Ethics Chapter 3-5 Quiz

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. (T/F)

True

Developing ethical issue awareness is the first step toward understanding business ethics. (T/F)

True

In a dilemma all of the alternatives have negative consequences, so the less harmful choice is made. (T/F)

True

The opportunities that employees have for unethical behavior in an organization can be nearly eliminated through formal codes, policies, and rules that are adequately enforced by management. (T/F)

True

The Sarbanes-Oxley Act (SOX) _____. a. 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 b. does not provide protection for "whistle-blowing" employees c. does not impose additional requirements on executives 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. is the same as the Public Company Accounting Oversight Board

a. 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

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

a. 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. conflict of interest b. corporate intelligence c. facilitation payment d. ethical dilemma e. discrimination situation

a. conflict of interest

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

a. government agency

Individual differences in relation to a generalized belief about how one is affected by internal versus external events or reinforcements is known as ______. a. locus of control b. external control c. moral intensity d. morality beliefs e. internal control

a. locus of control

An ethical issue is a problem, situation, or opportunity a. requiring an individual, group, or organization to choose among several actions that must be evaluated as right or wrong, ethical or unethical. b. requiring society as a whole to choose among several actions that must be evaluated as right or wrong. c. requiring an individual, group, or organization to choose between harming consumers or the environment and earning more profits. d. that has no correct answer. e. that harms the environment.

a. requiring an individual, group, or organization to choose among several actions that must be evaluated as right or wrong, ethical or unethical.

Which of the following statements best describes an opportunity? a. the conditions in an organization that limit or permit ethical or unethical behavior b. a corporate culture c. organizational factors d. how easy it is to pilfer office supplies from one's workplace e. a reflection of whether the firm has an ethical conscience

a. the conditions in an organization that limit or permit ethical or unethical behavior

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

a. union affiliation

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

b. Puffery

Which statement best describes ethical issue intensity? a. The perceived value of an ethical issue to the society. b. The perceived relevance or importance of an ethical issue to the individual, work group, and/or organization c. The perceived relevance or importance of an ethical issue to the local community. d. A set of values, beliefs, goals, norms, and ways to solve problems that members of an organization share. e. The perceived importance of an ethical issue to the government.

b. The perceived relevance or importance of an ethical issue to the individual, work group, and/or organization

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. facilitation payments b. affirmative action programs c. optimizations d. dual relationships e. employment quotas

b. affirmative action programs

A secret agreement between two or more parties for a fraudulent, illegal, or deceitful purpose is known as a. insider trading. b. collusion. c. optimization. d. a dilemma. e. a conflict of interest.

b. collusion

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

b. equality, reciprocity, and optimization

According to researchers, normative values largely originate from all of the following EXCEPT ______. a. government b. the media c. friends d. family e. religion

b. the media

A corporate culture can be defined as ______. a. the interpersonal relationships in the organization b. a set of rules that some employees agree to obey c. a set of values, beliefs, goals, norms, and ways to solve problems that employees of an organization share d. the perceived importance of an ethical issue to the government e. the working environment in the executive suite

c. a set of values, beliefs, goals, norms, and ways to solve problems that employees of an organization share

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

c. corporate accounting practices

Which of the following is NOT a factor in the ethical decision-making model? a. opportunity b. organizational factors c. employee benefits packages d. ethical issue intensity e. individual factors

c. employee benefits packages

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

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

The ability to perceive whether a situation or decision has an ethical dimension is defined as ______. a. ethical issue intensity b. business issue awareness c. ethical awareness d. moral awareness e. moral issue intensity

c. ethical awareness

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

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

Elena, an employee at ABC Marketing, has observed misconduct at work and wonders if she should report it. In the end, she decides not to do so because of the possible repercussions at work. Which of the following has determined the Elena's action? a. control issues b. opportunity c. organization factors d. corporate culture e. individual factors

c. organization factors

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

c. related to lying by commission

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

e. 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 Public Accounting Oversight Board b. The Financial Stability Oversight Council c. The Office of Whistle-Blower Protection d. The Consumer Financial Protection Bureau e. The Office of Financial Research

e. The Office of Financial Research

Ethical ______ is the ability to perceive whether a situation or decision has an ethical dimension. a. personality b. intensity c. morality d. education e. Awareness

e. awareness

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

e. bribery

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. fraud b. conflict of interest c. crisis d. indictment e. ethical issue

e. ethical issue

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. lawmakers b. experts c. secondary stakeholders d. financial gurus e. gatekeepers

e. gatekeepers

Active bribery is an offense committed by the official who receives the bribe. (T/F)

False

Applying a personal moral philosophy is the first step in the ethical decision-making process. (T/F)

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. (T/F)

False

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

a. Integrity

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

a. It prohibits organizations from holding monopolies in their industries.

_____ involves the conditions for encouraging or limiting ethical behavior in an organization through rewards for ethical behavior or failing to prohibit unethical behavior. a. Opportunity b. Locus of Control c. Regulation d. Punishment e. Governance

a. Opportunity

Rawls used what he called the veil of ignorance which led him to develop ______. a. the difference principle which states that each person has basic rights that are compatible to the basic liberties of others b. the Constitution principle c. the difference principle in that economic and social equalities (or inequalities) should be arranged to provide the most benefit to the least-advantaged members of society d. five main principles of justice e. the equality principle in that economic and social equalities (or inequalities) should be arranged to provide the most benefit to the least-advantaged members of society

c. the difference principle in that economic and social equalities (or inequalities) should be arranged to provide the most benefit to the least-advantaged members of society

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

c. voluntary responsibilities

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

c. working more hours than reported

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

d. Cause-related marketing

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

d. Common Law

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

d. Criminal law

The relevance or importance of an ethical issue in the eyes of the individual, work group, and/or organization is known as ______. a. obedience to authority b. moral intensity c. opportunity d. ethical issue intensity e. locus of control

d. ethical issue intensity

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

d. facilitation

The Dodd-Frank Wall Street Reform Act _____. a. 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 b. 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 c. created only one financial agency (The Financial Stability Oversight Council). d. 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 e. created only one financial agency (The Financial Consumer Protection Agency)

d. 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