological *c)* cosmology *d)* community
*b)* epidemiological
The idea that there are no common ethical values but that each culture determines these values is a basic tenet in: *a)* ethical universalism. *b)* ethical relativism. *c)* reciprocity. *d)* master morality.
*b)* ethical relativism
Cultures that exhibit a high power distance *a)* leave employees to make their own decisions on a case-by-case basis. *b)* expect employees to do as their superiors direct. *c)* make decisions by consensus. *d)* encourage people to voice their opinions, no matter what role they inhabit. *e)* tend to spread out authority so that no one person is too powerful.
*b)* expect employees to do as their superiors direct.
A(n) _____ cost is a production cost not paid by a firm or its customers, but by members of society. *a)* internal *b)* external *c)* private *d)* extraterritorial
*b)* external
Aristotle defined material possessions and money as: *a)* determinants of adhocracy. *b)* external goods. *c)* goods of the soul. *d)* determinants of socialism.
*b)* external goods
The application of one nation's laws within the borders of another nation is known as: *a)* personal jurisdiction. *b)* extraterritoriality. *c)* neutrality. *d)* imperialism.
*b)* extraterritoriality
This is the legal duty of a representative to manage property in the interest of the owner. *a)* Contributory liability *b)* Fiduciary responsibility *c)* Principal accountability *d)* Ownership interest
*b)* fiduciary responsibility
The technique of generating public support for the position of a company, industry, or any interest is known as: *a)* background lobbying. *b)* grassroots lobbying. *c)* channel lobbying. *d)* contact lobbying.
*b)* grassroots lobbying
Chemical emissions that pose a health risk of serious illness such as cancer with even small inhalation exposures are known as: *a)* criteria pollutants. *b)* hazardous air pollutants. *c)* volatile organic compounds. *d)* condensibles.
*b)* hazardous air pollutants
According to the theory of deep ecology: *a)* people feel depressed when their home environment changes. *b)* human interference with nature is now excessive and must be drastically reduced. *c)* human beings have duties not only towards fellow humans but also towards nature. *d)* rural life is superior to city life.
*b)* human interference with nature is now excessive and must be drastically reduced
The Energy Star program: *a)* advances control strategies that regulate greenhouse gases. *b)* identifies household and commercial products with high energy efficiency. *c)* reduces emissions by purchasing alternative energy and buying emissions offsets. *d)* eliminates waste and warming gas emissions.
*b)* identifies household and commercial products with high energy efficiency
The law of _____ addresses the issue of private wrongs committed by one person against another person or his/her property. *a)* unjust enrichment *b)* torts *c)* contracts *d)* evidence
*b)* torts
A non-prosecution agreement is one: *a)* whereby the government agrees to dismiss a filed criminal charge. *b)* in which U.S. attorneys decline prosecution of a corporation that has taken appropriate steps to report a crime, cooperate, and compensate victims. *c)* between a prosecutor and a corporation to delay prosecution while the company takes remedial actions. *d)* that typically involves the filing of an accusatory instrument whose arraignment is suspended for a specified time period, usually one to three years.
*b)* in which U.S. attorneys decline prosecution of a corporation that has taken appropriate steps to report a crime, cooperate, and compensate victims.
These are outside directors who do not have business dealings with a corporation that would impair their impartiality. *a)* Intermediate directors *b)* Independent directors *c)* Internal directors *d)* International directors
*b)* independent directors
According to the Committee for Economic Development, the _____ circle of social responsibility aims at efficient execution of economic functions so that the society can achieve economic growth. *a)* intermediate *b)* inner *c)* external *d)* outer
*b)* inner
Directors who are employees of the company are called: *a)* independent directors. *b)* inside directors. *c)* lead directors. *d)* outside directors.
*b)* inside directors
When employees at Dow Chemical Company face an ethical decision they are told to ask: "What feels right or wrong about the situation or action?" This is an application of the: *a)* Golden Mean. *b)* intuition ethic. *c)* equal freedom principle. *d)* theory of justice.
*b)* intuition ethic
A proxy card: *a)* is also called a proxy statement. *b)* is a form stockholders mark giving management the right to vote their shares as indicated. *c)* is an inventory of information sent to stockholders before annual votes on directors. *d)* contains rules of corporate governance to be adopted by corporations.
*b)* is a form stockholders mark giving management the right to vote their shares as indicated
According to historian Gary Cross, consumerism: *a)* is less powerful in comparison to other political ideologies, religions, or class distinctions. *b)* is the belief that goods give meaning to individuals and their roles in society. *c)* is a formal philosophy. *d)* is not a dominant ideology in America.
*b)* is the belief that goods give meaning to individuals and their roles in society
All of the following statements about the Enlightenment are true EXCEPT: *a)* it refers to a wave of new, challenging ideas based on human reason and scientific inquiry. *b)* it believed that the pursuit of material goods beyond subsistence shapes social conduct. *c)* it promoted the idea that human beings are ends in themselves. *d)* it encouraged individual choices and allowed individuals to focus on material pleasures.
*b)* it believed that the pursuit of material goods beyond subsistence shapes social conduct.
All of the following statements about a functional magnetic resonance imaging (fMRI) are true EXCEPT: *a)* it is a method used to map activity in neural networks during ethical decision making. *b)* it can pinpoint neural activity to within 1 micrometer in the brain. *c)* it measures changes in blood flow and blood oxygen content related to neural activity. *d)* it works by detecting shifts in magnetic properties of hemoglobin.
*b)* it can pinpoint neural activity to within 1 micrometer in the brain.
The German term " _____ " refers to a program in which the government subsidizes worker pay to promote employment. *a)* nenko *b)* kurzarbeit *c)* elterngeld *d)* oportunidades
*b)* kurzarbeit
The two elements that determine the CSR orientation of a firm are its business model and its: *a)* strategic alliances. *b)* leadership. *c)* investor relations. *d)* philanthrocapitalism.
*b)* leadership
A _____ price is determined by the interaction of the supply and demand without any moral dimension. *a)* just *b)* natural *c)* normal *d)* market
*b)* market
According to Thomas Donaldson and Thomas W. Dunfee, the idea that "inconsistent norms" are acceptable as long as they do not violate any hypernorms is called: *a)* amorality. *b)* moral free space. *c)* reciprocity. *d)* moral muteness.
*b)* moral free space
The theory that business actions are judged by the general ethical standards of society and not by a special set of more permissive standards is the theory of: *a)* amorality. *b)* moral unity. *c)* ethical universalism. *d)* ethical relativism.
*b)* moral unity
Almost all FDI comes from: *a)* hedge funds. *b)* sovereign wealth funds. *c)* multinational corporations. *d)* private equity.
*b)* multinational corporations
The term Chicago School is synonymous with: *a)* Keynesianism. *b)* neoliberalism. *c)* ordoliberalism. *d)* imperialism.
*b)* neoliberalism
A(n) _____ is a standard that arises over time and as agreement on it becomes widespread, is enforced by social sanction or law. *a)* ideal type *b)* norm *c)* code *d)* deviance
*b)* norm
The idea that the needs of workers should be subordinate to the needs of the organization is the basis of the: *a)* categorical imperative. *b)* organization ethic. *c)* intuition ethic. *d)* disclosure rule.
*b)* organization ethic
When a company transfers work of any kind to an outside supplier rather than pay its own employees to do it, it is called: *a)* nearshoring. *b)* outsourcing. *c)* co-sourcing. *d)* homesourcing.
*b)* outsourcing
In 2004, the United Nations added a tenth principle to the Global Compact requiring: *a)* the effective abolition of child labor. *b)* participant companies to adopt anti-corruption policies and controls. *c)* respect for the protection of internationally proclaimed human rights. *d)* the elimination of discrimination in employment and occupation.
*b)* participant companies to adopt anti-corruption policies and controls
The first national movement that sprung up with the aim to protect consumers was the: *a)* Socialist movement. *b)* Populist movement. *c)* Progressive movement. *d)* Elitist movement.
*b)* populist movement
In the Uruguay Round, developed countries concluded an Agreement on Trade-Related Aspects of Intellectual Property Rights that required participants to: *a)* protect private property owners' rights in all countries. *b)* protect property rights in products such as software, digital entertainment, and pharmaceuticals. *c)* liberalize restrictions on direct investment in a wide range of areas. *d)* limit the exportation of products by a business
*b)* protect property rights in products such as software, digital entertainment, and pharmaceuticals.
When a civil court requires payments by a company that are in excess of actual losses to injured parties, these payments are called: *a)* supplementary damages. *b)* punitive damages. *c)* general damages. *d)* compensatory damages.
*b)* punitive damages
According to ____, corporate social responsibility is an insufficient doctrine that substitutes poorly for tougher laws and regulations, allowing corporations to form a smoke screen of virtue behind which their "inviolable core" of profit seeking behavior is untouched. *a)* progressive civil societies *b)* radical Progressives *c)* conservative economists *d)* moderate Progressives
*b)* radical Progressives
In 2009, Congress gave the FDA power to: *a)* protect consumers from any practice that limits competition. *b)* regulate cigarettes and smokeless tobacco. *c)* ban tobacco products. *d)* reduce nicotine levels to zero
*b)* regulate cigarettes and smokeless tobacco .
The five tiers of internationalization in MNCs: *a)* state a common method to enter foreign market in five stages. *b)* represent alternate ways to extend business activity into foreign markets. *c)* explain a common method to enter the domestic market in stages. *d)* represent ways to expand business in the domestic market.
*b)* represent alternate ways to extend business activity into foreign markets.
When a manager is trying to decide how to treat a subordinate, he asks himself: "If I treat this person in this way, would I want to switch places with this subordinate and have my supervisor treat me in this way?" In this scenario, he is applying the: *a)* press test. *b)* reversibility test. *c)* others test. *d)* universalizability test.
*b)* reversibility test
A _____ is a decree issued by an agency to implement a law passed by Congress. *a)* veto *b)* rule *c)* revocation *d)* stratagem
*b)* rule
Scholar David Rothkopf: *a)* suggests that the new superclass lags behind the power of national elites. *b)* says that with globalization, a transnational power elite or "superclass" has emerged, operating across borders through "networks of individuals and organizations." *c)* calculates a superclass membership of about 4,000, which is 0.0001 percent of the world population, or a member for each 1 million people. *d)* says that the new superclass conspires to rule.
*b)* says that with globalization, a transnational power elite or "superclass" has emerged, operating across borders through "networks of individuals and organizations."
The _____ sector is considered to add value to manufactured goods. *a)* agrarian *b)* service *c)* environmental *d)* agricultural
*b)* service
When a company assesses its social impact on society, it has performed a(n): *a)* triple bottom line report. *b)* social audit. *c)* probability matrix. *d)* impact matrix.
*b)* social audit
Evidence suggests that the sensitivity of neural pathways is based on learning and: *a)* motivation. *b)* social experience. *c)* reinforcement. *d)* classical conditioning.
