Business Ethics Exam 3
In some cases, businesses have banded together to agree on how they will treat their customers. This is called: A. Code of regulation. B. Consumer affairs doctrine. C. Voluntary industry codes of conduct. D. Industry action standards.
Voluntary industry codes of conduct
Institutional investors are sometimes referred to as: A. Main Street investors. B. Wall Street investors. C. Inside investors. D. Outside investors.
Wall street investor
In 2013, median compensation for directors at the largest U.S. corporations was around: A. $150,000. B. $240,000. C. $550,000. D. $1,200,000.
$150,000
According to a Forbes study, what percentage of executives agreed that diversity encourages innovation? A. 10 percent. B. 50 percent. C. 68 percent. D. 85 percent.
85 percent
Restrictive governments often reduce or eliminate citizen access to the Internet and social media sites in order to? A. Suppress political dissent. B. Impose religious or ideological views. C. Increase bandwidth for government usage. D. A and B, but not C.
A and B but not C
The audit committee is required by U.S. law to be: A. Composed entirely of outside directors. B. Financially literate. C. Headed by the company's CEO. D. A and B, but not C.
A and B, but not C.
Recently released workplace statistics for high tech companies reveal: A. A majority of their workers are white or Asian. B. Women are more likely to be in technical roles. C. Pinterest is the only high tech company surveyed with a majority female workforce. D. No high tech company surveyed had a female CEO or COO.
A majority of their workers are white or Asian.
Which of the following is not an instance of "insider trading"? A. An auditor using nonpublic information about the company to invest in its stock. B. A marketing executive briefing stock analysts on the company's sales performance. C. The CEO's cousin buying stock after the CEO mentioned a pending offer to buy the company. D. A stock broker passing an "inside tip" to a client, but not trading for his or her own account.
A marketing executive briefing stock analysts on the company's sales performance.
Why does a diverse and inclusive workforce benefit a firm supporting a global market? A. A variety of language skills serves the global customer base well. B. Cultural insensitivity helps to retain customers. C. Understanding differences across markets restricts innovation. D. Both A and C, but not B.
A variety of language skills serves the global customer base well.
A company can increase diversity and inclusion in the workforce by: A. Accommodating family needs outside of work. B. Moving all operations overseas. C. Hiring only foreign-born managers. D. Showing foreign films weekly.
Accommodating family needs outside of work.
Executive Order 11246, established in 1965, mandates: A. Affirmative action for all government employees. B. Affirmative action for all federal contractors and subcontractors. C. Equal pay for equal work for all federal contractors and subcontractors. D. Family and medical leave for all federal employees for illness, or the birth of a child.
Affirmative action for all federal contractors and subcontractors.
Which of the following government rules on equal treatment of employees does not apply to businesses? A. Discrimination on the basis of race, color, religion, sex, national origin, disability or age is prohibited in all employment practices. B. Government contractors must have written positive affirmative action plans to overcome the past and present effects of discrimination in their work force. C. Women and men must receive equal pay for performing equal work. D. Affirmative action plans must be permanent.
Affirmative action plans must be permanent.
Cybersecurity experts recommend including which essential elements for an incident-response plan for cyberattacks? A. Support from executive leadership. B. Involvement by all functional departments. C. Focus on how to respond to a breach. D. All of the above.
All of the above
Social investors seek to eliminate from their investment portfolios companies that: A. Pollute the environment. B. Discriminate against employees. C. Make dangerous products like tobacco or weapons. D. All of the above.
All of the above
A survey of hiring managers indicated that millennials were: A. More technologically adept than their seniors. B. Narcissistic and hard to retain. C. Expected to stay in their jobs less than three years. D. All of the above.
All of the above.
Reports filed with the SEC provide information on a company's: A. Sales and earnings. B. Depreciation by line of business. C. Details of foreign operations. D. All of the above.
All of the above.
The growing diversity in the U.S. workforce is due to: A. Millennials entering the workforce. B. Immigration from other countries. C. Shifting patterns of work and retirement. D. All of the above.
