BA 3308 - Test 1 - Quiz Questions

Which of the following involve efforts to recruit, hire, train, and promote qualified individuals from groups that have been discriminated against into employment positions? a. dual relationships b. employment quotas c. affirmative action programs d. facilitation payments e. optimizations

Affirmative action programs

________________ ties an organization's products directly to a social concern through a marketing program. a. Strategic marketing b. Business ethics c. Cause-related marketing d. Social marketing e. Strategic philanthropy

Cause-related marketing

Which of the following is derived from precedents established by judges? a. Civil Law b. Constitutional Law c. Statutory Law d. Administrative Law e. Common Law

Common Law

_____ impose(s) fines or imprisonment as punishment for breaking the law. a. The honor system b. Civil law c. Criminal law d. International guidelines e. Voluntary compliance

Criminal Law

Which approach to stakeholder theory focuses on the actual behavior of the firm and usually addresses how decisions and strategies are made for stakeholder relationships. a. Strategic decision making approach b. Descriptive approach c. Instrumental approach d. Normative approach e. Control approach

Descriptive approach

Active bribery is an offense committed by the official who receives the bribe. a. True b. False

False

Fortunately, social responsibility and ethics are completely interchangeable terms. a. True b. False

False

The focus of core practices is on developing an individual's morals, rather than on structurally sound organizational practices and integrity for financial and nonfinancial performance measures. a. True b. False

False

Which of the following is true of the Sherman Antitrust Act? a. It prohibits unfair and deceptive acts and practices, regardless of whether competition is impaired. b. It prohibits organizations from holding monopolies in their industries. c. It prohibits the use of price maintenance agreements among manufacturers and in interstate commerce. d. It inhibits fair competition. e. It has refined copyright laws to protect digital versions of copy-righted materials, including music and movies.

It prohibits organizations from holding monopolies in their industries.

_____ is exaggerated advertising, blustering, and boasting upon which no reasonable buyer would rely. a. Dishonesty b. Fraud c. Puffery d. Lying e. Implied Falsity

Puffery

The two-way relationship between a firm and its stakeholders is conceptualized by the _____. a. measures of corporate impacts table b. corporate governance model c. stockholder-focus approach d. stakeholder orientation model e. stakeholder interaction model

Stakeholder interaction model*

_____ are groups or individuals who have a claim in some aspect of a company's products, operations, markets, industry, and outcomes. a. Gatekeepers b. Investors c. Stakeholders d. Employees e. Customers

Stakeholders

The Act/Agency that makes regular surprise inspections to ensure businesses maintain safe working environments is called the _____. a. Immigration Reform and Control Office b. The Occupational Safety and Health Administration c. Equal Safety Act d. ICE Agency e. Civil Rights for Employees Act

The Occupational Safety and Health Administration

Which of the following is an office, created by the Dodd-Frank Wall Street Reform and Consumer Protection Act, which is charged with creating a better system for analyzing the financial industry? a. The Consumer Financial Protection Bureau b. The Office of Financial Research c. The Financial Stability Oversight Council d. The Public Accounting Oversight Board e. The Office of Whistle-Blower Protection

The Office of Financial Research

Congress passed the FSGO in 1991 to create an incentive for organizations to develop and implement programs designed to foster ethical and legal compliance. These guidelines, developed by the U.S. Sentencing Commission, apply to all felonies and class A misdemeanors committed by employees in association with their work. a. True b. False

True

In a dilemma all of the alternatives have negative consequences, so the less harmful choice is made. a. True b. False

True

The concept that refers to how closely workplace decisions align with a firm's stated strategic direction and its compliance with ethical and legal considerations is defined as _____. a. a duty of loyalty b. control c. accountability d. oversight e. a duty of oversight

accountability

Many studies have found a positive relationship between which of the following? a. high levels of government regulation and cultural values b. high cultural values and low industry competition c. an ethical culture and good business performance d. unmotivated employees and good business performance e. apathetic boards of directors and an ethical culture

an ethical culture and good business performance

The concept of board members being linked to more than one company is known as _____. a. an interlocking directorate b. a board member compensation problem c. the stakeholder concept d. the stakeholder model of corporate governance e. the shareholder concept

an interlocking directorate

The Sarbanes-Oxley Act (SOX) _____. a. does not provide protection for "whistle-blowing" employees b. is the same as the Public Company Accounting Oversight Board c. attempts to eliminate conflicts of interest by prohibiting accounting firms from providing both auditing and consulting services to the same client companies without special permission from the client firm's audit committee d. did not modify the attorney-client relationship in that it does not require lawyers to report wrongdoing to top managers and/or the board of directors e. does not impose additional requirements on executives

attempts to eliminate conflicts of interest by prohibiting accounting firms from providing both auditing and consulting services to the same client companies without special permission from the client firm's audit committee

