BA310 - Test 3A (MindTap Homework - Unit 05/06/07 Reading Review)

Why was Cintas held responsible for an accidental death? a. Because employees violated OSHA rules repeatedly and no action was taken to stop them. b. All accidental deaths in the workplace result in an OSHA penalty. c. Because the employee killed had not been given training. d. Because it was a serious first-time violation.

a. Because employees violated OSHA rules repeatedly and no action was taken to stop them. (Correct. OSHA had video of employees violating the moving belt rule and using their knees to stuff clothes in the dryers.)

Which of the following is comparable to the Categorical Imperative? a. The Golden Rule b. Moral relativism c. Stakeholder theory d. Rights theory

a. The Golden Rule (Correct. Both the Golden Rule and the Categorical Imperative essentially ask, "If everyone operated by your rules, would you be comfortable?")

Which of the following did not happen as a result of the accident at Bhopal? a. The victims and surviving family members of deceased victims were able to successfully sue and recover for damages in US courts. b. The Indian government took over the plant. c. Union Carbide was eventually acquired by another chemical company. d. CEO Warren Anderson could not return to India because of criminal charges there.

a. The victims and surviving family members of deceased victims were able to successfully sue and recover for damages in US courts. (Correct. The victims were not permitted to recover in US courts.)

How did GlaxoSmithKline get money to Chinese officials? a. Through a travel agency with trips and other perks b. Through commissions on prescription drugs c. GlaxoSmithKline did not pay bribes to Chinese officials, only doctors. d. All of these are correct.

a. Through a travel agency with trips and other perks (Correct. Funneling money through travel agencies allowed for substantial payments and perks without red flags on internal controls or questions about payments.)

In the FIFA case, where were payments made? a. To FIFA officials b. To government officials c. To representatives of sponsor companies d. All of these are correct.

a. To FIFA officials (Correct. The goal was to obtain votes among FIFA members for contracts and to influence the location of the World Cup.)

How did the reduction in Kodak's taxes help Charles Schwab, the assessor? a. As the assessor, the reduction meant fewer hearings and a savings to the public. b. His splitting percentages of taxes saved with Kodak employees. c. As the assessor, lower property values represent the goal for the country. d. None of these are correct.

b. His splitting percentages of taxes saved with Kodak employees. (Correct. The scheme was set up to benefit all of them if Kodak paid less in taxes.)

If employers and admissions officers use Google searches and Facebook to look up applicants, which practice could result in discrimination charges? a. The practice of using Google searches and Facebook to find information about applicants is discriminatory in itself. b. It is discriminatory if there is selective checking and all applicants are not searched for or examined in the same way. c. It is discriminatory if they search without the applicant's permission. d. None of these are correct.

b. It is discriminatory if there is selective checking and all applicants are not searched for or examined in the same way. (Correct. Uniformity is critical in using these search tools in order to prevent discrimination charges.)

What was the problem with the American Red Cross's fundraising? a. It was unable to raise funds. b. It was not using funds for the same purposes donors assumed when giving funds. c. There was embezzlement at the Red Cross. d. There was embezzlement at the Red Cross, and it was unable to raise funds.

b. It was not using funds for the same purposes donors assumed when giving funds. (Correct. Donors gave money for one purpose, but their funds were used for other purposes.)

What cultural factor influenced the behaviors of the mechanics in Sears auto centers? a. There was a lack of adequate parts. b. The mechanics were not paid by the hour but by the number of customer-authorized repairs. c. Compensation was tied to speed of repair work. d. All of these are true.

b. The mechanics were not paid by the hour but by the number of customer-authorized repairs. (Correct. The compensation system was a cultural factor that influenced mechanics' recommendations to customers.)

What was Facebook doing in computing its ad metrics that was deceptive to advertisers? a. Facebook was misrepresenting the time that the ads actually appeared on Facebook. b. Facebook was extending the ad running time and charging according to the additional time it added. c. Facebook was dropping viewing times of less than three seconds from its video metrics computation. d. Facebook was dropping viewing times of more than three seconds from its video metrics computation.

c. Facebook was dropping viewing times of less than three seconds from its video metrics computation. (Correct. Facebook was able to generate higher revenues by dropping the quick views and misrepresenting ad play time to advertisers to get higher rates.)

