TEST BANK for Business Ethics Case Studies and Selected Readings, 9th Edition by Marianne Jennings

TEST BANK for Business Ethics Case Studies and Selected Readings, 9th Edition by Marianne Jennings

Unit 01:

True / False 1. A credo consists of how you define yourself by job title and income. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Remember DATE CREATED: 8/24/2017 4:41 PM DATE MODIFIED: 9/12/2017 4:10 PM 2. Part of a credo includes a list of lines you would never cross to be successful. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Remember DATE CREATED: 8/24/2017 4:57 PM DATE MODIFIED: 8/24/2017 4:59 PM 3. An ethical breach is not necessarily a violation of the law. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Remember Copyright Cengage Learning. Powered by Cognero.

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DATE CREATED: 8/24/2017 5:26 PM DATE MODIFIED: 8/24/2017 5:28 PM 4. Unwritten rules of conduct are part of our normative standards. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Remember DATE CREATED: 8/24/2017 5:28 PM DATE MODIFIED: 8/24/2017 5:31 PM 5. Self-interest is the same as selfishness. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 8/24/2017 5:33 PM DATE MODIFIED: 8/24/2017 5:35 PM 6. Ethical egoism is selfishness. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 8/24/2017 5:36 PM DATE MODIFIED: 8/24/2017 5:37 PM 7. Kant would label paying lower wages in developing countries than the wages paid in developed economies as unethical. a. True

b. False ANSWER: POINTS: DIFFICULTY:

False 1 Moderate

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QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/24/2017 5:39 PM DATE MODIFIED: 8/24/2017 5:40 PM 8. Kant is part of the utilitarian school of thought on ethics. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 8/24/2017 5:41 PM DATE MODIFIED: 8/24/2017 5:45 PM 9. Kant and Rand do not agree on the importance of self-interest in ethical theory. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 8/24/2017 5:47 PM DATE MODIFIED: 8/24/2017 5:48 PM 10. Locke and Rawls develop their ethical theory on the basis of a tabula rasa. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 8/24/2017 5:48 PM DATE MODIFIED: 8/24/2017 5:50 PM 11. Locke and Rawls are contractarians. a. True

b. False Copyright Cengage Learning. Powered by Cognero.

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ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 8/24/2017 5:50 PM DATE MODIFIED: 8/24/2017 5:52 PM 12. The Rights Theory is generally associated with Plato and Aristotle. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 8/24/2017 5:52 PM DATE MODIFIED: 8/24/2017 5:53 PM 13. Robert Nozick is the leading thinker for utilitarianism. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 8/24/2017 5:53 PM DATE MODIFIED: 8/24/2017 5:55 PM 14. Third-trimester abortions would be supported under a Rights Theory. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/24/2017 5:55 PM DATE MODIFIED: 8/24/2017 6:02 PM Copyright Cengage Learning. Powered by Cognero.

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15. Robert Solomon is a proponent of virtue ethics. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 8/24/2017 5:56 PM DATE MODIFIED: 8/24/2017 5:59 PM 16. “It‟s a gray area,” is an example of ethical analysis. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Remember DATE CREATED: 8/24/2017 6:01 PM DATE MODIFIED: 8/24/2017 6:02 PM 17. “We all don‟t share the same ethics” fails to consider common values that do exist in business. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Remember DATE CREATED: 8/24/2017 6:03 PM DATE MODIFIED: 8/24/2017 6:04 PM 18. Volkswagen‟s defeat device allowed it to record lower levels than actual emissions of its cars. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics Copyright Cengage Learning. Powered by Cognero.

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KEYWORDS: Bloom's: Remember DATE CREATED: 8/24/2017 6:05 PM DATE MODIFIED: 8/24/2017 6:08 PM 19. Volkswagen executives do not believe company pressures influenced decisions. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Remember DATE CREATED: 8/24/2017 6:09 PM DATE MODIFIED: 8/24/2017 6:10 PM 20. Laura Nash provides tools for examining how a company got into an ethical dilemma. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas and Personal Introspection KEYWORDS: Bloom's: Understand DATE CREATED: 8/24/2017 6:11 PM DATE MODIFIED: 8/24/2017 6:12 PM 21. It is not plagiarism to use facts obtained from several sources that are footnoted or listed as sources. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas and Personal Introspection KEYWORDS: Bloom's: Evaluate DATE CREATED: 8/24/2017 6:13 PM DATE MODIFIED: 8/24/2017 6:14 PM 22. It is plagiarism to rewrite the phrasing of another source and not use quotes or a footnote. a. True

b. False ANSWER: POINTS: DIFFICULTY:

True 1 Moderate

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QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas and Personal Introspection KEYWORDS: Bloom's: Evaluate DATE CREATED: 8/24/2017 6:15 PM DATE MODIFIED: 8/24/2017 6:16 PM 23. A conflict of interest is unethical only if those involved actually change their decision based on the benefits to be derived. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 8/24/2017 6:17 PM DATE MODIFIED: 8/24/2017 6:18 PM 24. An illegal act is an unethical act. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/24/2017 6:19 PM DATE MODIFIED: 8/24/2017 6:21 PM 25. Using positive law as an ethical standard means simply compliance with the law. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 8/31/2017 1:56 PM DATE MODIFIED: 8/31/2017 2:00 PM 26. The element of balance in the Blanchard/Peale ethical model requires an examination of the issue from the perspective of the affected party.

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a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas and Personal Introspection KEYWORDS: Bloom's: Understand DATE CREATED: 8/31/2017 2:01 PM DATE MODIFIED: 9/12/2017 4:13 PM 27. A valid ethical barometer is the reaction of family and friends outside the business setting to your proposed decision. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas and Personal Introspection KEYWORDS: Bloom's: Remember DATE CREATED: 8/31/2017 2:03 PM DATE MODIFIED: 8/31/2017 2:05 PM 28. An agreement by an agent to accept a 10% commission from a seller who will sell goods to the agent‟s employer is ethical so long as the agent would have chosen that seller anyway. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 2:05 PM DATE MODIFIED: 8/31/2017 2:06 PM 29. A real estate agent who recommends a management firm to an apartment complex buyer without disclosing that the agent owns 50% of the firm has committed an ethical violation. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics Copyright Cengage Learning. Powered by Cognero.

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KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 2:07 PM DATE MODIFIED: 8/31/2017 2:08 PM 30. A commercial broker who accepts fees from both the seller and the buyer of the business without disclosure to either has not committed an ethical violation if both parties are happy with the transaction. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 2:08 PM DATE MODIFIED: 8/31/2017 2:09 PM 31. A member of the city council who is employed by a waste management firm would have a conflict of interest in voting on the city‟s award of a contract for the handling of the city‟s waste. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 2:14 PM DATE MODIFIED: 8/31/2017 2:15 PM 32. A physician conducting a study on a new prescription drug manufactured by a firm in which he is a 10% shareholder does not have a conflict of interest so long as his stock ownership is disclosed in his report on the drug. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 2:16 PM DATE MODIFIED: 8/31/2017 2:16 PM 33. A physical fitness expert retained by a fitness magazine to evaluate walking shoes has a conflict of interest if she has an endorsement contract with one of the shoe companies that manufactures the shoes she will be evaluating. a. True Copyright Cengage Learning. Powered by Cognero.

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b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 2:18 PM DATE MODIFIED: 8/31/2017 2:18 PM 34. Giving preferential treatment in contract bidding to the daughter of a member of the company board is not a conflict of interest. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 2:18 PM DATE MODIFIED: 8/31/2017 2:19 PM 35. A major donation by one of your long-term suppliers to a non-profit organization run by your spouse should not create perception problems so long as your purchasing decisions are based on the merits. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 2:19 PM DATE MODIFIED: 8/31/2017 2:24 PM 36. Having loan applicants pay for the expenses of bank officer travel for purposes of evaluating collateral is not a conflict of interest. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics Copyright Cengage Learning. Powered by Cognero.

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KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 2:21 PM DATE MODIFIED: 8/31/2017 2:22 PM 37. Purchasing agents accepting a pleasure trip from a supplier when no bids are pending is still an ethical violation. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 2:22 PM DATE MODIFIED: 8/31/2017 2:26 PM 38. Payments of royalties from drug sales by a pharmaceutical firm to the university where a researcher conducting studies has validated the firm‟s claims is a conflict of interest. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 2:27 PM DATE MODIFIED: 8/31/2017 2:27 PM 39. The failure to disclose that your college degree was withheld because of outstanding parking fines and violations is unethical. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 2:28 PM DATE MODIFIED: 8/31/2017 2:28 PM 40. Taking information from a confidential file accidentally left on your desk is not unethical. a. True

b. False ANSWER:

False

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POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 2:29 PM DATE MODIFIED: 8/31/2017 2:29 PM 41. The failure to speak out when an ethical or legal lapse occurs within your firm is in itself an ethical violation. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 2:29 PM DATE MODIFIED: 8/31/2017 2:30 PM 42. “Everyone else does it,” is a signal of an ethical pitfall. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Remember DATE CREATED: 8/31/2017 2:31 PM DATE MODIFIED: 8/31/2017 2:32 PM 43. “The lawyers have okayed this,” is a signal that the decision/action is legal and ethical. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Remember DATE CREATED: 8/31/2017 2:32 PM DATE MODIFIED: 8/31/2017 2:33 PM 44. Labeling infertility surgery as “diagnostic surgery” in order to allow the patient to recover the costs from an insurer is Copyright Cengage Learning. Powered by Cognero.

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unethical. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 2:34 PM DATE MODIFIED: 8/31/2017 2:34 PM 45. A company executive exerting pressure on a scientist and her university to delay disclosure of study results harmful to the company and its products would be unethical. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 2:35 PM DATE MODIFIED: 8/31/2017 2:35 PM 46. Ethical choices often prove costly to firms in the short term. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas and Personal Introspection KEYWORDS: Bloom's: Remember DATE CREATED: 8/31/2017 2:35 PM DATE MODIFIED: 8/31/2017 2:37 PM 47. Taking advantage of a party in a contract situation due to the party‟s inexperience, and not due to any lack of disclosure on your part, is ethical. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

Defining Ethics Bloom's: Apply 8/31/2017 2:38 PM 8/31/2017 2:38 PM

48. The failure to disclose relevant information about a product or service would be withholding information or giving a false impression. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 2:38 PM DATE MODIFIED: 8/31/2017 2:39 PM 49. Speeding is not an ethical issue as long as you are in the normative range of the speed limit. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 2:40 PM DATE MODIFIED: 8/31/2017 2:40 PM 50. If I worked in purchasing in my company, it would be a conflict of interest and unethical for me to accept season tickets for my city's NBA team from the company that has supplied catering for the company's training sessions. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 2:41 PM DATE MODIFIED: 8/31/2017 2:41 PM 51. If I discover that a fellow employee is reporting falsely his overtime hours, it is best for me to say nothing and ignore the situation. a. True Copyright Cengage Learning. Powered by Cognero.

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b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 2:42 PM DATE MODIFIED: 8/31/2017 2:42 PM 52. If I discovered that I unintentionally violated a federal environmental regulation, I should just wait and see if anything happens before taking any action. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 2:42 PM DATE MODIFIED: 8/31/2017 2:43 PM 53. If my supervisor asked me to cover for him by lying about his whereabouts, I should agree to do it but remind him that I can't make it a habit. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 2:43 PM DATE MODIFIED: 8/31/2017 2:44 PM 54. Your company's policy on company vehicles is that no family members may use them or ride in them. It would be unethical to use a company car to drive you and your spouse to a movie. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics Copyright Cengage Learning. Powered by Cognero.

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KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 2:44 PM DATE MODIFIED: 8/31/2017 2:46 PM 55. You are taking a graduate level course in management that will help you in performing your duties at work. Each week you must submit case analyses to your professor. Using work time to complete the analyses would be unethical. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 2:46 PM DATE MODIFIED: 8/31/2017 2:47 PM 56. You are taking a graduate level course in management that will help you in performing your duties at work. Each week you must submit case analyses to your professor. Using your work computer and paper to complete the case analyses would be unethical. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 2:48 PM DATE MODIFIED: 8/31/2017 2:50 PM 57. Attending a class on company time would be taking advantage or taking things that do not belong to you and unethical. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 2:51 PM DATE MODIFIED: 8/31/2017 2:52 PM 58. A supplier has just been awarded a large contract by your company. As an employee in purchasing, you were largely responsible for awarding that supplier the contract. The supplier's sales representative has just called and would like to take you to lunch to thank you for the support. Going to lunch with the sale representative does not present any ethical Copyright Cengage Learning. Powered by Cognero.

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problems. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 2:52 PM DATE MODIFIED: 8/31/2017 2:55 PM 59. Accepting gifts from suppliers and vendors is not a problem so long as no bid decisions are pending. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 2:58 PM DATE MODIFIED: 8/31/2017 2:59 PM 60. You are a building inspector for the county. A friend of yours is a plumbing contractor. Under county regulations, all steps in plumbing construction from the initial dig to the final installation of sink and bathroom fixtures requires an inspection sign-off. Your plumbing contractor friend has just called and wants to take you to dinner for your birthday at a five-star restaurant. Because you are friends anyway, the dinner presents no ethical problems. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 2:59 PM DATE MODIFIED: 8/31/2017 3:00 PM 61. Your company has several outdated computers sitting in a storage closet that no one is using. You have taken one home without permission and set it up for personal use. This conduct falls into at least one of the categories of unethical conduct. a. True

b. False ANSWER: POINTS:

True 1

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DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 3:00 PM DATE MODIFIED: 8/31/2017 3:01 PM 62. You work for a school district as a facilities coordinator. You drive to the various schools in the district and supervise construction and remodeling and assess various building needs. When you are traveling around to the various schools, you use a district vehicle that is clearly marked as such. One day you stop at the country club and have lunch before heading to the next school since the country club is on the way. You also stop at the bank drive-thru teller to do some personal banking business. Both the lunch and the bank stop fall into categories of ethical breaches. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 3:01 PM DATE MODIFIED: 8/31/2017 3:02 PM 63. Your supervisor has told you that he wants to "get rid of Jane." Jane is a Hispanic female co-worker who is very bright and capable and hardworking. Your supervisor has asked you to document everything Jane does and says that will help build a case for termination. Because you are just doing what you are told to do, there is not an ethical breach in doing as your supervisor instructs you. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 3:02 PM DATE MODIFIED: 8/31/2017 3:03 PM 64. Alice is a co-worker who is going through a divorce and has two small children. Alice's husband is not paying the child support the temporary court order requires. As a result, Alice is broke until she can get her court hearing. Alice has been able, through diverting checks returned to the company, to take about $2,200 from the company to "temporarily help her cover her bills," as she has explained to you. Not reporting Alice's embezzlement is an ethical breach. a. True

b. False ANSWER: POINTS: DIFFICULTY:

True 1 Moderate

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QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 3:04 PM DATE MODIFIED: 8/31/2017 3:04 PM 65. The mayor owns property next to one of the proposed sites for the city's new baseball stadium. The mayor has a conflict of interest and should not vote on the location of the stadium when the city council takes action on the site. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 3:05 PM DATE MODIFIED: 8/31/2017 3:05 PM 66. Although you are not part of your company's engineering group, you have discovered a major flaw in the company's new paper-thin solar calculator. The calculator adds when the subtract button is pressed if there are more than 3 figures to the right of the decimal point. Since it is not your area, you have no ethical duty to report the issue. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 3:06 PM DATE MODIFIED: 8/31/2017 3:06 PM 67. Although you are not part of your company's engineering group, you have discovered a major flaw in the company's new paper-thin solar calculator. The calculator adds when the subtract button is pressed if there are more than 3 figures to the right of the decimal point. It is not necessary for the company to take any action to correct the problem or refund money for those who already own the new calculator. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 3:07 PM Copyright Cengage Learning. Powered by Cognero.

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DATE MODIFIED: 8/31/2017 3:09 PM 68. Alice is a secretary in your department. Alice is also a member of the American Guild of Organists. Alice has been placed in charge of the Guild's national convention. Each time you pass by Alice's desk or go to her to have some work done, you notice she is on the phone discussing or working on the convention. Alice's work on the convention during work hours is an ethical violation. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 3:09 PM DATE MODIFIED: 8/31/2017 3:10 PM 69. Doug rented a car to drive from Las Vegas to Los Angeles. Doug did not see the warning and he put the wrong kind of fuel in his diesel rental car. The car broke down half-way between Las Vegas and Los Angeles. Doug called the rental car company and complained about his defective vehicle. The rental car company sent out a tow truck with a different car for Doug, paid for a hotel for the night, and offered him coupons for free rentals in the future. Doug did not disclose the fueling issue. Doug has not violated any of the categories of ethical breaches. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 3:11 PM DATE MODIFIED: 8/31/2017 3:12 PM 70. A newspaper reporter is interviewing you about your experiences in working for a member of Congress. You have indicated you have information about his private life, but will not share it. The reporter responds, "Tell me, just between you and me." You share the information and a quote from you on the private life of the member of Congress appears in the newspaper the next day. The reporter has engaged in conduct that violates at least one category of ethical dilemmas. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 3:13 PM DATE MODIFIED: 8/31/2017 3:14 PM Copyright Cengage Learning. Powered by Cognero.

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71. It would not be unethical for you to accept two employment offers in case one fell through. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 3:14 PM DATE MODIFIED: 8/31/2017 3:15 PM 72. It would not be unethical to continue interviewing for positions after you have already accepted employment with a particular firm. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 3:15 PM DATE MODIFIED: 8/31/2017 3:16 PM 73. You work for a construction firm that is submitting a bid for the construction of a new company headquarters building for Smithco. A friend you have known since high school works in Smithco's capital budgeting area and has full knowledge of all the bids from all firms. It would be unethical for your friend to share that information with you before you submitted your bid. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 3:17 PM DATE MODIFIED: 8/31/2017 3:18 PM 74. You work for a construction firm that is submitting a bid for the construction of a new company headquarters building for Smithco. A friend you have known since high school works in Smithco's capital budgeting area and has full knowledge of all the bids from all firms. It would be unethical for you to hire your friend to get him to bring the information to your company. a. True

b. False ANSWER:

True

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POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 3:18 PM DATE MODIFIED: 8/31/2017 3:20 PM 75. Your college of business is sponsoring a case competition. All teams must watch the other teams compete. The order of presentation is by luck of a draw. The team that is the last to present left during one of the presentations, went to the computer room and redid its PowerPoint slides and restructured its presentation based on what other teams had presented. This team has done nothing unethical. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 3:20 PM DATE MODIFIED: 8/31/2017 3:21 PM 76. Conduct may comply with the law, but still be unethical. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 3:22 PM DATE MODIFIED: 8/31/2017 3:23 PM 77. Following positive law is not the full extent of ethics. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 3:23 PM Copyright Cengage Learning. Powered by Cognero.

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DATE MODIFIED: 8/31/2017 3:23 PM 78. It is not your responsibility to report a co-worker who leaves the office early each day without taking time off. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 3:24 PM DATE MODIFIED: 8/31/2017 3:24 PM 79. Using things of minimal value that belong to your employer for personal reasons (such as paper, paper clips, pens) is not an ethical violation. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 3:25 PM DATE MODIFIED: 8/31/2017 3:25 PM 80. You should disclose to your employer if a relative of yours has submitted a bid for work with your company. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 3:25 PM DATE MODIFIED: 8/31/2017 3:27 PM 81. It is an ethical violation to disclose personnel information about your co-workers even to your family. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

False Defining Ethics Bloom's: Apply 8/31/2017 3:40 PM 8/31/2017 3:41 PM

82. If you are fired from your job, you can use any information you gained while employed to help your next employer. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 3:42 PM DATE MODIFIED: 8/31/2017 3:42 PM 83. You need not disclose in your employment application those positions you held which will not result in good feedback about you if your supervisors there are contacted.

a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 3:43 PM DATE MODIFIED: 8/31/2017 3:44 PM 84. Violation of company rules is not considered an ethical violation. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 3:44 PM DATE MODIFIED: 8/31/2017 3:45 PM 85. A false impression, unlike lying, is not an ethical violation. a. True Copyright Cengage Learning. Powered by Cognero.

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b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Remember DATE CREATED: 8/31/2017 3:48 PM DATE MODIFIED: 8/31/2017 3:49 PM 86. A journalist who fails to disclose his or her financial interest in the subject of a story he or she is covering has a conflict of interest. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 3:50 PM DATE MODIFIED: 8/31/2017 3:50 PM 87. A purchasing agent for a company could accept a Rolex from a supplier so long as there is no bid pending. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 3:51 PM DATE MODIFIED: 8/31/2017 3:51 PM 88. The safest and simplest conflict of interest policy for purchasing agents is to accept nothing from suppliers. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Evaluate Copyright Cengage Learning. Powered by Cognero.

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DATE CREATED: 8/31/2017 3:52 PM DATE MODIFIED: 8/31/2017 3:53 PM 89. A purchasing agent whose daughter works for a supplier has a conflict of interest. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 3:53 PM DATE MODIFIED: 8/31/2017 3:54 PM 90. A purchasing agent who is an owner of 25% of the shares in a supplier does not have a conflict of interest. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 3:54 PM DATE MODIFIED: 8/31/2017 3:55 PM 91. Putting down a degree on a resume that is not yet earned is acceptable if the degree is pending. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 3:55 PM DATE MODIFIED: 8/31/2017 3:57 PM 92. Claiming a computer is stolen in order to obtain insurance when the computer is simply outmoded is acceptable when the insurer doesn‟t question claims that amount to less than $2,000. a. True

b. False ANSWER: POINTS: DIFFICULTY:

False 1 Moderate

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QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 3:57 PM DATE MODIFIED: 8/31/2017 3:58 PM 93. Peter Drucker believes that the ethical obligation of business is to bluff within reason. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas and Personal Introspection KEYWORDS: Bloom's: Remember DATE CREATED: 8/31/2017 3:59 PM DATE MODIFIED: 8/31/2017 4:01 PM 94. One of the questions in the Laura Nash model is whether the proposed conduct is legal. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas and Personal Introspection KEYWORDS: Bloom's: Remember DATE CREATED: 8/31/2017 4:01 PM DATE MODIFIED: 8/31/2017 4:02 PM 95. One of the questions in the Laura Nash model is to examine your intentions in choosing a particular course of conduct. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas and Personal Introspection KEYWORDS: Bloom's: Remember DATE CREATED: 8/31/2017 4:02 PM DATE MODIFIED: 8/31/2017 4:03 PM 96. Warren Buffett is credited with the development of the “Front Page of the Newspaper” tests as a means for resolving ethical dilemmas.

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a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas and Personal Introspection KEYWORDS: Bloom's: Remember DATE CREATED: 8/31/2017 4:04 PM DATE MODIFIED: 8/31/2017 4:04 PM 97. Laura Nash does not see any purpose in examining how an ethical dilemma occurs. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas and Personal Introspection KEYWORDS: Bloom's: Remember DATE CREATED: 8/31/2017 4:05 PM DATE MODIFIED: 9/12/2017 4:14 PM 98. Submitting a new pair of shoes as a travel expense is an example of a dishonest act. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 4:06 PM DATE MODIFIED: 8/31/2017 4:07 PM 99. Using co-workers to give your supervisor the impression that you are in the office is not an ethical issue. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply Copyright Cengage Learning. Powered by Cognero.

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DATE CREATED: 8/31/2017 4:07 PM DATE MODIFIED: 8/31/2017 4:08 PM 100. Volkswagen entered a guilty plea to criminal charges of emission falsification. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Remember DATE CREATED: 8/31/2017 4:09 PM DATE MODIFIED: 8/31/2017 4:12 PM 101. Volkswagen‟s internal investigation revealed “yes-men” in its ranks. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 8/31/2017 4:12 PM DATE MODIFIED: 9/12/2017 4:15 PM 102. “A Simple Plan” is a story about making the correct ethical choice and avoiding problems. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 8/31/2017 4:15 PM DATE MODIFIED: 9/12/2017 4:15 PM 103. The University of North Carolina refused to allow its special admits program to be used for admitting studentathletes. a. True

b. False ANSWER: POINTS: DIFFICULTY:

False 1 Easy

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QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Remember DATE CREATED: 8/31/2017 4:18 PM DATE MODIFIED: 9/12/2017 4:16 PM 104. “Whack a mole” results once an unethical course of action begins. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Remember DATE CREATED: 8/31/2017 5:50 PM DATE MODIFIED: 9/12/2017 4:16 PM 105. Most ethical lapses are sudden and not foreseen. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Remember DATE CREATED: 8/31/2017 5:52 PM DATE MODIFIED: 8/31/2017 5:53 PM 106. Ethical lapses involve gradual decision processes. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Remember DATE CREATED: 8/31/2017 5:53 PM DATE MODIFIED: 8/31/2017 5:54 PM 107. Taking your current employer‟s supply chain management system to a prospective employer is not a breach of trust. a. True

b. False Copyright Cengage Learning. Powered by Cognero.

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ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 5:55 PM DATE MODIFIED: 9/12/2017 4:17 PM 108. Taking your current employer‟s customer list to a prospective employer is a breach of trust. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 5:56 PM DATE MODIFIED: 9/12/2017 4:17 PM 109. The failure to disclose a current employee‟s conduct that resulted in dismissal and harm to a prospective employer is a breach of ethics. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 5:57 PM DATE MODIFIED: 8/31/2017 5:58 PM 110. It is more ethical to remain silent about misdeeds. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Evaluate DATE CREATED: 8/31/2017 5:58 PM DATE MODIFIED: 8/31/2017 5:59 PM Copyright Cengage Learning. Powered by Cognero.

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111. Plato believed one cannot make ethical decisions without first developing virtue. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 8/31/2017 6:00 PM DATE MODIFIED: 9/12/2017 4:18 PM 112. Normative standards are the same as legal standards. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 8/31/2017 6:01 PM DATE MODIFIED: 9/12/2017 4:18 PM 113. The Divine Command Theory includes the principles of natural law. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Remember DATE CREATED: 8/31/2017 6:02 PM DATE MODIFIED: 9/12/2017 4:19 PM 114. The United States Declaration of Independence is grounded in natural law. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics Copyright Cengage Learning. Powered by Cognero.

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KEYWORDS: Bloom's: Remember DATE CREATED: 8/31/2017 6:03 PM DATE MODIFIED: 9/12/2017 4:19 PM 115. Ayn Rand was the philosophical thinker who developed the Divine Command Theory. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Remember DATE CREATED: 8/31/2017 6:05 PM DATE MODIFIED: 9/12/2017 4:20 PM 116. Acting in one‟s own self-interest is a description of ethical egoism. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 8/31/2017 6:06 PM DATE MODIFIED: 9/12/2017 4:23 PM 117. Ayn Rand wrote The Moral Sentiments of Markets. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Remember DATE CREATED: 8/31/2017 6:07 PM DATE MODIFIED: 9/12/2017 4:24 PM 118. Adam Smith is part of the Divine Command School. a. True

b. False ANSWER: POINTS: DIFFICULTY:

False 1 Easy

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QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Remember DATE CREATED: 8/31/2017 6:09 PM DATE MODIFIED: 9/12/2017 4:24 PM 119. Temporary chaos can result as markets make adjustments under Adam Smith‟s theories. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Analyze DATE CREATED: 8/31/2017 6:21 PM DATE MODIFIED: 9/12/2017 4:25 PM 120. Jeremy Bentham is a proponent of utilitarianism. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Remember DATE CREATED: 8/31/2017 6:23 PM DATE MODIFIED: 9/12/2017 4:25 PM 121. Utilitarianism is described as the “greatest happiness principle”. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Remember DATE CREATED: 8/31/2017 6:24 PM DATE MODIFIED: 9/12/2017 4:26 PM 122. Immanuel Kant is the creator of the Categorical Imperative. a. True

b. False Copyright Cengage Learning. Powered by Cognero.

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ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Remember DATE CREATED: 8/31/2017 6:25 PM DATE MODIFIED: 9/12/2017 4:26 PM 123. John Stuart Mill wrote The Moral Sentiments of Markets. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Remember DATE CREATED: 8/31/2017 6:26 PM DATE MODIFIED: 9/12/2017 4:26 PM 124. The Golden Rule is a form of the Categorical Imperative. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Remember DATE CREATED: 8/31/2017 6:27 PM DATE MODIFIED: 9/12/2017 4:27 PM 125. Kant believes so long as you do the right thing, it does not matter what your reasons were. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Analyze DATE CREATED: 8/31/2017 6:28 PM DATE MODIFIED: 9/12/2017 4:27 PM Copyright Cengage Learning. Powered by Cognero.

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126. The Theory of Justice is the same as the Categorical Imperative. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Analyze DATE CREATED: 8/31/2017 6:29 PM DATE MODIFIED: 9/12/2017 4:28 PM 127. The Theory of Justice is subscribed to by contractarians. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 8/31/2017 6:30 PM DATE MODIFIED: 9/12/2017 4:28 PM 128. John Locke is the creator of the Self-Interest Theory. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Remember DATE CREATED: 8/31/2017 6:36 PM DATE MODIFIED: 9/12/2017 4:29 PM 129. John Rawls is a contractarian. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics Copyright Cengage Learning. Powered by Cognero.

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KEYWORDS: Bloom's: Remember DATE CREATED: 8/31/2017 6:37 PM DATE MODIFIED: 9/12/2017 4:29 PM 130. Making your rules assuming you don‟t know which side you will be on in any given dilemma is the Theory of Justice. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 8/31/2017 6:38 PM DATE MODIFIED: 9/12/2017 4:30 PM 131. The Rights Theory is the same as the Theory of Justice. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 8/31/2017 6:38 PM DATE MODIFIED: 9/12/2017 4:30 PM 132. Under the Rights Theory, government exists to protect rights. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 8/31/2017 6:39 PM DATE MODIFIED: 9/12/2017 4:31 PM 133. Robert Nozick is a moral relativist. a. True

b. False ANSWER: POINTS: DIFFICULTY:

False 1 Easy

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QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Remember DATE CREATED: 8/31/2017 6:40 PM DATE MODIFIED: 9/12/2017 4:31 PM 134. Moral relativism is circumstantial ethics. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 8/31/2017 6:41 PM DATE MODIFIED: 9/12/2017 4:32 PM 135. Plato and Aristotle were moral relativists. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 6:42 PM DATE MODIFIED: 8/31/2017 6:45 PM 136. Thomas Hobbes felt that we needed strong government control in order to achieve ethical behavior. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Evaluate DATE CREATED: 8/31/2017 6:43 PM DATE MODIFIED: 8/31/2017 6:44 PM 137. Ayn Rand and Thomas Hobbes were proponents of ethical egoism. a. True

b. False Copyright Cengage Learning. Powered by Cognero.

