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GMS 802 Test Bank
1. You are taking Business Ethics class. Why do you think we need to study Ethics?
A. To clarify our values so we can make decisions that align with them.
B. To respect ourselves as people of integrity and to be accountable to others.
C. To be able to defend our choices of decisions, no matter they are right or wrong
D. D. All of the above
E. A and B
2. There are many reasons why managers may feel uncomfortable discussing ethics. Which of the following reasons cover(s) the
A. Managers believe they lack the technical ability to discuss ethics
B. Managers see ethics as about blaming and the don’t want to blame others
C. Managers see ethics as soft and idealistic when they need to be hard-nosed and focused on results
D. All of the above
E. A and B
3. There is a tremendous amount of literature from throughout history exploring issues of ethics. Which of the following does not
belong to the traditions of ethics?
A. Deontology
B. Virtue Ethics
C. Social Justice
D. Utilitarianism
E. Cultural Relativism
4. Which of the following traditions looks at the actions or means people use to achieve their goals?
A. Deontology
B. Virtue Ethics
C. Social Justice
D. Utilitarianism
E. Cultural Relativism
5. The Reversibility Test has been used to avoid rationalizations of unethical behaviors. Which of the following question is
correctly asked to reflect the meaning of Reversibility Test?
A. Is there a consistent, general rule that underpins your decision?
B. If you decide to fire an employee, are you doing so for potentially biased person reasons, or is there an underlying rule
that supports your decision?
C. Would you endorse the decision, if you wouldn’t like to bear the burden of the consequences of the decision?
D. Could you support a decision, if it were made public?
E. If the decision is too difficult to make, could a manager still be held responsible?
6. According to the tradition of Deontology, all of the followings are standards of conduct, except:
A. Beneficence
B. Non maleficence
C. Autonomy
D. Justice
E. Communication
7. In our class, we discussed different guides to avoid rationalizations of unethical behavior. Which one is the best answer?
A. The Publicity Test
B. The Reversibility Test
C. The Generalizability Test
D. A and C
E. A, B, and C
8. Which of the following traditions looks at the ends or goals that are outcomes of actions?
A. Deontology
B. Virtue Ethics
C. Consequentialism
D. Egoism
E. Cultural Relativism
9. In the business world, accountability to the stakeholders means:
A. Regardless of what some people might say, ethics does matter to people.
B. Whatever decisions you make ultimately affect the stakeholders and you will be held responsible for them.
C. Being able to talk about ethics and understand ethical concerns and problems will help you more effectively work with
D. Employees, the public, customers, suppliers, the media and the government must work together with managers.
E. Managers must be able to understand the moral dimensions of their decisions in their business practices.
10. Personal integrity is important, it means:
A. While any aspects of our lives are determined by external circumstances, the kind of person you are is determined by
your choices.
B. The decisions that you make are reflections of your character.
C. If you value anything about yourself, you should follow the law and regulates
D. A and B
E. A and C
11. Why do we say, “Legal reasoning is necessary, but not sufficient?”
A. The law provides a moral foundation, but ethics go beyond what the law requires.
B. Focusing on the law can put the firm in an adversarial position with key stakeholders such as the public and consumers.
C. The law does not capture all the moral expectations of stakeholders.
D. The law can change in the future to punish the behavior of the firm
E. All of the above
12. _______ was the root cause of bankruptcies and business failures such as Enron, Arthur Andersen, and WorldCom.
A. A failure of ethics
B. Autocratic leadership
C. Poor customer service
D. B and C
E. A, B, and C
13. Which statement accurately describes the relationship between law and ethics?
A. Even though an action is legal, it may not be ethical.
B. An action that is not illegal is without question an ethical action.
C. Living up to the “letter of the law” is s sufficient guarantee that a person’s actions are truly ethical
D. A and C
E. B and C
14. The underlying beliefs and attitudes that help determine behavior are referred to as _______.
A. Values
B. Ethics
C. Morals
D. Personal standards
E. Social norms
15. The utilitarian view of ethical behavior is that which
A. Respects and protects the individual’s fundamental rights.
B. Ensures that people are treated impartially and fairly
C. Advances the pursuit of long-term self-interests
D. Provides the greatest good for the greatest number of people
E. Ensures the resolution of personal moral dilemmas.
16. Using results-oriented performance criteria to judge what is best for most people in a business organization in an application
of which view of ethical behaviour?
