MGMT 371 CH3 MC QUESTIONS

Changes in the economic, political, legal, and technological global system that may affect an organization are ______ forces. A. local B. demographic C. international D. technological E. internal stakeholder

C

Corporate governance is the system ____. A. of governing an industry, such as the trucking industry, to protect customers B. that protects citizens against unethical state government C. of governing a company so that the interests of corporate owners and other stakeholders are protected D. of monitoring an industry, such as attorneys, to ensure ethical practices E. of monitoring corporate political donations

C

Every Saturday Mrs. Jones and hundreds of other shoppers visit ABC Market, a grocery store, to buy food for their home or business. These shoppers are _____ to ABC. A. suppliers B. community allies C. competitors D. customers E. partners

D

For organizations' board of directors, and in particular, their oversight of the CEO, the biggest complaint appears to be _____. A. the lack of interest in company matters B. the lack of corporate social responsibility C. the focus on profit above employee satisfaction D. the independence of the directors E. the ethical code of management

D

Marie and Marti are partners who solely own M and M Florist. As owners, they can ____. A. claim only limited liability B. avoid claiming any legal responsibility for M and M C. claim limited partnership D. claim an organization as their legal property E. decide not to pay their stockholders

D

Since the 1950s, the percentage of the U.S. labor force represented by unions has _____. A. rapidly increased B. steadily increased C. fallen to nearly zero D. steadily declined E. remained unchanged

D

Sustainability is economic development that ____. A. meets future needs without compromising present needs B. generates greater profitability C. produces greater diversity D. meets present needs without compromising the ability of future generations to meet their own needs E. is a idea of Frank and Lillian Gilbreth that proposes how to cut costs but increase efficiency

D

The Sarbanes-Oxley Act of 2002 established requirements for ____, and for noncompliance, penalties of ______. A. proper financial record keeping for private companies; as much as 25 years in prison B. proper financial record keeping for government organizations; as much as 25 years in prison C. code of ethics guidelines for organizations; as much as 2 million dollars D. proper financial record keeping for public companies; as much as 25 years in prison E. all corporate financial records to be made public; as much as 2 million dollars

D

The macroenvironment is also known as the ______. A. economic environment B. diversity source C. microenvironment D. international arena E. general environment

E

The marketing director informed his employees that he feels the company needs to improve its relationship with the distributors of the company's products to increase market share because they are part of the ______ environment of the company. A. strategic B. focused C. outlying D. external E. task

E

The plant manager of a factory that produces tires told Sal, the purchasing manager, to approach the suppliers of the plant to discuss discounts. A supplier to that factory ____. A. competes for customers or resources B. helps Sal's company sell its goods and services to customers C. joins forces with Sal's plant to achieve advantages neither can perform as well alone D. rescinds tax breaks when firms don't deliver promised jobs E. provides raw materials, services, equipment, labor, or energy

E

motivated blindness

the tendency to overlook information that works against our best interest

After more than 100 years in business, Don, the president of a successful family-owned company, wants to give back to the people of the community for the many years of success that they have given to my father and me. He decides to donate a significant portion of profits to a charity every year. What Don's company is doing is an example of ___. A. corporate social responsibility B. corporate governance C. responsibility code of ethics D. economic responsibility E. legal responsibility

A

Amy, a successful banker and educator, has decided to retire, but she is very interested in staying involved with a company "that cares." So when asked to be on its board of directors, she gladly accepted the invitation. As a member of the board, Amy will be involved with the organization's ____. A. overall strategic goals and approval of major decisions B. daily company management and employee supervision C. overall strategic goals and global HR management D. daily specific company goals and management of a specific department E. oversight of sales and marketing

A

Changes in the way politics shape laws and laws shape the opportunities for and threats to an organization are ____ forces. A. political-legal B. demographic C. financial D. socio-cultural E. technological

A

Don, the owner of a fishing business, attended an entrepreneurship workshop that discussed the triple bottom line, which measures an organization's ____ performance. A. social, environmental, financial B. financial, diversity, environmental C. social, synergy, diversity D. marketing, profit, efficiency E. social, effectiveness, financial

A

Local livestock farmers could allow the runoff of manure nutrients into a stream that feeds a local lake because this helps farmers in the short term. However, farmers will act ethically in the short run to avoid harming others in the long run because this is also in the farmer's best long-term interests, is reflected by the _____ approach to deciding ethical dilemmas. A. individual B. group C. moral-rights D. utilitarian E. justice

A

Mr. Jones, a wealthy businessman who made his fortune in the oil industry, understands the importance of a college education, so he has given over $10 million over the last several years to colleges and universities. This is an example of _____. A. philanthropy B. sustainability C. a servant leader D. mentoring E. corporate governance

A

Rebecca and Donna, owners of Fine Coffee and Pastry Shop, are concerned because Panera Bread is opening a new store just one mile from their shop. Rebecca and Donna know that Panera will be offering similar products; therefore, Panera Bread will be a ____ to Rebecca and Donna. A. competitor B. competitive ally C. strategic ally D. distributor E. internal stakeholder

