Which of the following is true of the three principles for resolving an ethical dilemma Quizlet

1. Analyze the consequences; ask questions to determine who will be helped, and harmed. What extent of benefits and harm. How does this decision look over a long term as well as short term.

2. Analyze the actions; consider all options and perspectives, w/o thinking of the consequence. Consider the common good, (how do the actions measure up against moral principles such as honesty, fairness, equality, respecting the dignity of others. If there is a conflict is there a way to see one principle as more important than the others? Which option offers actions that are least problematic?

3. Make a decision; Taking both parts into account and make a decision.

The field of _____ is the study of how people try to live their lives according to a standard of "right" or "wrong" behavior.

A. metaphilosophy

B. ethics

C. aesthetics

D. epistemology

B

Society refers to a(n):

A. environment that does not mention acceptable standard of good and bad behavior.

B. closed, confined unit in which people have to follow a distinct religion.

C. group of individuals who share similar psychological order and community resources.

D. structured community of people bound together by similar traditions and customs.

D

Amanda and Ross have been chosen to go to Ethiopia for their university's International Student Exchange Program. They read about the beliefs, attitudes, practices, norms, traditions, cuisine, and music of Ethiopia to better adapt to the place. Amanda and Ross are reading about the _____ aspect of Ethiopia.

A. cultural

B. economical

C. political

D. philosophical

A

Which of the following will most likely influence the moral standards of an individual?

A. The change of government in the individual's home country

B. A strict family upbringing

C. The attitude of people in the neighboring country

D. An opportunity to learn a foreign language

B

Which of the following statements describe the terms "morals" and "values"?

A. They are used to define a society and not an individual.

B. The term "morals" is used to refer to an individual, while the term "values" is used in the context of a society.

C. They are often used to mean the same thing.

D. The term "values" refers to religious judgments, while the term "morals" refer to coded behavior.

C

_____ refers to a set of personal principles formalized into a code of behavior.

A. Traditional norm

B. Value system

C. Extrinsic norm

D. Utilitarianism

B

The quality by which a value is a good thing in itself and is pursued for its own sake, whether anything comes from that pursuit or not, is called a(n) _____.

A. traditional norm

B. instrumental value

C. extrinsic norm

D. intrinsic value

D

An example of intrinsic value is _____.

A. money

B. a package holiday

C. a job offer

D. health

D

Riley was granted the title of Doctor of Medicine by a medical school in Ohio. His parents were extremely happy and content with his achievement. The worth attached to the feelings experienced by Riley's parents is an example of _____.

A. unconventional value

B. intrinsic value

C. instrumental value

D. extrinsic value

B

The quality by which the pursuit of one value is a good way to reach another value is known as _____.

A. intrinsic value

B. extrinsic norm

C. instrumental value

D. traditional norm

C

Identify an example of instrumental value.

A. Money

B. Self-respect

C. Happiness

D. Health

A

Which of the following scenarios exemplifies instrumental value?

A. Victoria possesses half a million in her bank account.

B. Eighty-year-old Mathew exercises on a daily basis and is in good health.

C. Tia's son won his first spelling bee competition which made her extremely happy.

D. Fernando is upset with his poor SAT scores.

A

The difference between intrinsic value and instrumental value is that:

A. as opposed to instrumental value, intrinsic value refers to the adoption of those standards that are ultimately unique to a society.

B. as opposed to intrinsic value, instrumental value refers to the quality by which the pursuit of one value is a good way to reach another value.

C. as opposed to intrinsic value, instrumental value refers to the quality by which a value is a good thing in itself and is pursued for its own sake, whether anything comes from that pursuit or not.

D. as opposed to instrumental value, intrinsic value refers to values acquired through media and religion.

B

In the context of the basic categories of ethics, _____ is just doing the right thing, and it is something most people can understand and support.

A. memory conformity

B. the rule of differentiation

C. double think

D. a simple truth

D

Which of the following is one of the four basic categories of ethics?

A. Personal integrity

B. Psychological behaviorism

C. Rules of differentiation

D. Stretched truth

A

Which of the following best illustrates the concept of simple truth?

A. Ronald lives a life true to his moral standards and is considered the ideal son by his parents.

B. Jonathan's personal value system helps him to stay away from simple conflicts.

C. Amelia believes that murder is wrong, a view supported by most people.

D. Cathy always gives equal respect to all irrespective of whether they are younger or older than her.

C

Which of the following exemplifies the rules of appropriate individual behavior?

A. Jamie had a strict family upbringing that had major impact on his personal moral standards.

B. Mitchell had never lied to her parents or done anything without their consent.

C. Damian always reaches the workplace before time and is always the last one to leave.

D. Alice travels to different countries for work and conducts herself according to the culture of the country she visits.

D

Alison Anderson, the CEO of Anderson Inc., laid the foundation for an apt professional behavior in her workplace. She is honest, aware, and sensitive and is considered a role model by young entrepreneurs. Which of the following basic categories of ethics is depicted in this scenario?

A. Simple truth

B. Rules of differentiation

C. Personal integrity

D. Rules of appropriate behavior for a community or society

C

Which of the following statements accurately explains the basic categories of ethics?

A. A question of someone's personal character, his or her integrity, is not one of the basic categories of ethics.

B. Personal integrity, a category of ethics, looks at ethics from an external rather than an internal viewpoint.

C. Simple truth is an assumption of the four basic categories of ethics.

D. Rules of appropriate behavior for a community or society are only applicable to closed societies.

B

"Do unto others as you would have them do unto you" explains the _____.

A. Golden Rule

B. simple truth

C. virtue ethics

D. Rule of rescue

A

Charlotte works for an advertising agency. She is usually late in responding to e-mails and work-related queries. She has a change of attitude when she realizes that an important project she was responsible for was delayed due to similar behavior from her manager. Now, Charlotte replies to her e-mails on time. Which of the following indicates that this change in Charlotte's behavior is a result of adopting the Golden Rule?

A. She empathizes with others when she faces a similar situation.

B. She is afraid that her manager will give her a low rating.

C. She wants to impress her colleagues.

D. She has no friends and is lonely.

A

The Greek philosopher Aristotle's belief in individual character and integrity established the concept of _____.

A. philosophical ethics

B. virtue ethics

C. ethical relativism

D. utilitarianism

B

_____ refers to a concept of living one's life according to a commitment to the achievement of a clear ideal.

A. The simple truth

B. The Golden Rule

C. Ethical relativism

D. Virtue ethics

D

The problem with virtue ethics is that:

A. it is based on consequentialism.

B. societies are formed according to the Golden Rule.

C. societies can place different emphasis on different virtues.

D. it is based on the idea that the ends justify the means.

C

Ethics for the greater good or _____ is an approach more focused on the outcome of one's actions rather than the apparent virtue of the actions themselves.

A. utilitarianism

B. normative ethics

C. worldcentrism

D. virtue ethics

A

Ethical choices that offer the greatest good for the greatest number of people are referred to as _____.

A. virtue ethics

B. normative ethics

C. ethical relativism

D. utilitarianism

D

The problem with a utilitarian approach to ethics is:

A. the differing attitudes of various societies to the Golden Rule.

B. the idea that the ends justify the means.

C. that societies can place different emphasis on different virtues.

D. that not everyone is committed to doing the right thing.

B

In the context of _____, actions are taken out of duty and obligation to a purely moral ideal rather than based on the needs of a situation.

A. normative ethics

B. universal ethics

C. reductionist ethics

D. deontological ethics

B

Which of the following is a problem with the universal ethics approach?

A. The problem with this approach is the reverse of the weakness in ethics for the greater good.

B. The problem with this approach is the idea that the ends justify the means.

C. The problem with this approach is that individuals share similar standards in a community.

D. The problem with this approach is that everyone is committed to doing the right thing.

A

According to the concept of _____, the traditions of one's society, one's personal opinions, and the circumstances of the present moment define one's ethical principles.

A. universal ethics

B. normative ethics

C. ethical relativism

D. utilitarianism

C

Which of the following statements is true of ethical relativism?

A. The idea of relativism implies some degree of flexibility as opposed to strict black-and-white rules.

B. The idea of relativism implies that the ends of any action justify the means.

C. The problem with this approach is that individuals share similar standards in a community.

D. The problem with this approach is that everyone is committed to doing the right thing without paying any attention to his or her actions.

A

The study of how ethical theories are put into practice refers to _____.

A. meta-ethics

B. normative ethics

C. descriptive ethics

D. applied ethics

D

The basic assumption of ethical theory is that:

A. a person as an individual or community is in control of all the factors that influence the choices he or she makes.

B. everyone is committed to doing the right thing.

C. individuals share similar standards in a community.

D. an individual's pursuit of an ethical ideal should match others' ethical ideals to avoid trouble.

A

_____ refers to a situation in which there is no obvious "right" or "wrong" decision, but rather a "right" or "right" answer.

A. Less evil principle

B. Logical inference

C. Ethical dilemma

D. Defeasible reasoning

C

Joe feels pressured to lie to his client to keep an important contract because of intense market competition. He feels they will never discover the truth. Joe is:

A. undergoing a functional fixedness.

B. facing an ethical dilemma.

C. contemplating the instrumental value attached to the contract.

D. expressing a simple truth.

A

The first step in the three-step process for solving an ethical problem is to:

A. analyze the consequences.

B. make a plan.

C. make a decision.

D. analyze the actions.

A

Which of the following is the final step of the three-step process for solving an ethical problem?

A. Analyzing the consequences

B. Planning a solution

C. Making a decision

D. Analyzing the actions

C

Which of the following questions is identified by Arthur Dobrin to resolve an ethical dilemma?

A. What do your feelings tell you?

B. What are the alternatives?

C. What can be done to resolve the problem?

D. What will people think of you if you don't find a solution?

A

Susan and Jessica are arguing over the importance of Arthur Dobrin's eight questions to be considered when resolving an ethical dilemma. Susan is of the view that these questions are apt and relevant. Jessica does not agree with Susan's view. Which of the following would weaken Susan's argument?

A. Arthur Dobrin's eight questions are based on the assumption that feelings are not taken into consideration.

B. Arthur Dobrin's eight questions are based on the fact that alternative resolutions for one to select from are always present.

C. Arthur Dobrin's eight questions are based on the fact that there is not enough information available for one to answer the questions.

D. Arthur Dobrin's eight questions are based on the assumption that there is sufficient time for the degree of contemplation that such questions require.

D

_____ looks at the information available to people to resolve an ethical dilemma, and draws conclusions based on that information in relation to their own ethical standards.

A. Universal ethics

B. Utilitarianism

C. Ethical reasoning

D. Metaphilosophy

C

The lowest level of moral development in Lawrence Kohlberg's stages of ethical reasoning is the _____ stage.

A. preconventional

B. social choice

C. postconventional

D. social contract

A

Which of the following is true of Lawrence Kohlberg's stages of ethical reasoning?

A. Kohlberg argues that we develop a reasoning process over time, moving through four distinct stages as we are exposed to major influences in our lives.

B. At the postconventional stage, the lowest level of moral development, a person's response to the perception of right and wrong is initially directly linked to the expectation of punishment or reward.

C. At the preconventional stage, the highest level of ethical reasoning, a person makes a clear effort to define principles and moral values that reflect an individual value system rather than simply reflecting a group position.

D. Kohlberg states that stereotypical behavior is recognized, and conformity to that behavior develops in the conventional stage of moral development.

D

The stage in which an individual is focused on self-chosen ethical principles found to be comprehensive and consistent is _____.

A. "good boy/nice girl" ethical orientation

B. law-and-order orientation

C. universal ethical principle orientation

D. obedience and punishment orientation

C

_____, demonstrated by someone's behavior, looks at ethics from an external rather than an internal viewpoint.

A. Personal integrity

B. Simple truth

C. Appropriate behavior

D. Virtue ethics

A

In the context of ethical theories, a challenge takes the form of a dilemma in which the decision one must make requires one to make a right choice knowing full well that one is:

A. not likely to suffer something bad as a result of that choice.

B. not leaving an equally right choice undone.

C. contradicting a personal ethical principle in making that choice.

D. adopting an ethical value of one's community or society in making that choice.

C

By its very definition, a(n) _____ cannot really be resolved in the sense that a resolution of the problem implies a satisfactory answer to the problem.

A. deontological problem

B. fairness dilemma

C. unscrupulous choice

D. ethical dilemma

D

When ethical theories have to be put into practice, one moves into the area of _____.

A. applied ethics

B. ethical reasoning

C. relativism

D. utilitarianism

A

A person is focused on self-chosen ethical principles that are found to be comprehensive and consistent at the _____ stage of Kohlberg's stages of ethical reasoning.

A. obedience and punishment orientation

B. universal ethical principle orientation

C. social contract legalistic orientation

D. law-and-order orientation

B

_____ is the application of standards of moral behavior to business situations.

A. Business structuralism

B. Business contingence

C. Business ethics

D. Business sourcing

C

Which of the following statements best describes business ethics?

A. It involves applying ethical and moral standards to business behavior.

B. It should be applied as a separate set of moral standards from general ethics.

C. It deals exclusively with the ethical behavior of creditors and shareholders.

D. It can by understood from two perspectives—consequentialism and constitutivism.

A

In the context of business ethics, the _____ perspective is a summation of the customs, attitudes, and rules that are observed within a business.

A. descriptive

B. normative

C. preventative

D. prescriptive

A

In the context of business ethics, a _____ perspective evaluates the degree to which the observed customs, attitudes, and rules within a business can be considered ethical.

A. subjective

B. prohibitive

C. normative

D. constitutive

C

A perspective of business ethics that is a simple documentation of what is happening in a business situation is termed _____ perspective.

A. arbitrative

B. meditative

C. prescriptive

D. descriptive

D

A perspective of business ethics that involves recommending what should be happening in a business situation is termed _____ perspective.

A. delineative

B. evasive

C. substantive

D. normative

D

Which of the following is true of business ethics?