*b)* social experience
Money contributed to political candidates that is unregulated as to source or amount under federal election law is called: *a)* direct money. *b)* soft money. *c)* earnest money. *d)* hard money.
*b)* soft money
The right to buy a company's stock at a fixed price and under the conditions set by the company's board of directors is called a: *a)* stock grant. *b)* stock option. *c)* stock answer. *d)* stock bid.
*b)* stock option
The right to purchase a specified number of shares of a company's stock for a specified price at a future date is called a: *a)* stock grant. *b)* stock option. *c)* stock answer. *d)* stock bid.
*b)* stock option
When a corporation aligns its charitable strategy with its business strategy, it is known as: *a)* venture philanthropy. *b)* strategic philanthropy. *c)* philanthrocapitalism. *d)* altruism.
*b)* strategic philanthropy
Nonpolluting economic growth that improves the standard of living of people without depleting the net resources of the earth is called: *a)* green development. *b)* sustainable development. *c)* environmental planning. *d)* community building.
*b)* sustainable development
The unspoken, unwritten beliefs about the nature of the company and what behaviors bring success are called: *a)* artifacts. *b)* tacit underlying values. *c)* assumptive values. *d)* espoused values.
*b)* tacit underlying values
All of the following are examples of environmental performance indicators in the triple bottom line EXCEPT: *a)* energy use. *b)* taxes paid. *c)* changes in natural habitats caused by the company's operations. *d)* materials used by weight or volume.
*b)* taxes paid.
The belief that hard work and adherence to a set of virtues such as thrift, saving, and sobriety would bring wealth and God's approval is known as: *a)* functionalism. *b)* the Protestant ethic. *c)* the Confucian ethic. *d)* positivism.
*b)* the Protestant ethic
In the late 1800s and early 1900s, manufacturers were well protected from liability suits brought by injured customers because of two formidable obstacles in the law. What were they? *a)* The principle of actus reus and the doctrine of laches. *b)* The principle of caveat emptor and the doctrine of privity. *c)* The principle of caveat emptor and the doctrine of laches. *d)* The principle of actus reus and the doctrine of privity.
*b)* the principle of caveat emptor and the doctrine of privity
Which ethical theory postulates that people must act for the common good of the society in which they live? *a)* The disclosure rule *b)* The theory of justice *c)* The ends-means ethic *d)* The might-equals-right ethic
*b)* the theory of justice
Business groups say that the Alien Tort Claims Act: *a)* brings justice for the oppressed. *b)* victimizes the world's poor "by imposing an enormous tax on investment in developing countries at a time the world desperately needs such investment." *c)* will restrict U.S. officials from going to different corners of the globe and exploiting the local populations. *d)* gives "people in foreign countries comfort that U.S. corporations will abide by international standards."
*b)* victimizes the world's poor "by imposing an enormous tax on investment in developing countries at a time the world desperately needs such investment."
When the political will for stringent command rules is absent, _____ regulation is used. *a)* command-and-control *b)* voluntary *c)* market incentive *d)* required disclosure
*b)* voluntary
Which of the following is an example of an express warranty? *a)* A vendor sells the buyer a fruit that looks and smells good but is found to have worms when cut. *b)* A buyer asks a mechanic to provide snow tires and receives tires that are unsafe to use in the snow. *c)* A car advertisement that says this vehicle only needs an oil change every 10,000 miles. *d)* A buyer buys food for immediate consumption and relies on the food seller's judgment.
*c)* A car advertisement that says this vehicle only needs an oil change every 10,000 miles.
Which of the following statements about language is true? *a)* Words in languages other than English typically only have one meaning. *b)* Precise translation is typically an easy matter. *c)* A word in one language may have no corresponding word in another. *d)* All languages contain equivalent language components, such as verbs and conjunctions. *e)* Words like 'yes' mean the same thing in every culture.
*c)* A word in one language may have no corresponding word in another.
The basic steps of the rulemaking process were set forth in the: *a)* Congressional Review Act. *b)* Sherman Antitrust Act. *c)* Administrative Procedures Act. *d)* Emergency Economic Stabilization Act.
*c)* Administrative Procedures Act
Which of the following is a negative economic effect of FDI? *a)* Governments protect politically powerful industries with characteristic control. *b)* MNCs in manufacturing are accused of exploiting factory workers. *c)* Although competition from a new foreign affiliate can stimulate local firms, the new entry can also overwhelm them. *d)* Multinational corporations are criticized for repatriating profits to host countries, so that local residents get limited benefit from their presence.
*c)* Although competition from a new foreign affiliate can stimulate local firms, the new entry can also overwhelm them.
Which of the following is a good practice in framing questions for routine inquiry messages? *a)* Structure questions in such a way that they merely hint at a need for information. *b)* Avoid the use of bullets or numbering to order questions. *c)* Avoid simple yes or no questions unless they are required. *d)* Place all of the questions in a single, concise paragraph. *e)* Combine two or more questions to form a compound question.
*c)* Avoid simple yes or no questions unless they are required.
Identify the correct statement about deferred prosecution agreements (DPAs). *a)* A company can be prosecuted even if it has signed a DPA. *b)* The government will not prosecute if the corporation takes steps to compensate victims and prevent future wrongdoing. *c)* Because corporations are so fearful of indictment, they are drawn into DPAs. *d)* It is an agreement between a prosecutor and an individual to delay prosecution while the company takes remedial actions
*c)* Because corporations are so fearful of indictment, they are drawn into DPAs.
Which of the following is a reason for the rapid decline of socialism in the United States? *a)* Moderate reforms of the populist movement came only because the threat of growing socialist popularity put pressure on the capitalist elite. *b)* Socialist unions made a huge doctrinal error (though not a tactical mistake) when they labeled World War I an imperialist war and said that labor would refuse to shed its blood for wealthy capitalists. *c)* Because of its electoral successes the Socialist Party chose to make itself less radical, thereby breaching socialist unity by alienating firebrand IWW leaders. *d)* As time passed, the lot of most workers improved; real wages rose 37 percent and the average 50-hour workweek declined to 40 hours.
*c)* Because of its electoral successes the Socialist Party chose to make itself less radical, thereby breaching socialist unity by alienating firebrand IWW leaders.
Which of the following guidelines should be followed when writing an order acknowledgement message? *a)* Open the message with promotional material. *b)* Avoid wasting time in building goodwill. *c)* Begin with the news of when the order should be received by the customer. *d)* Begin by explicitly thanking the customer for their order. *e)* Refrain from mentioning expected delays.
*c)* Begin with the news of when the order should be received by the customer.
The popular theoretician of the rising capitalist spirit was _____ who published the first annual "Poor Richard's Almanack", an eclectic book of facts, information, and self-help advice. *a)* Thomas Jefferson *b)* Adam Smith *c)* Benjamin Franklin *d)* John Locke
*c)* Benjamin Franklin
_____ occurs when an individual solicits multiple contributions for a candidate, then bunches them together and passes them on. *a)* Trading *b)* Lobbying *c)* Bundling *d)* Peaking
*c)* Bundling
Which of the following is a legal defense that a company can use to fight a disparate impact charge? *a)* Affirmative action *b)* Systematic discrimination *c)* Business necessity *d)* The 80 percent rule
*c)* Business necessity
_____ is a market-based pollution abatement scheme in which emissions are limited and sources must hold tradable permits equal to the amount of their discharges. *a)* Command-and-control *b)* Carbon tax regime *c)* Cap and trade *d)* Carbon fees with rebates
*c)* Cap and trade
Which of the following is the predominant greenhouse gas, which makes up about 85 percent of greenhouse gas emissions? *a)* Chlorofluorocarbons *b)* Nitrous oxide *c)* Carbon dioxide *d)* Methane
*c)* Carbon dioxide
Which of the following are also called articles of incorporation? *a)* Stock options *b)* Share certificates *c)* Charters *d)* Perquisites
*c)* Charters
When a company gives monetary gifts to society in order to advance social welfare, it is called: *a)* the triple bottom line. *b)* a social audit. *c)* philanthropy. *d)* volunteering.
*c)* philanthropy
Which of the following is a traditional, passive form of corporate philanthropy characterized by donations to multiple worthy causes without any relationship to business strategy? *a)* Altruism *b)* Cause-related marketing *c)* Checkbook philanthropy *d)* Venture philanthropy
*c)* Checkbook philanthropy
The general rule that federal courts should defer to agency rules that are based on reasonable interpretations of ambiguous statutes is known as the _____ doctrine. *a)* laissez-faire *b)* Act of State *c)* Chevron *d)* Bernal
*c)* Chevron
Milton Friedman, his colleagues, and their free market ideas are known as the ____, a shorthand term for a doctrine of privatization, free trade, and deregulation. *a)* Stockholm School *b)* Freiburg School *c)* Chicago School *d)* Austrian School
*c)* Chicago School
_____ is regulation by nonstate actors based on social norms or standards enforced by social or market sanctions. *a)* State regulation *b)* Voluntary regulation *c)* Civil regulation *d)* Self-regulation
*c)* Civil regulation
During the first wave of regulation, most of the offices that were set up to perform regulatory functions were primarily promotional in nature. Which of the following was an exception? *a)* Copyright Office *b)* Bureau of Fisheries *c)* Comptroller of the Currency *d)* Patent and Trademark Office
*c)* Comptroller of the Currency
_____ values are the central beliefs that guide decisions and reside deep in a company's culture. *a)* Created *b)* Implicit *c)* Core *d)* Protected
*c)* Core
Identify the force of globalization that comes under "ideas." *a)* Wealth creation *b)* Financial crises *c)* Corporate citizenship *d)* Health care
*c)* Corporate citizenship
_____ refer to six natural substances that in large quantities cause the degradation of air quality. *a)* Point source effluents *b)* Greenhouse gases *c)* Criteria pollutants *d)* Hazardous air pollutants
*c)* Criteria pollutants
The _____ sets drinking water standards, but the _____ regulates bottled water. *a)* Food Safety and Inspection Service; Consumer Product Safety Commission *b)* Consumer Product Safety Commission; Food Safety and Inspection Service *c)* Environmental Protection Agency; Food and Drug Administration *d)* Food and Drug Administration; Environmental Protection Agency
*c)* Environmental Protection Agency; Foods and Drug Administration
All companies with 15 or more employees fall under the jurisdiction of Title VII and must report annually to the _____ the number of minorities and women in various job categories. *a)* Employment Development Department *b)* Bureau of Labor Statistics *c)* Equal Employment Opportunity Commission *d)* National Labor Relations Board
*c)* Equal Employment Opportunity Commission
What is the national treatment principle? *a)* Increasing national power by managing the economy to create a trade surplus. *b)* A principle of national self-sufficiency and economic independence. *c)* Equal treatment for imported and local goods in a domestic market. *d)* A principle enacted in some trade agreements requiring that if one participant extends any benefit to another, that participant must extend the same benefit to all.
