Course Introduction
Business Law and Ethics
Test Questions
Business Law and Ethics provides an in-depth understanding of the legal and ethical frameworks that guide business decisions and operations. The course explores the foundations of contract law, torts, intellectual property, and regulatory compliance, while also analyzing ethical theories and their application to real-world business dilemmas. Through case studies and practical examples, students learn to identify legal risks, evaluate ethical issues, and make responsible decisions that align with both legal requirements and ethical principles in today's diverse and complex business environment.
Recommended Textbook
Business and Society Stakeholders Ethics Public Policy 14th Edition by Anne Lawrence
Available Study Resources on Quizplus
19 Chapters
986 Verified Questions
986 Flashcards
Source URL: https://quizplus.com/study-set/2747
Page 2
Chapter 1: The Corporation and Its Stakeholders
Available Study Resources on Quizplus for this Chatper
52 Verified Questions
52 Flashcards
Source URL: https://quizplus.com/quiz/54815
Sample Questions
Q1) The stakeholder theory of the firm argues that a firm's sole purpose is to create value for its shareholders.
A)True
B)False
Answer: False
Q2) Departments,or offices,within an organization that reach across the dividing line that separates the company from groups and people in society are:
A) Inter-departmental divisions.
B) Geographical location areas.
C) Boundary-spanning departments.
D) Organizational maps.
Answer: C
Q3) A stakeholder map is a useful tool because:
A) It enables mangers to see quickly how stakeholders feel about an issue.
B) It allows managers to evaluate what outcomes are likely regarding an issue.
C) It helps managers discourage or dissolve stakeholder coalitions.
D) Both A and B, but not
Answer: D
To view all questions and flashcards with answers, click on the resource link above.
3
Chapter 2: Managing Public Issues and Stakeholder Relationships
Available Study Resources on Quizplus for this Chatper
51 Verified Questions
51 Flashcards
Source URL: https://quizplus.com/quiz/54814
Sample Questions
Q1) Financially sound companies do not need to understand how a public issue is likely to evolve,or how it will affect them.
A)True
B)False
Answer: False
Q2) Firms that generally act only when forced to do so,and then in a defensive manner are:
A) Interactive companies.
B) Proactive companies.
C) Reactive companies.
D) Inactive companies.
Answer: C
Q3) The role of special interest groups is an important element in acquiring intelligence from the:
A) Customer environment.
B) Competitor environment.
C) Economic environment.
D) Social environment.
Answer: B
Page 4
To view all questions and flashcards with answers, click on the resource link above.
Chapter 3: The Corporations Social Responsibilities
Available Study Resources on Quizplus for this Chatper
52 Verified Questions
52 Flashcards
Source URL: https://quizplus.com/quiz/54813
Sample Questions
Q1) Corporate power says that in the long run,those who do not use power in ways that society considers responsible will tend to lose it.
A)True
B)False
Answer: False
Q2) In the United States,the idea of corporate social responsibility appeared around the start of the 20<sup>th</sup> century.
A)True
B)False
Answer: True
Q3) When businesses bring products and services to the many people in the world who have traditionally been beyond the reach of global commerce,they are said to be:
A) Serving the top of the triangle.
B) Reaching the bottom of the globe.
C) Serving the bottom of the pyramid.
D) Focusing on the ends of the supply chain.
Answer: C
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Ethics and Ethical Reasoning
Available Study Resources on Quizplus for this Chatper
52 Verified Questions
52 Flashcards
Source URL: https://quizplus.com/quiz/54812
Sample Questions
Q1) Business executives are finding that a trusting,ethical relationship with a business partner is:
A) Best left to not-for-profit companies.
B) Too costly to maintain.
C) Likely to cause legal problems.
D) Often essential in conducting business.
Q2) The Sarbanes-Oxley Act requires that firms maintain good financial practices,apart from high ethical standards,in how they conduct and monitor business operations.
A)True
B)False
Q3) Under the Sarbanes-Oxley Act,corporations are required to:
A) Have executives vouch for the accuracy of a firm's financial reports.
B) Have their audit committee comprised of only executives employed by the firm.
C) Collect reimbursements from the U.S. government if financial restatements occur.
D) All of the above.
Q4) An ethical egoist acts for the benefit of others and sacrifices self-interest.
A)True
B)False
To view all questions and flashcards with answers, click on the resource link above. Page 6
Chapter 5: Organizational Ethics and the Law
Available Study Resources on Quizplus for this Chatper
52 Verified Questions
52 Flashcards
Source URL: https://quizplus.com/quiz/54811
Sample Questions
Q1) Following laws can always define proper action.