A. The descriptive dimension of business ethics evaluates the degree to which the observed customs, attitudes, and rules within a business are ethical.

B. Business ethics should ideally not reflect the ethical concepts of the society within which an organization functions.

C. The normative dimension of business ethics is a summation of the customs, attitudes, and rules that are observed within a business.

D. Business ethics should not be applied as a separate set of moral standards or ethical concepts from general ethics.

D

A _____ is defined as someone with a share or interest in a business enterprise.

A. stakeholder

B. moderator

C. mediator

D. crossholder

A

49. Which of the following is true of stakeholders?

A. Not every stakeholder is relevant in every business situation.

B. The stakeholders of an organization are not affected by its unethical behavior.

C. The cancellation of an organization's dividends has no impact upon stakeholders.

D. Creditors are not considered the stakeholders of an organization.

A

GeoTransmit, a large multinational telecommunications company, hid from its investors the extensive debt and losses it had accumulated. Its fraudulent accounting behavior was eventually discovered, and the company went bankrupt. Which of the following statements is true of the future of GeoTransmit and its stakeholders?

A. The different stakeholders of GeoTransmit will be affected in different ways.

B. The decision of GeoTransmit to hide its losses from its investors will not have any impact on its market value.

C. The stakeholders of GeoTransmit will not be affected by its fraudulent practices.

D. The decision of GeoTransmit to hide its losses from its investors is considered to be ethical.

A

The system that directs and controls business organizations is termed _____.

A. business ethics

B. organizational culture

C. retail optimization

D. corporate governance

D

Which of the following is true of corporate governance?

A. It plays no role in enforcing ethical behavior in a workplace.

B. It is the process by which a government nationalizes corporations.

C. It is the system by which business corporations are directed and controlled.

D. It is the entity responsible for the execution of a company's corporate social responsibility policy.

C

A feature of the standard of corporate governance is that it _____.

A. ensures that certain select corporations are allowed to monitor the ethical conduct of government officials

B. plays no role in determining the impact of fraudulent policies

C. ensures that officers of an organization fulfill their obligations to their stakeholders

D. plays no role in regulating the ethical behavior of employees in an organization

C

54. Which of the following is true of the standard of corporate governance?

A. It is a set of guidelines that has been universally adopted by all business organizations.

B. It does not ensure that an organization's officers fulfill their obligations to the stakeholders.

C. It focuses on establishing a leadership pipeline for an organization.

D. It appears to be at its lowest level in recent business history.

D

The term "business ethics" is sometimes considered an oxymoron because:

A. small, new businesses tend to be less honest than large, established businesses.

B. the recent spate of financial scandals portrays organizations as fundamentally unethical.

C. the standard of corporate governance has been at its highest level in the last decade.

D. local businesses tend to have fewer accounting scandals than international businesses.

B

The main function of a code of ethics is to _____.

A. encourage managers and employees to make unsupervised decisions

B. guide managers and employees in making sound decisions and choices every day

C. liberate chief executive officers from any constraints placed by boards of directors

D. decrease the independence of boards of directors and increases the power of investors

B

A(n) _____ is defined as a central guide that supports day-to-day decision making at work.

A. business matrix

B. code of ethics

C. internal channel

D. external channel

B

Which of the following functions does a code of ethics perform?

A. It clarifies an organization's cornerstones to its employees, managers, and stakeholders.

B. It allows the board members of an organization to be accountable only to themselves.

C. It allows chief executive officers unrestrained power in the decision-making process.

D. It works with the standards of corporate governance to limit employees' independence.

A

Which of the following statements is true of codes of ethics?

A. Fewer small businesses adopt a formal code of ethics now than they did in the past.

B. The codes are structured to empower employees to make effective decisions confidently.

C. The codes prescribe appropriate courses of action for every business situation in detail.

D. Fewer international organizations adopt a formal code of ethics now than they did in the past.

B

As an internal document, a code of ethics should represent a clear guide to _____ for making good decisions and choices.

A. managers and employees

B. competitors and consumers

C. stockholders and shareholders

D. retailers and wholesalers

A

Over the last five decades, the issue of corporate social responsibility has advanced from an abstract debate to a core _____ issue with clearly established legal liabilities.

A. performance-assessment

B. profit-oriented

C. internal-relations

D. profit-minimization

A

One of the changes that have occurred in a business environment over the last five decades is that _____.

A. a code of ethics has developed from a quality-measurement document to a document related to human resources

B. a company no longer requires senior executives to be accountable to the board of directors and their stakeholders

C. corporate ethics has moved from the organizational mainstream into the domain of legal and human resource departments

D. corporate social responsibility has advanced from an abstract debate to a core performance-assessment issue

D

Over the last five decades, corporate ethics has moved from the domain of human resource departments into the _____.

A. legal department

B. finance and accounting department

C. talent management portfolio

D. organizational mainstream

D

Which of the following is true of corporate ethics?

A. It has advanced from a core performance-assessment issue to an abstract debate.

B. It does not require the senior executives of a company to be accountable to stakeholders.

C. It does not deal with performance measurement, but with cosmetic public relations.

D. It has moved from the domain of legal departments into the organizational mainstream.

D

Over the last five decades, codes of ethics have matured from cosmetic public relations documents into _____ documents.

A. profit-oriented

B. financial-assessment

C. performance-measurement

D. expenditure-maximization

C

Over the last five decades, codes of ethics:

A. have matured from performance-measurement documents into cosmetic public relations documents.

B. have been adopted by a decreasing number of corporations because employees and managers no longer need guidance.

C. have been adopted by an increasing number of organizations who share them with all their stakeholders.

D. have relieved chief executive officers from the control mechanisms used by boards of directors.

C

The _____ of 2002 introduced greater accountability for chief executive officers and boards of directors in signing off on the financial performance records of the organizations they represent.

A. Comstock Act

B. Federal Corrupt Practices Act

C. Sarbanes-Oxley Act

D. National Banking Act

C

A situation in which there is no obvious right or wrong decision, but rather a right or right answer, is termed _____.

A. status paradox

B. absence paradox

C. discursive dilemma

D. ethical dilemma

D

The _____ approach for resolving an ethical dilemma considers which decision would provide the greatest good for the greatest number of people.

A. ends-based

B. rules-based

C. Golden Rule

D. Volcker's Rule

A

The principle for resolving an ethical dilemma in which one considers the question of what would happen if everyone made the same decision as him or her is termed _____ principle.

A. rules-based

B. ends-based

C. categorical imperative

D. moral syncretism

A

The principle for resolving an ethical dilemma that considers "do unto others as you would have them do unto you" is the _____.

A. Golden Rule

B. rules-based approach

C. formative approach

D. egocentric rule

A

Which of the following is true of the three principles for resolving an ethical dilemma?

A. They predict the behavior of other people involved in a particular situation.

B. They do not offer a perfect solution or resolution for every situation.

C. They need to be applied simultaneously in order to be effective.

D. They can only be applied to situations involving personal issues.

B

73. How can companies discourage unethical behavior in their employees?

A. By disciplining repeat offenders in private

B. By conducting regular audits and random spot checks

C. By not adopting a formal code of ethics

D. By not giving their board of directors more power than the CEOs

B

The belief that an activity is safe because it will never be found out is a common rationalization behind an employee's unethical conduct. To deter unethical behavior based on this rationalization, a manager should _____.

A. protect the identity of the personnel involved

B. announce the misconduct publicly

C. let go of first-time offenders

D. reprimand such an employee in public

B

One way through which companies reduce unethical behavior in their employees is by _____.

A. disciplining unethical behavior in front of their boards of directors

B. creating and maintaining a corporate culture of trust

C. giving their CEOs more power than their boards of directors

D. paying low attention to audits and spot checks

B

The _____ defines a code of ethics as a central guide to support day-to-day decision making at work.

A. Ethics Resource Center (ERC)

B. Better Business Bureau (BBB)

C. Ethical Remuneration Community (ERC)

D. Research Ethics Board (REB)

A

As a message to an organization's stakeholders, _____ should represent a clear corporate commitment to the highest standards of principled behavior.

A. a charter of compassion

B. corporate governance

C. a code of ethics

D. cuneiform law

C

In the context of the history of business ethics, identify a dramatic change that has taken place in the business environment over the past five decades.

A. The increased presence of an employee voice has made employees feel more comfortable speaking out against actions of their employers that they feel to be irresponsible.

B. The issue of corporate social responsibility has advanced from a core performance-assessment issue with clearly established legal liabilities to an abstract debate.

C. Corporate ethics has moved from the domain of finance and marketing departments into the human resource department.

D. Very few number of organizations are willing to commit to sharing their resources with all their stakeholders.

A

When employees observe unethical behavior or are asked to do something that conflicts with their own personal values, one of the clichéd guidelines available to them is to _____.

A. ignore the matter completely

B. think about what's right for them instead of the organization

C. divulge into illegal deeds to help their company

D. consult the company code of ethics

D

Resolution of an ethical dilemma can be achieved by first _____.

A. selecting between conflicting values that are important to one as an employee

B. coming up with ways to justify unethical behavior

C. recognizing the type of conflict one is dealing with

D. seeking help from one's employer to deal with the rising contention

C

Identify a true statement about a company's organizational culture.

A. It represents the sum of all the policies and procedures from each of the functional departments in the organization.

B. It is governed by a set of laws and legal precedents and is closed to interpretation.

C. It consists of suggestions established in an organization on how to make fraudulent practices look legal.

D. It refers to the characteristic of publicly committing to the highest professional standards and sticking to that commitment.

A

Which of the following statements is true of organizational culture?

A. Organizational culture represents only the written policies and procedures of an organization.

B. Organizational culture includes the values, beliefs, and norms shared by all employees of that organization.

C. Employees' personal value system is always in tune with the ethical standards of the organization's operating culture.

D. Stakeholders lack interest in the ethical performance of an organization.

B

Anderson Enterprises endorses low power distance which implies that the firm lays emphasis on a less consultative or democratic work structure. Subordinates work on important assignments and managers often socialize with them. Which of the following concepts is being reflected in the above scenario?

A. Ethical relativism

B. Value chain

C. Organizational culture

D. Corporate conscience

C

Identify a true statement about value chain.

A. It is inclusive of the values, beliefs, and norms shared by all the employees of an organization.

B. It represents the sum of all the policies and procedures—both written and informal—from each of the functional departments in an organization.

C. It is composed of the key functional inputs that an organization provides in the transformation of raw materials into a delivered product or service.

D. It helps coordinate with human resources in the recruitment, training, and development of personnel for all aspects of an organization.

C

A composition of the key functional inputs that an organization provides in the transformation of raw materials into a delivered product or service is termed _____.

A. value chain

B. cognitive work analysis

C. dynamic simulation

D. corporate governance

A

According to the value chain of an organization, which of the following is classified as a primary activity?

A. Human resources management

B. General administration

C. Systems development

D. Sales and marketing

D

A primary activity of an organization according to the value chain is that of _____.

A. human resources management

B. recruitment and remuneration management

C. supply chain management

D. organizational development management

C

In the context of the value chain of an organization, _____ is a support activity.

A. marketing

B. general administration

C. distribution

D. customer service

B

In the context of the value chain of an organization, which of the following is a line function of an organization?

A. Marketing

B. Supply chain management

C. Distribution

D. Human resources management

D

_____ serves as a support line function to key functional areas in an organization's value chain.

A. Technology

B. Manufacturing

C. Supply chain management

D. Distribution

A

_____ serves as a support line function to key functional areas in an organization's value chain.

A. Advertising

B. Supply chain management

C. Human resources management

D. Distribution

C

Which of the following statements is true of a company's value chain?

A. Marketing, sales, and customer service are the support activities.

B. The research and development department coordinates the recruitment of personnel for all aspects of the organization.

C. The marketing department sources the components and builds the product.

D. Supply chain management and operations are the primary activities.

D

The research and development (R&D) department of an organization:

A. is solely responsible for creating employees' career development programs.

B. has a minute impact on the success of the organization.

C. carries the responsibility for the future growth of the organization.

D. is the most important department of the organization.

C

Brendon joins Almer Inc. as the head of the research and development (R&D) team. In order to allow Almer Inc. to capture and maintain a leading position in the market, Brendon should _____.

A. incorporate customer feedback from market research and competitive feedback from closely monitoring the organization's competition

B. coordinate the recruitment, training, and development of personnel for all aspects of the organization

C. audit and certify the accuracy of the company's financial statements

D. maintain the technological backbone of the organization

A

Cathy heads the research and development (R&D) team of Anderson Enterprises. Which of the following R&D functions should Cathy and her team undertake to allow the organization capture and maintain a leading position in its market?

A. Cathy and her team should manage individual hardware and software needs that are specific to the organization and its line of business.

B. Cathy and her team should coordinate the recruitment, training, and development of personnel for all aspects of the organization.

C. Cathy and her team should certify the accuracy of the company's financial statements.

D. Cathy and her team should make a complex set of risk assessments and technical judgments in order to deliver a product design.

D

Exotic Crafts Inc., a handicraft manufacturing company, has an established marketing department responsible for various important functions. The marketing department is most likely engaged in _____.

A. managing individual hardware and software needs that are specific to the organization

B. ensuring that the products reach the hands of a satisfied customer

C. coordinating the recruitment, promotion, and remuneration of the employees

D. auditing and certifying the accuracy of the company's financial statements

B

Which of the following statements is true of marketing?

A. The marketing process is responsible for ensuring that the product design meets all the required specifications.

B. Marketers see themselves as responsible for ensuring product quality.

C. Marketers see themselves as providing products (or services) to customers who have already expressed a need for and a desire to purchase those products.

D. The marketing process is responsible for ensuring that products gets manufactured within the stipulated period of time.

C

_____ is represented by ethical choices that offer the greatest good for the greatest number of people.

A. Deontology

B. Utilitarianism

C. Virtue ethics

D. State consequentialism

B

Actions that are taken out of duty and obligation to a purely moral ideal, rather than based on the needs of the situation, are known as _____.