A. The consequential view
B. The individualism view
C. The collectivism view
D. The moral rights view
E. The justice view
17. In contemporary organizations, ______ concerns the protection of employees with respect to their rights to privacy, due
process free speech, free consent, health and safety, and freedom of conscience.
A. The utilitarian leadership
B. The value-based leadership
C. The collectivist leadership
D. The ethical leadership
E. The justice leadership
18. The justice view of ethical behaviour is that which:
A. Provides the greatest good for the greatest number of people
B. Respects and protects the individuals fundamental rights
C. Ensures that people are treated impartially and fairly
D. Advances the pursuit of long-term self interests
E. Ensures the resolution of personal moral dilemmas
19. A manager who operates in a foreign country with the premise that ethical behaviour is always determined by its cultural
context is adopting a perspective of:
A. Cultural activism
B. Cultural relativism
C. Ethical imperialism
D. Cultural socialism
E. Ethical realism
20. Creating a corporate culture that values employees, customers, and suppliers is a core ethics that:
A. Respects basic rights
B. Promotes good citizenship
C. Enhances social concerns
D. Respects human dignity
E. Respects stakeholder interests
21. Which of the following does NOT accurately describe the concept of ethical leadership?
A. Keeping a safe workplace
B. Producing safe goods and services
C. Supporting social institutions, including economic and educational systems
D. Protecting the rights of employees and customers.
E. Avoiding anything that threatens people’s education and living standards
22. An ethical dilemma ______.
Is rare among managers
Is resolved in most organizations by a formal code of ethics
Always involves pressures to commit illegal acts
Can usually be resolve without much personal stress.
Occurs when someone must choose between a course of action offering personal or organizational benefit or both, but
for which there is no clear right or wrong decision.
23. When some action must be taken but there is not a clear “right” or “wrong” approach, a person is faced with a(n)________.
A. Moral pinch
B. Ethical dilemma
C. Managerial decision
D. Situation to avoid
E. Lawsuit
24. Suppose that manager denies a candidate a promotion or job appointment because of the candidate’s race, religion, gender,
age or other criteria that are not relevant to the job. This manager may get caught in an ethical dilemma involving _______.
A. Discrimination
B. Sexual harassment
C. Conflicts of interest
D. Customer confidence
Organizational resources
25. Ethical dilemmas in the form of ______ may occur where a manager takes a bribe or kickback or extraordinary gift in return
for making a decision favorable to the gift giver.
A. Discrimination
B. Sexual harassment
C. Conflicts of interest
D. Customer confidence
E. Organizational resources
26. Which of the following rationalizations for unethical behaviour reflects the mistaken belief that one’s behaviour is acceptable,
especially in ambiguous situations?
A. It’s not really illegal
B. It’s in everyone’s best interests
C. No one will ever know about it
D. The organization will protect me
E. Everybody does it in the similar situation
27. Factors influencing ethical managerial behaviour include which of the following?
A. The employing organization
B. The person
C. The external environment
D. All of the above
E. None of the above
28. The behaviour of supervisors and the expectations of peers are ______ factors that influence ethical behaviour
A. Social
B. Organization
C. Person
D. Corporate
E. Environmental
29. Ethics training refers to:
A. Structured programs to help participants understand the ethical aspects of decision-making, and how to incorporate
ethical standards into their daily lives.
B. Teaching corporate outlines for formal corporate codes of ethics
C. Training on the laws under which “white collar” criminals are prosecuted
D. Learning about corporate guidelines for supplier conduct
E. Exposure to governmental regulations for defense contractors in the United States
30. According to the text, an important way to test whether a decision is consistent with one’s personal ethical standards is by
asking which of the following questions?