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ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Evaluate DATE CREATED: 8/31/2017 6:45 PM DATE MODIFIED: 8/31/2017 6:45 PM 138. Those who hit a car in a parking lot without being seen and don‟t leave a note are Kantian in their ethical standards. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 6:46 PM DATE MODIFIED: 8/31/2017 6:46 PM 139. “We didn‟t think of them as bribes. We thought of them as useful expenditures,” is an example of virtue ethics. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 6:47 PM DATE MODIFIED: 8/31/2017 6:47 PM 140. Professor Dan Ariely‟s work focuses on the impact of stepping outside ethical norms. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Remember DATE CREATED: 8/31/2017 6:48 PM DATE MODIFIED: 8/31/2017 6:52 PM Copyright Cengage Learning. Powered by Cognero.

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141. Blue Bell Ice Cream was not aware of any food inspection issues before the Listeria deaths occurred. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Remember DATE CREATED: 8/31/2017 6:52 PM DATE MODIFIED: 8/31/2017 6:53 PM 142. “Recall creep” is part of the Blue Bell investigation into the Listeria issue. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Remember DATE CREATED: 8/31/2017 6:53 PM DATE MODIFIED: 8/31/2017 6:54 PM 143. Blue Bell Ice Cream had to halt production for four months following the Listeria problems. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Remember DATE CREATED: 8/31/2017 6:54 PM DATE MODIFIED: 8/31/2017 6:55 PM 144. Misrepresentations about experience are the most common executive falsification in their résumés. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas and Personal Introspection Copyright Cengage Learning. Powered by Cognero.

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KEYWORDS: Bloom's: Remember DATE CREATED: 8/31/2017 6:55 PM DATE MODIFIED: 8/31/2017 6:56 PM 145. A newspaper reporter is interviewing you about your experiences in working for a member of Congress. You have indicated you have information about his private life but will not share it. The reporter responds, "Tell me, just between you and me." You share the information and a quote from you on the private life of the member of Congress appears in the newspaper the next day. The reporter was unethical in violating a trust. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas and Personal Introspection KEYWORDS: Bloom's: Evaluate DATE CREATED: 8/31/2017 6:57 PM DATE MODIFIED: 8/31/2017 6:59 PM 146. One of the problems with student loans is the lack of credit checks before they are granted. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas and Personal Introspection KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 6:59 PM DATE MODIFIED: 8/31/2017 7:00 PM 147. Student loans are generally dischargeable debts in bankruptcy. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas and Personal Introspection KEYWORDS: Bloom's: Understand DATE CREATED: 8/31/2017 7:01 PM DATE MODIFIED: 8/31/2017 7:02 PM 148. Adding in additional home repairs for an insurance claim for damage to your home is simply a shifted norm. a. True

b. False Copyright Cengage Learning. Powered by Cognero.

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ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 7:11 PM DATE MODIFIED: 8/31/2017 7:12 PM 149. The failure to disclose that your college degree was withheld because of outstanding parking fines and violations is unethical. a. True

b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 9/1/2017 8:28 PM DATE MODIFIED: 9/1/2017 8:30 PM 150. Taking information from a confidential file accidentally left on your desk is not unethical. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 9/1/2017 8:31 PM DATE MODIFIED: 9/1/2017 8:31 PM 151. Your supervisor has had a calendar with pictures of naked women on the inside panel of his desk for several months. A secretary spotted the calendar and commented to your supervisor that it was not appropriate for an office.

Your supervisor took down the calendar and has asked you to back him up if any complaints are filed. He has asked you to say that you never saw the calendar. It would not be unethical for you to do as your supervisor requests because he has removed the calendar. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

Defining Ethics Bloom's: Analyze 9/1/2017 8:57 PM 9/1/2017 8:58 PM

152. It would not be unethical for you to take client list from one employer to your new employer. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Analyze DATE CREATED: 9/1/2017 8:59 PM DATE MODIFIED: 9/1/2017 9:00 PM 153. Your college of business is sponsoring a case competition. One of your team members is dating a member of another team. Your team member would be able to pull up his team‟s materials and share them with your team to save your team some work. Because they are dating and the case competition is just a game, gaining access presents no ethical issues. a. True

b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Analyze DATE CREATED: 9/1/2017 9:02 PM DATE MODIFIED: 9/12/2017 4:37 PM Multiple Choice 154. A recent survey found that 24% of Americans feel that it is always wrong to speed. In which of the following schools of ethical thought would this 24% fit best? a. Moral relativists

b. Utilitarians c. Ethical egoists d. Virtue ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Evaluate Copyright Cengage Learning. Powered by Cognero.

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DATE CREATED: 8/31/2017 7:27 PM DATE MODIFIED: 9/12/2017 4:38 PM 155. Two male students fired guns off the balcony of Linda‟s apartment. The police were able to see which apartment it was by counting floors and windows. While the police run to Linda‟s apartment, her two friends run out her door and disappear into the crowd of students out and about on a Friday night. When the police question Linda she refuses to tell them who her two friends with the guns were. “I would never rat on a friend,” is Linda‟s statement. One of the police officers tells Linda she could be charged with obstruction of justice. Linda still refuses. Which school of ethical thought would best suit Linda? a. Moral relativists

b. Utilitarians c. Ethical egoist d. Virtue ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Evaluate DATE CREATED: 8/31/2017 7:31 PM DATE MODIFIED: 9/12/2017 4:39 PM 156. Which of the following people is associated with the “Front-Page-of-the-Newspaper” test for ethical dilemmas? a. Warren Buffett

b. Ken Blanchard c. Laura Nash d. John Rawls ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Remember DATE CREATED: 8/31/2017 7:37 PM DATE MODIFIED: 9/12/2017 4:40 PM 157. Which philosopher would start with a tabula rasa and then develop ethical standards? a. Aristotle

b. Plato c. John Rawls d. Robert Nozick ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics Copyright Cengage Learning. Powered by Cognero.

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KEYWORDS: Bloom's: Remember DATE CREATED: 8/31/2017 7:41 PM DATE MODIFIED: 9/12/2017 4:40 PM 158. Which philosopher feels that we all hold a set of rights and that it is the role of government to protect those rights? a. John Stuart Mill

b. Robert Nozick c. John Locke d. Adam Smith ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Remember DATE CREATED: 8/31/2017 7:44 PM DATE MODIFIED: 8/31/2017 7:47 PM 159. Which philosopher developed the “greatest happiness principle”? a. Immanuel Kant

b. Adam Smith c. John Stuart Mill d. Jeremy Bentham ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Remember DATE CREATED: 8/31/2017 7:48 PM DATE MODIFIED: 8/31/2017 7:50 PM 160. Which of the following would be considered a utilitarian? a. Immanuel Kant

b. Robert Nozick c. Jeremy Bentham d. Adam Smith ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Remember DATE CREATED: 8/31/2017 7:50 PM DATE MODIFIED: 8/31/2017 7:52 PM Copyright Cengage Learning. Powered by Cognero.

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161. Which school of ethical thought is found in The Fountainhead and Atlas Shrugged? a. Utilitarianism

b. Divine Command c. Ethical Egoism d. Categorical Imperative ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Remember DATE CREATED: 8/31/2017 7:52 PM DATE MODIFIED: 8/31/2017 8:06 PM 162. Adam Smith fits into which category? a. Utilitarianism

b. Divine Command c. Ethical Egoism d. Categorical Imperative ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Remember DATE CREATED: 8/31/2017 8:07 PM DATE MODIFIED: 8/31/2017 8:08 PM 163. The Declaration of Independence relied on which ethical school of thought? a. Utilitarianism

b. Divine Command c. Ethical Egoism d. Categorical Imperative ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 8/31/2017 8:09 PM DATE MODIFIED: 8/31/2017 8:29 PM 164. What reason did Jimmy Dunne III of Sandler O‟Neill give for dedicating his time and resources to helping the families of his employees who were killed in the World Trade Center attacks?

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a. There was a clause in their employment contract that required it. b. He wanted the attention his generosity would bring. c. His son will also be judged by how Jimmy Dunne responded to his employees‟ families‟ needs. d. None of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 8/31/2017 8:26 PM DATE MODIFIED: 8/31/2017 8:28 PM 165. Which of the following would be consistent with the Divine Command Theory? a. The Ten Commandments

b. The U.S. Declaration of Independence c. Natural Law d. All of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 8/31/2017 8:29 PM DATE MODIFIED: 8/31/2017 8:32 PM 166. Who of the following philosophers subscribe to ethical egoism? a. Ayn Rand

b. Thomas Hobbes c. Adam Smith d. All of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 8/31/2017 8:33 PM DATE MODIFIED: 8/31/2017 8:35 PM 167. The Theory of Moral Sentiments: a. Was written by Ayn Rand.

b. Was written by Thomas Hobbes. c. Was written by Adam Smith.

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d. None of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Remember DATE CREATED: 8/31/2017 8:35 PM DATE MODIFIED: 8/31/2017 8:38 PM 168. Which of the following is an example of utilitarianism? a. Throwing an elderly person from a life raft with too much weight to continue floating in order to save the lives of 15 others. b. Denying hip replacement surgery to an 83-year-old patient because the facilities and physicians are needed for preserving the life of a 35-year-old scientist whose research focuses on a cure for Alzheimer‟s. c. Neither a nor b

d. Both a and b ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 8/31/2017 8:38 PM DATE MODIFIED: 8/31/2017 8:42 PM 169. The goals of Locke and Rawls in developing their theory of ethics: a. Is universality of rules.

b. Is rules that will survive over time. c. Is based on decisions made by those who do not know what role they might fill in an ethical dilemma. d. All of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Analyze DATE CREATED: 8/31/2017 8:44 PM DATE MODIFIED: 8/31/2017 8:47 PM 170. Which philosopher is associated with the Rights Theory? a. John Rawls

b. Robert Nozick c. Adam Smith d. Ayn Rand Copyright Cengage Learning. Powered by Cognero.

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ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Remember DATE CREATED: 8/31/2017 8:49 PM DATE MODIFIED: 8/31/2017 8:53 PM 171. Under the Rights Theory, who holds the responsibility for protection of rights? a. Individuals, under normative standards

b. Government c. Individuals rights are not protected, just defined d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 8/31/2017 8:55 PM DATE MODIFIED: 8/31/2017 8:58 PM 172. Plato and Aristotle have which ethical school of thought in common? a. Moral relativism

b. Justice c. Contractarianism d. Virtue ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 8/31/2017 8:59 PM DATE MODIFIED: 8/31/2017 9:01 PM 173. “I did fudge on some of the numbers in our financial reports, but that kept 6,000 employees from losing their jobs,” a statement by a CFO, is an example of: a. Moral relativism.

b. Rights theory. c. Divine command theory. d. Contractarianism.

ANSWER: POINTS:

a 1

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DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 9/1/2017 2:06 PM DATE MODIFIED: 9/12/2017 4:42 PM 174. The local fire chief of Penbrooke conducted an inspection of a small bakery in Penbrooke and found a violation of the Penbrooke fire code: the bakery did not have a commercial ventilator hood over its stove. The owner of the bakery asked where she could find a ventilator hood and someone to install it. The fire chief referred her to Chimney Specialists, another business in Penbrooke. The chief did not disclose that his son owns Chimney Specialists and that the chief had loaned his son money for starting the business in exchange for a percentage of the profits. a. The fire chief has a conflict of interest.

b. The bakery owner has a conflict of interest. c. There is no conflict unless the chief has fabricated the violation. d. There is no conflict if the son has the only hood ventilator business in Penbrooke.

ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 9/1/2017 2:10 PM DATE MODIFIED: 9/1/2017 2:11 PM 175. A professor asked a student, “Did you have a chance to look at the reading?” The student responded, “Yes.” The professor commended the student for keeping up with assignments in the course and awarded participation points to the student. The student had, in fact, looked at the reading, but he had not actually done the reading. “Hey, he just asked me if I had a chance to look at the reading, and I told the truth.” The student: a. Has not committed an ethical violation.

b. Has given or allowed a false impression. c. Is to be commended for finding a loophole. d. Both a and b ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Analyze DATE CREATED: 9/1/2017 2:12 PM DATE MODIFIED: 9/1/2017 2:14 PM 176. A quid pro quo relates to which category of ethical dilemma? a. Hiding or divulging information

b. Personal decadence c. Conflict of interest Copyright Cengage Learning. Powered by Cognero.

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d. False impressions ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Remember DATE CREATED: 9/1/2017 2:14 PM DATE MODIFIED: 9/1/2017 2:16 PM 177. Winking tolerance is associated with what category of ethical dilemma? a. Hiding or divulging information

b. Condoning unethical actions c. False impression d. Balancing ethical dilemmas ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 9/1/2017 2:16 PM DATE MODIFIED: 9/1/2017 2:18 PM 178. “Smoothing out earnings” can be a comfort name for: a. Cooking the books.

b. Manipulating earnings. c. The perfectly legal practice of timing expenses and income to avoid blips that affect share value. d. All of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Remember DATE CREATED: 9/1/2017 2:19 PM DATE MODIFIED: 9/1/2017 2:20 PM 179. “If you think what we‟re doing now is bad, you should have seen our actions 10 years ago,” is an example of: a. A type of rationalization.

b. Comfort language for current activities and decisions. c. A defense for criminal activity. d. All of the above e. Both a and b ANSWER:

e

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POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 9/1/2017 2:20 PM DATE MODIFIED: 9/1/2017 2:22 PM 180. The Barbara Walters/Andrew Lloyd Webber/Sunset Boulevard examples involves: a. Bribery.

b. Organizational abuse. c. Interpersonal abuse. d. Conflicts of interest.

ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 9/1/2017 2:23 PM DATE MODIFIED: 9/1/2017 2:24 PM 181. Which of the following models includes the question of legality of conduct as part of the ethical analysis? a. Blanchard and Peale

b. Laura Nash c. Peter Drucker d. None of the above ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas and Personal Introspection KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/1/2017 2:24 PM DATE MODIFIED: 9/1/2017 3:30 PM 182. Who of the following follows the Front-Page-of-the-Newspaper test? a. Warren Buffett

b. John Locke c. Robert Nozick d. Peter Drucker ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

False Resolving Ethical Dilemmas and Personal Introspection Bloom's: Remember 9/1/2017 2:28 PM 9/1/2017 2:30 PM

183. Which of the following is not part of the Wall Street Journal model? a. Compliance

b. Consequences c. Justice d. All of the above are part of the model ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas and Personal Introspection KEYWORDS: Bloom's: Remember DATE CREATED: 9/1/2017 2:30 PM DATE MODIFIED: 9/1/2017 2:31 PM 184. Which of the following is similar to Kant‟s categorical imperative? a. The Golden Rule

b. The Divine Command c. Front-Page-of-the-Newspaper test d. All of the above are similar ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas and Personal Introspection KEYWORDS: Bloom's: Understand DATE CREATED: 9/1/2017 2:32 PM DATE MODIFIED: 9/1/2017 2:35 PM 185. Which of the following issues did the events at the University of North Carolina illustrate? a. The slippery slope

b. Conflict of interest c. Violating the law d. All of the above ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Understand Copyright Cengage Learning. Powered by Cognero.

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DATE CREATED: 9/1/2017 2:35 PM DATE MODIFIED: 9/1/2017 2:37 PM 186. What did the Blue Bunny and Volkswagen cases have in common? a. They both involved corrupt CEOs

b. They both involved issues of product design c. They both involved companies under pressure d. They both involved companies headquartered in the United States ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 9/1/2017 2:37 PM DATE MODIFIED: 9/1/2017 2:38 PM 187. A passage in a book reads as follows: “Jane Forrester was the Margaret Thatcher of her state. During her term as governor from 1953-1957, she was able to change her state‟s economy around, resist federal intervention in her state‟s programs, and reverse increasing crime rates. Her nickname was “Firm Forrester,” and her work ethic found her at her desk at 4:00 AM each day. Even when she retired for the evening, she pored over files, briefing books, and history books until midnight, only to begin again at 4:00 AM the following day. “ Which of the following would not be plagiarism of this passage in a student paper on female political leaders? a. Jane Forrester was a state governor who was often compared to Margaret Thatcher for her achievements and also her hard work. During her single term as governor she improved the state‟s economy, halted federal power creep into her state, and reduced crime rates. She slept very little, read as much as she could, and was known to be at her desk each day at 4:00 AM. b. Jane Forrester was a lot like Margaret Thatcher when she was governor of her state from 1953-1957. She was able to improve her state‟s economy, resist federal intervention in her state‟s programs, and reverse increasing crime rates. People called her “Firm Forrester.” She worked hard, starting at her desk at 4:00 AM each day. She went home with files, briefing books, and history books to read until midnight, and then returned to her desk at 4:00 AM the following day. c. People said that Jane Forrester was like a Margaret Thatcher for her state when she was governor from 19531957. She was able to make the sate‟s economy better, stop federal intervention in her state‟s programs, and reduce crime rates. They called her “Firm Forrester,” and she read every night until midnight all kinds of materials and then would be at her desk the next morning at 4:00 AM. d. Jane Forrester was the Margaret Thatcher of her state. During her term as governor from 1953-1957, she was able to change her state‟s economy around, resist federal intervention in her state‟s programs, and reverse increasing crime rates. She was at her desk at 4:00 AM each day. Even when she retired for the evening, she pored over files, briefing books, and history books until midnight, only to begin again at 4:00 AM the following day.

ANSWER: a POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas and Personal Introspection KEYWORDS: Bloom's: Analyze DATE CREATED: 9/1/2017 2:39 PM Copyright Cengage Learning. Powered by Cognero.

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DATE MODIFIED: 9/12/2017 4:43 PM 188. Colton‟s mother said, “Colton, you lied to me this afternoon when you said you were at school.” Colton responded, “Mom, you didn‟t ask me whether I was at school, you asked me if I was able to talk to my friends about the Universal Studios trip.” I talked to them; I just didn‟t talk to them at school. You didn‟t ask the right question.” Which of the following describes Colton‟s response? a. There was no ethical issue because he answered truthfully.

b. Colton was using a rationalization. c. We are not required to volunteer information if the question is not phrased correctly. d. Colton follows a standard of virtue ethics.

ANSWER: b POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Analyze DATE CREATED: 9/1/2017 2:43 PM DATE MODIFIED: 9/1/2017 2:45 PM 189. “The tragedy of the commons” applies in which of the following circumstances? a. The Blue Bunny case

b. Wi-Fi Piggybacking c. Résumé puffing d. VW emissions issues ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics Resolving Ethical Dilemmas and Personal Introspection KEYWORDS: Bloom's: Understand DATE CREATED: 9/1/2017 2:45 PM DATE MODIFIED: 9/1/2017 2:48 PM 190. What were the effects of the Piper High School cheating issues on Piper? a. No effects, that‟s why the parents wanted the teacher‟s decision reversed

b. There was an increase in property values c. Colleges raised questions about Piper students d. Both b and c ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas and Personal Introspection KEYWORDS: Bloom's: Understand DATE CREATED: 9/1/2017 2:48 PM Copyright Cengage Learning. Powered by Cognero.

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DATE MODIFIED: 9/1/2017 2:51 PM 191. What happened to the Piper High School teacher, Ms. Pelton? a. She was fired

b. Her decision was reversed c. She quit her job d. Both a and b e. Both b and c ANSWER: e POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas and Personal Introspection KEYWORDS: Bloom's: Understand DATE CREATED: 9/1/2017 2:51 PM DATE MODIFIED: 9/1/2017 2:53 PM 192. Which of the following is not a step in analyzing ethical dilemmas and case studies? a. Make sure you have all the facts available

b. List the concerns of each person involved in the dilemma c. Develop a list of potential resolutions d. All of the above are steps ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas and Personal Introspection KEYWORDS: Bloom's: Understand DATE CREATED: 9/1/2017 2:53 PM DATE MODIFIED: 9/1/2017 2:55 PM 193. Which category of ethical dilemma does line-cutting fall into? a. Taking things that don't belong to you

b. Taking unfair advantage c. Conflict of interest d. False impression ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas and Personal Introspection KEYWORDS: Bloom's: Understand DATE CREATED: 9/1/2017 2:55 PM DATE MODIFIED: 9/1/2017 2:56 PM Copyright Cengage Learning. Powered by Cognero.

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194. What is the variable in uncovering resume fraud? a. Sometimes the fraud is uncovered and sometimes it is not

b. The amount of time it takes to uncover the fraud c. Whether the fraud relates to degrees d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas and Personal Introspection KEYWORDS: Bloom's: Understand DATE CREATED: 9/1/2017 2:58 PM DATE MODIFIED: 9/1/2017 2:59 PM 195. What category of ethical dilemma applies to the use of car-pool lanes by just one person in a car? a. Balancing ethical dilemmas

b. Giving or allowing false impressions c. Conflicts of interest d. Violating the rules e. Organizational abuse ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 9/1/2017 3:00 PM DATE MODIFIED: 9/12/2017 4:45 PM 196. Which of the following phrases does not signal a potential ethical pitfall? a. “That‟s the way it‟s always been done.”

b. “If we don‟t do it, someone else will.” c. “Your job is to be a team player, not ask questions.” d. All of the above signal an ethical pitfall.

ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Remember DATE CREATED: 9/1/2017 3:04 PM DATE MODIFIED: 9/1/2017 3:06 PM 197. Which of the following is not an element of the Laura Nash‟s model for evaluating ethical dilemmas? a. Is it legal?

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b. How would I feel if I were on the other side of the fence? c. How will my actions be perceived? d. Could I discuss my decision with my boss, CEO, family, friends?

ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Remember DATE CREATED: 9/1/2017 3:06 PM DATE MODIFIED: 9/1/2017 3:08 PM 198. Under the Blanchard/Peale model, which of the following statements is correct? a. If it‟s legal, it‟s ethical.

b. If it‟s illegal, it‟s unethical. c. If it‟s balanced, even if it is illegal, it is ethical. d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas and Personal Introspection KEYWORDS: Bloom's: Remember DATE CREATED: 9/1/2017 3:09 PM DATE MODIFIED: 9/1/2017 3:11 PM 199. Ben Small, a sole practitioner, has just decided to form a law partnership with his lifetime friend, Harvey Steptoe.

They agree to name the firm Steptoe and Small and to split all profits. Ben is also a director for a publicly-traded telecommunications firm, NewVector, Inc. Ben has just learned that Harvey is lead counsel is a lawsuit against NewVector. Ben continues to serve as a board member and participates in sensitive discussions about the lawsuit. Ben does not disclose that Steptoe is his partner. Ben‟s feeling is that he and Harvey are as honest as the day is long and neither would compromise their duties to NewVector and client, respectively. a. Ben has a conflict of interest and must either resign as a director or leave the partnership.

b. The pledge of both Ben and Harvey is sufficient to cover the ethical issues on conflict. c. It is Harvey‟s obligation to take action, not Ben‟s. d. None of the above ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas and Personal Introspection KEYWORDS: Bloom's: Remember DATE CREATED: 9/1/2017 3:12 PM DATE MODIFIED: 9/1/2017 3:14 PM 200. Randy White is the executive director of a non-profit preschool for special needs children. Part of Randy‟s Copyright Cengage Learning. Powered by Cognero.

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responsibilities include fundraising for the preschool. Because of his experience and success in operating specialty preschools, Randy is sought after as a consultant at locations around the country to assist in the start-up and operation of such facilities. Randy does so quite frequently. Randy does not take vacation time for this work, and his consultant fees (which range from $750 - $1500 per day) are kept by him as personal income. Randy uses his secretary at the preschool to book his travel arrangements and prepare his consultant reports and bills for these outside engagements. a. Randy‟s activities are ethical so long as disclosed.

b. Randy is using the time and resources of his employer in an unethical manner. c. Randy‟s activities are ethical whether disclosed or undisclosed. d. There is no conflict of interest in Randy‟s activities.

ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 9/1/2017 3:15 PM DATE MODIFIED: 9/1/2017 3:17 PM 201. Beth Williams is an exercise physiologist who serves as an expert consultant for Women‟s Walkers, Inc., a shoe company specializing in manufacturing walking shoes for women. Dr. Williams is paid an annual consulting fee along with additional fees for drafting reports and making media and public appearances for the company. Executive Woman, a national magazine, has asked Dr. Williams to serve as one of three experts on a panel that will evaluate the full market range of women‟s walking shoes. Dr. Williams will be paid a consulting fee by Executive Woman as well. a. Dr. Williams has a conflict of interest and should decline the Executive Woman offer.

b. Dr. Williams can participate in the Executive Woman panel so long as her affiliation with Women‟s Walkers is disclosed. c. Dr. Williams can participate in the Executive Woman panel if she waives her fee.

d. Dr. Williams is an academic with no conflict of interest and can participate in the Executive Woman panel.

ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 9/1/2017 3:17 PM DATE MODIFIED: 9/1/2017 3:19 PM 202. Which of the following is not a conflict of interest? a. A doctor‟s referral of a patient to an x-ray lab that he owns for a full work-up without disclosing his ownership interest b. A purchasing agent‟s failure to disclose a 22% ownership interest in a supplier that would be chosen anyway

c. A bank officer‟s solicitation of a charitable contribution for a non-profit organization of which he is a member from a customer with a large line of credit up for renewal in 30 days d. All of the above are conflicts of interest ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

False Defining Ethics Bloom's: Apply 9/1/2017 3:19 PM 9/1/2017 3:21 PM

203. Jeff Sanders, head of finance for Components, Inc. has just interviewed Laura Dern, an employee from the finance department of InChip, Components‟ chief competitor. Laura has explained that she has been passed over one too many times for a promotion at InChip and is thus in the job market. As Laura is leaving she whispers to Jeff, “Look, I have no contract at InChip that obligates me in anyway. I can begin immediately. Further, I have been able to obtain copies of our newest computer chip designs. You‟ll have them before InChip even begins production.” a. Jeff should hire Laura on the spot without any worries about ethical breaches since Laura is not under contract. b. Jeff‟s hiring of Laura may constitute an ethical breach, but would not constitute illegal conduct.

c. Jeff should not hire Laura, and must analyze the issue of whether to disclose Laura‟s conduct to InChip. d. Jeff should not hire Laura and need not worry about Laura‟s conduct and its impact on InChip.

ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 9/1/2017 3:22 PM DATE MODIFIED: 9/1/2017 3:24 PM 204. An application for graduate school admission at Arizona State University includes the following request for information: Please list all institutions attended since graduation from high school.

Marie Davis, a returning student, is applying for admissions to the Masters in Architecture program. Marie attended the University of Arizona for one semester in 1976. Marie had a substance abuse problem and did not attend many of her classes. She left the University of Arizona before classes ended that semester. She did not take her final exams and earned 15 credit hours of “E” for that semester. After 8 years, the policy of the University of Arizona is to expunge the records of non-matriculating students. Marie‟s record was expunged in December 1994. a. Marie need not disclose her attendance at the University of Arizona.

b. Marie should disclose her attendance at the University of Arizona. c. Since Marie did not matriculate according to the University, she did not attend the University of Arizona. d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas and Personal Introspection KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/1/2017 3:25 PM DATE MODIFIED: 9/1/2017 3:28 PM 205. A radar detector: Copyright Cengage Learning. Powered by Cognero.

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a. If purchased legally, is not an unethical device. b. If used only in those states in which they are permitted is an ethical device. c. Is a legal and ethical tool for circumventing speed limits. d. None of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas and Personal Introspection KEYWORDS: Bloom's: Apply DATE CREATED: 9/1/2017 3:31 PM DATE MODIFIED: 9/1/2017 3:33 PM 206. A professor for one of your courses has assigned reading materials from various publications. He tells you that the materials are on reserve and that each student should go and copy the materials individually. He notes that for him to copy the materials for students and then sell them or distribute them would be a violation of copyright law. The professor's conduct: a. Is unethical and violates copyright law as well.

b. Is something everyone does and is accepted behavior. c. Does not really harm anyone. d. Is acceptable in an academic setting.

ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 9/1/2017 3:33 PM DATE MODIFIED: 9/1/2017 3:35 PM 207. You had quite a night last night of partying. Because of excessive drinking, you are unable to get to work today.

When you call your supervisor you: a. Should just say you have the flu.

b. Should just say you are sick. c. Should disclose the prior night's activity. d. None of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 9/1/2017 3:35 PM DATE MODIFIED: 9/1/2017 3:37 PM 208. Professor Reba McGintry is the head of the Student Conduct Board. Charges have been brought against three Copyright Cengage Learning. Powered by Cognero.

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students who are also members of the university basketball team. The charges are based on the criminal charges brought by the local district attorney against the three men for sexual assault. Professor McGintry‟s husband was one of the staff attorneys in the DA‟s office who made the decision to go forward with the prosecution. Professor McGintry: a. Can proceed with the hearing because the two matters are unrelated.

b. Can proceed with the hearing because of marital privilege. c. Must excuse herself from the students‟ hearing because of a conflict of interest. d. Has no conflict, but her husband does. e. None of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 9/1/2017 3:37 PM DATE MODIFIED: 9/1/2017 3:39 PM 209. Medical Purchasing Agents (MPC) is a company that represents groups of hospitals as their agents for purchasing medical supplies. MPC is able to obtain discounts for the hospital group because of their sheer volume needs when they are grouped together. MPC‟s CEO, CFO and general counsel own 51% of the stock of a company called Medi-Pump.