Why was Chiquita making payments to a terrorist group? a. To clear its products for export b. To ensure safe passage of its products to ports c. For protection of its employees d. All of these are correct.

c. For protection of its employees (Correct. Without the payments, Chiquita could not guarantee safety for its employees.)

What did events in Wisconsin reveal about the state of public pension funding? a. That public pension funds were in better shape than private company pension funds b. That public pension funds were funded adequately c. That public pension funds required participants to pay in more d. All of these are correct.

c. That public pension funds required participants to pay in more (Correct. The whole battle in Wisconsin was over the issue of participants paying in more.)

How was the customer overcharge scheme uncovered at Sears? a. Through customer complaints b. Through a whistleblower mechanic's report c. Through the use of undercover agents d. Through a whistleblower mechanic's report and the use of undercover agents

c. Through the use of undercover agents (Correct. California sent in agents twice and unnecessary repairs were done.)

Which of the following was the beginning of the international labor rights movement? a. Levi Company's withdrawal from China b. The Kathie Lee Gifford child labor revelations c. Nike production in Vietnam d. Nike factory conditions in Malaysia

a. Levi Company's withdrawal from China (Correct. Levi's departure from China in 1993 raised the level of consciousness about these issues.)

Which of the following is a consequence of the failure to confront individuals about difficult issues? a. Liability increases. b. It often postpones the issue until it is resolved on its own. c. Liability decreases because confrontation is avoided. d. None of these are correct.

a. Liability increases. (Correct. The failure to take action results in increased liability.)

What study showed that employers keep two sets of books on employee safety? a. The Department of Labor study on safety goals b. The study that compared workers' compensation claims to employer-reported injuries c. The study on non-work related injuries d. The OSHA reportable injury study

b. The study that compared workers' compensation claims to employer-reported injuries (Correct. Injuries reported by employers were 24% to 49% lower than workers' compensation claims.)

Why did Walmart terminate its contract with Draft FCB? a. Because of the perks Walmart's representatives were given in order to win that contract. b. Because one of its representatives had an affair with a Draft FCB employee. c. Because Walmart's CEO was friends with Draft FCB's CEO. d. None of these are correct.

a. Because of the perks Walmart's representatives were given in order to win that contract. (Correct. Walmart uncovered conflicts of interests as well as violations of its policies for employees accepting gifts from vendors.)

Which of the following did former Governor Bob McDonnell and his wife not receive from business man Jonnie Williams? a. Campaign contributions b. Private jet travel c. $15,000 for the McDonnell's daughter's wedding reception d. None of these were received by the McDonnells from Jonnie Williams.

a. Campaign contributions (Correct. Mr. Williams gave the McDonnells everything from money to loans to the use of his vacation home, but oddly he did not make campaign contributions.)

Which of the following will afford an employer the greatest likelihood that an English-only policy will not be determined to be discriminatory? a. If the policy is necessary for the safe operations of the employer's business because a common language is needed b. If the policy applies universally at all times at work c. If the policy applies during breaks and lunch hours d. All of these are correct.

a. If the policy is necessary for the safe operations of the employer's business because a common language is needed (Correct. The policy must be necessary in some business sense to be allowed.)

When companies that receive tax breaks from local governments for establishing plants in certain locations renege on their side of the package, what are the local government's rights? a. In most circumstances, local governments have very few rights of recovery. b. The local government can take property by eminent domain in order to pay back taxes. c. The businesses will owe the amount of taxes that they should have paid. d. All of these are correct.

a. In most circumstances, local governments have very few rights of recovery. (Correct. Unless the agreement provides for recovery or there is a statute that permits recovery, local governments have very few rights.)

Why did AES pull out of its Kazakhstan operations? a. It was facing an antitrust suit. b. It was difficult to manage workers there c. Customers could not pay their bills. d. All of these are correct.

a. It was facing an antitrust suit. (Correct. Managers left the country out of fear of being criminally charged.)

What happened with Pfizer's proposed research facility in New London, Connecticut? a. It was never built. b. It was built by the city of New London. c. It could not be built because the U.S. Supreme Court ruled in favor of the landowners. d. All of these are correct.

a. It was never built. (Correct. Despite promises, the facility was never built, and the land remains razed and unused.)