A. utilitarianism

B. virtue ethics

C. consequentialism

D. universal ethics

D

Actions placed within a strictly moral context instead of basing actions on the needs of a particular situation is termed _____.

A. pragmatic ethics

B. virtue ethics

C. normative ethics

D. universal ethics

D

Marketing professionals abide by a code of ethics adapted by the _____.

A. Society for Marketing Resources

B. American Marketing Association

C. American Ethics Association

D. Marketers' Ethics Resource Center

B

The code of ethics adapted by the _____ speaks about doing no harm, fostering trust, and improving "customer confidence in the integrity of the marketing exchange system."

A. American Counseling Association (ACA)

B. Society for Marketing Resources

C. American Marketing Association (AMA)

D. Marketing Research Association (MRA)

C

ThinkNow is an advertising firm based in Dallas, Texas. One of its departments is in charge of the hiring process and is responsible for the orientation of newly hired employees. Which of the following organizational areas does this department represent?

A. Finance

B. Human resources

C. Research and development

D. Information systems

B

The efficient management of providing payroll and benefits for happy and productive employees is looked after by the _____ department of an organization.

A. research and development

B. human resources

C. consumer relations

D. marketing

B

Amanda heads the human resources department in Elenear Enterprises. The management has entrusted her with certain functions. Within the organization, Amanda should be directly involved in:

A. the marketing of the organization's products.

B. the maintenance of the technology in the organization.

C. the recruitment and selection of the right candidates for different positions.

D. the incorporation of customer feedback and competitive feedback.

C

Which of the following is a human resources function within an organization?

A. Incorporation of customer feedback and competitive feedback

B. Maintenance of the technology in the organization

C. Marketing of the organization's products

D. Documentation of periodic performance reviews

D

Ideally, the human resources function within an organization should be directly involved in:

A. the documentation of disciplinary behavior and remedial training, if needed.

B. the maintenance of the technology in the organization—data transfer and security, e-mail communications, internal and external websites, and so on.

C. the marketing of the organization's products.

D. the incorporation of customer feedback from market research and competitive feedback from closely monitoring the competitors.

A

If an employee leaves a company, the _____ department should host an exit interview to ensure that anything the organization can learn from the employee's departure is fed back into the company's strategic plan for future growth and development.

A. research and development

B. marketing

C. finance

D. human resources

D

Walter's Inc., a cement manufacturing firm, fails to meet the deadline for delivering 500 kg of cement to QuickContruct Inc. The officer responsible for the distribution and sale at Walter Inc. bribes the officer at QuickContruct Inc. to alter the date of delivery in the original contract. Which of the following concepts is best illustrated in the above scenario?

A. Ethical dilemma

B. Social loafing

C. Ethical transgression

D. Utilitarianism

C

An argument made by the advocates of ethical business conduct about the human resources department is that it should _____.

A. sideline issues related to ethics

B. ensure that ethics is given the least priority

C. not include an ethics component in the leadership selection process

D. not be the sole creator of the code

D

The _____ keeps track of a company's financial transactions by documenting money coming in and money going out and balances the accounts at the end of the period.

A. auditing function

B. compliance function

C. accounting function

D. financial transactions function

C

The certification of an organization's financial statements or books, by an impartial third-party professional, as being accurate is offered by the _____.

A. auditing function

B. compliance function

C. accounting function

D. financial transactions function

A

The accounting profession is governed by a set of _____.

A. generally accepted accounting principles

B. laws for accounting

C. established legal precedents for accounting

D. universal ethics

A

Which of the following represents a legal accounting practice?

A. Taking questionable deductions

B. Overvaluing assets

C. Deferring receipts from one quarter to the next to manage tax liability

D. Underreporting income to decrease the amount paid as taxes

C

For the accounting profession, the last resort for ethical guidance and leadership is the Code of Conduct issued by the _____.

A. International Association of Public Accountants

B. Certified Public Accountants Association

C. Accounting Institute of Ethical Conduct

D. American Institute of Certified Public Accountants

D

_____ is defined as a situation where one relationship or obligation places an individual or firm in direct dispute with an existing relationship or obligation.

A. Disconfirmed expectancy

B. Conflict of interest

C. Right of option

D. Moral hazard

B

A company is of the view that what is best for its shareholders may not be best for its employees and the community. It also believes that the most efficient means to achieve increased profits is to close its factory and move production overseas, which is not agreed upon by its shareholders. This is an example of _____.

A. a disconfirmed expectancy

B. a conflict of interest

C. emotional contagion

D. social loafing

B

Which of the following statements is true of ethical challenges in organizations?

A. Nonprofit organizations do not face problems with unethical behavior.

B. The main reason behind bending the rules regularly in organizations is the motive of gaining profits.

C. The pursuit of profit in any circumstance is unethical.

D. People across all organizations face the same kind of ethical challenges in their day-to-day activities.

B

In an organization, _____ see themselves as providing products (or services) to customers who have already expressed a need for and a desire to purchase those products.

A. Appraisers

B. Marketers

C. Decision analysts

D. Purchasing managers

B

79. The marketing challenge is more directly aligned to the debate between universal ethics and _____.

A. consequentialism

B. pragmatism

C. utilitarianism

D. subjectivism

C

The need for certified financial documents assumes great importance for an organization when _____.

A. it goes public by selling stock in the organization on a public stock exchange

B. it needs to recruit a large number of employees

C. it has to increase its corporate social responsibility (CSR) activities

D. it is being charged of fraudulent practices by its employees and shareholders

A

Which of the following is the most likely reason why organizations maintain their own internal auditors?

A. To interact with customers regarding the organizations' products

B. To conduct internal training needs assessment

C. To allocate personnel on specific duties

D. To monitor the accuracy of financial functions

D

In an organization, conflict of interest is most likely to occur when:

A. the organization's product has the potential to be harmful to the organization's customers.

B. an employee is unhappy with the performance ratings given by his or her manager.

C. an interviewer has lesser experience than the candidate being interviewed.

D. the hourly wage paid by the organization is less than the National Minimum Wage (NMW).

A

The term "_____" is best defined as the actions of an organization that are targeted toward achieving a social benefit over and above maximizing profits for its shareholders and meeting all its legal obligations.

A. value ethics

B. virtue ethics

C. corporate conscience

D. corporate aggressiveness

C

Which of the following is an example of corporate social responsibility (CSR)?

A. Brenner Enterprises gives its employees greater freedom in choosing projects.

B. Dawson Inc. uses a clean-fuel technology shuttle for employee conveyance.

C. Larsen Inc. provides free lunch coupons to its employees.

D. Infinite Corp. promotes team building activities for employees.

B

Happy Times (HT) is an alcohol manufacturing brand that deals with several types of alcoholic beverages. HT uses social media for promoting the message of responsible drinking. It sponsors the FreeTaxi program for customers with HT membership on Christmas and New Year's Eve. It has also initiated several community welfare projects where a percentage of the profits go to the Hunger Relief Fund for Children. In the given scenario, which of the following is best illustrated?

A. Ethical ambiguity

B. Universal ethics

C. Emotional contagion

D. Corporate citizenship

D

In addition to achieving social benefits, which of the following best illustrates an example of a company effectively implementing corporate social responsibility (CSR)?

A. It provides its employees with free lunch.

B. It allows flexible working hours for its employees.

C. It gives better pricing deals to older clients.

D. It fulfills all its legal obligations.

D

Which of the following illustrates that a company has failed at implementing corporate social responsibility (CSR)?

A. It does not provide stock options for its employees.

B. It does not pay all taxes related to the profitable business operations.

C. It does not operate in hazardous working environments.

D. It does not provide flexible working hours to its employees.

B

Corporate social responsibility (CSR) always assumes that a corporation is:

A. operating in a competitive environment.

B. reluctant in committing itself to follow a retrenchment strategy.

C. permitted to ignore federal and state legal obligations.

D. working only toward achieving its profit goals.

A

Which of the following statements is true of corporate social responsibility (CSR)?

A. The social contract approach to CSR states that the only obligation of a corporation is to maximize profits for its shareholders.

B. The awakening to CSR for most companies happened only after being surprised by public responses to issues that had not previously been a part of their business responsibilities.

C. The instrumental approach to CSR states that a corporation has an obligation to society over and above the expectations of its shareholders.

D. The ideology of CSR speaks about doing no harm, fostering trust, and improving "customer confidence in the integrity of the marketing exchange system."

B

The instrumental approach to corporate social responsibility (CSR) states that:

A. the only obligation of a corporation is to promote socialist economic planning.

B. a corporation has an obligation to society over and above the expectations of its shareholders.

C. the only obligation of a corporation is to maximize profits for its shareholders.

D. a corporation has an obligation to the community and environment.

C

Which of the following is an example of an organization's instrumental approach to corporate social responsibility (CSR)?

A. Anonymous Minds, an advertising firm, provides employees with healthy meals and has a gymnasium at their workplace.

B. Anderson Inc. provides employees with cab services or gives them full fuel allowance.

C. Larsen's Corp., an investment company, uses different mechanisms to increase profits and has performance incentives for its employees.

D. GreenSpin Inc. uses biodegradable plastic containers in its office cafeteria.

C

Spark Inc. (SI), a multinational corporation, had reported large losses in the previous financial year. To overcome these losses, the company planned to take the instrumental approach to corporate management. Which of the following best illustrates this approach?

A. It provides employees with healthy meals and has a gymnasium at the workplace.

B. It provides employees with cab services or gives them fuel allowance.

C. It uses its resources to enhance the productivity of employees and thus increases profits.

D. It uses biodegradable plastic containers in its office cafeteria.

C

Which of the following companies implements Milton Friedman's view of the corporate world?

A. A company that donates a certain portion of profit to an organization for underprivileged children

B. A company that makes as much profit as possible to ensure that the investments made by the company are successful

C. A company that stipulates that profits should be earned at any cost, be it deception or fraud

D. A company that believes its social responsibility is beyond serving the interests of its stockholders

B

Which of the following statements is true of Milton Friedman's view of the corporate world?

A. Friedman argues that it is not considered unethical for a corporation to just deliver the profits of the company to the society rather than delivering it to its investors.

B. Friedman's position illustrates that an organization has a social responsibility that goes beyond serving the interests of their stockholders.

C. Friedman's theory that a company no longer requires senior executives to be accountable to the board of directors has been a crucial turning point in the business world.

D. Friedman argues that, as an employee of the corporation, a manager has an ethical obligation to fulfill his role in delivering on the expectations of his employers.

D

Which approach to corporate social responsibility (CSR) assumes that there are no external consequences to the actions of the corporation and its managers?

A. Instrumental approach

B. Social contract approach

C. Trident approach

D. Utilitarian approach

A

The _____ approach to corporate management refers to the perspective that a corporation has an obligation to society over and above the expectations of its shareholders.

A. social contract

B. shareholder

C. free-enterprise

D. instrumental

A

Which of the following best illustrates the social contract approach to corporate management?

A. Indibean Inc. promotes extensive work shifts.

B. Armac Inc. asks its employees to work on holidays to increase profits.

C. At Clark Enterprises, there have been substantial layoffs to control costs.

D. At Redder Enterprises, employees' wages have grown at a higher rate than inflation.

D

Hoffmann Enterprises (HE), a manufacturer of industrial goods, primarily focuses on meeting the demands of the market with quality products. It also undertakes environmental protection endeavors that promote the use of renewable sources of energy. HE illustrates the _____ approach to corporate management.

A. free-enterprise

B. instrumental

C. shareholder

D. social contract

D

Which of the following statements is true of the social contract approach to corporate management?

A. The primary focus of the old social contract laid emphasis on equal advancement in the quality of life and economic growth.

B. The modern social contract approach argues that there is an obligation for the corporation to meet the demands of society rather than just the demands of a targeted group of customers.

C. The consequences of the modern social contract approach to corporate management is growth at the expense of rising costs, wages growing at a lower rate than inflation, and so on.

D. The main focus of the old social contract was to maintain a longer-term perspective than just the delivery of quarterly earnings numbers.

B

What is the difference between the old social contract approach and the modern social contract approach to corporate management?

A. The old social contract emphasizes advancement in the quality of life, whereas the modern social contract approach emphasizes monetary and financial advancement.

B. The old social contract approach argues that there is an obligation for the corporation to meet the demands of society, whereas the modern social contract approach argues that a company's obligation is only to its shareholders.

C. The modern social contract approach focuses on the delivery of quarterly earnings numbers, from a short-term perspective, whereas the old social contract focuses on maintaining a longer-term perspective.

D. The modern social contract approach aims to meet the demands of all stakeholders and the shareholders, whereas the old social contract approach was based only on economic growth.

D

According to the _____ to management, by recognizing stakeholders and not just shareholders, corporations must maintain a long-term perspective rather than simply delivering quarterly earnings numbers.

A. social contract approach

B. Kantian approach

C. virtue approach

D. instrumental approach

A

Henry Ford II recognized that _____.

A. corporations' actions have no impact on their environmental conditions

B. corporations do not operate in an isolated environment

C. corporations were only economic enterprises and not social institutions

D. corporations have no responsibility toward their shareholders or their stakeholders

B

The policy of corporate social responsibility (CSR), where doing what's best for the customers translates into what's best for the company in the long run, exemplifies the _____.

A. social contagion theory

B. concept of doing well by doing good

C. concept of the unity of opposites

D. effective altruism theory

B

Which of the following, according to Joseph F. Keefe, is a major trend behind the phenomenon of corporate social responsibility (CSR)?

A. Increased transparency of companies

B. Increased nationalization

C. Failure of the private sector

D. Failure of globalization in corporations

A

According to Joseph F. Keefe, which of the following is a major trend behind the corporate social responsibility (CSR) phenomenon?

A. Nationalization

B. Globalization

C. The failure of the private sector

D. The failure of the industrial sector

B

According to Joseph F. Keefe, which of the following is true of the major trends behind the corporate social responsibility (CSR) phenomenon?