Medi-Pump is the sole supplier to the hospitals for feeding pumps, IV pumps and other forms of hi-tech medical pumps and supplies. MPC has negotiated a low-cost supply contract from Medi-Pump to the hospitals. MPC: a. Has served its customers well with the Medi-Pump contract.

b. Has a conflict because of its ownership of Medi-Pump. c. Cannot have a conflict so long as the Medi-Pump price is lowest. d. Cannot have a conflict because it represents groups of hospitals. e. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 9/1/2017 3:39 PM DATE MODIFIED: 9/1/2017 3:41 PM 210. Mary Pickford is an analyst for Munford Stanley, an investment banker. She has touted the stock, an initial primary offering (IPO), of an obscure biotech firm as a “must buy.” Munford Stanley is the underwriter for the IPO. Pickford: a. Does not have a conflict of interest.

b. Has a conflict of interest, but it is acceptable in IPOs. c. Has a conflict of interest that must be disclosed to all purchasers. d. Does not have a conflict of interest, but Munford Stanley does. e. None of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

False Defining Ethics Bloom's: Apply 9/1/2017 3:42 PM 9/1/2017 3:43 PM

211. Mary Pickford is an analyst for Munford Stanley, an investment banker. She has touted the stock, an initial primary offering (IPO), of an obscure biotech firm as a “must buy.” Suppose that Pickford already owns an interest in the biotech firm, but Munford Stanley is not the underwriter. Pickford: a. Does not have a conflict of interest.

b. Has a conflict of interest, but it is acceptable in IPOs. c. Has a conflict of interest that must be disclosed to all purchasers. d. Does not have a conflict of interest, but Munford Stanley does. e. None of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 9/1/2017 3:44 PM DATE MODIFIED: 9/1/2017 3:46 PM 212. James Dodgsen is a student in a graduate course in business. The professor in the course has given Dodgsen and his classmates a surprise quiz in class. Dodgsen did not do the reading for class that day because he had been grading papers as part of his TA position. He has been prepared for every other class that semester. As he glances as the quiz questions, he realizes that he does not know any of the answers. However, he sees that Jane Frampton, the student who sits next to him, is well prepared and answering the questions with great ease. He can see her answers because of her large, block-style printing. Dodgsen copies her answers. a. Dodgsen is justified in using the answers because the pop quiz was unfair.

b. Dodgsen is justified in using the answers because he was fulfilling his TA responsibilities instead of preparing for class.

c. Dodgsen is justified in using the answers if he intends to read the material eventually. d. Dodgsen has been dishonest. e. None of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas and Personal Introspection KEYWORDS: Bloom's: Analyze DATE CREATED: 9/1/2017 3:48 PM DATE MODIFIED: 9/1/2017 3:51 PM 213. Which of the following is not a question in the Laura Nash model for resolution of ethical dilemmas? a. Could I discuss this issue with the parties affected?

b. What are my intentions in taking this action? c. Could I discuss this action with my family and friends?

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d. Is it legal? e. All of the above are part of the Nash model.

ANSWER: d POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas and Personal Introspection KEYWORDS: Bloom's: Remember DATE CREATED: 9/1/2017 3:52 PM DATE MODIFIED: 9/12/2017 4:46 PM 214. Into which of the following categories do patent and copyright infringement fall? a. Conflict of interest

b. Balancing ethical dilemmas c. Organizational abuse d. Interpersonal abuse e. Taking things that don‟t belong to you ANSWER: e POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 9/1/2017 3:57 PM DATE MODIFIED: 9/12/2017 4:46 PM 215. The use of the HOV or car pool lane has shifted with pregnant women, toddlers in car seats, and use of the lane if no one is in it even during prohibited hours. Which of the following best describes the evolution of the HOV or car pool lane? a. The norm has shifted

b. The purpose of the rule is not clear, so there is no ethical issue on interpretations by individual drivers on use c. The car pool lane is an arbitrary regulation that can be disregarded d. Both b and c ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas and Personal Introspection KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/1/2017 4:01 PM DATE MODIFIED: 9/12/2017 4:47 PM 216. Jane Smithson‟s 13-year-old son has an essay due in school tomorrow. Her son has been ill and unable to finish the essay. Jane felt it best to let her son go to sleep so that he could return to school tomorrow. Jane writes the essay for her son. Jane has concluded her writing the essay was justified and necessary. Into which school of ethical theories would Jane fall? a. Virtue ethics Copyright Cengage Learning. Powered by Cognero.

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b. Categorical imperative and Kant c. Moral relativism d. Divine command ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Analyze DATE CREATED: 9/1/2017 4:04 PM DATE MODIFIED: 9/1/2017 4:07 PM 217. When answering the question, “What did you do in the past year that bothers you?”, most people respond: a. Nothing.

b. With an example of an ethical issue. c. With an example of violation of the law. d. With an explanation that they do not understand the question.

ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Analyze DATE CREATED: 9/1/2017 4:07 PM DATE MODIFIED: 9/1/2017 4:09 PM 218. Which of the following would be a breach of trust and ethics? a. Sharing a new product idea with a prospective employer

b. Leaving your current employment for a higher paying job c. Leaving your current employment for a job with more flexibility d. Taking the skills you have learned at a current job to a new job e. All of the above are breaches of trust and ethics ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 9/1/2017 4:09 PM DATE MODIFIED: 9/1/2017 4:11 PM 219. An ad contains the following: “Restaurant Critic, Jose Winfrey, on Mama Leone‟s Italian Eatery, „Mama Leone‟s is simply the best. It is a surprising new entrant into the competitive Italian bistro market and it is a mighty one.‟” Jose Winfrey is the cousin of the owner of Mama Leone‟s and knows restaurants, but is not a critic for any publication or other media outlet. The ad: Copyright Cengage Learning. Powered by Cognero.

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a. Creates a false impression. b. Raises no ethical questions. c. Is legal and ethical because it doesn‟t state where he is a critic. d. Both b and c e. None of the above ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 9/1/2017 4:12 PM DATE MODIFIED: 9/1/2017 4:14 PM 220. Stephen Ambrose, a popular historian with many books to his credit, admitted that some segments of one of his recent books had language taken from the books of other historians that was not in quotes. Mr. Ambrose did footnote the work of authors he relied upon in doing his book. a. The work of an author is protected by copyright laws.

b. The use of quotes without attribution is not a violation of the law. c. The use of the material is fair use and need not be footnoted. d. Both b and c e. None of the above ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas and Personal Introspection KEYWORDS: Bloom's: Understand DATE CREATED: 9/1/2017 4:15 PM DATE MODIFIED: 9/1/2017 4:17 PM 221. Which of the following ethical theorists subscribes to self-interest? a. Ayn Rand

b. Adam Smith c. Thomas Hobbes d. a and c only e. All of the above ANSWER: e POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 9/1/2017 4:17 PM DATE MODIFIED: 9/1/2017 4:20 PM Copyright Cengage Learning. Powered by Cognero.

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222. The contractarians are best represented by: a. Immanuel Kant.

b. Robert Nozick. c. Thomas Hobbes. d. John Rawls. e. None of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 9/1/2017 4:20 PM DATE MODIFIED: 9/1/2017 4:22 PM 223. Which best describes the Categorical Imperative? a. Act in one‟s self-interest

b. All rights exist by Divine Command c. Circumstantial ethics d. Behave in a manner that you are willing to have imposed on the whole e. None of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 9/1/2017 4:23 PM DATE MODIFIED: 9/1/2017 4:25 PM 224. Which is Warren Buffett‟s test for ethics? a. The Categorical Imperative

b. The Front-Page-of-the-Newspaper test c. The Wall Street Journal model d. Ethical Egoism e. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 9/1/2017 4:25 PM DATE MODIFIED: 9/1/2017 4:27 PM Copyright Cengage Learning. Powered by Cognero.

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225. There are no laws that cover cutting in line. However, those who do take cuts in line are viewed with disdain by others because: a. Case precedent prohibits it.

b. Normative standards govern this behavior. c. There are still criminal penalties for cutting in line. d. The theory of rights covers the issue.

ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/1/2017 4:29 PM DATE MODIFIED: 9/1/2017 4:31 PM 226. Customer A has $250 in his account. Six checks, totaling $325, have come in for payment. One check is for $257.00, with the remaining five checks making up the difference to the $325 total. First Bank pays the five smallest checks first, honors the $257.00 with overdraft protection, and charges the customer one overdraft fee. Second Third Bank pays the largest ($257) check first, pays the five remaining smaller checks with overdraft protection, and then charges the customer five overdraft fees. Which of the following is correct? a. If this type of charge is legal; it is ethical.

b. This type of charge is an example of taking unfair advantage. c. This type of charge is a conflict of interest. d. This type of charge is not an ethical issue.

ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/1/2017 4:32 PM DATE MODIFIED: 9/1/2017 4:34 PM 227. The Graduate Management Admissions Council announced that it was canceling the GMAT scores of 84 applicants and students. The Council found that the students were active users of a now shut-down website, Scoretop.com, a site with origins in China that posted live questions from the GMAT. The site had 5,000 to 6,000 subscribers who paid $30 per month for access, but the Council is only canceling the scores of those against whom it feels it has an airtight case. Two of the students whose scores were canceled are currently enrolled at the University of Chicago‟s MBA program and another has already graduated from Stanford‟s MBA program. Twelve of the students whose scores were canceled had posted questions on Scoretop.com and the remaining 72 allowed the site to post their testimonials that they had seen the Scoretop.com questions on their GMAT. Ten of the 72 students had applied to Stanford but were denied admission. Which ethical category does the conduct of the students who posted live questions fit into? a. Taking something that does not belong to you

b. Balancing ethical dilemmas c. Interpersonal abuse d. Organizational abuse ANSWER: POINTS:

a 1

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DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/1/2017 4:34 PM DATE MODIFIED: 9/1/2017 4:39 PM 228. The Graduate Management Admissions Council announced that it would begin using a “palm vein” scan to eliminate proxy test taking after the FBI broke up a ring of six test takers who had taken the GMAT for 590 applicants, for a price of $3,000 each. Which ethical category does the conduct of the proxy test takers fit into? a. Taking something that does not belong to you

b. Giving or allowing false impression c. Balancing ethical dilemmas d. Organizational abuse ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/1/2017 4:39 PM DATE MODIFIED: 9/1/2017 4:42 PM 229. Which of the following is correct about the University of North Carolina special admits program? a. It was a program that was used for admitting students beyond just student-athletes

b. It violated NCAA rules c. Some involved in the early days of the program were concerned about its effect d. All of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/1/2017 4:43 PM DATE MODIFIED: 9/12/2017 4:48 PM 230. The former CEO of Countrywide Mortgage (now a part of Bank of America), offered favorable loans to members of Congress, Countrywide government regulators, and members of the board and officers of Fannie Mae, the quasigovernment agency that bought Countrywide‟s mortgages in the secondary market. The loans were jumbo loans at below-market rates. Countrywide sold 90% of its mortgages to Fannie Mae. Congress was responsible for the creation, funding, and policies of Fannie Mae. The members of Congress who received the Fannie Mae favorable loans sat on House and Senate Banking Committees. Which of the following categories of ethical breaches, if any, applies to this practice? a. Taking things that don‟t belong to you

b. Taking unfair advantage c. Conflict of interest Copyright Cengage Learning. Powered by Cognero.

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d. All of the above apply ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Analyze DATE CREATED: 9/1/2017 4:46 PM DATE MODIFIED: 9/1/2017 4:49 PM 231. Former NBA referee Tim Donaghy entered a guilty plea to two federal felony charges in connection with his bets and tips to others on NBA games. Mr. Donaghy picked teams to win in games he was scheduled to referee. Experts have said that Donaghy committed the equivalent of insider trading on Wall Street by providing outsiders with information about games, players, and referees. He got $5,000 from his tippees for correct picks. Apart from the criminal charges, what category of ethical breach does Mr. Donaghy‟s conduct fall into? a. Taking what does not belong to you

b. Conflict of interest c. Committing interpersonal abuse d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Analyze DATE CREATED: 9/1/2017 4:50 PM DATE MODIFIED: 9/1/2017 4:52 PM 232. Priscilla Ceballos‟s 6-year-old daughter is a fan of Hannah Montana and wanted to go to a Hannah Montana concert. A radio station was offering two tickets to the Hannah Montana concert for the child who wrote the winning essay. Ms. Ceballos and her daughter wrote an essay that detailed an account of their husband/father dying in the war on Iraq. The problem was that their husband/father was not in Iraq and certainly not dead. When the fake essay was uncovered, Ms. Ceballos said, “We did the essay, and that‟s what we did to win. . . We did whatever we could to win.”

The company revoked the prize and the award of the tickets.

Suppose the contest rules did not spell out that the essay had to be based on true and verifiable facts. What could the radio station rely on in revoking the prize and still have public support for its decision? a. The Blanchard/Peale test for ethical dilemmas

b. Normative standards c. Stakeholder analysis d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas and Personal Introspection KEYWORDS: Bloom's: Analyze Copyright Cengage Learning. Powered by Cognero.

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DATE CREATED: 9/1/2017 4:53 PM DATE MODIFIED: 9/1/2017 4:56 PM 233. LeAnn Rimes, a country western singer, signed a contract at age 12 with Curb Records. Curb Records is owned by Mike Curb, a long-standing presence in the music industry who began his career with a group known as The Mike Curb Congregation. Under the terms of that contract as it originally existed, and as it was signed by Ms. Rimes‟ guardians, Ms. Rimes would have been 35 before she had delivered the 21 albums required under the agreement. “At 12, I ­didn‟t understand everything in my contract. All I know is that I really wanted to sing,” was the explanation Ms. Rimes offered when she later testified before the California Senate Select Committee on the Entertainment Industry looking into the labor issues surrounding long-term album requirements contracts. Which of the following would apply to Curb Records‟ conduct with regard to Ms. Rimes? a. Taking unfair advantage

b. Conflict of interest c. There is no ethical dilemma because Ms. Rimes‟ guardians were involved d. Taking something that does not belong to you ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas and Personal Introspection KEYWORDS: Bloom's: Analyze DATE CREATED: 9/1/2017 4:57 PM DATE MODIFIED: 9/1/2017 4:59 PM 234. Minnesota has a statewide smoking ban for public places. However, the state statute includes an exemption that permits smoking by actors in theatrical performances. In order to take advantage of the exemption, the Old Clover Inn, located in Vadnais Heights, Minnesota, has begun holding theater night, every night. The Old Clover Inn has placed its pool tables in an area that is framed with theater curtains and refers to the pool players as its actors. The Inn also has a stage for its cribbage players who sit and play cribbage and smoke.

The Inn calls the nightly production, “As the Clover Turned,” and it distributes a playbill that describes the nightly plays as involving “numerous uncredited actors in the role of bar patrons.” The Inn distributes buttons for $1 to patrons. The buttons read, “Act Now!” The Minnesota Health Department has warned the Inn that what it is doing is an attempt to circumvent the law. Which statement best describes the Old Clover Inn‟s approach to ethics? a. Old Clover Inn acts in a socially responsible manner, going above the requirements of the law in running a business. b. Old Clover Inn has found a perfectly legal way of doing business and compliance with the law is one standard for ethics. c. Old Clover Inn believes that ethics requires doing more than the law requires and less than the law allows.

d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas and Personal Introspection KEYWORDS: Bloom's: Analyze DATE CREATED: 9/1/2017 5:00 PM DATE MODIFIED: 9/1/2017 5:02 PM Copyright Cengage Learning. Powered by Cognero.

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235. A group of Wachovia (now part of Wells Fargo) customers filed a class action lawsuit against Wachovia Bank because fraudulent telemarketers had taken money from their accounts and that the telemarketers did so with the knowledge of bank executives who were aware of the fraud but did nothing to stop it. Banks executives insisted that they knew nothing about the thefts. However, internal e-mails released during discovery in the case showed that executives were discussing the frauds and providing warnings.

“YIKES!!!!”

“DOUBLE YIKES!!!!”

“There is more, but nothing more that I want to put into a note.”

Warning from a Wachovia bank executive to colleagues that the bank had received 4,500 complaints of fraud in two months from customers who had been fleeced of $400 million by marketing firms who paid the bank large fees for access and on returned checks.

“We are making a ton of money from them.”

What test for resolving ethical dilemmas would have helped the executives at Wachovia reach a better decision as they debated the issue on their e-mails? a. “I was just following orders.”

b. “This doesn‟t really hurt anyone.” c. The Front-Page-of-the-Newspaper Test d. “It‟s a gray area.”

ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas and Personal Introspection KEYWORDS: Bloom's: Remember DATE CREATED: 9/1/2017 5:04 PM DATE MODIFIED: 9/1/2017 5:08 PM 236. The UCLA Medical Center is facing sanctions from California‟s Department of Health because several of its employees viewed records of famous patients, patients with whom the employees had no contact or care responsibilities.

The employees viewed the records of, among others, Maria Shriver (wife of Governor Arnold Schwarzenegger), the late Farrah Fawcett, and Britney Spears.

The unauthorized access to the records was uncovered when the story of the late Ms. Fawcett‟s recurrence of cancer was published in The National Enquirer before Ms. Fawcett had disclosed her health condition to family or friends. Ms. Fawcett‟s lawyers then notified the hospital of the only possible source of the information.

Which category of an ethical breach applies to the conduct of the hospital employees? a. Committing acts of personal decadence

b. Conflict of interest c. Divulging information d. Balancing ethical dilemmas ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas and Personal Introspection KEYWORDS: Bloom's: Remember DATE CREATED: 9/1/2017 5:09 PM Copyright Cengage Learning. Powered by Cognero.

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DATE MODIFIED: 9/1/2017 5:12 PM 237. Which model for ethical decision analysis requires managers to seek additional perspectives on ethical issues? a. Laura Nash model

b. The Wall Street Journal model c. The Blanchard and Peale Model d. Both a and c e. a, b, and c ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas and Personal Introspection KEYWORDS: Bloom's: Remember DATE CREATED: 9/1/2017 5:13 PM DATE MODIFIED: 9/1/2017 5:16 PM Matt Walsh, a golf pro from Hawaii, was a video operator for the New England Patriots from 1999-2002. Walsh says that he taped the Patriots‟ opponents‟ signals, information that he says was then used by the Patriots when they next met that team. If you know the signals, then you know what defense has planned. Offense is then a tad easier.

Some quotes emerged from the situation: From Patriots‟ coach, Bill Belichick, “I misinterpreted the rules.”

From Jacksonville Coach Jack Del Rio on the videotaping, “I think all teams do that. That‟s been going on forever.”

From Matt Walsh, “I had always been a big Patriots fan. I wasn‟t going to question what they wanted me to do.”

From Pennsylvania Senator Arlen Specter, “If you can cheat in the NFL, you can cheat in college, you can cheat in high school, you can cheat on your grade-school math test. There‟s no limit as to what you can do. I think they owe the public a lot more candor and a lot more credibility.”

238. What rationalization is the Jacksonville coach applying? a. "Everybody does it."

b. "That‟s the way it has always been done." c. "If we don‟t do it. . ." d. All of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Patriots TOPICS: Resolving Ethical Dilemmas and Personal Introspection KEYWORDS: Bloom's: Remember DATE CREATED: 9/1/2017 5:17 PM DATE MODIFIED: 9/1/2017 5:25 PM 239. What rationalization did Matt Walsh follow? a. "I was just following orders."

b. "Everybody does it." c. "That‟s the way it has always been done."

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d. All of the above ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Patriots TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 9/1/2017 5:27 PM DATE MODIFIED: 9/1/2017 5:35 PM 240. What is Senator Specter concerned about? a. The slippery slope

b. That the NFL is unregulated c. That there is no need for concern d. That no crime was committed ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Patriots TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 9/1/2017 5:35 PM DATE MODIFIED: 9/1/2017 5:37 PM 241. Into which group would those who falsify rèsumés fall? a. Moral relativists

b. Utilitarians c. Ethical egoists d. Virtue ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas and Personal Introspection KEYWORDS: Bloom's: Apply DATE CREATED: 9/1/2017 5:38 PM DATE MODIFIED: 9/1/2017 5:40 PM 242. Which of the following categories does fraternity hazing fit into? a. Interpersonal abuse

b. Organizational abuse c. Conflict of interest d. None of the above Copyright Cengage Learning. Powered by Cognero.

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ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 9/1/2017 5:41 PM DATE MODIFIED: 9/1/2017 5:43 PM 243. What rationalization do students offer for cheating? a. They were under tremendous pressure for grade achievement.

b. They were high achievers to whom test scores were irrelevant. c. They were helping each other. d. The Warren Buffett rationalization.

ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics Resolving Ethical Dilemmas and Personal Introspection KEYWORDS: Bloom's: Apply DATE CREATED: 9/1/2017 5:44 PM DATE MODIFIED: 9/1/2017 5:48 PM 244. What rationalization do most speeders use to justify driving in excess of the speed limit? a. I'm a better driver.

b. That's what they do in California. c. Everybody speeds. d. That speed limits are arbitrary.

ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 9/1/2017 5:49 PM DATE MODIFIED: 9/1/2017 5:52 PM 245. Which category of ethical dilemma applies to dog walkers who do not scoop up after their pets? a. Conflict of interest

b. Not following the rules c. Balancing ethical dilemmas d. Saying things you know are not true ANSWER: POINTS:

b 1

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DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 9/1/2017 5:52 PM DATE MODIFIED: 9/1/2017 5:55 PM 246. Pam purchased a quesadilla at Taco Bell for lunch. She also asked for a water cup, which is free and to be used to get water at the soda fountain. Pam used the water cup to get Pepsi. Which of the following is correct? a. Pam has simply taken advantage of a loophole with no supervision over water cup use

b. Pam has taken something that does not belong to her c. Pam has done nothing wrong unless she was warned not to fill the water cup with soda d. Both a and c ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 9/1/2017 5:55 PM DATE MODIFIED: 9/1/2017 5:57 PM 247. Megyn Kelly, a Fox News Anchor, is interviewing a physician about the impact of Obamacare. The physician is a partner with Ms. Kelly's ex-husband. a. Ms. Kelly need not disclose the relationship because she is now divorced.

b. Ms. Kelly need not disclose the relationship unless she also interviews her ex-husband. c. Ms. Kelly needs to disclose the relationship. d. Ms. Kelly need not disclose the relationship because she is an anchor, not a reporter.

ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 9/1/2017 5:57 PM DATE MODIFIED: 9/1/2017 5:59 PM 248. What did the inspection reports of Blue Bell Ice Cream not indicate? a. That there was Listeria in the plants

b. That there was recall creep c. That there was damaged equipment d. Both a and b ANSWER: POINTS: DIFFICULTY:

c 1 Moderate

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QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Remember DATE CREATED: 9/1/2017 6:01 PM DATE MODIFIED: 9/1/2017 6:03 PM 249. Ralph has used all but one day of his personal leave time (PLT). His company's policy is that PLT can be used for illness, family needs, or medical appointments. Ralph has used his PLT days when he was hung over or when a friend wanted to spend the day with him. Ralph's grandmother, to whom he is very close, passed away, and he would like to go to her funeral, but it will take a day of travel, a day for the funeral, and a day to return. Ralph has asked his supervisor for additional time off in order to go to the funeral. Which of the following is correct? a. If Ralph were an employer, he would see his request differently.

b. Companies need to provide additional days when employees request them for a good reason. c. Ralph should receive the extra days because everybody uses PLT for sketchy reasons. d. Giving Ralph the extra days does not affect other employees.

ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas and Personal Introspection KEYWORDS: Bloom's: Understand DATE CREATED: 9/1/2017 6:04 PM DATE MODIFIED: 9/1/2017 6:06 PM 250. Lance Armstrong says that he looked up the meaning of the word "cheat" in the dictionary when he was using performance-enhancing drugs (PEDs). The dictionary defined cheating as "using an unfair advantage in a competition."

Mr. Armstrong believed that PEDs were used by his competitors and felt it was ethical to continue using them. Which rationalization did Mr. Armstrong use? a. It's a gray area.

b. It could be worse. c. Everyone does it. d. I deserve this.

ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 9/1/2017 6:06 PM DATE MODIFIED: 9/1/2017 6:08 PM 251. “We all don‟t share the same ethics,” is an example of: a. Utilitarianism

b. Justice and rights c. Rationalization d. The slippery slope Copyright Cengage Learning. Powered by Cognero.

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ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 9/1/2017 6:08 PM DATE MODIFIED: 9/1/2017 6:10 PM 252. Edward Snowden released classified documents that were stored at his employers' archives. He works for a government agency. He released them because he felt U.S. citizens should know what kind of information their government was keeping about them. Which of the following is a correct statement? a. Snowden has done nothing wrong.

b. Snowden has taken something that did not belong to him. c. Snowden is justified if the government was acting unfairly. d. Snowden follows the philosophical school of thought of the newspaper test.

ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 9/1/2017 6:11 PM DATE MODIFIED: 9/1/2017 6:12 PM 253. Randy White is the executive director of a non-profit preschool for special needs children. Part of Randy‟s responsibilities include fundraising for the preschool. Because of his experience and success in operating specialty preschools, Randy is sought after as a consultant at locations around the country to assist in the start-up and operation of such facilities. Randy does so quite frequently. Randy does not take vacation time for this work, and his consultant fees (which range from $750 - $1500 per day) are kept by him as personal income. Randy uses his secretary at the preschool to book his travel arrangements and prepare his consultant reports and bills for these outside engagements. a. Randy‟s activities are ethical so long as disclosed.

b. Randy is using the time and resources of his employer in an unethical manner. c. Randy‟s activities are ethical whether disclosed or undisclosed. d. There is no conflict of interest in Randy‟s activities.

ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 9/1/2017 6:13 PM DATE MODIFIED: 9/1/2017 6:15 PM 254. The standard of a fair wage was used as an example to illustrate: a. The need for the same wage to be paid universally.

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b. Contractarianism. c. Virtue ethics. d. Kant and the Categorical Imperative.

ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 9/1/2017 6:15 PM DATE MODIFIED: 9/1/2017 6:17 PM 255. If you have as a standard that you will always tell the truth, regardless of pressures or cost, which ethical philosophy are you following? a. Moral relativism

b. Rights and Justice c. Utilitarianism d. Virtue ethics ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 9/1/2017 6:18 PM DATE MODIFIED: 9/12/2017 4:50 PM 256. Rick Hechtor worked for Toyota on the development of one of its models, the Corolla. Rick left Toyota in 2005 and became an independent automotive engineering consultant. When the issues with the alleged sudden acceleration in some Toyota models emerged, Rick was contacted by several lawyers who were representing Corolla owners who had been injured in their Corollas when they said their cars accelerated suddenly. Rick has agreed to serve as an expert witness for these plaintiffs in their suits against Toyota. a. Rick has a conflict of interest.

b. Rick cannot serve as an expert witness against Toyota. c. Rick can serve as an expert witness as long as he discloses his previous employment at Toyota. d. Both a and b e. Both a and c ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Analyze DATE CREATED: 9/1/2017 6:23 PM DATE MODIFIED: 9/1/2017 6:25 PM Copyright Cengage Learning. Powered by Cognero.

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257. In a discussion about his company‟s decision on whether to sell aircraft to Iran, a known sponsor of terrorist groups, the CEO said, “I just can‟t see that the newspapers will paint this as a good thing.” What ethical test is the CEO applying in making the decision? a. Aristotelian, or virtue ethics

b. Warren Buffett‟s test c. Moral relativism d. A credo ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas and Personal Introspection KEYWORDS: Bloom's: Understand DATE CREATED: 9/1/2017 6:26 PM DATE MODIFIED: 9/1/2017 6:28 PM 258. The CEO of a struggling company explained to his board the need for terminating employees in order to reduce cost, and added, “I can lay off 2,000 employees now or have all 12,000 of them lose their jobs when the company has to declare bankruptcy.” Which of the following school of ethical thought is the CEO following? a. Normative standards

b. Divine Command theory c. Bentham and Mill Utilitarianism d. Rights theory ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 9/1/2017 6:29 PM DATE MODIFIED: 9/12/2017 4:51 PM Grace Jenkins has a small counter in a beauty shop where she sells designer-like bags. Grace says, “They are not the real thing. They are not priced like the real thing. My customers know that, but these bags make people happy because that have a feeling of living like the rich and famous. I sell happiness, not bags with trademarks.”

259. Which of the following ethical categories would apply to what Grace is doing? a. Giving or allowing false impression

b. Engaging in conflict of interest c. Violating the rules d. Both a and c ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Grace TOPICS: Defining Ethics Copyright Cengage Learning. Powered by Cognero.

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KEYWORDS: Bloom's: Apply DATE CREATED: 9/1/2017 6:32 PM DATE MODIFIED: 9/1/2017 6:35 PM 260. What do Grace‟s statements illustrate? a. Utilitarianism

b. Rationalization c. Virtue ethics d. Rights and justice ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False PREFACE NAME: Grace TOPICS: Defining Ethics KEYWORDS: Bloom's: Analyze DATE CREATED: 9/1/2017 6:36 PM DATE MODIFIED: 9/1/2017 6:39 PM 261. The city advertised in banners at the airport, “Pay for your parking in the convenient adjacent garage in advance and get a 40% discount.” The rate per day is $25 for 24 hours. If you pay at the exit gate, you are charged $2.00 per hour, but charged the daily rate once you go over 12 hours. If you sign up for prepaid parking, you are charged for each day your car is in the garage; there is no hourly prorate. For example, if you parked in the garage from April 18 beginning at 8 PM until April 20 at 1:00 AM, you would be charged $35 at the gate. If you prepaid, you would be charged $45 (3 X $25 X .60). Many travelers signed up and paid for their parking in advance, believing it was cheaper. Unless they were aware of the hourly rate available at the parking exit, they would not understand the pricing differential. Which of the following categories applies to this situation? a. Giving or allowing false impression

b. Conflict of interest c. Taking unfair advantage d. Both a and c e. All of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Analyze DATE CREATED: 9/1/2017 6:39 PM DATE MODIFIED: 9/12/2017 4:52 PM 262. What is the difference between a code of ethics and a credo? a. There is no difference – they both have the same purpose of guiding our conduct.

b. A code of ethics is specific to individuals. c. A credo is developed on a personal level. d. A code of ethics does not apply to individuals.

ANSWER:

c

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POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 2:00 PM DATE MODIFIED: 9/2/2017 2:03 PM Essay 263. Explain what ethics is. Give a definition here.

ANSWER: Ethics consists of the unwritten rules we have developed for our interaction with each other.

POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Remember DATE CREATED: 9/1/2017 6:43 PM DATE MODIFIED: 9/1/2017 6:45 PM 264. List and briefly describe the schools of ethical thought.

ANSWER:  Divine Command Theory: ethical standards are based upon religious beliefs.

      

Ethical Egoism Theory: We all act in our own self-interest and limit our judgments to our own conduct, not the conduct of others.

Utilitarian Theory: “Greatest happiness principle,” or doing the most good for the most people.

Categorical Imperative and Immanuel Kant: One ought only to act such that the principle of one‟s act could become a universal law of human action in a world in which one would hope to live.

Contractarians and Justice: Putting ethical standards in place by a social contract. Rational thinking people develop a set of rules for everyone.

Rights Theory: Everyone has a set of rights and it is the role of government to enforce those rights.

Moral Relativists: Time-and-place ethics. Making ethical choices based on the circumstances.

Plato and Aristotle: Develop virtues and determine conduct by those virtues.

POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Remember DATE CREATED: 9/1/2017 6:45 PM DATE MODIFIED: 9/1/2017 6:48 PM 265. List the categories of ethical dilemmas.

ANSWER:  Taking things that don‟t belong to you



Saying things you know are not true

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         

Giving or allowing false impressions Buying influence or engaging in conflicts of interest Hiding or divulging information Taking unfair advantage Committing acts of personal decadence Perpetrating interpersonal abuse Permitting organizational abuse Violating rules Condoning unethical conduct Balancing ethical dilemmas

POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Remember DATE CREATED: 9/1/2017 6:49 PM DATE MODIFIED: 9/1/2017 6:52 PM 266. Give the ways we avoid facing ethical dilemmas.

ANSWER: Give it a different label: Copyright infringement vs. peer-to-peer file sharing Smoothing earnings vs. cooking the books Lying vs. earnings management Rationalizations: (1) (2) (3) (4) (5) (6) (7) (8) (9)

Everybody else does it If we don‟t do it, someone else will That‟s the way it has always been done We‟ll wait until the lawyers tell us it‟s wrong It doesn‟t really hurt anyone The system is unfair It‟s a gray area I was just following orders We all don‟t share the same ethics

POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Remember DATE CREATED: 9/1/2017 6:53 PM DATE MODIFIED: 9/12/2017 4:53 PM 267. Give a description of the simple tests that can be used to resolve ethical dilemmas.

ANSWER: a.

Peter Drucker: primum non nocere; above all do no harm b.

Laura Nash

(1) (2) (3)

Have you defined the problem accurately?

How would you define the problem if you stood on the other side of the fence?

How did this occur in the first place?

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(4) To whom and what do you give your loyalties as a person and as a member of the corporation?

(5) What is your intention in making this decision?

(6) How does this intention compare with the likely results?

(7) Whom could your decision or action injure?

(8) Can you engage the affected parties in a discussion of the problem before you make your decision?

(9) Are you confident that your position will be as valid over a long period of time as it seems now?

(10) Could you disclose without qualm your decision or action to your boss, your CEO, the board of directors, your family, or society as a whole?

(11) What is the symbolic potential of your action if understood? If misunderstood?

(12) Under what conditions would you allow exceptions to your stand? c.

Blanchard and Peale

(1) (2) (3)

Is it legal?

Is it balanced?

How does it make me feel?

d.

Warren Buffett – Front-Page-of-the-Newspaper Test

“Contemplating any business act, an employee should ask himself whether he would be willing to see it immediately described by an informed and critical reporter on the front page of his local paper, there to be read by his spouse, children, and friends. At Salomon we simply want no part of any activities that pass legal tests but that we, as citizens, would find offensive.” e.

Wall Street Journal

(1) Am I in compliance with the law?

(2) What contribution does this choice of action make to the company, the shareholders, the community, and others?

(3) What are the short- and long-term consequences of this decision? f.

Categorical Imperative (Kant)

“Do unto others are you would have them do unto you.”

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas and Personal Introspection KEYWORDS: Bloom's: Remember DATE CREATED: 9/1/2017 6:55 PM DATE MODIFIED: 9/1/2017 7:13 PM 268. List the six steps you should follow for analyzing an ethical dilemma.

ANSWER: 1.

Make sure you have a grasp of all of the facts available.

2.

List any information you would like to have but don‟t and what assumptions you would have to make, if any, in resolving the dilemma.

3.

Take each person involved in the dilemma and list the concerns they face or might have.

4.

Develop a list of resolutions for the problem.

5.

Evaluate the resolutions for costs, legalities, and impact.

6.

Make a recommendation on the actions that should be taken.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas and Personal Introspection KEYWORDS: Bloom's: Remember Copyright Cengage Learning. Powered by Cognero.

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DATE CREATED: 9/1/2017 7:14 PM DATE MODIFIED: 9/1/2017 7:15 PM 269. Define wi-fi piggybacking and explain why it is an ethical issue.

ANSWER: Wi-fi piggybacking is the use of someone else‟s wireless network access. You “piggyback” on to their network and have internet access without having to pay.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas and Personal Introspection KEYWORDS: Bloom's: Apply DATE CREATED: 9/1/2017 7:16 PM DATE MODIFIED: 9/1/2017 7:19 PM 270. List those who are affected by wi-fi piggybacking.

ANSWER:  The person who is paying for the access because the speed and accessibility of their network is affected  The wireless service providers who are not compensated for the multiple users  Other customers of wireless server who may have to pay higher rates for upgrades as a result of the use of piggybackers  Potential competitors for wireless service providers who cannot enter the market to compete because costs are so high and paying customers few POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas and Personal Introspection KEYWORDS: Bloom's: Apply DATE CREATED: 9/1/2017 7:19 PM DATE MODIFIED: 9/1/2017 7:21 PM 271. Dr. Phil Hayes has received an offer of full funding for his research on a new drug manufactured by Eli Mentin. The drug would be a competitor for Prozac without the questioned side-effects of possible violent behavior. Eli Mentin has, however, attached a condition to the funding. That condition is that Dr. Hayes may not publish his findings until Eli Mentin executives and its attorneys have had the opportunity to review them.

List the ethical issues Dr. Hayes faces with this offer.

ANSWER: Dr. Hayes is creating a conflict of interest for himself and possible sacrificing the perceived independence of his work.

Eli Mentin is compromising the integrity of Hayes‟ research and potentially withholding information about the product and its safety.

Eli Mentin‟s approach is not one of candor and compromises the ethical values of honesty, fairness and safety.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Analyze Copyright Cengage Learning. Powered by Cognero.

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DATE CREATED: 9/1/2017 7:22 PM DATE MODIFIED: 9/1/2017 7:25 PM 272. Susan Wade is the president of the Illinois Hospice Organization (IHO). IHO is a state organization affiliated with a national non-profit organization, the National Hospice Organization. Both the state and national organizations have members from both for-profit and non-profits hospices. Susan Wade is the director of a non-profit hospice in Illinois.

A Chicago newspaper has printed a story about hospices and what they do. Susan was interviewed extensively for the piece. In one quote in the article, Susan expressed her concerns about for-profit hospices. "It has become the sort of franchise of the decade. They're not all bad, but I think the original spirit of hospice is becoming very adulterated. There's one time in a person's life when he shouldn't be looked at as a number, as a piece of an actuarial problem. If your first and last priority is making money, it flies in the face of what hospice is all about. It's the end of the health-care chain. It's the place of last hope for patients. Dollars should not be the issue here."

A chief operating officer of a for-profit hospice has written to Susan complaining that her remarks are libelous and misinform the public about for-profit hospices. a.

Does Ms. Wade have a conflict of interest?

b.

Is Ms. Wade properly executing her role as the president of the state organization?

ANSWER: a.

Ms. Wade has a conflict of interest in the sense that as president of the state organization she represents all members and should not speak favorably of one type of member and unfavorably about another type. It is not, however, the traditional type of conflict of interest in which she benefits. Ms. Wade works for a non-profit institution and discussing the problem of for-profit will not change whether she has a job. The remarks could have an impact on how many patients her hospice has, but because of the non-profit nature, there is no financial gain to her. b.

As an elected representative, Susan should represent all members and not divide the organization or question the motives of some members. Perhaps her issues that she raised for the newspaper stories could be topics of seminars and debates for the members. But she should not be in a position, because of her role as president, to use opportunities with the media to lessen the standing of some members of the organization.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Analyze DATE CREATED: 9/1/2017 7:26 PM DATE MODIFIED: 9/1/2017 7:28 PM 273. Henry Rauzi, the controller for Sunbeam, issued an offer to Linda Croce for an entry-level accounting position at Sunbeam at a salary of $34,000 per year. Ms. Croce accepted the offer and gave notice to her employer. When thenCEO of Sunbeam, Paul Kazarian, was informed of the offer, he demanded that Mr. Rauzi rescind it because Kazarian had not approved it prior to it being made. Mr. Rauzi called Ms. Croce at 10:00 P.M. three days before she was scheduled to being work and told her of Mr. Kazarian's action. Ms. Croce had no job and remained unemployed for several months while she searched for a new job.

Evaluate the legality and ethics of Sunbeam's officer's actions with respect to Ms. Croce.

ANSWER: Apart from the obvious legal difficulty that Ms. Croce had a contract because she had already accepted the offer, there is the ethical dilemma, even without such formality, of reneging on one's word. There was a meeting of the minds and Ms. Croce relied on the promise in quitting her other job. The fact that an internal error in reporting lines was made should not affect the extension of the offer to Ms. Croce. Ms. Croce had no way of knowing that there were limitations on Mr. Rauzi's authority. Certainly she had no way of knowing that he could not issue an offer. Sunbeam's actions with respect to Ms. Croce were unfair, unbalanced and unethical.

POINTS: 1 DIFFICULTY: Moderate Copyright Cengage Learning. Powered by Cognero.

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QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Analyze DATE CREATED: 9/1/2017 7:28 PM DATE MODIFIED: 9/1/2017 7:29 PM 274. In 1991, James McElveen fell 30 feet from a waterfall and broke his back. He was employed by a small business and had no medical insurance. His lifetime friend, Benny Milligan, was with him when the fall occurred. Benny took James to the emergency room. Moved by his friend's severe injuries and pain and suffering and realizing that James did not have insurance, Benny switched IDs with James in the hospital emergency room. James required surgery to fuse his back to avoid what doctors said would have been certain paralysis. The cost of the surgery and hospitalization was $41,107.45.

Neither James, employed as a mechanic, nor Benny, employed as a painter, could have paid for the surgery and followup care. Benny's employer's insurance paid for the surgery because the hospital took the information from Benny's ID found in James' pockets.

While Benny was contemplating telling his employer, someone notified the insurance company of the switch. Benny, James, and Benny's wife, Tammy Milligan, were charged and convicted of mail fraud, wire fraud and conspiracy. Tammy, because of the Milligans' three young daughters, is serving her sentence through home confinement, Benny is serving 9 months and James is serving 7 months. All three will serve three years on probation and pay restitution.

Benny states, "I know what I did was wrong. But I look back on it, and I feel that I had to do it at the time. I don't feel like I'm a criminal in the sense of rapers, muggers and murderers." Benny said he did not understand that a hospital has an obligation to treat someone who is dying. Friends testified that as they were racing James to the hospital they told Benny that hospitals in the area had routinely refused to provide medical treatment.

Benny said he wanted to tell his employer, but he was afraid he would be fired and then be stuck with the bill. Tammy adds that the government is right to demand restitution but wrong to imprison them. James asked the judge if he could go to prison for all three of them, "I would be lost without my friendship with Benny. I probably would be dead." a.

Benny and James committed an illegal act. Was it unethical?

b.

What punishment is appropriate in the case?

c.

If you were Benny's employer, what would you have done?

ANSWER: a.

It was wrong and illegal to defraud the insurance company. It was taking the costs of the medical care, something that did not belong to James. Although the case evokes a great deal of sympathy, we all pay the cost when someone who is not insured enjoys payment by an insurer. The harm comes in the form of higher payments for all of us. Benny, James, and Tammy all had to lie and sign sworn statements that were untrue in order for James' surgery to be covered under Benny' insurance. They committed their acts in the name of something very important, but it was wrong.

Benny defined the problem incorrectly: it was either switch IDs or have his friend suffer. In fact, there were alternatives, but Benny did not think them through. James would have received his emergency treatment at the first hospital. If the surgery was not something necessary to preserve his life, he would have been transferred to another hospital, such as a county hospital, where care is provided without regard to whether the individual has insurance. No one was asking questions about the care.

They made assumptions and committed fraud to be certain there was medical care. b. While the fact that there was lying and fraud involved cannot be changed, the circumstances, as well as Benny's misunderstanding about the availability of medical care, should have some impact on the punishment for the three individuals. It is proper and fair to require reimbursement. However, Benny's lack of criminal intent should be considered as a factor in determining whether jail time is appropriate. Some other form of punishment such as restitution along with community service or the funding of a program of medical insurance coverage for those without would seem to suit the situation better than imprisonment. c. Benny's employer probably had little choice but to report the problem because the impact on its insurance costs was perhaps tremendous because of the extensive nature of the injury and care.

The employer could not be expected to lie to the insurer about Benny's presence at work after such Copyright Cengage Learning. Powered by Cognero.

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major surgery. In short, the employer could not be asked to participate in the fraud. However, the employer could have served as a character witness if Benny was a good and stable employee.

Further, the employer might have been more understanding about Benny's motivations. On the other hand, from the employer's perspective, it is difficult to send a strong message to employees about insurance fraud if Benny is retained.

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Defining Ethics Resolving Ethical Dilemmas and Personal Introspection KEYWORDS: Bloom's: Analyze DATE CREATED: 9/1/2017 7:30 PM DATE MODIFIED: 9/1/2017 7:37 PM 275. Althea Caldwell is the director of Arizona's Department of Health Services (DHS). DHS is charged the administration of the state's behavioral health system and is responsible for contracting with private providers for millions of dollars of mental health care each year for eligible patients.

Ms. Caldwell accepted a $20,000 per year director position for a hospital group corporation. One of the hospitals in the group was one to which state contracts for mental health treatment had been awarded.

One month after accepting the position, Ms. Caldwell asked the state's attorney general for an opinion as to whether she had a conflict of interest.

Does Ms. Caldwell have a conflict of interest?

ANSWER: Ms. Caldwell has a classic textbook conflict of interest. You cannot be the state official responsible for awarding contracts AND the director of a company that owns one of the facilities bidding for those contracts. The $20,000 is a quid pro quo – a position awarded with compensation with the hope of gaining an edge in the state agency's award of contracts.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 9/1/2017 7:38 PM DATE MODIFIED: 9/1/2017 7:40 PM 276. Stanford University medical researchers conducted a study on the correlation between the use of fertility drugs and ovarian cancer. Their study, published in the American Journal of Epidemiology, concludes that the use of the fertility drugs, Pergonal and Serophene, may increase the risk of ovarian cancer by three times. The lead author of the studies, Professor Alice Whittemore, stated, "Our finding in regard to fertility drugs is by no means certain. It is based on very small numbers and is really very tenuous."

FDA Commissioner David Kessler would like the infertility drug manufacturers to disclose the study findings and offer a warning on the drug packages. He notes, "Even though the epidemiology study is still preliminary, women have a right to know what is known. We're not looking to make more of this than there is."

If you were a manufacturer of one of the drugs, would you voluntarily disclose the study information?

ANSWER: Given the history of asbestos, the breast implants, and other products covered in the text, it is not difficult to spot a similar pattern here. Although the law may not require disclosure, the ethical tests of balance and "how would you want to be treated?" point manufacturers in the direction of disclosure.

Full market information requires that buyers make choices based on full disclosure. Without the study information, making those decisions becomes one-sided. The drug firm has more information that is not available to their purchasers. Further, the history of the cases mentioned demonstrates that firms Copyright Cengage Learning. Powered by Cognero.

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are always better off financially if they make the disclosure and allow the market to function than if they withhold the information and must later defend product liability suits. The disclosure should be made not only from an ethical perspective but also from a financial and litigation perspective.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas and Personal Introspection KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/1/2017 7:40 PM DATE MODIFIED: 9/1/2017 7:43 PM 277. Former-President George W. Bush has proposed reforming Social Security by asking those from ages 18-40 to forego their social security and invest their own funds in a retirement/pension plan. What ethical theory most applies to this proposal?

ANSWER: Utilitarianism – some must sacrifice but it is the most good for the most people.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/1/2017 7:43 PM DATE MODIFIED: 9/1/2017 7:45 PM 278. Applying ethical theories, discuss why you would not take food out in your pockets from an all-you-can-eat buffet.

ANSWER: Utilitarianism – to give everyone a chance, you wouldn‟t take all the food.

Categorical Imperative – if you didn‟t want people to do it at your restaurant, you wouldn‟t do it at another‟s.

Contractarian – if you didn‟t know which side you were on, you would choose a principle of fairness and not taking food.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/1/2017 7:45 PM DATE MODIFIED: 9/1/2017 7:46 PM 279. In November 2009, world-class golfer Tiger Woods crashed his Escalade into a tree near his Florida home. One of the windows in his Escalade had been smashed with a golf club. Mr. Woods‟ wife pulled him from the car and he was taken to the hospital, treated for injuries, and released. A sordid tale emerged over the next few days of a pattern of extra-marital affairs by Mr. Woods with a resulting separation from his wife and their eventual divorce. Following these public disclosures, sports writers, golf pros, country club staff members, and even CEOs of companies said that they were all aware of Mr. Woods‟ infidelity and that it was the best kept widely known secret among and between those who were golf players and/or fans. One said, “We just had a pact of silence.” When the news of Mr. Woods‟ serial infidelity made international news, some of his sponsors dropped him and others continued with him as a spokesperson. Are there any ethical issues here? Who faces them? Discuss whether you would have gone along with the pact.

ANSWER: The students should discuss the ethical category of “condoning unethical actions.” They should also list who is affected by the pact – from Mr. Woods‟ wife and children to the reputation of the companies for whom he served as a spokesperson. There could also be rationalizations – everybody does this.

Sometimes “it‟s none of my business” comes up as a way around facing the dilemma. However, Copyright Cengage Learning. Powered by Cognero.

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whom could your actions hurt is a good question to ask in analyzing this situation. Mr. Woods‟ family and career were affected by the conduct and the longer it went on, the worse the fall-out was going to be.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/1/2017 7:47 PM DATE MODIFIED: 9/1/2017 7:48 PM 280. Discuss norm shifting and speeding.

ANSWER: The students should discuss that “everybody does it” and so we speed. Norms shift through patterns and practices of behavior. However, norm shifting is not the end of ethical analysis. However, the students should also discuss who is affected by norm shifting and whether we are still held to the norm for purposes of liability and the dangers of having the fluid determination of a standard.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/1/2017 7:49 PM DATE MODIFIED: 9/1/2017 7:50 PM 281. Susan Wade is the president of the Illinois Hospice Organization (IHO). IHO is a state organization affiliated with a national non-profit organization, the National Hospice Organization. Both the state and national organizations have members from both for-profit and non-profits hospices. Susan Wade is the director of a non-profit hospice in Illinois.

A Chicago newspaper has printed a story about hospices and what they do. Susan was interviewed extensively for the piece. In one quote in the article, Susan expressed her concerns about for-profit hospices. "It has become the sort of franchise of the decade. They're not all bad, but I think the original spirit of hospice is becoming very adulterated. There's one time in a person's life when he shouldn't be looked at as a number, as a piece of an actuarial problem. If your first and last priority is making money, it flies in the face of what hospice is all about. It's the end of the health-care chain. It's the place of last hope for patients. Dollars should not be the issue here."

A chief operating officer of a for-profit hospice has written to Susan complaining that her remarks are libelous and misinform the public about for-profit hospices. a.

Does Ms. Wade have a conflict of interest?

b.

Is Ms. Wade properly executing her role as the president of the state organization?

ANSWER: a.

Ms. Wade has a conflict of interest in the sense that as president of the state organization she represents all members and should not speak favorably of one type of member and unfavorably about another type. It is not, however, the traditional type of conflict of interest in which she benefits. Ms. Wade works for a non-profit institution and discussing the problem of for-profit will not change whether she has a job. The remarks could have an impact on how many patients her hospice has, but because of the non-profit nature, there is no financial gain to her.

POINTS:

b.

As an elected representative, Susan should represent all members and not divide the organization or question the motives of some members. Perhaps her issues that she raised for the newspaper stories could be topics of seminars and debates for the members. But she should not be in a position, because of her role as president, to use opportunities with the media to lessen the standing of some members of the organization.

1

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DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Defining Ethics Resolving Ethical Dilemmas and Personal Introspection KEYWORDS: Bloom's: Analyze DATE CREATED: 9/1/2017 7:51 PM DATE MODIFIED: 9/1/2017 7:53 PM 282. You were invited to a wedding of a co-worker. A month after the wedding, you see the spouse of your co-worker at the community market and she introduced you to her “boyfriend.” She explained that she had only married your co-worker in order to allow him to obtain green-card status and that their divorce was in process. Discuss the ethical issue you face and whether you need to take any action because of what you have learned.

ANSWER: The categories involved here are violating the rules and giving or allowing false impression. There is now the issue of you having information about others‟ violations of the rules and allowing a false impression. The question you face is whether to report the actions of the couple to the federal government because of concerns about violations of immigration law. There are many affected by the actions of the couple – others waiting for legal authorization to remain in the country. Future married couples will be subject to greater scrutiny if government officials become aware of sham marriages.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 9/1/2017 7:54 PM DATE MODIFIED: 9/12/2017 4:56 PM 283. Make a list of who is affected when you do not pay back your student loans.

ANSWER: The lenders, the federal government because of their surety position on the loans, other borrowers who will have to pay higher rates because of defaults, future applicants who will be subject to higher review standards, higher costs, and possible limits on the amounts that they can borrow. Universities, who can be asked to pay funds received when students do not pay.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas and Personal Introspection KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/1/2017 7:56 PM DATE MODIFIED: 9/12/2017 4:56 PM 284. Grayson is doing his laundry in the laundry facilities located in the basement of his dorm. When he is preparing to move his clothes from a washer to a dryer, Sheila points out that there is a broken dryer in the corner. Sheila explains that the dryer will begin if you put in 50 cents, but it will keep going if you just keep throwing more clothes in. The dryer is supposed to run for 15 minutes and then require another 50 cents. Sheila tells Grayson, “It makes doing your laundry a lot cheaper.” Discuss the ethical issue and what Grayson should do.

ANSWER: Continuing to use the dryer beyond the cycle paid for is taking something that doesn‟t belong to you.

You are also able to take advantage of another because no one is aware of the problem with the dryer. The owner of the equipment is affected because the return on his investment will not be there.

Without sufficient earnings, the facilities might not be available in the future. There is the tragedy of the commons – if we abuse what is readily available then we destroy the resources.

POINTS: 1 Copyright Cengage Learning. Powered by Cognero.

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DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Analyze DATE CREATED: 9/1/2017 7:58 PM DATE MODIFIED: 9/1/2017 8:00 PM 285. Dr. Phil Hayes has received an offer of full funding for his research on a new drug manufactured by Eli Mentin. The drug would be a competitor for Prozac without the questioned side-effects of possible violent behavior. Eli Mentin has, however, attached a condition to the funding. That condition is that Dr. Hayes may not publish his findings until Eli Mentin executives and its attorneys have had the opportunity to review them.

List the ethical issues Dr. Hayes faces with this offer.

ANSWER: Dr. Hayes is creating a conflict of interest for himself and possible sacrificing the perceived independence of his work.

Eli Mentin is compromising the integrity of Hayes‟ research and potentially withholding information about the product and its safety.

Eli Mentin‟s approach is not one of candor and compromises the ethical values of honesty, fairness and safety.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 9/2/2017 3:22 PM DATE MODIFIED: 9/2/2017 3:26 PM 286. Paul Babcock gave the following advice to Standard Oil Company executives who were going to testify before Congress about the business practices of Standard Oil, “Parry every question with answers which, while perfectly truthful, are evasive of bottom facts.” Apply ethical analysis to the advice and the statement.

ANSWER: The students should discuss that the advice was to leave a false impression. Babcock failed to consider all of the implications of such false impressions given to Congress. Standard Oil‟s reputation was at stake. Also, giving false impressions that are later discovered could lead to loss of trust and more investigations. Babcock did not consider the implications when the truth came out. Babcock believed he could manage a situation with falsehoods.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 9/2/2017 3:25 PM DATE MODIFIED: 9/2/2017 3:25 PM 287. Data Processing, Inc. is a service firm that performs word processing functions for law firms, corporations and government agencies. Their facilities consist of 120 office units with a word processor in each unit.

Their facilities were formerly a shoe manufacturing plant, and all of the office units are located in one large room. Over the past 14 months, 7 of the 120 word processors have been diagnosed with breast cancer. In six of the seven cases diagnosed, there is no family history of breast cancer. Jane Quinn, the owner and CEO of data processing, has seen a Copyright Cengage Learning. Powered by Cognero.

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cluster study that links employment as a word processor to a higher rate of breast cancer. Ms. Quinn does not disclose the study to her employees and takes no further action. Discuss the ethical issues.

ANSWER: Ms. Quinn has knowledge of a potential harm and is withholding information.

Doing nothing does not solve the problem or minimize risk. At a minimum an investigation is warranted. Safety, fairness, honesty, balance and long-term survival of the employees and the firm are at issue.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 9/2/2017 3:26 PM DATE MODIFIED: 9/2/2017 3:29 PM 288. The city of Washington, D.C. filed suit against online travel companies for not paying the full amount of sales tax due on the rooms their customers use while in D.C. The online travel companies charge their customers the 14.5% sales tax on the full price of the room, but pay D.C. only 14.5% on the amount the travel services actually paid for the room. The online travel companies maintain that the sales tax rules are not clear, so they pay only on the actual charges, not the full retail cost of the rooms. Discuss the ethical issues you see in the online travel companies‟ position on the sales tax.

ANSWER: One of the peripheral ethical issues in the scenario is the possibility that the online travel service customers may not be aware that the sales taxes they are charged are a profit margin for the online travel companies because they are paying in less to the city than they are charging the customers.

The online travel companies are withholding information from their customers.

The online travel companies have found a gray area and are able to profit by taking advantage of a loophole. However, D.C. could easily remedy the problem by just passing an ordinance that requires payment of taxes at the full retail price.

The online travel companies are playing the Carr game and making money as a result.

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 9/2/2017 3:29 PM DATE MODIFIED: 9/12/2017 4:58 PM 289. Susan is interviewing for a position in purchasing with a major international retailer. Susan would like to go into consulting and sees this job, if she gets it, as experience for joining a consulting firm in 2-3 years. The interviewer asks Susan, "Where do you see yourself in five years?" Susan replies, "Working here…and I probably would have moved up to head one area of purchasing." Evaluate Susan's response, considering ethical categories and applying the readings from Unit 2.

ANSWER: Susan is giving a false impression and/or bluffing to get the job. She is taking advantage of the company.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 9/2/2017 3:32 PM Copyright Cengage Learning. Powered by Cognero.

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DATE MODIFIED: 9/2/2017 3:33 PM 290. Discuss the ethics of posing as another for purposes of investigating an issue or organization.

ANSWER: There is a false impression. Students can bring in ethical theory here and discuss the greater public good of ferreting out this kind of underground criminal activity going on in a government subsidized program for housing that is encouraged by the staff of the funded organization. There are the categories of false impression and taking unfair advantage.

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Defining Ethics KEYWORDS: Bloom's: Analyze DATE CREATED: 9/3/2017 2:49 PM DATE MODIFIED: 9/3/2017 2:51 PM

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Unit 02

True / False 1. Peter Drucker believes that those who have more education should be held to higher standards. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Business and Ethics: How Do They Work Together?

KEYWORDS: Bloom's: Remember DATE CREATED: 9/1/2017 8:20 PM DATE MODIFIED: 9/1/2017 8:23 PM 2. Leaders who are focused on their own goals are less likely to lose their way when it comes to ethics. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: What Gets in the Way of Ethical Decisions in Business?

KEYWORDS: Bloom's: Understand DATE CREATED: 9/1/2017 8:23 PM DATE MODIFIED: 9/1/2017 8:25 PM 3. Loyalty to employers can create conflicts with employees who have concerns about their employer‟s conduct. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/1/2017 8:25 PM DATE MODIFIED: 9/1/2017 8:26 PM 4. Peter Drucker believes that stiff punishments for executives are important in preventing unethical behavior. a. True Copyright Cengage Learning. Powered by Cognero.

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b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Business and Ethics: How Do They Work Together?

KEYWORDS: Bloom's: Remember DATE CREATED: 9/1/2017 8:27 PM DATE MODIFIED: 9/1/2017 8:27 PM 5. Peter Drucker and Albert Carr have similar views on ethics in business. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Business and Ethics: How Do They Work Together?

KEYWORDS: Bloom's: Understand DATE CREATED: 9/1/2017 8:34 PM DATE MODIFIED: 9/1/2017 8:38 PM 6. Carr believes that we make player‟s decisions when providing information to a prospective employer. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Business and Ethics: How Do They Work Together?

KEYWORDS: Bloom's: Understand DATE CREATED: 9/1/2017 8:38 PM DATE MODIFIED: 9/1/2017 8:39 PM 7. Albert Carr subscribes to the Golden Rule as an ethical standard. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

Business and Ethics: How Do They Work Together?

Bloom's: Understand 9/1/2017 8:38 PM 9/1/2017 8:40 PM

8. Albert Carr believes that people have to disregard personal ethical standards in order to be successful in business. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Business and Ethics: How Do They Work Together?

KEYWORDS: Bloom's: Understand DATE CREATED: 9/1/2017 8:40 PM DATE MODIFIED: 9/1/2017 8:41 PM 9. Firing friends is not an ethical issue and is just part of Carr‟s business game. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Business and Ethics: How Do They Work Together?

KEYWORDS: Bloom's: Understand DATE CREATED: 9/1/2017 8:41 PM DATE MODIFIED: 9/1/2017 8:42 PM 10. The Bathsheba Syndrome causes leaders to be more cautious in the decision-making. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: What Gets in the Way of Ethical Decisions in Business?

