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Name: __________________________ID: __________________
March 20, 2014
Exam 1: Chapters 1 – 4
MULTIPLE CHOICE
1. Principles are
a. laws and regulations that guide behavior in the world of business.
b. mores, values, and customs that guide behavior in general.
c. specific and pervasive boundaries for behavior that are universal and absolute.
d. the obligations businesses assume to maximize their positive impact and minimize their
negative impact on stakeholders.
e. the mores, values, and customs that parents teach their children.
2. Social responsibility is
a. an organization's obligation to maximize its positive effects and minimize its negative
effects on stakeholders.
b. principles and standards that guide behavior in the world of business.
c. a business's responsibility not to pollute the environment.
d. a business's responsibility to manufacture products that function properly.
e. charitable contributions made by a business to enhance its image.
3.
The _____ was/were enacted to restore confidence in financial reporting and business ethics after the
accounting scandals of the early 2000s.
a. Defense Industry Initiative on Business Ethics and Conduct
b. Sarbanes-Oxley Act
c. Federal Sentencing Guidelines for Organizations
d. Foreign Corrupt Practices Act
e. Dodd-Frank Wall Street Reform and Consumer Protection Act
4. The _____ focus(es) on firms taking action to prevent and detect business misconduct in cooperation
with government regulation.
a. United States Sentencing Commission
b. Defense Industry Initiative on Business Ethics and Conduct
c. World Trade Organization
d. United Nations Global Compact
e. Federal Sentencing Guidelines for Organizations
5. The study of business ethics is important to better understand all of the following except
a. that a person's own moral philosophies and decision-making experience may not be
sufficient to guide him or her in the business world.
b. how and why people make ethical or unethical decisions.
c. how to cope with conflicts between a person's own values and those of the organization in
which he or she works.
d. that business ethics is entirely an extension of an individual's own personal ethics.
e. how to identify ethical issues arising in the business world.
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6. The Dodd-Frank Wall Street Reform and Consumer Protection Act
a. was very popular among Wall Street bankers.
b. represented only modest reform.
c. came out of theological discussions in the 1920s.
d. was designed to make the financial services industry more responsible.
e. made it mandatory for public corporations to hire ethics officers.
7. Ethical culture is defined as
a. rules, standards, and moral principles regarding what is right or wrong in specific
situations.
b. the establishment and enforcement of ethical codes throughout the organization.
c. the development of rules and norms that are socially enforced.
d. the codification of laws to reward organizations for taking action to prevent misconduct.
e. the character of the decision-making process that employees use to determine whether
their responses to ethical issues are right or wrong based on values and norms.
8. Which of the following is not one of the benefits of being ethical and socially responsible in business?
a. Greater employee commitment
b. A high degree of employee dissent
c. Improved customer trust and satisfaction
d. Increased investor loyalty
e. Better financial performance
9. Those who have a claim in some aspect of a firm's products, operations, markets, industry, and
outcomes are known as
a. shareholders.
b. stockholders.
c. stakeholders.
d. claimholders.
e. special-interest groups.
10. The degree to which a firm understands and addresses stakeholder demands can be referred to as
a. a stakeholder orientation.
b. a shareholder orientation.
c. the stakeholder interaction model.
d. a two-way street.
e. a continuum.
11. A stakeholder group that is absolutely necessary for a firm’s survival is defined as
a. direct.
b. tertiary.
c. secondary.
d. special-interest.
e. primary.
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12. Accountability, oversight, and control all fall under the definition and implementation of corporate
a. profit.
b. loyalty.
c. care.
d. governance.
e. diligence.
13. What are the four levels of social responsibility?
a. Financial, religious, ethical, and philanthropic
b. Ethical, philanthropic, selfish, and short-sighted
c. Economic, long-term, ethical, and philanthropic.
d. Legal, economic, ethical, and philanthropic
e. Economic, compliance, legal, and philanthropic
14. Which of the following are not typically primary stakeholders?
a. Customers
b. Trade associations
c. Employees
d. Shareholders
e. Investors
15. Board members being linked to more than one company is an example of
a. strategic philanthropy.
b. stakeholder commitment.
c. interlocking directorate.
d. conflict of interest.
e. an illegal activity.