*c)* Equal treatment for imported and local goods in a domestic market
The _____ divide projects into high, medium, and low social and environmental risk and compels borrowers to meet standards for ecological protection and to consult with native peoples. *a)* Global Reporting Initiatives *b)* FTSE4Good Global Indices *c)* Equator Principles *d)* Global Compact Societies
*c)* Equator Principles
According to which of the following is discrimination in favor of protected groups benevolent of intention? *a)* Distributive justice *b)* Compensatory justice *c)* Ethical theories of rights *d)* Utilitarian ethics
*c)* Ethical theories of rights
The Civil Rights Act of 1875 was based on the _____ Amendment. *a)* Sixteenth *b)* Thirteenth *c)* Fourteenth *d)* Fifteenth
*c)* Fourteenth
The international effort to develop uniform standards for company reports is called the: *a)* social audit. *b)* triple bottom line. *c)* GRI. *d)* stakeholder engagement.
*c)* GRI
The single most conspicuous effort to promote MNC social responsibility and to harness FDI for economic development is the: *a)* social contract. *b)* Universal Declaration of Human Rights. *c)* Global Compact. *d)* transnationality index.
*c)* Global Compact
Which of the following refers to a coalition of groups united by opposition to economic globalization dominated by corporate capitalism? *a)* Consumer rights movement *b)* Populist movement *c)* Global justice movement *d)* Civil rights movement
*c)* Global justice movement
The standard used by the International Organization for Standardization to determine the environmental impact of a product or service is the: *a)* ISO 5000. *b)* ISO 9000. *c)* ISO 14000. *d)* ISO 2600.
*c)* ISO 14000
The _____ is a standard for environmental management created by the International Organization for Standardization that allows companies to claim state-of-the-art ecological responsibility. *a)* ISO 12207 *b)* ISO 11940 *c)* ISO 14001 *d)* ISO 13485
*c)* ISO 14001
Which of the following fulfills the human need for concepts and categories of meaning that explain daily life? *a)* Paradigms *b)* Reality *c)* Ideology *d)* Subjective beliefs
*c)* Ideology
_____ occurs when a lawmaker or official seeks or receives anything of value because of an official action taken in the past or to be performed in the future. *a)* Lobbying *b)* Bribery *c)*Illegal gratuity *d)* Rigging
*c)* Illegal gratuity
Which of the following is true regarding the civilizations of ancient Greece and Rome? *a)* Both the civilizations were based on industrial activities. *b)* Economic activity by merchants, bankers, and manufacturers was at a maximum. *c)* Inaccurate economic doctrines were put forward to explain commercial activities. *d)* Philosophers reasoned that profit seeking was the best motive.
*c)* Inaccurate economic doctrines were put forward to explain commercial activities.
What is the election cycle? *a)* It is the two-year period between state elections. *b)* It is the time period between the declaration of the election date to the campaigning. *c)* It is the two-year period between federal elections. *d)* It is the time period between casting the ballot to the declaration of the results.
*c)* Is is the two-year period between federal elections
Which of the following is true regarding the law of torts? *a)* It involves one party making an offer for an arrangement that another party accepts. *b)* It covers any type of harm caused by one individual to another. *c)* It allows injured persons to seek compensation from parties that allege to have caused their injury. *d)* It is designed to provide compensation to victims and to send the tortfeasor to prison.
*c)* It allows injured persons to seek compensation from parties that allege to have caused their injury.
Which of the following is true regarding the FDA? *a)* Its main emphasis in terms of budget and staffing is food regulation. *b)* It is lax on premarket testing of new prescription drugs. *c)* It has the authority to inspect foreign food factories but the resources to visit only one-tenth of 1 percent of them. *d)* It has been successful in eradicating economically motivated contamination and counterfeiting in the food supply.
*c)* It has the authority to inspect foreign food factories but the resources to visit only one-tenth of 1 percent of them.
Which of the following observations about the Food and Drug Administration (FDA) is true? *a)* It was created by Congress in the Food Quality Protection Act of 1996. *b)* It descends from the old Agency for Healthcare Research and Quality. *c)* It is a big, complex agency in the Department of Health and Human Services. *d)* Its administrator reports to the Under Secretary for Food Safety.
*c)* It is a big, complex agency in the Department of Health and Human Services.
Which of the following is true regarding the executive agency? *a)* The administrator can be removed only for cause. *b)* It is an independent agency. *c)* It is run by a single administrator. *d)* The administrator is nominated by the Senate and confirmed by the president.
*c)* It is run by a single administrator.
Identify the correct statement about the Securities and Exchange Commission (SEC). *a)* SEC rules prohibit the dollar value of extra benefits from being disclosed to shareholders. *b)* It is a limited regulatory commission with five members, one of whom serves as chairman, appointed by the governor for five years. *c)* It now has a staff of 3,500 and an annual budget of approximately $900 million. *d)* Under SEC rules, a company can reject a proposed resolution for any of 30 reasons.
*c)* It now has a staff of 3,500 and an annual budget of approximately $900 million.
Which of the following statements about the Bipartisan Campaign Reform Act is true? *a)* It prohibited the national parties from raising and spending hard money. *b)* To compensate for the loss of hard money funds, contribution limits for individuals were raised. *c)* It prohibited corporations and unions from directly funding "issue ads." *d)* It made it illegal for corporations and unions to make contributions from their treasuries to advocacy groups.
*c)* It prohibited corporations and unions from directly funding "issue ads."
Which of the following statements about the Industrial Revolution is true? *a)* It started in the late 1800s. *b)* It first started in the United States. *c)* It transformed the agrarian economies into industrial economies. *d)* It did not require any specific conditions to be present.
*c)* It transformed the agrarian economies into industrial economies.
According to the ____ theory, humans are part of an ethical community that includes not only other human beings but all elements of the natural environment. *a)* Existentialism *b)* Deep ecology *c)* Land ethic *d)* Agrarianism
*c)* Land ethic
Identify the tier that is a part of internationalization. *a)* Indirect investments *b)* Importing essential goods *c)* Licensing franchises *d)* Portfolio investment
*c)* Licensing franchises
The idea that "the ends justify the means" was a basic tenet of: *a)* reciprocity. *b)* the theory of moral unity. *c)* Machiavelli. *d)* Donaldson and Dunfee.
*c)* Machiavelli
Which of the following refers to a policy of increasing national power by managing the economy to create a trade surplus? *a)* Capitalism *b)* Laissez-faire *c)* Mercantilism *d)* Free trade
*c)* Mercantilism
Which of the following is an important implication of the environmental Kuznets curve? *a)* Society will not focus much on education. *b)* Economic inequality decreases over time while a country is developing. *c)* More economic growth will not necessarily lead to steadily increasing levels of pollution. *d)* Environmental quality in growing economies will follow a path of long-term deterioration.
*c)* More economic growth will not necessarily lead to steadily increasing levels of pollution.
What is the evolutionary basis of ethics? *a)* Heredity *b)* Eugenics *c)* Natural selection *d)* Artificial selection
*c)* Natural selection
In terms of GRI indicators, which of the following is an economic performance indicator? *a)* Materials used by weight or volume. *b)* Total number of substantiated complaints. *c)* Number of jobs supported in the supply chain. *d)* Total value of financial and in-kind contributions to political parties.
*c)* Number of jobs supported in the supply chain.
Proposed rules are sent by executive branch agencies to the _____ where a staff of about 50 scrutinizes the proposed rule to see if it is really needed, if all alternatives have been examined, and whether its costs are justified. *a)* Office of Administration *b)* Office of Management and Budget *c)* Office of Information and Regulatory Affairs *d)* Office of Personnel Management
*c)* Office of Information and Regulatory Affairs
Which of the following guidelines should be followed when responding favorably to multiple questions in a routine inquiry message? *a)* Avoid using numbered or bulleted lists. *b)* Build suspense by answering the most important question last. *c)* Order your answers logically, such as in numbered paragraphs. *d)* Answer as concisely as possible, combining several answers into a single paragraph where practical. *e)* Make your answers stand out by responding to each question in a new message.
*c)* Order your answers logically, such as in numbered paragraphs.
Elewa needs an immediate response from her client about an incomplete order. Which of the following closing statements should she use in her message to the client? *a)* If you need further information, please don't hesitate to ask me. *b)* Thank you! I will be expecting a response from you soon. *c)* Please reply by 2-8:00 p.m. to ensure that your order ships today. *d)* Please contact me as soon as possible. *e)* Please send me these details at your convenience.
*c)* Please reply by 2-8:00 p.m. to ensure that your order ships today.
Which theory holds that business power is exercised in a society in which other institutions such as markets, government, labor unions, advocacy groups, and public opinion also have great power? *a)* State autonomy theory *b)* Elite theory *c)* Pluralist theory *d)* Dominance theory
*c)* Pluralist theory
Which theory of business power is the basis of the countervailing forces model of the business-government-society relationship? *a)* Dominance theory *b)* State autonomy theory *c)* Pluralist theory *d)* Elite dominance theory
*c)* Pluralist theory
_____ exists on a wide spectrum ranging from coercion at one extreme to weak influence at the other. *a)* An ideology *b)* Justice *c)* Power *d)* Pluralism
*c)* Power
_____ is a situation when submission to sexual activity is required to get or keep a job. *a)* Stalking *b)* Business necessity *c)* Quid pro quo *d)* Hostile environment
*c)* Quid pro quo
Which idea reflects the central purpose of ethics, which is to bind individuals into a cooperative social whole? *a)* Realism *b)* Utilitarianism *c)* Reciprocity *d)* Ethical relativism
*c)* Reciprocity
Which of the following had a negative impact on traditional American society with the introduction of trains and the subsequent extension of the railroads? *a)* Bringing more youth into rural areas. *b)* Giving frequent services to small towns. *c)* Redefining of rural areas from cultural heartland to rustic places. *d)* Centralization of corporate power in rural areas.
*c)* Redefining of rural areas from cultural heartland to rustic places.
