BUS 220 Test #2 Chapters 5-8

U.S. firms that operate outside the country have no need to understand businesses' role in foreign politics.

False

If a manger approaches ethics with benevolence in mind, he or she would stress what?

Friendly relations with an employee.

Under the Sarbanes-Oxley Act, corporations are required to:

Have executives vouch for the accuracy of a firm's financial reports.

Business managers need a set of ethical guidelines to help them:

Identify and analyze the nature of ethical problem.

Public policy tools involve a combination of:

Incentives and penalties.

Cooperation between business and government often occurs when:

They encounter a common problem or enemy.

A Super PAC is a financial-incentive political strategy tool.

True

Cost-benefit analysis is often used to determine the costs of regulation.

True

Expert witnesses provide testimony to legislators for businesses or business groups.

True

Managers, as major decision-makers, are one of the keys to whether a company will act ethically or unethically.

True

Under U.S. law, lobbying activities must be disclosed publicly.

True

Dark money refers to:

Undisclosed contributions to tax-exempt organizations.

Businesses believe they should avoid politics because the economic stakes are too high.

False

A bottom-line mentality in business is reflected in which statement?

"We have to beat the others at all costs."

Businesses are expected to be ethical in their relationships with:

All of the above.

The core components upon which a company's ethical performance depends include:

All of the above.

According to a 2013 opinion poll, Americans hold a dim view of:

Business executives.

Business cannot expect to be profitable while adhering to ethical principles of conduct.

False

Integrity-based ethics programs

Combines concern for the law with an emphasis on employee responsibility.

Business must develop its own definition of what is right and wrong, apart from ethics.

False

A corporate political strategy does not:

Determine the legal limits allowed for campaign financing.

When a government orders companies not to conduct business in another country because of a war, human rights violations, or lack of a legitimate government; these orders are called:

Economic sanctions.

Which of the following are examples of natural monopolies? :

Electric utilities and railroads.

Ethics policies typically cover all of the following issues except:

Encouraging discriminatory personnel practices.

Ethics are primarily based on religious beliefs.

False

In the case Political Action by the U.S. Steel Industry, 2015-2018, what is one reason that foreign-made steel prices were so much lower than U.S. steel?

Many foreign governments subsidized their steel industries.

Policies that affect the supply, demand, and value of a nation's currency are:

Monetary policies.

Aristotle argued:

Moral virtue is a mean between two virtues.

Honesty, integrity and accuracy are absolute requirements of the accounting function.

True

Monetary policies refer to policies that affect the supply, demand and value of the nation's currency.

True

Personal values and moral character play key roles in improving a company's ethical performance.

True

Sometimes national leaders resist the notion of international regulation, seeking to control matters of commerce themselves within their own countries.

True

Those who oppose business involvement with politics argue that managers do not have enough expertise to participate.

True