A. Companies easily conceal whatever they do (good or ill) as it will not be known at all.

B. Globalization represents a new stage of capitalist development, this time with public institutions in place to protect society by balancing private corporate interests against broader public interests.

C. Corporations are under increasing pressure from diverse stakeholder constituencies to demonstrate that business plans and strategies are environmentally sound and contribute to sustainable development.

D. In the United States and other developed nations, citizens have complete confidence in the public sector as the best and most appropriate venue for addressing a growing list of social problems.

C

A true statement about corporate social responsibility (CSR) initiatives is that they _____.

A. have maximum efficiency when approached from a strict view of just profit maximization

B. do not generate long-term financial gains to the organization

C. do not always generate immediate financial gains to the organization

D. have been easily transformed from being a theoretical concept to an operational concept

C

Corporations that experiment with corporate social responsibility (CSR) initiatives run the risk of creating adverse results as:

A. employees feel that they are working for an insincere, uncaring organization.

B. the public sector is considered the best or most appropriate venue for addressing a growing list of social problems.

C. customers feel ignored since the corporation focuses solely on helping the community.

D. the organization sees the benefit of CSR but does not feel the need to develop the concept.

A

The approach that considers a company's social, financial, and environmental impact rather than focusing solely on its financial impact is the _____ approach.

A. corporate governance

B. double bottom-line

C. ethical governance

D. triple bottom-line

D

Which of the following illustrates a firm having a triple bottom-line (3BL) approach?

A. Adbel Inc. issues free meal coupons to its employees.

B. Brenerz Enterprises reduces its industrial waste by half and provides cab services for its employees.

C. Brink-T Technologies donates ten percent of its profit to charity, reduces toxic emission from its plants, and has ten percent increase in financial turnovers.

D. Amelia and Lewis Enterprises provides longer maternity/paternity leaves and free medical insurances for all their employees.

C

A criticism of the triple bottom-line (3BL) approach is that _____.

A. it does not take a holistic view of what constitutes sustainability for a company

B. it has a narrow view of what constitutes profit for a company

C. there is a higher focus on financial goals rather than on social and environmental goals

D. there is no record or real evidence on how it can be measured

D

Organizations pursuing a clearly defined sense of social conscience in managing their financial responsibilities to shareholders, their legal responsibilities to their local community and society as a whole, and their ethical responsibilities to do the right thing for all their stakeholders follow a(n) _____ corporate social responsibility (CSR) initiative.

A. altruistic

B. strategic

C. ethical

D. economic

C

In _____ corporate social responsibility (CSR), organizations take a philanthropic approach by underwriting specific initiatives to give back to the company's local community or to designated national or international programs.

A. altruistic

B. Kantian

C. utilitarian

D. deontological

A

Bector Airlines supports relief camps in the Republic of Cadmia with donations of both money and employee-donated volunteer hours. It also provides packaged food in times of natural crises such as hurricanes, earthquakes, etc. This is an example of _____ corporate social responsibility (CSR).

A. strategic

B. economic

C. altruistic

D. ethical

C

_____ corporate social responsibility (CSR) refers to the philanthropic approach to CSR in which organizations target programs that will generate the most positive publicity or goodwill for the organization but which runs the greatest risk of being perceived as self-serving behavior on the part of the organization.

A. Altruistic

B. Ethical

C. Economic

D. Strategic

D

_____ is one of the newest and increasingly questionable practices in the world of corporate social responsibility (CSR).

A. Risk management

B. Water conservation

C. Positive greenhouse approach

D. Carbon neutral operations

D

The practices of making a company's operations _____ to offset damage to the environment through their greenhouse gas emissions was initially developed as a solution for those industries that face significant challenges in reducing their emissions.

A. focus on consumerism

B. environmentally harmless

C. backward integrated

D. carbon neutral

D

Another term for corporate social responsibility (CSR) is _____.

A. corporate absolutism

B. corporate consequentialism

C. corporate citizenship

D. corporate ownership

C

The definition of corporate social responsibility as the actions of an organization that prioritize social benefit over maximizing profits and meeting legal obligations assumes that:

A. the corporation has maximum market share.

B. the corporation is operating in a competitive environment.

C. the corporation is committed to a non-aggressive growth strategy.

D. the laws of the country in which the corporation operates is not too restrictive.

B

The most famous advocate of the instrumental approach model to corporate social responsibility is the Nobel Prize-winning economist _____.

A. Milton Friedman

B. Henry Ford II

C. Jim Roberts

D. Joseph F. Keefe

A

Why is it difficult for many organizations to make the transition from corporate social responsibility (CSR) as a theoretical concept to CSR as an operational policy?

A. Corporations are aware of the disintegrative strategy that CSR can deploy and hence do not engage in its initiatives.

B. Employees refuse to work with such initiatives as they do not get paid for it.

C. Managers are unable to design initiatives that will benefit their company and the public.

D. Delayed response in financial gains tests the commitment of those organizations that are inclined to dispense with experimental initiatives.

D

Organizations pursue operational efficiency through detailed monitoring of their _____, that is, how much money is left after all the bills have been paid from the revenue generated from the sale of their product or service.

A. strategic policies

B. bottom line

C. employment remuneration

D. financial resourcing

B

Corporate governance is the process by which _____.

A. the revenue assets of a business are fixed

B. corporations are nationalized by the government

C. the government is monitored by corporations

D. corporations are directed and controlled

D

Setting up a governance system that allows organizations to be directed and controlled:

A. leads to underpinning the integrity and efficiency of financial markets.

B. weakens a company's potential and makes it less attractive to investors.

C. paves way for financial difficulties and incidents of fraud.

D. makes managers and board members less accountable to shareholders.

A

If the corporate governance in an organization is poor, it _____.

A. weakens the company's potential and makes it less attractive to investors

B. forces the board of directors to be accountable to the senior executives against their will

C. leads to employees taking control of their own decisions without consulting their managers

D. results in underpinning the integrity and efficiency of financial markets

A

The board of directors of a company:

A. is not accountable to the company's stakeholders.

B. should ideally be elected by the CEO.

C. oversees the governance of the organization.

D. should ideally have less power than the CEO.

C

The inside members of a company's board of directors:

A. typically have no direct connection with the company.

B. hold managerial positions within the company.

C. comprise the company's creditors and suppliers.

D. include the external consultants used by the company.

B

Identify a feature of the outside members of an organization's board of directors.

A. They are not permitted to have financial connections to the organization.

B. They have less importance than the inside members in the decision-making process.

C. They are the ones who make all the major organizational decisions without consulting the inside members.

D. They may comprise the company's creditors, suppliers, or consultants.

D

One of the responsibilities of the audit committee of a company is to:

A. elect members of the company's board of directors.

B. manage the company's leadership pipeline.

C. monitor the company's accounting policies and procedures.

D. elect members of the corporate governance committee.

C

Catherine, a board member of Clayton Inc., is also part of an operating committee that is responsible for overseeing the accounting policies of the company. This committee is known as the _____.

A. business sales unit

B. audit committee

C. human resourcing unit

D. marketing committee

B

The _____ of a company is an operating committee responsible for determining the salaries, bonuses, and perks for the CEO and other senior executives.

A. credit committee

B. business sales unit

C. compensation committee

D. quality assurance unit

C

Which of the following is true of the compensation committee of a company?

A. It sets the compensation for all the employees of the company.

B. It cannot be staffed by individuals on the company's board of directors.

C. It cannot be staffed by independent or outside directors of the company.

D. It oversees the salaries and bonuses of the senior executives only.

D

Identify a true statement about the corporate governance committee of a company.

A. It monitors the ethical performance of the corporation.

B. It does not oversee compliance with the company's internal code of ethics.

C. It is in charge of setting the compensation packages of all the senior executives.

D. It does not include the employees of the company.

A

One of the primary responsibilities of an organization's _____ is to ensure compliance with the company's internal code of ethics.

A. business sales unit

B. quality assurance unit

C. corporate governance committee

D. proposal committee

C

The Cadbury report, established by Sir Adrian Cadbury in 1992 to address financial aspects of corporate governance, addressed:

A. the cultural aspects of a company's activities.

B. the financial aspects of corporate governance.

C. the need to consider the triple bottom line.

D. the failings of the "comply or explain" policy.

B

The main focus of the Cadbury report, established by Sir Adrian Cadbury in 1992 to address financial aspects of corporate governance, was on _____.

A. external governance

B. corporate social responsibility

C. internal governance

D. recruiting policy

C

The Cadbury report, established by Sir Adrian Cadbury in 1992 to address financial aspects of corporate governance, recommended:

A. adopting a Code of Best Practice to achieve high standards of corporate behavior.

B. considering the environmental and social aspects of an organization's activities.

C. formally recognizing all the stakeholders of an organization.

D. considering a company's impact on the larger community.

A

A feature of the King I report on corporate governance, established by Mervyn King in 1994, is that _____.

A. it was inclusive of the recruiting policies of an organization

B. it limited its scope to internal corporate governance

C. it limited its scope to financial and regulatory accountability

D. it considered the impact of corporations' on the larger community

D

The King II report, released by the committee formed by Mervyn King, on corporate governance:

A. strongly advocated that companies follow the traditional, single bottom line of profitability.

B. did not look beyond companies or take their impact upon the larger community into account.

C. formally recognized the economic, environmental, and social aspects of a company's activities.

D. did not recognize the involvement of a corporation's stakeholders in the efficient operation of an organization.

C

One of the common characteristics of the King I and King II reports on corporate governance was that _____.

A. they both limited their scope to the financial and regulatory accountability of corporations

B. they both advocated following the traditional, single bottom line of profitability

C. they both rejected the triple bottom line suggested by the Cadbury approach

D. they both incorporated a code of corporate practices that looked beyond corporations

D

Which of the following is true of the "comply or explain" approach to corporate governance?

A. It set stiff financial penalties for companies that refused to abide by the operational standards.

B. It gave companies the flexibility to comply with the governance standards or justify why they didn't in their corporate documents.

C. It was extremely explicit when it came to defining what would be acceptable explanations for noncompliance.

D. It proved to be an effective deterrent to financial scandals and reduced the incidence of unethical behavior in corporations.

B

The "comply or explain" approach to corporate governance was problematic because _____.

A. it did not take into consideration the remuneration packages provided to the employees of a company

B. its stringent measures to deny flexibility to comply with governance standards caused organization-wide friction

C. its definition of what constitutes an acceptable explanation for not complying was vague

D. it expected corporations to abide by an extremely rigid set of operating standards

C

The _____ of 2002 incorporates the "comply or else" approach to corporate governance.

A. Sarbanes-Oxley Act

B. Comstock Act

C. Multi-divisional Form Act

D. Trade Act

A

Which of the following is true of the "comply or else" approach to corporate governance?

A. It set stiff financial penalties for companies that refused to abide by the operational standards.

B. It gave companies the flexibility to comply with the standards or explain why they didn't in their corporate documents.

C. Its definition of what would be an acceptable explanation for not complying was not clear.

D. It was not incorporated into the Sarbanes-Oxley Act of 2002—which governs ethical behavior in corporations.

A

In what way did the "comply or else" approach differ from the "comply or explain" approach to corporate governance?

A. Unlike "comply or else," the "comply or explain" approach penalized companies that don't conform to regulations heavily.

B. Unlike "comply or explain," the "comply or else" approach did not offer corporations an easy way to avoid conforming to the operating standards.

C. Unlike "comply or explain," the "comply or else" approach had a vague definition for what constitutes an acceptable explanation for noncompliance.

D. Unlike "comply or else," the "comply or explain" approach was successful in discouraging unethical behavior in corporations.

B

Merging the roles of the chief executive officer and the chairperson of the board of an organization is advantageous because _____.

A. the power of the stockholders and the independence of the board are increased

B. the power vested in external public shareholders is decreased

C. the checks that the board set in place against unethical behavior become more effective

D. the board is led by someone familiar with the inner workings of the organization

D

Which of the following is an effect of merging the roles of the chief executive officer and the chairperson of the board?

A. The power of the stockholders is maximized.

B. The oversight provided by the board is increased.

C. The independence of the board is compromised.

D. The influence of the CEO is minimized.

C

The merging of the roles of the chief executive officer and the chairperson of a board is inadvisable because _____.

A. the independence of the board is maximized

B. the financial goals of a company takes utmost importance

C. the power of the chief executive officer decreases

D. the power of the stockholders is minimized

D

Which of the following is true of the CRAFTED principles of governance?

A. It recommends creating a culture of consistency, accountability, and responsibility.

B. It considers only the financial profitability of all operational actions.

C. It favors a tight information flow managed by a company's senior executive leaders.

D. It approves of selecting members of a board by trading professional favors.

A

Which of the following actions is a step toward running a company successfully?

A. Merging the roles of the chief executive officer and the chairperson of the board

B. Liberating the chief executive officer from constraints laid by the board members

C. Evaluating risk-versus-reward scenarios frequently, regardless of the company's size

D. Reducing the board's independence and decreasing the power of stockholders

C

Which of the following principles should a company follow for effective corporate governance?

A. The appointments to the board of directors should always be done on the basis of quid pro quo agreements.

B. The board of directors and the CEO should work together when evaluating risk-versus-reward scenarios.

C. The board of directors should consist solely of members who have direct connections to the company.

D. The roles of the chairperson of the board and that of the chief executive officer should be merged.

B

Walter Salmon's checklist to assess the quality of the board recommends:

A. following an exclusive rather than an inclusive approach.

B. the consideration of a single bottom line of profitability.

C. that the roles of employees in senior positions must be increased.

D. that there be three or more outside directors for every insider.

D

Which of the following is true of ethical misconduct?

A. It can occur even if all the checks governing a board of directors is in place.

B. It cannot be influenced by the personalities of individual board members.

C. It is least likely to occur when a CEO has more authority than board members.

D. It is barred effectively by the "comply or explain" approach to corporate governance.

A

The fiduciary responsibility of a manager is ultimately based on his or her _____.