The Dodd-Frank Wall Street Reform Act _____. a. created only one financial agency (The Financial Stability Oversight Council). b. seeks to improve financial regulation, increase oversight of the industry, and prevent the types of risk-taking, deceptive practices, and lack of oversight that led to the 2008-2009 financial crisis c. created only one financial agency (The Financial Consumer Protection Agency) d. contains 10 provisions that include increasing the accountability and transparency of financial institutions, creating a bureau to educate consumers in financial literacy and protect them from deceptive financial practices, implementing additional incentives for whistle-blowers, increasing oversight of the financial industry, and regulating the use of complex derivatives e. contains five provisions that include increasing the accountability and transparency of financial institutions, creating a bureau to educate consumers in financial literacy and protect them from deceptive financial practices, implementing additional incentives for whistle-blowers, increasing oversight of the financial industry, and regulating the use of complex derivatives

b. seeks to improve financial regulation, increase oversight of the industry, and prevent the types of risk-taking, deceptive practices, and lack of oversight that led to the 2008-2009 financial crisis

The practice of offering something in order to gain an illicit advantage is _____. a. omission lying b. intimidating behavior c. a conflict of interest d. collusion e. bribery

bribery

The term that comprises organizational principles, values, and norms that may originate from individuals, organizational statements, or from the legal system that primarily guide individual and group behavior in business is defined as _____. a. morals b. principles c. philosophy d. business ethics e. values

business ethics

Abusive or intimidating behavior _____. a. is a problem but is clearly defined by the legal system b. does not relate to ignoring someone c. does not need "intent" as a consideration d. relates only to profanity e. can differ from person to person

can differ from person to person

A(n) _____ exists when an individual must choose whether to advance his or her own interests, those of the organization, or those of some other group. a. facilitation payment b. corporate intelligence c. conflict of interest d. discrimination situation e. ethical dilemma

conflict of interest

The Sarbanes-Oxley Act was passed to provide oversight of _____. a. corporate environmental practices b. price discrimination practices c. corporate accounting practices d. federal sentencing guidelines' compliance requirements e. nonprofit organizations' governance practices

corporate accounting practices

An organization that has a strong ethical environment usually has a core value of placing _____ interests first. a. stockholders' b. customers' c. competitors' d. government's e. management's

customers'

Directors share a ______, which means all their decisions should be in the best interests of the corporation and its stakeholders. a. duty of control b. duty of loyalty c. duty of oversight d. duty of accountability e. duty of conflict

duty of loyalty

The four levels of social responsibility are _____. a. economic, legal, political, and social b. economic, legal, ethical, and philanthropic c. political, economic, legal, and ethical d. ethical, philanthropic, social, and religious e. economic, legal, philanthropic, and social

economic, legal, ethical, and philanthropic

Which of the following is NOT a secondary stakeholder group? a. trade associations b. magazines c. special interest groups d. television news reporters e. employees

employees

What does the Federal Sentencing Guidelines for Organizations (FSGO) focus on? a. improving the quality of life for employees and communities b. background checks on employees and other agents c. penalties for companies convicted of restraint of trade charges d. encouraging ethical and legal compliance by reducing penalties for firms with effective compliance programs e. schemes by top management to hide losses and other performance problems

encouraging ethical and legal compliance by reducing penalties for firms with effective compliance programs

The three fundamental elements that motivate people to be fair are _____. a. honesty, integrity, and morality. b. equality, reciprocity, and harmony. c. truthfulness, fidelity, and harmony. d. equality, reciprocity, and optimization. e. charity, fidelity, and harmony.

equality, reciprocity, and optimization.

A problem, situation, or opportunity requiring an individual, group, or organization to choose among several actions that must be evaluated as right or wrong is called a(n) _____. a. ethical issue b. indictment c. conflict of interest d. fraud e. crisis

ethical issue

A payment made to obtain or retain business and is not considered a bribe within the United States is defined as _____. a. illegal under the Dodd-Frank Act b. active bribery c. passive bribery d. illegal under the Foreign Corrupt Practices Act e. facilitation

facilitation

The Sarbanes-Oxley Act made it illegal for U.S. businesses to issue bribes to foreign government officials. a. True b. False

false

Corporate governance is defined as _____. a. the members of the Board of Directors b. classic economic precepts, including the goal of maximizing wealth c. the management style of the firm's CEO d. the memos sent out by upper management on appropriate conduct e. formal systems of accountability, oversight, and control

formal systems of accountability, oversight, and control

The Consumers' Bill of Rights decreed by President John F. Kennedy specified all of the following EXCEPT the right to _____. a. safety b. to choose c. be informed d. be heard e. freedom

freedom

Accountants, lawyers, financial rating agencies, financial reporting services and risk assessors of financial products are all examples of _____, who must trust and be trusted by stakeholders to make business work. a. secondary stakeholders b. experts c. lawmakers d. financial gurus e. gatekeepers

