Ethics
According to one study, approximately how many businesses run some sort of flexed schedule:
80 percent
Which of the following is not an instance of "insider trading"?
A marketing executive briefing stock analysts on the company's sales performance.
Which of the following statements is true about community relations?
About 80 percent of companies factor community involvement into their overall strategic plan.
One alternative to product liability lawsuits is called:
Alternative dispute resolution.
A goal of the consumer movement is to make consumer power:
An effective counterbalance to the rights and powers of firms that sell goods and services.
The Securities and Exchange Commission outlaws:
Any manipulative or deceptive device used to trade stocks.
Advertising that is targeted to particular customers, based on their observed online behavior, is called:
Behavioral advertising.
Which region received the most U.S. international charitable contributions in 2011?
Latin America-Caribbean.
Foreign-owned corporations use foundations:
Less frequently than U.S. firms.
Which of the following is not included among purposes for establishing community relations departments by businesses?
Manage international relations projects for economic development.
The "agency problem" arises when:
Managers act in their own interest, rather than in the interest of shareholders.
"Glass walls" refers to:
fewer opportunities to move sideways into jobs that lead to the top
Age, ethnicity, gender, mental or physical abilities, race, and sexual orientation are what dimensions of diversity?
primary
The Sarbanes-Oxley Act makes it illegal for employers to:
retaliate in anyway against whistle-blowers who report information that could have an impact on the value of a company's shares
Which of the following is not a benefit of managing diversity effectively?
these businesses get tax breaks from the federal government
Which of the following is (are) true about Employee Assistance Programs (EAPs)?
they offer counseling and follow-up to alcohol abusers
A diversity council is a group of managers and employees responsible for developing and implementing specific action plans to meet an organization's diversity goals.
true
Beginning on a major scale in the 1960s, U.S. presidents issued executive orders and Congress enacted laws intended to promote equal treatment of employees.
true
For the most part, electronic monitoring of employees is legal.
true
Which of the following departments was established in 1914 and has been given additional powers to protect consumers over the years, including in the area of online privacy?
Federal Trade Commission.
Which of the following statements is not true about stockholders?
They own equal shares of company assets.
What law requires most large employers to provide 60 days notice when laying off 500 or more workers (acronym)?
WARN
Women working outside the home rose dramatically just after:
WWII
A prime social responsibility of business is to safeguard consumers:
While continuing to supply them with goods and services they want.
Under the 1996 McGruff Act, sexual harassment is limited to overt acts of individual coworkers or supervisors.
false
In general, employee assistance programs have been very cost effective.
true
Which of the following is a key feature of effective boards of directors?
Hold regular meetings without the CEO present.
How do "glass walls" differ from "glass ceilings?"
glass walls focus on sideways promotions in the organization
Polygraph testing:
has been replaced at some level by written psychological tests
When groups of companies define industry-wide standards that they can all agree to, these are called:
industry-wide labor codes
Under U.S. laws:
most private and public workers have the right to hold an election to choose what union they want to represent them, if any
Which of the following is NOT an adjective used to describe Millenials?
pragmatic
Which of the following is an action that companies should take to manage diversity effectively?
set up a diversity council to monitor the company's goals
Approximately how many workers are murdered annually in the United States:
six hundred
Which of the following is not true about occupational segregation?
the large pay gap for Hispanic workers partly reflects their concentration in several high-paying occupations
Today the U.S. workforce is as diverse as it has ever been.
true
Under the Family Medical Leave Act, companies that employ 50 or more people must grant unpaid, job-protected leaves for up to 12 weeks to employees with serious family needs, including the birth or adoption of a baby.
true
Which organization brings together 300 nonprofit groups to espouse the consumer viewpoint?
Consumer Federation of America.
Businesses can take a number of measures to respond voluntarily to consumer demands. Which of the following is an example of such a measure?
Consumer call centers.
What is the most important social issue facing communities, according to a survey of community relations managers?
Education.
The directors of a company are a central factor in corporate governance because they:
Exercise formal legal authority over company policy.
Which of the following sectors receives the largest percentage of corporate cash and in-kind contributions?
Health and human services.
Manufacturers making false or misleading claims about a competitor's product is:
Illegal and unethical.
Which of the following is not an argument for high executive compensation?
Inflated executive pay helps U.S. firms compete with foreign rivals.
Online shoppers have always been concerned that:
Information they reveal in the course of a sales transaction might be misused.
Average corporate giving in the Unites States:
Is far below the 10 percent tax deduction now permitted. (NOT ALL THE ABOVE)
A reason for institutions becoming more assertive in promoting the interests of their member investors is:
It is difficult for institutions to sell their holdings.
Which of the following statements is true about the relationship between business and the community?
It is one of mutual interdependence.
Which of the following statements is not true about the organization Consumer Reports?
It is supported by the federal government.
As communications improve and people around the world are able to witness the horrors of natural disasters, terrorism, and war, international relief efforts by corporations are becoming:
More important.
Which of the following non-profit, locally funded and controlled organizations offer housing rehabilitation and financial services to neighborhood residents?
Neighborhood Housing Services.
