BA 335 Social Responsibility Exam Ch 13 - 19
What is one reason that firms partner with communities to increase economic development? Multiple Choice To expand environmental sustainability. To develop workplace skills. To control the rate of entrepreneurship. To avoid paying higher taxes.
To develop workplace skills.
The risk online shoppers take when their web profile negatively impacts their credit is known as: Multiple Choice Internet credit reporting. Weblining. Dark money. Crisis management.
Weblining
Which type of supplier is hired to provide products or services directly to a lead firm? Multiple Choice Tier-1. Tier-2. Subcontractors. Networks.
Tier-1.
Which of these statements is not true about supply chain transparency? Multiple Choice A firm's social, ethical, and environmental responsibility is revealed. Technology is enhancing supplier transparency. Brand loyalty among consumers is reduced by a firm's revelations. Recent audits and certifications are publicized.
Brand loyalty among consumers is reduced by a firm's revelations.
The board committee that administers and approves salaries and benefits of high-level managers in a company is called: Multiple Choice Executive. Human resources. Nominating. Compensation.
Compensation.
Businesses can take a number of measures to respond voluntarily to consumer demands. Which of the following is an example of such a measure? Multiple Choice Product liability law reform. Customer call centers. Consumer advocacy groups. Alternative dispute resolution policies.
Customer call centers.
Which of the following is not a goal of consumer protection laws? Multiple Choice Encourage competitive pricing. Facilitate consumers' getting extended credit when making purchases. Correct Provide consumers with better information when making purchases. Protect consumers against possible hazards from products purchased.
Facilitate consumers' getting extended credit when making purchases.
Which type of U.S. company is required to follow the Family and Medical Leave Act (FMLA), and offer up to 12 weeks of unpaid employee leave to address family needs? Multiple Choice Corporations that employ 100 or more people. Firms with at least 50 employees. Only companies that use the gig-economy business model. Small businesses with less than 50 workers.
Firms with at least 50 employees.
The illegal recruitment and movement of people against their will is called: Multiple Choice Temporary labor. Day workers. Forced labor. Farm workers.
Forced labor.
The way organizational members believe others see the organization is called the corporate: Multiple Choice Identity. Reputation. Image. Perception.
Image.
Minority enterprises often do business in locations with: Multiple Choice Low crime rates. Excellent transportation. Low-quality public services. High-income clientele.
Low-quality public services.
In 2015, the largest generation in the workforce was: Multiple Choice Baby boomers. Generation X. Millennials. Generation Y.
Millennials.
If someone is entitled to be treated in a certain way, this refers to a(n): Multiple Choice Relationship. Obligation. Duty. Right.
Right
When a lead firm invests in supplier resources or offers training, this is an example of: Multiple Choice Root cause analysis. Supplier development. Supply chain auditing. Shared value.
Supplier development.
The Occupational Safety and Health Act gives workers the right to a job: Multiple Choice With equal wages for similar kinds of work. With wages that enable an employee to enjoy a decent standard of living. That is free from recognized hazards that are likely to cause death or serious injury. 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.
Minority, women, and disabled veteran-owned firms are accurately described by which of these? Multiple Choice They often operate at an economic advantage. They have a medium rate of business failure. They face limited competition from more established firms. They often partner with larger firms in a diversity supplier role.
They often partner with larger firms in a diversity supplier role.
What is the primary goal of a community relations department? Multiple Choice To improve the financial bottom line. To build relationships with important community groups. To collaborate with other company teams to create policy. Both of these answers are correct: To build relationships with important community groups; and to collaborate with other company teams to create policy.
To build relationships with important community groups.
Which law allows individuals who sue federal contractors for fraud to receive up to 30 percent of any amount recovered by the government? Multiple Choice False Standards Act. Economic Priorities Act (as amended in 1999). U.S. False Claims Act (as amended in 1986). Fair Labor Standards Act.
U.S. False Claims Act (as amended in 1986).
A customer tweeting about a recent bad shopping experience is using which type of media communication? Multiple Choice Paid content. Public service announcement. User-generated content. Event sponsorship.
User-generated content.
The audit committee is required by U.S. law to be: rev: 11_04_2019_QC_CS-188910 Multiple Choice composed of inside directors. financially literate. formally autocratic. composed of low-level employees.
financially literate.
Which industry(ies) have taken the lead in revitalizing neighborhoods? Multiple Choice Construction companies. Life insurance firms. Health insurance companies. Both of these answers are correct: Life insurance firms; and health insurance companies.
Both of these answers are correct: Life insurance firms; and health insurance companies.
Warning consumers about the possible side effects of pharmaceutical drugs is an example of consumer protection against: Multiple Choice Predatory pricing. Incomplete information disclosure. Hazardous products. Violations of individual privacy.
Hazardous products.
States that have adopted right-to-work laws: Multiple Choice Bar companies from forming unions to represent their employees. Prevent unions from requiring all workers they represent to pay fees or dues. Require the formation of unions in all manufacturing organizations. Have taken away the rights of workers in the public sector to form unions.
Prevent unions from requiring all workers they represent to pay fees or dues.
A visual representation of the many links between a lead firm and its suppliers, superimposed on a geographical map is called a: Multiple Choice Linked list. Supply chain map. Supply web. Network map.
Supply chain map.