All of the above.
Which of the following is (are) true about Employee Assistance Programs (EAPs)? A. They offer counseling and follow-up to alcohol and drug abusers. B. Almost all employers with 1,000 or more workers offer EAPs. C. Nearly three-quarters of small companies with 50 to 99 employees offer EAPs. D. All of the above.
All of the above.
Which of the following is (are) true about child care assistance in the workplace? A. It helps reduce employee absenteeism and tardiness. B. It aids in recruiting workers by making the company more attractive to parents. C. It helps retain talented employees. D. All of the above.
All of the above.
Which of these statements is (are) true regarding sexual harassment? A. Most sexual harassment incidents target women. B. Sexual harassment is illegal in the United States. C. The United States Equal Employment Opportunity Commission is empowered to sue on behalf of victims. D. All of the above.
All of the above.
Why does the inclusion of women on corporate boards improve company performance? A. Alternative courses of action are more realistically considered. B. Women bring different life experiences to discussions. C. Women are more likely to raise multiple stakeholder concerns. D. All of the above.
All of the above.
Which of the following is not true about employee theft? A. Almost half of all inventory losses are due to employee theft in the U.S. B. It is a significant economic, social, and ethical problem in the workplace. C. Almost half of all employees have stolen from an employer at least once in his or her career. D. Employees damage coworkers and their employers by stealing from the company.
Almost half of all employees have stolen from an employer at least once in his or her caree
One alternative to product liability lawsuits is called: A. Limited resolution. B. Punitive damages reform. C. Alternative dispute resolution. D. Consumerism.
Alternative dispute resolution
The Securities and Exchange Commission outlaws: A. Any manipulative or deceptive device used to trade stocks. B. Compensating company executives with stock options. C. Trading in stocks by institutions. D. Buying stock in a company for which you work.
Any manipulative or deceptive device used to trade stocks.
Which ethnic group, as defined by the U.S. Census, represents the fastest-growing segment of the labor force? A. African-Americans. B. Hispanics. C. Asians. D. Native Americans.
Asians
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: A. Bull market. B. Volatile market. C. Bear market. D. None of the above.
Bear Market
Advertising that is targeted to particular customers, based on their observed online behavior, is called: A. Targeted advertising. B. Tracking advertising. C. Behavioral advertising. D. Online advertising.
Behavioral advertising
When businesses adopt voluntary policies for protecting the privacy of individuals' information disclosed during electronic transactions, this is an example of: A. Industry self-regulation. B. Privacy legislation. C. Consumer self-help. D. Business privacy regulation.
Behavioral advertising
Only after which of the following conditions is (are) met, should the whistle-blower go public? A. The unreported act would do serious and considerable harm to the public. B. The employee has tried and failed to resolve the issue internally. C. Reporting the problem publicly probably will not resolve the issue. D. Both A and B, but not C.
Both A and B, but not C
A strong employer-employee relationship is central to: A. Achieving a corporation's economic goals. B. Satisfying the wishes of those who contribute their skills and talents to the company. C. Increasing the gross domestic product of a nation. D. Both A and B, but not C.
Both A and B, but not C.
Companies can combat sexual and racial harassment—and protect themselves from expensive lawsuits—by: A. Developing a zero-tolerance policy on harassment and communicate it clearly to employees. B. Establishing a complaint procedure and act quickly to resolve any problems. C. Bribing employees with money to avoid a lawsuit. D. Both A and B, but not C.
Both A and B, but not C.
Employees in the United States have a legal right to: A. Organize and bargain collectively. B. A safe and healthy workplace. C. A job. D. Both A and B, but not C.
Both A and B, but not C.
Which of these statements is true regarding the Class Action Fairness Act of 2005? A. Lawyers were restricted from shopping for friendly venues to try interstate cases. B. Excessive attorney compensation was limited. C. The burden of proof was shifted to government. D. Both A and B, but not C.
Both A and B, but not C.