KEYWORDS: Bloom's: Understand DATE CREATED: 9/1/2017 8:43 PM DATE MODIFIED: 9/1/2017 8:43 PM 11. King David struggled with ethical issues throughout his life before he became the leader of his nation. a. True Copyright Cengage Learning. Powered by Cognero.

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b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: What Gets in the Way of Ethical Decisions in Business?

KEYWORDS: Bloom's: Understand DATE CREATED: 9/1/2017 8:43 PM DATE MODIFIED: 9/12/2017 5:00 PM 12. Hubris is at the core of the Bathsheba Syndrome. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: What Gets in the Way of Ethical Decisions in Business?

KEYWORDS: Bloom's: Understand DATE CREATED: 9/1/2017 8:44 PM DATE MODIFIED: 9/12/2017 5:00 PM 13. Isolation and lack of dissenting views contribute to the Bathsheba Syndrome in leaders. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: What Gets in the Way of Ethical Decisions in Business?

KEYWORDS: Bloom's: Understand DATE CREATED: 9/1/2017 8:45 PM DATE MODIFIED: 9/1/2017 8:46 PM 14. In the story of David and Bathsheba, Uriah is killed because of David‟s orders. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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What Gets in the Way of Ethical Decisions in Business?

Bloom's: Understand 9/1/2017 8:46 PM 9/1/2017 8:47 PM

15. Albert Carr believes that an executive who dyes his hair in order to appear younger for a job interview has committed an ethical breach.

a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Business and Ethics: How Do They Work Together?

KEYWORDS: Bloom's: Understand DATE CREATED: 9/1/2017 8:47 PM DATE MODIFIED: 9/1/2017 8:48 PM 16. William Wilberforce was a member of the British Parliament who fell victim to the Bathsheba syndrome. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: What Gets in the Way of Ethical Decisions in Business?

KEYWORDS: Bloom's: Understand DATE CREATED: 9/1/2017 8:49 PM DATE MODIFIED: 9/1/2017 8:50 PM 17. Albert Carr believes that it is unethical for a manager to make a donation to the political campaign of a candidate a customer is supporting unless the manager supports that candidate personally.

a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Business and Ethics: How Do They Work Together?

KEYWORDS: Bloom's: Understand DATE CREATED: 9/1/2017 8:51 PM DATE MODIFIED: 9/1/2017 8:51 PM Copyright Cengage Learning. Powered by Cognero.

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18. Companies are more likely to have ethical lapses when they are performing well in their earnings. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: What Gets in the Way of Ethical Decisions in Business?

KEYWORDS: Bloom's: Understand DATE CREATED: 9/1/2017 8:52 PM DATE MODIFIED: 9/1/2017 8:52 PM 19. A company has changed its revenue reporting so that its sales at outlet stores and regular stores are grouped into one sales figure. A manager says, “This way no one can tell how our brand is doing in the full retail market.” Albert Carr would say the change is just part of the business game.

a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Business and Ethics: How Do They Work Together?

KEYWORDS: Bloom's: Analyze DATE CREATED: 9/1/2017 8:53 PM DATE MODIFIED: 9/1/2017 8:55 PM 20. The cost of reporting our mistakes often outweighs our commitment to ethical choices. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: What Gets in the Way of Ethical Decisions in Business?

KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/1/2017 9:06 PM DATE MODIFIED: 9/1/2017 9:08 PM 21. It would not be unethical to have your friends and families write reviews of your company and its products even though most of them do not use your company‟s products.

a. True b. False ANSWER:

False

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POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/1/2017 9:09 PM DATE MODIFIED: 9/1/2017 9:11 PM 22. You work for a construction firm that has had several employees express safety concerns about the procedures your company uses for digging basements. You raise the issue to your supervisor who explains that it would cost too much to do the job safely. Your supervisor has allowed financial pressure to cloud ethical analysis.

a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: What Gets in the Way of Ethical Decisions in Business?

KEYWORDS: Bloom's: Apply DATE CREATED: 9/1/2017 9:11 PM DATE MODIFIED: 9/1/2017 9:13 PM 23. You work for a construction firm that has had several employees express safety concerns about the procedures your company uses for digging basements. You raise the issue to your supervisor who explains that it would cost too much to do the job safely. It would be unethical for you to notify someone else about the safety problems.

a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: What Gets in the Way of Ethical Decisions in Business?

KEYWORDS: Bloom's: Apply DATE CREATED: 9/1/2017 9:13 PM DATE MODIFIED: 9/1/2017 9:16 PM 24. Albert Carr likens business to a poker game. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

False Business and Ethics: How Do They Work Together?

Bloom's: Remember 9/1/2017 9:17 PM 9/1/2017 9:18 PM

25. Albert Carr believes that bluffing in business is justified because it is understood as part of the game of business. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Business and Ethics: How Do They Work Together?

KEYWORDS: Bloom's: Remember DATE CREATED: 9/1/2017 9:19 PM DATE MODIFIED: 9/12/2017 5:01 PM 26. Albert Carr believes that a card up the sleeve is not the same as bluffing and is a form of cheating. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Business and Ethics: How Do They Work Together?

KEYWORDS: Bloom's: Remember DATE CREATED: 9/1/2017 9:20 PM DATE MODIFIED: 9/1/2017 9:21 PM 27. Peter Drucker believes that the ethical obligation of business is to bluff within reason. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Business and Ethics: How Do They Work Together?

KEYWORDS: Bloom's: Remember DATE CREATED: 9/1/2017 9:21 PM DATE MODIFIED: 9/12/2017 5:01 PM 28. The either/or conundrum produces a comfort with ethical issues because we convince ourselves that there is no other Copyright Cengage Learning. Powered by Cognero.

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choice.

a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: What Gets in the Way of Ethical Decisions in Business?

KEYWORDS: Bloom's: Understand DATE CREATED: 9/1/2017 9:22 PM DATE MODIFIED: 9/1/2017 9:23 PM 29. The failure to understand that we all hit a wall once in awhile causes us to make poor ethical choices. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: What Gets in the Way of Ethical Decisions in Business?

KEYWORDS: Bloom's: Understand DATE CREATED: 9/1/2017 9:25 PM DATE MODIFIED: 9/1/2017 9:26 PM 30. The figures in Greek tragedies are victims of hubris. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: What Gets in the Way of Ethical Decisions in Business?

KEYWORDS: Bloom's: Understand DATE CREATED: 9/1/2017 9:26 PM DATE MODIFIED: 9/12/2017 5:02 PM 31. A focus on the trappings of success causes leaders to lose their way. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False Copyright Cengage Learning. Powered by Cognero.

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False What Gets in the Way of Ethical Decisions in Business?

Bloom's: Understand 9/1/2017 9:27 PM 9/1/2017 9:28 PM

32. Increasing isolation is a part of leadership but does not affect ethical choices. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: What Gets in the Way of Ethical Decisions in Business?

KEYWORDS: Bloom's: Understand DATE CREATED: 9/1/2017 9:28 PM DATE MODIFIED: 9/1/2017 9:29 PM 33. “To bribe or not to bribe” is a set-up for the either/or conundrum. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: What Gets in the Way of Ethical Decisions in Business?

KEYWORDS: Bloom's: Remember DATE CREATED: 9/1/2017 9:30 PM DATE MODIFIED: 9/1/2017 9:32 PM 34. Ikea fell into the either/or conundrum in solving its problems in dealing with Russian authorities. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: What Gets in the Way of Ethical Decisions in Business?

KEYWORDS: Bloom's: Remember DATE CREATED: 9/2/2017 12:35 PM DATE MODIFIED: 9/2/2017 12:37 PM 35. In the equation P=ƒ(x), P stands for profits.

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a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: What Gets in the Way of Ethical Decisions in Business?

KEYWORDS: Bloom's: Remember DATE CREATED: 9/2/2017 12:37 PM DATE MODIFIED: 9/2/2017 12:38 PM 36. During the 1990s, Goldman increased it standards for profitability before doing an IPO. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 12:39 PM DATE MODIFIED: 9/2/2017 12:40 PM 37. Goldman was originally founded as a partnership. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 12:40 PM DATE MODIFIED: 9/2/2017 12:40 PM 38. Fabrice Tourre was aware that the CDO market was going to crash. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

False Resolving Ethical Dilemmas in Business Bloom's: Understand 9/2/2017 12:41 PM 9/2/2017 12:41 PM

39. BP‟s market capitalization was not affected by the Deepwater Horizon spill. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 12:41 PM DATE MODIFIED: 9/2/2017 12:42 PM 40. Goldman did not pay a fine to the SEC. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 12:42 PM DATE MODIFIED: 9/2/2017 12:42 PM 41. Goldman‟s securities offerings in the 1920s were similar to its offerings in the mortgage-debt instruments sold in the 2000s.

a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 12:43 PM DATE MODIFIED: 9/2/2017 12:43 PM Copyright Cengage Learning. Powered by Cognero.

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42. BP‟s earnings were not affected by the Deepwater Horizon spill. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 12:43 PM DATE MODIFIED: 9/2/2017 12:44 PM 43. BP‟s exploration activity decreased following the Deepwater Horizon spill. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 12:44 PM DATE MODIFIED: 9/2/2017 12:45 PM 44. BP had no safety violations prior to the Deepwater Horizon spill. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 12:45 PM DATE MODIFIED: 9/2/2017 12:46 PM 45. BP engineers had no objections to the way Deepwater Horizon was built. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

False Resolving Ethical Dilemmas in Business Bloom's: Understand 9/2/2017 12:46 PM 9/2/2017 12:46 PM

46. BP was banned from federal drilling rights following the Deepwater Horizon spill. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 12:47 PM DATE MODIFIED: 9/2/2017 12:47 PM 47. BP was delaying repairs as a way of cutting expenses prior to the Deepwater Horizon spill. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 12:47 PM DATE MODIFIED: 9/2/2017 12:48 PM 48. BP CEO Hayward felt personal responsibility for the Deepwater Horizon spill. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 12:48 PM DATE MODIFIED: 9/2/2017 12:49 PM 49. BP was using the same off-shore drilling design as other oil companies.

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a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 12:49 PM DATE MODIFIED: 9/2/2017 12:50 PM 50. BP had no way of knowing about the evolving issues at Deepwater Horizon. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 12:50 PM DATE MODIFIED: 9/2/2017 12:50 PM 51. BP‟s focus on costs influenced its judgment and decisions on engineering issues. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 12:51 PM DATE MODIFIED: 9/2/2017 12:51 PM 52. Smart-pigging is used to detect weakness in deepwater oil wells. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

False Resolving Ethical Dilemmas in Business Bloom's: Understand 9/2/2017 12:51 PM 9/2/2017 12:52 PM

53. BP followed industry standards in its construction of Deepwater Horizon. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 12:52 PM DATE MODIFIED: 9/2/2017 12:53 PM 54. BP had unaddressed safety violations at the time of the Texas City Refinery explosion. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 12:53 PM DATE MODIFIED: 9/2/2017 12:54 PM 55. BP transferred employees who raised concerns about safety at its facilities. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 12:54 PM DATE MODIFIED: 9/2/2017 12:54 PM 56. BP traders squeezed the pipeline to affect oil prices.

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a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 12:55 PM DATE MODIFIED: 9/2/2017 12:55 PM 57. BP did not use a riskier design than the industry generally used on its Deepwater Horizon rig. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 12:55 PM DATE MODIFIED: 9/2/2017 12:56 PM 58. The federal government affected the entire oil industry with a temporary moratorium on offshore drilling following BP‟s Deepwater Horizon spill.

a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 12:56 PM DATE MODIFIED: 9/2/2017 12:57 PM 59. BP had no warnings about its pipeline problems in Prudhoe Bay. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False Copyright Cengage Learning. Powered by Cognero.

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False Resolving Ethical Dilemmas in Business Bloom's: Understand 9/2/2017 12:57 PM 9/2/2017 12:57 PM

60. The Prudhoe Bay and BP refinery problems had no effect on BP‟s stock price. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 12:57 PM DATE MODIFIED: 9/2/2017 12:58 PM 61. Valeant specialized in one-of-a-kind drugs. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 12:58 PM DATE MODIFIED: 9/2/2017 12:59 PM 62. Valeant did not work closely with insurers on reimbursement for its prescription drugs. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 12:59 PM DATE MODIFIED: 9/2/2017 12:59 PM 63. The only ethical issue involved in the Valeant case was its pricing model.

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a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 1:00 PM DATE MODIFIED: 9/2/2017 1:00 PM 64. The SEC does not require disclosures about health issues involving CEOs of publicly traded companies. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: What Gets in the Way of Ethical Decisions in Business?

KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 1:01 PM DATE MODIFIED: 9/2/2017 1:02 PM 65. Valeant stripped out restructuring and acquisition costs to make its look like it was more profitable. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 1:02 PM DATE MODIFIED: 9/2/2017 1:03 PM 66. Valeant admitted that it had a transparency problem with its investors. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

False Resolving Ethical Dilemmas in Business Bloom's: Understand 9/2/2017 1:03 PM 9/2/2017 1:03 PM

67. Goldman‟s Internet IPOs were allocated openly. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 1:04 PM DATE MODIFIED: 9/2/2017 1:04 PM 68. Goldman changed its status in 2008 to come under Federal Reserve regulation. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 1:04 PM DATE MODIFIED: 9/2/2017 1:05 PM 69. Goldman withheld information from investors about auction rates. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 1:05 PM DATE MODIFIED: 9/2/2017 1:06 PM 70. Goldman tried to avoid “toes-to-the-line” kinds of activities when it came to regulatory compliance.

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a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 1:06 PM DATE MODIFIED: 9/2/2017 1:06 PM 71. Goldman was positioning itself short in debt instruments it was selling to its clients. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 1:07 PM DATE MODIFIED: 9/2/2017 1:07 PM 72. Only former assistant coach Jerry Sandusky was criminally charged in the Penn State case. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 1:08 PM DATE MODIFIED: 9/2/2017 1:08 PM 73. No one at Penn State was aware of Mr. Sandusky‟s conduct with minor-aged boys until 2011. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

False Resolving Ethical Dilemmas in Business Bloom's: Understand 9/2/2017 1:08 PM 9/2/2017 1:09 PM

74. Penn State officials did not comply with the reporting requirements regarding Mr. Sandusky‟s conduct. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 1:09 PM DATE MODIFIED: 9/2/2017 1:09 PM Multiple Choice 75. Which of the following would Peter Drucker favor as a way of encouraging ethical behavior in business? a. Harsh penalties for executives b. Exemptions from fines for corporations c. Turning control of corporations over to government agencies d. Both b and c ANSWER: a POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Business and Ethics: How Do They Work Together?

KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 1:10 PM DATE MODIFIED: 9/2/2017 1:13 PM 76. Which of the following would not be acceptable behavior in business according to Albert Carr? a. Planned obsolescence b. Saying you read certain magazines in order to get a job c. Bribing employees to get technological information from competitors d. All of the above are acceptable behavior to Carr ANSWER: d POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Multiple Choice HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

Business and Ethics: How Do They Work Together?

Bloom's: Analyze 9/2/2017 1:14 PM 9/2/2017 1:16 PM

77. The Bathsheba Syndrome: a. Is something Albert Carr believes is important in business leaders. b. Is a doctrine Peter Drucker uses to explain ethical leadership. c. Is destructive once individuals become leaders. d. Affects very few managers.

ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: What Gets in the Way of Ethical Decisions in Business?

KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 1:17 PM DATE MODIFIED: 9/2/2017 1:20 PM 78. Which of the following is being used when someone says, “I had no choice”? a. Peter Drucker‟s view on decision-making b. The either/or conundrum c. An effective use of logic d. Both b and c ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: What Gets in the Way of Ethical Decisions in Business?

KEYWORDS: Bloom's: Apply DATE CREATED: 9/2/2017 1:20 PM DATE MODIFIED: 9/2/2017 1:23 PM 79. What does P = (x) mean? a. Pricing is a function of maximizing profits. b. The price of ethics is a function of profits lost. c. The probability of an ethical outcome is a direct function of the amount of money involved. d. The probability of an either/or conundrum is a function of pressure.

ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

What Gets in the Way of Ethical Decisions in Business?

Bloom's: Remember 9/2/2017 1:23 PM 9/2/2017 1:26 PM

80. BP‟s approach to safety prior to the Deepwater Horizon spill was: a. Spending less on safety. b. Spending whatever was needed to comply with regulations. c. Spending when there is an injury. d. None of the above ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: What Gets in the Way of Ethical Decisions in Business?

KEYWORDS: Bloom's: Analyze DATE CREATED: 9/2/2017 1:26 PM DATE MODIFIED: 9/2/2017 1:28 PM 81. Valeant was able to make money by: a. Developing new drugs through research. b. By acquiring drugs from other companies and increasing prices. c. By increasing prices on the drugs they owned that were unique. d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: What Gets in the Way of Ethical Decisions in Business?

KEYWORDS: Bloom's: Remember DATE CREATED: 9/2/2017 1:29 PM DATE MODIFIED: 9/2/2017 1:31 PM 82. Goldman Sach‟s deal put together for Mr. Paulson: a. Found Goldman positioned against its clients. b. Was handled completely by Mr. Paulson. c. Was another laddering deal. d. Did not develop any problems.

ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

Resolving Ethical Dilemmas in Business Bloom's: Understand 9/2/2017 1:31 PM 9/2/2017 1:34 PM

83. If information posted on Yelp harms a business: a. Yelp is required to removed the information. b. Yelp is liable for the damage to the business. c. Yelp is not responsible if the information is an opinion. d. Yelp must arbitrate the content between the posting party and Yelp.

ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 1:34 PM DATE MODIFIED: 9/2/2017 1:36 PM 84. Marie has a team of two women come to clean her home and work space, located adjacent to her home. The team, Clean Spot, comes in every week at 9:30 AM on Thursday. Marie is going on vacation for two weeks and tells the Clean Spot ladies that she will not need them for two weeks. Clean Spot has reserved Marie‟s time and is unable to make up the lost income. Marie‟s husband tells Marie, “Look they pledge that time to us, and they can‟t substitute very easily. You should pay them – like a vacation time.” Marie says, “I don‟t have a contract with them. It is just a cleaning service.

There is no guarantee of income. I could also let them go anytime for someone else.” Marie‟s husband says, “But then they could take on a new client.” Marie says, “I have no legal obligation to pay them.” Which of the following is correct? a. Marie follows Peter Drucker‟s theory of do no harm.

b. Marie follows Albert Carr‟s view of ethics. c. Marie follows the P= ƒ(x) theory of ethics. d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Business and Ethics: How do They Work Together?

KEYWORDS: Bloom's: Apply DATE CREATED: 9/2/2017 1:37 PM DATE MODIFIED: 9/12/2017 5:04 PM 85. Kaitlin is retiring as the office administrator for an engineering firm. In the months leading up to her retirement date, Kaitlin has had the student interns in the front office take boxes of office supplies including Kleenex, paper towels, tablets, pencils, pens, and toilet paper to her car. The interns are worried about what they are doing and ask Kaitlin about the supplies. Kaitlin says, “Look, I have given this company 35 years. They owe me something for all that I have done. And the pension they are giving me is not going to cover my living expenses.” The interns agree that Kaitlin is correct, saying, “What choice does she have?” The interns just keep moving the supplies out to Kaitlin‟s car. Which of the following applies to the interns‟ views on ethics? a. The either/or conundrum Copyright Cengage Learning. Powered by Cognero.

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b. The Peter Drucker view of “do no harm” c. They are succumbing to pressure d. The gray area ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: What Gets in the Way of Ethical Decisions in Business?

KEYWORDS: Bloom's: Analyze DATE CREATED: 9/2/2017 1:40 PM DATE MODIFIED: 9/12/2017 5:05 PM 86. Westside Exterminating specializes in termite inspection and treatments for homes and buildings. Westside‟s contract guarantees that the Westside termite treatment will keep “your property termite-free for five years.” The Richards had Westside treat their property. After one year, the Richards discovered that there were termites in their trees. They called Westside and requested help with the trees. Westside explained that “Property” covers structures, but not the yard, plants, and trees. The Richards did not understand that limitation. Westside says, “We lose a customer here and there once they find out about the “property” limitation, but we just keep signing people up and continue to make money.”

Which theory of business ethics does Westside follow? a. Peter Drucker

b. The credo theory c. Albert Carr d. Both a and b ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Business and Ethics: How do They Work Together?

KEYWORDS: Bloom's: Apply DATE CREATED: 9/2/2017 1:42 PM DATE MODIFIED: 9/2/2017 1:43 PM 87. Rod Mohr was having trouble sleeping. His physician prescribed a CPAP machine. Rod‟s insurance covers the machine for 30 days, with physician certification that the patient is using the machine every night and that the patient is seen every 30 days. After 30 days, Rod went to see his doctor and the doctor asked if he was using the machine. Rod said, “Well, I use it, but about half the time.” Rod‟s physician says, “I am going to go ahead and certify that you are using it daily. But let‟s do better this next month. I am not really fond of all this insurance intervention into how I treat my patients, and insurers have plenty of profits. So, I am just signing.” Which of the following best describes the physician‟s decision? a. The physician framed the decision from his perspective as a doctor.

b. The physicians framed it as helping out a patient. c. The physician framed it as insurers being able to afford the coverage. d. All of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate Copyright Cengage Learning. Powered by Cognero.

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QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Analyze DATE CREATED: 9/2/2017 1:44 PM DATE MODIFIED: 9/2/2017 1:46 PM 88. Rod Mohr was having trouble sleeping. His physician prescribed a CPAP machine. Rod‟s insurance covers the machine for 30 days, with physician certification that the patient is using the machine every night and that the patient is seen every 30 days. After 30 days, Rod went to see his doctor and the doctor asked if he was using the machine. Rod said, “Well, I use it, but about half the time.” Rod‟s physician says, “I am going to go ahead and certify that you are using it daily. But let‟s do better this next month. I am not really fond of all this insurance intervention into how I treat my patients, and insurers have plenty of profits. So, I am just signing.” Which of the following is correct? a. There is no ethical issue because the question is adequate health care for Rod.

b. The physician used an either/or reasoning to justify the false certification. c. Since Rod is still using the machine, the certification is accurate. d. Because this decision is not personally beneficial to the physician, there is no ethical issue.

ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Analyze DATE CREATED: 9/2/2017 1:47 PM DATE MODIFIED: 9/2/2017 1:50 PM 89. Allison Bond is dating Greg Evans. Both Allison and Greg work for the same federal contractor. They live on different sides of the closest city and commute separately to work. Employees are required to have parking decals issued to them for parking in the company lot. The decals are issued to individual employees and matched to their vehicles because of security reasons. The top secret work of the contractor requires that security be able to identify cars in the lot as associated with employees. Greg has a decal and Allison does not because there is a $100 annual fee for processing employees‟ decals. Employees are given the option of parking at an open lot 2 miles from the company and taking a free bus ride to the company building. Greg has been assigned to work out of the country for the company for three months.

Greg tells Allison to just use his decal for three months. Allison‟s car is similar to Greg‟s. Allison has begun using Greg‟s decal to park in the company lot to avoid the 2-mile bus ride. Which of the following statements is correct? a. Because Allison‟s car is similar to Greg‟s a security issue will not result, so there is no ethical issue in her use of the decal. b. Because Allison works at the company, her use of another employee‟s decal is not an ethical issue.

c. Because Allison‟s use is only temporary, there is no ethical issue. d. None of the above ANSWER: d POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: What Gets in the Way of Ethical Decisions in Business?

KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/2/2017 1:50 PM Copyright Cengage Learning. Powered by Cognero.

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DATE MODIFIED: 9/12/2017 5:05 PM 90. Peter Duncan started a small Internet company that specializes in cleaning up websites that have been hacked. Peter explains to potential customers that he charges $350 to go into a site and clean up whatever the hackers have done.

When he is finished, he notifies the customers by e-mail that their site is now clean. However, Peter changes the password accesses to their site and explains to the customers that he cannot release the passwords to them unless they sign up for the $99 annual package that will keep their sites clean and eliminate any problems with subsequent hackers.

The customers cannot gain administrative access to their sites without the passwords. Peter explains, “They need help. I fix what‟s wrong, but I also help them going forward because without a package, they can‟t keep their sites clean.” Which of the following statements is correct? a. Peter has engaged in deception in his pricing.

b. Peter is just using an effective tool for retaining customers. c. Peter has framed the issue for the benefit of his customers and is not doing any harm. d. Both b and c ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Business and Ethics: How Do They Work Together?

KEYWORDS: Bloom's Evaluate DATE CREATED: 9/2/2017 1:55 PM DATE MODIFIED: 9/2/2017 1:58 PM 91. Junius Wright is applying for a position with a federal contractor. Junius was a member of the Communist party for 2 years during college. A question on the application asks, “Have you ever been a member of an organization that supported subversive activity against the United States?” Junius answers “no” because in his chapter, no one ever discussed activity against the United States. Which of the following statements is correct? a. Junius has answered the question truthfully.

b. Junius could not make a mistake in answering either way because of the question‟s ambiguity. c. Junius has the goal of getting a job and answering the question with a “yes” is unethical because it could deprive him of that goal. d. Junius should make the disclosure of his membership.

ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Business and Ethics: How Do They Work Together?

KEYWORDS: Bloom's Evaluate DATE CREATED: 9/2/2017 1:58 PM DATE MODIFIED: 9/2/2017 2:00 PM 92. Which of the following feels that business is like a big poker game and that bluffing in business is expected and acceptable? a. Laura Nash

b. Peter Drucker c. Ayn Rand d. Albert Carr Copyright Cengage Learning. Powered by Cognero.

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ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Business and Ethics: How Do They Work Together?

KEYWORDS: Bloom's: Remember DATE CREATED: 9/2/2017 2:05 PM DATE MODIFIED: 9/2/2017 2:09 PM 93. Primum non nocere is associated as an ethical philosophy of: a. Plato. b. Aristotle. c. Peter Drucker. d. Laura Nash.

ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Business and Ethics: How Do They Work Together?

KEYWORDS: Bloom's: Remember DATE CREATED: 9/2/2017 2:10 PM DATE MODIFIED: 9/2/2017 2:12 PM 94. Which company uses primum non nocere as its credo? a. AIG b. ABC TV c. ImClone d. Johnson & Johnson ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Business and Ethics: How Do They Work Together?

KEYWORDS: Bloom's: Remember DATE CREATED: 9/2/2017 2:12 PM DATE MODIFIED: 9/12/2017 5:08 PM 95. Which of the following is not a Goldman cultural philosophy? a. Filthy rich by forty b. Long-term greedy c. The customer is first and foremost d. Don‟t kill the marketplace Copyright Cengage Learning. Powered by Cognero.

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ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 2:14 PM DATE MODIFIED: 9/2/2017 2:16 PM 96. As a result of the Goldman “trading huddles”: a. Auction-rate securities are now illegal. b. There are now new regulations of analysts. c. Investment banking houses can no longer employ analysts. d. The definition of sophisticated investors has been changed.

ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/2/2017 2:17 PM DATE MODIFIED: 9/2/2017 2:18 PM 97. In the Goldman Abacus deal, who determined what mortgages went into the investment pool? a. Fabrice Tourre b. ACA c. John Paulson d. Lloyd Blankfein ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 2:19 PM DATE MODIFIED: 9/2/2017 2:20 PM 98. How did Goldman avoid violation of SOX in advancing cash to two of its officers? a. It made them a loan b. It made them an interest-free loan c. It purchased stock from the executives d. It had them issue a promissory note Copyright Cengage Learning. Powered by Cognero.

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ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 2:21 PM DATE MODIFIED: 9/2/2017 2:22 PM 99. What was AIG‟s role in the Goldman stock offerings? a. It was the insurer for losses on those offerings b. It was the underwriter c. It disclosed Goldman‟s conduct to the SEC d. It had no role with Goldman ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 2:22 PM DATE MODIFIED: 9/2/2017 2:24 PM 100. CDOs: a. Are illegal. b. Are collateralized debt obligations. c. Are not securities. d. Could not be hedged.

ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 2:24 PM DATE MODIFIED: 9/2/2017 2:26 PM 101. Why did it take so long at Penn State for the conduct of Jerry Sandusky to emerge? a. Because Jerry Sandusky was not doing anything illegal b. Because state government moves so slowly c. Because of the culture of Penn State d. It did not take a long time – it was reported and acted on immediately Copyright Cengage Learning. Powered by Cognero.

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ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/2/2017 2:27 PM DATE MODIFIED: 9/2/2017 2:28 PM 102. What was a similarity between the culture of Goldman and Penn State? a. Both involved failures by executives to curb pay b. Both involved executives involved in hiding illegal conduct c. Both involved investigations that began immediately and dragged on for years d. None of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Analyze DATE CREATED: 9/2/2017 2:30 PM DATE MODIFIED: 9/2/2017 2:31 PM 103. Whitfield Nurseries obtains many of its products from Mexico and Central America. Whitfield sends gifts to government officials in the countries it does business in so that its purchases can be shipped to the United States very quickly without the customs hassles. Whitfield explains, “Look, this is what it takes to do business in these countries.”

Which ethical school of thought does Whitfield follow? a. Peter Drucker

b. Virtue ethics c. Albert Carr d. Both a and b ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Business and Ethics: How Do They Work Together?

KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 2:32 PM DATE MODIFIED: 9/12/2017 5:09 PM 104. Which of the following is an example Albert Carr uses to illustrate bluffing? a. A job applicant over 40 who dyes his hair b. A woman wearing make-up Copyright Cengage Learning. Powered by Cognero.

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c. A job applicant who changes the list of magazines he reads on the job application d. Carr uses all of the above examples ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Business and Ethics: How Do They Work Together?

KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 2:34 PM DATE MODIFIED: 9/2/2017 2:36 PM 105. When a company announces that an executive is "Leaving to spend more time with his family": a. It means the executive is retiring. b. It means that the executive has a health problem. c. It means that the executive is probably leaving for a different reason. d. It means that the executive is leaving to spend more time with his family.

ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: What Gets in the Way of Ethical Decisions in Business?

KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 2:37 PM DATE MODIFIED: 9/2/2017 2:38 PM 106. In the Penn State case, who is Vicky Triponey? a. She was the attorney general for Pennsylvania b. She was legal counsel for Penn State c. She was the mother of one of the boys who was molested by Jerry Sandusky d. She was the Penn State standards and conduct officer ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Remember DATE CREATED: 9/2/2017 2:40 PM DATE MODIFIED: 9/2/2017 2:42 PM 107. Which of the following are not public relations statements made when an executive leaves a company? a. “His performance was not what the board expected.” b. “He is leaving to spend more time with his family.”

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c. “She is leaving to pursue other interests.” d. “He is leaving for reasons involving his extended family.”

ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: What Gets in the Way of Ethical Decisions in Business?

KEYWORDS: Bloom's: Remember DATE CREATED: 9/2/2017 2:43 PM DATE MODIFIED: 9/12/2017 5:10 PM 108. What was the issue with Valeant‟s accounting? a. Timing on booking of sales revenues b. GAAP vs. non-GAAP accounting c. Structuring and acquisition charges d. All of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: What Gets in the Way of Ethical Decisions in Business?

KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 2:46 PM DATE MODIFIED: 9/2/2017 2:47 PM 109. In the Penn State case, who was charged with criminal activity? a. The president of the university b. Joe Paterno c. The janitor who did not report what he witnessed d. Michael McQueary ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Remember DATE CREATED: 9/2/2017 2:48 PM DATE MODIFIED: 9/2/2017 2:49 PM 110. Who was the key witness against Mr. Sandusky at his trial? a. Joe Paterno b. The Penn State athletic director Copyright Cengage Learning. Powered by Cognero.

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c. The janitor at the football facilities d. Michael McQueary ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Remember DATE CREATED: 9/2/2017 2:50 PM DATE MODIFIED: 9/2/2017 2:51 PM 111. Which of the following is a correct statement reflecting Goldman‟s credo? a. We have a duty to serve our clients well. b. We have a legal fiduciary duty to our clients. c. We have to help clients avoid risky and overly complex investments. d. We have a duty to follow the spirit of the law.

ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/2/2017 2:52 PM DATE MODIFIED: 9/2/2017 2:54 PM 112. Which of the following best reflects the Patriots‟ attitude about rules? a. There is a difference between rule-breaking and rule-bending. b. Taking creative advantage is not breaking any rules. c. There is not a clear line between bend and break. d. All of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/2/2017 2:54 PM DATE MODIFIED: 9/2/2017 2:55 PM 113. What did the Freeh report on Penn State conclude? a. That the university needed to just provide more training for employees regarding minors on campus b. That the administrators had done the best that they could in handling the situation Copyright Cengage Learning. Powered by Cognero.

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c. That the Board of Trustees had acted inappropriately d. That Joe Paterno had fulfilled all of his duties to report ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Remember DATE CREATED: 9/2/2017 2:56 PM DATE MODIFIED: 9/2/2017 2:57 PM 114. What were the NCAA sanctions originally imposed on Penn State? a. The so-called death penalty plus a fine b. There were no sanctions except a fine c. A suspension of the football program d. Penn State was stripped of all of Paterno's 112 wins ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Remember DATE CREATED: 9/2/2017 2:57 PM DATE MODIFIED: 9/2/2017 2:59 PM 115. What statutory duty did the Penn State University officials have regarding Mr. Sandusky's conduct? a. To report it to the proper authorities b. To terminate Mr. Sandusky c. To report it to the NCAA d. To conduct an investigation ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 3:00 PM DATE MODIFIED: 9/2/2017 3:01 PM 116. Who said, “What‟s good for me is good for all shareholders”? a. The chairman of General Motors b. Jeff Dachis of Razorfish Copyright Cengage Learning. Powered by Cognero.

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c. Bill Gates d. Sir Alfred Coke ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Business and Ethics: How Do They Work Together?

KEYWORDS: Bloom's: Remember DATE CREATED: 9/2/2017 3:02 PM DATE MODIFIED: 9/2/2017 3:03 PM 117. Who said a corporation has no conscience? a. The chairman of General Motors b. Jeff Dachis of Razorfish c. Bill Gates d. Sir Alfred Coke ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Business and Ethics: How Do They Work Together?

KEYWORDS: Bloom's: Remember DATE CREATED: 9/2/2017 3:04 PM DATE MODIFIED: 9/2/2017 3:05 PM 118. A customer of a small remodeling firm wrote an online review, “They are the worst. They took 4 weeks longer than they said. The quality of work was poor. I had a really bad experience with them.” Which of the following is accurate about this review? a. It is illegal to post such reviews online.

b. The customer cannot include opinions such as, “They are the worst.” c. The review is legal if the writer was actually a customer of the company. d. The FTC can remove the review from online.

ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Apply DATE CREATED: 9/2/2017 3:06 PM DATE MODIFIED: 9/2/2017 3:08 PM 119. One newspaper headline, following Prudhoe Bay and the refinery explosion read, “BP = Big Problems for Oil Giant.”

Who of the following would feel a connection with the headline test?

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a. Peter Drucker b. Warren Buffett c. Albert Carr d. Robert Halfon ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: What Gets in the Way of Ethical Decisions in Business?

KEYWORDS: Bloom's: Apply DATE CREATED: 9/2/2017 3:09 PM DATE MODIFIED: 9/2/2017 3:11 PM 120. What accident at BP was a precursor to the Deepwater Horizon explosion? a. The Texas City refinery b. Prudhoe Bay pipeline c. The Atlantis rig d. There were no other deepwater wells that BP had that gave it experience and insight ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: What Gets in the Way of Ethical Decisions in Business?

KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/2/2017 3:15 PM DATE MODIFIED: 9/2/2017 3:16 PM 121. Who named BP the world‟s most admired company? a. Fortune b. Business Ethics c. Business Week d. Forbes ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: What Gets in the Way of Ethical Decisions in Business?

KEYWORDS: Bloom's: Remember DATE CREATED: 9/2/2017 3:17 PM DATE MODIFIED: 9/2/2017 3:19 PM 122. What industry practice had BP failed to follow for its Prudhoe Bay pipeline maintenance?

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a. Smart-pigging b. Pipe flow tests c. Pipe inspections d. BP did all of the above ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 3:19 PM DATE MODIFIED: 9/2/2017 3:20 PM Essay 123. Why do companies issue press releases when executives depart that indicate the executives are leaving to spend more time with their families? What are the ethical issues in issuing such statements if they are not true?

The companies issue the family-time statements to avoid further questions about the real reasons ANSWER: for departure. Such statements help the company to avoid further scrutiny of issues that might or have affected financial performance. However, if the executive leaves and does not in fact spend more time with family the result is that both the company‟s and the individual executive‟s credibility are compromised. Those affected by the false impression are the shareholders, the company, the individual executive, the executive‟s family, the new organization that the executive joins after leaving, and the public relations department, officer, and/or company responsible for the release of the family-time statement.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: What Gets in the Way of Ethical Decisions in Business?

KEYWORDS: Bloom's: Analyze DATE CREATED: 9/2/2017 3:34 PM DATE MODIFIED: 9/2/2017 3:36 PM 124. Discuss how the ethical views of the New England Patriots and Goldman Sachs are similar. Also discuss whether the two organizations follow the Drucker or Carr views on ethics in business.

The first similarity between the Patriots and Goldman Sachs is that they are both phenomenally ANSWER: successful organizations in terms of performance in their respective industries.

The second similarity is that both organizations comply with laws and regulations on their face and are able to craft loopholes for themselves in how those regulations apply to their efforts. The Patriots did film, but limited the time of filming. Goldman held morning huddles to avoid having certain people present for the discussions. If a rule does not specifically prohibit conduct, both organizations engage in the conduct.

Both organizations are classic Carr disciplines – there is a game to be played and to get ahead you take advantage of all possible loopholes.

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: False TOPICS: Business and Ethics: How Do They Work Together?

What Gets in the Way of Ethical Decisions in Business Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Analyze DATE CREATED: 9/2/2017 3:36 PM DATE MODIFIED: 9/2/2017 3:40 PM 125. James and Jennifer Stolpa and their five-month old son, Clayton, were stranded outdoors in a snowstorm for 8 days.

They were rescued after James left Jennifer and Clayton in a cave and hiked 30 miles in subfreezing temperatures to get help.

During the time they were stranded, the Stolpas ate Doritos-brand corn chips that they had with them in their car. When they were rescued and taken to the Washoe Medical Center for treatment of severe frostbite, they were visited by boxing champ, George Foreman. Mr. Foreman is a spokesperson for Doritos. His visit to the Stolpas earned national press and television coverage that emphasized the Doritos consumption.

If you were an executive with Doritos, would you have sent Mr. Foreman to the hospital?

The issues here are that of privacy and propriety. The chip maker would be capitalizing on the ANSWER: injuries and suffering of a family with a fairly peripheral fact that they happened to have Doritos in the car. The family can consent to Mr. Foreman's appearance and the cameras rolling, but it is a fairly intense situation for them. The added sales from eating the same chips the stranded family did may not be as significant as the marketing folks may believe.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Business and Ethics: How Do They Work Together?

KEYWORDS: Bloom's: Apply DATE CREATED: 9/2/2017 3:41 PM DATE MODIFIED: 9/2/2017 3:42 PM 126. James Comey, the former director of the Federal Bureau of Investigation (FBI) was fired by President Donald Trump. Following his termination, Mr. Comey gave a memo he had written about his interactions with Mr. Trump to Professor Daniel Richman. Mr. Comey told Professor Richman, “Make sure this gets out there.” Professor Richman then shared the content of the memo to the New York Times. Mr. Comey‟s memo was written on a FBI computer and in FBI offices and facilities. Under the United States Code, 18 U.S.C. § 641 Federal Records Act, federal employees who end their employment are not permitted to take federal property with them, including files, memos, records (electronic and otherwise). After the leak, Mr. Comey testified at a Senate hearing about his meetings with Mr. Trump, his termination, and why he leaked the memo to his friend. He explained, “I didn‟t do it myself for a variety of reasons, but I asked him to, because I thought that might prompt the appointment of a special counsel.” Apply the either/or conundrum in analyzing Mr. Comey‟s decision to leak the memo in violation of the law.

Mr. Comey framed the issue as he had to get the information to the media in order to be sure that ANSWER: his side of the story in his interactions with Mr. Trump was told. However, Mr. Comey did not reflect on the question that avoids the either/or conundrum: is there a way to accomplish what you need to do besides breaking the law? Mr. Comey had alternatives, including his scheduled testimony, asking the inspector general (ethics officers in government agencies), going to the head of the Senate committee where he would testify, or going public himself to explain what had happened.

The story could be told without violating the federal law on not releasing federal documents except through authorized channels.

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

What Gets in the Way of Ethical Decisions in Business?

Bloom's: Analyze 9/2/2017 3:43 PM 9/12/2017 5:14 PM

127. During a recognition event Jesse Stevens, a manager in a large corporation, chose to forego the corporation‟s usual pizza vendor and placed an order with a more expensive pizza vendor with whom he has a personal friendship. When one of Jesse‟s employees asked about the new vendor, Jesse said, “Everyone does this kind of thing. Might as well help your friends out when you can.” Explain Jesse‟s position on ethics in business.

Jesse is an Albert Carr believer. He does not see a conflict of interest; he sees an opportunity to ANSWER: help a friend by giving his company‟s business to the friend, ignoring the costs to the company. His loyalty is divided and it is a conflict of interest, but the cause is noble, that of helping out a friend even if he crosses a few ethical lines in the process.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Business and Ethics: How Do They Work Together?

KEYWORDS: Bloom's: Apply DATE CREATED: 9/2/2017 3:47 PM DATE MODIFIED: 9/2/2017 3:48 PM 128. The Carnegie Deli in New York City was closed for 10 months because utility workers discovered that the deli had tapped into the city gas lines in order to obtain free gas for cooking. The utility determined that the deli had been siphoning gas for at least 6 years. The utility shut off the gas to the deli building until there could be a proper installation of a metered gas line. Discuss why the deli did what it did, why, and what the costs were.

Like so many businesses in this unit the deli was trying to save money. However, the deli was also ANSWER: taking property of another and not being fair to those who are paying customers. The end result was no revenue for 10 months, something that perhaps cost more than the free cooking gas. The decision, like in BP, was a short-term cost-saving one with cost consequences not anticipated in making the decision.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: What Gets in the Way of Ethical Decisions in Business?

KEYWORDS: Bloom's: Analyze DATE CREATED: 9/2/2017 3:48 PM DATE MODIFIED: 9/2/2017 3:49 PM 129. Raymond Randall is an attorney with the Federal Trade Commission. A 19-year veteran with the agency, Mr. Randall was known as a good trial attorney. The FTC charged William Farley, the chairman of Fruit of the Loom, Inc., with violations of the reporting provisions of the Hart-Scott-Rodino Act, when he purchased shares of West PointPepperell Corporations prior to a Fruit of the Loom takeover bid. The Hart-Scott-Rodino Act requires investors to notify the government when their holdings in a firm pass $15 million.

The FTC sought a fine of $10,000 per day against Mr. Farley, for a total of $910,000. Mr. Farley did notify the FTC once Fruit of the Loom made its decision to acquire West Point-Pepperell. Randall was assigned the Farley case. The FTC took a position of refusing to disclose to Farley and his attorneys documents relating to the case. Mr. Randall felt that the documents pointed to weaknesses in the FTC case and supported Mr. Farley's point that he notified the FTC once the takeover position was announced. Mr. Randall leaked the documents to Mr. Farley's lawyer.

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Mr. Farley's lawyers were concerned that they should not be in possession of government documents returned the documents and resigned from the case because they had seen the documents. Mr. Farley's new attorneys went to court demanding production of the documents. The documents were ordered produced by the court. When the FTC refused to produce them, the case against Mr. Farley was dismissed by a federal district judge. a.

Did Mr. Randall do the right thing in disclosing the documents to Farley's attorneys?

b.

Did Mr. Farley's lawyers do the right thing in returning the documents to the FTC? a.

Mr. Randall was engaged in a form of civil disobedience. He knew that the documents were government property and enjoyed the protection of the courts, but he also felt that Mr. Farley was being prosecuted without sufficient evidence. Mr. Randall's principles, values and ethics took control of the situation and he sent the documents as a means of allowing Mr. Farley access to the information. It is important to note that Mr. Randall's action should have been his last choice. Did he go to those within the agency and attempt to resolve the problem? He should also consider his loyalty to his employer and his responsibilities as an attorney before taking the action that he did which was a form of civil disobedience.

ANSWER:

b.

Mr. Farley's attorneys acted with the utmost integrity in returning the documents and resigning from the case. They made some difficult choices and not only followed the law but then resigned from the case because they had seen things they were not permitted to see. Their forthright actions probably helped Mr. Farley with the court and provided great credibility for Mr. Farley and his new attorneys as they successfully pursued the dismissal.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Business and Ethics: How Do They Work Together?

KEYWORDS: Bloom's: Analyze DATE CREATED: 9/2/2017 3:50 PM DATE MODIFIED: 9/2/2017 4:14 PM 130. Frank Hoffman is the CEO of Triple Plus, Inc., a group of four successful restaurants in the Southwest. One member of the Triple Plus board of directors, Sam Wasson, has a daughter, Chelsea Wasson, who has just started Chelsea‟s Cloths, a business that supplies restaurant linens. Wasson has approached Hoffman to explain Chelsea‟s business.

Chelsea‟s Cloths has adopted an environmental emphasis in its operations as a way of countering the industry trend toward the use of paper products in restaurants. Sam Wasson initially recruited Hoffman as CEO, was instrumental in having the board select Hoffman, and is one of Hoffman‟s strong backers. Wasson supported Hoffman when other board members were impatient with his new procedures, policies, and changes.

Ordinarily, when someone approaches Frank Hoffman with information on a new supplier, he takes the information and refers it to the purchasing/supply area or refers the person directly to the manager of purchasing. In this case, Frank personally presented the information to Triple‟s purchasing manager, Deidre Hall. Frank offered Deidre the Chelsea‟s Cloths brochure and card and explained, “She is Sam Wasson‟s daughter. She just graduated in marketing from State University last June and now has her own firm. See what you can do. Our contract with Lila‟s Linens is up for renewal.

Maybe we can do something.”

Deidre evaluated Chelsea‟s and Lila‟s proposals as well as that of an additional firm in making the purchasing decision.

Although the pricing between Chelsea‟s and Lila‟s is equivalent, Chelsea‟s is too young a firm to have a track record, and Deidre is not convinced that Chelsea‟s can handle Triple‟s large account. Given Mr. Hoffman‟s interest, however, Deidre is confused about what recommendation to make. a.

Should Deidre recommend Chelsea‟s firm or offer her true recommendation?

b.

Would it be ethical for Hoffman to change Deidre‟s decision?

c.

What if Wasson had requested bid information so that his daughter could be competitive? Should Deidre supply it?

Should Hoffman direct Deidre to supply it? d.

Can you solve the conflict without offending the director?

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e.

Does Hoffman need to be concerned about how his intervention would reflect the “tone at the top”? Could employees misinterpret his actions? a.

Deidre is in a tense spot with which students can identify. They know the correct decision to ANSWER: be made but may be feeling some pressure from a superior to make a different decision.

Deidre should make her recommendation as she has evaluated it and give her justifications. It is a business decision based on concerns about the viability and reliability of a new business. Deidre can also explain that Chelsea's is price-competitive and that she would be willing to consider Chelsea's once more references and a track record are available. b.

Hoffman should not reverse Deidre because it undermines her authority and confidence as the person responsible for purchasing. Also, Hoffman needs to consider the appearance of board presence and pressure being used to force the company to enter into contracts it would otherwise not choose. Troubles in the company at any time will bring a laundry list of these types of transactions that will prove damaging to Hoffman, Triple Plus and Chelsea's. Hoffman is in a position to explain to Wasson that his daughter's firm looks very good to them and that once she establishes a record with some smaller accounts, purchasing would be willing to have her work with them. c.

No bid information should be given to Chelsea's as a favor to Sam Wasson. See below.

d.

Many corporations' ethics policies require directors to disclose conflicts of interest; i.e., situations in which they or a family member benefit through a contractual relationship with the corporation. Wasson may have that obligation here. e.

Hoffman‟s intervention would send a signal to employees about the way the company does business and how contracts are awarded. It may seem like a one-time intervention, but Hoffman would actually be establishing the tone for the company. Employees would learn that who you know is the standard for behavior and not what‟s best for the company. Hoffman‟s intervention would do damage to the ethical atmosphere of the firm.

Legal Issues Both Sam Wasson and Frank Hoffman are fiduciaries of Triple Plus. The transactions they enter into must be in the best interest of the corporation. Since the purchasing manager's decision has been made, neither should use their authority or influence to change that decision. Further, the disclosure of bid information in advance would be a violation of those fiduciary duties.

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Business and Ethics: How Do They Work Together?

KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/2/2017 3:53 PM DATE MODIFIED: 9/2/2017 4:06 PM 131. Discuss why Goldman Sachs was a disciple of Albert Carr‟s theory of “business is a poker game and we are all bluffing.”

ANSWER:

Students should discuss the “toes to the line” approach of Goldman on analysts vs. strategists and sophisticated investors. Also, Goldman managed to interpret the law so that it did not disclose its position in the Abacus deal nor did it disclose until AFTER the collapse of the market that it was taking positions against those of its clients. Goldman also did not disclose its role in setting prices in the auction-rate securities markets. The students should discuss whether this was a card up the sleeve or whether this was simply bluffing. The case indicates a split in views between Goldman and outsiders on whether they behaved ethically and honored their fiduciary duties. The case is, therefore, a classic illustration of one of the flaws in Carr‟s theory – we all don‟t share the same perception as to what is bluffing and what is a card up the sleeve.

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POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Resolving Ethical Dilemmas in Business KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/2/2017 4:15 PM DATE MODIFIED: 9/2/2017 4:16 PM 132. In May 2010, Martha Stewart gave an interview to the New York Times magazine in which she was asked, “Do you find it odd that the SEC investigated you for insider trading, which resulted in your conviction in 2004, while letting a sociopath like Bernie Madoff run unchecked?” (Mr. Madoff ran a $50 billion Ponzi scheme). Ms. Stewart responded, “Let me just say one thing. They should have been paying closer attention to other things.” She then added that she never stole anyone‟s money like Madoff did.

Evaluate Ms. Stewart‟s comments in the context of ethical analysis, a credo, and her attitude about ethics in business.

Students should discuss the fact that Ms. Stewart sees her conduct as very different from Mr. ANSWER: Madoff‟s but they both broke the law, they both took advantage of other people in business, and they both tried to hide their conduct in order to continue to make money. There is an inability to do the introspection on our own conduct to see what we are doing or have done. Ms. Stewart goes by degrees – it is not that the conduct is wrong – it is how much of the conduct that is done that controls her view of right and wrong. Magnitude is the issue, not the conduct.

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Business and Ethics: How Do They Work Together?

KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/2/2017 4:17 PM DATE MODIFIED: 9/2/2017 4:18 PM 133. An environmentalist stated, following the BP Prudhoe Bay pipe problems, “These companies simply cannot behave responsibly,” and went on to voice objection to opening up ANWR for drilling. Discuss the long-term implications of BP‟s decision to keep maintenance costs low.

The students should discuss that companies have to make decisions based on numbers and risk ANSWER: before them. However, how does one quantify the loss of the ability to drill in ANWR? Also, it‟s difficult to see that connection that is so non-quantifiable. Companies fail to consider long-term and safety issue costs when there is an accident – there was also the effect on BP‟s stock price as a result.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: What Gets in the Way of Ethical Decisions in Business?

KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/2/2017 4:20 PM DATE MODIFIED: 9/2/2017 4:21 PM

True / False Copyright Cengage Learning. Powered by Cognero.

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1. There is agreement among the field of scholars on the definition of stakeholders. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Business and Society: The Tough Issues of Economics, Social Responsibility, and Business KEYWORDS: Bloom's: Remember DATE CREATED: 9/2/2017 4:26 PM DATE MODIFIED: 9/2/2017 4:28 PM 2. Stakeholders include employees and customers. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Business and Society: The Tough Issues of Economics, Social Responsibility, and Business KEYWORDS: Bloom's: Remember DATE CREATED: 9/2/2017 4:29 PM DATE MODIFIED: 9/2/2017 4:30 PM 3. Suppliers are not stakeholders in the corporation. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Business and Society: The Tough Issues of Economics, Social Responsibility, and Business KEYWORDS: Bloom's: Remember DATE CREATED: 9/2/2017 4:30 PM DATE MODIFIED: 9/2/2017 4:31 PM 4. Robert Halfon is a proponent of stakeholder theory of the corporation. a. True b. False ANSWER: False Copyright Cengage Learning. Powered by Cognero.

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POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Business and Society: The Tough Issues of Economics, Social Responsibility, and Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 4:31 PM DATE MODIFIED: 9/2/2017 4:33 PM 5. Robert Halfon sees activist movements as a threat to corporate property rights. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Business and Society: The Tough Issues of Economics, Social Responsibility, and Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 4:33 PM DATE MODIFIED: 9/2/2017 4:34 PM 6. Halfon and Freeman are in agreement on the basics of stakeholder theory. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Business and Society: The Tough Issues of Economics, Social Responsibility, and Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 4:34 PM DATE MODIFIED: 9/2/2017 4:35 PM 7. Halfon and Friedman are in agreement on the social responsibility of a corporation. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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TOPICS:

Business and Society: The Tough Issues of Economics, Social Responsibility, and Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 4:35 PM DATE MODIFIED: 9/2/2017 4:35 PM 8. Edward Freeman brought stakeholder theory into business strategy. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Business and Society: The Tough Issues of Economics, Social Responsibility, and Business KEYWORDS: Bloom's: Remember DATE CREATED: 9/2/2017 4:36 PM DATE MODIFIED: 9/2/2017 4:36 PM 9. A decision not to sell realistic-looking toy guns is an example of an ethical choice not mandated by law. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Apply DATE CREATED: 9/2/2017 4:37 PM DATE MODIFIED: 9/12/2017 5:17 PM 10. Decisions on corporate charitable contributions carry no ethical implications. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 4:38 PM DATE MODIFIED: 9/2/2017 4:40 PM Copyright Cengage Learning. Powered by Cognero.

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11. Milton Friedman supports social spending by businesses if they can show a benefit to the shareholders. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 4:40 PM DATE MODIFIED: 9/12/2017 5:18 PM 12. Stakeholder theory is grounded in ethical egoism. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Business and Society: The Tough Issues of Economics, Social Responsibility, and Business KEYWORDS: Bloom's: Analyze DATE CREATED: 9/2/2017 4:41 PM DATE MODIFIED: 9/12/2017 5:18 PM 13. Outsourcing manufacturing jobs from the United States to developing countries is an example of a utilitarianism application.

a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Social Responsibility and Sustainability KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/2/2017 4:44 PM DATE MODIFIED: 9/12/2017 5:18 PM 14. Once begun, the regulatory cycle cannot be reversed. a. True b. False ANSWER: False POINTS: 1 Copyright Cengage Learning. Powered by Cognero.

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DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 4:46 PM DATE MODIFIED: 9/2/2017 4:47 PM 15. Jennings and Entine propose a model of social responsibility that includes truthfulness. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Business and Society: The Tough Issues of Economics, Social Responsibility, and Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 4:47 PM DATE MODIFIED: 9/2/2017 4:48 PM 16. Milton Friedman follows the agency theory, that corporate managers are agents of shareholders. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Business and Society: The Tough Issues of Economics, Social Responsibility, and Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 4:48 PM DATE MODIFIED: 9/2/2017 4:49 PM 17. Herman Miller follows a policy of compliance with existing environmental laws. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Social Responsibility and Sustainability KEYWORDS: Bloom's: Remember Copyright Cengage Learning. Powered by Cognero.

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DATE CREATED: 9/2/2017 4:49 PM DATE MODIFIED: 9/2/2017 4:51 PM 18. Herman Miller abandoned the use of rain-forest woods over the objections of customers and craftsmen. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Social Responsibility and Sustainability KEYWORDS: Bloom's: Remember DATE CREATED: 9/2/2017 4:51 PM DATE MODIFIED: 9/2/2017 4:51 PM 19. Countrywide went bankrupt. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Remember DATE CREATED: 9/2/2017 4:52 PM DATE MODIFIED: 9/2/2017 4:53 PM 20. Countrywide was acquired by Bank of America. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Remember DATE CREATED: 9/2/2017 4:53 PM DATE MODIFIED: 9/2/2017 4:54 PM 21. Fast-and-easy mortgage loans were largely undocumented loans. a. True b. False ANSWER: True Copyright Cengage Learning. Powered by Cognero.

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POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Remember DATE CREATED: 9/2/2017 4:55 PM DATE MODIFIED: 9/2/2017 4:55 PM 22. The subprime market did not begin until 2007. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Remember DATE CREATED: 9/2/2017 4:56 PM DATE MODIFIED: 9/2/2017 4:56 PM 23. The default rate on subprime mortgage loans is no higher than the default rate for conventional loans. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Remember DATE CREATED: 9/2/2017 4:56 PM DATE MODIFIED: 9/2/2017 4:57 PM 24. Reverse mortgages are a form of subprime lending. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Remember Copyright Cengage Learning. Powered by Cognero.

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DATE CREATED: 9/2/2017 4:57 PM DATE MODIFIED: 9/2/2017 4:57 PM 25. Craigslist is not required by law to screen ads placed on its online service for illegal conduct. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Remember DATE CREATED: 9/2/2017 4:58 PM DATE MODIFIED: 9/2/2017 4:59 PM 26. Companies that donate to Planned Parenthood experience backlash regardless of their donations to the group. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 4:59 PM DATE MODIFIED: 9/2/2017 5:00 PM 27. The increase in minimum wage at Walmart did not affect existing employees. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 5:00 PM DATE MODIFIED: 9/2/2017 5:01 PM 28. Ashley Madison declared bankruptcy. a. True b. False ANSWER: False Copyright Cengage Learning. Powered by Cognero.

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POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Remember DATE CREATED: 9/2/2017 5:01 PM DATE MODIFIED: 9/2/2017 5:02 PM 29. Solyndra declared bankruptcy. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Remember DATE CREATED: 9/2/2017 5:02 PM DATE MODIFIED: 9/2/2017 5:03 PM 30. The New England Compounding Labs declared bankruptcy. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Remember DATE CREATED: 9/2/2017 5:03 PM DATE MODIFIED: 9/2/2017 5:04 PM 31. Chipotle declared bankruptcy. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Remember Copyright Cengage Learning. Powered by Cognero.

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DATE CREATED: 9/2/2017 5:04 PM DATE MODIFIED: 9/2/2017 5:04 PM 32. Fannie Mae no longer exists. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Remember DATE CREATED: 9/2/2017 5:05 PM DATE MODIFIED: 9/2/2017 5:05 PM 33. CVS pulled tobacco products from many of its stores. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Remember DATE CREATED: 9/2/2017 5:06 PM DATE MODIFIED: 9/2/2017 5:06 PM 34. The CEO of Turing Pharmaceuticals is facing criminal charges for overpricing the company‟s prescription drugs. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Remember DATE CREATED: 9/2/2017 5:07 PM DATE MODIFIED: 9/2/2017 5:08 PM 35. Taking voluntary action in the latency stage can reduce the amount of regulation an industry faces. a. True b. False ANSWER: True Copyright Cengage Learning. Powered by Cognero.

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POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Remember DATE CREATED: 9/2/2017 5:08 PM DATE MODIFIED: 9/2/2017 5:09 PM Multiple Choice 36. According to Milton Friedman, an executive imposes taxes on shareholders when: a. He or she uses corporate funds for social causes. b. He or she fails to take all available deductions. c. He or she pays dividends. d. All of the above ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Business and Society: The Tough Issues of Economics, Social Responsibility, and Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 5:09 PM DATE MODIFIED: 9/2/2017 5:13 PM 37. Who said, “All businesses, forewarned, should be proactive, not reactive. They must be prepared to fight fire with fire and, if necessary, should be prepared to take their case all the way to the court”? a. R. Edward Freeman

b. Milton Friedman c. Michael Novak d. Robert Halfon ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Business and Society: The Tough Issues of Economics, Social Responsibility, and Business KEYWORDS: Bloom's: Remember DATE CREATED: 9/2/2017 7:30 PM DATE MODIFIED: 9/2/2017 7:32 PM 38. Which of the following is not considered a stakeholder? a. Competitors Copyright Cengage Learning. Powered by Cognero.