A legal right of shareholders is: rev: 11_14_2019_QC_CS-190517 Multiple Choice To vote on members for the board of directors. To receive interest, if declared. To publish annual financial reports. To vote on who will become chief executive officer (CEO)
To vote on members for the board of directors.
An example of "insider trading" is: Multiple Choice An auditor using public information about the company to invest in its stock. A marketing executive briefing stock analysts on the company's sales performance. The CEO's cousin offering to buy the company. A company executive passing nonpublic information about an upcoming acquisition to a friend, who traded for a profit.
A company executive passing nonpublic information about an upcoming acquisition to a friend, who traded for a profit.
A good way for a business to express its commitment to corporate citizenship is: Multiple Choice By establishing community relations programs. By behaving responsibly toward all its stakeholders. By correcting problems associated with its operations. All of these answers are correct.
All of these answers are correct.
The law requiring that toys and infant products be tested before sale is called the: Multiple Choice Child Safety Act. Strong Product Safety Bill. Consumer Product Safety Improvement Act. Uniform Safety Testing Bill.
Consumer Product Safety Improvement Act.
The "right to be heard" promises that consumers' interests will: Multiple Choice Be protected against fraudulent or misleading information. Receive full and sympathetic consideration. Be assured satisfactory quality and service at a fair price. Be given all the facts to make an informed choice.
Receive full and sympathetic consideration.
Global businesses that have extended their public relations strategies worldwide should: Multiple Choice Ensure that communications with local media take place in the area's native language. Never decentralize their global public relations programs to ensure the company has "one voice." Assume that there is no anti-American sentiment in the countries where they have operations. Ignore local customs and emerging issues in the locations where they operate.
Ensure that communications with local media take place in the area's native language.
The practice of adapting the job to the worker is called: Multiple Choice Social contracts. Living wages. Electronic monitoring. Ergonomics.
Ergonomics
Emphasizing key points and guiding the media reporter to them is called: Multiple Choice Hooking. Bridging. Flagging. Gapping.
Flagging.
Scenario-based press releases, key discussion points, and procedures to activate the organization's website are all part of which step in an effective crisis management plan? Multiple Choice Get ready before the crisis hits. Communicate quickly, but accurately. Use the Internet. Do the right thing.
Get ready before the crisis hits.
Purposefully planned messages sent to selected media promoting the company without payment to the media is called: Multiple Choice Advertising. Corporate sponsorship. Publicity. Internal communications.
Publicity.
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? Multiple Choice Context for strategy and rivalry. Demand conditions. Stakeholder management. Factor conditions.
Stakeholder management.
Consumer groups have generally opposed the idea of product liability reform using which argument? Multiple Choice Punitive damages should be limited. Strict liability should be retained. The burden of proof should be shifted to consumers. Losers should be made to pay some of the other side's legal bills.
Strict liability should be retained.
What is the first step that lead firms take to develop their suppliers? Multiple Choice Creating shared value. Capability building. Supplier monitoring. Publicizing the results.
Supplier monitoring.
The term civic engagement describes: Multiple Choice The active involvement of businesses and individuals in improving communities. A competitive, free market environment. Strong governmental regulation to control businesses at the municipal level. A close and collaborative business-government relationship.
The active involvement of businesses and individuals in improving communities.
Which of the following is not true about occupational segregation? Multiple Choice It concentrates women in traditionally female-dominated jobs. The pay gap in American businesses persists, in part, because of it. It means that women cannot get the jobs that could break the cycle of relatively low pay. The technology sector is dominated by women.
The technology sector is dominated by women.
Institutional investors are sometimes referred to as: Multiple Choice Main Street investors. Wall Street investors. Inside investors. Outside investors.
Wall Street investors.
According to a recent survey, what percentage of firms would terminate a supplier if serious violations were found? Multiple Choice 7 percent. 26 percent. 48 percent. 97 percent.
48 percent.
A rule of media communication is to: Multiple Choice Be honest. Be current. Be accessible. All of these answers are correct.
All of these answers are correct.
Richard M. Locke argues that global supply chains are best managed through a combination of public and private governance because: Multiple Choice Government-enforced laws give legitimacy to demands for workplace changes. Regulators benefit from record-keeping required by private companies' codes of conduct. Public and private organizations are able to share the enforcement workload. All of these answers are correct.
All of these answers are correct.
Sexual harassment is accurately described by which statement(s)? Multiple Choice Most sexual harassment incidents target women. Sexual harassment is illegal in the United States. The U.S. Equal Employment Opportunity Commission is empowered to sue on behalf of victims. All of these answers are correct.
All of these answers are correct.
Social impacts of global supply chains include: Multiple Choice Wages. Working conditions. Employee health. All of these answers are correct.
All of these answers are correct.
The corporate reputation is accurately described by which statement(s)? Multiple Choice Refers to desirable qualities. Refers to undesirable qualities. Relies on the perceptions of past actions, results, and future prospects. All of these answers are correct.
All of these answers are correct.
An identifying marker placed on a user's computer hard drive used to build profiles of their behavior over time is called a: Multiple Choice Web beacon. Deep packet. Cookie. Firewall.
Cookie
Variation in the important human characteristics that distinguish people from one another is called: Multiple Choice Workforce variability. Diversity. Difference. Affirmative action.
Diversity.
Which of the following is an example of fulfilling social objectives through stock ownership? Multiple Choice Selling stock of companies that refused to do business with nations that produced conflict minerals. Divesting from Chinese companies that made products using forced labor. Selling stock of companies with a below-market rate of return. Investing in Burmese companies that had been accused of human rights abuses.