Which of these statements is true regarding women in the United States workforce? A. The percentage of working women declined slightly in 2013. B. A lack of family-friendly business policies has made it difficult for working mothers. C. The participation rates of women and men in the workforce have diverged. D. Both A and B, but not C.
Both A and B, but not C.
Which of these steps has the U.S. recently taken to counter cybercrime? A. Setup a system of voluntary cybersecurity standards. B. Opened a new center dedicated to managing cyber activities. C. Passed sweeping new legislation that required Internet providers to guarantee security. D. Both A and B, but not C.
Both A and B, but not C.
Which of these statements accurately describe(s) the "gig" (or sharing) economy? A. Many companies have become more cost-efficient. B. Risk has shifted from the worker to the company. C. In many cases, income has decreased. D. Both A and C, but not B.
Both A and C, but not B
As of 2013, which of the following accurately describe(s) the pay gap for full-time working women and minorities in the United States, as compared to white men? A. On average, women and persons of color earn lower pay. B. Overall, black men earn about 75 percent more pay. C. The pay gap has decreased by about 5 percent for both Hispanic men and women. D. Both A and C, but not B.
Both A and C, but not B.
According to the U.S Department of Labor: A. Annually, more than 3 million workers in the private sector are hurt or become ill on the job. B. Annually, more than 3 million workers in the public sector are hurt or become ill on the job. C. Three out of every 100 workers are hurt or become ill on the job annually. D. Both A and C, not B.
Both A and C, not B.
Which of the following describe why the consumer movement exists? A. Services have become less specialized. B. Some product advertising claims have been inflated. C. Some businesses have violated the public's privacy. D. Both B and C, but not A.
Both B and C, but not A
Investors may receive an economic benefit from the ownership of stock by receiving: A. Interest. B. Dividends. C. Capital gains. D. Both B and C, but not A.
Both B and C, but not A.
Where are workers not permitted to form independent unions? A. Europe. B. Some communist countries. C. Some military dictatorships. D. Both B and C, but not A.
Both B and C, but not A.
Which of these statements is (are) true about the group known as Anonymous? A. They are a tightly bonded group of hacktivists. B. They are distinguished by masks with an over-sized smile and red cheeks. C. They supported WikiLeaks and the Occupy movement. D. Both B and C, but not A.
Both B and C, but not A.
Which organization brings together 250 nonprofit groups to espouse the consumer viewpoint? A. Consumers Union. B. Consumer Federation of America. C. National Consumer League. D. Public Citizen.
Consumer Federation of America
Which country recently required all video-streaming sites to be approved by the government or risk having their content banned? A. Iran. B. Pakistan. C. North Korea. D. China.
China
Which part of the Department of Justice protects the public from being charged excess fees based on one's race? A. Consumer Product Safety Commission. B. Civil Rights Division. C. Consumer Financial Protection Bureau. D. Federal Trade Commission.
Civil Rights Division.
Which of these actions can businesses take to reduce income inequality? A. Adjust minimum wage laws to increase worker pay. B. Implement new tax policy that benefits employees. C. Provide very high executive compensation. D. Commit to paying a living wage to all employees.
Commit to paying a living wage to all employees.
According to the new social contract: A. The employer is obligated to provide long-term job security. B. Companies try to attract workers by giving them interesting and challenging work. C. Job security is based on seniority, but salaries may be lowered for poor performance. D. The employer is without any responsibilities toward employees.
Companies try to attract workers by giving them interesting and challenging work.
The board committee that administers and approves salaries and benefits of high-level managers in a company is called the: A. Executive committee. B. Human resources committee. C. Nominating committee. D. Compensation committee.
Compensation committee.
The law requiring that toys and infant products be tested before sale is called the: A. Child Safety Act. B. Strong Product Safety Bill. C. Consumer Product Safety Improvement Act. D. Uniform Safety Testing Bill.