A. educational background

B. work experience

C. charisma

D. trust

D

Which of the following is true of managers in an organization with good corporate governance?

A. They must be nominated by the compensation committee.

B. They should fulfill a fiduciary responsibility to the owners.

C. They must consider only the single bottom line of profitability.

D. They should follow an exclusive, rather than an internal, approach.

B

A commitment to good corporate governance:

A. necessitates decreasing the independence of a board.

B. often affects a company's public image adversely.

C. means adopting the "comply or explain" approach.

D. makes a company more attractive to investors.

D

Which of the following checks, when in place, reduces the risk of fraud or unethical behavior in a corporation?

A. The participants of the governance process must be made accountable effectively.

B. The roles of the chief executive officer and the chairperson of the board must be merged.

C. The authority of the chief executive officer should be absolute and unchallenged.

D. The company should follow the "comply or explain" approach to governance.

A

_____ is about the way in which boards oversee the running of a company by its managers and how board members are, in turn, accountable to shareholders and the company.

A. Management consulting

B. Corporate governance

C. Corporate transparency

D. Management education

B

The _____ of an organization is staffed by members of the board of directors plus independent or outside directors.

A. editorial committee

B. human resources team

C. accounting team

D. audit committee

D

The Cadbury report, established to address financial aspects of corporate governance, argued for a guideline of _____, which gave companies the flexibility to act in accordance with governance standards or clarify why they do not in their corporate documents.

A. basic limiting principle

B. comply or else

C. comply or explain

D. maximum power principle

C

The first step in a policy of disregarding the corporate governance model is the decision to:

A. merge the roles of chief executive officer (CEO) and chairperson of the board into one individual.

B. nominate a compensation committee by the board of directors of an organization.

C. reach out to consultants to find new solutions on maximizing the effectiveness of corporate governance.

D. elect an auditing committee to oversee the financial reporting processes of an organization by the chief executive officer (CEO).

A

If the board of an organization is to serve its purpose in setting the operational tone for the organization, it should be composed of members who:

A. represent professional conduct in their own organizations.

B. are opposed to the practice of utilitarianism.

C. support a decentralized model of corporate management.

D. are more likely to take risks in high-risk situations.

A

Which of the following key U.S. legislations is an attempt to discourage, if not prevent, illegal conduct within organizations?

A. The U.S. Federal Sentencing Guidelines for Organizations

B. The U.S. Federal International Customary Law

C. The U.S. Federal Procurement Regulations System

D. The U.S. Federal Standards for Commercial Services

A

Which of the following did the government formulate to penalize corporate wrongdoing?

A. The Glass-Steagall Act

B. The Sarbanes-Oxley Act

C. The Gramm-Leach-Bliley Act

D. The Taft-Harley Act

B

Which of the following is a legislation that was introduced to control bribery and other less obvious forms of payment to overseas officials and politicians by American publicly traded companies?

A. The Foreign Assistance Act

B. The Fair Credit Reporting Act

C. The Fair Business Standards Act

D. The Foreign Corrupt Practices Act

D

Which of the following legislations could fine companies for failing to disclose bribes and other forms of payments to foreign officials before the Foreign Corrupt Practices Act was introduced?

A. The Securities and Exchange Commission

B. The Dodd-Frank Wall Street Reform and Consumer Protection Act

C. The U.S. Federal Sentencing Guidelines for Organizations

D. The Ethics Resource Center

A

Which of the following legislations required full disclosure of funds that were taken out of or brought into the United States before the Foreign Corrupt Practices Act was introduced?

A. The Trade Commission Act

B. The Consumer Protection Act

C. The Bank Secrecy Act

D. The Government Corporate Control Act

C

Which of the following statements is true of the Foreign Corrupt Practices Act?

A. It is jointly enforced by the Federal Bureau of Investigation and the Ministry of Internal Affairs.

B. It encompasses all the measures that were previously used to control unethical overseas transactions by U.S. corporations.

C. It replaced the Dodd-Frank Wall Street Reform and Consumer Protection Act.

D. It ignores stipulations laid down by the Bank Secrecy Act and the Mail Fraud Act.

B

Sebastian and Amy are arguing over secondary legislations that were in place prior to the passing of the Foreign Corrupt Practices Act (FCPA). Amy is of the opinion that the FCPA encompasses all secondary measures that were in use to prohibit corrupt practices. Sebastian disagrees with Amy on this point. Which of the following, if true, would strengthen Amy's argument?

A. The FCPA requires only partial disclosure of funds that were taken out of or brought into the United States.

B. The FCPA does not specify that using wire communications to transact fraudulent schemes is illegal.

C. The FCPA requires corporations to fully disclose all transactions conducted with foreign officials in line with the SEC provisions.

D. The FCPA does not fine companies for failing to disclose payments made to foreign officials under its securities rules.

C

Which of the following government agencies jointly enforce the Foreign Corrupt Practices Act?

A. The U.S. Department of Justice (DOJ) and the Securities and Exchange Commission (SEC)

B. The U.S. Congress Office of Compliance and the Federal Judicial Center

C. The U.S. National Economic Council (NEC) and the Government Accountability Office (GAO)

D. The U.S. Department of Commerce and the Office of Financial Research

A

Why was the Foreign Corrupt Practices Act criticized?

A. The act does not require full disclosure of funds that were taken out of or brought into the United States.

B. The act does not address the illegality of using the U.S. mail or wire communications to transact a fraudulent scheme.

C. The act requires corporations to fully disclose all transactions conducted with foreign officials in line with the SEC provisions.

D. The act formally recognizes the facilitation payments, which would otherwise be acknowledged as bribes.

D

Under the Foreign Corrupt Practices Act, payments that are acceptable (legal) provided they expedite or secure the performance of a routine governmental action are called _____.

A. facilitation payments

B. accentuation payments

C. alternative payments

D. implicit payments

A

Brendon Inc. required a permit to open its business in a foreign country. Although it had met all the requirements for the permit, the officials delayed providing Brendon Inc. with the permit. To expedite the process, the company made a payment to a high-ranking official who has the authority to grant the permit. Which of the following types of payment does this scenario exemplify?

A. Accentuation payment

B. Facilitation payment

C. Explicit payment

D. Implicit payment

B

Which of the following is true of facilitation payments under the Foreign Corrupt Practices Act (FCPA)?

A. The FCPA recognizes them as bribes or an illegal form of payment.

B. The FCPA permits them if they secure exclusive contracts from foreign officials.

C. The FCPA finds them acceptable if they expedite a routine governmental action.

D. The FCPA finds them acceptable if they involve securing new businesses overseas.

C

Which of the following is a routine governmental action?

A. Allocating funds for companies to make facilitation payments overseas

B. Providing legal immunity for the employees of foreign companies

C. Providing police protection for the transit of goods across a country

D. Accepting payment from a foreign company in return for an exclusive contract

C

Which of the following is true of the penalties under the Foreign Corrupt Practices Act?

A. The Department of Justice can enforce criminal penalties of up to $20 million per violation for corporations and other business entities.

B. The Securities and Exchange Commission can impose a civil fine of up to $2,000 per violation upon corporations and other business entities.

C. Penalties under the books and record-keeping provisions can reach up to $25 million and 5 years' imprisonment for individuals and up to $50 million for organizations.

D. Officers, directors, stockholders, employees, and agents are subject to a fine of up to $250,000 per violation and imprisonment for up to five years.

D

Under the Foreign Corrupt Practices Act, payments made with the knowledge that any portion of the payment is to be passed along to a foreign official for a prohibited purpose under the Foreign Corrupt Practices Act are known as _____.

A. grease payments

B. facilitation payments

C. bribes

D. costs

C

Under the Foreign Corrupt Practices Act, payments to foreign officials in order to expedite or secure the performance of a routine governmental action are known as _____.

A. grease payments

B. induced payments

C. implicit payments

D. accentuating payments

A

Which of the following is a difference between grease payments and bribes under the Foreign Corrupt Practices Act?

A. Unlike grease payments, bribes induce foreign officials to act in violation of their lawful duty.

B. Unlike grease payments, bribes include donations to bona fide charitable organizations.

C. Unlike grease payments, bribes are meant to secure a routine governmental action.

D. Unlike grease payments, bribes are used to facilitate processes approved of by law.

A

58. Which of the following statements is true of the Federal Sentencing Guidelines for Organizations?

A. It holds organizations liable only for fraudulent activities in foreign markets.

B. It holds businesses liable for the criminal acts of their employees and agents.

C. It decreases the costs of unethical behavior.

D. It covers very few business crimes.

B

Which of the following is true of the penalties under the Federal Sentencing Guidelines for Organizations (FSGO)?

A. They do not include monetary fines.

B. They include organizational probation.

C. They are not levied on small businesses.

D. They are levied only on foreign corporations.

B

Which of the following statements is true of the culpability score?

A. It can be increased or decreased according to predetermined factors.

B. It is calculated before the base fine of an organization is determined by the Federal Sentencing Guidelines for Organizations.

C. It plays no role in calculating monetary fines under the Federal Sentencing Guidelines for Organizations.

D. It is a multiplier of the base fine of an organization with a maximum of 2.

A

The formula used to calculate the total fine sentenced by the Federal Sentencing Guidelines for Organizations (FSGO) is:

A. the base fine multiplied by the culpability score.

B. the base fine plus the culpability score.

C. the base fine minus the culpability score.

D. the base fine divided by the culpability score.

A

The maximum penalty that a judge can impose upon an organization for violating the Federal Sentencing Guidelines for Organizations is a penalty worth:

A. a tenth of the organization's assets.

B. a quarter of the organization's assets.

C. half of the organization's assets.

D. the full amount of the organization's assets.

D

The _____ is a fine that is set high enough by the Federal Sentencing Guidelines for Organizations to match all the assets of an organization and effectively puts the organization out of business.

A. prohibition payment

B. death penalty

C. facilitation payment

D. relative penalty

B

Under the Federal Sentencing Guidelines for Organizations, the death penalty:

A. can only be conferred upon multinational corporations and not on smaller businesses.

B. allows the state to appropriate half of the total assets of an organization.

C. is warranted where the organization was operating primarily for a criminal purpose.

D. cannot be levied upon organizations if it means putting them out of business.

C

Which of the following requirements is included in the status of organizational probation under the Federal Sentencing Guidelines for Organizations (FSGO)?

A. Reporting a business's financial condition to the court on a periodic basis

B. Reporting confidential details of all employees to the court on a periodic basis

C. Reporting progress to the FSGO in expediting or securing the performance of routine governmental favors

D. Reporting progress to the FSGO in making monetary contributions to the U.S. political parties

A

Which of the following is true of the effective compliance program prescribed by the Federal Sentencing Guidelines for Organizations?

A. A high-level official (such as a corporate ethics officer) must be in charge of and accountable for the compliance program.

B. Individuals should be granted excessive discretionary authority, as that would reduce the risk of criminal conduct.

C. Criminal offenses must generate an appropriate response, analysis, and corrective action, but not on the basis of suspicion.

D. An organization must be strict to address criminal misconduct in a consistent manner but should avoid penalizing employees for it.

A

The _____ is a legislative response to the corporate accounting scandals of the early 2000s that cover the financial management of businesses.

A. Sarbanes-Oxley Act

B. Glass-Steagall Act

C. Bland-Allison Act

D. Taft-Harley Act

A

The creation of the _____ was an attempt to reestablish the perceived independence of auditing companies after the corporate accounting scandals of the early 2000s.

A. Securities and Exchange Commission

B. Consumer Financial Protection Bureau

C. Federal Labor Relations Authority

D. Public Company Accounting Oversight Board

D

Which of the following statements is true of Title II of the Sarbanes-Oxley Act?

A. It allows public accounting firms to audit a company whose CEO was employed by that accounting firm within the past 12 months.

B. It encompasses the Public Company Accounting Oversight Board and allows publicly traded companies to be audited independently.

C. It requires senior auditors to rotate off an account every five years and junior auditors every seven years.

D. It permits auditors to keep written communications between management and themselves private.

C

Which of the following is true of the Sarbanes-Oxley Act (SOX)?

A. It helped disband the Public Company Accounting Oversight Board.

B. It protects employees of companies who provide evidence of fraud.

C. It prohibits a CEO from signing the company's federal income tax return.

D. It considers whistle-blowing a white collar crime.

B

Title VIII of the Sarbanes-Oxley Act addresses issues related to _____.

A. enhanced financial disclosures

B. commission resources and authority

C. the estimation of auditing fees

D. corporate and criminal fraud accountability

D

Title IX of the Sarbanes-Oxley Act focuses on:

A. corporate social responsibility.

B. enhanced financial disclosures.

C. white-collar crime penalty enhancements.

D. corporate fraud and accountability.

C

In September and October 2008, financial markets around the world suffered a severe crash as:

A. there was aggressive lending to subprime borrowers in a deregulated environment.

B. the Public Company Accounting Oversight Board (PCAOB) was disbanded, allowing auditors to work unregulated.

C. the assets of American overseas companies were seized by the Federal Sentencing Guidelines for Organizations.

D. all publicly traded firms only used the services of auditors affiliated with the Public Company Accounting Oversight Board.

A

The _____ refers to the legislation that was promoted as the "fix" for the extreme mismanagement of risk in the financial sector that led to a global financial crisis in 2008-2010.

A. Glass-Steagall Act

B. Sarbanes-Oxley Act

C. Dodd-Frank Wall Street Reform and Consumer Protection Act

D. Gramm-Leach-Bliley Financial Services Moderation Act

C

The _____ is a government agency within the Federal Reserve that oversees financial products and services.

A. Consumer Financial Protection Bureau

B. Ministry of Internal Affairs

C. Department of Commerce

D. Public Company Accounting Oversight Board

A

Which of the following responsibilities was granted to the Consumer Financial Protection Bureau (CFPB)?