Divesting from Chinese companies that made products using forced labor.
In what way did Dreamers bring diversity to the U.S. workplace? Multiple Choice They only brought diversity to Texas and California. Most DACA recipients were over the age of 55 and did not join the workforce. Dreamers came to the United States from many global regions. Almost all came from Mexico, which did not increase diversity.
Dreamers came to the United States from many global regions.
Which of the following is not a strategy to help companies get the most benefit from their contributions? Multiple Choice Use targeted business methods to assess the impact of gifts. Align priorities with employee interests. Establish priorities even if they conflict with the firm's core values. Draw on unique competencies of the business.
Establish priorities even if they conflict with the firm's core values.
Under U.S. laws, who has the right to hold an election to choose what union they want to represent them, if any: Multiple Choice Only private workers. Only public workers. Most private and public workers. Only the employer.
Most private and public workers.
The leading cause of death on the job is due to: Multiple Choice Falls. Vehicle accidents. Contact with equipment. Murder.
Vehicle accidents.
An argument against affirmative action is: Multiple Choice It costs American businesses too much money. There are no mechanisms in place to verify that it is actually taking place. It is inconsistent with the principles of fairness and equality. 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? Multiple Choice It is involved in activities promoting the interests of consumers. It conducts extensive tests on selected consumer products and services. It is supported by the federal government. It publishes the results of tests online, with ratings on a brand-name basis.
It is supported by the federal government.
One argument in favor of affirmative action is: Multiple Choice People hired through this program tend to be more dedicated workers. Only the most qualified people are hired through this process. It's easy to monitor the success of affirmative action programs. It levels the playing field to correct past discriminatory hiring practices.
It levels the playing field to correct past discriminatory hiring practices.
The "agency problem" arises when: Multiple Choice Owners manage the company on their own behalf. There is no separation of ownership and control in a company. Managers act in their own interest, rather than in the interest of shareholders. 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.
A good public relations program: Multiple Choice Manages the firm's public image and its relationship with the public. Is separate from the company's public affairs program to avoid conflicts of interest. Should be primarily reactive, responding to issues as they arise. Is necessary only for highly vulnerable companies.
Manages the firm's public image and its relationship with the public.
Which of the following is not a reason for businesses to establish community relations departments? Multiple Choice Working with local governments. Managing donations of goods and services. Encouraging employee volunteerism. Managing international relations projects for economic development.
Managing international relations projects for economic development.
Romantic relationships in the workplace are described by which statement? Multiple Choice Most businesses have strict policies forbidding all romantic relationships in the workplace. OSHA requires businesses to forbid workplace romantic relationships. Many companies allow managers to become romantically involved with subordinates, so long as they do not supervise them directly. 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.
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: Multiple Choice Less important. More important. Obsolete because of social media. A liability because of negative media.
More important.
According to the textbook, Asian American men now have higher median weekly earnings than white American men primarily because: Multiple Choice The Asian group collectively increased connections with upper-level management. Most Asians had earned a bachelor's degree or higher. White men had generally dropped out of management. White women had taken over most of the jobs of white men.
Most Asians had earned a bachelor's degree or higher.
What is one drawback of conducting supplier audits? Multiple Choice Workers trust the auditors to the point of giving away company secrets. Audits scale so well across the supply chain that only general averages can be collected. On-site inspections are expensive. On-site inspections are so fast that teams must conduct hundreds of them in a single day.
On-site inspections are expensive.
Corporations contribute about what share of all giving in the United States? Multiple Choice Nearly 50 percent. Only about five percent. A very generous 75 percent. Sadly, less than one percent.
Only about five percent.
When a mother or father is granted time off when children are born or adopted and during the early months of a child's development, this is called: Multiple Choice The parent track. Baby care. Parental leave. Family leave.
Parental leave.
According to the Institute for Crisis Management this industry is among the top crisis-prone industries because of sophisticated technology found in its products: Multiple Choice Airline. Automobile. Pharmaceuticals. Telecommunications.
Pharmaceuticals.
What was the primary motivator for corporate giving, according to the National Bureau of Economic Research? Multiple Choice Financial. Philanthropical. Political influence. Popularity.
Philanthropical.
Age, ethnicity, gender, mental or physical abilities, race, and sexual orientation fall under which dimension of diversity? Multiple Choice Primary. Secondary. Tertiary. Legal.
Primary.
The mission of the Securities and Exchange Commission (SEC) is to: Multiple Choice Protect shareholders' rights by making sure that stock markets are run fairly. Protect companies from hostile takeovers. Ensure that institutional investors do not take control of company management. 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 Sarbanes-Oxley Act makes it illegal for employers to: Multiple Choice Sue federal contractors for fraud. Retaliate against whistle-blowers who report information that could have an impact on the value of a company's shares. Both of these answers are correct: Retaliate against whistle-blowers who report information that could have an impact on the value of a company's shares; and hire employees who have a prior record of accounting fraud. Hire employees who have a prior record of accounting fraud.
Retaliate against whistle-blowers who report information that could have an impact on the value of a company's shares.
The share of all giving made up by in-kind contributions of products and services has been: Multiple Choice Rising steadily over the past decade. Declining steadily over the past decade. Remaining relatively constant over the past decade. Declining sharply over the past decade.
Rising steadily over the past decade.
