Test 4 - Business and Society

Which ethical concern surrounds China's social credit system, as described in the case?

A loss of personal privacy

What does the term stock screening refer to?

Both "investing in companies that support ESG goals" and "avoiding investments in firms that are not socially responsible" are correct.

Employees in the United States have a legal right to

Both "organize and bargain collectively" and "a safe and healthy workplace" are correct.

Institutional investors are accurately described by which statement?

Institutions invest their funds by purchasing shares of stock in corporations.

An example of "insider trading" is

a manager sharing nonpublic news about an upcoming acquisition with a friend, who traded for a profit.

What impact has OSHA had on businesses?

a significant reduction in workplace deaths

A compulsion to engage in rewarding behaviors, despite negative consequences, is called

behavioral addiction.

We are currently in which phase in the development of technology?

biotechnology

The use of biological processes in the development or manufacture of a product or in the technological solution to a problem is called

biotechnology.

Which of the following is not a potential source of personal private data?

broadcast radio

How are corporate directors typically compensated?

cash and stock

According to the new social contract

companies try to attract workers by giving them interesting and challenging work.

The place where information is stored, ideas are described, and communication takes place in and through an electronic network of linked systems is called

cyberspace.

A recent study found that companies that paid workers above-average wages saw which impact?

excellent shareholder returns

An argument in support of high executive compensation is

high salaries provide an incentive for innovation and risk-taking.

The digital divide describes the gap between those

individuals who have access to technology and those who do not.

The primary skills required in the information stage were

intellectual and electronic skills.

The "agency problem" arises when

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

The practice of using fake business emails to trick users into divulging personal data, such as usernames and passwords, is called

phishing.

One example of a self-organized consumer protection method is

posting and reading product reviews online.

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

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

A reason for institutions becoming more assertive in promoting the interests of their member investors is

protesting management performance by selling a large block of stock would reduce the value of the institution's holdings.

The "right to be heard" promises that consumers' interests will

receive full and sympathetic consideration.

A person's entitlement to protection from invasion of one's personal life is called the

right to privacy.

About what percentage of the world's population uses social media?

slightly more than half

A living wage has been defined as a wage that

supports half the basic needs of an average-size family, based on local prices.

The self-reinforcing feature of technology means that

technology acts as a multiplier to encourage its own faster development.

One of the main reasons that American executives are paid so much is because

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

A legal right of shareholders is

to vote for members of the board of directors.

Currently, about what percentage of global households have no access to the Internet?

45 percent

The role of the Food and Drug Administration includes

All of these choices are correct.

Which region of the world has the highest Internet usage?

Asia

Businesses can reduce income inequality by taking which action?

Commit to paying a living wage to all employees.

Which two U.S. government agencies sued Volkswagen over its false claims?

Federal Trade Commission and Department of Justice

Why are pay-for-performance stock option grants an incentive to improve company results?

If the company stock price increases, the executive compensation also rises.

Random drug testing of employees is accurately described by which statement?

It screens randomly selected employees at various times through the year.

In what way did the Wynn Resorts' board of directors contribute to the ongoing problem of sexual misconduct in the workplace?

Many of the board members had close personal ties with Wynn and almost always voted in his favor.

What are the benefits of sequencing the human genome?

The answers "provides early diagnosis of diseases" and "spurs new ways to prevent illnesses" are correct.

After Volkswagen admitted fraud, how did the courts protect customers affected by the scandal?

The company bought back or repaired each affected vehicle.

What is one criticism of honesty testing in the workplace?

The tests may create an opportunity to discriminate against legally protected groups.

What criteria must be met before a whistleblower goes public?

There is enough potential harm to justify the possible costs of disclosure.

Which right did shareholders exercise that may have contributed to a 10% drop in share value?

To sell their stock shares.

Which nation currently has the greatest number of Internet users?

china

The term cryptocurrency is accurately defined by which statement?

A digital currency that operates outside the banking system using encrypted technology.

Which of the following is an example of China's attempts to suppress free speech?

A journalist who wrote about censorship and government corruption was blacklisted.

The Class Action Fairness Act of 2005 included which provision(s)?

Both "Lawyers were restricted from using local venues to try interstate cases" and "Excessive attorney compensation was limited" are correct.

Investors may receive an economic benefit from the ownership of stock by receiving

Both "dividends" and "capital gains" are correct.

The major federal consumer protection agencies are authorized by law to

Both "intervene directly into the very center of free market activities to protect consumers" and "substitute government-mandated standards for decisions made by private buyers and sellers" are correct.

The "gig" economy is accurately described by which statement(s)?

Both the answers "Many companies have become more cost-efficient" and "The generally low wages decreased in many cases" are correct.

The right to a safe and healthy workplace is accurately described by which statement?

Extensive training and strict enforcement are necessary to avoid accidents, injuries, and illness.

Besides spam filters, why has the global spam email rate declined in recent years?

Governments created strong penalties against spamming.

Which law allows individuals who sue federal contractors for fraud to receive up to 30 percent of any amount recovered by the government?

U.S. False Claims Act (as amended in 1986)

What was the primary concern of Amazon workers who wanted to unionize, as described in the case?

Unsafe working conditions

Why has union membership declined in the United States since the 1950s?

a decrease in the manufacturing sector

The phase of technology that focuses on building material goods and manual labor is

industrial.

The Occupational Safety and Health Act gives workers the right to a job

that is free from recognized hazards that are likely to cause death or serious injury.

Why do many companies favor the use of mandatory arbitration clauses?

to avoid expensive liability lawsuits against them

The leading cause of death on the job is due to

vehicle accidents.

The Sarbanes-Oxley Act makes it illegal for employers to retaliate against whistleblowers under what conditions?

when the information reported might impact the company's share value

How did the Wynn Resorts' investors seek restitution for the many years of wrongful conduct that reportedly continued at the company?

They sued the board of directors for lack of accountability.

Why were some Amazon employees against forming a union, as noted in the case?

They were impressed with the pay and benefits offered by the company.

The activism of institutional investors in other countries has been spearheaded by

U.S.-based pension and mutual funds that acquired large stakes in foreign companies.

Under U.S. laws, who has the right to hold an election to choose what union they want to represent them, if any?

most private and public workers

In the United States, the right to free speech

must be weighed against the consequences for the community.

Many rapid changes in technology over the past few decades were facilitated by

All of these choices are correct.

Some states recognize which exemption(s) to worker termination under the at-will-employment doctrine?

All of these choices are correct.

What is one major concern about allowing romance in the workplace?

An unwelcome relationship could be demanded by an employee in a position of authority.

Which new technology forms the backbone of China's social credit system, according to the case?

Facial recognition

What is one criticism against whistleblowing?

Hundreds of unsubstantiated, or false, are cases reported.

In what way did the Wynn Resorts' board of directors contribute to the ongoing problem of sexual misconduct in the workplace, as described in the case "Corporate Governance and Executive Misconduct at Wynn Resorts"?

Many of the board members were friendly with Wynn and almost always voted in his favor.

What specific claim did Volkswagen make about its diesel vehicles that constituted deceptive advertising?

TDI "clean diesel" had very low chemical emissions.

How did Amazon respond to the unionization campaign, according to the case?

The company sent text messages to employees with negative messaging about unions.

What recent U.S. government regulations were implemented to control genetically modified foods?

uniform labeling of all foods containing genetically engineered ingredients

The SEC allows social responsibility shareholder resolutions on the ballot under what condition?

when the shareholder owns a certain number of shares for a certain time period