385 Final review Qs 2

A measure of disorder of energy, indicating its unavailability for recycling for the same use, is a. entropy. b. dissolution. c. atrophy. d. declination.

a

A mixture of wet and dry deposited material from the atmosphere causing higher than normal amounts of nitric and sulfuric acids is a. acid rain. b. smog. c. ozone impact. d. waste deposits.

a

Reports indicate the international development will see increased funding even in recessions. a. True b. False

a

Enterprise rights are derived from a. employer promises. b. labor demands. c. negotiated contracts. d. the labor market.

a

Manufacturing firms have been major sources of water pollution a. True b. False

a

One approach to resolving air pollution problems, intended to reduce a particular pollutant over an entire industrial region by treating all emission sources as if they were under one bubble is called a. emissions trading. b. blanket controls. c. comprehensive emissions regulation. d. the clean air provision.

a

The Consumer Product Safety Commission is the only clearinghouse for consumers regarding unsafe products a. True b. False

a

The Sarbanes-Oxley Act makes whistle-blowing much easier. a. True b. False

a

The ethical theory based on the concept of duty that states that fmns have a responsibility to comply with the terms of the sale, inform the customer about the product, not misrepresent anything, and not coerce the customer is a. contractual theory. b. due care theory. c. social costs view. d. caveat emptor.

a

The good cause norm is the opposite of a. the employment at will doctrine. b. the reason for wrongful discharge. c. the belief that employees should be discharged only for good reasons. d. based on private property rights.

a

The top PAC contributor during 2011-2012 was: a. National Association of Realtors. b. Teamsters. c. Service Employees International Union. d. Lockheed Martin

a

The triple bottom line is a system of reporting that covers economic, social, and envirornmental performance. a. True b. False

a

Which of the following is not part of the FDA's mission? a. to help identify and develop new foods and drugs b. to promote the public health c. to protect the public health d. to help reduce the burden of regulation

a

With respect to service, consumers are concerned with which of the following? a. performance b. building time c. provider attributes d. durability

a

All of the following are reasons that government regulation of business is needed except a. to ensure that customers and employees are treated fairly. b. maintain competitive markets. c. to protect the envirornnent. d. to ensure that customers and employees are not exposed to unreasonable hazards.

b

An important criticism of total quality management is that it a. tried to do too much. b. quality means different things to different people. c. actually took focus off of the customer. d. focused too much on adherence to standards, taking the enjoyment out of work.

b

Arguments against industrial policy include all of the following except a. reduces market efficiency b. The need to rescue "sunset" industries. c. the need to promote "sunrise" industries. d. foreign industrial policy success has been variable.

b

Arguments against privatization include all of these except: a. social goals. b. service provisions. c. public backlash. d. safety concerns.

b

Because of widespread concern over water pollution, toxic chemicals are no longer dumped into U.S. lakes and rivers. a. True b. False

b

Business involvement in the community represents enlightened self-interest. a. True b. False

b

Business support for the arts has been increasing. a. True b. False

b

Businesses are paying close attention to all of the following green groups except a. consumers. b. legislators. c. employees. d. investors.

b

Market share liability is rarely successful in current product liability lawsuits. a. True b. False

b

Employees might consider their roles in plant closings A. to be to fight for their jobs. B. an extension of numerous employee rights issues. C. an opportunity to find better employment. D. a chance to form an employee-owned business.

b

Executive Excess reports that in 2011 the ratio of CEO pay to average workers' pay was: a. 531 to 1. b. 209 to 1. c. 1,063 to 1. d. 18 to 1.

b

Individuals are less restricted in their contributions to political candidates than are PACs a. true b. false

b

Leadership PACs are connected PACs. a. true b. false

b

Lobbying takes place at all of the following levels except a. umbrella organizations. b. PACs. c. trade associations. d. company lobbying

b

Lobbyists are affectionately known as "influence peddlers." a. true b. false

b

Lobbyists often provide all of the following services, except: a. create slick advertisements. b. conduct indirect-mail campaigns. c. provide access to lawmakers. d. draft legislation.