Another term for corporate giving is corporate:
Philanthropy.
The mission of the Securities and Exchange Commission (SEC) is to:
Protect shareholders' rights by making sure that stock markets are run fairly.
How are directors (members of corporate boards) selected?
Shareholders elect the directors from a list of candidates.
Consumer groups have generally opposed the idea of product liability reform using which of the following arguments?
Strict liability should be retained.
During the 1930s, many workers joined unions, and the ranks of organized labor grew rapidly. This was called:
The New Deal Period
The act that requires lenders to inform borrowers of the annual rate of interest to be charged, plus related fees and services charges is called:
The Truth in Lending Act.
The term civic engagement describes:
The active involvement of businesses and individuals in improving communities.
Consumers have become more dependent on businesses for product quality because:
The complexity of products makes choices complicated for consumers.
By 2010, out of the 100 largest US companies, how many had separated the positions of CEO and board chairman?
Thirty-one.
The activism of institutional investors in other countries has been spearheaded by:
U.S.-based pension and mutual funds that in recent years acquired large stakes in foreign countries.
The right to free speech is protected in the:
US Constitution
Which law allows individuals who sue federal contractors for fraud to receive up to 30 percent of any amount recovered by the government?
US False Claims Act (as amended in 1986)
Institutional investors are sometimes referred to as:
Wall Street investors.
Which of the following government rules on equal treatment of employees does not apply to businesses?
affirmative action plans must be permanent
Which of the following is (are) true about child care programs?
all of the above
Women have entered the workforce:
all of the above
Only after which of the following conditions is (are) met, should the whistle-blower go public?
both A and B
The variation in the important human characteristics that distinguish people from one another is called:
diversity
Studies show that Union and non-union workers earn roughly the same amount of income and benefits.
false
Which of the following is (are) true about honesty tests?
it is a written psychological test trying to predict employee honesty on the job
Which of the following is not an argument favoring employee drug testing?
it is an intrusion on individual privacy
Which of the following is not true about the Equal Employment Opportunity Commission (EEOC)?
it monitors foreign governments' employment practices
If someone is entitled to be treated a certain way, this refers to a:
right
The term labor standards refers to the conditions under which a company's employees, or others in the commercial chain, work.
true
Privacy rights seek to protect the employees' private lives from:
unwarranted intrusion by the employer
How many people are employed by female headed businesses?
13 million
The Equal Employment Opportunity Commission was created in:
1964
The Employee Polygraph Protection Act became law in?
1988
What percentage of AT&T's procurement spending went to minority, women, and disabled veteran-owned businesses in 2011?
25 percent.
By 2016, the Bureau of Labor Statistics estimates that what percentage of all workers will be women?
47 percent
About what percent of incidents of sexual harassment are never reported?
65 percent
What percentage of Fortune 500 companies have diversity programs to promote sensitivity and awareness?
75 percent
In 2008 and early 2009, share values declined sharply as the global economy fell into a severe recession. This type of stock market is referred to as a:
Bear market.
Under proposals to establish uniform federal standards for determining liability:
Companies would not have to go through repeated trials on the same charges in different states.
The law requiring that toys and infant products be tested before sale is called the:
Consumer Product Safety Improvement Act.
An identifying marker placed on a user's computer hard drive during visits in order to identify the user during each subsequent visit and to build profiles of their behavior over time is called a
Cookie.
Which of the following is true about corporate boards?
Corporate boards average 12 members.
Since the mid-1950s the proportion of American workers represented by unions has:
Decreased
Corporate governance involves the exercise of control over a company's:
Entire operations.
Which of the following is not a strategy to help companies get the most benefit from their contributions?
Establish priorities even if they come into conflict with firm core values.
Which of the following is not a goal of consumer protection laws?
Facilitate consumers' getting extended credit when making purchases.
In the United States, which of the following agencies enforces the laws prohibiting deceptive advertising?
Federal Trade Commission.
Before deregulation, government agencies frequently:
Held prices artificially high, shielding businesses from competition.
Which of the following arguments opposes the idea of high executive pay?
High salaries divert resources that could be used to invest in the business.
Which company paid its employees to volunteer in their communities two days a week after a tsunami in Japan disrupted operations at its U.S. facilities?
Honda Motor Company.
A financial services firm decided to assess the return on its social investment in an educational program in local schools. As part of its assessment, it measured the improvement in learning among students who had participated in the program, compared with the learning of students who had not. Which of the following elements was assessed?
Impacts
Habitat for Humanity is considered a:
Nongovernmental Organization.
The main reason that American executives are paid so much is:
Pay is set by the compensation committees of the board, largely comprised of other CEOs who have an interest in pushing compensation up.
An employee for which team was terminated for saying detrimental things about his employer on his Facebook page.
Philadelphia Eagles
The "right to be heard" assures that consumers' interests will:
Receive full and sympathetic consideration.
The share of all giving made up by in-kind contributions of products and services has been:
Rising steadily over the past decade.
In response to concerns about the lack of transparency in financial accounting, Congress passed a new law called the:
Sarbanes-Oxley Act.