Consumer Product Safety Improvement Act
Which of the following is true about corporate boards? A. Corporate boards average 12 members. B. About half of the directors are "outside" directors. C. Only one-third of all companies have at least one woman on their board. D. About 13 percent of board members are Latino.
Corporate boards average 12 members.
Businesses can take a number of measures to respond voluntarily to consumer demands. Which of the following is an example of such a measure? A. Product liability law reform. B. Customer call centers. C. Consumer advocacy groups. D. Alternative dispute resolution policies.
Customer call centers.
Groups that collect and combine data from various sources into individual profiles that are sold to retailers and advertisers are called: A. Flash cookies. B. Data aggregators. C. Internet marketers. D. 360-degree viewers.
Data aggregators
Since the mid-1950s the proportion of American workers represented by unions has: A. Decreased. B. Increased. C. Remained about the same. D. Grown only in the manufacturing sector.
Decreased
(Chapter 16) 16. Variation in the important human characteristics that distinguish people from one another is called: A. Workforce variability. B. Diversity. C. Difference. D. Affirmative action.
Diversity
Supporters of digitized medical records claim that: A. The number of common medical errors has remained constant. B. Computerized prescription-ordering systems avoided over seven million mistakes. C. Electronic alerts prevented dangerous drug combinations from being prescribed. D. Both B and C, but not A.
Electronic alerts prevented dangerous drug combinations from being prescribed.
Before deregulation, government agencies frequently: A. Held prices artificially high, shielding businesses from competition. B. Held prices artificially low, shielding consumers from selection. C. Encouraged overseas trade, shielding businesses from competition. D. Discouraged overseas trade, shielding consumers from selection.
Encouraged overseas trade, shielding businesses from competition.
The primary goal(s) of the Food and Drug Administration include: A. Ensuring the safety and effectiveness of a wide range of consumer products. B. Prohibiting unfair or deceptive advertising. C. Reviewing and approving new products before they are released to consumers. D. Both A and C, but not B.
Ensuring the safety and effectiveness of a wide range of consumer products.
The practice of adapting the job to the worker is called: A. Social contracts. B. Living wages. C. Electronic monitoring. D. Ergonomics.
Ergonomics.
The directors of a company are a central factor in corporate governance because they: A. Exercise formal legal authority over company policy. B. Have the highest stake in the performance of the company. C. Have a moral responsibility to fulfill the needs of both the company's employees and customers. D. Inherited the business from their predecessors.
Exercise formal legal authority over company policy.
Which of the following is not a goal of consumer protection laws? A. Encourage competitive pricing. B. Facilitate consumers' getting extended credit when making purchases. C. Provide consumers with better information when making purchases. D. Protect consumers against possible hazards from products purchased.
Facilitate consumers' getting extended credit when making purchases
In the United States, which of the following agencies enforces the laws prohibiting deceptive advertising? A. Congress. B. Consumer Product Safety Commission. C. Federal Trade Commission. D. Department of Justice.
Federal Trade Commission
The term "Glass walls" refers to: A. Fewer opportunities for direct upward advancement. B. Fewer opportunities to move sideways into jobs that lead to the top. C. Reliance on word of mouth by recruiters for top positions — "the old boys' network" from which women are excluded. D. A company's lack of commitment to diversity.
Fewer opportunities to move sideways into jobs that lead to the top.
One important aspect of the new social contract is: A. Fixed pension benefits have increased significantly. B. Fixed pension benefits have remained a solid incentive for workers. C. Fixed pension benefits have been eliminated in the U.S. by around 90 percent. D. Defined contribution plans provide more returns and less risk.
Fixed pension benefits have been eliminated in the U.S. by around 90 percent.
Polygraph testing: A. Is encouraged by the Employee Polygraph Protection Act of 1988. B. Is used by 85 percent of U.S. companies as a pre-employment screening procedure. C. Has been replaced by written psychological tests. D. Is used by 85 percent of U.S. companies to discover employee theft.