Studying the underlying cause of repeated supplier violations is called: Multiple Choice Capability-building. Supplier scoring. Root cause analysis. Supply chain auditing.
Root cause analysis.
Bias within the hiring process refers to: Multiple Choice Always hiring the best fit candidate no matter what his or her physical characteristics are. Selecting only candidates that match a preconceived ideal of the role. Choosing new employees without consideration for their demographic data. Hiring based only on the applicant's knowledge, skills, and abilities.
Selecting only candidates that match a preconceived ideal of the role.
How are directors (members of corporate boards) selected? Multiple Choice Shareholders elect the directors from a list of candidates. The company's CEO appoints the directors. The nominating committee elects the directors. Shareholders with the greatest proportional ownership in the company become directors.
Shareholders elect the directors from a list of candidates.
What is one reason why woman and minorities fail to move into executive or board positions? Multiple Choice Women are more likely to consider alternative courses of action. Women tend to lead with higher levels of empathy, and conflict resolution skills. Minorities prefer staff-level positions throughout their careers. The old boys' network.
The old boys' network.
Which of the following is (are) core rights of consumers? Multiple Choice The right to be represented. The right to purchase. The right to safety. All of these answers are correct.
The right to safety.
Factor conditions are strategic contributions focusing on: Multiple Choice The supply of trained workers, physical infrastructure, and natural resources. Policies that create a more productive environment for competition. The demand for a product or service. All of these answers are correct.
The supply of trained workers, physical infrastructure, and natural resources.
What criteria must be met before a whistle-blower goes public? Multiple Choice The unreported act would do some harm to others. The employee has not yet tried to resolve the issue internally. Reporting the problem publicly may or may not resolve the issue. There is enough potential harm to justify the possible costs of disclosure to the whistle-blower.
There is enough potential harm to justify the possible costs of disclosure to the whistle-blower.
In the case The Ugly Side of Beautiful Nails, the nail salon industry violated which of these worker rights? Multiple Choice To privacy. To organize and bargain collectively. To due process on the job. To a safe and healthy workplace.
To a safe and healthy workplace.
According to a 2016 survey of senior supply chain managers, what is the leading reason to invest in supplier social responsibility? Multiple Choice To reduce costs. To satisfy government regulations. To create a positive image and enhance brand equity. To avoid disruptions of product supply.
To create a positive image and enhance brand equity.
A reason for an increase in employee monitoring does not include: Multiple Choice To achieve greater efficiency at work. To avoid lawsuits if employees act in inappropriate ways. To make sure employees do not disclose confidential information. To reduce the employer's health insurance premiums.
To reduce the employer's health insurance premiums.
The activism of institutional investors in other countries has been spearheaded by: Multiple Choice U.S.-based pension and mutual funds that in recent years acquired large stakes in foreign countries. Foreign institutions that were granted new rights by their governments. Managers who became less active in proxy battles on a global level. 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.
A prime social responsibility of business is to safeguard consumers: Multiple Choice While continuing to supply them with goods and services they want. While maintaining high profit margins. By supplying consumers with products at the lowest possible cost. By providing new technology.
While continuing to supply them with goods and services they want.
When an employee believes his or her 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? Multiple Choice Insider trading. Hot-lining. Whistle-blowing. Snitching.
Whistle-blowing.
Communities depend on business for: Multiple Choice Schools. Health care. The arts. All of the above.
All of the above.
A firm can affect the general public's opinion of its reputation through: Multiple Choice Television advertisements. Billboard messages. Blogs written by CEOs. All of these answers are correct.
All of these answers are correct.
Business depends on the community for: Multiple Choice Education. Public services. Transportation systems. All of these answers are correct.
All of these answers are correct.
Child care assistance in the workplace is accurately described by: Multiple Choice It helps reduce employee absenteeism and tardiness. It aids in recruiting workers by making the company more attractive to parents. It helps retain talented employees. All of these answers are correct.
All of these answers are correct.
Employee Assistance Programs (EAPs) are correctly described by which of these statements? Multiple Choice They offer counseling and follow-up to alcohol and drug abusers. Almost all employers with 1,000 or more workers offer EAPs. Nearly three-quarters of small companies with 50 to 99 employees offer EAPs. All of these answers are correct.
All of these answers are correct.
How do companies encourage their employees to volunteer their time? Multiple Choice By sponsoring specific projects. By offering recognition for service. By publicizing opportunities to serve. All of these answers are correct.
All of these answers are correct.
Reports filed with the SEC provide information on a company's: Multiple Choice Sales and earnings. Depreciation by line of business. Details of foreign operations. All of these answers are correct.
All of these answers are correct.
When lead firms work with suppliers they can create shared value such as: Multiple Choice Higher income for the supplier. Higher quality products for customers. A more stable supply of products. All of these answers are correct.
All of these answers are correct.
Which groups often collaborate when developing industry-wide codes of conduct? Multiple Choice Government officials. NGOs. Companies. All of these answers are correct.
All of these answers are correct.
Which of the following is (are) true regarding a recognizable brand? Multiple Choice Identifies how a company is distinctive from their rivals. Instills an emotional attachment that creates brand loyalty. Customers trust its exceptional value. All of these answers are correct.
All of these answers are correct.
Which of these statements is true regarding lead firms and their suppliers in the wake of the global financial crisis? Multiple Choice The number of widely used suppliers decreased. Lead firms preferred larger suppliers. Lead firms sought ongoing strategic relationships. All of these answers are correct.