Which of the following is not an example of fulfilling social objectives through stock ownership?
Selling stock of companies with a below-market rate of return.
The main responsibility of the National Highway Traffic Safety Administration is to:
Set motor vehicle safety standards.
Under what legal doctrine does a firm bear legal responsibility for injuries caused by something it made or sold, whether or not it was negligent or breached a warranty?
Strict liability.
Which of the following limits the collection of information online from and about children under the age of 13?
The Children's Online Privacy Protection Act.
Which of the following is not a function of board committees?
The finance committee works closely with the human resources department to fund employee salaries.
Which of the following is not true about institutional investors?
The proportion of institutional ownership of stock in the U.S. has declined slowly since the 1960s.
Which of the following is(are) core rights of consumers?
The right to safety.
Which of the following is a mission of the Food and Drug Administration?
To assure the safety and effectiveness of a wide range of consumer products.
Which if the following is not a legal right of stockholders?
To vote on who will become chief executive officer (CEO).
Which of the following is not a distinct period in corporate involvement in education reform from the 1980s to the present?
Total quality management of the education system.
Many companies have argued that the evolution of strict liability has:
Unfairly burdened them with excess costs.
The first African American to lead a major US company was
Ursula Burns
In some cases, businesses have banded together to agree on how they will treat their customers. This is called:
Voluntary industry codes of conduct.
When an employee believes their employer has done something that is wrong or harmful to the public, and he or she reports alleged organizational misconduct to the media, government, or high-level company officials, what has occurred?
Whistle-blowing
Which company donates 5 percent of its branches or stores' total sales revenue to a worthy local nonprofit organization three days a year?
Whole Foods Market.
To which of the following does (do) most employees in the United States have a legal right?
a and b, but not c
The growing diversity in the U.S. workforce is due to:
all of the above
What did General Mills do to integrate family considerations into its operations?
all of the above
Sexual harassment applies to:
either men or women who are being harassed
According to a recent study, nearly ninety percent of all companies test employees or job applicants for drugs.
false
Affirmative action occurs when one group is unintentionally discriminated against in an effort to help another group.
false
Ergonomics is another name for adapting the worker to the job.
false
In 2009, Merck paid $1.4 billion to settle charges it had illegally marketed Zyprexa.
false
OSHA is a private organization that represent workers on job safety issues.
false
Racial Discrimination is illegal under Title 11 of The Civil Rights Compact.
false
Roughly half of all mothers hold jobs in the United States.
false
The pay gap refers to the inequitable concentration of a group, such as minorities or women, in a particular job category.
false
The Occupational Safety and Health Act gives workers the right to a job:
free from recognized hazards that are caused or likely to cause death or serious physical harm
Which of the following is true about random drug testing of employees?
it may occur at various times through the year
The conditions under which a company's employees work is called:
labor standards
Which of the following employees is listed in the text as more likely to suffer from repetitive motion disorders.
meat cutter
Which of the following is true about the ADA:
of the following is true about the ADA: businesses have complained about the costs of compliance
Drug testing for cause is commonly used after an accident or some observable change in behavior.
true
Employment-at-will is a legal doctrine that means employees are hired and retain their jobs at the sole discretion of the employer.
true
In a business context, "privacy rights" refers primarily to protecting an individual's personal life from unwarranted intrusion by his or her employer.
true
It is believed that 40 to 70 percent of working women have told researchers that they have been sexually harassed on the job.
true
More sexual harassment complaints are filed than sexual harassment cases.
true
Slightly more than 9 million U.S. women were working as managers by the late 2000s.
true
Some labor unions have departed from their traditional adversarial approach to work cooperatively with employers for their mutual benefit.
true
The American Psychological Association noted there is a significant potential for honesty tests to generate false negatives.
true
The employment relationship confers rights and duties on both sides.
true
The implied understanding between an organization and its stakeholder is sometimes referred to as a social contract.
true
The pay gap for Hispanic women declined by almost five percent since 2000.
true
The term diversity refers to variation in the important human characteristics that distinguish people from one another.
true
In a 2009 case involving Frank Rizzo, the Supreme Court held that:
you cannot discriminate against a person sleepy because he is white
The agency charged with enforcing equal opportunity laws and executive orders in the United States is the ADC.
false
The paramount duty of the board of directors of a public corporation is to:
Select and oversee competent and ethical management to run the company.
The board committee that administers and approves salaries and benefits of high-level managers in a company is called the:
Compensation committee.
When businesses adopt voluntary policies for protecting the privacy of individuals' information disclosed during electronic transactions, this is called:
Industry self-regulation.
Which company provided one million free vouchers for its online technology skills courses and certification exams during 2009?
Microsoft Corporation.
What company gives all of its earnings to charity?
Newman's Own.
The Council of Economic Priorities has developed a set of workplace rules called:
Social Accountability 8000
According to a Harvard Business Review study, which of the following is not an area in which corporate contributions are most likely to enhance a company's competitiveness?
Stakeholder management.
In 2010, median compensation for directors at the largest U.S. corporations was (rounded to the nearest $10):
$212,510.
Roughly how many Americans are independent contractors
1 in 14