Which of the following was included in the infant formula code of ethics following Nestle marketing efforts? a. Milk nurse commissions were banned. b. Infant formula ads were prohibited. c. The sale of infant formula to the public was banned in third-world countries. d. All of these are correct.

a. Milk nurse commissions were banned. (Correct. The payment structure was a key factor in sales, and it was banned under the code.)

In addition to the U.S. findings related to Siemens' bribery scheme, what other problems did the U.S. investigation uncover? a. That Siemens lacked effective internal controls that would have prevented managers from making the payments b. That Siemens managers kept some of the bribe money for themselves c. That Siemens was not subject to U.S. jurisdiction because bribery was acceptable in Germany at that time d. All of these are correct.

a. That Siemens lacked effective internal controls that would have prevented managers from making the payments (Correct. The lack of internal controls was referred to as "stunning.")

What is the basis of the ongoing litigation against Chiquita for its operations in Colombia? a. Violations of the FCPA b. Alien Tort Statute c. Fair Trade Act d. Alien Tort Statute and violations of the FCPA

b. Alien Tort Statute (Correct. This statute allows for recovery of human rights violations against citizens of other countries by US companies operating in those countries.)

What ethical issue was underlying the problems in the JCPenney buyer case? a. False advertising (impression) b. Conflict of interest c. Organizational abuse d. Interpersonal abuse

b. Conflict of interest (Correct. The buyer was accepting payments from vendors.)

What is the usual original length of a subprime auto loan? a. Nine months b. One month c. One year d. 24 months

b. One month (Correct. The loans are high-interest loans designed to get quick cash to those who are financially strapped and have poor credit scores.)

Which of the following actions was taken by Sears involving its auto repair shops following charges by the State of California? a. Commission-based compensation systems were renewed. b. Sears implemented its own audit system for the auto repair shops. c. Sears ran ads denying the allegations. d. All of these are correct.

b. Sears implemented its own audit system for the auto repair shops. (Correct. Sears created a system whereby it could monitor what was happening in its auto repair shops.)

What was the issue in the contract dispute between Paul Ceglia and Mark Zuckerberg regarding the formation of Facebook? a. That there was no written agreement b. That there were questions about the agreement's authenticity c. That Paul Ceglia was not present for the creation of Facebook d. That Mark Zuckerberg stole Paul Ceglia's program

b. That there were questions about the agreement's authenticity (Correct. Experts testified that the second page had been aged in the sun, that there were clip marks on it where it hung in the sun, and that no one could be sure that it was real.)

What happened when Ikea terminated a manager for taking kickbacks for awarding generator contracts? a. The Russian courts affirmed Ikea's right to terminate the manager. b. The Russian courts required Ikea to pay damages to the generator leasing companies that paid the manager the kickbacks. c. The Russian tax authority audited Ikea. d. All of these are correct.

b. The Russian courts required Ikea to pay damages to the generator leasing companies that paid the manager the kickbacks. (Correct. Even though the lease generator company was terminated for paying kickbacks, Ikea ended up in breach of contract and had to pay damages.)

What was the issue in PwC's legal battle with Russian authorities? a. Facilitation payments made by PwC to begin its operations in Moscow b. The alleged concealment of income to help a client avoid income taxes c. PwC's failure to retain work papers d. All of these are correct.

b. The alleged concealment of income to help a client avoid income taxes (Correct. The Russian government felt that Yukos was not paying enough in taxes.)

Which of the following is correct about penalties under the FCPA? a. Only individuals are punished for violations, not the companies themselves. b. The profits earned as a result of a contract obtained through a bribe can be recovered as part of the penalty for an FCPA violation. c. There are no prison terms. d. The United States has no jurisdiction over foreign companies under the FCPA.

b. The profits earned as a result of a contract obtained through a bribe can be recovered as part of the penalty for an FCPA violation. (Correct. Under modifications, profits are an alternative remedy to fines.)

What conflict of interest arises in actuaries who are certifying the adequacy of pension funds? a. Unless they are acting gratuitously, they are conflicted because of being compensated. b. Those who provide actuaries compensation have additional costs if the actuary concludes that more funding is needed. c. They are political figures and have concerns about re-election. d. All of these are correct.

b. Those who provide actuaries compensation have additional costs if the actuary concludes that more funding is needed. (Correct. Companies do not want to put more money into the fund, and government entities do not want to raise taxes in order to adequately fund the pension plan.)

