Business Ethics

What type of fraud involves Intentional deception in record keeping of money earned by a recording artist, record label, or music publisher?

Accounting fraud

What is a primary reason why some small businesses resist the opening of large chain retailers like Walmart or Home Depot?

Because the large size creates economies of scale in which it is hard to compete.

If consumers are sympathetic to a cause, and a brand and cause are seen as a good fit, then Cause Related Marketing can affect consumer

Buying patterns

By prohibiting accounting firms from providing both account auditing and financial consulting or investing services to the same corporate clients without permission, the Sarbanes-Oxley Act is attempting to eliminate

Conflicts of interest

Associated with Intellectual Property when, without permission, using another company's photographs and drawings on your company website to draw attention to your product or services.

Copyright Infringement

Which of the following is NOT a provision of the Dodd-Frank Wall Street Reform and consumer protection act

Creates a mortgage bureau to pay the bills of high-income consumers.

Which of the following is NOT a provision of the Sarbanes-Oxley Act

Developed the Consumer Financial Protection Bureau

This law was called "a sweeping overhaul of the financial regulatory system on a scale not seen since the reforms that followed the Great Depression."

Dodd-Frank Wall Street Reform and Consumer Protection Act

_____ are used to obtain or retain business and are not generally considered illegal in the U.S.

Facilitation or Advance payments to corporate accounts

This type of behavior is associated with a person who is crafty or understands right/wrong behavior hut uses tricks to obtain an unfair advantage.

Guile

What happens when society deems a particular business action as wrong or unethical?

Legislation usually follows.

Mr. Smith told his client, Mr. Jabar, who was not an audio tech expert, that the new speaker electronic and software systems were much better than his existing ones. To convince Mr. Jabar, Mr. Smith used a great deal of language about frequencies, amplitudes, ohms, and other technical language that his client did not really understand. Mr. Smith did this intentionally to confuse Mr. Jabar, This is an example of

Noise

When a restaurant claims that it sells the world's tastiest and smoothest cup of coffee, it is more likely to be accused of

Puffery

Those who have any interest in some aspect of a firm's products, operations, markets, industry, and outcomes, are known as:

Stakeholders

This entity regulates tobacco, dietary supplements, vaccines, veterinary drugs, medical devices, cosmetics, products that give off radiation, and biological products:

The food and drug administration

Donation of computer equipment to schools by Toshiba would be associated with this type of responsibility.

Voluntary

More than a compliance program, business ethics is becoming:

a management issue to achieve competitive advantage.

Conflicts of interest exist when employees must choose whether to

advance their own personal interests instead of their associated organization.

Laws and regulations change over time; however, in the United States the thrust of most business legislation can be summed up as

any practice is permitted that does not substantially reduce competition and harm consumers or society.

The Foreign Corrupt Practices Act outlawed

bribery of officials in other countries.

A secret agreement between two or more parties for a fraudulent, illegal, or deceitful purpose is known as:

collusion

The______ of ethics involves integrating and accepting values, norms, and artifacts in organizations, industries, and society.

institutionalization

Investors are concerned about business ethics because they know that misconduct can:

lower stock value and prices.

Title VIl of the Civil Rights Act of 1964;

prohibits employment discrimination based on race, color, religion, sex and national origin

Making use of this business model, a firm recognizes other stakeholders beyond investors employees, and suppliers, and explicitly acknowledges the two-way dialog that exists between a firm's internal and extemal environments.

stakeholder interaction model

A company can be sued for discrimination if it

uses an applicant's race or religion as a hiring or firing criterion.