gatekeepers

The _____ is a set of 10 principles concerning human rights, labor, the environment, and anti-corruption. This document seeks to create openness and alignment among business, government, society, labor, and the United Nations. a. NAFTA b. MERCOSUR c. CERES Principals d. Global Compact

global compact

All of the following generate discussion about the ethical nature of a decision EXCEPT _____. a. the mass media b. special interest groups c. individuals in the business d. government agency e. blogs and podcasts

government agency

The Consumer Financial Protection Bureau (CFPB) _____. a. has no supervisory power over credit markets b. has no responsibility to curtail unfair lending and credit card practices c. has no responsibility to check the safety of financial products before their launch into the market d. has no authority to monitor lenders e. has supervisory power over credit markets as well as the authority to monitor lenders

has supervisory power over credit markets as well as the authority to monitor lenders

_______ is one of the most important and oft-cited elements of virtue, and refers to being whole, sound, and in an unimpaired condition. a. Reciprocity b. Integrity c. Fairness d. Honesty e. Values

integrity

The shareholder model of corporate governance _____. a. considers stakeholder welfare in tandem with corporate needs and interests b. is the same as the stakeholder model c. is founded on the goal of maximizing wealth for investors and owners d. adopts a broader view of the purpose of business than the stakeholder model e. is a less restrictive than the stakeholder orientation

is founded on the goal of maximizing wealth for investors and owners

Before anything else, businesses must _____ to survive. a. be popular b. compensate their employees well c. make a profit d. sell internationally e. have a great reputation

make a profit

The term ethical culture is associated with all of the following except _____. a. the component of corporate culture that captures the values and norms an organization defines and is compared to by its industry as appropriate conduct b. acceptable behavior as defined by the company and industry c. culture that creates shared values and support for ethical decisions and is driven by the ethical leadership of top management d. maximizing profits and placing shareholder's first e. positively related to workplace confrontation over ethics issues, reports to management of observed misconduct, and the presence of ethics hotlines

maximizing profits and placing shareholder's first

The concept in the chapter that is defined as a situation where the person is faced with multiple choices, all of which are undesirable as defined by the person is called a _____. a. philosophical analysis b. moral dilemma c. value crisis d. principle decision e. value turpitude

moral dilemma

What concept refers to a person's personal philosophy about what is right or wrong? a. morals b. philosophy c. business ethics d. values e. principles

morals

According to the text, business ethics comprises organizational principles, values, and __________ that may originate from individuals, organizational statements, or from the legal system. a. directions b. norms c. laws d. meanings e. morals

norms

Some examples of what concept can include human rights, freedom of speech, and the fundamentals of justice? a. philosophy b. principles c. values d. business ethics e. morals

principles

Creating a perception or belief by words that intentionally deceives someone is _____. a. related to lying by omission b. related to what is defined as a "white" lie c. related to "noise" d. related to lying by commission e. related to context and intent

related to lying by commission

Groups that influence and/or are affected by a company and that neither engage in economic exchanges with the firm nor are fundamental to its daily survival are collectively called _____. a. secondary stakeholders b. significant others c. market constituents d. primary stakeholders e. community organizations

secondary stakeholders

An organization's obligation to maximize its positive impact on stakeholders and to minimize its negative impact refers to its _____. a. consumerism b. moral justice c. ethical dilemma d. social responsibility e. regulation mandate

social responsibility

Which of the following is NOT a primary stakeholder group? a. employees b. the Media c. customers d. shareholders e. investors

the Media

In the stakeholder interaction model, _____. a. it recognizes other stakeholders and but does not explicitly acknowledge that dialogue must exist between the firm's internal and external environments b. there are reciprocal relationships between the firm and its stakeholders c. there are no reciprocal relationships between the firm and its stakeholders d. it recognizes other stakeholders, does not explicitly acknowledge that dialogue must exist, but can exist between the firm's employees and customers e. it recognizes other stakeholders and does not explicitly acknowledge that dialogue must exist between the firm's internal and external environments

there are reciprocal relationships between the firm and its stakeholders

The ethical component of a corporate culture relates to the values, beliefs, and established and enforced patterns of conduct that employees use to identify and respond to ethical issues. a. True b. False

true

The concept that centers around enduring beliefs and ideals that are socially enforced, such as teamwork, trust, and integrity is called _____. a. philosophy b. business ethics c. principles d. values e. morals

values

Which dimension of social responsibility refers to business's contributions to society? a. economic b. voluntary responsibilities c. ethical d. legal e. international

voluntary responsibilities

Which of the following is NOT one of the top types of observed misconduct? a. putting one's own interests ahead of the organization's b. abusive behavior c. working more hours than reported d. lying to employees e. Internet use abuse

working more hours than reported

Discrimination on the basis of all but which of the following is defined as harassment? a. marital status b. years of experience c. national origin d. age e. gender

years of experience