What penalty does the United States want to impose on Walmart for alleged FCPA violations that Walmart is resisting? a. A fine b. A prohibition on doing business in Mexico c. A prohibition on federal contracts d. A fine and a prohibition on doing business in Mexico

c. A prohibition on federal contracts (Correct. Walmart would not be permitted to accept food stamps, a substantial amount of its business.)

Which case did not involve a conflict of interest issue? a. JCPenney and Its Wealthy Buyer b. The Trading Desk, Perks, and "Dwarf Tossing" c. Aaron Feuerstein and Malden Mills d. The Analyst Who Needed a Preschool

c. Aaron Feuerstein and Malden Mills (Correct. There were no conflicts of interest issues in this case.)

Why did JCPenney begin an investigation of its buyer, Jim Locklear? a. Because it received an anonymous tip from one of its vendors b. Because Locklear's performance was weak c. Because of Locklear's lifestyle d. All of these are correct.

c. Because of Locklear's lifestyle (Correct. Locklear's salary could not have supported his spending habits and obligations.)

Why did Stanford University have to return money to the federal government? a. Because it had not completed the research required under its federal grants b. Because its scientists had falsified research data c. Because of unauthorized overhead expenses d. All of these are correct.

c. Because of unauthorized overhead expenses (Correct. Stanford claimed many unrelated expenses in order to increase its overhead reimbursement from the federal government.)

Why did Darleen Druyun receive an additional three months on her prison sentence? a. Because she got Michael Sears hired at Boeing as well. b. Because she destroyed documents. c. Because she did not disclose pricing breaks that she gave to Boeing. d. All of these are correct.

c. Because she did not disclose pricing breaks that she gave to Boeing. (Correct. She showed Boeing favoritism in exchange for her daughter and son-in-law being hired.)

Following its meeting with the Justice Department regarding its payments, what did Chiquita do? a. Immediately stopped making the payments in Colombia b. Immediately closed its facilities in Colombia c. Continued making the payments in Colombia for almost one year d. Immediately stopped making payments and closed its facilities in Columbia

c. Continued making the payments in Colombia for almost one year (Correct. Chiquita continued its payments as usual following the meeting.)

What was the eleventh commandment at Siemens? a. Find a way to pay. b. Useful expenditures are a means of just doing business. c. Don't get caught. d. Don't get greedy.

c. Don't get caught. (Correct. They were not concerned about the bribes themselves; they did not want to get caught.)

What has been a consequence of liberal return policies for merchandise? a. Retail stores have increased sales. b. Buyers have fewer choices in goods. c. Employees' compensation has been affected. d. All of these are correct.

c. Employees' compensation has been affected. (Correct. Employees who are on commission have difficulty planning and budgeting because of liberal return policies and long timeframes for returns.)

What did Jack Grubman do in exchange for Sandy Weill's help in getting his twins into a prestigious preschool? a. He hired Weill's grandson into the intern program. b. He gave WorldCom a good rating. c. He gave AT&T a good rating. d. He supported Weill for CEO.

c. He gave AT&T a good rating. (Correct. The goal was to boost AT&T's rating so that AT&T's CEO would support Weill for CEO.)

What factor(s) did partners give for not awarding Anne Hopkins a promotion? a. She did not generate sufficient revenue. b. Her clients complained. c. Staff found her difficult to work with. d. All of these are correct.

c. Staff found her difficult to work with. (Correct. She was abusive with the staff.)

What response did Subway give to the allegations that its "Footlong" sub was not actually 12 inches in length? a. That "Footlong" is the name of the sandwich and not its actual length b. That baking pans and dough placement result in varying length of the sandwich rolls c. That "Footlong" is only the name of the sandwich, and that baking pans and dough placement result in varying length d. None of these are correct.

c. That "Footlong" is only the name of the sandwich, and that baking pans and dough placement result in varying length (Correct. Both explanations were offered by Subway.)