All of these answers are correct.
Which of these statements is (are) true regarding sexual harassment? Multiple Choice People wearing sexy clothing. Boys will be boys. An imbalance of power. Workplace comradery.
An imbalance of power.
Which of these programs offer a common auditing tool for sharing data on the labor, environmental and ethical practices of suppliers? Multiple Choice Sustainable Compliance Initiative. Federal Trade Commission. Both Sustainable Compliance Initiative and Sedex Global.
Both Sustainable Compliance Initiative and Sedex Global.
The International Labor Organization (ILO) identifies child labor by which factors? Multiple Choice A child's age. The work hours. The child's work experience. Both a child's age and the work hours.
Both a child's age and the work hours.
Through which stakeholder networks can the public demand a certain level of performance from a firm? Multiple Choice Consumer advocacy groups. Government agencies. A firm's employees. Both consumer advocacy groups and government agencies.
Both consumer advocacy groups and government agencies.
Investors may receive an economic benefit from the ownership of stock by receiving: Multiple Choice Interest. Dividends. Capital gains. Both dividends and capital gains.
Both dividends and capital gains.
As a stakeholder, suppliers' interests include: Multiple Choice Earning income. Utilizing productive capacity efficiently. Building short-term, but profitable, business relationships. Both earning income and utilizing productive capacity efficiently.
Both earning income and utilizing productive capacity efficiently.
Which of these measures is (are) frequently used to rate suppliers when using an integrated supplier scorecard? Multiple Choice Environmental performance. Product quality. Number of employees. Both environmental performance and product quality.
Both environmental performance and product quality.
A strong employer-employee relationship is central to: Multiple Choice Achieving a corporation's economic goals. Satisfying the wishes of those who contribute their skills and talents to the company. Increasing the gross domestic product of a nation. Both of these answers are correct: Achieving a corporation's economic goals; and satisfying the wishes of those who contribute their skills and talents to the company.
Both of these answers are correct: Achieving a corporation's economic goals; and satisfying the wishes of those who contribute their skills and talents to the company.
Companies can combat sexual and racial harassment—and protect themselves from expensive lawsuits—by: Multiple Choice Communicating a zero-tolerance policy on harassment to all employees. Establishing a complaint procedure and acting quickly to resolve any problems. Bribing employees with bonus money to avoid a lawsuit. Both of these answers are correct: Communicating a zero-tolerance policy on harassment to all employees; and establishing a complaint procedure and acting quickly to resolve any problems.
Both of these answers are correct: Communicating a zero-tolerance policy on harassment to all employees; and establishing a complaint procedure and acting quickly to resolve any problems.
The primary goal(s) of the Food and Drug Administration include: Multiple Choice Ensuring the safety and effectiveness of a wide range of consumer products. Prohibiting unfair or deceptive advertising. Reviewing and approving new products before they are released to consumers. Both of these answers are correct: Ensuring the safety and effectiveness of a wide range of consumer products; and reviewing and approving new products before they are released to consumers.
Both of these answers are correct: Ensuring the safety and effectiveness of a wide range of consumer products; and reviewing and approving new products before they are released to consumers.
Which part of the Department of Justice protects the public from being charged excess fees based on one's race? Multiple Choice Consumer Product Safety Commission. Civil Rights Division. Consumer Financial Protection Bureau. Federal Trade Commission.
Civil Rights Division.
Businesses can reduce income inequality by which action? Multiple Choice Adjust minimum wage laws to increase worker pay. Pass a new tax law that benefits workers. Provide very high executive compensation. Commit to paying a living wage to all employees.
Commit to paying a living wage to all employees.
The EU's 2018 General Data Protection Regulation applies to: Multiple Choice Individuals anywhere in the world. Only companies headquartered in the European Union. Companies anywhere who provide services to European customers. Only corporations that provide financial services.
Companies anywhere who provide services to European customers.
A global organization headquartered in London that represents over 200 consumer groups in more than 100 nations is called: Multiple Choice Consumers Union. Consumers International. Public Interest Research Group. Public Citizen.
Consumers International.
Building a positive and ethical reputation requires a firm to: Multiple Choice Offer products that are somewhat better than their competitors. Convey a compelling story about the firm and what it stands for. Avoid attention from the news media. Pay opinion leaders to write positive reviews.
Convey a compelling story about the firm and what it stands for.
A significant business disruption that stimulates extensive news media and social networking coverage is called a(n): Multiple Choice Explosion. Crisis management. Corporate crisis. Human error.
Corporate crisis.
How can a lead firm improve a supplier's performance when the cost to replace the supplier is high? Multiple Choice Engage the supplier in capability-building. Fire the supplier. Report the supplier to the Better Business Bureau. Build the supplier's products internally.
Engage the supplier in capability-building.
Corporate governance involves the exercise of control over a company's: Multiple Choice Finance and accounting departments. Entire corporate direction. Manufacturing facilities. Marketing and human resources departments.
Entire corporate direction.
The directors of a company are a central factor in corporate governance because they: Multiple Choice Exercise formal legal authority over company policy. Have the highest stake in the performance of the company. Have a moral responsibility to serve both the company's employees and customers Inherited the business from their predecessors.
Exercise formal legal authority over company policy.
When women and minorities are highly competent but are unable to attain executive positions, this is typically called: Multiple Choice Transparency. Broken windows theory. Glass ceiling. Glass wall.