b

Managers have successfully lobbied Congress to make shareholder lawsuits very difficult to file. a. True b. False

b

Much of the blame for corporate scandals like Enron and WorldCom can be placed on the audit committees of the boards of directors. a. True b. False

b

Negative externalities are the additional costs incurred by business due to the outside regulations placed by goverrunent. a. True b. False

b

Regarding the independence of SuperPacs from the political candidates they support, it is most correct to say: a. they are completely independent of any political candidate. b. they coordinate with the political candidate of their choice behind closed doors. c. those who run the SuperPac know the candidate so well, they do not need to consult to coordinate efforts. d. None of these is true

b

Shareholder activism a. was started by the counter culture during the 1960s. b. has been around for more than sixty years. c. is lead by the Roman Catholic church. d. relies on large institutional investors to introduce most of the shareholder resolutions.

b

The Consumer Product Safety Commission works to reduce the risk of harm from consumer products in all of the following ways except a. banning consumer products. b. passing legislation outlawing products. c. obtaining recall of products. d. informing and educating consumers.

b

The Worker Adjustment and Retraining Notification Act (WARN) requires firms employing 100 or more workers to notify workers of a large layoff or shutdown at least ____ in advance. A. six months B. sixty days C. one year D. one month

b

The central product of the new breed of lobbyist is a. influence. b. access. c. advice. d. information

b

The debate over product liability law continues. a. True b. False

b

The dilemma of deregulation is a. to enhance competition within the industry without harming workers' status. b. to enhance competition within the industry without sacrificing applicable social regulations. c. to prevent monopolies without allowing hypercompetition. d. to provide business more freedom without completely abandoning goverrnnental authority.

b

The dilemma of regulation is the tradeoff between a. cost and efficiency. b. effective control and the burden placed on firms. c. private gain and public good. d. individualistic and collectivistic goals.

b

The focus of total quality management programs is a. quality. b. the customer. c. efficiency. d. worker satisfaction.

b

The issue at the heart of the Sarbanes-Oxley Act is protection for whistle-blowers. a. True b. False

b

The long term effects of indoor air pollution include irritation of the eyes. a. True b. False

b

The major reason that health and welfare is one of the largest categories of business giving is the huge amount donated to programs for needy children. a. True b. False

b

The monetary policy set the Federal Reserve System is completely independent of the influence of other branches of goverrnnent. a. True b. False

b

The primary focus of the Business Round table is a. free trade policies. b. opposing shareholder empowerment. c. the economic well-being of the nation. d. executive compensation

b

The relationship between government and business has become adversarial, but is improving. a. True b. False

b

The second step in managing the performance of a community action program is A. knowing the community. B. knowing the company's resources. C. selecting the resources to use. D. monitor the projects.

b

There is some early evidence that the Sarbanes-Oxley Act has made little difference in the attention fmancial executives pay to shareholder reports. a. True b. False

b

Which country releases 3.3 billion tons of carbon dioxide each year due to deforestation? a. Russia b. Indonesia c. the United States d. less developed countries

b

Which of the following is not a reason that some people want more transparency in corporate philanthropy? A. recent accounting scandals B. to close tax loopholes C. concern that some donations go to terrorist organizations D. concern that some donations are made to get around campaign finance laws

b

Which of the following is not a requirement of a due process system? a. It must follow rules and not be arbitrary. b. It must be well documented. c. It must be predictably effective. d. It must be perceived as equitable.

b

Which of the following is not an activity engaged in by the Food and Drug Administration? a. analysis b. promotion c. surveillance d. correction

b

Workers' trust in their employers is a. at an all-time high. b. a reciprocal relationship. c. based on the employee rights movement. d. higher in small companies than in large firms.

b

Business lobbyists do all of the following things for their clients except a. establish communications channels with regulatory bodies. b. protect firms against surprise legislation. c. audit the effects of passed legislation. d. help draft legislation

c

Government influences business through all of the following nonregulatory methods except a. being a major employer. b. being a standard setter. c. requiring equal employment opportunities be granted to job applicants. d. providing transfer payments.

c

Modem goals for business include all of the following except a. safe working environments. b. fair pay. c. promoting the social welfare. d. equal employment opportunities.

c

Recommendations for potential whistle-blowers include all of these except a. Identify sources of support b. Act out of public interest rather than for personal gain c. Maintain anonymity at all costs. d. Think about the outcomes

c

Requirements of a due process system include all of the following except a. institutionalization. b. ease of use. c. subject to review and appeal. d. applicable to all employees.