What part of the Johnson Control policy on which employees could work around lead was problematic for the court on the issue of discrimination? a. That there are health concerns about employees being exposed to lead b. That there are health effects on fetuses c. That the policy did not require proof of sterilization for men d. All of these are correct.

c. That the policy did not require proof of sterilization for men (Correct. This part of the policy undermined the health effects argument.)

Why did the United States vote against the WHO code of ethics on sales of baby formula? a. The United States wanted no restraints on infant formula sales. b. The United States felt infant formula played a critical role in infant health. c. The United States did not want the code to be mandatory. d. All of these are correct.

c. The United States did not want the code to be mandatory. (Correct. The United States did not feel that a code of ethics should be mandatory.)

Why do economists believe Brazil's economy has struggled so much? a. The lack of production facilities b. Tariff structure c. The amoral nature of Brazilian society d. All of these are correct.

c. The amoral nature of Brazilian society (Correct. Free markets cannot function where there is rampant distrust, bribery, espionage, and murder.)

Which of the following is an FDA requirement for celebrity endorsement tweets of prescription drugs? a. The celebrity must disclose how much the drug company is paying them. b. The celebrity must disclose the drug's negative side effects. c. The celebrity must have actually used the prescription drug. d. All of these are correct.

c. The celebrity must have actually used the prescription drug. (Correct. All ads by celebrities for prescription drugs have had this requirement even before Twitter existed.)

What does "Ban the Box" refer to? a. The creation of English only zones in the workplace b. The prohibition of tattoos in visible areas on employees c. The elimination of employment application disclosures of felony convictions d. None of these are correct.

c. The elimination of employment application disclosures of felony convictions (Correct. The "box" is the place to check for felony convictions.)

What moral hazard resulted from the creation of the Pension Benefit Guaranty Corporation? a. The requirement of actuarial accountability introduced a conflict of interest. b. Pension plan obligations were no longer discharged in bankruptcy. c. The presence of PBGC reduced accountability for pension plan sponsors. d. Congressional pension plans were subject to reform.

c. The presence of PBGC reduced accountability for pension plan sponsors. (Correct. With the presence of this stopgap measure on pension plan payouts, the incentive to behave responsibly in funding pension plans was reduced.)

What happened to the three-wheel all-terrain cycles that were banned in the United States? a. They were destroyed under an order by the CPSC. b. They were dismantled and parts were used in redesigned, safer, four-wheel cycles. c. They were sold in other countries. d. None of these are correct.

c. They were sold in other countries. (Correct. Known as product-dumping, there are many examples like this one.)

What did Thomas Jefferson believe was the most honorable way to handle pirates? a. By paying ransoms b. Through international diplomacy c. Through the use of force d. None of these are correct.

c. Through the use of force (Correct. President Jefferson also believed using force was the most economical way of dealing with pirates.)

When Intel was informed about the errors in mathematical computations caused by its microchip, the company: a. recalled the chip and offered replacements to all customers experiencing the errors. b. worked with customers to provide a fix for the error. c. lost value in its shares and had public relations issues. d. All of these are correct.

c. lost value in its shares and had public relations issues. (Correct. Intel looked at the cost of replacement and wanted to get away with doing as little as possible.)

Who among the following is not covered under the FCPA? a. NGOs b. Elected officials c. Political parties d. All of these are correct.

d. All of these are correct. (Correct. All of these and more, including foreign officials of any type, are covered under the FCPA.)

What alternatives did Costco propose to Kimberly Cloutier to accommodate her piercings? a. Covering the piercings with a bandage b. Substituting clear plastic rings c. Removing the ring d. All of these are correct.

d. All of these are correct. (Correct. Costco proposed all three alternatives.)

Which of the following is not an issue in international factories? a. Suicides b. Weak foundations and structures in factory buildings c. Child labor d. All of these are issues in international factories.

d. All of these are issues in international factories. (Correct. These are all ongoing issues in the international production supply chain.)

Which of the following is not a question for reviewing an effective performance evaluation? a. Have I told the employee the truth? b. Are the evaluation ratings consistent with what I told the employee? c. Did I give examples of meeting or not meeting standards of performance? d. All of these are questions that should be asked about giving an effective performance evaluation.

d. All of these are questions that should be asked about giving an effective performance evaluation. (Correct. These are the questions outlined in the reading.)

