MGMT 1005 Exam 2
Which author wrote the following quote: "This great increase in the quantity of work, which, in consequence of the division of labor, the same number of people are capable of performing, is owing to three different circumstances; first, to the increase of dexterity in every particular workman; secondly, to the saving of the time which is commonly lost in passing from one species of work to another; and, lastly, to the invention of a great number of machines which facilitate and abridge labour, and enable one man to so the work of many..."?
Adam Smith
Which of the following responses to the factory fires in Bangladesh would be considered examples of a "command economy" response?
Aggressive enforcement of Bangladesh's existing Factory Rules by government officials and inspectors and the passage of new laws targeted specifically at improving fire safety and working conditions in the garment industry by the Bangladesh parliament
Based on information contained in the Enron case and the information presented in class, which individual is credited with the most direct responsibility for (and personal enrichment from) Enron's development of complicated "special purpose entity" structures by which Enron was able to keep significant amounts of debt from being consolidated into their financial statements?
Andy Fastow
What are the "Four As" described by Prahalad?
Availability, affordable, awareness, access
In which was are Bentham's and Mill's theories similar?
Both provide a consequential approach to ethical decision making, focusing on the greatest happiness for the greatest number
Which author wrote the following quote: "However, these four billion people who make up the BOP are not a monolith. They represent multiple cultures, ethnicity, literacy, capabilities, and needs. They can be segmented in multiple ways...."?
CK Prahalad
According to Bentham, which one of the following "hedonistic categories" is used to measure the likelihood or probability that an action would bring pleasure?
Certainty
Modern economic systems contain elements of three economic systems - traditions, commands, and markets. In which economic system does the regulation of the natural gas utility industry represent?
Command
Which statement most accurately describes the theory of "comparative advantage" as explained by David Ricardo?
Countries should encourage local companies to specialize in areas of manufacturing in which they are most productive, and to then trade with other countries for the other goods that are needed.
Which author wrote the following quote: "If Portugal had no commercial connection with other countries, instead of employing a great part of her capital and industry in the production of wines, with which she purchases for her own use the cloth and hardware of other countries, she would be obliged to devote a part of that capital to the manufacture of those commodities, which she would thus obtain probably inferior in quality as well as quantity..."?
David Ricardo
In the Enron case we discussed in class, we discussed reasons why Enron executives might have made the decision to use mark-to-market accounting, including the reason that mark-to-market accounting is followed by many other companies in other industries. After the collapse of Enron, critics have pointed out that mark-to-market accounting was not an accurate way to measure the current value of future contracts in the energy industry, which had highly volatile and unpredictable prices, accusing Enron executives of fraudulently reporting excessive profits using mark-to-market accounting in order to keep the stock price high with no regard for transparency to shareholders. Which statement below most accurately describes the categories of moral development made by each stakeholder as stated in this paragraph?
Enron executives' reasoning supporting the use of mark-to-market accounting demonstrates conventional decision making, and critics describe Enron executives' decision making as pre-conventional
In White's article about Gilligan's ethic of care, the separated self is contrasted with the connected self. Which of the following examples from our course readings and discussions are NOT representative of the "connected self"?
Enron's "Performance Review Council" rating system for employees
T or F: Choosing to operate a clothing factory with numerous fire safety violations because other factory owners have also chosen to ignore fire safety rules would be characterized as a post-conventional decision, according to Kohlberg.
False
T or F: Free markets are just (and justified) for many reasons, including the reason that they maximize the economic utility for a few individuals at the expense of the overall good of the society.
False
T or F: Ken Lay had considerable political connections but very little formal training in economics, so he hired Jeff Skilling, with an MBA from Harvard, to develop the energy trading business for Enron.
False
T or F: Rawls' principles of justice are neither universal nor utilitarian, but can still be properly categorized as a teleological approach.
False
T or F: Ricardo's theory of "comparative advantage" recognized the value of traditional ways of farming and producing goods, encouraging countries to support intergenerational cultural traditions as a way of achieving greater overall economic growth.
False
T or F: The Triangle Shirtwaist Factory Fire and the Tazreen Factory Fire were similar in many ways, including the fact that many young women died, that many of the fire exit doors at the times of the fire were inadequate, and that the response to both fires included new laws enforced by the govt to protect factory workers.
False
T or F: When Adam Smith described his theory of division of labor and specialization, he chose to illustrate his theory with a description of workers in a garment factory.
False
In White's article about Gilligan's ethic of care, the separated self is contrasted with the connected self. Which of the following examples from our course readings and discussions are NOT representative of the "separated self"?
H&M's decision to join the Accord on Fire and Building Safety in Bangladesh
Which author wrote the following quote: "As much land as a man tills, plants, improves, cultivates, and can use the product of, so much is his property. He by his labour does, as it were, enclose it from the common...."?
John Locke
Which author wrote the following quote: "Each of these principles applies to a different part of the basic structure; and both are concerned not only with basic rights, liberties, and opportunities, but also with the claims of equality; while the second part of the second principle underwrites the worth of these institutional guarantees. The two principles together, when the first is given priority over the second, regulate the basic institutions which realize these values..."?
John Rawls
Which moral philosopher(s) would agree with the following statement: When assessing an ethical dilemma and choosing among alternative actions in a constitutional democracy, one must always protect the free equality of opportunity for individuals?