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b. Suppliers c. Customers d. Shareholders e. All of the above are considered stakeholders ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Business and Society: The Tough Issues of Economics, Social Responsibility, and Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 7:33 PM DATE MODIFIED: 9/12/2017 5:20 PM 39. Who believes that putting shareholders first is the wrong approach to corporate governance? a. Edward Freeman b. Milton Friedman c. Marjorie Kelly d. Robert Halfon ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Business and Society: The Tough Issues of Economics, Social Responsibility, and Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 7:35 PM DATE MODIFIED: 9/2/2017 7:36 PM 40. Who would take issue with the philosophy, “Treat employees well because then stockholders will prosper”? a. Immanuel Kant b. Marjorie Kelly c. Michael Novak d. Both a and b e. All of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Business and Society: The Tough Issues of Economics, Social Responsibility, and Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 7:38 PM Copyright Cengage Learning. Powered by Cognero.

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DATE MODIFIED: 9/2/2017 7:40 PM 41. What was the issue with the Ice-T Body Count CD? a. People objected because the lyrics suggested killing police officers b. The lyrics were obscene c. The CD was not selling d. None of the above ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Remember DATE CREATED: 9/2/2017 7:41 PM DATE MODIFIED: 9/2/2017 7:42 PM 42. Who said, “The question is not about business, it‟s about responsibility”? a. President Clinton b. Charlton Heston c. Tracy Morrow d. David Geffen ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Remember DATE CREATED: 9/2/2017 7:42 PM DATE MODIFIED: 9/2/2017 7:43 PM 43. Who said, “I don‟t think that people in the media can say that advertising influences consumers to buy cars or shirts, and then argue that violence on television or in music has no impact”? a. President Bush

b. Charlton Heston c. CEO of Nicole Miller d. David Geffen ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Remember DATE CREATED: 9/2/2017 7:44 PM Copyright Cengage Learning. Powered by Cognero.

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DATE MODIFIED: 9/2/2017 7:45 PM 44. What group sold its Time Warner stock following the Ice-T Body Count CD release? a. NOW b. NEA c. Philadelphia municipal pension fund d. Madonna ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Remember DATE CREATED: 9/2/2017 7:45 PM DATE MODIFIED: 9/2/2017 7:46 PM 45. Who said, “I don‟t condone cop killing. [But] to reach a more just and equitable society everybody‟s voice must be heard”? a. Madonna

b. Nicole Miller c. David Geffen d. Jerry of Ben & Jerry‟s Ice Cream ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Remember DATE CREATED: 9/2/2017 7:47 PM DATE MODIFIED: 9/2/2017 7:49 PM 46. Who spoke in protest of the Ice-T CD at Time Warner‟s annual meeting? a. Madonna b. Charlton Heston c. David Geffen d. Jerry of Ben & Jerry‟s Ice Cream ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Remember DATE CREATED: 9/2/2017 7:49 PM Copyright Cengage Learning. Powered by Cognero.

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DATE MODIFIED: 9/2/2017 7:50 PM 47. What past changes had Time Warner made based on public protests on content? a. Withdrew Madonna‟s book b. Withdrew Last Temptation of Christ c. Corrected Porky Pig‟s stutter d. All of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Remember DATE CREATED: 9/2/2017 7:50 PM DATE MODIFIED: 9/2/2017 7:51 PM 48. What percentage of total record sales is rap music? a. 10% b. 20% c. 30% d. 18% ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Remember DATE CREATED: 9/2/2017 7:52 PM DATE MODIFIED: 9/2/2017 7:53 PM 49. Following Body Count: a. Ice-T left the Time Warner label. b. Ice-T became impoverished. c. Ice-T became a detective on Law and Order. d. a, b and c e. a and c only ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Remember Copyright Cengage Learning. Powered by Cognero.

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DATE CREATED: 9/2/2017 7:53 PM DATE MODIFIED: 9/2/2017 7:54 PM 50. Following Body Count: a. Time Warner went exclusively into rap music. b. Time Warner shifted strategically into family-oriented entertainment. c. Time Warner released no more rap albums. d. Both b and c ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Remember DATE CREATED: 9/2/2017 7:55 PM DATE MODIFIED: 9/2/2017 7:56 PM 51. Businesses must face social issues because: a. It is the right thing to do. b. They can affect profits. c. The U.S. Constitution requires them to do so. d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Business and Society: The Tough Issues of Economics, Social Responsibility, and Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 7:56 PM DATE MODIFIED: 9/2/2017 7:58 PM 52. The Body Shop founder Anita Roddick said that she didn‟t care about making money; she only cared about making the world a better place. Into which school of social responsibility would you place Ms. Roddick? a. Inherence

b. Enlightened self-interest c. Invisible hand d. Social responsibility ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Business and Society: The Tough Issues of Economics, Social Responsibility, and Copyright Cengage Learning. Powered by Cognero.

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Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 7:58 PM DATE MODIFIED: 9/2/2017 7:59 PM 53. Which reflects Marjorie Kelly‟s financial model for corporations? a. Profits = Revenues – Cost b. Profits = Revenues – Employee Income + Cost of Materials c. Profits = Revenues – Cost + Shareholder distributions d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Business and Society: The Tough Issues of Economics, Social Responsibility, and Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 8:01 PM DATE MODIFIED: 9/2/2017 8:02 PM 54. Chipotle‟s setbacks in sales were: a. The result of poor menu choices. b. The result of food safety issues. c. The result of employee wages. d. The result of donations Chipotle made to certain groups.

ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Remember DATE CREATED: 9/2/2017 8:02 PM DATE MODIFIED: 9/2/2017 8:04 PM 55. XYZ Corporation expects its managers and employees to testify at congressional hearings and appear before state legislatures to advocate policy positions on everything from taxes to activities in national parks. What risk does XYZ Corporation have because of this policy? a. None because social responsibility involvement enhances the reputation of XYZ

b. Backlash from those who feel differently about these issues c. Shareholder sell-offs because of the positions taken d. Both b and c ANSWER: d POINTS: 1 DIFFICULTY: Moderate Copyright Cengage Learning. Powered by Cognero.

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QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Analyze DATE CREATED: 9/2/2017 8:05 PM DATE MODIFIED: 9/2/2017 8:07 PM 56. Who said that the social responsibility of business is to earn a profit? a. Warren Buffett b. Albert Carr c. Milton Friedman d. None of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Business and Society: The Tough Issues of Economics, Social Responsibility, and Business KEYWORDS: Bloom's: Remember DATE CREATED: 9/2/2017 8:11 PM DATE MODIFIED: 9/2/2017 8:13 PM 57. Which of the following‟s views is aligned most closely with those of Milton Friedman? a. Robert Halfon b. Anita Roddick of the Body Shop c. Edward Freeman d. Both b and c e. None of the above ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Business and Society: The Tough Issues of Economics, Social Responsibility, and Business KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/2/2017 8:13 PM DATE MODIFIED: 9/2/2017 8:15 PM 58. John Mackey‟s views are similar to those of which of the following? a. Milton Friedman b. Robert Halfon c. Marjorie Kelly d. Jon Entine and Marianne Jennings ANSWER: c Copyright Cengage Learning. Powered by Cognero.

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POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Business and Society: The Tough Issues of Economics, Social Responsibility, and Business KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/2/2017 8:15 PM DATE MODIFIED: 9/2/2017 8:17 PM 59. The conflicting values in the Time Warner Ice-T case are: a. First Amendment rights and duty of business to its larger community. b. Conflicts of interest and personal honesty. c. There were no conflicting values because everyone agreed with Time Warner. d. Purchasing conflicts and investments. e. None of the above ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 8:17 PM DATE MODIFIED: 9/2/2017 8:20 PM 60. Which of the following is not a stakeholder in a business? a. Suppliers b. Customers c. Employees d. Community members e. All of the above are stakeholders ANSWER: e POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Business and Society: The Tough Issues of Economics, Social Responsibility, and Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 8:20 PM DATE MODIFIED: 9/2/2017 8:22 PM 61. The definition of “stakeholder”: a. Is precise and definitive. b. Is very limited.

Copyright Cengage Learning. Powered by Cognero.

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c. Is not yet agreed upon by scholars. d. Was developed by Milton Friedman. e. None of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Business and Society: The Tough Issues of Economics, Social Responsibility, and Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 8:22 PM DATE MODIFIED: 9/2/2017 8:24 PM 62. The Turing/Shkreli pricing model would be aligned with which person‟s views on social responsibility? a. Marjorie Kelly b. John Mackey c. Milton Friedman d. Edward Freeman ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Business and Society: The Tough Issues of Economics, Social Responsibility, and Business KEYWORDS: Bloom's: Apply DATE CREATED: 9/2/2017 8:24 PM DATE MODIFIED: 9/2/2017 8:26 PM 63. Stakeholder Theory: a. Requires business to consider other groups beyond shareholders when making decisions. b. Is a free market theory. c. Requires property rights before allowing input on a decision. d. Both b and c e. None of the above ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Business and Society: The Tough Issues of Economics, Social Responsibility, and Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 8:27 PM DATE MODIFIED: 9/2/2017 8:28 PM Copyright Cengage Learning. Powered by Cognero.

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64. Stakeholders in the issue of increasing the minimum wage include: a. All employees. b. Customers. c. Shareholders. d. Both a and b e. All of the above ANSWER: e POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Business and Society: The Tough Issues of Economics, Social Responsibility, and Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 8:29 PM DATE MODIFIED: 9/2/2017 8:31 PM 65. Milton Friedman‟s view on executive compensation is: a. That government should control it. b. That there should be established ranges. c. That shareholders should undertake controls if they deem it necessary. d. None of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Business and Society: The Tough Issues of Economics, Social Responsibility, and Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 8:31 PM DATE MODIFIED: 9/2/2017 8:33 PM 66. Who were the stakeholders in the subprime mortgage market? a. Mortgage lenders b. Borrowers c. Investors in mortgage-backed debt instruments d. Both a and b e. All of the above ANSWER: e POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory Copyright Cengage Learning. Powered by Cognero.

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KEYWORDS: Bloom's: Apply DATE CREATED: 9/2/2017 8:34 PM DATE MODIFIED: 9/12/2017 5:22 PM 67. Who said, “All sensible businessmen prefer to be truthful, but they seldom feel inclined to tell the whole truth”? a. Marjorie Kelly b. Adam Smith c. Michael Novak d. Albert Carr ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Business and Society: The Tough Issues of Economics, Social Responsibility, and Business KEYWORDS: Bloom's: Remember DATE CREATED: 9/2/2017 8:38 PM DATE MODIFIED: 9/2/2017 8:39 PM 68. Social responsibility by a business: a. Is a doctrine developed by economist Milton Friedman. b. Requires a business to examine how its decisions affect its stakeholders, not just its shareholders. c. Is not part of a discussion of business ethics. d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Business and Society: The Tough Issues of Economics, Social Responsibility, and Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 8:40 PM DATE MODIFIED: 9/2/2017 8:41 PM 69. Rain forest chic: a. Is a Ben & Jerry‟s flavor of ice cream. b. Is a label for branding strategies that focus on social responsibility. c. Is a slogan for the Body Shop. d. Is a Friedman term for social responsibility.

ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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TOPICS:

Business and Society: The Tough Issues of Economics, Social Responsibility, and Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 8:41 PM DATE MODIFIED: 9/2/2017 8:43 PM 70. Whom does Marjorie Kelly believe should be rewarded the most for the creation of wealth in a corporation? a. The shareholders b. The executive team c. The employees d. a and b e. All of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Business and Society: The Tough Issues of Economics, Social Responsibility, and Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 8:43 PM DATE MODIFIED: 9/2/2017 8:44 PM 71. In which stage of the regulatory cycle do scientific studies document an evolving issue? a. Latency b. Awareness c. Activism d. Regulation/litigation ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 8:45 PM DATE MODIFIED: 9/2/2017 8:46 PM 72. What was the impact of the Community Reinvestment Act on Fannie Mae? a. It had to stop purchasing mortgage loans b. It could only purchase loans that were not high credit risks c. It enabled Fannie Mae to expand its portfolio substantially d. None of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate Copyright Cengage Learning. Powered by Cognero.

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QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 8:46 PM DATE MODIFIED: 9/12/2017 5:22 PM 73. Who were “Friends of Angelo”? a. Friends of Angelo were the members of Countrywide‟s board. b. Friends of Angelo were those who received favorable and expedited mortgage decisions through Angelo Mozilo. c. Members of Countrywide‟s staff who received favorable mortgage terms.

d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 8:48 PM DATE MODIFIED: 9/2/2017 8:50 PM 74. What is the order of the stages in the regulatory cycle? a. Latency, awareness, activism, and regulation/litigation b. Latency, activism, awareness, regulation/litigation c. Latency, activism, regulation/litigation, awareness d. Latency, regulation/litigation, awareness, activism ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 8:51 PM DATE MODIFIED: 9/2/2017 8:52 PM 75. As the regulatory cycle progresses: a. Options increase and cost decreases. b. Options decrease and cost decreases. c. Options decrease and cost increases. d. Options increase and cost increases.

ANSWER: c POINTS: 1 DIFFICULTY: Moderate Copyright Cengage Learning. Powered by Cognero.

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QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 8:52 PM DATE MODIFIED: 9/2/2017 8:54 PM 76. Where in the regulatory cycle would you place text messaging? a. Latency b. Awareness c. Activism d. Regulation/Litigation ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 8:54 PM DATE MODIFIED: 9/2/2017 8:56 PM 77. Which of the following is not a stage in the regulatory cycle? a. Awareness b. Activism c. Latency d. Ethical options e. All of the above are stages ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 8:56 PM DATE MODIFIED: 9/2/2017 8:58 PM 78. Place the following in the order of their progression in the regulatory cycle:    

Activism Awareness Latency Regulation/Litigation

a. I, II, III, IV Copyright Cengage Learning. Powered by Cognero.

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b. II, III, I, IV c. III, I, II, IV d. III, II, I, IV e. None of the above is the correct order ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 8:58 PM DATE MODIFIED: 9/2/2017 9:00 PM 79. Why does a company act voluntarily in implementing procedures and equipment beyond the statutory requirements? a. To avoid criminal penalties if there is ever a misstep b. For purposes of good relations with regulators and community c. To maximize shareholder value over the long term d. Both b and c e. a, b and c ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Business and Society: The Tough Issues of Economics, Social Responsibility, and Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/2/2017 9:01 PM DATE MODIFIED: 9/2/2017 9:03 PM 80. Who created Fannie Mae? a. Shareholders b. The federal government c. The Federal National Insurance Company d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Remember DATE CREATED: 9/2/2017 9:04 PM DATE MODIFIED: 9/2/2017 9:05 PM Copyright Cengage Learning. Powered by Cognero.

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81. Which of the following lists did Fannie Mae not make? a. Fortune‟s Best Companies for Minorities b. Best Companies for Working Mothers c. Business Ethics Most Ethical Company in America d. All of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Remember DATE CREATED: 9/2/2017 9:15 PM DATE MODIFIED: 9/2/2017 9:16 PM 82. What was branded in the brains of Fannie Mae employees? a. That ethics and integrity are critical to Fannie Mae‟s success b. 6.46 c. Compliance with SOX requirements d. Diversity ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Remember DATE CREATED: 9/2/2017 9:16 PM DATE MODIFIED: 9/2/2017 9:18 PM 83. Fannie Mae‟s policies on amortization: a. Met accounting standards. b. Were developed by the CFO and controller. c. Were adjusted for arbitrary volatility. d. All of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 12:27 PM DATE MODIFIED: 9/3/2017 12:29 PM 84. How did Fannie Mae discover the flaws in its computer model for amortization?

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a. The OFHEAO report disclosed them b. Former employee Roger Barnes raised concerns c. Both a and b d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 12:30 PM DATE MODIFIED: 9/3/2017 12:31 PM 85. What was the amount of Fannie Mae‟s restatement of its revenue? a. $125 million b. $90 million c. $115 million d. $6.3 billion ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 12:31 PM DATE MODIFIED: 9/3/2017 12:33 PM 86. The music industry‟s warning labels on CDs: a. Represent a new regulation of rock music. b. Are an unconstitutional infringement of free speech. c. Are a means of halting the regulatory cycle. d. Were voluntary and initiated originally because of industry self-examination. e. None of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 12:33 PM DATE MODIFIED: 9/3/2017 12:35 PM

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87. Why does John Mackey believe many people go into business? a. To maximize profits b. To lift wages of employees c. To offer a service or product that meets a need d. For personal wealth ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Business and Society: The Tough Issues of Economics, Social Responsibility, and Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 12:35 PM DATE MODIFIED: 9/3/2017 12:37 PM 88. Who were the stakeholders in the CVS decision on cigarette sales? a. Smokers b. CVS shoppers c. Public health programs d. All of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 12:37 PM DATE MODIFIED: 9/3/2017 12:39 PM 89. John Mackey believes which of the following? a. He agrees with Kelly's views b. He believes "service to others" should be the corporate mantra c. He believes that Friedman's views are correct d. He believes that Halfon's views are correct ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Business and Society: The Tough Issues of Economics, Social Responsibility, and Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 12:40 PM DATE MODIFIED: 9/3/2017 12:42 PM Copyright Cengage Learning. Powered by Cognero.

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90. What happened to the prosecutors in the Stevens case? a. They were cleared of any misconduct b. They were disbarred c. One committed suicide d. None of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Government as a Stakeholder KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 12:42 PM DATE MODIFIED: 9/3/2017 12:44 PM 91. What was the outcome of the case against the Duke LaCrosse players? a. They were all convicted b. They were all acquitted c. The charges were dropped d. The players had both civil and criminal liability ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Government as a Stakeholder KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 12:44 PM DATE MODIFIED: 9/3/2017 12:45 PM 92. Which of the following is a characteristic of the gun regulatory debates? a. Accurate factual information b. Bipartisan agreement c. Emotion d. All of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 12:46 PM DATE MODIFIED: 9/3/2017 12:48 PM Copyright Cengage Learning. Powered by Cognero.

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93. Which of the following best describes Craigslist's liability for content on its site? a. It is liable for any criminal activity that results from posting on its site b. It does not have an obligation to remove ads that involve criminal activity c. It must screen all ads d. None of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 12:48 PM DATE MODIFIED: 9/3/2017 12:49 PM 94. What happened when Smith & Wesson broke rank and decided to settle the gun litigation? a. It was touted as a good company and its earnings went up b. It lost its customer base c. It slowed down the gun regulatory cycle d. It was able to sell more guns at higher prices ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 12:50 PM DATE MODIFIED: 9/3/2017 12:51 PM 95. What types of ethical issues occur at the individual level? a. Inflated travel expenses b. Falsification of financial statements c. Gray area activities d. Cheating on exams ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Social Responsibility and Sustainability KEYWORDS: Bloom's: Apply DATE CREATED: 9/3/2017 12:52 PM DATE MODIFIED: 9/3/2017 12:54 PM 96. What types of ethical issues occur at the societal level?

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a. Dabbling in gray areas b. Falsification of records c. Cheating on exams d. Insider trading ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Social Responsibility and Sustainability KEYWORDS: Bloom's: Apply DATE CREATED: 9/3/2017 12:55 PM DATE MODIFIED: 9/3/2017 12:57 PM 97. What affects company/organizational lapses? a. Incentive plans b. Individual ethical standards c. Ethics codes d. Ethics training ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Social Responsibility and Sustainability KEYWORDS: Bloom's: Apply DATE CREATED: 9/3/2017 12:57 PM DATE MODIFIED: 9/3/2017 12:58 PM 98. At what level of ethical lapses is the use of PEDs by players? a. Individual b. Company/organization c. Industry d. Society ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Social Responsibility and Sustainability KEYWORDS: Bloom's: Apply DATE CREATED: 9/3/2017 12:59 PM DATE MODIFIED: 9/3/2017 1:00 PM 99. What happened to the prosecutor in the Duke LaCrosse case?

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a. He was re-elected after winning the case against the players b. He went on to become North Carolina‟s attorney general c. He was disbarred d. Both a and b ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Government as a Stakeholder KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 1:00 PM DATE MODIFIED: 9/3/2017 1:02 PM 100. Which is the number one cause of mortgage foreclosures? a. Loss of employment b. Negative equity c. Poor credit score d. Low down payment ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 1:03 PM DATE MODIFIED: 9/3/2017 1:04 PM 101. What happened to Solyndra? a. It successfully developed a mass market for solar panels b. It was able to sell its share publicly and expand its production after initial government funding c. It is in litigation with the state of California over an environmental cleanup from its operations d. It avoided bankruptcy with additional capital infusions from the Department of Energy ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Government as a Stakeholder KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 1:04 PM DATE MODIFIED: 9/3/2017 1:07 PM 102. What happened to Stanford as a result of its submissions for federal reimbursements for research?

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a. Stanford repaid the funds and was not affected by the dispute b. Stanford‟s president was forced to resign c. Stanford was banned from receiving federal research dollars d. Both b and c ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 1:08 PM DATE MODIFIED: 9/3/2017 1:09 PM 103. Who said, “The household is run on wildly democratic principles. We all vote on what we want”? a. Milton Friedman b. Marjorie Kelly c. Asma al-Assad d. John Mackey, speaking about employee input at Whole Foods ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Social Responsibility and Sustainability KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 1:10 PM DATE MODIFIED: 9/3/2017 1:12 PM 104. From which group(s) did Walmart experience backlash when it raised its minimum wage? a. From public sector unions b. From consumers because of price increases c. From employees d. All of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 1:13 PM DATE MODIFIED: 9/3/2017 1:14 PM 105. What was unique about the compounding industry?

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a. It was neither a state nor federally regulated industry b. It had pressure to produce compounds quickly and cheaply c. It did not always comply with regulatory requirements d. It had no ethical issues ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 1:15 PM DATE MODIFIED: 9/3/2017 1:17 PM 106. What issue affects farmers' markets? a. Outbreaks of Salmonella, E-Coli, and Hepatitis b. That their growth is cutting grocery margins c. That new federal regulations apply to them d. None of the above ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 1:17 PM DATE MODIFIED: 9/3/2017 1:19 PM 107. What impact has the demand for biofuels had in countries like Guatemala? a. High employment and increasing incomes b. Introduction of farming technology c. Lower taxes d. Less food and higher prices ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Social Responsibility and Sustainability KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 1:19 PM DATE MODIFIED: 9/3/2017 1:21 PM 108. What issue did the federal auditor raise about Stanford's research overhead expenses?

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a. That the paperwork was not complete b. That there are no overhead reimbursement for grants c. That the overhead expenses submitted did not seem right d. That the overhead expenses violated the rules ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 1:21 PM DATE MODIFIED: 9/3/2017 1:22 PM 109. With what crime was Martin Shkreli, the former CEO of Turing, charged? a. Price-fixing b. Price gauging c. Securities fraud d. All of the above ANSWER: c POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 1:23 PM DATE MODIFIED: 9/3/2017 1:25 PM 110. What happened with Solyndra? a. It was a successful green energy company b. It was forced to file bankruptcy c. It was acquired by a Chinese firm d. It repaid its government funding ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Government as a Stakeholder KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 1:26 PM DATE MODIFIED: 9/3/2017 1:27 PM 111. What did Herman Miller gain through its environmental initiatives?

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a. Extra costs b. Solid reputation with regulators c. Cost savings d. b and c only e. a and b only f. All of the above ANSWER: f POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Social Responsibility and Sustainability KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 1:28 PM DATE MODIFIED: 9/3/2017 1:30 PM 112. Former Prosecutor Michael Nifong of Durham County, North Carolina: a. Withheld evidence from defense attorneys. b. Conducted line-ups inappropriately. c. Embezzled from the county. d. Both a and b e. a, b and c ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Government as a Stakeholder KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 1:30 PM DATE MODIFIED: 9/3/2017 1:33 PM 113. The Duke LaCrosse players: a. Were ultimately found guilty of some criminal charges. b. Were exonerated by the North Carolina attorney general. c. Had their charges dropped by Michael Nifong. d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Government as a Stakeholder KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 1:33 PM Copyright Cengage Learning. Powered by Cognero.

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DATE MODIFIED: 9/3/2017 1:35 PM 114. Which of the following was not a response to the series of tragedies that involved the use of guns? a. Increased federal controls on background checks b. New York passing the strictest gun laws in the country c. The increased activity of the NRA d. All of the above ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 1:35 PM DATE MODIFIED: 9/3/2017 1:37 PM 115. Why did a co-founder of the Susan Komen Foundation resign from the board of the Foundation? a. The Foundation refused to donate to Planned Parenthood b. The Foundation donated to Planned Parenthood c. The Foundation withdrew its donation to Planned Parenthood d. All of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 1:37 PM DATE MODIFIED: 9/12/2017 5:28 PM 116. Uber, the ride service, operated for 5 years in cities throughout the United States and Europe with no licensing, with no employees (using only independent contractors), and no federal regulation. Why was Uber able to do so? a. Uber is exempt from regulation because it is an international company

b. Uber was in the latency stage of regulation c. Uber served its stakeholders well d. Uber had no competitors ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Apply DATE CREATED: 9/3/2017 1:40 PM Copyright Cengage Learning. Powered by Cognero.

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DATE MODIFIED: 9/3/2017 1:42 PM 117. Who told Fannie Mae that when it came to compliance with accounting rules, “You weren‟t even on the page”? a. Its external auditor, Deloitte Touche b. The OFHEO c. Both a and b d. Fannie Mae did not have trouble with its accounting; it was a victim of the subprime lending market collapse ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 1:43 PM DATE MODIFIED: 9/3/2017 1:45 PM 118. What characterizes the music industry on issues of social responsibility? a. It has very little public backlash b. Public backlash comes and goes in waves c. It has not had backlash since it agreed to put warnings on music d. The First Amendment protects the music industry from any backlash ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 1:45 PM DATE MODIFIED: 9/3/2017 1:47 PM 119. Which of the following layers of ethical issues will ethics training curb or prevent? a. Company level issues b. Industry level issues c. Individual ethical lapses d. None of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 1:47 PM Copyright Cengage Learning. Powered by Cognero.

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DATE MODIFIED: 9/3/2017 1:49 PM 120. What caused the use of PEDs to spread throughout the baseball industry? a. Lack of enforcement by individual ball clubs b. Lack of enforcement at the league level c. Competition d. All of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 1:50 PM DATE MODIFIED: 9/3/2017 1:51 PM 121. What was the fate of the New England Compounding Labs? a. While its principals ended up with criminal charges and convictions, the company was able to survive b. The company declared bankruptcy c. The company was acquired by CVS d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 1:52 PM DATE MODIFIED: 9/3/2017 1:53 PM 122. What legal issues emerged at Ashley Madison? a. It was sued for alienation of affection b. A data breach resulted in a class action suit being filed c. The FTC began an investigation of the company d. All of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 1:54 PM Copyright Cengage Learning. Powered by Cognero.

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DATE MODIFIED: 9/3/2017 1:55 PM 123. Who testified before Congress on the importance of ethics in business? a. Bernie Ebbers b. Franklin Raines c. Jeffrey Skilling d. Richard Scrushy ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 8:50 PM DATE MODIFIED: 9/3/2017 8:52 PM Essay 124. List those affected when employees cheat on their travel expenses.

ANSWER:  The employee who cheats on the expenses  Potentially, employee‟s family and creditors if employee is terminated  Company  Shareholders  Other employees  Customers because company expenses go up and company may charge more POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Business and Society: The Tough Issues of Economics, Social Responsibility, and Business KEYWORDS: Bloom's: Apply DATE CREATED: 9/1/2017 8:07 PM DATE MODIFIED: 9/1/2017 8:10 PM 125. Explain who is affected when dog walkers don't scoop up after their dogs.

Those affected are those who live in the area (smells, hygiene); those who walk in the area ANSWER: (stepping in it); those who own property in the area (property values); and businesses in the area (it's tough to attract customers when there are smells and problems walking).

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Business and Society: The Tough Issues of Economics, Social Responsibility, and Business Copyright Cengage Learning. Powered by Cognero.

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KEYWORDS: Bloom's: Apply DATE CREATED: 9/1/2017 8:10 PM DATE MODIFIED: 9/1/2017 8:11 PM 126. Lee Iacocca, chairman and CEO of Chrysler Corporation, announced on January 27, 1988, that the automaker would be closing its Kenosha, Wisconsin, plant. Iacocca and his board of directors were under significant pressure from shareholders due to Chrysler‟s continuing poor financial performance. Chrysler had acquired the Kenosha plant when it purchased American Motors Corporation in 1987. In his announcement, Iacocca blamed national trade policy for Chrysler‟s declining sales and resultant earnings problems.

At the Kenosha plant, which manufactured the Dodge Omni and the Plymouth Horizon, 5,500 of the 6,500 workers were to be laid off and production moved to a Detroit plant. Kenosha, a city of 77,000 on the shores of Lake Michigan, depended heavily on Chrysler‟s presence.

The announcement of the closing came at a critical time. Chrysler was negotiating to renew its contract with the United Auto Workers (UAW). Also, the Kenosha plant carried a history of union financial assistance. The UAW had loaned American Motors over $60 million to keep the Kenosha plant running, and Chrysler had assumed the loan obligations as part of the acquisition. Also, Wisconsin had paid $5 million for job training at the Kenosha plant in 1987 after Chrysler promised that the plant would build Omnis and Horizons for at least five more years.

Peter Pfaff, a member of the UAW Local 72 of Kenosha and an employee at the plant since 1972, said: “I was there.

We‟ve got it on tape and in writing. They said they‟d stay. Greenwald (then Chrysler Motors chairman) keeps saying Chrysler never said that, but I was there when he said it.”

The Kenosha local threatened to delay negotiations on renewing the national contract with 64,000 workers. After the threat, Iacocca announced that Chrysler would establish a $20 million trust fund to aid the 5,500 Kenosha workers through housing payments and educational funding. This fund would be in addition to severance pay, extended unemployment benefits, and repayment of the UAW loans. While denying that Chrysler was setting a precedent, Iacocca declared it had a “moral obligation” to Kenosha.