Which factors contributed to the increasing failure rates of pension plans? a. Increasing number of retirees b. Declining market performance c. Actuarial assumptions d. All of these contributed to increasing pension plan failures.

d. All of these contributed to increasing pension plan failures. (Correct. These three factors were critical in the increasing failure rates.)

What has Nike done in the United States to ease production pressures in other countries? a. Sent more managers from the United States over to their foreign plants to help with production b. Increased prices to allow for higher wages and better conditions c. Opened factories in the United States d. Avoided last-minute design changes

d. Avoided last-minute design changes (Correct. Nike has discovered that last-minute demands place increased pressure on foreign production.)

What did Mark Zuckerberg do that resulted in dissent among Facebook employees? a. He implemented an office romance policy. b. He did not want to remove speech of a political candidate. c. He supported the First Amendment rights of a controversial Silicon Valley CEO. d. Both b and c

d. Both b and c (Correct. Employees reacted to Mr. Zuckerberg supporting the rights to viewpoints in two different political situations.)

What happened to Fidelity as a result of the public disclosure of trading desk activities? a. Loss of credibility with regulators b. Loss of fund shareholders c. Exoneration by NASD (FINRA) d. Both loss of credibility with regulators and loss of fund shareholders

d. Both loss of credibility with regulators and loss of fund shareholders (Correct. Both statements are true. Adverse publicity also had an effect on Fidelity.)

How many jobs did Robert Gadams have as a vice principal before anyone took action to remove him from his contact with students because of behavior? a. Two b. Three c. Four d. Five

d. Five (Correct. Mendota, Tranquility, Golden Plains, Muroc, and Livingston)

Which of the following did Edward Snowden do before releasing NSA documents to the press? a. He expressed concerns to his supervisors. b. He expressed concerns in writing to "oversight and compliance folks." c. He simply released the NSA documents without any previous actions. d. He both expressed concerns to supervisors and to "oversight and compliance folks."

d. He both expressed concerns to supervisors and to "oversight and compliance folks." (Correct. There is a list in the case that Mr. Snowden gave of all the people whom he notified.)

Who of the following worked at Boeing because of Darleen Druyun's influence? a. Michael Sears b. Heather McKee c. Darleen Druyun d. Heather McKee and Darleen Druyun

d. Heather McKee and Darleen Druyun (Correct. Druyun was able to secure positions at Boeing for her daughter, her son-in-law, and herself.)

Which of the following is false about the fate of Malden Mills? a. The employees lost one-half of their pensions. b. It closed and the buildings were turned into housing. c. It survived because of large military contracts. d. Mr. Feuerstein did not lead the company after the fire.

d. Mr. Feuerstein did not lead the company after the fire. (Correct. This statement is false. Mr. Feuerstein rebuilt the company and was its leader for a number of years following the fire.)

What is a key difference between the trucker log system and the black box system? a. The log system is more accurate. b. The black box system does not allow drivers to cheat. c. The black box system has not been tested. d. None of these are correct.

d. None of these are correct. (Correct. All of these statements are factually flawed. Review the case to catch the details.)

What is the current position on new-mother discharge packs that contain formula? a. They are prohibited under federal law. b. Hospitals' codes of ethics prohibit their distribution. c. Infant formula manufacturers no longer supply formula for the packs. d. None of these are correct.

d. None of these are correct. (Correct. Some hospitals do not include formula in their discharge packs, but there is no code or federal prohibition.)

What is the current status of the dispute between the nuns and Katy Perry? a. The nuns sold their property to Katy Perry. b. Katy Perry got an injunction giving her the right to buy the property. c. The nuns' contract with the developer is the contract the court recognized as valid. d. None of these are correct.

d. None of these are correct. (Correct. The dispute is ongoing, and the nuns hope that the pope will weigh in.)

Which of the following is not a component of the four-legged stool of economic stability? a. Customers b. Business c. Investors d. Other countries

d. Other countries (Correct. Other countries' stability affects their economic system, but it is possible to have economic stability in one country with other countries experiencing economic instability.)

Which of the following are illegal in all countries? a. Speed payments b. Facilitation payments c. Grease payments d. These are not illegal in most countries.

d. These are not illegal in most countries. (Correct. Payments to get a business operational are not illegal in most countries; these are not payments to win business or contracts.)