Business Ethics 3065 Midterm

_____ responsibilities relate to a business's contributions to stakeholders.

Voluntary

The primary objective of U.S. antitrust laws is to

distinguish competitive strategies that enhance consumer welfare from those that reduce it.

Mr. Smith told his client, Mr. Jabar, who was not an IT expert, that the new software systems were much better than his existing ones. To convince Mr. Jabar, Mr. Smith used a great deal of technical jargon that his client did not really understand. Mr. Smith did this intentionally to confuse Mr. Jabar. This is an example of

noise.

Title VII of the Civil Rights Act of 1964

prohibits discrimination on the basis of race, color, sex, religion, or national origin.

Which of the following describes a dual relationship?

A personal, loving, and/or sexual relationship with someone with whom you share professional responsibilities

Which of the following has been identified by the Ethics Resource Center as being one of the leading forms of observed misconduct in organizations?

Abusive behavior

Which of the following statements is most correct?

Affirmative action programs involve efforts to recruit, hire, train, and promote qualified individuals from groups that have traditionally been discriminated against on the basis of race, gender, or other characteristics.

What is a primary reason why some small businesses resist the opening of large chain retailers like Walmart or Home Depot?

Because the large size creates economies of scale and they can charge lower prices

This is a leading self-regulatory body that provides directions for managing customer disputes and reviews advertising cases.​

Better Business Bureau

_____ is the offering of something of value in order to gain an illicit advantage.

Bribery

_____ law defines the rights and duties of individuals and organizations (including businesses).

Civil

What type of fraudulent activity involves an employee who assists a consumer in fraud?

Collusion

What type of fraud involves intentional deception on the part of an individual or group in order to derive an unfair economic advantage over an organization?

Consumer

The _____ is an independent agency within the Federal Reserve System that "regulate[s] the offering and provision of consumer financial products or services under the Federal consumer financial laws."

Consumer Financial Protection Bureau

_____ focus(es) on developing sound organizational practices and integrity for financial and nonfinancial performance measures, rather than on an individual's morals.

Core practices

Which of the following is not a side effect of being the victim of workplace bullying?

Corporate intelligence

Which of the following is not a provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act?

Creates an organization to pay the bills of low-income consumers

_____ law not only prohibits specific actions in business such as fraud, theft, or securities trading violations, but also imposes fines or imprisonment as punishment for breaking the law.

Criminal

Which of the following is not a provision of the Sarbanes-Oxley Act?

Developed the Consumer Financial Protection Bureau

The _____ was called "a sweeping overhaul of the financial regulatory system...on a scale not seen since the reforms that followed the Great Depression."

Dodd-Frank Wall Street Reform and Consumer Protection Act

What type of fraudulent activity could involve a consumer staging an accident to seek damages?

Duplicity

_____ are used to obtain or retain business and are not generally considered illegal in the United States.

Facilitation payments

Which of the following provide incentives for developing core practices within a firm that could help ensure ethical and legal compliance?

Federal Sentencing Guidelines for Organizations, tSarbanes-Oxley Act, and Dodd-Frank Act

____________ must be trusted to make business work properly and includes accountants.

Gatekeepers

Which of the following is not a question you need to ask when you suspect that workplace bullying has occurred?

Has your boss given you a raise within the last year?

________ means the message has a tendency to mislead, confuse, or deceive the public.

Implied falsity

Which of the following is not a reason why the institutionalization of business ethics has progressed in recent decades?

Institutionalization of ethics is now mandated for all organizations by governments around the world

Concerns involving copyright infringement on books, movies and music, and other illegally produced goods relate to which type of ethical issue?

Intellectual property rights

Externally imposed boundaries of conduct, such as laws, rules, regulations, and other requirements are known as ​

Mandated boundaries

Which of the following acts exempted the insurance industry from antitrust legislation?

McCarran-Ferguson Act of 1944

Which of the following is true regarding abusive and intimidating behavior?

Not everyone agrees on what constitutes abusive behavior.

Abusive or intimidating behavior is the most common ethical problem for employees. Which of the following is notrelated to this concept?

Performance probation

Which of the following is one of the seven steps that the U.S. Sentencing Commission requires for an effective compliance program?

Provide oversight by high-ranking personnel

The Sarbanes-Oxley Act created the _____ to oversee the accounting firms that audit public corporations and to establish rules and standards for auditing.

Public Company Accounting Oversight Board

Which of the following acts, passed in response to public outrage over conditions described in Upton Sinclair's The Jungle, was the first consumer protection legislation?

Pure Food and Drug Act of 1906

Which of the following acts can be classified as procompetitive legislation?

Sherman Antitrust Act of 1890

Which of the following laws instituted a whistle-blower bounty program in which whistle-blowers are eligible to receive 10 to 30 percent of fines if their reports result in convictions of more than $1 million in penalties? Act.

The Dodd-Frank Act.

Which of the following groups is not a group that receives special legal protections?

The highly educated

The _____ makes it illegal for individuals, firms, or third parties doing business in American markets to "make payments to foreign government officials to assist in obtaining or retaining business."

U.S. Foreign Corrupt Practices Act (FCPA)

How do violations of the law usually start?

When businesspeople stretch the limits of ethical standards

Conflicts of interest exist when employees must choose whether to

advance their own personal interests, those of the organization, or those of some other group.

Laws and regulations change over time; however, in the United States the thrust of most business legislation can be summed up as .

any practice is permitted that does not substantially reduce competition and harm consumers or society.

Cause-related marketing can affect consumer _____, if consumers are sympathetic to the cause and the brand and cause are seen as a good fit.

buying patterns

Prior to the financial meltdown, bond ratings agencies were accused of having _____ because they were paid by the organizations that they rated. The organizations would shop around for the agency that gave them the best rating.

conflicts of interest

An employee sorts through a competing business's trash to see if there are any documents that could reveal secret information. This is a misuse of

corporate intelligence.

The first step toward understanding business ethics is to

develop ethical issue awareness.

An ethical organizational culture creates an environment in which to structure behavior that is then evaluated by stakeholders. The key elements of an organizational culture include all of the following except

employee compensation

Companies that _____ will most likely be found in violation of procompetitive legislation.

establish monopolies

Issues related to fairness and honesty may arise because business is sometimes regarded as a

game governed by its own rules rather than those of society.

Some, especially those in business, complain that the Sarbanes-Oxley Act and similar legislation

is excessively complex and financially burdensome.

War metaphors are common in business. This kind of mindset can be dangerous for business leaders because

it may foster the idea that honesty is unnecessary in business

When a restaurant claims that it sells the world's best cup of coffee, it could be accused of

puffery.

Creating a perception or belief by words that intentionally deceives someone is

related to lying by commission

Ethical issues in business typically arise because of conflicts among individuals' morals and

the core values and culture of the organizations where they work.

Mandated boundaries of conduct are imposed by

the legal system

Accountants must abide by a strict code of ethics that defines their responsibilities to

their clients and the public interest.

Donation of computer equipment to schools by Toshiba would be associated with _____ responsibilities.

voluntary

The ethical decision-making process begins

when stakeholders trigger ethical issue awareness and individuals openly discuss it with others.

The Age Discrimination in Employment Act specifically outlaws hiring practices that discriminate against people

who are 40 and over.

A(n) _______ requires an individual to choose ​among several actions that have negative outcomes.

​ethical dilemma