Glass ceiling.
Government rules on equal treatment of employees include: Multiple Choice Discrimination on the basis of sexual orientation is prohibited in all employment practices. Government contractors must have written positive affirmative action plans to overcome the past and present effects of discrimination in their work force. Women and men must receive equal pay for performing equal work, but only if the woman is not pregnant. Affirmative action plans must be permanent.
Government contractors must have written positive affirmative action plans to overcome the past and present effects of discrimination in their work force.
An argument that opposes the idea of high executive pay is: High salaries provide an incentive for innovation and risk-taking. Not many individuals are capable of running today's large, complex organizations. Top athletes and entertainers make a lot of money, so top executives should, too. 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.
An argument in support of high executive compensation is: Multiple Choice Inflated executive pay helps U.S. firms compete with foreign rivals. High executive pay drives away talented middle managers who feel unfairly compensated. High salaries provide an incentive for innovation and risk-taking. There is currently a surplus of qualified executive candidates.
High salaries provide an incentive for innovation and risk-taking.
Which of the following is a key feature of effective boards of directors? Multiple Choice Hold regular meetings without the CEO present. Fill all important positions on the board with managers with insider knowledge of the firm. Combine the duties of the board chairman and the chief executive. Ensure that no outside members are included on the board.
Hold regular meetings without the CEO present.
When businesses adopt voluntary policies for protecting the privacy of individuals' information disclosed during electronic transactions, this is an example of: Multiple Choice Industry self-regulation. Privacy legislation. Consumer self-help. Business privacy regulation.
Industry self-regulation.
Why does the inclusion of women on corporate boards improve company performance? Multiple Choice Alternative courses of action are more realistically considered. Women bring different life experiences to discussions. Women are more likely to raise multiple stakeholder concerns. All of these answers are correct.
All of these answers are correct.
Rules in the United States that prohibit competitors from secretly dividing up the market amongst themselves are called: Multiple Choice Antitrust laws. Deceptive advertising. Federal Trade Protection Doctrine. The Right to Privacy.
Antitrust laws.
When firms invest in suppliers to exchange knowledge and collaborate on improvements, they create shared value for: Multiple Choice The supplier only. The lead firm only. Both the supplier and the lead firm. The public.
Both the supplier and the lead firm.
In 2017, the smallest source of philanthropic contributions in the United States came from which organization? Multiple Choice Individuals. Foundations. Corporations. Bequests.
Corporations.
Supporters of declassifying board elections argue that this approach: Multiple Choice Is less costly. Increases accountability and responsiveness to shareholders. Allows the best people to serve longer. Prevents an excess of diversity on boards.
Increases accountability and responsiveness to shareholders.
A supplier that controls critical worker skills and technical know-how holds which type of power over its lead firm? Multiple Choice Economic. Informational. Legal. Voting.
Informational.
Institutional investors are best described by which statement? rev: 11_14_2019_QC_CS-190501 Multiple Choice Institutions invest their funds by purchasing shares of stock in corporations on behalf of their investors or members. The proportion of institutional stock ownership in the United States has declined slowly since the 1960s. Banks and student loans are examples of institutional investors. Institutions accounted for over 90 percent of total U.S. equity value.
Institutions invest their funds by purchasing shares of stock in corporations on behalf of their investors or members.
Which law eliminated certain time restrictions for filing pay discrimination lawsuits? Multiple Choice Lilly Ledbetter Fair Pay Act of 2009. Family and Medical Leave Act of 1993. Equal Opportunity Employment Act of 1972. Equal Pay Act of 1963.
Lilly Ledbetter Fair Pay Act of 2009.
Which of the following statements is not true about shareholders? Multiple Choice They are the legal owners of business corporations. They own equal shares of company assets. They are investors in the company. Managers pay close attention to their needs and interests.
They own equal shares of company assets.
This type of audit is perceived by stakeholders as more objective and reliable: Multiple Choice Internal. Third-party. Government. Crowd-pleasing.
Third-party.
Racial harassment is illegal under: Multiple Choice Title VII of the Civil Rights Act. The Third Amendment to the Constitution. The Equal Pay Act. The Family Medical Leave Act.
Title VII of the Civil Rights Act.
In 2017, median compensation for directors at the largest U.S. corporations was around: Multiple Choice $150,000. $300,000. $750,000. $1,200,000.
$300,000.
Most corporate community relationship departments consist of how many team members? Multiple Choice Around 100, on average. A single individual typically suffices. An average team size is 12. Fewer than three people plus a manager.
Fewer than three people plus a manager.
As shown in Figure 2, in 2015 the countries with the highest and lowest percentages of unionized labor, respectively, were: Multiple Choice Belgium, United States. Iceland, Turkey. Canada, France. United States, Ireland.
Iceland, Turkey.
What media technique is used to promote the general perception of a product or service, rather than promoting its functional attributes? Multiple Choice User-generated content. Issue advertisements. Public service announcements. Image advertisements.
Image advertisements.
Random drug testing of employees is accurately described by which statement? Multiple Choice It screens randomly selected employees at various times through the year. It randomly tests selected applicants before hiring, as a part of a physical examination. It tests an employee believed to be impaired by drugs and unfit for work. It regularly tests employees from randomly selected job categories or job levels.
It screens randomly selected employees at various times through the year.