A)True
B)False
Q2) Ethics deal with human dilemmas that frequently go beyond the formal language of law.
A)True
B)False
Q3) In the United States,most ethics policies are primarily based on the company's mission and vision.
A)True
B)False
Q4) In a benevolence ethical climate,the interests of the company's employees and external stakeholders most likely would be given high priority.
A)True
B)False
Q5) Define law.Discuss the differences between law and ethics.
Q6) Define white-collar crime.Provide three examples of such criminal acts.
Q7) Define ethical climate.Discuss the differences and similarities among the ethical climates outlined in the textbook.
Page 7
To view all questions and flashcards with answers, click on the resource link above.
Chapter 6: The Challenges of Globalization
Available Study Resources on Quizplus for this Chatper
50 Verified Questions
50 Flashcards
Source URL: https://quizplus.com/quiz/54810
Sample Questions
Q1) The theory of comparative advantage states that:
A) Productivity rises more quickly when countries produce goods and services for which they have a natural talent.
B) Productivity decreases when countries produce goods and services based on their natural resources.
C) All countries start out on an equal playing field.
D) Countries that operate under a policy of isolationism have a comparative advantage.
Q2) The World Bank makes currency exchange easier for member countries so that they can participate in global trade.
A)True
B)False
Q3) Which is an example of a social and political reform that has led to the acceleration of globalization?
A) Economic sanctions against North Korea.
B) Efforts to deter drug trafficking from Colombia.
C) The collapse of former communist states of central and eastern Europe.
D) The European Union's penalties against Microsoft for unfair competition.
Q4) How can global action networks help global problem solving?
To view all questions and flashcards with answers, click on the resource link above.
8
Chapter 7: Global Corporate Citizenship
Available Study Resources on Quizplus for this Chatper
52 Verified Questions
52 Flashcards
Source URL: https://quizplus.com/quiz/54809
Sample Questions
Q1) Sanford Limited,a small fishing company in New Zealand,made the following commitment(s)in its first triple bottom line report released in 2007:
A) To ensure that its operations were the best in the industry.
B) To maximize positive social outcomes and economic growth and prosperity.
C) To avoid going overboard with its social mission.
D) All of the above.
Q2) Which of the following is not a motivation for publishing a corporate social report?
A) Ethical concerns.
B) Economic considerations.
C) Stakeholder engagement.
D) Avoiding transparency.
Q3) The emerging trend in gathering audit information directly from workers using their mobile phones is called:
A) Network-sourcing.
B) Crowd-sourcing.
C) Social networking.
D) Mobile auditing.
Q4) Define transparency.How does corporate reporting increase business transparency?
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Business-Government Relations
Available Study Resources on Quizplus for this Chatper
52 Verified Questions
52 Flashcards
Source URL: https://quizplus.com/quiz/54808
Sample Questions
Q1) By raising and lowering the interest rates at which private banks borrow money from the government,the Federal Reserve Bank:
A) Influences the size of the nation's money supply.
B) Influences the value of the dollar.
C) Minimizes investor confidence about the nation's future.
D) Both A and B, but not
Q2) Cooperation between business and government often occurs when:
A) They encounter a common problem or enemy.
B) Business can afford it.
C) Business is required by law to cooperate.
D) Government has the support of the people.
Q3) A national health care policy is an example of an economic policy.
A)True
B)False
Q4) Regulation cannot be applied to international business behavior.
A)True
B)False
Q5) Regulatory activity often is cyclical.
A)True
B)False
10
To view all questions and flashcards with answers, click on the resource link above.
Chapter 9: Influencing the Political Environment
Available Study Resources on Quizplus for this Chatper
52 Verified Questions
52 Flashcards
Source URL: https://quizplus.com/quiz/54807
Sample Questions
Q1) Describe two tactics used to promote each of the three types of corporate political strategies.
Q2) In many countries,the political environment has a select few participants.
A)True
B)False
Q3) Prepare a strong argument in favor of and in opposition to businesses being involved in the political process.
Q4) According to the textbook,under the existing U.S.campaign contributions law,individuals can contribute:
A) Up to $1,400 to any candidate per election.
B) Up to $2,500 to any candidate per election.
C) Up to $5,400 to any candidate per election.
D) Nothing, only organizations can contribute to candidates.
Q5) The emergence of public issues often encourages companies to monitor public concerns,respond to government proposals,and participate in the political process.
A)True
B)False
Q6) How do the three types of corporate political strategies differ from each other?
Q7) Compare and contrast the three levels of business political involvement.
Page 11
To view all questions and flashcards with answers, click on the resource link above.