Which of the following refers to a financing transaction in which one firm lends assets to another firm in exchange for cash with a simultaneous agreement to purchase the assets back? *a)* Forward rate agreement *b)* Swap agreement *c)* Repurchase agreement *d)* Future-forward agreement
*c)* Repurchase agreement
Which legal doctrine, created by the Supreme Court in 1909, states that corporations are liable for the actions of employees who commit a crime in the course of their employment when their act was for the benefit of the company? *a)* Res judicata *b)* Res ipsa loquitur *c)* Respondeat superior *d)* Quid pro quo
*c)* Respondeat superior
Which of the following was the belief prevalent in the South that racially segregated facilities were not inherently unequal? *a)* Balance of interest *b)* Clear statement rule *c)* Separate but equal *d)* Racial steering
*c)* Separate but equal
Which of the following situations contributed to the Industrial Revolution? *a)* Society that was low on capital and labor *b)* Closed society *c)* Society that encouraged individual initiative *d)* Inadequate transportation
*c)* Society that encouraged individual initiative
Which of the following sketches stakeholders in categories and depicts their relationship to the firm? *a)* Analysis map *b)* Stakeholder model *c)* Stakeholder map *d)* Concept map
*c)* Stakeholder map
Which of the following acts made it illegal for an individual to sit on the board of directors of two or more corporations if the corporations compete in the same market(s)? *a)* The Keating-Owen Act *b)* The Robinson-Patman Act *c)* The Clayton Act *d)* The Sherman Antitrust Act
*c)* The Clayton Act
What Act sets forth the general guideline that regulators should develop criteria for urban air quality that are "reasonably anticipated" to protect public health with "an adequate margin of safety." *a)* The Air (Prevention and Control of Pollution) Act *b)* The Air Quality Act *c)* The Clean Air Act *d)* The National Environmental Policy Act
*c)* The Clean Air Act
Which of the following agencies acts against housing and loan discrimination? *a)* The Federal Trade Commission *b)* The Bureau of Consumer Financial Protection *c)* The Equal Employment Opportunity Commission *d)* The Federal Deposit Insurance Corporation
*c)* The Equal Employment Opportunity Commission
In the fight against corruption, what 1977 Act was the first major manifesto in the anti-corruption framework. *a)* The Sarbanes-Oxley Act *b)* The Smoot-Hawley Tariff Act *c)* The Foreign Corrupt Practices Act *d)* The Racketeer Influenced and Corrupt Organizations Act
*c)* The Foreign Corrupt Practices Act
Which amendment to the U.S. Constitution gave women the right to vote in elections? *a)* The First Amendment *b)* The Seventeenth Amendment *c)* The Nineteenth Amendment *d)* The Tenth Amendment
*c)* The Nineteenth Amendment
Which of the following enacted new regulations on auditing, financial reporting, and legal compliance? *a)* The Bankruptcy Act *b)* The Sherman Antitrust Act *c)* The Sarbanes-Oxley Act *d)* The International Emergency Economic Powers Act
*c)* The Sarbanes-Oxley Act
Which of the following is the largest and most powerful peak association in the United States? *a)* The National Federation of Independent Businesses *b)* The National Association of Manufacturers *c)* The U.S. Chamber of Commerce *d)* The Business Roundtable
*c)* The U.S. Chamber of Commerce
Which of the following statements about the components of executive compensation is true? *a)* NYSE listing standards require that the compensation committee be composed of independent directors as well as the CEO. *b)* A compensation committee of expert consultants sets the pay of top corporate officers. *c)* The annual base salary is usually set near the median salary for leaders at comparable firms. *d)* Base salaries are often around $2 million, the amount that the IRS allows as tax deductible.
*c)* The annual base salary is usually set near the median salary for leaders at comparable firms.
Sequences of actions that add value to products and services are called business: *a)* communications. *b)* logics. *c)* processes. *d)* patterns.
*c)* processes
Which ethical principle holds that a manager faced with a moral choice must act in a way that he/she believes is right and just for any person in a similar situation? *a)* The disclosure rule *b)* The Doctrine of the Mean *c)* The categorical imperative *d)* The Might-Equals-Right Ethic
*c)* The categorical imperative
Which of the following doctrines defined the legal relationship between a consumer and other parties to a sale? *a)* The doctrine of res judicata *b)* The doctrine of res ipsa loquitur *c)* The doctrine of privity *d)* The doctrine of laches
*c)* The doctrine of privity
Which of the following is a set of methods and procedures for aligning corporate strategies, policies, and operations with principles that protect ecosystems? *a)* Superfund *b)* UNFCCC *c)* The environmental management system *d)* The Clean Development Mechanism
*c)* The environmental management system
Which of the following is true about strict liability? *a)* It arose in tort law many years ago in the United States. *b)* The theory of strict liability was extended to product liability and by the 1940s it was firmly entrenched. *c)* The injured person need not prove negligence to prevail in court. *d)* Injured consumers had to prove breach of warranty even after the 1960s to prevail in cases where there was some inherent danger in the use of a product.
*c)* The injured person need not prove negligence to prevail in court.
Identify the principle that admonishes a manager to treat employees as ends in themselves and not to manipulate them simply as factors of production for the self-interested ends of the company. *a)* The disclosure rule *b)* The Doctrine of the Mean *c)* The practical imperative *d)* The organization ethic
*c)* The practical imperative
Which of the following rejects ethical perfection, taking the position that human affairs will be characterized by flawed behavior and ought to be depicted as they are, not as we might wish them to be? *a)* The legalist school *b)* The school of ethical relativism *c)* The realist school *d)* The school of ethical universalism
*c)* The realist school
Which of the following is a criticism of the stakeholder model? *a)* It does not account for changes that take place in the ideas and processes of society. *b)* It generally reflects a way of looking at the BGS relationship Western nations. *c)* There is no single, clear, and objective measure to evaluate the combined ethical/economic performance of a firm. *d)* It has a negative impact on a corporation's wealth-creating function.
*c)* There is no single, clear, and objective measure to evaluate the combined ethical/economic performance of a firm.
Which of the following statements about compensation of outside board members is true? *a)* They are compensated as full-time employees of the firm. *b)* They are provided perquisites and pensions. *c)* They are usually paid an annual retainer supplemented with company stock. *d)* They are paid a monthly salary.
*c)* They are usually paid an annual retainer supplemented with company stock.
Tasks like revising or creating policies, budgeting resources, and assigning work are a part of the: *a)* mission statement. *b)* vision statement. *c)* action plan. *d)* code of conduct.
*c)* action plan
The Global Compact: *a)* is a code of conduct. *b)* enforces its principles. *c)* advances its principles as an "aspirational" set of "shared values." *d)* requires mandatory participation.
*c)* advances its principles as an "aspirational" set of "shared values."
With regard to CSR, the growing number of board committees and vice presidents of corporate responsibility implies more _____ than usually exists in practice. *a)* decentralization *b)* silent decentralization *c)* centralization *d)* libertarianism
*c)* centralization
Rights that are given to citizens by their government are called: *a)* unalienable rights. *b)* moral rights. *c)* civil rights. *d)* natural rights.
*c)* civil rights
A combination of business interests—including corporations, trade associations, and peak associations—united to pursue a political goal is known as a(n): *a)* institution. *b)* legation. *c)* coalition. *d)* agency.
*c)* coalition
The practice of regulating by setting uniform standards, strictly enforcing rules, and using penalties to force compliance is known as: *a)* environmental tax reform. *b)* cap and trade approach. *c)* command-and-control regulation. *d)* market incentive regulation.
*c)* command-and-control regulation
The Office of Federal Contract Compliance Programs: *a)* establishes rigid hiring goals for all companies. *b)* has mandated a goal of 10 percent females in the construction industry. *c)* conducts zealous compliance reviews. *d)* uses qualitative tools to target companies where discrimination is most likely to be uncovered.
*c)* conducts zealous compliance reviews
According to ____, corporate social responsibility creates administrative expenses, distracts executives, confuses economic goals with other goals, and subtracts from social welfare when the corporation is less efficient. *a)* radical Progressives *b)* progressive civil societies *c)* conservative economists *d)* moderate Progressives
*c)* conservative economists
Economist Thorstein Veblen argued that in the new industrial society, people earned their status by: *a)* conquest in warfare. *b)* prowess in hunting. *c)* conspicuous consumption. *d)* respecting interior values.
*c)* conspicuous consumption
The movement that promotes the rights and powers of end users in relation to the sellers of products and services is called: *a)* citizenship. *b)* materialism. *c)* consumerism. *d)* productivism.
*c)* consumerism
Eliminating all forced or compulsory labor, abolishing child labor, eliminating employment discrimination, and guaranteeing the right of collective bargaining are part of the _____ standards. *a)* second New Deal *b)* fair labor *c)* core labor *d)* agency worker
*c)* core labor
The set of values, norms, and rules that define a company are called: *a)* management theory. *b)* organizational performance. *c)* corporate culture. *d)* strategies and policies.
*c)* corporate culture
The fundamental idea behind _____ is that corporations have duties that go beyond lawful execution of their economic function. *a)* corporate social entrepreneurship *b)* corporate sustainability *c)* corporate social responsibility *d)* corporate governance
*c)* corporate social responsibility
The systematic calculation of the bottom line and profit of a proposed regulatory action is called: a)* cost-effectiveness analysis. *b)* cost-utility analysis. *c)* cost-benefit analysis. *d)* QALY.
*c)* cost-benefit analysis
After 1974, subcommittees: *a)* typically had to seek permission from the Congress before taking any actions. *b)* were dominated by a few leaders. *c)* could hold hearings on any subject they wished. *d)* started having small staffs.
*c)* could hold hearings on any subject they wished.
At the _____ level of corporate power, society encounters an intangible realm of social networks, time, and physical space, a realm crossed by complex chains of cause and effect that converge and interact, shaping and reshaping the society. *a)* apparent *b)* exterior *c)* deep *d)* surface
*c)* deep
The theory that rejects human domination of nature and holds that humans have only equal rights with other species, not superior rights, is the theory of: *a)* agrarianism. *b)* existentialism. *c)* deep ecology. *d)* land ethic.
*c)* deep ecology
On this level of political power, industrialization engenders values that radiate freedom and erode authoritarian regimes. *a)* Apparent *b)* Exterior *c)* Deeper *d)* Surface
*c)* deeper
A progressive business model: *a)* is one where social performance is based on the response of the management teams to pressures in the business environment. *b)* focuses on making a profit and resists demand to go beyond the minimum duty of obeying the law. *c)* defines a strategy that meets market needs by mitigating social problems. *d)* is one in which the central strategy for creating value is based on meeting market demands.
*c)* defines a strategy that meets market needs by mitigating social problems.
The _____ contract was traditionally defined as an employment contract that could be ended by either the employer or the employee without notice and for any or no reason. *a)* right-to-work *b)* individual freedom *c)* employment at-will *d)* just cause
*c)* employment at-will
The Civil Rights Act of 1866 protected the blacks against: *a)* discrimination in transportation and accommodations. *b)* ethnic violence. *c)* employment discrimination. *d)* discrimination in practicing their religion.
*c)* employment discrimination
_____ refers to an invisible barrier of sex discrimination thwarting the advance of women to top corporate positions. *a)* Glass closet *b)* Glass elevator *c)* Glass ceiling *d)* Bamboo ceiling
*c)* glass ceiling
Manufacturing, mining, and construction are a part of the _____ sector. *a)* agricultural *b)* service *c)* goods-producing *d)* agrarian
*c)* goods-producing
Atmospheric gases that absorb energy radiated from the earth, decreasing its release into space are known as: *a)* condensibles. *b)* organic gases. *c)* greenhouse gases. *d)* effluents.
*c)* greenhouse gases
The World Trade Organization (WTO): *a)* allows the defendant in a dispute to veto a decision if it disagreed. *b)* is not a full-fledged international organization. *c)* has been unsuccessful in adding to the GATT legacy of trade liberalization. *d)* succeeded in launching a new round at meetings in Seattle in 1999.