16. An ethical issue is a problem, situation, or opportunity
a. that has no correct answer.
b. that harms the environment.
c. requiring society as a whole to choose among several actions that must be evaluated as
right or wrong.
d. requiring an individual, group, or organization to choose among several actions that must
be evaluated as right or wrong, ethical or unethical.
e. requiring an individual, group, or organization to choose between harming consumers or
the environment and earning more profits.
17. Conflicts of interest exist when employees must choose whether to
a. advance their own personal interests, those of the organization, or those of some other
group.
b. advance the interests of the organization or those of society.
c. accept bribes or not.
d. carry out an assignment they perceive to be unethical.
e. report an unethical coworker.
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18. _____ is the offering of something of value in order to gain an illicit advantage.
a. Shoulder surfing
b. Hacking
c. Gift exchange
d. Conflicts of interest
e. Bribery
19._____ is defined as any purposeful communication that deceives, manipulates, or conceals facts in
order to create a false impression.
a. Stealing
b. Lying
c. Fraud
d. Misappropriation
e. Accounting fraud
20. When a commercial states that a product is superior to any other on the market due to its magnificent
and incomparable benefits, the marketer risks accusations of
a. concealed facts.
b. false labeling.
c. deceptive advertising.
d. concealed facts.
e. puffery.
21. _____ is associated with a hostile workplace where someone considered a target is threatened,
harassed, belittled, or verbally abused.
a. A code of conduct
b. Sexual harassment
c. Coercive power
d. Bullying
e. Rewards
22. The Kyoto Protocol is an international treaty committed to
a. lowering greenhouse gas emissions.
b. limiting bribery in international business relations.
c. making medical care available to the poverty stricken.
d. eliminating the exploitation of third-world workers.
e. creating equal employment opportunities for men and women.
23. What type of fraudulent activity involves an employee who assists a consumer in fraud?
a. Whacking
b. Duplicity
c. Guile
d. Defamation
e. Collusion
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24. _____ are used to obtain or retain business and are not generally considered illegal in the U.S.
a. Facilitation payments
b. Bribes
c. Gifts
d. Coercive techniques
e. Threats
25. The _____ regulates tobacco, dietary supplements, vaccines, veterinary drugs, medical devices,
cosmetics, products that give off radiation, and biological products.
a. World Trade Organization
b. Consumer Financial Protection Agency
c. Department of Justice
d. Environmental Protection Agency
e. The Food and Drug Administration
26. Which of the following groups is not a group that receives special legal protections?
a. The elderly
b. Children
c. Senior citizens
d. The highly educated
e. Young consumers
27. _____ 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.
a. Civil
b. Criminal
c. Competitive
d. Administrative
e. Regulatory
28. Which of the following is not a provision of the Dodd-Frank Wall Street Reform and Consumer
Protection Act?
a. Increases the accountability and transparency of financial institutions
b. Creates a bureau to educate consumers in financial literacy
c. Creates an organization to pay the bills of low-income consumers
d. Create incentives and rewards for whistle-blowers to come forward
e. Increases oversight of the financial industry
29. _____ focus(es) on developing sound organizational practices and integrity for financial and
nonfinancial performance measures, rather than on an individual’s morals.
a. The Dodd-Frank Wall Street Reform and Consumer Protection Act
b. Compliance
c. Organizational ethics
d. Core practices
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30. The Sarbanes-Oxley Act created the _____ to oversee the accounting firms that audit public
corporations and to establish rules and standards for auditing.
a. Public Company Accounting Oversight Board
b. Corporate Accounting Oversight Commission
c. Enron Accounting Fraud Administration
d. Occupational Health and Safety Administration
e. Equal Employment Opportunity Commission
31. Donation of computer equipment to schools by Toshiba would be associated with _____
responsibilities.
a. economic
b. voluntary
c. legal
d. ethical
e. Minimum
32. _____ tie(s) an organization’s product(s) directly to a social concern through a marketing program.
a.
b.
c.
d.
e.
Voluntary contributions
Cause-related marketing
Strategic philanthropy
Corporate giving
Employee benefits
33. The _____ of ethics involves embedding values, norms, and artifacts in organizations, industries, and
society.
a.
b.
c.
d.
e.
institutionalization
rationalization
commercialization
mobilization
enforcement
MAN3065 Exam 1
March 20, 2014