Has been replaced by written psychological tests
Which of the following arguments opposes the idea of high executive pay? A. High salaries provide an incentive for innovation and risk taking. B. Not many individuals are capable of running today's large, complex organizations. C. Top athletes and entertainers make a lot of money, so top executives should, too. D. High salaries divert resources that could be used to invest in the business.
High salaries divert resources that could be used to invest in the business.
Among minority-owned firms in the mid-2010s, the most numerous were those owned by: A. Asians. B. African-Americans. C. Hispanics. D. Native Americans.
Hispanics
Which of the following is a key feature of effective boards of directors? A. Hold regular meetings without the CEO present. B. Fill all important positions on the board with managers with insider knowledge of the firm. C. Combine the duties of the board chairman and the chief executive. D. Ensure that no outside members are included on the board.
Hold regular meetings without the CEO present.
Warning consumers about the possible side effects of pharmaceutical drugs is an example of consumer protection against: A. Predatory pricing. B. Incomplete information disclosure. C. Hazardous products. D. Violations of individual privacy.
Incomplete information disclosure
The purpose of the right to be forgotten A. Increase protection of privacy and personal information. B. Protect property rights. C. Protect intellectual property. D. Prevent software privacy.
Increase protection of privacy and personal information.
In 2014, of the following nations, the fastest growing stock market was in: A. United States. B. Japan. C. India. D. Indonesia.
India
Which of the following arguments supports the concept of high executive compensation? A. Inflated executive pay helps U.S. firms compete with foreign rivals. B. High executive pay drives away talented middle managers who feel unfairly compensated. C. High salaries provide an incentive for innovation and risk-taking. D. There is currently a surplus of qualified executive candidates.
Inflated executive pay helps U.S. firms compete with foreign rivals.
Online shoppers always run the risk that: A. They might have to pay state and local taxes on goods purchased. B. Their favorite Web sites provide a large variety of products and services. C. The government might become overly involved in protecting consumer privacy. D. Information they reveal in the course of a sales transaction might be misused.
Information they reveal in the course of a sales transaction might be misused.
Which of these is not a current consumer law that protects individual privacy? A. Internet "do not track" rules. B. The FTC's "do not call" list to avoid unwanted telemarketing calls. C. Unwanted calls to a person's mobile phone. D. Children's Online Privacy Protection Action of 2000.
Internet "do not track" rules.
The major federal consumer protection agencies are authorized by law to: A. Intervene directly into the very center of free market activities, if that is considered necessary to protect consumers. B. Substitute government-mandated standards for decision making by private buyers and sellers. C. Substitute private manufacturing standards for government-mandated standards. D. Both A and B, but not C.
Intervene directly into the very center of free market activities, if that is considered necessary to protect consumers
Increased cyber activity by which country prompted NATO officials to brand them as "patriotic hackers"? A. Russia. B. Iran. C. Iraq. D. Mexico.
Iran.
A reason for institutions becoming more assertive in promoting the interests of their member investors is: A. It is difficult for institutions to sell their holdings. B. Institutional investors are rarely able to influence management policy. C. Institutions have greater flexibility in selling stocks. D. Institutions have nominated members on the finance committee of the board of directors.
It is difficult for institutions to sell their holdings.
Which of the following is an argument against affirmative action? A. It costs American businesses too much money. B. There are no mechanisms in place to verify that it is actually taking place. C. It is inconsistent with the principles of fairness and equality. D. It violates individuals' basic human rights.
It is inconsistent with the principles of fairness and equality.
Which of the following statements is not true about the organization Consumer Reports? A. It is involved in activities promoting the interests of consumers. B. It conducts extensive tests on selected consumer products and services. C. It is supported by the federal government. D. It publishes the results of tests online, with ratings on a brand-name basis.
It is supported by the federal government.
Which of the following is true about random drug testing of employees? A. It screens randomly-selected employees at various times through the year. B. It randomly tests selected applicants before hiring, as a part of a physical examination. C. It tests an employee believed to be impaired by drugs and unfit for work. D. It regularly tests employees from randomly-selected job categories or job levels.