*c)* has been unsuccessful in adding to the GATT legacy of trade liberalization
According to Thomas Donaldson and Thomas W. Dunfee, the right to political participation is a(n): *a)* master morality. *b)* example of reciprocity. *c)* hypernorm. *d)* example of moral muteness.
*c)* hypernorm
All of the following statements are true of FDI EXCEPT: *a)* it is the financial process by which a corporation takes partial or total control of foreign assets. *b)* it is measured as the dollar value of funds invested by a parent corporation. *c)* it is a short-term investment that can be sold anytime. *d)* it is almost always made by transnational corporations.
*c)* it is a short-term investment that can be sold anytime.
The philosophy of an open society in which the state does not interfere with rights of the individuals is known as: *a)* neoliberalism. *b)* embedded liberalism. *c)* liberalism. *d)* racism.
*c)* liberalism
When a business hires a person in order to advocate a position to the government, it is said to be indulging in: *a)* corruption. *b)* campaigning. *c)* lobbying. *d)* coalescing.
*c)* lobbying
The Foreign Corrupt Practices Act (FCPA): *a)* can fine individuals up to $2 million and five years in prison for violations of the law's bribery provisions. *b)* makes it a criminal rather than a civil offense to bribe an official of a foreign government. *c)* makes it legal for bribes paid by managers of one corporation to managers of another. *d)* contains an exception for facilitating paym
*c)* makes it legal for bribes paid by managers of one corporation to managers of another
The three elements of social responsibility are: *a)* market actions, profit actions, and voluntary actions. *b)* profit actions, externally mandated actions, and voluntary actions. *c)* market actions, externally mandated actions, and voluntary actions. *d)* market actions, externally mandated actions, and profit actions.
*c)* market actions, externally mandated actions, and voluntary actions.
Projects that compensate for all or part of a company's greenhouse gas emissions by eliminating the equivalent sum of those emissions from another source are known as carbon: *a)* footprints. *b)* sequestrations. *c)* offsets. *d)* management systems.
*c)* offsets
Compensation of these directors is determined by compensation committees on boards. *a)* Inside directors *b)* Internal directors *c)* Outside directors *d)* International directors
*c)* outside directors
One of the measures of political globalization is: *a)* inflows of foreign direct investment as a percent of GDP. *b)* newspaper and book sales. *c)* participation in international organizations. *d)* trade as a percent of GDP.
*c)* participation in international organizations.
The set of rules that a manager can use to make decisions that have both good and bad consequences is the basis of the: *a)* might-equals-right ethic. *b)* ends-means ethic. *c)* proportionality ethic. *d)* utilitarian ethic.
*c)* proportionality ethic
The belief that each race has distinctive cultural characteristics and that one's own race is superior to other races is called: *a)* ethnocentrism. *b)* ethnic essentialism. *c)* sexism. *d)* racism.
*c)* racism
All of the following are examples of economic performance indicators in the triple bottom line EXCEPT: *a)* net revenues. *b)* taxes paid. *c)* ratio of basic salary of men to women by employee category. *d)* charitable monetary contributions to local organizations.
*c)* ratio of basic salary of men to women by employee category.
Salarymen are: *a)* also called blue-collar businessmen. *b)* titles given to senior members of non-profit organizations. *c)* regular employees who are expected to remain with a firm permanently. *d)* legal officers of a company or unincorporated business.
*c)* regular employees who are expected to remain with a firm permanently
Some regulations stop firms from making products in harmful ways, such as, by exposing workers to danger or by releasing pollutants. This is an example of the government trying to: *a)* provide information. *b)* resolve national and global problems. *c)* regulate socially desirable production methods. *d)* regulate special customers.
*c)* regulate socially desirable production methods
Government activity that guides the behavior of citizens, groups, and corporations to reach economic or social goals is known as: *a)* autarky. *b)* national treatment. *c)* regulation. *d)* liberalization.
*c)* regulation
According to brain research, the effectiveness of the disclosure rule is shown to rest on emotions such as: *a)* fear. *b)* greed. *c)* remorse. *d)* anger.
*c)* remorse
The number of children a woman must have on average to ensure that one daughter survives to reproductive age is known as: *a)* total fertility rate. *b)* sub-replacement fertility. *c)* replacement fertility rate. *d)* net reproduction rate.
*c)* replacement fertility rate
The near-spiritual belief that individual managers served society by making each business successful is called the: *a)* balance of power principle. *b)* benefit principle. *c)* service principle. *d)* Friedman principle.
*c)* service principle
According to Michael Porter and Mark Kramer, an "essential test" for the worthiness of any additional social initiative is to determine whether it presents an opportunity to create _____ that is, a meaningful benefit for society that is also valuable to the business. *a)* collective norms *b)* collective strategies *c)* shared value *d)* shared essential
*c)* shared values
According to Friedrich Nietzsche, the mass of ordinary people developed a(n) _____ intended to shackle the great men. *a)* master morality *b)* moral free space *c)* slave morality *d)* ethical relativism
*c)* slave morality
According to ____, rich people and dominant companies are morally superior. *a)* neo-Darwinism *b)* neural Darwinism *c)* social Darwinism *d)* universal Darwinism
*c)* social Darwinism
Nonwage costs, including payments for social security, health insurance, and payroll taxes that employers must pay to cover disability, unemployment, maternity leave, and similar benefits are known as: *a)* externalities. *b)* community firm costs. *c)* social welfare costs. *d)* superannuation costs.
*c)* social welfare costs
During the Middle Ages, the Roman Catholic Church: *a)* was tolerant of profit seeking. *b)* focused on the acquisition of wealth. *c)* sought special status for the poor. *d)* love of material things was not an act against God.
*c)* sought special status for the poor.
Acid rain is caused primarily by two air borne pollutants: *a)* particulates and lead. *b)* volatile organic compounds and carbon monoxide. *c)* sulfur dioxide and oxides of nitrogen. *d)* radon and ozone.
*c)* sulfur dioxide and oxides of nitrogen
The _____ in the Constitution, Article VI, Section 2, sets forth the principle that when the federal government passes a law within its powers, the states are bound by that law. *a)* First Amendment *b)* separation of powers clause *c)* supremacy clause *d)* Tenth Amendment
*c)* supremacy clause
On the _____ of legal power, big corporations have formidable legal resources that intimidate opponents. *a)* abysmal level *b)* fathomless level *c)* surface level *d)* deep level
*c)* surface level
Which of the following is the best approach to use when a message is likely to evoke a positive response from the reader? *a)* the indirect approach *b)* the active approach *c)* the direct approach *d)* the practical approach *e)* the passive approach
*c)* the direct approach
According to G. William Domhoff: *a)* a new "superclass" eclipses the power of national elites. *b)* the elite used government "as an umbrella under whose authority they do their work." *c)* the power elite has the power to shape the economic and political frameworks within which other groups and classes must operate. *d)* a "superclass" has emerged, operating across borders through networks of individuals and organizations.
*c)* the power elite has the power to shape the economic and political frameworks within which other groups and classes must operate.
The first wave of federal workplace regulation established: *a)* drug test rules. *b)* worker health and safety rules. *c)* union rights. *d)* pension rights.
*c)* union rights
"Actions that promote happiness are right while actions that promote unhappiness are wrong" is the basis of the: *a)* might-equals-right ethic. *b)* ends-means ethic. *c)* utilitarian ethic. *d)* organization ethic.
*c)* utilitarian ethic
A holder of stock options can buy shares from the company at a specified future date, called the _____ date. *a)* withdrawal expiration *b)* inception *c)* vesting *d)* annuitization
*c)* vesting
Product liability: *a)* is a doctrine in the body of common law known as the law of torts. *b)* cases are always based on negligence. *c)* was not a progressive part of the law until the 1960s. *d)* cases are always based on strict liability.
*c)* was not a progressive part of the law until the 1960s
The Environmental Protection Agency: *a)* is a legislative branch regulatory agency. *b)* was created in 1990 to consolidate environmental programs scattered throughout the federal government. *c)* writes detailed, specific rules needed to make environmental laws work. *d)* cannot enforce rules directly on corporations.
*c)* writes detailed, specific rules needed to make environmental laws work
Risk is the probability that a harm will occur and it is typically measured on a scale that ranges between: *a)* minus one and absolute certainty. *b)* minus one to plus one. *c)* zero and absolute certainty. *d)* zero to ten.
*c)* zero and absolute certainty
Which of the following statements about the requirements of proxy statements is true? *a)* The proposed resolution must be presented to the company for approval at least 100 days before the annual meeting. *b)* Stockholders must own $3,000 or more shares for at least one year. *c)* The proposal cannot exceed 1,000 words. *d)* A shareholder may submit only one proposal for a particular shareholder meeting.
*d)* A shareholder may submit only one proposal for a particular shareholder meeting.
Which of the following is a trend that works in the legal environment to constrain business behavior? *a)* Laws and regulations steadily decline in number and complexity. *b)* Legal duties to protect the rights of stakeholders have lessened. *c)* Globalization has decreased the complexity of the legal environment by shielding corporations from the laws of foreign nations. *d)* Although requirements of ethical behavior and corporate social responsibility go beyond legal duty, they are continuously encoded into law.
*d)* Although requirements of ethical behavior and corporate social responsibility go beyond legal duty, they are continuously encoded into law.
Which of the following is true regarding the job scenario and compensation awarded to men and women currently? *a)* Men's earnings have steadily grown, while women's have stagnated. *b)* Women hold higher percentage of job in the static manufacturing and construction sectors. *c)* Men predominate in rapidly growing service occupations. *d)* Although women earn less than men, the gap is a narrow one.
*d)* Although women earn less than men, the gap is a narrow one.
Which of the following statements is true about rulemaking in the U.S. regulatory process? *a)* Proposed rules are sent by independent regulatory agencies to the Office of Information and Regulatory Affairs. *b)* Publication of a proposed rule opens a period, usually 60 to 90 days, during which the public can comment to the agency. *c)* Rulemaking for lesser regulations to be completed often takes years. *d)* An OIRA staff of about 50 scrutinizes a proposed rule to see if it is really needed.
*d)* An OIRA staff of about 50 scrutinizes a proposed rule to see if it is really needed.
Which of the following is an example of quid pro quo? *a)* The interviewer tells Brenda that her qualifications are excellent for a female employee. *b)* Charles Inc., requires that all female employees wear high heels during work hours. *c)* David is often asked to work overtime because he is a bachelor. *d)* Ariana is denied a promotion because she refuses to go out with her boss.
*d)* Ariana is denied a promotion because she refuses to go out with her boss.
Which of the following is true about an agrarian society? *a)* It was a postindustrial society. *b)* Most people worked in the industries for subsistence. *c)* The political and cultural values of such societies was based on industrial experience. *d)* Business activity beyond barter and exchange was a tiny part of the economy.
*d)* Business activity beyond barter and exchange was a tiny part of the economy.