Chapter 10: Sustainable Development and Global Business
Available Study Resources on Quizplus for this Chatper
53 Verified Questions
53 Flashcards
Source URL: https://quizplus.com/quiz/54806
Sample Questions
Q1) About 20 percent of the world's people have incomes below the international poverty line.
A)True
B)False
Q2) The world's natural resource base-the air,water,soil,minerals,and so forth -- is essentially finite,or bounded.
A)True
B)False
Q3) The world's income is distributed equally among nations.
A)True
B)False
Q4) Identify and explain three major threats to the earth's ecosystem as described in the textbook.How will these threats accelerate the ecological crisis?
Q5) Depletion of the ozone layer,destruction of the rain forests,and species extinctions all have an impact on:
A) All of society.
B) A particular region.
C) A particular nation.
D) Only developing countries.
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Managing Environmental Issues
Available Study Resources on Quizplus for this Chatper
52 Verified Questions
52 Flashcards
Source URL: https://quizplus.com/quiz/54805
Sample Questions
Q1) When companies develop a reputation for environmental excellence,and they produce and deliver products and services designed to attract environmentally aware customers,this is called:
A) Technological innovation.
B) Strategic planning.
C) Green marketing.
D) Cost savings.
Q2) Which of the following statements is(are)true about the Comprehensive Environmental Response Compensation and Liability Act (CERCLA)?
A) It established a fund supported primarily by a tax on the petroleum and chemical companies.
B) It is regarded as one of the most successful environmental laws.
C) The funds collected are used to clean up sites where the original polluter cannot be identified.
D) Both A and C, but not
Q3) What are the appropriate civil and criminal penalties for companies that violate environmental laws? What types of guidelines exist for sentencing environmental wrongdoers?
To view all questions and flashcards with answers, click on the resource link above.
13
Chapter 12: Technology,Organizations,and Society
Available Study Resources on Quizplus for this Chatper
52 Verified Questions
52 Flashcards
Source URL: https://quizplus.com/quiz/54804
Sample Questions
Q1) The information phase of technology primarily requires:
A) Providing services.
B) Intellectual and electronic skills.
C) Manual and machine skills.
D) The same skills as needed in previous phases.
Q2) In the United States the government has tried to help narrow the digital divide by subsidizing Internet upgrades for schools and providing free cell phones to citizens in need.
A)True
B)False
Q3) The United States has the most Internet users than any other country.
A)True
B)False
Q4) Discuss what factors have fueled technological growth and development?
Q5) The practice of using fake business emails in order to trick users into divulging personal data,such as usernames and passwords,is called:
A) Phishing.
B) Pharming.
C) Tweeting.
D) Censorship.
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Managing Technology and Innovation
Available Study Resources on Quizplus for this Chatper
52 Verified Questions
52 Flashcards
Source URL: https://quizplus.com/quiz/54803
Sample Questions
Q1) Cell phone technology has sometimes aided law enforcement in capturing criminals who were caught breaking into an automobile or store.
A)True
B)False
Q2) In the United Kingdom offenders of software piracy and those who breach intellectual property rights face:
A) No penalty because there are no laws protecting software or intellectual property.
B) Fines up to 75,000 (nearly $100,000).
C) Fines of up to 50,000 (nearly $80,000) and/or a prison sentence of up to 10 years.
D) Mandatory prison sentence of 15 years.
Q3) Discuss the steps businesses and governments have taken to better protect stakeholder privacy.
Q4) Thanks to advancement in technology the number of instances of identity theft has been decreasing since 2006.
A)True
B)False
Q5) How is the corporate Chief Information Officer a "coach" for the organization?
To view all questions and flashcards with answers, click on the resource link above.
15
Chapter 14: Stockholder Rights and Corporate Governance
Available Study Resources on Quizplus for this Chatper
52 Verified Questions
52 Flashcards
Source URL: https://quizplus.com/quiz/54802
Sample Questions
Q1) Which of the following is not an instance of "insider trading"?
A) An auditor using nonpublic information about the company to invest in its stock.
B) A marketing executive briefing stock analysts on the company's sales performance.
C) The CEO's cousin buying stock after the CEO mentioned a pending offer to buy the company.
D) A stock broker passing an "inside tip" to a client, but not trading for his or her own account.
Q2) By 2010,out of the 100 largest US companies,how many had separated the positions of CEO and board chairman?
A) Seven.
B) Fifteen.
C) Thirty-one.
D) Sixty.
Q3) Which if the following is not a legal right of stockholders?
A) To vote on members for the board of directors.
B) To vote on major mergers and acquisitions.
C) To vote on changes in the corporate charter and proposals.
D) To vote on who will become chief executive officer (CEO).
To view all questions and flashcards with answers, click on the resource link above.