A. How would I feel about this if my decision was printed in the local newspaper?
B. How would I feel if this decision harmed someone?
C. How would I feel if my employer lost a lot of money as a result of this decision?
D. All of these questions are important ways of testing the ethics of a decision
E. None of these questions are an important way of testing the ethics of a decision.
31. To set proper ethical tone for the organization, top management should:
A. Communicate expectations for ethical behaviour throughout the organization
B. Reinforce ethical behaviour
C. Be role models of ethical behaviour
D. All of the above
E. None of the above
32. _______ should act as ethical role models and set an ethical tone in their areas of responsibility.
A. Top management only
B. Middle management only
C. First-line or supervisory management only
D. Top and middle management levels only
All levels of management
33. Which of the following statements does NOT provide an accurate description regarding how pressure to achieve goals
impacts ethics and ethical behaviour?
A. Employees often feel pressure to compromise personal standards to achieve company goals
B. A company president can create an ethical climate by setting reasonable goals
C. Any manager can unwittingly encourage subordinates to engage in unethical behaviour by exerting too much pressure
to achieve goals that are too difficult
D. Part of manager’s ethical responsibility is to be realistic in setting performance targets for others
E. Managers can create an ethical environment by setting goals that are extremely challenging and continuously push
subordinates to achieve these goals
34. Which of the following leadership beliefs is NOT appropriate for guiding socially responsible organizational practices?
A. People do their best in a healthy work environment that allows for job involvement as well as a good balance between
work and family life.
B. Organizations function best over the long run when located in healthy communities with high qualities of life.
C. Organizations realize performance gains and efficiencies by exploiting the natural environment
D. Organizations must be managed and led for long-term success
E. An organization’s reputation must be protected as a valuable asset.
35. A formal statement of an organization’s values and ethical principles that provide guidelines on how to behave in situations
to ethical dilemma’s are referred to as the organization’s:
A. Code of ethics
B. Corporate social responsibility
C. Management guidelines
D. Employee mandate
E. Employee handbook
36. The value of any formal code of ethics relies on:
A. Effective hiring practices that staff organizations with honest and moral people
B. Committed managers who are willing to set examples and act as positive ethical models
C. The underlying human resource foundations of the organizations
D. All of the above
E. None of the above
37.______ refers to an organization’s obligation to act in ways that serve its own interests as well as the interests of society at
A. A code of ethics
B. A moral code
C. A formal policy statement
D. Public accountability
E. Corporate social responsibility
38. Major organizational stakeholders include all of the following EXCEPT
A. Employees and contractors who work for the organization
B. Providers of the organization’s human, information, material and financial resources
C. General economic conditions and political trends
D. Stockholders, investors, and creditors with claims on assets and on the organization
E. Local, state, and national governmental agencies that enforce law and regulations
39. Which of the following represent a major organizational stakeholder? (WRONG QUESTION)
A. Consumers and clients who purchase the organization’s goods and/or use its services
B. Other organizations produce the same or similar goods and services
C. Community groups, activities, and others who represent the interests of citizens and society
D. A and B
E. A, B, and C.
40. Which statement is MOST correct in terms of the textbook presentation of the public’s expectations of business regarding
corporate social responsibility?
A. There are compelling arguments against corporate social responsibility
B. Corporate social responsibility is not related to managerial ethics
C. There are increased expectations that organizations will act with genuine social responsibility
D. The Canadian legal system does not protect the rights of consumers against socially irresponsibility business acts
E. Corporate social responsibility should be the concern of only top-level managers in organizations
41. Government takes an active role in regulating business affairs in Canada in all of the following areas EXCEPT:
A. Environmental protection
B. Consumer protection
C. Profit maximization
D. Occupational health and safety
E. Fair labour practices
42. When the Canadian government takes an active role in regulating business through fair labour practices, it:
A. Enforces laws to prohibit employment discrimination
B. Enforces regulations to encourage clean air
C. Discourages product dumping and unfair competitive practices
D. Forces businesses to withdraw from sale any product that are hazardous to consumers
E. Regulates the safety of working conditions
43. Offering bribes in an attempt to gain influence over public officials is the use of _____ with respect to organizations
influencing governments.