Companies can manage their responses to social pressures by moving through a process of: *a)* hiring and firing. *b)* customer service. *c)* expanding their product lines. *d)* CSR implementation.
*d)* CSR implementation
_____ is a mechanism in which a ton of CO2e is a traded commodity with a price that fluctuates based on changes in supply and demand. *a)* Clean Development Mechanism *b)* Green market *c)* Greenwashing *d)* Carbon market
*d)* Carbon market
Which of the following are used as refrigerants, aerosol propellants, foams, and solvents? *a)* Herbicides *b)* Placebos *c)* Carbon monoxides *d)* Chlorofluorocarbons
*d)* Chlorofluorocarbons
The primary air quality statute in the United States is the: *a)* Air (Prevention and control of Pollution) Act. *b)* Air Quality Act. *c)* National Environmental Policy Act. *d)* Clean Air Act.
*d)* Clean Air Act
Which of the following is NOT an element of the regulatory options spectrum? *a)* Market incentives *b)* Voluntary compliance *c)* Flexible enforcement *d)* Contingent valuation
*d)* Contingent valuation
Which of the following statements about culture is true? *a)* It is impossible to communicate with people unless you understand their cultural roots. *b)* The differences between national cultures are strong and unchanging. *c)* Our dominant culture affects how we communicate, but not how we think. *d)* Cultures change as people, ideas, and things move across borders. *e)* A person always represents the culture of his or her national origin.
*d)* Cultures change as people, ideas, and things move across borders.
_____ is the process of removing or substantially reducing the body of control covering an industry. *a)* Liberalization *b)* Privatization *c)* Globalization *d)* Deregulation
*d)* Deregulation
The first step in the formation of what organization was taken in 1987 when the United States and Canada signed a free trade agreement. *a)* IMF *b)* EU *c)* WTO *d)* NAFTA
*d)* NAFTA
Identify the theory that adopts the belief that different cultures may create different values and there is no universal standard by which to judge which values are superior. *a)* Reciprocity *b)* Ethical universalism *c)* The theory of amorality *d)* Ethical relativism
*d)* Ethical relativism
This is the financial process by which a corporation takes partial or total control of foreign assets with the intention of having a long-term presence. *a)* TPI *b)* Indirect investment *c)* Portfolio investment *d)* FDI
*d)* FDI
In 1914, Congress set up a second independent regulatory commission, the ____, to prohibit unfair means of competition. *a)* Interstate Commerce Commission *b)* United States Consumer Product Safety Commission *c)* U.S. Commission on Civil Rights *d)* Federal Trade Commission
*d)* Federal Trade Commission
The _____ has oversight of deceptive marketing, but if the fraud involves a moving van the _____ takes jurisdiction. *a)* Consumer Product Safety Commission; Federal Trade Commission *b)* Consumer Product Safety Commission; Federal Motor Carrier Safety Administration *c)* Federal Motor Carrier Safety Administration; Federal Trade Commission *d)* Federal Trade Commission; Federal Motor Carrier Safety Administration
*d)* Federal Trade Commission; Federal Motor Carrier Safety Administration
Which of the following is true about regulatory statutes? *a)* A bill containing regulatory authority has to be passed by at least one house of the Congress. *b)* After the bill containing regulatory authority is passed, it is assigned exclusively to an independent commission. *c)* Statutes contain all the specific rules needed. *d)* Federal regulation originates in an act of Congress.
*d)* Federal regulation originates in an act of Congress.
The International Organization for Standardization is developing the _____ which is intended to set forth underlying principles, core subjects, and methods for integrating social performance in the plans, systems, and processes of organizations. *a)* ISO 5000 *b)* ISO 9000 *c)* ISO 14000 *d)* ISO 2600
*d)* ISO 2600
What is the major advantage of a cap-and-trade system? *a)* It reduces costs for companies under the cap. *b)* It puts companies under the cap at a competitive advantage when foreign competitors are outside the cap. *c)* It allows developed countries to meet greenhouse gas reproduction pledges by paying for carbon offset projects in developing nations. *d)* It actually reduces overall emissions as the cap is lowered.
*d)* It actually reduces overall emissions as the cap is lowered
Which of the following is true regarding the modern nation-state? *a)* It is an independent entity which is not administered as part of a local government. *b)* It is a sovereign state which is comprised of two or more nations. *c)* It is the single dominant ethnic group in a state. *d)* It arose in an unplanned way out of the wreckage of the Roman Empire.
*d)* It arose in an unplanned way out of the wreckage of the Roman Empire.
Which of the following statements about historical forces is true? *a)* It is of known origin. *b)* It is divided into six separate but related forces. *c)* It is a social force. *d)* It causes a distinct chain of events.
*d)* It causes a distinct chain of events.
Which of the following statements about social contracts is true? *a)* Businesses are not obligated to fulfill social contracts. *b)* It codifies the expectations of business from society and other stakeholders. *c)* It is as clear-cut as the economic forces a business faces. *d)* It is partly expressed in law, but also resides completely in social values.
*d)* It is partly expressed in law, but also resides completely in social values.
Which of the following is true regarding the U.S. Constitution? *a)* It sets up a unitary state. *b)* It establishes a system under which the legislative, executive, and judicial functions of the government are integrated with each other. *c)* The judges have no power to review legislative and executive actions. *d)* It makes the federal government more powerful than the governments of the individual states.
*d)* It makes the federal government more powerful than the governments of the individual states.
Several features of American society support the thesis of pluralism. Which of the following is one of them? *a)* It has capitalist values. *b)* It encompasses a small population spread over a small geography but engaged in diverse occupations. *c)* Its businesses are free of market pressures. *d)* Its Constitution encourages pluralism.
*d)* Its Constitution encourages pluralism.
Which of the following is true regarding the Consumer Product Safety Commission (CPSC)? *a)* The agency was set up at the crest of the first wave of consumer protection. *b)* Congress gave it little autonomy. *c)* It is subject to presidential control. *d)* Its five commissioners have staggered seven-year appointments.
*d)* Its five commissioners have staggered seven-year appointments.
The _____ which went into effect in 2005 requires industrial nations to cut emissions of heat-trapping gases an average of 5 percent below 1990 levels by 2012. *a)* Montreal Protocol *b)* Aarhus Convention *c)* Barcelona Convention *d)* Kyoto Protocol
*d)* Kyoto Protocol
That businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining comes under which Global Compact principle? *a)* Anti-corruption *b)* Human rights *c)* The environment *d)* Labor standards
*d)* Labor standards
In terms of GRI indicators, which of the following is an environmental performance indicator? *a)* Percentage of employees trained in the organization's anticorruption policies *b)* Voluntary donations to communities *c)* Net revenues *d)* Materials used by weight or volume
*d)* Materials used by weight or volume
Which of the following social movements attacked business for contributing to a range of social ills including racism and sexism, consumer fraud, dangerous and alienating work, political corruption, and war profiteering? *a)* Movements for civil rights, euthanasia, and the environment and against the Vietnamese War. *b)* Movements for civil rights, consumer rights, euthanasia and against the Vietnamese War. *c)* Movements for civil rights, Protestant ethics, and the environment and against the Vietnamese War. *d)* Movements for civil rights, consumer rights, and the environment and against the Vietnamese War.
*d)* Movements for civil rights, consumer rights, and the environment and against the Vietnamese War.
Which of the following correctly outlines the corporate social responsibility spectrum reading from left to right? *a)* Free market conservatives, mainstream corporate managers, progressive civil societies, and radical Progressives. *b)* Radical Progressives, mainstream corporate managers, progressive civil societies, and free market conservatives. *c)* Free market conservatives, progressive civil societies, and radical Progressives. *d)* Radical Progressives, progressive civil societies, mainstream corporate managers, and free market conservatives.
*d)* Radical Progressives, progressive civil societies, mainstream corporate managers, and free market conservatives.
Principle 9 of the Global Compact Principles urges a precautionary approach to environmental risks, a philosophy rising from the _____ and accepted by regulators in Europe, but less so in the United States. *a)* Earth Summit *b)* Convention on Biological Diversity *c)* Earth Charter *d)* Rio Declaration
*d)* Rio Declaration
Which of the following statements about body movements is true? *a)* Even though the meanings of body movements vary by culture, eye contact is the same around the world. *b)* The meanings of body movements are generally the same around the world. *c)* A movement that is respectful in one culture will be respectful in another culture. *d)* Some body movements have clear meanings that are a crucial part of communication, while others do not. *e)* If a movement has meaning in one culture, it has meaning in another culture, even if the meaning is slightly different.
*d)* Some body movements have clear meanings that are a crucial part of communication, while others do not.
In terms of levels of corporate power, on which of the following levels is business power the direct cause of visible, immediate changes, both great and small? *a)* Deep level *b)* Profound level *c)* Multilayered level *d)* Surface level
*d)* Surface level
Identify the Act that prohibits consideration of economic factors in the decision to list a species. *a)* The United States Fish and Wildlife Service Act *b)* The Land and Water Conservation Fund Act *c)* The Driftnet Impact Monitoring, Assessment and Control Act *d)* The Endangered Species Act
*d)* The Endangered Species Act
What is a 1977 code of conduct that required multinational corporations in South Africa to do business in a nondiscriminatory way. *a)* The MacBride Principles *b)* The Equator Principles *c)* The CERES Principles *d)* The Sullivan Principles
*d)* The Sullivan Principles
A manager faced with an ethical dilemma asks herself how it would feel to explain the decision to a wider audience by using this ethical principle. *a)* The ends-means ethic *b)* The principle of proportionality *c)* The Doctrine of the Mean *d)* The disclosure rule
*d)* The disclosure rule
Which of the following statements about internal-operational messages is true? *a)* They are casual exchanges between the employees of an organization with those of another organization. *b)* They are formal messages sent from employees of an organization to outsiders. *c)* They are messages developed by a business to communicate effectively with its clients. *d)* The formality of such communication ranges from casual to moderately formal to formal. *e)* Documents uploaded to intranets cannot be classified as internal-operational messages.
*d)* The formality of such communication ranges from casual to moderately formal to formal.
Which of the following is true regarding the implications of the current population trend? *a)* The global population growth is rising. *b)* The global population growth will be lowest in the least developed countries. *c)* The wealth gap between the high-and-low-income countries will narrow down. *d)* The global population growth will continue to strain the earth's ecosystem.
*d)* The global population growth will continue to strain the earth's ecosystem.
Sexual harassment is illegal under: *a)* the Employment Non-Discrimination Act. *b)* Executive Order 11478. *c)* the Federal Employers Liability Act. *d)* Title VII of the Civil Rights Act of 1964.
*d)* Title VII of the Civil Rights Act of 1964
What is the purpose of the General Agreement on Tariffs and Trade (GATT)? *a)* To devalue currencies and limit cross-border movement of funds. *b)* To overcome shortages of private capital to make loans for rebuilding war-torn nations. *c)* To raise the cost of imports, making them less competitive with similar domestic goods. *d)* To expand trade by eliminating discriminatory barriers.