A. Authority to act if a bank with more than $50 billion in assets poses a threat to the financial stability of the United States

B. Authority to limit the ability of banks to trade on their own accounts

C. Authority to examine and enforce regulations for banks and credit unions with assets over $10 billion

D. Authority to conduct studies regarding consolidation of accounting firms

C

The _____ is a government agency established to prevent banks from failing and otherwise threatening the stability of the U.S. economy.

A. U.S. Congress Office of Compliance

B. Financial Stability Oversight Council

C. Consumer Financial Protection Bureau

D. Office of Financial Research

B

The _____ states that there should be a key restriction in the legislation to limit the ability of banks to trade on their own accounts (termed proprietary trading).

A. Sarbanes-Oxley Act

B. Volcker rule

C. Campbell's rule

D. Bland-Allison Act

B

The illegal and unethical practice of providing old (or early) investors above-average returns on their investment with funds raised from new (or late) investors in the absence of any real business operation to generate profits is referred to as the _____.

A. Ponzi scheme

B. Jamaican switch

C. Pigeon drop

D. Tobashi scheme

A

An employee who discovers corporate misconduct and chooses to bring it to the attention of others is referred to as a(n) _____.

A. whistle-blower

B. history-sheeter

C. agent provocateur

D. criminal informant

A

_____ whistle-blowing involves an employee bringing corporate misconduct to the attention of his or her manager or supervisor, who then follows established procedures to address the misconduct within the organization.

A. External

B. Internal

C. Involuntary

D. Assertive

B

The two types of whistle-blowing, internal and external, are categorized based on:

A. whom the whistle-blower chooses to inform.

B. the motivation of the whistle-blower.

C. the type of organizational misconduct.

D. the nationality of the whistle-blower.

A

In internal whistle-blowing, an employee who discovers corporate misconduct brings it to the attention of:

A. his or her relatives.

B. the media.

C. the government.

D. his or her manager or supervisor.

D

In _____ whistle-blowing, an employee who discovers corporate misconduct brings it to the attention of law enforcement agencies and/or the media.

A. external

B. internal

C. incurred

D. exact

A

In external whistle-blowing, an employee who discovers corporate misconduct brings it to the attention of:

A. the chief executive officer of his or her organization.

B. his or her supervisor.

C. the law enforcement agencies.

D. his or her human resource manager.

C

Alan, an employee at Urania Corp., finds a major discrepancy in the company's inventory list. Upon further investigation, he discovers that his department head has been tampering with the inventory data for personal profits. He immediately reports it to a higher authority within the organization with proof. In this scenario, Alan plays the role of an _____ whistle-blower.

A. explicit

B. internal

C. assertive

D. implicit

B

Sandra, an executive officer of a company, has collected reports which prove that the CEO has been misappropriating company and investor funds. She takes the matter public and issues a statement against the CEO. Sandra is an _____ whistle-blower.

A. indexed

B. expiate

C. internal

D. external

D

Which of the following employees is an external whistle-blower?

A. Laura, who files a complaint against one of her company's suppliers for not meeting a project requirement within the specified time

B. Evelyn, who reports to a senior manager that her supervisor deliberately stocks expired food products on the shelves of the super market

C. Benjamin, who alleges to the federal government that the company he works for is fixing prices with its competitors

D. Ray, who discovers and ignores the fact that his company's main competitor is engaging something unethical

C

Which of the following statements is true of whistle-blowers?

A. They are universally lauded for their decision to speak out.

B. They are individuals who typically have low levels of integrity.

C. They seldom harm anybody with their decision to speak out.

D. They are often criticized and considered troublemakers.

D

Which of the following is true of corporate whistle-blowing?

A. Corporate whistle-blowing is heavily discouraged by the Sarbanes-Oxley Act of 2002.

B. Corporate whistle-blowers are no longer protected by law from retaliatory behavior.

C. Corporate whistle-blowing has considerable potential for financial gain in some areas.

D. Corporate whistle-blowers are no longer protected by the Whistleblower Protection Act.

C

The original reason for the enactment of the Civil False Claims Act was to:

A. protect the government from fraudulent defense contractors.

B. prevent corporate retaliation against federal whistle-blowers.

C. impose specific performance deadlines in processing whistle-blower complaints.

D. prevent whistle-blowers from filing cases against multinational corporations.

A

Whistle-blowers who expose fraudulent behavior against the government are entitled to between 10 and 30 percent of the amount recovered under the federal _____.

A. Civil False Claims Act

B. Fair Employment Practice Act

C. Enforcement Act

D. Civil Liberties Act

A

The False Claims Act was strengthened in 1986 to:

A. deter whistle-blowers from speaking up by penalizing them.

B. protect nonfederal employees from corporate retaliation.

C. reject evidence provided by nonfederal whistle-blowers.

D. make it easier and safer for whistle-blowers to come forward.

D

A qui tam lawsuit is a lawsuit brought on behalf of the federal government by a whistle-blower under the _____ of 1863.

A. Foreign Corrupt Practices Act

B. Civil False Claims Act

C. Civil Liberties Act

D. Fair Employment Practice Act

B

A _____ is a lawsuit brought on behalf of the federal government by a whistle-blower under the False Claims Act of 1863.

A. quo warranto lawsuit

B. qui tam lawsuit

C. pro tanto lawsuit

D. per curiam lawsuit

B

Which of the following statements is true of qui tam lawsuits?

A. They imprison or penalize federal whistle-blowers under the False Claims Act of 1863.

B. They are lawsuits filed against whistle-blowers who are motivated by financial rewards.

C. They do not accept the testimonies of whistle-blowers who are motivated by revenge.

D. They establish whistle-blowers as deputized petitioners for the government in a case.

D

Which of the following is a difference between internal and external whistle-blowing?

A. Unlike external whistle-blowing, the examples of internal whistle-blowing receive no media attention.

B. Unlike internal whistle-blowing, the history of external whistle-blowing is impossible to track.

C. Unlike external whistle-blowing, internal whistle-blowing does not harm a company's public image.

D. Unlike internal whistle-blowing, incidents of external whistle-blowing are rarely documented.

A

It is difficult to track the history of internal whistle-blowing because:

A. it rarely receives attention from the media.

B. it is illegal under the Sarbanes-Oxley Act.

C. corporate whistle-blowing is usually ignored.

D. corporate wrongdoing is a rare phenomenon.

A

60. Prior to 2002, legal protection for whistle-blowers existed only through legislation that:

A. safeguarded federal employees from retaliatory behavior aimed at them.

B. encouraged the moral behavior of employees who felt compelled to speak out.

C. safeguarded only nonfederal employees from corporate retaliatory behavior.

D. encouraged whistle-blowers to act without any monetary rewards.

B

Which of the following statements is true of the federal Civil False Claims Act?

A. It rejected cases brought by whistle-blowers who were motivated by monetary gain.

B. It penalized whistle-blowers heavily if they had no evidence to support their claims.

C. It did not reward whistle-blowers if their cases implicated the government in any way.

D. It did not offer whistle-blowers protection from retaliatory behavior aimed at them.

D

Which of the following statements is true of the False Claims Act of 1863?

A. It guaranteed the anonymity of nonfederal whistle-blowers.

B. It was designed to prevent profiteering from the Civil War.

C. It addressed the issue of retaliation against federal employees.

D. It imposed deadlines in processing whistle-blower complaints.

B

The _____ first addressed the issue of retaliation against federal employees who bring accusations of unethical behavior.

A. Sarbanes-Oxley Act of 2002

B. Whistleblower Protection Act of 1989

C. False Claims Act of 1863

D. Rehabilitation Act of 1973

B

The _____ of 1989 guaranteed the anonymity of federal employees, but not that of other employees.

A. Sarbanes-Oxley Act

B. Whistleblower Protection Act

C. Fair Employment Practice Act

D. Civil Liberties Act

B

The Whistleblower Protection Act of 1989 guaranteed the anonymity of the whistle-blower unless:

A. the individual is a federal employee.

B. revealing the name would protect public safety.

C. the individual is an immigrant.

D. revealing the name would attract huge media attention.

B

Which of the following is true of the Whistleblower Protection Act of 1989?

A. It imposed specific performance deadlines in processing whistle-blower complaints.

B. It made it mandatory to disclose the name of the whistle-blower in all circumstances.

C. It failed to safeguard federal employees from retaliatory behavior aimed at them.

D. It only safeguarded nonfederal employees from retaliatory behavior against them.

A

The Sarbanes-Oxley Act of 2002 is also known as:

A. the Employee Protection and Care Act.

B. the Comprehensive Crime Control Act.

C. the Dodd-Frank Wall Street Reform and Protection Act.

D. the Corporate and Criminal Fraud Accountability Act.

D

Which of the following statements is true of the Sarbanes-Oxley Act?

A. It prohibits retaliation against whistleblowers and encourages the act of whistle-blowing itself.

B. It discouraged the act of corporate whistle-blowing.

C. It does not protect employees from retaliatory behavior aimed at them.

D. It does not offer protection to federal employees for the act of whistle-blowing.

A

The _____ introduced a reward program for whistle-blowers who report securities law violations to the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC).

A. Employee Protection and Care Act

B. Comprehensive Crime Control Act

C. Dodd-Frank Wall Street Reform and Protection Act

D. Corporate and Criminal Fraud Accountability Act

C

The Dodd-Frank Wall Street Reform and Protection Act stipulated that if more than $1 million is collected, the whistle-blower is entitled to _____ of the monies collected.

A. between 10 and 30 percent

B. a minimum of 50 percent

C. a minimum of 75 percent

D. between 50 and 75 percent

A

Ken reported misconduct in his organization to the Securities and Exchange Commission. He was able to provide substantial evidence and won the case. The amount recovered was over $1 billion. Which of the following laws states that Ken is eligible to receive between 10 and 30 percent of the amount recovered?

A. The Corporate and Criminal Fraud Accountability Act

B. The Fair Employment Practice Act

C. The Corporate and Civil False Claims Act

D. The Dodd-Frank Wall Street Reform and Consumer Protection Act

D

The "Office of the Whistleblower" was created by the _____.

A. Merit Systems Protection Commission

B. Commodity Futures Trading Commission

C. Securities and Exchange Commission

D. Consumer Product Safety Commission

C

A(n) _____ is a telephone line where employees can leave messages to alert a company of suspected corporate misconduct without revealing their identity.

A. whistle-blower hotline

B. criminal informant hotline

C. employee assistance helpline

D. internal corporate helpline

A

Which of the following is true of a whistle-blower hotline?

A. It is a secure telephone line through which a whistle-blower can communicate with federal employees.

B. It is a government-owned service that addresses the concerns a potential whistle-blower might have.

C. It is a telephone line linked to various law enforcement agencies used by external whistle-blowers.

D. It is a telephone line that employees use to anonymously alert a company of suspected misconduct.

D

Which of the following is a major risk faced by whistle-blowers by speaking out about an organization's misconduct?

A. They risk losing their career and financial stability.

B. They risk being ignored by both the company and media.

C. They risk being penalized under the Whistleblower Prevention Act.

D. They risk imprisonment under the False Claims Act.

A

Which of the following statements is true of the advances in workplace technology over the last two decades?

A. Companies cannot send personal data of their customers to any part of the world to take advantage of lower labor costs.

B. Companies are now able to make vast amounts of information available to employees and customers.

C. Companies are facing the issue of maintaining a flexible work environment.

D. Companies cannot monitor their employees to identify the rate of productivity.

B

The term _____ refers to a company's internal website that contains information for employee access only.

A. intranet

B. extranet

C. castanet

D. informanet

A

Emily, a website designer, is hired by an organization to create an internal website that contains information meant to be accessed solely by employees. This website is the company's _____.

A. orgonet

B. intranet

C. castanet

D. extranet

B

The term _____ refers to a private piece of a company's Internet network that is made available to customers and/or vendor partners on the basis of secured access by unique password.

A. extranet

B. intranet

C. fibernet

D. castanet

A

Jordan, a software engineer, is responsible for maintaining the private piece of his company's internet network that is accessible to clients by means of a unique password. This piece of the company's network is known as the _____.

A. intranet

B. cybernet

C. extranet

D. clientnet

C

Companies can make vast amounts of information available to customers through their _____ sites.

A. extranet

B. intranet

C. cybernet

D. fibernet

A

Which of the following is a disadvantage of technological advances in a workplace?

A. Loss of privacy

B. Limited employee mobility

C. Reduced employee accessibility

D. Limited access to customers

A

Information can be digitized and transmitted over fiber-optic cables because of the recent advances in technology. What implications does this have?

A. Customer services and tech support services are now bound by geographic borders.

B. Companies have fewer ways in which they can attend to the needs of their customers.

C. Customers' personal information can no longer be sent to or processed in other countries.

D. Companies can reduce their expenses by shipping work to countries with low labor costs.

D

The advances in technology have affected customers in a way that:

A. their personal data can no longer be sent to any part of the world.

B. they have round-the-clock access to customer services.

C. they no longer have access to after-hours tech support services.

D. their personal data cannot be digitized, thus protecting their privacy.

B

Information can be digitized and transmitted over fiber-optic cables because of the recent advances in technology. Which ethical obligation of this new capability is now being realized?

A. Should customers be charged more now that companies can offer them better customer servicing?

B. Should customers be charged less now that companies have ways in which they can reduce production costs?

C. Should customer service be relative to the amount of money customers spend on company products?

D. Should customers be informed that their personal information is being sent to other countries?

D

Resolving the different perspectives on the issue of monitoring employee activity is difficult because:

A. federal laws for video surveillance in public areas do not exist.

B. technological advances have no impact on the workplace.

C. it is legal for employers to wiretap employees' personal phones.

D. it is difficult to determine where work ends and personal life begins.

D

The argument over privacy at work has traditionally centered on:

A. the designations held by different employees.

B. the amount of time that employees were on-site.

C. whether the organization was vertically structured.

D. whether the organization was horizontally structured.

B

_____ refers to a new capability that allows employees to work from home and log into to their company's network remotely.