A. Personal networks
B. Public relations campaigns
C. Lobbying
D. Political action committees
E. Illegal acts
44. What are the important and prevalent core factors about actual cases of wrongdoing happen in organizations?
A. Distancing from Responsibility
B. Tunnel Vision
C. Rationalization
D. External Pressure
E. All of the above
45. Kohlberg’s Six Stages of Moral Development discusses the Conventional Stage, which of the following(s) belong to this stage?
A. A person determines what is right by the action that gets his/her needs met
B. “Good” behaviour is defined as living up to the expectations of others
C. People determine what is right by considering their duty to society at large
D. A and B
E. B and C
46. Kohlberg’s Six Stages of Moral Development describes the stage when Right actions are determined by universal principles
i.e. justice and equality. This stage belongs to:
A. “Social Centered” stage
B. “Ethics Centered” stages
C. “Self Centered” stage
D. “Respect Others” stage
E. “Human Dignity” stage
47. These are some of the policies that may help managers to combat potential ethical misconduct, which of the followings is the
best answer?
A. Introduce Ongoing Ethics Education
B. Recruit responsible managers
C. Form ethics committee to oversight the management
D. A and B
E. A and C
48. These are the important aspects for managers to follow in order to establish ethical climate in the organization and to avoid
ethical misconduct?