*d)* To expand trade by eliminating discriminatory barriers
What was the original intent of the 1789 Alien Tort Claims Act? *a)* To make it illegal for U.S. citizens anywhere in the world to bribe foreign officials. *b)* To set criminal penalties in abetting the overthrow of the U.S. government. *c)* To protect the United States from enemy aliens. *d)* To protect the rights of ambassadors and to try pirates.
*d)* To protect the rights of ambassadors and to try pirates.
Which of the following is considered to be the bedrock of economic globalization? *a)* Monopoly *b)* Foreign direct investment *c)* Oligopoly *d)* Trade liberalization
*d)* Trade liberalization
To solve agrarian ills, the populists: *a)* demanded that U.S. senators be picked by state legislatures. *b)* sought to defend the gold standard. *c)* espoused the use of capitalism. *d)* advocated government ownership of railroad, telegraph, telephone companies, and banks.
*d)* advocated government ownership of railroad, telegraph, telephone companies, and banks.
Command-and-control regulation: *a)* gives polluters financial motives to control pollution. *b)* does not grant abatements. *c)* helps determine the value of statistical life. *d)* can increase costs without commensurate increases in benefits.
*d)* can increase costs without commensurate increases in benefits
According to the doctrine of social Darwinism: *a)* rich people and dominant companies are unethically superior. *b)* charity is wrong only when it raises the character and superiority of the giver. *c)* well-meaning people who gave to charity assisted with the natural law of progress by propping up successful examples of the human race. *d)* charity interferes with the natural evolutionary process in which society shed its less fit to make way for the better adapted.
*d)* charity interferes with the natural evolutionary process in which society shed its less fit to make way for the better adapted.
Most companies, including nearly all of the largest multinationals, vary in their reaction to pressures in the operating environment across a spectrum from reluctance to enthusiasm. At the right of this spectrum: *a)* the extent of companies' citizenship is determined by the power of stakeholders over their behavior. *b)* companies accept social obligations and may work to mitigate adverse impacts on society before regulations can be passed. *c)* companies focus on making a profit and resist demands to go beyond the minimum duty of obeying the law. *d)* companies seek to be proactive by anticipating demands and resolving problems before they arise.
*d)* companies seek to be proactive by anticipating demands and resolving problems before they arise.
Corporate charters specify the rights and responsibilities of all of the following EXCEPT: *a)* directors *b)* stockholders *c)* officers *d)* consumers
*d)* consumers
Direct interaction with government officials or staff through meetings, phone calls, or e-mails is known as: *a)* background lobbying. *b)* grassroots lobbying. *c)* media lobbying. *d)* contact lobbying.
*d)* contact lobbying
All of the following ratios are used to compute the TNI EXCEPT: *a)* foreign employment to total employment. *b)* foreign assets to total assets. *c)* foreign sales to total sales. *d)* foreign assets to total unemployment.
*d)* foreign assets to total unemployment
In addition to regulations, agencies issue larger volumes of _____ in documents such as memoranda, circulars, compliance manuals, and advisory opinions. *a)* rules *b)* policies *c)* principles *d)* guidance
*d)* guidance
Money that is raised and spent under the strict contribution limits and rules in federal election law is called: *a)* soft money. *b)* earnest money. *c)* easy money. *d)* hard money.
*d)* hard money
Political scientist Thomas R. Dye: *a)* identified a "superclass" operating across borders through networks of individuals and organizations. *b)* suggested that the new "superclass" eclipsed the power of national elites. *c)* coined the term "power elite". *d)* identified an "institutional elite" of individuals who occupied the top positions in 10 sectors.
*d)* identified an "institutional elite" of individuals who occupied the top positions in 10 sectors.
A nominating committee: *a)* oversees auditing reports and assesses financial risks in the company's strategy. *b)* reviews the performance of top executives and sets their compensation. *c)* sets the director's pay. *d)* identifies candidates for election to the board.
*d)* identifies candidates for election to the board
The burden of regulation can be measured or characterized by all of the following methods EXCEPT: *a)* impact of regulation on innovation. *b)* total dollar cost. *c)* cost of administering the regulatory process. *d)* impact of regulation on unemployment.
*d)* impact of regulation on unemployment.
The theory of land ethic: *a)* holds that human domination of nature should cease. *b)* indicates bias toward the members of one's own species and against those of members of other species. c)* means distributing land from the rich to the poor. *d)* implies an ethical duty to nature as well as humanity.
*d)* implies an ethical duty to nature as well as humanity
A(n) _____ agency is a regulatory agency run by a small group of commissioners free of political control. *a)* traditional executive branch *b)* general regulatory *c)* federal executive department *d)* independent regulatory
*d)* independent regulatory
_____ is the idea, arising in the Enlightenment, that human beings are ends in themselves. *a)* Collectivism *b)* Utilitarianism *c)* Consumerism *d)* Individualism
*d)* individualism
According to Alexander Hamilton: *a)* America should aspire to spread farming over its immense, unsettled territory. *b)* manufacturing as an occupation leads to venality. *c)* an agrarian economy would bring a state of equality and concern for the common good. *d)* industrial growth would increase national power.
*d)* industrial growth would increase national power.
Classical ideology focused solely on the _____ circle of social responsibility. *a)* intermediate *b)* outer *c)* neutral *d)* inner
*d)* inner
The environmental Kuznets curve is a(n) _____ curve. *a)* S-shaped *b)* J-shaped *c)* inverted J-shaped *d)* inverted U-shaped
*d)* inverted U-shaped
Risk characterization: *a)* is a measure of activities that bring individuals in contact with toxic substances. *b)* is a statistical survey of human mortality and morbidity in a sample population. *c)* is a quantitative estimate of how toxic a substance is to humans at increasing levels of exposure. *d)* is a detailed, written narrative describing the scientific evidence, including areas of ambiguity.
*d)* is a detailed, written narrative describing the scientific evidence, including areas of ambiguity
The OECD Guidelines for Multinational Enterprises: *a)* are a set of 16 broadly worded principles about protecting and conserving the natural environment. *b)* reinforces capitalism by making it moral. *c)* are global guidelines for socially responsible and ethical behavior based on ethical ideas in the great religions. *d)* is the only comprehensive global code of corporate conduct endorsed by governments.
*d)* is the only comprehensive global code of corporate conduct endorsed by governments
A person hired by a corporation to oversee fulfillment of conditions in an agreement to avoid criminal indictment is called a: *a)* gatekeeper. *b)* mentor. *c)* principal. *d)* monitor.
*d)* monitor
The idea that only one set of ethical standards exists for business and for society is known as the theory of: *a)* amorality. *b)* moral muteness. *c)* hypernorms. *d)* moral unity.
*d)* moral unity
For the largest companies in each era, economies of scale and _____ in markets led to high profits and prolonged their dominance. *a)* monopolistic competition *b)* perfect competition *c)* monopoly *d)* oligopoly
*d)* oligopoly
The United Nations defines transnational corporations (TNCs) as: *a)* doing business in the state in which they are incorporated. *b)* doing business in the state of incorporation as well as neighboring states in the same country. *c)* companies that have erased national allegiances and become itinerant firms that move investment and activity from nation to nation in search of profits. *d)* parent firms that control the assets of affiliated entities in foreign countries including branches, subsidiaries, and joint ventures.
*d)* parent firms that control the assets of affiliated entities in foreign countries including branches, subsidiaries, and joint ventures
Regulation of railroads, banks, and natural resources are examples of the government: *a)* passing regulations to benefit special interests. *b)* regulating socially desirable goods and services. *c)* regulating socially desirable production methods. *d)* passing resolutions of national and global problems.
*d)* passing resolutions of national and global problems
According to the _____ theory, business power is counterbalanced, restricted, controlled, and subject to defeat. *a)* dominance *b)* state autonomy *c)* elite *d)* pluralist
*d)* pluralist
A discrete source of discharge such as a factory, mine, ship, or pipeline is known as a(n): *a)* area source. *b)* line source. *c)* volume source. *d)* point source.
*d)* point source
_____ is the inherent authority of the state governments to regulate economic and social relationships for the welfare of the citizens. *a)* Prohibitionism *b)* Martial law *c)* Eminent domain *d)* Police power
*d)* police power
All of the following are a part of global production EXCEPT: *a)* research. *b)* distribution. *c)* logistics. *d)* portfolio investment.
*d)* portfolio investment.
The _____ principle holds that when industrial activity poses a risk, even if the threat is as yet poorly understood, prudence calls for restraint. *a)* proactionary *b)* postcautionary *c)* maximin *d)* precautionary
*d)* precautionary
One of the dangerous indoor air pollutants is ____, an inert, colorless, odorless, radioactive gas found in soil and rock formations. *a)* zone *b)* chlorofluorocarbon *c)* methane *d)* radon
*d)* radon
These cannot be sold until certain conditions are met, most often the lapse of a time period or meeting a performance goal: *a)* Performance shares *b)* Perquisites *c)* Stock options *d)* Restricted stock
*d)* restricted stock
An ethical principle that requires punishment to be evenhanded and proportionate to transgressions is: *a)* compensatory justice. *b)* distributive justice. *c)* restorative justice. *d)* retributive justice.
*d)* retributive justice
A manager may comply with both the practical imperative and the Golden Rule by asking if she would change places with the person affected by the contemplated action. This is known as the: *a)* press test. *b)* universalizability test. *c)* others test. *d)* reversibility test.
*d)* reversibility test
The process of deciding which regulatory action to take regarding specific risks is called: *a)* risk assessment. *b)* contingent valuation. *c)* cost-benefit analysis. *d)* risk management.
*d)* risk management
The _____ wave of federal workplace regulation moved federal law into the areas of protection of civil rights. *a)* third *b)* fourth *c)* first *d)* second
*d)* second
A company that uses business necessity as a justification must: *a)* have programs to recruit from diverse groups and promote tolerance. *b)* implement affirmative action. *c)* practice systematic discrimination. *d)* show how the practice in question is job-related and essential.
*d)* show how the practice in question is job-related and essential
In return for converting resources efficiently into needed goods and services, society gives corporations the authority to take necessary actions and permits a profit. This agreement derives from: *a)* natural law. *b)* positive law. *c)* libertarianism. *d)* social contract.
*d)* social contract
At most companies CSR is still ___, and largely ___, to core business strategies. *a)* essential; fundamental *b)* circumstantial; intentional *c)* incidental; supplemental *d)* supplemental; incidental
*d)* supplemental; incidental
At the _____ level of economic power, the operation of a corporation affects its stakeholders. *a)* deep *b)* profound *c)* multilayered *d)* surface
*d)* surface
Social globalization is based on: *a)* specialization and international exchange. *b)* trade and investment flows and restrictions. *c)* measures of political cooperation between countries. *d)* the flow of ideas, images, and information.
*d)* the flow of ideas, images, and information .