c

Studies offrnancial performance outcomes on political spending a. show a strong correlation between contributions to PACs, and corporate financial performance. b. show a weak correlation between contributions to PACs, and corporate financial performance. c. are inconclusive. d. apply only to political outcomes.

c

The Food and Drug Administration is involved in the regulation of a. pet food. b. weight loss programs. c. dietary supplements. d. fast foods.

c

The ethical theory based on the concept of duty that suggests that if a product causes harm, the firm should pay the costs of any injury is a. contractual theory. b. due care theory. c. social costs view. d. caveat vendor.

c

The newest type of social regulations is concerned primarily with a. envirornnental protection. b. corporate welfare. c. security. d. educational reform.

c

Which of the following is not a dimension of quality listed in the textbook? a. performance b. durability c. status d. aesthetics

c

Which of the following is not a guideline for developing a community involvement strategy? A. Employees should be involved. B. Involvement should be in areas that the company knows best. C. The company should get involved in projects that will help it make more profit. D. The best kind of support is that which helps others help themselves.

c

Which of the following is not a way in which the Consumer Product Safety Commission works to reduce the risk of harm from consumer products? a. developing voluntary standards within an industry b. issuing and enforcing mandatory standards c. lobbying Congress to pass new consumer protection laws d. conducting research on potential product hazards

c

Which of the following is not an umbrella organization? a. Chamber of Commerce b. National Association of Manufacturers c. Pharmaceutical Research and Manufacturers of America d. Business Roundtable

c

_____ was protection for federal employees who expose illegal, corrupt, or wasteful government activities. a. Employment-At-Will Doctrine b. False Claims Act c. Civil Service Reform Act d. Michigan Whistle-Blowers Protection Act

c

A strong industrial policy: a. is present in most developing countries. b. is a term heard continuously. c. is goverrnnent intervention. d. helps frrms compete in a fast-moving global economy.

d

Essential aspects of quality include which of the following? a. advertising b. color c. attributes d. durability

d

Green rankings can be misleading because: a. they focus on compliance with regulations. b. they focus on operational impacts. c. they focus on overall practices, while iguoring the finn's political advocacy activities. d. All of these are correct

d

In the Montreal Protocol of 1987, most of the nations that produced or used CFCs agreed to a. a gradual phase-out of those materials. b. limit future use ofCFCs to amounts produced in that year. c. an immediate ban on all CFCs. d. a quick phase-out of CFCs.

d

One of the strengths of Six Sigma program's has been its a. laser-like focus on worker satisfaction. b. increase in customer loyalty. c. contribution to research in production quality. d. clarity of process and the steps companies must take to adopt it.

d

One of the ways that the Chamber of Commerce has regained its power is by a. making large campaign contributions on its own behalf. b. dispensing favors to individual businesses that do not want their company name associated with lobbying efforts. c. hiring outside lobbyists to help it attract more members. d. focusing on international trade issues.

d

Participation in the formulation and execution of public policy at various levels of government is a. available only to individual citizens. b. required by the constitution. c. the definition of lobbying. d. the definition of political involvement.

d

Social regulation's focus on people encompasses their roles as all of the following except a. employees. b. consumers. c. citizens. d. business owners.

d

The Securities and Exchange Commission's Regulation FD is desigued to a. streamline the trading process. b. change stock trading prices to the decimal system. c. allow small investors to benefit from insider trading. d. limit the common practice of selective disclosure.

d

The new social contract is being driven by a. the employee rights movement. b. technology. c. deregulation. d. global competition.

d

The relationship between Congress and lobbying firms has been referred to as: a. cordial. b. friendly. c. a back door. d. a revolving door

d

Which of the following is not a concern expressed by executives about government involvement in business? a. it is difficult to determine the best way to work productively with government. b. regulators and policy makers do not understand the economics of their industry c. government blames business for society's problems d. U.S adults said government should do more

d

Which of the following is not one of the top consumer product categories most frequently associated with injuries requiring hospital treatment? a. sports and recreational activities b. horne maintenance and construction c. toys and children's products d. automobiles

d