A. Telecommuting

B. Wiretapping

C. Hyper-networking

D. Cybersquatting

A

Which of the following statements is true of the effects of telecommuting?

A. The concern over loss of privacy has been resolved.

B. The concept of being at work has become more flexible.

C. The promise of increased productivity has become blurred.

D. The ability to monitor every employee has reduced.

B

_____ has made it difficult for organizations to precisely measure the amount of time that employees are on-site.

A. Keystroke loggers

B. Smart ID cards

C. Telecommuting

D. Packet-sniffing software

C

Which of the following statements is true of telecommuting?

A. It allows employees a certain degree of flexibility in terms of their work hours.

B. It allows employees no flexibility in terms of the locations from which they work.

C. It makes it easier for employers to measure the amount of time employees are on-site.

D. It makes it easier for employers to monitor the Internet activity of their employees.

A

Which of the following is true of the changes that telecommuting has introduced into the work environment?

A. Employers find it easy to tabulate the time employees spend working.

B. Employees are unable to take care of personal needs during work hours.

C. The availability of employees is being defined by their accessibility.

D. The distinction between personal life and work life is clearly perceived.

C

Telecommuting has changed the work environment in a way that:

A. employers find it easy to keep track of the number of hours employees put into a project off-site.

B. employees cannot be contacted by employers after a company's work hours.

C. employers cannot request employees to work after a company's work hours.

D. employees have begun to expect a level of flexibility in taking care of their personal needs during work hours.

D

_____ will create a distinction between thin consent and thick consent according to Adam Moore.

A. The state of the job market

B. The capability of telecommuting

C. The promise of increased productivity

D. The implications of vicarious liability

A

Michelle receives a formal notification from her company stating that it will be monitoring all her e-mail and web activity. The notification also indicates that her continued employment with the company will depend on her agreement to abide by its monitoring policy. Because jobs are hard to come by, Michelle accepts. The consent given by Michelle can be classified as _____ consent.

A. thick

B. implied

C. thin

D. inferred

C

Which of the following statements is true of thin consent according to Adam Moore?

A. It is given when an employee has no other choice.

B. It is not dependent upon the state of the job market.

C. It is consent given on behalf of somebody else.

D. It is a form of consent that is not legally binding.

A

Andrew is informed by his company that he should be open to monitoring as a part of the company's plans to improve productivity. Because of his qualifications and work experience, he knows that he would have no difficulty finding a similar position in another company. Andrew agrees to the policy, knowing that he can switch jobs if the new policy affects his job satisfaction. He has given his company _____ consent.

A. thick

B. implied

C. thin

D. inferred

A

63. Which of the following statements is true of thick consent?

A. It is given when employees have little or no choice.

B. It is not affected by the state of the job market.

C. It signals that the consent of employees was forced.

D. It is given when employees have realistic job alternatives.

D

_____ is a legal concept that means a party may be held responsible for injury or damage even when he or she was not actively involved in an incident.

A. Strict liability

B. Vicarious liability

C. Absolute liability

D. Regulatory liability

B

Which of the following statements is true of parties charged with vicarious liability?

A. They are held responsible for the actions of their subordinates.

B. They are seldom in supervisory or managerial roles.

C. They only comprise the individuals directly responsible for the damage.

D. They only comprise individuals who were the recipients of the damage.

A

The legal concept of _____ holds employers liable for the actions of their employees through Internet communications to the same degree as if they had written those communications on company letterhead.

A. cyberliability

B. cybersecurity

C. hyper-networking

D. virtual-mirroring

A

The concept of cyberliability:

A. does not include harassment that reaches employees via e-mail.

B. applies the legal concept of liability to the world of computers.

C. is only enforceable in unregistered commercial Internet cafés.

D. does not cover categories like obscenity and pornography.

B

Which of the following is true of cyberliability?

A. It extends to any form of harassment that reaches an employee via e-mail.

B. It has no negative repercussions for the employer or the company involved.

C. It only applies to crimes that involve the patrons of commercial Internet cafés.

D. It does not cover categories like racial discrimination, defamation, and libel.

A

Which of the following explains why employers are in favor of monitoring and restricting the actions of their employees?

A. The implications of vicarious liability for employers

B. The federal restrictions placed upon wiretapping

C. The reluctance of employees to give thick consent

D. The federal restrictions placed on cybersquatting

A

What is the reason for the increased monitoring of employees at work by organizations?

A. The evidence gathered from the electronic trail of e-mails from employees can cause potential damage to an organization.

B. The concept of being at work has become far more rigid in the new environment.

C. Organizations have been given the right to monitor every movement of their employees by the federal government.

D. Employers have proved beyond doubt that constant employee surveillance leads to increased worker productivity.

A

Which of the following actions does the Computer Ethics Institute consider unethical?

A. Logging into one's company's intranet and extranet

B. Enabling cookies on one's own computer

C. Clearing the cache of one's own computer

D. Copying proprietary software without paying for it

D

Which of the following actions does the Computer Ethics Institute consider ethical?

A. Making one's password easily available to coworkers

B. Considering the social consequences of one's work

C. Using corporate software for private use

D. Using pirated software for commercial purposes

B

Which of the following is true of the technology used to monitor employees at the workplace?

A. Keystroke loggers can track employees' location while they move through the workplace.

B. Packet-sniffing software can intercept and archive all communications on a network.

C. Cybersquatting software can automatically monitor breaks between receiving calls.

D. "Smart" ID cards can be employed to capture every key pressed on a computer keyboard.

B

Which of the following statements is true of keystroke loggers?

A. They can record typed-in information even if it is deleted.

B. They can videotape employees in public areas.

C. They can analyze and archive calls made on personal phones.

D. They can track the movement of employees in the workplace.

A

Under federal law, video surveillance is legal only if:

A. the camera focuses on publicly accessible areas.

B. the camera is placed in employee rest areas.

C. the cameras aren't focused on customers.

D. the cameras aren't focused on employees.

A

Less-developed nations are countries which:

A. have poor economic, social, and technological infrastructure.

B. are characterized by social stability and high standards of living.

C. are immune to the effects of economic phenomenon like inflation.

D. have strong bureaucracies and are characterized by political stability.

A

_____ refers to ethical choices that consider the greatest good for the greatest number of people.

A. Utilitarianism

B. Centralism

C. Astigmatism

D. Autonomism

A

Which of the following statements is true of utilitarianism?

A. Its doctrine states that the ends do not justify the means under any circumstances.

B. Its use leads to situations in which there is no accountability for individual actions.

C. It is an ethical philosophy that considers pleasure as the ultimate motive for human actions.

D. It is a theory that considers all action taken in one's self-interest ethical.

B

Which of the following statements is true of globalization?

A. It makes countries and markets more independent of each other.

B. It leads to the replacement of regional trade blocs with national markets.

C. It impacts the commercial, economic, social, and political environment.

D. It offers multinational companies fewer ways to reduce their expenses.

C

How has globalization affected the economy?

A. Transnational markets have given way to national markets.

B. Regional trade blocs have been replaced by domestic markets.

C. National markets are becoming less dependent on each other.

D. National markets are being overtaken by regional trade blocs.

D

Globalization raises concerns about the:

A. restricted access multinational companies have to all less-developed countries.

B. ethical behavior of economically advanced nations toward developing ones.

C. inability of multinational companies to reduce their production costs.

D. lack of currency flow in foreign exchange markets.

B

Multinational companies are also known as _____.

A. transnational corporations

B. intranational trade blocs

C. regional trade blocs

D. transcontinental bureaus

A

_____ is a gray area in which a person's ethical principles are defined by the traditions of his or her society, personal opinions, and the circumstances of the present moment.

A. Methodological relativism

B. Ethical consequentialism

C. Ethical relativism

D. Motive consequentialism

C

Which of the following philosophical positions is adopted by multinational corporations when working in countries whose laws and regulations are less restrictive than the one in their own country?

A. Ethical relativism

B. Aesthetic relativism

C. Motive consequentialism

D. Ethical consequentialism

A

A multinational company working in a less-developed nation will face ethical relativism when:

A. the local customs of the less-developed nation come into conflict with the company's policies.

B. the less-developed nation is characterized by social stability and economic growth.

C. the local customs of the less-developed nation accommodate the company's code of ethics.

D. the less-developed nation possesses a bureaucracy that is related to a logical reality.

A

Which of the following is an advantage of globalization?

A. National markets have successfully taken over regional trade blocs on a global scale.

B. Children are no longer offered employment in "sweatshop" production facilities.

C. Multinational corporations are unable to exploit the people of less-developed countries.

D. Developing nations can leverage their natural resources to attract foreign investment.

D

Which of the following is a disadvantage of globalization?

A. The prices of consumer goods have increased as a result of higher production costs.

B. Multinational corporations no longer see developing countries as potential consumers.

C. Foreign investors focus on developed countries and not the less-developed countries.

D. Multinational corporations are depleting the natural resources of less-developed countries.

D

A fact about the effect of globalization is that multinational corporations:

A. often take advantage of the unrestrictive legal environments of less-developed countries.

B. have fewer ways in which they can reduce their production costs or increase their sales.

C. have limited access to the labor force or natural resources of less-developed countries.

D. often exploit the natural resources of developed countries without facing any consequences.

A

Which of the following statements is true of less-developed countries and multinational corporations in the context of globalization?

A. Multinational corporations tend not to see less-developed countries as potential consumer markets.

B. The labor power of less-developed countries does not attract the attention of multinational corporations.

C. The long-term economic viability of less-developed countries is threatened by the activities of multinational corporations.

D. Multinational corporations prefer not to invest their time and effort in less-developed countries.

C

55. An organization can move its ethical commitment to a global scale successfully by:

A. creating an ethical standard that respects the local customs of other countries.

B. increasing the scale of their policies and procedures to a higher degree than in other countries.

C. translating all their existing policies into the local language of the countries in which they will operate.

D. working in the absence of standard ethical policies wherever possible.

A

A general standard of business practice that can be applied equally to all countries over and above their local customs and social norms is called a _____.

A. contextual code of relativism

B. universal code of utilitarianism

C. global code of conduct

D. conceptual code of ethics

C

Which of the following statements is true of the guidelines offered by Richard DeGeorge for organizations doing business in other countries?

A. They represented an ethical ideal that, at best, provided a conceptual foundation.

B. They were lauded for covering all the severe types of business transgressions.

C. They only addressed multinational corporations working in developed countries.

D. They endorsed the principles of utilitarianism which states that the ends always justify the means.

A

Why were the guidelines offered by Richard DeGeorge for organizations doing business in other countries criticized?

A. They overlooked issues related to the quality of goods produced.

B. They did not advocate working with or respecting local customs of other countries.

C. They represented the utilitarianism belief that the ends justify the means in all circumstances.

D. They advocate doing the greatest good for the greatest number of people.

A

Which of the following statements is true of enforcing global ethics?

A. Nations of the world will experience no difficulty adhering to global standards for ethical performance.

B. Enforcing global ethics requires that all multinational companies follow the philosophy of utilitarianism.

C. Companies may be held accountable for ethical performance within their home countries.

D. Nations of the world will experience no difficulty governing their internal politics when implementing a global ethical standard.

C

Which of the following bodies has approached the issue of standardizing global ethical conduct by promoting behavior guidelines that multinational corporations can publicly support?

A. The Organization for Economic Cooperation and Development

B. The Government Accountability Office

C. The Bureau of Economic Analysis

D. The Organization for Economic Growth and Standardization

A

Which of the following is a characteristic of the UN Global Compact?

A. It is a standard of business practice that all countries are expected to follow, by law.

B. It is a set of mandatory rules by which multinational corporations are expected to operate.

C. It is a body of rules that deals exclusively with fair pricing and customer satisfaction.

D. It is a voluntary corporate initiative that promotes good corporate citizenship.

D

_____ is one of the four key areas of concern upon which the UN Global Compact focuses.

A. Corporate tax

B. Foreign exchange

C. Anticorruption

D. Over-population

C

Which of the following statements is true of the UN Global Compact?

A. It encourages actions that cause the greatest good for the greatest number of people.

B. It ignores the exploitation of less-developed countries by multinational corporations.

C. It comprises laws that are legally enforced by the United Nations.

D. It serves as a guideline for transparency and public accountability.

D

The UN Global Compact:

A. ignores issues of environmental concern.

B. is the largest initiative of its kind in the world.

C. applies only to organizations operating in developed nations.

D. is a regulatory instrument that polices organizations.

B

The UN Global Compact focuses on:

A. the welfare of workers around the world.

B. the profitability of small businesses.

C. the inheritance rights of women.

D. the fluctuation of currency standards.

A

The UN Global Compact states that businesses should:

A. support a precautionary approach to environmental challenges.

B. avoid involvement in the environmental concerns of other nations.

C. avoid selling their products to the people of less-developed nations.

D. support the employment of children in sweatshop production facilities.

A

The Organization for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises were initially a part of the _____.

A. Public Company Accounting Oversight Board

B. International Bureau of Economic Analysis

C. Dodd-Frank Wall Street Reform and Consumer Protection Act

D. Declaration on International Investments and Multinational Enterprises

D

Which of the following is a difference between the UN Global Compact and the Organization for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises?

A. Unlike the UN Global Compact, the OECD guidelines uses a more governmental approach for the issues featured in the UN's nongovernmental Global Compact.

B. Unlike the OECD guidelines, the UN Global Compact ignores most areas of environmental concern.

C. Unlike the UN Global Compact, the OECD guidelines carry criminal or civil enforcement and are regarded as legally binding.

D. Unlike the OECD guidelines, the UN Global Compact applies only to companies operating in their own country.

A

Which of the following is true of the Organization for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises?