Critics of consumerism believe that: *a)* people are judged for their interior qualities rather than their external possessions. *b)* consumption for emotional reasons encourages productive uses of money. *c)* consumption is compatible with sustainability. *d)* things are judged for their market value rather than their intrinsic value.
*d)* things are judged for their market value rather than their intrinsic value
A _____ is a group representing the interests of an industry or industry segment. *a)* business roundtable *b)* peak association *c)* business alliance *d)* trade association
*d)* trade association
A _____ is an agent of a company whose corporate role puts him/her in a position of power over the fate of not just stockholders, but also of others such as customers, employees, and communities. *a)* guarantor *b)* permittee *c)* beneficiary *d)* trustee
*d)* trustee
Binh is writing a message to a client to tell him that if he does not bring his account current, she will be forced to end their working relationship. She knows he will not respond well to this message. What should she do? *a)* use blunt language to immediately identify the problem *b)* end her message by pointing out how bad the situation is *c)* use the direct organizational plan *d)* use the indirect organizational plan *e)* begin her message by accusing him
*d)* use the indirect organizational plan
According to a long-range 2050 projection of the American labor force: *a)* the largest increase will be in the percentage of Asians. *b)* the Hispanic growth rate will be slower than Asians. *c)* the percentage of women in the labor force will increase by 5.5 percentage point. *d)* whites will decline as a percentage of the labor force.
*d)* whites will decline as a percentage of the labor force
Which of the following guidelines should be followed when writing order acknowledgement messages? *a)* Avoid wasting time in building goodwill and stick to the main point. *b)* Refrain from mentioning a delay if it is due to unexpected reasons. *c)* Begin the message with bad news, if there is any. *d)* Be direct in telling the customer about any additional information they need to provide. *e)* Include information about new products, services, or opportunities for the reader.
*e)* Include information about new products, services, or opportunities for the reader.
Which of the following sentences is most likely to build goodwill in a routine inquiry message? *a)* A prompt return of the signed paperwork will be highly appreciated. *b)* Please return the signed paperwork at your convenience. *c)* Thanks in advance for returning the signed paperwork as soon as possible. *d)* Hoping to hear from you soon. *e)* Please sign and return the paperwork by October 5 so that we may keep to the proposed schedule.
*e)* Please sign and return the paperwork by October 5 so that we may keep to the proposed schedule.
Bettina is a property investment manager who wants to write to a client telling him that the new sprinkler system installed at his property has already reduced its water bill by hundreds of dollars over last year. Which of the following guidelines should Bettina follow when writing this message? *a)* She should write the message using the indirect approach of organizing information. *b)* She should present the objective or key point of the message at the end. *c)* She should explain the orienting material in detail and keep the main objective brief. *d)* She should end with a general closing, such as 'If you need further information, just ask.' *e)* She should include all necessary explanations in the body of the message.
*e)* She should include all necessary explanations in the body of the message.
Which of the following statements about good cross-cultural communication skills is not true? *a)* They can help you be a more effective employee. *b)* They make it possible for your company to hire a wider variety of good people. *c)* They can help you persuasively explain to foreign customers how your company can meet their needs. *d)* They increase your ability to understand the needs of customers from other countries. *e)* They eliminate the chance that there will be culture-related misunderstanding.
*e)* They eliminate the chance that there will be culture-related misunderstanding.
Which of the following concluding sentences is most likely to build goodwill in a routine inquiry message? *a)* We would appreciate an early response. *b)* Please return the completed project reports at your convenience. *c)* We know that you will be kind enough to help us. Thank you in advance. *d)* Hoping to hear from you ASAP. *e)* Your prompt reply to our proposal by August 31 will allow us to start our work on time.
*e)* Your prompt reply to our proposal by August 31 will allow us to start our work on time.
Managerial capitalism
A market economy in which the dominant businesses are large firms run by salaried managers, not smaller firms run by owner-entrepreneurs
Gini Index
A statistical measure of inequality in which *zero is perfect equality* (everyone has the same amount of wealth and *100 is absolute inequality* (a single person has all wealth) According to the Gini Index, the growing gap between the peoples of rich and poor countries is the cause of most of the rise in world income inequality.
Marxism
An ideology holding that workers should revolt against property owning capitalists who exploit them, replacing economic and political domination with more equal and democratic socialist institutions
*T/F* According to sociologist C. Wright Mills, the American society was a pyramid of power and status where a group of elites carried out the lieutenant's policies.
False
*T/F* People in the United States tend to be monochronic, meaning they view time in a relaxed way.
False
*T or F:* The countervailing forces model states that society is governed primarily by economic forces.
False
*T or F:* The employees of a business are a part of its external environment.
False
*T or F:* The stakeholder model states that the immediate priority of a corporation is to benefit its investors.
False
*T/F* "Competitive advantage of nations" is a phrase coined by Joseph Stiglitz, identifying a nation as having a cluster of similar producers which gives the nation a special advantage over other countries.
False
*T/F* A company's charitable contributions are not tax-deductible.
False
*T/F* A corporate agency is a regulatory agency in the executive branch run by a single administrator.
False
*T/F* A dose-response assessment is a qualitative estimate of how a toxic a substance is to humans or animals at increasing levels of exposure.
False
*T/F* According to the Committee for Economic Development, the intermediate circle of societal expectations outlines the newly emerging responsibilities that business should assume to improve the social environment, even if they are not directly related to specific business processes.
False
*T/F* According to the Dodd-Frank Act, at least once every three years companies have to submit their executive compensation packages to a stockholder vote, which is binding.
False
*T/F* According to the Lobbying Disclosure Act, individuals and corporations engaged in lobbying have to disclose their political contributions to candidates, parties, and committees four times a year.
False
*T/F* According to the doctrine of neo-Darwinism, charity interferes with the natural evolutionary process in which society sheds its less fit to make way for the better adapted.
False
*T/F* According to the theory of moral unity, there are two different standards for ethics: one for society in general and another one for business.
False
*T/F* Acid rain is caused primarily by two air pollutants, carbon dioxide and sulfur dioxide.
False
*T/F* Activity in the environmental sphere is the primary force for change.
False
*T/F* An implied warranty is a written warranty arising out of reasonable expectations that a product will both fulfill its ordinary purpose and fulfill the particular purpose of the buyer.
False
*T/F* Any large multinational corporation will follow only a single code.
False
*T/F* Aristotle argued that the end justified the means.
False
*T/F* As MNCs moved into the fifth tier of internationalization, their strategic thinking was more influenced by national boundaries.
False
*T/F* As originally enacted, Title VII required employers to redress racially imbalanced workforces or change established seniority systems.
False
*T/F* At most companies CSR is still incidental, and rarely supplemental, to core business strategies.
False
*T/F* Back translating involves translating a sentence beginning with the last word and ending with the first word in order to ensure a literal translation.
False
*T/F* Backdating is granting options shortly before good news causes a share price rise.
False
*T/F* Because they spend a lot of time explaining background information, people from high-context cultures often seem evasive and indecisive to people from low-context cultures.
False
*T/F* Bluewashing is a report from a corporation about its actions in support of the 10 Global Compact principles.
False
*T/F* Checkbook philanthropy is an active approach to philanthropy.
False
*T/F* Civil regulation has fully compensated for lack of binding global regulation.
False
*T/F* Command-and-control regulation give polluters financial motives to control pollution while also giving them flexibility in how reductions are achieved.
False
*T/F* Compensatory justice requires inequitable compensation to victims.
False
*T/F* Constitutional support has no role in encouraging pluralism.
False
*T/F* Contingent valuation is a method for assigning a price to ecological goods or services that are traded in markets.
False
*T/F* Cross-cultural business communication skills are only necessary for employees of companies that do business internationally.
False
*T/F* Demographic factors explain a lot about what individual qualities are associated with ethical behavior.
False
*T/F* Different countries have the same ethical values.
False
*T/F* Directors who are employees of the company are called independent directors.
False
*T/F* During the 1960s and 1970s, national politics became dominated by a conservative agenda.
False
*T/F* Franklin D. Roosevelt introduced the Fair Deal, a series of proposed actions in the fields of economic development and social welfare.
False
*T/F* Measuring the benefits of federal regulation is easier than calculating the costs of these regulations.
False
*T/F* Messages that contain good news should be written in the indirect order.
False
*T/F* Most companies begin with an early founding impulse for truth, justice, and the stakeholder way.
False
*T/F* Much New Deal legislation was profoundly unequal and uncompassionate and reasserted the tradition of industrial idealism.
False
*T/F* Nonwage costs including payments for social security, health insurance, and payroll taxes that employers must pay to cover disability, unemployment, and similar benefits are known as externalities.
False
*T/F* Norms of compensatory justice require that fair criteria be used to assign benefits and burdens.
False
*T/F* One basic action that multinational corporations should take to fight corruption is to use face-to-face payments in place of electronic transfers.
False
*T/F* Only developed countries have been receptive to free market ideas.
False
*T/F* Our dominant culture has little impact on who we are and how we think.
False
*T/F* Ozone-depleting gases such as chlorofluorocarbons are tiny, tough molecules that defy natural breakdown processes.
False
*T or F:* The dominance model represents business primarily based on the economic forces that affect it.
False.* The dominance model states that business corporations, the government, and a powerful elite control a system that enriches the few at the expense of the many The *market capitalism model* represents business primarily based on the economic forces that affect it.
*T/F* A coalition refers to business interests—including corporations, trade associations, and peak associations—united to pursue a political goal.
True
*T/F* A cost-benefit analysis forces methodical consideration of each impact of a policy on social welfare.
True
*T/F* A court awards punitive damages to a plaintiff only if malicious and willful misconduct by a company was established.
True
*T/F* A warranty is a contract in which the seller guarantees the nature of the product.
True
*T/F* A word in one language may or may not have a corresponding word in another language.
True
*T/F* According to Herbert Spencer, charity is right only when it raises the character and superiority of the giver.
True
*T/F* According to critics of consumerism, it makes people judge other people for their external possessions rather than their interior qualities.
True
*T/F* According to the dominance theory, business abuses the power its size and wealth confer in a number of ways.
True
*T/F* According to the radical Progressives, corporate social responsibility is an insufficient doctrine.
True
The _____ model is intended to revitalize capitalism with a new conceptualization of how the corporation should work. This theory rejects the shareholder-centered view of the firm.
Stakeholder
*T/F* According to the theory of land ethic, humans are part of an ethical community that includes not only other human beings but all elements of the natural environment.
True
*T/F* Affirmative action affronts the ideal of equality of opportunity by substituting equality of result.
True
*T/F* After 1974, subcommittees could hold hearings on any subject they wished.
True
*T/F* Agreements reached under GATT were incorporated in the WTO.
True
*T or F:* A business uses society's resources to create new wealth.
True
What are *(4)* requirements for industrial growth?
o Sufficiency of capital, labor, natural resources and fuels o Adequate transportation o Strong markets o Ideas and institutions that support the productive blend of all the above ingredients