It screens randomly-selected employees at various times through the year
Which law eliminated certain time restrictions for filing pay discrimination lawsuits? A. Lilly Ledbetter Fair Pay Act of 2009. B. Family and Medical Leave Act of 1993. C. Equal Opportunity Employment Act of 1972. D. Equal Pay Act of 1963.
Lilly Ledbetter Fair Pay Act of 2009
The "agency problem" arises when: A. Owners manage the company on their own behalf. B. There is no separation of ownership and control in a company. C. Managers act in their own interest, rather than in the interest of shareholders. D. Shareholders act in their own interest, rather than in the interest of the board.
Managers act in their own interest, rather than in the interest of shareholders.
Which of the following is true about romantic relationships in the workplace? A. Most businesses have strict policies forbidding all romantic relationships in the workplace. B. OSHA requires businesses to forbid workplace romantic relationships. C. Many companies allow managers to become romantically involved with subordinates, so long as they do not supervise them directly. D. Almost all businesses ban romantic relationships between employees in the different departments.
Many companies allow managers to become romantically involved with subordinates, so long as they do not supervise them directly.
Under U.S. laws: A. Only private workers have the right to hold an election to choose what union they want to represent them, if any. B. Only public workers have the right to hold an election to choose what union they want to represent them, if any. C. Most private and public workers have the right to hold an election to choose what union they want to represent them, if any. D. Only the employer has the right to hold an election to choose what unions they want to represent the workers within the organization, if any
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 statements are not true about the right to a safe and healthy workplace? A. Over recent years no new categories of accidents or illnesses have emerged. B. Extensive training and careful precautions are necessary to avoid accidents, injuries, and illness. C. Many jobs are potentially hazardous to workers' safety and health. D. Some occupations, such as drilling and mining, are particularly dangerous.
Over recent years no new categories of accidents or illnesses have emerged.
One of the main reasons that American executives are paid so much is: A. Pay is set by the compensation committees of the board, largely comprised of other CEOs who have an interest in pushing compensation up. B. Qualified individuals are scarce, because most current CEOs were born during the "baby bust" years of the Great Depression. C. High executive compensation in other nations puts upward pressure on the salaries of U.S. executives. D. Most executives are paid based on their performance, and rising compensation reflects the excellent performance of their firms.
Pay is set by the compensation committees of the board, largely comprised of other CEOs who have an interest in pushing compensation up.
States that have adopted right-to-work laws: A. Barred companies from forming unions to represent their employees. B. Prevented unions from requiring all workers they represent to pay fees or dues. C. Required the formation of unions in all manufacturing organizations. D. Took away the rights of workers in the public sector to form unions.
Prevented unions from requiring all workers they represent to pay fees or dues.
Age, ethnicity, gender, mental or physical abilities, race, and sexual orientation are what dimensions of diversity? A. Primary. B. Secondary. C. Tertiary. D. Legal.
Primary
The mission of the Securities and Exchange Commission (SEC) is to: A. Protect shareholders' rights by making sure that stock markets are run fairly. B. Protect companies from hostile takeovers. C. Ensure that institutional investors do not take control of company management. D. Ensure that the federal treasury receives its share of the revenues from stock trading.
Protect shareholders' rights by making sure that stock markets are run fairly.
The "right to be heard" assures that consumers' interests will: A. Receive full and sympathetic consideration. B. Be protected against fraudulent or misleading information. C. Be assured satisfactory quality and service at a fair price. D. Be given all the facts to make an informed choice.
Receive full and sympathetic consideration
The Sarbanes-Oxley Act makes it illegal for employers to: A. Sue federal contractors for fraud. B. Retaliate against whistle-blowers who report information that could have an impact on the value of a company's shares. C. Hire employees who have a prior record of accounting fraud. D. Both B and C, but not A.
Retaliate against whistle-blowers who report information that could have an impact on the value of a company's shares.
(Chapter 15) 16. If someone is entitled to be treated in a certain way, this refers to a(n): A. Relationship. B. Obligation. C. Duty. D. Right.