Many executives believe that a diverse workforce boosts innovation because: Multiple Choice Many unique perspectives contribute to a better solution. Those who think exactly the same develop the most robust ideas. People from poorer countries have to be more creative to survive. People from different backgrounds have to work much harder to communicate.
Many unique perspectives contribute to a better solution.
Organizations with strong positive reputations are generally more successful because they: Multiple Choice Receive fewer opportunities. Are generally less immune to long-term criticism. Often get the benefit of the doubt in uncertain circumstances. Both of these answers are correct: Receive fewer opportunities; and often get the benefit of the doubt in uncertain circumstances.
Often get the benefit of the doubt in uncertain circumstances.
Another term for corporate giving is corporate: Multiple Choice Welfare. Goodwill. Philanthropy. Citizenship.
Philanthropy.
What primary form of corporate giving did Salesforce contribute when working with the Red Cross, according to the case Salesforce's 1+1+1 Integrated Philanthropy Model? Multiple Choice Cash. In-kind contributions. Skills-based assistance. Moral support only.
Skills-based assistance.
When Fidelity partnered with the Capital Good Fund to service loans to disadvantaged communities, this was an example of: Multiple Choice An in-kind contribution. Skills-based volunteerism. Community-based philanthropy. Organizational support.
Skills-based volunteerism.
In some cases, businesses have banded together to agree on how they will treat their customers. This is called: Multiple Choice Code of regulation. Consumer affairs doctrine. Voluntary industry codes of conduct. Industry action standards.
Voluntary industry codes of conduct.
Women in the U.S. workforce are accurately characterized by which of these statements? rev: 03_05_2020_QC_CS-203453 Multiple Choice The participation rate has been between 46 and 47 percent since the late 2000s. A lack of family-friendly business policies has made it difficult for working mothers. The participation rates of women and men in the workforce have diverged. Both of these answers are correct: The participation rate has been between 46 and 47 percent since the late 2000s; and the participation rates of women and men in the workforce have diverged.
Both of these answers are correct: The participation rate has been between 46 and 47 percent since the late 2000s; and the participation rates of women and men in the workforce have diverged.
Groups that collect and combine data from various sources into individual profiles that are sold to retailers and advertisers are called: Multiple Choice Flash cookies. Data aggregators. Internet marketers. 360-degree viewers.
Data aggregators.
Since the mid-1950s the proportion of American workers represented by unions has: Multiple Choice Decreased. Increased. Remained about the same. Grown only in the manufacturing sector.
Decreased
A reason for institutions becoming more assertive in promoting the interests of their member investors is: Multiple Choice Expressing dissatisfaction with management performance by selling a large block of stock would reduce the value of the institution's holdings. Institutional investors are rarely able to influence management policy. Institutions have greater flexibility in selling stocks than do individual investors. Institutions have nominated members on the finance committee of the board of directors. Incorrect
Expressing dissatisfaction with management performance by selling a large block of stock would reduce the value of the institution's holdings.
The right to a safe and healthy workplace is accurately described by which statement? Multiple Choice Over recent years no new categories of accidents or illnesses have emerged. Extensive training and careful precautions are necessary to avoid accidents, injuries, and illness. A very limited number of jobs are potentially hazardous to workers' safety and health. Regulations and enforcement have failed to curb worker accidents.
Extensive training and careful precautions are necessary to avoid accidents, injuries, and illness.
This U.S. agency enforces the laws prohibiting deceptive advertising: Multiple Choice Congress. Consumer Product Safety Commission. Federal Trade Commission. Department of Justice.
Federal Trade Commission.
Private governance is most likely to emerge under which of these conditions? Multiple Choice Small lead firms have leverage over larger suppliers. Large lead firms have leverage over larger suppliers. The public is totally satisfied with a firm's social and environmental performance. Firms with highly visible brands are more vulnerable to reputational damage.
Firms with highly visible brands are more vulnerable to reputational damage.
One important aspect of the new social contract regarding fixed pension benefits is: Multiple Choice Pension benefits are on the rise. These benefits have remained a solid incentive for workers. Fixed pensions have been reduced in the U.S. by around 90 percent. Defined contribution plans now provide more returns and less risk.
Fixed pensions have been reduced in the U.S. by around 90 percent.
Which of the following represents a type of corporate crisis? Multiple Choice Acts of God. Management indecision. Mechanical problems. All of these answers are correct.
All of these answers are correct.
Why should businesses get involved in the community? Multiple Choice To win local support for business activity. To build social capital. To meet stakeholder demands. All of these answers are correct.
All of these answers are correct.
In 2018, what was the most valuable brand according to Brand Directory? Multiple Choice Google. Apple. Samsung. Amazon.
Amazon.
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: Multiple Choice Bull market. Volatile market. Bear market. Capital appreciation.
Bear market.
During crisis management, doing the right thing should include: Multiple Choice Accepting responsibility. Expressing regret. Minimizing the seriousness of the problem. Both accepting responsibility and expressing regret.
Both accepting responsibility and expressing regret.
According to the new social contract: Multiple Choice The employer is obligated to provide long-term job security. Companies try to attract workers by giving them interesting and challenging work. Job security is based on seniority, but salaries may be lowered for poor performance. The employer is without any responsibilities toward employees.
Companies try to attract workers by giving them interesting and challenging work.
A 2018 Harris poll indicated that some firms, such as Amazon, Tesla Motors, and Patagonia, have: Multiple Choice Paid only marginal attention to the public's perception of their reputation. Earned a high reputation quotient. Ignored the public's concern for a good reputation. Dropped off lists that recognize firms for their reputation.