A

To focus on improving company customer service this year, the CEO outlined a list of stakeholders to concentrate on: distributors, local communities, and the mass media. These three groups are ____. A. external stakeholders B. developmental stakeholders C. internal stakeholders D. vital stockholders E. interest groups

A

When individuals who want to start a new venture obtain many small amounts of money from many people, this type of financing is called ____. A. crowdfunding B. multi funding C. duplicating D. venture-funding E. angel-financing

A

ABC Brothers' cleaning products and equipment are sold to consumers and commercial cleaning companies in Best Supply's janitorial supply and equipment store. ABC relies heavily on Best Supply to help sell its goods and services to customers. Best Supply is a(n) ____ for ABC Brothers' products. A. competitor B. distributor C. customer D. subsidiary E. account ally

B

Business scholar Archie Carroll suggested that first and primary responsibility of an organization in the global economy is to ___. A. be a good global corporate citizen, as defined by the host country's expectations B. be profitable consistent with expectations for international business C. be ethical in its practices D. obey the law of host countries as well as international law E. have a green attitude

B

Local communities are stakeholders of organizations because communities _____. A. rely on the products the companies produce B. rely on the tax base from companies, and their employee payrolls, to thrive C. wish to join forces with organizations to create strategic alliances D. need the publicity of national organizations E. enjoy the changes that progress tends to bring

B

New developments in methods for transforming resources into goods or services are _____ forces. A. sociocultural B. technological C. demographic D. political-legal E. media

B

Patsy, a nurse, has decided to start a home health care service to assist with the medical, meal preparation, and light housecleaning needs of older adults. To grow her business, Patsy is focusing her marketing efforts on the older adult population; as she does this, she is involved with the _____ environment. A. task B. general C. internal D. natural capital E. strategic allies

B

The mass media is considered part of an organization's _____. A. general environment B. task environment C. internal stakeholders D. macroenvironment E. distribution network

B

When a food distributor looks at changing the products it markets in the southern states because of an increasing percentage of customers from Central and South America, it is looking at the ____ forces. A. economic B. demographic C. technological D. political E. legal

B

As the CEO of a company that produces products for schools, Hannah feels that her company needs to not only produce a profit but also do things that benefits society. This type of company attitude is an example of ____. A. individual responsibility B. a green attitude C. social responsibility D. moral rights E. corporate philanthropy

C

Don was recently promoted, and his salary increase includes retirement investment options, so he has decided to get involved with an ESOP. This means Don ____. A. will be on the company's board of directors B. will participate in an Externship Supervisors' Oversight Plan C. will be buying shares of his company's stock D. is now part of the company's external stakeholders E. is in charge of an investment group

C

Ethics are _____. A. influences arising from changes in the characteristics of a population B. a type of written code for an organization C. standards of right and wrong that influence behavior D. behavior accepted as "right" E. rules to be enforced in an organization

C

Jane, a successful store manager, leads her employees by encouraging them and showing that she genuinely believes in them, and she encourages group and team efforts. Jane manages at Kohlberg's _____ level of personal moral development. A. unconventional B. nonconventional C. conventional D. postconventional E. preconventional

C

On an organization's board of directors, inside directors ____; outside directors _____. A. are supposed to be elected from outside the organization; may be members of the firm B. must work for the company; are also members of the firm C. may be members of the firm; are supposed to be elected from outside the firm D. are always retired executives; typically are employees E. must work for the organization; are paid members of the organization

C

Regulatory agencies that establish ground rules under which organizations may operate are known as ____. A. whistle-blowers B. government moderators C. government regulators D. interest groups E. watch dogs

C

The city government of Pleasantville promised significant tax breaks to a large retailer if it expanded its presence, which would result in nearly 200 new local jobs. However, the retailer found another location better for expansion. As a result, the city of Pleasantville instituted clawbacks by _____. A. increasing the tax breaks B. forcing the retailer to pay large fines C. rescinding the tax breaks D. boycotting the retailer E. forcing the retailer to unionize

C

The employees of Mom's Pizza, a local pizza restaurant, feel that the owners and managers really try to follow the ethical policies outlined in their company's code of ethics. Pete, a cook, said that "Just today, Joe, our manager, called our supplier to let them know we received an extra case of tomatoes that we did not pay for. And they do this type of thing almost every day." Mom's Pizza maintains a(n) _____. A. dilemma-free climate B. profitable climate C. ethical climate D. holier-than-thou atmosphere E. synergy environment

C

The justice approach to deciding ethical dilemmas is guided by _____. A. increasing profits and workplace diversity B. respect for the fundamental rights of human beings C. respect for impartial standards of fairness and equity D. respect for society and the environment E. what will result in the individual's best long-term interests

C

To increase profitability, top management of a national retailer needs to decide if it will close several stores. Management knows that by closing the locations, it will save the company millions of dollars and benefit many stockholder groups and individuals, compared to keeping those stores open and benefiting fewer people. This logic is an example of the ___ approach. A. individual B. majority C. utilitarian D. justice E. moral-rights