Right
This law tightened regulation on issuers of complex securities, especially those related to subprime mortgages: A. Sarbanes-Oxley Act. B. Dodd-Frank Act. C. Affordable Care Act. D. Securities and Exchange Act.
Securities and Exchange Act.
Which of the following is not an example of fulfilling social objectives through stock ownership? A. Selling stock of companies that did business in South Africa when it had a policy of racial discrimination. B. Divesting from Chinese companies that made products using forced labor. C. Selling stock of companies with a below-market rate of return. D. Not investing in Burmese companies that had been accused of human rights abuses.
Selling stock of companies with a below-market rate of return.
The main responsibility of the National Highway Traffic Safety Administration is to: A. Set a uniform national speed limit. B. Set airline safety standards. C. Set motor vehicle safety standards. D. Safeguard consumers from altered odometers.
Set motor vehicle safety standards.
Which of the following actions can a company take to effectively manage diversity and inclusion? A. Do not actively recruit ethnic minority workers. B. Set up a diversity council to monitor the company's goals. C. Fire existing workers and replace them with ethnically diverse workers. D. All of the above.
Set up a diversity council to monitor the company's goals.
How are directors (members of corporate boards) selected? A. Shareholders elect the directors from a list of candidates. B. The company's CEO appoints the directors. C. The nominating committee elects the directors. D. Shareholders with the greatest proportional ownership in the company become directors.
Shareholders elect the directors from a list of candidates.
Some studies have shown that the burden of complying with safety regulations falls hardest on: A. The government. B. Large businesses. C. Small businesses. D. The manufacturing sector only.
Small businesses.
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? A. Strict liability. B. Product liability. C. Consumer liability. D. Supplier liability.
Strict liability
Consumer groups have generally opposed the idea of product liability reform using which of the following arguments? A. Punitive damages should be limited. B. Strict liability should be retained. C. The burden of proof should be shifted to consumers. D. Losers should be made to pay some of the other side's legal bills.
Strict liability should be retained
Consumers owe more money on their home loans (mortgages) than on any other kind of household debt. After mortgages, what makes up the largest portion of household debt? A. Credit card debt. B. Medical debt. C. Car loans. D. Student loans.
Student loans
A living wage has been defined as a wage that: A. Equals or exceeds the minimum wage established by law. B. Equals or exceeds one-and-a-half times the minimum wage established by law. C. Support the basic needs of an average-sized family, based on local prices. D. Support half the basic needs of an average-sized family, based on local prices.
Support half the basic needs of an average-sized family, based on local prices.
As shown in Figure 2, in 2013 the countries with the highest and lowest percentages of unionized labor, respectively, were: A. Sweden, United States. B. Japan, Mexico. C. Norway, Austria. D. United States, Denmark.
Sweden, United States.
The Occupational Safety and Health Act gives workers the right to a job: A. With equal wages for similar kinds of work. B. With wages that enable an employee to enjoy a decent standard of living. C. That is free from recognized hazards that are likely to cause death or serious injury. D. That does not require them to lift, bend, or move items at any time on the job.
That is free from recognized hazards that are likely to cause death or serious injury.
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: A. The Consumer Protection Act. B. The Product Safety Act. C. The Predatory Mortgage Act. D. The Truth in Lending Act.
The Truth in Lending Act.
Consumers have become more dependent on businesses for product quality because: A. The complexity of products makes choices complicated for consumers. B. Instructions for use or care of product are provided in clear and simple language. C. Their technical competence allows them to inspect the products thoroughly. D. Competition has forced manufacturers to market lower-quality goods.
The complexity of products makes choices complicated for consumers.
Which of the following is not a function of board committees? A. The executive committee works closely with top managers on business matters. B. The audit committee reviews the company's financial reports. C. The compensation committee administers and approves salaries and benefits. D. The finance committee works closely with the human resources department to fund employee salaries.
