MNGT 482: Exam 2

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? a. The Federal Trade Commission b. The Consumer Product Safety Commission c. The Food and Drug Administration d. The Department of Justice (Anti-Trust Division) e. The Consumer Reports

a. The Federal Trade Commission

The view that it's in the company's self interest in the long term to provide value to its customers, to help its employees grow, and to behave responsibly as a global corporate citizen is called: a. an enlightened self-interest b. a shared view of CSR c. a classical view of CSR d. an iron law of responsibility

a. an enlightened self-interest

Most corporate boards perform their work through _______ with the most important one being: a. committees, audit b. committees, compensation c. general sessions, nominating d. general sessions, executive

a. committees, audit

The concept of corporate social responsibility (CSR) has evolved from which of the following? a. corporate stewardship b. corporate social responsiveness c. corporate/business ethics d. corporate/global citizenship e. all of the above

a. corporate stewardship

Consumers have become more dependent on businesses for product quality because? a. the complexity of products makes choices complicated for consumers b. competition has forced manufacturers to market lower-quality goods c. all of the above

a. the complexity of products makes choices complicated for consumers

Polygraph testing has been replaced by written psychological tests. a. true b. false

a. true

The consumer's right to privacy assures that information disclosed in the course of a commercial transaction is not shared with others unless authorized a. true b. false

a. true

Two types of stockholders are individual and institutional investors with the latter holding almost twice the value of individual holdings as of 2010. a. true b. false

a. true

The fact that revenues of some large corporates are about equal to the entire economic output of some countries reflects that magnitude of: a. Corporate responsibility b. Corporate power

b. Corporate power

Which of the following statements is true about the organization Consumer Reports? a. it is supported by the Federal Government (ex. receives funding) b. it conducts tests on consumer products/services and publishes results in its magazine c. it's involved in promoting the interest of buyers and sellers d. all of the above

b. it conducts tests on consumer products/services and publishes results in its magazine

The Latin phrase, caveat emptor, means: a. let the seller beware b. let the buyer beware c. let the government beware d. all of the above

b. let the buyer beware

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. not consider for employment employees who have a a prior record of accounting fraud d. all of the above

b. retaliate against whistle-blowers who report information that could have an impact on the value of a company's shares

An important mechanism for aligning the interests of the corporation and its stockholders with those of its top managers is: a. stockholder resolution b. agency c. executive compensation d. all of the above e. only a and b are correct

c. executive compensation

Privacy rights seek to protect the employees' private lives from: a. competitors' actions b. workplace violence c. intrusive business actions d. pressure to unionize e. all of the above

c. intrusive business actions

Which of the following is a primary objective of stock ownership? a. achieve social objectives b. achieve ethical objectives c. to make money d. take control of the company in a hostile takeover bid e. all of the above

c. to make money

A reason for an increase in employee monitoring includes: a. to avoid lawsuits in case employees act inappropriately b. to achieve greater efficiency at work c. to make sure employees do not disclose confidential information d. all of the above e. only a and b are correct

d. all of the above

Which of the following is an argument against corporate social responsibility? a. creates an imbalance between corporate power and its economic responsibility b. requires skills businesses may lack c. a majority of stockholders are against it d. all of the above

d. all of the above

Which of the following is an argument favoring employee drug testing? a. it improves employee productivity b. it decreases employee theft and absenteeism c. it promotes safety in the workplace d. all of the above

d. all of the above

Which of the following is 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. not investing in Burmese companies that had been accused of human rights abuses d. all of the above

d. all of the above

Which of the following is/are a right(s) of consumers? a. the right to safety b. the right to be heard c. the right to be informed d. all of the above e. only a and b are correct

d. all of the above

Why would businesses seek to discourage government regulation through acts of corporate social responsibility? a. regulations add economic costs b. power should be as decentralized as possible in a democratic society c. freedom from regulation provides businesses with more freedom in their decision making d. all of the above

d. all of the above

Which of the following companies is being the most socially responsible? a. halting its production of toxic gases after it discovered that consumers objected to this practice and threatened legal action b. trying to maximize profits and then contributing to an environmental protection fund c. changing its product design to comply with regulatory mandates d. trying its best to operate in a way that helps local students get education and jobs

d. trying its best to operate in a way that helps local students get education and jobs

Which of the following is a principle of good corporate governance? a. select outside directors to fill most positions b. align director compensation with corporate performance c. evaluate the board's own performance on a regular basis d. appoint an independent chairman of the board e. all of the above

e. all of the above

Employees in the United States have a legal right to: a. unionize and bargain collectively b. safe and healthful workplace c. employment (secure job) d. all of the above e. only a and b are correct

e. only a and b are correct