John Rawls
Which moral philosopher would agree with the following statement: When assessing an ethical dilemma and choosing among alternative actions, one must always look to the consequences and outcomes of the action, giving greater value to the outcomes that are valued by human rational thought instead of mere sensation, and choose the action that creates the greatest good for the greatest number?
John Stuart Mill
Which author wrote the following words: "At the last two stages, then, choice is based on the principles that supersede convention, just as previously the claims of society or convention were seen as the grounds for adjudicating differences between individuals..."?
Lawrence Kohlberg
Modern economic systems contain elements of three economic systems - traditions, commands, and markets. In which economic system are decisions about appropriate wages and working conditions set by the free choices on informed workers?
Market
What are features of perfect competition?
Numerous buyers and sellers, all can freely enter and leave market, full transparency, buyers and sellers maximize utility, no external party regulates, goods so similar it doesn't make a difference
According to Kohlberg, which of the three levels of moral development was demonstrated by Andy Fastow's decision to take personal profits from the "independent" special purpose entities that did business with Enron?
Pre-conventional
A "rights-based" argument in opposition to Royal Dutch Shell's oil drilling that could be made by the Ogoni people of the Niger Delta is best exemplified by which argument below?
Royal Dutch Shell is polluting the resources needed by the Ogoni to pursue their chosen way of life, taking away their dignity and ability to choose how to provide for their children, and forcing them to move.
In the Adam Smith excerpt that we read, titled "Wealth of Nations," what concept does he describe that promotes public economic interests indirectly by focusing on rational self-interest of individuals?
The "invisible hand" of the marketplace
Which standard of determining the appropriate wage and safety conditions in developing countries is based upon the free choice of informed workers in that developing country?
The classical liberal standard
If John Stuart Mill were to analyze the Bangladesh factory fire case, what statement would be more accurate factually and analytically?
The treatment of the workers at the Tazreen factory was unethical because of the tragic and fatal outcome of the fire in which 112 workers died, causing not only immediate physical pain and suffering but also causing overall societal grief.
Which author wrote the following quote: "It is convergence - of new players, on a new playing field, developing new processes for horizontal collaboration - that I believe is the most important force shaping global economics and policy in the early 21st century"?
Thomas Friedman
In the Adam Smith excerpt that we read, titled "Wealth of Nations," which of the following are NOT a consequence of division of labor and specialization?
Thus labor, in the beginning, gave a right to property....CUZ JOHN LOCKE
T or F: A living wage standard for wages can be achieved when wages are based upon the actual cost of housing, food, etc. in the country where the worker lives.
True
T or F: According to Bentham, the calculation of happiness of any action involves "hedonistic categories," including fecundity and purity, which are measured when actions are repeated after the first instance.
True
T or F: According to Kant, unless the principle of your action can be universalized, to make an exception for yourself is immoral.
True
T or F: Aggressive use of mark-to-market accounting was used by Enron to increase reported revenues in its audited financial reports, making Enron;s current financial position seem stronger that it actually was.
True
T or F: In the White article about Carol Gilligan's ethic of care, gender differences between managers was demonstrated by experiments that showed that female respondents were more likely to return an accidentally-dropped marketing plan unread, as a recognition of the "connected" nature of business relationships.
True
T or F: Prahalad described the biomass stove, which was designed to improve the health and quality of life of rural women in India, as an example of product development within the constraints of the innovation sandbox.
True
T or F: Shareholders of western clothing retailers demonstrate a pre-conventional level of moral decision making if they are unconnected about hazardous working conditions for Bangladesh workers as long as their shares remain valuable and the retailers make profits.
True
T or F: Thomas Friedman's description of Globalization 3.0 includes "outsourcing" as a way to save on salary costs and also to get better-skilled and more productive workers.
True
According to Kant, which of the following should be part of the analysis of whether an act is right or wrong?
Universalizability of any action, intent of the actor alone, and respect for persons and dignity
What is correct about the Bangladesh factory fire?
Walmart was aware that fire safety is an industry-wide challenge in Bangladesh, Bangladesh has a variety of laws to protect factory workers, many of the competitive pressures in Bangladesh are encouraged by Western consumers' desires for cheap clothing, Bangladesh's garment industry is the second largest in the world after CHINA
Which of the following are the most accurate descriptions of product development via Prahalad's "innovation sandbox"?
When designing products for the BOP, one must remember that poor customers in developing nations willingly accept new technology and one must operate within certain constraints so that the products can be affordable and accessible to the customer
Based upon the information contained in the Exhibits in the Enron case, which of the following statements are correct? a. Enron's Code of Ethics had a conflict of interest policy with a general rule against full-time officers and employees owning an interest in another entity that does business with or is a competitor of Enron. b. The percent increase of Enron's earnings from Domestic Trading from 1999 to 2000 was significantly higher than the percent increase in earnings from Domestic Pipelines and International operations. c. Sherron Watkins, in her letter to Ken Lay, said that she was "incredibly nervous that we will implode in a wave of accounting scandals." d. All of the above e. None of the above
d
Based upon the information contained in the Exhibits in the Enron case, which of the following statements is are correct? a. Jeff Skilling abruptly resigned as CEO of Enron on August 14, 2001 b. Enron's month end stock price in 1999 and 2000 was often well above month end price of other stocks on the Standard & Poor's Index c. Ken Lay was a highly respected business leader and government lobbyist d. All of the above e. None of the above
d