Page 16
Chapter 15: Consumer Protection
Available Study Resources on Quizplus for this Chatper
51 Verified Questions
51 Flashcards
Source URL: https://quizplus.com/quiz/54801
Sample Questions
Q1) Advertising that is targeted to particular customers,based on their observed online behavior,is called:
A) Targeted advertising.
B) Tracking advertising.
C) Behavioral advertising.
D) Online advertising.
Q2) Which of the following statements is not true about the organization Consumer Reports?
A) It is involved in activities promoting the interests of consumers.
B) It conducts extensive tests on selected consumer products and services.
C) It is supported by the federal government.
D) It publishes the results of tests, with ratings on brand-name basis, in its magazine.
Q3) Under what legal doctrine does a firm bear legal responsibility for injuries caused by something it made or sold,whether or not it was negligent or breached a warranty?
A) Strict liability.
B) Product liability.
C) Consumer liability.
D) Supplier liability.
To view all questions and flashcards with answers, click on the resource link above.
17
Chapter 16: Employees and the Corporation
Available Study Resources on Quizplus for this Chatper
52 Verified Questions
52 Flashcards
Source URL: https://quizplus.com/quiz/54800
Sample Questions
Q1) The Council for Economic Priorities has developed a set of workplace rules called Social Accountability 8000,or SA 8000.
A)True
B)False
Q2) The right to free speech is protected in the United States by the:
A) Constitution.
B) Patriot Act.
C) False Claims Act.
D) Fair Labor Standards Act.
Q3) Drug testing for cause is commonly used after an accident or some observable change in behavior.
A)True
B)False
Q4) A strong employer-employee relationship is central to:
A) Achieving a corporation's goals of economic production.
B) Satisfying the wishes of those who contribute their skills and talents to the company.
C) Increasing the gross domestic product of a nation.
D) Both A and B, but not
To view all questions and flashcards with answers, click on the resource link above. Page 18
Chapter 17: Managing a Diverse Workforce
Available Study Resources on Quizplus for this Chatper
52 Verified Questions
52 Flashcards
Source URL: https://quizplus.com/quiz/54799
Sample Questions
Q1) "Glass walls" refers to:
A) Fewer opportunities for upward advancement.
B) Fewer opportunities to move sideways into jobs that lead to the top.
C) Reliance on word of mouth by recruiters for top positions -- "the old boys' network" from which women are excluded.
D) A company's lack of commitment to diversity.
Q2) Beginning on a major scale in the 1960s,U.S.presidents issued executive orders and Congress enacted laws intended to promote equal treatment of employees.
A)True
B)False
Q3) Even though racial and gender bias has been lowered in most organizations,women and persons of color remain underrepresented in executive level positions.
A)True
B)False
Q4) What is the role of government in the area of equal employment opportunity? Discuss from a historical perspective.
To view all questions and flashcards with answers, click on the resource link above. Page 19
Chapter 18: The Community and the Corporation
Available Study Resources on Quizplus for this Chatper
53 Verified Questions
53 Flashcards
Source URL: https://quizplus.com/quiz/54798
Sample Questions
Q1) What is the most important social issue facing communities,according to a survey of community relations managers?
A) Education.
B) Health care.
C) Public safety.
D) Housing.
Q2) Which of the following is not included among purposes for establishing community relations departments by businesses?
A) To work with local governments.
B) To manage donations of goods and services.
C) To encourage employee volunteerism in nonprofit and civic groups.
D) Manage international relations projects for economic development.
Q3) The term community refers to a company's area of local business influence.
A)True
B)False
Q4) How do companies encourage their employees to volunteer their time?
A) By publicizing specific projects.
B) By offering recognition for service.
C) By publicizing opportunities to serve.
D) All of the above.
To view all questions and flashcards with answers, click on the resource link above. Page 20
Chapter 19: Managing Public Relations
Available Study Resources on Quizplus for this Chatper
52 Verified Questions
52 Flashcards
Source URL: https://quizplus.com/quiz/54797
Sample Questions
Q1) The Federal Trade Commission attempts to ensure that the public is protected against which of the following unethical business practices?
A) The creation of industry cartels.
B) The use of deception to distort the truth.
C) Exchange rate manipulation by a country.
D) None of the above.
Q2) The Internet-based communication revolution has significantly benefited only large organizations.
A)True
B)False
Q3) The Securities and Exchange Commission is charged with regulating interstate and international communications by radio,television,wire,satellite,and cable.
A)True
B)False
Q4) A rule of media communication is to:
A) Be honest.
B) Be current.
C) Be accessible.
D) All of the above.
To view all questions and flashcards with answers, click on the resource link above. Page 21