A. Make ethics part of the dialogue and foster communication
B. Emphasize responsibility and accountability throughout the Firm
C. Respect individual free will and let people make their on decisions
D. A and B
E. B and C
49. Which of the following is NOT an effective method to avoid ethical lapses?
A. Introduce an Ethics program
B. Establish an audit system
C. Create an ethical climate
D. Increase social responsibility
E. Use the power of authority
50. Value Based Leadership does NOT ask: (WRONG ANSWER)
A. Are the goals appropriate?
B. Are the values, wants and needs of the followers right?
C. Is it ever morally correct for a leader to withdrawal from the leadership role?
D. A and B
E. B and C
51. According to John W. Gardner, ethical leadership might look like to:
A. Use power to release human potential and instill responsibility in followers
B. Not ask if the goals are appropriate, but work as hard as possible
C. Work to let people follow the in large organizations
D. Set a system that is built on work performance and profit
E. Arouse followers toward a purpose of satisfying the leaders
52. Marketing is fundamentally about:
A. Gaining more customers
B. Meeting customer needs
C. Promote firm’s services
D. Sell more products
E. Build a firm’s reputation
53 What should be marketed according to the textbook?
A. The product should serve the needs of the customer
B. The price should be cheaper than the others
C. The products should be superior than the others
D. The firm has longer history
E. The firm has international market
54. Which of the following questions that Marketing with Ethics does not ask?
A. Does your value proposition shape your brand and the value you deliver?
B. What does your marketing say about the kind of firm you are?
C. Do you consider ore stakeholders in marketing campaigns and respect the law and basic moral standards?
D. Do you work to make sure you firm has reputation to be successful over time?
E. Does everybody market product like this, if so, why not we?
55. By developing trust, cooperation, and goal alignment supply chain partners will:
A. Look out for the firm’s interest
B. Share information
C. Bargain in good faith
D. Invest in products that could put them at risk if firm were to pull its business
E. All of the above
56. Which of the following points does not belong to the New Understanding of Marketing?
A. Does more than sell products
B. Is the vehicle through which an organization tells the story of its product and services
C. Builds a foundation of trust and consideration between the firm and the consumer
D. Targeting less-advantaged or vulnerable portion of the population
E. Is the way to communicate to the stakeholders about the firm’s core values
57. Which of the following answers about Marketing Managers Need to Ask is true?
A. Does the product do what we claim it does?
B. Is the statement about the product safety in the advertisement truthful?
C. Does the product meet a legitimate customer need, or does it foster a want?
D. All of the above
E. A and B
58. If a firm gives false information or offer questionable incentives to get shelf space at a local store:
A. The tactics used to each customers need to be examined
B. It was deceiving the supply chain partner
C. The promotion is disrespectful to stakeholders
D. Both A and B
E. Bother B and C
59. The concept of operation means:
A. The process by which firms create and deliver values to their customers
B. The questions that marketing managers should ask
C. The strategies by which marketing managers use to gain market shares
D. The investment that stakeholders provided for help the customers
E. The international firms coordinate different countries market development
60. Operations with Ethics asks:
A. Are employees a critical asset I have to invest in to create quality and outstanding customer service?
B. Are suppliers considered stakeholders with whom I should develop a close relationship?
C. Are shared goals and values, trust, and shared responsibility among supply chain members important to the firm’s
D. All of the above
E. A and B
61. As a key facet of Operations, an internal organization includes all of the aspects, except for:
A. Employees
B. Interfirm Cooperation
C. Culture
D. Organizational Structure
E. Inter-organizational Relationship
62. A positive organizational culture:
A. Should cultivate people’s willingness to put aside self-interest to work cooperatively for the good of the firm
B. Should have a more decentralized structure to better serve the consumers
C. Should put their own employees before the consumers
D. Should focus on close relationships with suppliers
E. Should always offer incentives to their stakeholders
63. The supply chain involves all activities that:
A. Distribute products to the end consumers
B. Move goods from the raw material stage to the end user
C. Build positive relationship with suppliers
D. Improve service quality
E. Interact with local community where the employees are supplied
64. Stakeholders for operation include:
A. Employees
B. Suppliers
C. Vendors
D. Distributors
E. All of the above
65. Special challenges in the supply chain in international business are:
A. Blaming suppliers when things break down
B. Responsibility for International Labor Issues
C. Educate international consumers to understand service advantages
D. A and B
E. B and C
66. Finance without ethics means:
A. Assumes finance in numbers
B. Focus on generating financial returns
C. Evaluation of organization in financial reports
D. A and B
E. B and C
67. Finance with ethics infuse ethics into finance is realty a matter of:
A. Incorporating more information into financial models for better decision making
B. Improving transparency in the comprehensiveness of the data
C. Including key stakeholders into operational decisions
D. All of the above
E. B and C
68. Taking steps to identify your role in the responsibility chain allows you to:
A. Participate in setting standards of conduct than simply being reactive to others
B. Select goals and design steps to accomplish them
C. Considering what stakeholders have to say
D. Support managers on the ethical frontier
E. Assign values among competing goals
69. Which of the followings does not belong in the four mind sets in Environmental Debate?
A. Doomsayer Mind set
B. Natural Resources Mind set
C. Cornucopian Mind set
D. Haves vs Have Nots Mind set
E. Aesthetic Mind set
70. Which one is the best answer to the challenges to management on the issue of environmental sustainability?
A. Less-developed countries argue that exploiting their natural resources for economic growth are their only means to
alleviate poverty
B. Developed countries argue that less developed countries must adopt methods of sustainable development despite costs
C. Business strategies toward the environment are various based on the shares of green
D. A and B
E. All of the above
71. How do the element/s of Chapter 1 help us ask some core questions about financial accounting and the creation of financial
A. What committing those acts will do for the social consequences of such actions
B. Are the actions of the firm likely to jeopardize the reputation of the firm
C. Have I taken into account all of the relevant stakeholders and taken steps to ensure not only the success of my
D. Could I defend my decision if all the information became public?
E. All of the above
72. What question do not managers need to ask as they perform a financial model of a project?
A. Are there alternatives that meet the needs of multiple stakeholders or multiple standards of conduct?
B. Am I positioning this model that shareholder can be best benefit with?
C. Have I examined the assumptions to ensure stakeholders are keeping with the values of the organization?
D. Who is impacted by this model?
E. Am I giving the stakeholder enough information to make an informed decision?