The finance committee works closely with the human resources department to fund employee salaries.
Which of the following is not true about occupational segregation? A. It concentrates women in traditionally female-dominated jobs. B. The pay gap in American businesses persists, in part, because of it. C. It means that women cannot get the jobs that could break the cycle of relatively low pay. D. The large pay gap for Hispanic workers partly reflects their concentration in several high-paying occupations.
The large pay gap for Hispanic workers partly reflects their concentration in several high-paying occupations.
How do effective diversity and inclusion programs typically impact a firm's reputation? A. The reputation is damaged. B. The reputation is not affected. C. The number of discrimination lawsuits increases. D. The number of discrimination lawsuits decreases.
The number of discrimination lawsuits decreases
Which of the following is not true about institutional investors? A. Institutions invest their funds by purchasing shares of stock in corporations. B. The proportion of institutional ownership of stock in the U.S. has declined slowly since the 1960s. C. Pension funds and university endowments are examples of institutional investors. D. Institutions accounted for 63 percent of the value of all equities owned in the U.S. in 2010.
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? A. The right to safety. B. The right to be represented. C. The right to purchase. D. All of the above.
The right to safety.
Which of the following is not a benefit of managing diversity and inclusion effectively? A. These businesses get tax breaks from the federal government. B. These businesses can often more effectively serve customers. C. These businesses are better able to attract and retain workers from a variety of backgrounds. D. Businesses with a diverse workforce boost innovation for the firm.
These businesses get tax breaks from the federal government.
(chapter 13) 16. Which of the following statements is not true about shareholders? A. They are the legal owners of business corporations. B. They own equal shares of company assets. C. They are investors in the company. D. Managers pay close attention to their needs and interests.
They own equal shares of company assets.
Racial harassment is illegal under: A. Title VII of the Civil Rights Act. B. The Third Amendment to the Constitution. C. The Equal Pay Act. D. The Family Medical Leave Act.
Title VII of the Civil Rights Act.
A reason for an increase in employee monitoring does not include: A. To achieve greater efficiency at work. B. To avoid lawsuits if employees act in inappropriate ways. C. To make sure employees do not disclose confidential information. D. To reduce the employer's health insurance premiums.
To reduce the employer's health insurance premiums.
Which of the following is not a legal right of shareholders? A. To vote on members for the board of directors. B. To vote on major mergers and acquisitions. C. To vote on changes in the corporate charter and proposals. D. To vote on who will become chief executive officer (CEO)
To vote on who will become chief executive officer (CEO)
Which law allows individuals who sue federal contractors for fraud to receive up to 30 percent of any amount recovered by the government? A. False Standards Act. B. Economic Priorities Act (as amended in 1999). C. U.S. False Claims Act (as amended in 1986). D. Fair Labor Standards Act.
U.S. False Claims Act (as amended in 1986)
The activism of institutional investors in other countries has been spearheaded by: A. U.S.-based pension and mutual funds that in recent years acquired large stakes in foreign countries. B. Foreign institutions that were granted new rights by their governments. C. Managers who became less active in proxy battles on a global level. D. The rising number of individual investors in public service companies.
U.S.-based pension and mutual funds that in recent years acquired large stakes in foreign countries.
Many companies have argued that the evolution of strict liability has: A. Unfairly burdened them with excess costs. B. Decreased liability insurance rates. C. Increased corporate revenues and dividends. D. Changed top management's attitude about the consumer.
Unfairly burdened them with excess costs.
The leading cause of death on the job is due to: A. Falls. B. Vehicle accidents. C. Contact with equipment. D. Murder.
Vehicle Accidents
(chapter 14) 16. A prime social responsibility of business is to safeguard consumers: A. While continuing to supply them with goods and services they want. B. While maintaining high profit margins. C. By supplying consumers with products at the lowest possible cost. D. By providing new technology.
While continuing to supply them with goods and services they want.
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? A. Insider trading. B. Hot-lining. C. Whistle-blowing. D. Snitching.
Whistle-blowing