Earned a high reputation quotient.
Collaborative partnerships between business, government, and communities have been particularly successful in which social area? Multiple Choice Law enforcement. Education. Health care. Immigration.
Education.
Which of these situations is not a reason for a firm to communicate through the media? Multiple Choice Repairing a damaged image. Ignoring or downplaying an organizational crisis. Managing its public relations. Engaging with multiple stakeholders.
Ignoring or downplaying an organizational crisis.
Codes of conduct are accurately described by which statement? Multiple Choice Most early codes of conduct were developed by individual companies. The adoption rate of industry-specific codes of conduct is currently decreasing. Standard-setting organizations have failed to influence industries and individual firms. The costs of building common industry standards have become prohibitive.
Most early codes of conduct were developed by individual companies.
Which major consumer right was violated according to the discussion case Volkswagen's "Clean Diesel" Campaign? Multiple Choice Right to choose. Right to privacy. Right to be heard. Right to be informed.
Right to privacy.
Trading stocks in advance of large institutional investment moves is called: Multiple Choice Front-running. Divestment. Social screening. Hedge fund betting.
Front-running.
Where are workers not permitted to form independent unions? Multiple Choice Europe. Some communist countries. Some military dictatorships. Both some communist countries and some military dictatorships.
Both some communist countries and some military dictatorships.
The major federal consumer protection agencies are authorized by law to: Multiple Choice Intervene directly into the very center of free market activities, if that is considered necessary to protect consumers. Substitute government-mandated standards for decision making by private buyers and sellers. Substitute private manufacturing standards for government-mandated standards. Both of these answers are correct: Intervene directly into the very center of free market activities, if that is considered necessary to protect consumers; and substitute government-mandated standards for decision making by private buyers and sellers.
Both of these answers are correct: Intervene directly into the very center of free market activities, if that is considered necessary to protect consumers; and substitute government-mandated standards for decision making by private buyers and sellers.
Which of these statements is true regarding the Class Action Fairness Act of 2005? Multiple Choice Lawyers were restricted from shopping for friendly venues to try interstate cases. Excessive attorney compensation was limited. The burden of proof was shifted to government. Both of these answers are correct: Lawyers were restricted from shopping for friendly venues to try interstate cases; and excessive attorney compensation was limited.
Both of these answers are correct: Lawyers were restricted from shopping for friendly venues to try interstate cases; and excessive attorney compensation was limited.
The "gig" (or sharing) economy is accurately described by which of these? Multiple Choice Many companies have become more cost-efficient. Risk has shifted from the worker to the company. The generally low wages have increased the welfare burden on the government. Both of these answers are correct: Many companies have become more cost-efficient; and the generally low wages have increased the welfare burden on the government. Correct
Both of these answers are correct: Many companies have become more cost-efficient; and the generally low wages have increased the welfare burden on the government. Correct
Which of the following describe why the consumer movement exists? Multiple Choice Services have become less specialized. Some product advertising claims have been inflated. Some businesses have violated the public's privacy. Both of these answers are correct: Some product advertising claims have been inflated; and some businesses have violated the public's privacy.
Both of these answers are correct: Some product advertising claims have been inflated; and some businesses have violated the public's privacy.
Brand management often involves conveying what about a product or service? Multiple Choice The solutions provided. The disadvantages of the product or service. The expected experience. Both the solutions provided and the expected experience.
Both the solutions provided and the expected experience.
A living wage has been defined as a wage that: Multiple Choice Equals or exceeds the minimum wage established by law. Equals or exceeds one-and-a-half times the minimum wage established by law. Supports the basic needs of an average-sized family, based on local prices. Supports half the basic needs of an average-sized family, based on local prices.
Supports half the basic needs of an average-sized family, based on local prices.
Which of these channels represents a traditional media outlet? Multiple Choice Blogs. Cell phones. Television. Podcasts.
Television.
What happened to United Airlines' reputation after several in-flight incidents were reported, according to the discussion case United Airlines—Navigating a Social Media Storm? Multiple Choice The airline's reputation improved slightly. The company's public rating dropped significantly. United's reputation suffered, but not enough to fall behind American, Delta, or Southwest. After the firm defended their actions, there was little to no effect on their reputation.
The company's public rating dropped significantly.
Consumers have become more dependent on businesses for product quality because: Multiple Choice The complexity of products makes choices complicated for consumers. Instructions for use or care of product are provided in clear and simple language. Their technical competence allows them to inspect the products thoroughly. Competition has forced manufacturers to market lower-quality goods.
The complexity of products makes choices complicated for consumers.
Benefits of managing diversity and inclusion effectively includes all except: Multiple Choice The federal government provides tax breaks. Customer service is more effective. These businesses are better able to attract and retain workers from a variety of backgrounds. Businesses with a diverse workforce boost innovation for the firm.
The federal government provides tax breaks.
Which of the following is not a function of board committees? Multiple Choice The executive committee works closely with top managers on business matters. The audit committee reviews the company's financial reports. The compensation committee administers and approves salaries and benefits. 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.
The current trend in the United States of firms' eliminating domestic partner benefits is largely due to: Multiple Choice The legalization of same-sex marriage in 2015. The costs became prohibitive. State laws banned domestic partner insurance coverage. Insurance companies refused to provide coverage.
The legalization of same-sex marriage in 2015.