A. They act in opposition to the UN Global Compact.

B. They apply solely to local and regional trade blocs.

C. They carry no criminal or civil enforcement.

D. They are legally binding for American companies.

C

The Organization for Economic Cooperation and Development (OECD) guidelines recommend:

A. actions that consider the greatest good for developed countries.

B. disclosure on all material matters regarding the corporation.

C. against investing money and effort in developed countries.

D. against investing money and effort in less-developed countries.

B

Which of the following principles and standards of behavior is advocated by both the Organization for Economic Cooperation and Development (OECD) and the UN Global Compact?

A. Businesses should observe only the customs of their own country at all times.

B. Businesses should not involve themselves in the environmental issues of other countries.

C. Businesses should utilize the natural resources of their host country to the fullest.

D. Businesses should abolish child labor, combat bribery, and fight corruption.

D

Which of the following is recommended by the Organization for Economic Cooperation and Development (OECD) Guidelines?

A. Companies should contribute to the innovative capacities of host countries.

B. Companies should encourage developing nations to adopt the principles of socialism.

C. Companies should uphold the effective recognition of the right to collective bargaining.

D. Companies should avoid involving themselves in the environmental issues of other countries.

A

The Organization for Economic Cooperation and Development (OECD) Guidelines believe that less-developed countries should:

A. not be considered a lucrative market.

B. allow their natural resources to be tapped into freely.

C. benefit from a corporation's advanced technology.

D. avoid trading with developed nations.

C

Which of the following is true of the concept of global ethics?

A. It is no longer relevant today.

B. It has little backing from the United Nations.

C. It is a highly complex subject.

D. It does not involve less-developed nations.

C

Fred, a manager in a multinational corporation, is a supporter of Milton Friedman's instrumental contract. Fred believes that corporations:

A. should actively work to protect the environment of the countries in which they operate.

B. must run welfare programs for the people of the countries in which they operate.

C. need to cease working in less-developed countries.

D. carry no moral obligation to the countries in which they operate.

D

_____ is ethical behavior that persists long after the latest public scandal or the latest management buzzword.

A. Universal ethics

B. Sustainable ethics

C. Virtue ethics

D. Applied ethics

B

A company's commitment to ethical behavior affects:

A. only the operational departments that deal with customers.

B. only the strategic departments that deal with the major clients.

C. every managerial level and every department of the organization equally and increases its efficiency.

D. the employees in an adverse manner, as they are always worried about the consequences of their actions.

C

Which of the following statements is true of sustainable ethics?

A. An organization requires commitment only from the top management in order to administer sustainable ethics.

B. The audience for the code of ethics includes selected stakeholders.

C. An organization's commitment to ethical behavior must be documented in a code of ethics for everyone to begin from the same starting point.

D. The audience for the code of ethics excludes investors, customers, and suppliers of the organization.

C

Which of the following is the first stage in making ethical behavior sustainable for a company?

A. Hiring an ethical officer

B. Establishing a code of ethics

C. Rewarding ethical behavior demonstrated by employees

D. Supporting the code of ethics with extensive training for every member of the organization

B

HP Chase Inc., an investment banking firm, has decided to make ethical behavior sustainable in its organization. It has set up the process of monitoring ethical behavior by establishing a code of ethics. Which of the following stages is HP Chase Inc. most likely to undertake next?

A. Reward ethical behavior demonstrated by the board of directors

B. Hire an ethics officer

C. Reward ethical behavior demonstrated by employees

D. Support the code of ethics with extensive training for every member of the organization

D

Altra Partners (AP) believes in maintaining sustainable ethics. It has recently established a code of ethics and organized comprehensive training sessions for all its members. Which of the following steps is most likely to be undertaken next by AP?

A. Hiring an ethics officer

B. Promoting ethical behavior among its stakeholders

C. Celebrating and rewarding the ethical behavior demonstrated by its employees

D. Monitoring the ethical behavior of its employees

A

Which of the following steps is the immediate next stage in making ethical behavior sustainable for a company after it hires an ethics officer?

A. Monitoring the ethical behavior of its employees continuously as the company grows

B. Producing and distributing a company code of conduct among its employees

C. Celebrating and rewarding the ethical behavior demonstrated by its employees

D. Supporting the code of ethics with extensive training for every member of the organization

C

Downerz Enterprises (DE) has been in the news for fraud by one its directors. As a result, the trustees of DE have appointed a new director who has established a strict code of ethics. He has announced extensive training for every member of the organization. An ethics officer has also been hired by DE. Which of the following steps is most likely to be taken next by the new director to maintain ethical behavior in the organization?

A. Publish the code of conduct and send it to all its stakeholders.

B. Promote DE's commitment to ethical behavior.

C. Celebrate and reward the ethical behavior demonstrated by its employees.

D. Support the code of ethics with extensive training for the senior managers of the organization.

C

Which of the following is most likely to be the next stage in making ethical behavior sustainable for an organization after it promotes its commitment to ethical behavior?

A. Continuously monitoring the ethical behavior of its employees as the company grows

B. Hiring an ethics officer

C. Celebrating and rewarding the ethical behavior demonstrated by its employees

D. Supporting the code of ethics with extensive training for every member of the organization

A

Walter Warburg & Co., a new investment banking firm, has dismissed the idea of establishing a code of ethics for its employees. Which of the following consequences is most likely to take place as a result of this decision?

A. It can now clearly state policies for behavior in specific situations.

B. It can capture distinctly what the organization understands ethical behavior to mean.

C. It will not be allowed to operate, as having a written code of ethics is mandatory in every organization.

D. It cannot document punishments for the violation of ethical policies.

D

A well-written code of ethics:

A. states policies for behavior in specific situations.

B. distinguishes between punishments for violations of ethics for different managerial levels.

C. establishes a detailed guide to acceptable behavior exclusively for external stakeholders.

D. documents rewards for selected top management employees on the fulfillment of ethical policies.

A

Which of the following elements is most likely be included by an organization in its code of ethics?

A. The key performance indicators to be used in appraisals

B. The policies for behavior in specific situations

C. The criteria for claiming fringe benefits

D. The policies related to the number of permissible leaves

B

The audience for the code of ethics of an organization should include the:

A. competitors of the organization who copy their code of ethics.

B. investors of the organization.

C. external agencies of the organization who assist in framing the code of ethics.

D. past employees of the organization.

B

Which of the following statements is true of the code of ethics of an organization?

A. The code of ethics is highly unlikely to be created from scratch.

B. The code of ethics is unlikely to include detailed accounts of punishments for violations of the code.

C. The code of ethics does not have a perfect model.

D. The audience for a code of ethics includes only the organization's customers.

C

Which of the following statements is most likely to be true of an organization's code of ethics?

A. There are a few perfect models for a code of ethics.

B. The audience for a code of ethics includes only the shareholders of an organization.

C. The code of ethics of an organization captures every possible event from each department.

D. The code of ethics is written for the employees of an organization, and the stakeholders are not required to follow it.

D

Which of the following statements is advice from the Institute of Business Ethics for creating a code of ethics from scratch?

A. Get an endorsement from the chairperson and the board.

B. Put the code on the organization's website rather than sending it to all stakeholders individually.

C. Use a framework that includes the customers, but not the competitors.

D. Pilot-test the code solely on lower-level, operational employees.

A

In the context of the creation of a code of ethics, the Institute of Business Ethics advises companies:

A. to hire young trainees to conduct research and formulate ethical policies.

B. to put the code on the organization's website, and not to send it to all employees, suppliers, and other stakeholders.

C. to introduce practical examples of the code in all company internal (and external) training programs and induction courses.

D. not to try out the code first, as no piloting is required.

C

Arthur and Nicole are arguing over the creation of a code of ethics for an organization. Arthur believes that it would be good for organizations to follow the advice from the Institute of Business Ethics before creating the code of ethics, while Nicole disagrees with him. Which of the following actions would an organization take if it agrees with Arthur?

A. The organization would develop its own model rather than picking a well-tested model.

B. The organization would put the code on its website rather than sending it to all employees, suppliers, and others.

C. The organization would conduct an extensive survey involving every employee rather than getting an endorsement from the board.

D. The organization would determine the topics on which employees require guidance.

D

Edmund has been recently appointed as executive in-charge of the code of conduct for Elmer Enterprises. He administers the code of conduct among the organization's employees and oversees the investigations of wrongdoings in the organization. He also provides additional guidance and support to the employees. Edmund is most likely to be the _____ of the organization.

A. chief operations officer

B. ethics officer

C. guidance officer

D. chief investigating officer

B

The _____ of an organization is the senior executive responsible for monitoring its moral standards both internally and externally.

A. ethics officer

B. assessing officer

C. chief knowledge officer

D. chief analytics officer

A

Derek oversees the investigation of wrongdoings in his organization and provides additional guidance and support to the employees. He also develops training programs for every department to maintain organizational conduct. Which of the following positions does Derek most likely hold in his company?

A. Chief knowledge officer

B. Assessing officer

C. Ethics officer

D. Chief analytics officer

C

Which of the following statements is true of ethics officers?

A. They must be hired from outside the organization.

B. Their chief responsibility is to compare the code of ethics of different companies.

C. Their role is never developed as a separate department in an organization.

D. They monitor the ethical performance of the organization both internally and externally.

D

According to the documentation of a survey conducted by the Ethics and Compliance Officers Association, which of the following responsibilities ranks highest among the chief responsibilities of an ethics officer?

A. Establishing a loyal customer base

B. Conducting surveys with customers to improve customer service

C. Overlooking hotline/guideline/internal reporting

D. Maintaining the information systems in the organization

C

According to the documentation of a survey conducted by the Ethics and Compliance Officers Association survey, which of the following responsibilities ranks lowest in the category of the main responsibilities of an ethics officer?

A. Training design

B. Organizationwide communications

C. Oversight of hotline/guideline/internal reporting

D. Conducting investigations of wrongdoing

D

Which of the following statements is a piece of advice from the Institute of Business Ethics for creating a code of ethics?

A. The company's competitors should be completely ignored when framing the code of ethics.

B. The involvement of external parties should be avoided during the creation of drafts.

C. The code should be publicly shared on platforms associated with the company.

D. The code should be tested on a sample consisting solely of top managerial employees.

C

Which of the following factors is likely to make companies revise and rewrite their codes of ethics from time to time?

A. A continuous change in the technology used by the company

B. An increase in costs due to certain codes of ethics being maintained

C. An increase in conflicts within the organization due to the implementation of the codes of ethics

D. A decline in the employees' productivity due to strict codes of ethics

A

In the context of a company's ethics policy, which of the following actions should an organization avoid taking?

A. Awarding prizes for ethical behavior

B. Declaring an Ethics Day and allowing every department to share its success stories

C. Communicating only to internal stakeholders

D. Recognizing employees who represent the standards of behavior to which the company is committed

C

Which of the following risks is most likely to occur as a result of organizational transparency?

A. Loss of market advantage through corporate espionage

B. Loss of trust among employees

C. Rise in costs due to maintenance of transparency

D. Decline of productivity of employees

A

Brenner Inc. (BI) is formulating its ethics policy with the goal of increasing employee loyalty and improving customer satisfaction. In order to meet these goals, BI should ensure that its policy:

A. includes threats of punishments balanced with rewards.

B. excludes low-performing departments from sharing their experiences.

C. includes only the internal stakeholders.

D. excludes awarding trainees in order to avoid upsetting the senior members of the organization.

A

Which of the following statements is true of transparency?

A. It provides avenues to increase organizational efficiency.

B. It helps organizations save on taxes and other costs.

C. It is a rare trait even in ethically driven organizations.

D. It does not pose any risk to confidential intellectual property.

A

_____ in business means that stakeholders have visibility deep into the processes and information of an organization.

A. Transparency

B. Conformity

C. Vicarious liability

D. Organizational integrity

A

Bretton Inc. (BI), a multinational corporation, releases detailed financial statements at the end of every quarter of a year. It is open and honest with its clients in all communication and clearly states the terms and conditions of its contracts. In this scenario, which of the following organizational characteristics is best illustrated by BI?

A. Conformity

B. Transparency

C. Organizational integrity

D. Vicarious liability

B

68. A policy that results when an organization is driven by events and/or a fear of future events is known as a _____.

A. distributive ethical policy

B. reactive ethical policy

C. secure ethical policy

D. defensive ethical policy

B

A policy that results when a company develops a clear sense of what it stands for as an ethical organization is known as a _____.

A. secure ethical policy

B. reactive ethical policy

C. defensive ethical policy

D. proactive ethical policy

D

The difference between reactive and proactive policies of an organization is that:

A. unlike reactive policies, proactive policies ignore the actions the organization will most likely take to be recognized as an ethical organization.

B. reactive policies are driven by events and/or a fear of future events, whereas proactive policies are driven by a clear sense of what is construed as ethical for the organization.

C. proactive policies help monitor the ethical performance of the organization only externally, whereas reactive policies monitor the organization both internally and externally.

D. unlike proactive policies, reactive policies are true ethical policies.

B

Which of the following actions is most likely to lead to the promotion of an organization's commitment to ethical behavior?

A. Sharing the organization's success stories exclusively with its employees

B. Responding to errors related to transactions after the clients approach the organization

C. Limiting the participation in Ethics Day celebrations solely to the employees

D. Allowing employees to visit client sites to talk about the organization's code of ethics

D

_____ describes the characteristic of publicly committing to the highest level of professional standards and then sticking to that commitment.

A. Organizational integrity

B. Vicarious liability

C. Corporate governance

D. Ethical relativism

A

Some of the employees, including the top managers and the board of directors, of Warburges Inc. have been in the news lately for accepting bribes and using corporate resources for personal expenses. Which of the following characteristics did the firm fail to demonstrate?

A. Vicarious liability

B. Ethical relativism

C. Organizational integrity

D. Corporate governance

C

What are the three principles available to resolve an ethical dilemma are they always successful?

What are the three components of an ethical dilemma?

What is ethical dilemma quizlet?

What is an example of an ethical dilemma quizlet?