C

When Bernard Madoff used money from newer investors to pay off older ones, this was an example of ____. A. illegal lobbying B. insider trading C. an ethical dilemma D. a Ponzi scheme E. an ethical climate

C

Americans driving less and young people having less interest in cars are examples of trends in society known as ____ forces. A. diversity B. financial C. political D. sociocultural E. legal

D

An organization's internal stakeholders consist of ___. A. board of directors, employees, suppliers B. board of directors, customers, owners C. customers, families of employees, employees D. board of directors, employees, owners E. competitors, the community, suppliers

D

The macroenvironment includes these forces: _______. A. economic, technological, sociocultural, diversity B. diversity, microenvironment, sociocultural, demographic, political-legal C. globalism, technological, sociocultural, demographic, microenvironment D. economic, technological, sociocultural, demographic, political-legal, international E. international, demographic, diversity, family, culture, technology

D

The relatively permanent and deeply held underlying beliefs and attitudes that help determine a person's behavior are known as ____. A. morals B. norms C. ethical advantages D. values E. fairness factors

D

Tom and his managers are discussing the unemployment, inflation, and interest rate trends that might affect his chain of coffee shops over the next 12 months and the projected growth in the areas where his stores are located. The managers are studying the ______ forces in their organization's general environment. A. technological B. socio-cultural C. political D. economic E. international

D

A formal written set of ethical standards guiding an organization's actions is a(n) ____. A. moral compass B. business plan C. dilemma document D. ethical plan E. code of ethics

E

According to researcher Daniel Pink, when employees feel a sense of purpose—when their work has meaning—workers _____. A. will continue to work past the age of 90 B. tend to focus on short-term happiness C. sell more product D. eliminate all company fraud E. are more efficient, loyal, and creative

E

Alonzo, the president of the student class and honor society, has been very busy and did not study for the history test. Although Alonzo is very confident, he realizes that he probably will not do well on the exam and has talked himself into cheating because he feels it is worth it to maintain his strong GPA, which he will need to be accepted by a good college. He tells his friend, "I don't usually do this, but I really have to do it." The cause of Alonzo's behavior is ____. A. the holier-than-thou effect B. the deception effect C. the cheating requirement D. a depression disorder E. motivated blindness

E

Don has managed several restaurants for over 50 years and is close to retirement. With his maturity, his decisions are sound, based on solid, proven values. Don tends to be an independent thinker who focuses on empowering his employees. Don manages at Kohlberg's ______ level of personal moral development. A. conventional B. nonconventional C. unconventional D. preconventional E. postconventional

E

Greg, the president of an IT company, purchased a large number of shares of company stock before the news of a new revolutionary computer processor was made public that will cause company profits to increase considerably. This action by Greg could be considered an example of _____. A. a Ponzi scheme B. internal information C. ethical behavior D. information abuse E. insider trading

E

Joe, a lobbyist who represents a certain industry, is meeting with several members of Congress to try to exert political influence by contributing funds to the lawmakers' election campaigns. Joe also is involved in a letter-writing campaign to promote his cause. Joe represents a ____. A. government regulator B. task force C. focus group D. strategic alliance E. special-interest group

E

Joe, owner of ABC Electronics, just discovered that his trusted friend Paul, his accountant for over 30 years, has been mishandling the company books and stealing from the company bank account. Joe must decide whether to publicly ignore his friend's actions and avoid bad publicity for the firm, an example of ____. A. a whistle-blower B. a synergy factor C. corporate governance D. a social audit E. an ethical dilemma

E

Ole McDonald, a successful farm equipment supply company in the Midwest, joined with A-Plus Supply, a national hardware and home retailer, so Ole McDonald can open stores in other regions and A-Plus can now offer a high-quality product in the farm community. This is an example of a ___ relationship. A. distributor B. competitor C. customer D. supplier E. strategic allies

E

Phillip said to a dear friend, "I am fed up with my company's continual disregard for human life and the environment. They just continue to secretly dispose of hazardous chemicals into a nearby stream. I don't know how they get away with it! I am going to tell somebody today." Phillip's decision to tell somebody about his company's actions is an example of a(n) ______. A. preconventional manager B. ethics officer C. backstabber D. invisible hand E. whistle-blower

E

Warm Hearts is a nonprofit organization that brings warm meals to older adults and runs errands for its clients; the board of that nonprofit is called the _____. A. overall board B. nonprofit trustees or the directors C. strategic board D. daily oversight committee E. board of trustees or board of regents

E

What mechanism is used to provide a systematic assessment of an organization's triple bottom line? A. sustainability program B. code of ethics C. diversity program D. financial audit E. social audit

E

With recent reports of identity theft, Mr. Jones, the CEO of a construction company, is concerned about his employees' privacy, and because of recent accidents on the job, he is also worried about the safety of his workers. Mr. Jones's concerns with privacy and health and safety are outlined in the _____ approach to deciding ethical dilemmas. A. individual rights B. justice C. impartial D. utilitarian E. moral rights

E