Wisconsin threatened to sue Chrysler over the job training program but agreed to hold off in exchange for Iacocca‟s promise to extend production at the plant for several months into the fall of 1988.

Iacocca stated that Chrysler was “guilty as hell of being cockeyed optimists. Blame us for being dumb managers, for spending $200 million to put two old cars (the Chrysler Fifth Avenue and the Dodge Diplomat) in an eighty-six-year-old plant, but please don‟t call me a liar when I‟ve got to close it sooner than I thought.” Iacocca sought congressional support for converting the Kenosha plant to defense work by Chrysler.

Chrysler and the UAW negotiated a contract that provided additional unemployment benefits for the 5,500 laid-off workers and more job security for the 1,000 workers who would transfer to other Chrysler operations. Ultimately, the plant closing resulted in 3,700 layoffs.

By mid-1990, Kenosha was enjoying unprecedented economic growth. At a July 1990 ceremony in which engineers detonated explosives to destroy the 250-foot-high smokestack of the Chrysler plant, dignitaries and former workers cheered. Kenosha resident T. R. Garcia said at the blasting, “I think it‟s about time they got rid of it. What we need to do is develop the lake front, and this thing is the last to leave.” City planner Ray Forgianni, Jr., added, “The community‟s image is probably the best it‟s been in 100 years. The closing was almost like a catalyst. The handwriting was on the wall-the economy needed to diversify.” a.

Did Chrysler have a moral obligation to the Kenosha workers and Wisconsin, or was it just responding to pressure? b.

Do arrangements like Chrysler had with the UAW loans and Wisconsin interfere with the ability to make business decisions? Review Iacocca‟s quote on business mistakes as you evaluate the issue. c.

Were the shareholders required to pay twice for the closing – once in severance pay and again in extended benefits? d.

Was Chrysler simply putting its duty to shareholders above its duty to Wisconsin, Kenosha, and its workers? Is this proper? Is it ethical? e.

Was Chrysler‟s action just a catalyst for needed economic development?

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f.

Iacocca, after having stepped down as chairman of Chrysler, made a takeover offer for Chrysler in 1995. What would Chrysler‟s ethical culture be like if Mr. Iacocca had succeeded in his takeover bid? a.

There are differing schools of thought in ethics regarding the obligation of employers who ANSWER: close down plants to the workers from that plant and the communities in which they are located.

One group imposes an obligation on the employer to leave the town whole. This obligation requires placement of the workers and economic redevelopment of the community all at the employer's cost with some contributions from governmental entities.

Another school of thought sees such additional obligations as a double tax to shareholders. Not only must they bear the cost of the cutbacks and economic downturn, they must now ensure that the workers and the community do not have to share in such losses. This view advances the notion that workers are always insulated from financial losses and economic downturns and may not have the appropriate incentives to retool. b.

Obligations to restore the workers and communities add costs to downsizing and prevent flexibility in making allocation and resource decisions. An additional cost is added to becoming more efficient and the incentives may make it easier to remain inefficient. c.

The rights of shareholders are often ignored in the interest of protecting the employees and communities. On the other hand, the communities give the employers the right to use the air and water sheds and the opportunity to benefit from the support of the government resources and often tax breaks. d.

Yes, Chrysler defined its duty as first and foremost to its shareholders. Businesses do have a primary obligation to their investors, but Chrysler did take on more investors here (community). e.

Chrysler‟s withdrawal may have ultimately benefited the community.

f.

Mr. Iacocca‟s focus would be on Chrysler‟s earnings. There are ethical risks with such a focus.

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Business and Society: The Tough Issues of Economics, Social Responsibility, and Business KEYWORDS: Bloom's: Analyze DATE CREATED: 9/2/2017 4:07 PM DATE MODIFIED: 9/2/2017 4:09 PM 127. Describe a situation in which Dr. Friedman would support a corporation taking voluntary or socially responsible action.

ANSWER:

Dr. Friedman would allow a corporation to take voluntary or socially responsible actions if its managers could show a connection between those actions and profits for the shareholders. An example would be installing scrubbers on a plant so as to reduce pollution when the reduction of that pollution saves on health care costs for employees, allows the company to recruit better employees, and reduces taxes in the area for the company and employees.

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Business and Society: The Tough Issues of Economics, Social Responsibility, and Business KEYWORDS: Bloom's: Analyze DATE CREATED: 9/3/2017 1:56 PM Copyright Cengage Learning. Powered by Cognero.

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DATE MODIFIED: 9/3/2017 1:57 PM 128. Describe Dayton-Hudson‟s experience with charitable contributions.

Dayton-Hudson was boycotted by pro-life customers when it gave to Planned Parenthood. When it ANSWER: halted the contributions to Planned Parenthood, it was boycotted by its pro-choice customers. The experience of the company is an illustration of the sensitivity of some social issues and that companies can be caught in situations in which they lose customers because of positions they take on social issues.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/3/2017 1:58 PM DATE MODIFIED: 9/3/2017 2:00 PM 129. Using the MLB steroids case as an example, explain how unethical choices by some players harms players who comply with the rules.

ANSWER:

Students should discuss the competitive disadvantage non-using players suffer when they comply and there is no enforcement. Also, the students should discuss that there is no way to compare players‟ performances when some have acted illegally.

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Analyze DATE CREATED: 9/3/2017 2:01 PM DATE MODIFIED: 9/3/2017 2:02 PM 130. Fifty-nine auto dealers around the country were fined $200,000 by the Department of Labor for child labor violations.

The car dealers hire 16- and 17-year olds to move cars from service bays to customer pick-up areas and from lots to show rooms. They are also employed to wash cars. The teenagers move the cars literally only hundreds of feet in the process, but they are driving the cars.

Under the Fair Labor Standards Act and the federal regulations, only those employees who are age 18 or above are permitted to drive as part of job requirements. The fine for a violation is $1,100.

The Department of Labor contacted dealerships and asked for the names of their employees under the age of 18. Once the Department had the names, it contacted the young employees to question them about their job duties. Upon discovery of the driving, the dealerships were fined.

About one-half of the dealerships have paid the fines and the remainder are protesting. The result has been that dealerships will now employ only those who are 18 and older because it is impossible to have an employee responsible for washing cars and not be able to move the car. The result has been that many special job programs for minority students and students in vocational schools have been eliminated. a.

Do you think this type of driving was intended to be covered in the child labor statutes?

b.

Are auto dealers taking advantage of children or helping them? a.

Students should discuss purposes of law and protection of children.

ANSWER:

b.

Discussion of impact of employing teenagers: pro and con. Issue of unfair advantage is

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important.

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Business and Society: The Tough Issues of Economics, Social Responsibility, and Business KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/3/2017 2:12 PM DATE MODIFIED: 9/3/2017 2:14 PM 131. Explain who stakeholders are.

Customers, employees, community, suppliers.

ANSWER: POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Business and Society: The Tough Issues of Economics, Social Responsibility, and Business KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 2:14 PM DATE MODIFIED: 9/3/2017 2:16 PM 132. What are the stakeholders arguments for and against increasing the minimum wage?

Employees are stakeholders – they have an interest in higher wages. However, employees break ANSWER: out in groups. Employees who have been there for awhile and earned a higher wage often end up making the same amount of money as new and inexperienced employees. There are employee objections.

Higher wages at entry-level jobs have a societal impact because there is no motivation for employees whose wages are constantly increasing, not based on merit or experience, to not seek educational or training opportunities that might allow them to earn much more over their working years.

Customers are stakeholders – increased wages mean higher prices. Restaurants have closed because they are unable to charge enough for their food – there are ceilings on what customers will pay.

The businesses themselves are at risk because they may not be able to operate at a profit.

Owners and shareholders are also affected, something that curbs willingness to invest.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Business and Society: The Tough Issues of Economics, Social Responsibility, and Business KEYWORDS: Bloom's: Analyze DATE CREATED: 9/3/2017 2:17 PM DATE MODIFIED: 9/3/2017 2:26 PM Copyright Cengage Learning. Powered by Cognero.

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133. Explain how the New England Compounding Labs might have applied the regulatory cycle for a better outcome.

Because the regulation of this evolving industry was not fully developed, the operation rounded ANSWER: corners because the regulatory oversight was not there and the company was trying to produce and grow. The end result was the tragedies of the bad batches and the end of the company. Even when an industry is not regulated, the stakeholder model (which is part of the regulatory cycle) should find a business considering the impact of its decisions on customers, employees, and longterm success. NEC just pursued as many sales as possible without regard to safety and health issues that were not fully regulated at the time.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 2:22 PM DATE MODIFIED: 9/3/2017 2:24 PM 134. Raymond Randall is an attorney with the Federal Trade Commission. A 19-year veteran with the agency, Mr. Randall was known as a good trial attorney. The FTC charged William Farley, the chairman of Fruit of the Loom, Inc., with violations of the reporting provisions of the Hart-Scott-Rodino Act, when he purchased shares of West PointPepperell Corporations prior to a Fruit of the Loom takeover bid. The Hart-Scott-Rodino Act requires investors to notify the government when their holdings in a firm pass $15 million.

The FTC sought a fine of $10,000 per day against Mr. Farley, for a total of $910,000. Mr. Farley did notify the FTC once Fruit of the Loom made its decision to acquire West Point-Pepperell. Randall was assigned the Farley case. The FTC took a position of refusing to disclose to Farley and his attorneys documents relating to the case. Mr. Randall felt that the documents pointed to weaknesses in the FTC case and supported Mr. Farley's point that he notified the FTC once the takeover position was announced. Mr. Randall leaked the documents to Mr. Farley's lawyer.

Mr. Farley's lawyers were concerned that they should not be in possession of government documents returned the documents and resigned from the case because they had seen the documents. Mr. Farley's new attorneys went to court demanding production of the documents. The documents were ordered produced by the court. When the FTC refused to produce them, the case against Mr. Farley was dismissed by a federal district judge. a. Did Mr. Randall do the right thing in disclosing the documents to Farley's attorneys? b. Did Mr. Farley's lawyers do the right thing in returning the documents to the FTC? a.

Mr. Randall was engaged in a form of civil disobedience. He knew that the documents were ANSWER: government property and enjoyed the protection of the courts, but he also felt that Mr. Farley was being prosecuted without sufficient evidence. Mr. Randall's principles, values and ethics took control of the situation and he sent the documents as a means of allowing Mr. Farley access to the information. It is important to note that Mr. Randall's action should have been his last choice. Did he go to those within the agency and attempt to resolve the problem? He should also consider his loyalty to his employer and his responsibilities as an attorney before taking the action that he did which was a form of civil disobedience. b.

Mr. Farley's attorneys acted with the utmost integrity in returning the documents and resigning from the case. They made some difficult choices and not only followed the law but then resigned from the case because they had seen things they were not permitted to see. Their forthright actions probably helped Mr. Farley with the court and provided great credibility for Mr. Farley and his new attorneys as they successfully pursued the dismissal.

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Business and Society: The Tough Issues of Economics, Social Responsibility, and Copyright Cengage Learning. Powered by Cognero.

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Business KEYWORDS: Bloom's: Analyze DATE CREATED: 9/3/2017 2:24 PM DATE MODIFIED: 9/3/2017 2:27 PM 135. Lee Iacocca, chairman and CEO of Chrysler Corporation, announced on January 27, 1988, that the automaker would be closing its Kenosha, Wisconsin, plant. Iacocca and his board of directors were under significant pressure from shareholders due to Chrysler‟s continuing poor financial performance. Chrysler had acquired the Kenosha plant when it purchased American Motors Corporation in 1987. In his announcement, Iacocca blamed national trade policy for Chrysler‟s declining sales and resultant earnings problems.

At the Kenosha plant, which manufactured the Dodge Omni and the Plymouth Horizon, 5,500 of the 6,500 workers were to be laid off and production moved to a Detroit plant. Kenosha, a city of 77,000 on the shores of Lake Michigan, depended heavily on Chrysler‟s presence.

The announcement of the closing came at a critical time. Chrysler was negotiating to renew its contract with the United Auto Workers (UAW). Also, the Kenosha plant carried a history of union financial assistance. The UAW had loaned American Motors over $60 million to keep the Kenosha plant running, and Chrysler had assumed the loan obligations as part of the acquisition. Also, Wisconsin had paid $5 million for job training at the Kenosha plant in 1987 after Chrysler promised that the plant would build Omnis and Horizons for at least five more years.

Peter Pfaff, a member of the UAW Local 72 of Kenosha and an employee at the plant since 1972, said: “I was there.

We‟ve got it on tape and in writing. They said they‟d stay. Greenwald (then Chrysler Motors chairman) keeps saying Chrysler never said that, but I was there when he said it.”

The Kenosha local threatened to delay negotiations on renewing the national contract with 64,000 workers. After the threat, Iacocca announced that Chrysler would establish a $20 million trust fund to aid the 5,500 Kenosha workers through housing payments and educational funding. This fund would be in addition to severance pay, extended unemployment benefits, and repayment of the UAW loans. While denying that Chrysler was setting a precedent, Iacocca declared it had a “moral obligation” to Kenosha.

Wisconsin threatened to sue Chrysler over the job training program but agreed to hold off in exchange for Iacocca‟s promise to extend production at the plant for several months into the fall of 1988.

Iacocca stated that Chrysler was “guilty as hell of being cockeyed optimists. Blame us for being dumb managers, for spending $200 million to put two old cars (the Chrysler Fifth Avenue and the Dodge Diplomat) in an eighty-six-year-old plant, but please don‟t call me a liar when I‟ve got to close it sooner than I thought.” Iacocca sought congressional support for converting the Kenosha plant to defense work by Chrysler.

Chrysler and the UAW negotiated a contract that provided additional unemployment benefits for the 5,500 laid-off workers and more job security for the 1,000 workers who would transfer to other Chrysler operations. Ultimately, the plant closing resulted in 3,700 layoffs.

By mid-1990, Kenosha was enjoying unprecedented economic growth. At a July 1990 ceremony in which engineers detonated explosives to destroy the 250-foot-high smokestack of the Chrysler plant, dignitaries and former workers cheered. Kenosha resident T. R. Garcia said at the blasting, “I think it‟s about time they got rid of it. What we need to do is develop the lake front, and this thing is the last to leave.” City planner Ray Forgianni, Jr., added, “The community‟s image is probably the best it‟s been in 100 years. The closing was almost like a catalyst. The handwriting was on the wall-the economy needed to diversify.” a.

Did Chrysler have a moral obligation to the Kenosha workers and Wisconsin, or was it just responding to pressure? b.

Do arrangements like Chrysler had with the UAW loans and Wisconsin interfere with the ability to make business decisions? Review Iacocca‟s quote on business mistakes as you evaluate the issue. c.

Were the shareholders required to pay twice for the closing - once in severance pay and again in extended benefits? d.

Was Chrysler simply putting its duty to shareholders above its duty to Wisconsin, Kenosha, and its workers? Is this proper? Is it ethical?

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e.

Was Chrysler‟s action just a catalyst for needed economic development?

f.

Iacocca, after having stepped down as chairman of Chrysler, made a takeover offer for Chrysler in 1995. What would Chrysler‟s ethical culture be like if Mr. Iacocca had succeeded in his takeover bid? a.

There are differing schools of thought in ethics regarding the obligation of employers who ANSWER: close down plants to the workers from that plant and the communities in which they are located.

One group imposes an obligation on the employer to leave the town whole. This obligation requires placement of the workers and economic redevelopment of the community all at the employer's cost with some contributions from governmental entities.

Another school of thought sees such additional obligations as a double tax to shareholders. Not only must they bear the cost of the cutbacks and economic downturn, they must now ensure that the workers and the community do not have to share in such losses. This view advances the notion that workers are always insulated from financial losses and economic downturns and may not have the appropriate incentives to retool. b.

Obligations to restore the workers and communities add costs to downsizing and prevent flexibility in making allocation and resource decisions. An additional cost is added to becoming more efficient and the incentives may make it easier to remain inefficient. c.

The rights of shareholders are often ignored in the interest of protecting the employees and communities. On the other hand, the communities give the employers the right to use the air and water sheds and the opportunity to benefit from the support of the government resources and often tax breaks. d.

Yes, Chrysler defined its duty as first and foremost to its shareholders. Businesses do have a primary obligation to their investors, but Chrysler did take on more investors here (community). e.

Chrysler‟s withdrawal may have ultimately benefited the community.

f.

Mr. Iacocca‟s focus would be on Chrysler‟s earnings. There are ethical risks with such a focus.

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Government as a Stakeholder KEYWORDS: Bloom's: Analyze DATE CREATED: 9/3/2017 2:27 PM DATE MODIFIED: 9/3/2017 2:29 PM 136. In November 2009, a large cache of e-mails and technical documents from the Climate Research Unit (CRI), part of the University of East Anglia in Great Britain, appeared on several Internet file-servers and could be downloaded by the public. The University has yet to determine whether the posting of the proprietary files were the result of a hacker‟s effort or whether they were posted by a whistleblower with CRI. CRI‟s research and data have been used by the UN‟s Intergovernmental Panel on Climate Change (IPCC) as the basis for its support for both the Kyoto and Copenhagen Protocols, a form of international treaty that would have countries agree to curb their carbon emissions. The Kyoto Protocol fizzled when the United States declined to adopt it. The meeting at Copenhagen for the adoption of emissions standards began on December 7, 2009. Fossil-fuel industries would be affected by the Protocol. Those industries include oil and gas, auto industry, and fossil-fuel based utilities (coal, oil, and gas). Those industries did undertake voluntary reductions following the demise of the Kyoto Protocol. To date, businesses and industries in the United States have achieved one-half of the reductions that Kyoto would have mandated.

The 1,000+ e-mails from the scientists at CRI reveal what MIT scientist Michael Schrage has called “malice, mischief, and Machiavellian maneuverings” among the scientists with regard to their data and research on climate change. The e-mails include the following revelations: Copyright Cengage Learning. Powered by Cognero.

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

Ongoing efforts to manipulate the peer-review process for manuscripts that were submitted for publication in academic journals if those manuscripts challenged the research and conclusions of CRI scientists.

From: Phil Jones. To: Many. March 11, 2003 “I will be emailing the journal to tell them I‟m having nothing more to do with it until they rid themselves of this troublesome editor.”

Professor Jones appears to be lobbying for the dismissal of the editor of Climate Research, a scientific journal that published papers downplaying climate change.

From Phil Jones To: Michael Mann (Pennsylvania State University). July 8, 2004 "I can't see either of these papers being in the next IPCC report. Kevin and I will keep them out somehow – even if we have to redefine what the peer-review literature is!"

    



There was considerable disagreement acrimony among the CRI scientists about the results, meaning, and interpretation of their data and work – something not revealed in either their publications or speeches.

Significant portions of data from CRI were withheld from public disclosure or examination by scientists outside CRI. University of Arizona professor Jonathan Overpeck expressed concern to his colleagues in the e-mails, “Please write all e-mails as though they will be made public.”

CRI scientists ignored requests for the release of raw data.

One CRI scientist deleted his e-mails after demands for the data were made public. However, he neglected to delete an e-mail that revealed his actions in response to a British Freedom of Information Act (BFOIA), “I am supposed to go through my emails and he can get anything I‟ve written about him. About 2 months ago I deleted loads of emails, so have very little – if anything at all.” There is an investigation of possible violations of the BFOIA. That the CRI scientists were aware that the reconstruction of the earth‟s climate (paleoclimatology) during periods prior to actual human measurement and recording is a massive and complicated undertaking that is dependent upon statistical interpretation of raw data, interpretation that would ordinarily result in intense academic controversy. However, the e-mails reflect efforts to prevent or obscure the controversy. Again, CRI Scientist Phil Jones‟ e-mail:

From: Phil Jones. To: Many. Nov 16, 1999 "I've just completed Mike's Nature [the science journal] trick of adding in the real temps to each series for the last 20 years (i.e., from 1981 onwards) and from 1961 for Keith's to hide the decline."

  

An e-mail from a U.S. climatologist included in the releases reflected, “I support the continued collection of such data, but I am disturbed by how some people in the paleo community try to oversell their product.”

Another scientist wrote, “I‟m not political. If anything, I would like to see the climate change happen, so the science could be proved right, regardless of the consequences.”

An outside scientist brought into the loop wrote, “That fact is that we can‟t account for the lack of warming at the moment [since 1998] and it is a travesty that we can‟t.”

The University of East Anglia is conducting an investigation of the e-mails and CRI, but has warned, "The selective publication of some stolen emails and other papers taken out of context is mischievous and cannot be considered a genuine attempt to engage with this issue in a responsible way."

Prominent government and NGO officials have responded by indicating that regardless of the conduct of the scientists there is a climate problem that must be addressed.

List all of the ethical issues you see. Be sure to include a discussion of any social responsibility issues that you see.

Students should discuss giving or allowing false impression, withholding information, conflicts of ANSWER: interest, and organizational abuse. Students should also focus on whether the falsification of data and suppression of information is justified if those who engage in this behavior have enough of a Copyright Cengage Learning. Powered by Cognero.

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belief in their cause. Students should also discuss the long-term harm that comes from disclosure of misconduct in science.

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Government as a Stakeholder KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/3/2017 2:29 PM DATE MODIFIED: 9/3/2017 2:33 PM 137. The American Board of Internal Medicine (ABIM) has taken some sort of disciplinary action against 140 docs who cheated on their ABIM certification exams. In a lawsuit that the ABIM had filed previously against Arora Board Review, a company that does exam review courses for certification, the discovery process yielded information that proved to be more damaging for the docs than for Arora. The documents in the now-settled case included e-mails and other correspondence from the docs to Arora. The e-mails and correspondence revealed that the docs knew many of the questions and, indeed, followed up by sending along memorized test questions from their own certification exams to Arora in order to help the cert-docs-in-waiting along.

List the stakeholders in this situation.

Doctors ANSWER: Patients Hospitals Future doctors The review course The exam administrators Insurers (malpractice higher if docs don‟t know their stuff) Medical schools (their reputations affected by conduct of doctors or lack of knowledge) Others who have to take standardized exams because of security issues

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Business and Society: The Tough Issues of Economics, Social Responsibility, and Business KEYWORDS: Bloom's: Apply DATE CREATED: 9/3/2017 2:34 PM DATE MODIFIED: 9/3/2017 2:37 PM 138. In 2008, Starbucks placed a red light on 600 planned openings. Starbucks says it was excused from the leases because of economic conditions. Landlords note that Starbucks is driving down property values by allowing the leased spots to lie fallow. The landlords also note that they are victims because Starbucks‟ expansion plans were too ambitious, even for a good economy. Discuss the social responsibility of Starbucks in this situation.

Students should identify the stakeholders: landlords, other tenants, other business owners in the ANSWER: area, local governments and lost revenues, and a host of vendors, contractors, and potential employees. Issues are whether there is a commitment to honor contracts or whether the shifting of the economic burden to others is appropriate. What are the norms for behavior on economic downturns?

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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TOPICS:

Business and Society: The Tough Issues of Economics, Social Responsibility, and Business KEYWORDS: Bloom's: Apply DATE CREATED: 9/3/2017 2:37 PM DATE MODIFIED: 9/3/2017 2:39 PM 139. A group of food retailers and manufacturers banded together to self-regulate their ads, particularly on the Internet, for their products. Discuss why the manufacturers and retailers would make such a joint agreement?

They are trying to control the regulatory cycle. If they behave more responsibly in their restraint, ANSWER: their ads will not be prohibited. Their self-control also addresses social issues such as childhood obesity and health complications from eating foods that have low nutritional value and/or high sugar and/or fat.

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Analyze DATE CREATED: 9/3/2017 2:40 PM DATE MODIFIED: 9/3/2017 2:41 PM 140. Explain the evolution of an individual baseball player using performance enhancing drugs (PEDs) to it becoming a societal issue.

ANSWER:

When one athlete decides to use PEDs, it is his or her decision. But, when his or her team rewards him or her, it becomes an organizational issue. When other teams join in to be competitive and also give their PEDs players rewards, it is an industry issue. When we pay to see the games and fill the stadiums to see PEDs players, it becomes a societal issue.

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Analyze DATE CREATED: 9/3/2017 2:41 PM DATE MODIFIED: 9/3/2017 2:42 PM 141. Discuss the actions of the Duke faculty members with their ad and their follow-up conduct.

Students should use this as an opportunity to discuss how critical it is to view issues with facts and ANSWER: then analyze them appropriately. Often, our opinions and emotions get in the way and blind us to facts and questions that we should be asking and exploring.

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/3/2017 2:42 PM DATE MODIFIED: 9/3/2017 2:44 PM Copyright Cengage Learning. Powered by Cognero.

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142. What unique stakeholders did Ashley Madison have?

The usual stakeholders are present – customers, employees, etc. But, because of the nature of the ANSWER: company‟s service, there are the children and spouses of those using the website and service.

They are affected by the conduct facilitated. The revelation by hackers showed the impact the disclosure had on the lives, marriages, and children of clients.

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Applying Social Responsibility and Stakeholder Theory Business and Society: The Tough Issues of Economics, Social Responsibility, and Business KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/3/2017 2:44 PM DATE MODIFIED: 9/3/2017 2:46 PM

True / False 1. Employee hotlines exist to help employees who feel they cannot communicate concerns through the lines of authority. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/1/2017 8:03 PM DATE MODIFIED: 9/1/2017 8:06 PM 2. Galleon Hedge Fund used an inside source who had previously settled a case for passing along inside information. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Temptation at Work for Individual Gain and That Credo KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 2:53 PM DATE MODIFIED: 9/3/2017 2:55 PM 3. Captain Sullenberger was prepared to land a plane on the Hudson River because of his focus on training. a. True Copyright Cengage Learning. Powered by Cognero.

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b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Organizational Behavior Factors KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 2:56 PM DATE MODIFIED: 9/3/2017 2:58 PM 4. Whistleblowers have both internal and external avenues for dealing with issues. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 3:00 PM DATE MODIFIED: 9/12/2017 5:33 PM 5. If whistleblowers do not have internal avenues for dealing with issues, they will quit or turn to external avenues. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 3:03 PM DATE MODIFIED: 9/12/2017 5:34 PM 6. Whistleblowers who turn to external avenues for dealing with issues are unethical. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

The Fear-and-Silence Factors Bloom's: Understand 9/3/2017 3:04 PM 9/12/2017 5:34 PM

7. Some employees remain silent about issues they see and simply continue working at the company. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 3:04 PM DATE MODIFIED: 9/12/2017 5:35 PM 8. The failure of employees to deal with issues and concerns can result in conflicts and concerns that remain unresolved. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 3:05 PM DATE MODIFIED: 9/12/2017 5:35 PM 9. Employee hotlines exist to help employees who feel they cannot communicate concerns through the lines of authority. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 3:06 PM DATE MODIFIED: 9/3/2017 3:07 PM 10. Ethics training is an effective way to curb employees‟ unethical conduct. a. True Copyright Cengage Learning. Powered by Cognero.

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b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Psychological and Behavior Factors KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 3:07 PM DATE MODIFIED: 9/3/2017 3:08 PM 11. Screening bad apples out before hiring is an effective way to curb employees‟ unethical conduct. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Psychological and Behavior Factors KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 3:08 PM DATE MODIFIED: 9/3/2017 3:08 PM 12. Incentive plans influence employees‟ choices on ethical dilemmas. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Psychological and Behavior Factors KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 3:09 PM DATE MODIFIED: 9/3/2017 3:09 PM 13. Jerome Kerviel served less than one year in prison for his activities at Société Générale. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

The Psychological and Behavior Factors Bloom's: Remember 9/3/2017 3:10 PM 9/12/2017 5:37 PM

14. Joseph Jett did not serve time in prison for his activities at Kidder Peabody. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Psychological and Behavior Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 3:11 PM DATE MODIFIED: 9/3/2017 3:11 PM 15. Nick Leeson did not serve time in prison for his activities at Barings Bank. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Psychological and Behavior Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 3:12 PM DATE MODIFIED: 9/3/2017 3:12 PM 16. The compensation problem of CEOs has been solved through federal caps. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Organizational Behavior Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 3:12 PM DATE MODIFIED: 9/3/2017 3:14 PM 17. Alignment of compensation with company values is necessary to curb company-level ethical lapses. a. True Copyright Cengage Learning. Powered by Cognero.

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b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Psychological and Behavior Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 3:14 PM DATE MODIFIED: 9/3/2017 3:14 PM 18. An underwater mortgage is not enforceable. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 3:15 PM DATE MODIFIED: 9/3/2017 3:16 PM 19. The failure to speak out when an ethical or legal lapse occurs within your firm is in itself an ethical violation. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 3:16 PM DATE MODIFIED: 9/3/2017 3:17 PM 20. The employment-at-will doctrine contains an exception for whistle-blowers. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

The Fear-and-Silence Factors Bloom's: Understand 9/3/2017 3:18 PM 9/3/2017 3:18 PM

21. The duty of loyalty between employee and employer makes whistle-blowing unethical per se. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 3:19 PM DATE MODIFIED: 9/3/2017 3:19 PM 22. A company executive exerting pressure on a scientist and her university to delay disclosure of study results harmful to the company and its products would be unethical.

a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 3:20 PM DATE MODIFIED: 9/3/2017 3:21 PM 23. If I discover that a fellow employee is reporting falsely his overtime hours, it is best for me to say nothing and ignore the situation.

a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 3:21 PM DATE MODIFIED: 9/3/2017 3:21 PM Copyright Cengage Learning. Powered by Cognero.

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24. If my supervisor asked me to cover for him by lying about his whereabouts, I should agree to do it but remind him that I can't make it a habit.

a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 3:22 PM DATE MODIFIED: 9/3/2017 3:22 PM 25. Most ethical lapses are sudden and not foreseen. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Psychological and Behavior Factors KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 3:23 PM DATE MODIFIED: 9/3/2017 3:24 PM 26. Ethical lapses involve gradual decision processes. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Psychological and Behavior Factors KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 3:24 PM DATE MODIFIED: 9/3/2017 3:25 PM 27. EBITDA is a GAAP method of financial reporting. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate Copyright Cengage Learning. Powered by Cognero.

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QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Organizational Behavior Factors KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 3:25 PM DATE MODIFIED: 9/3/2017 3:26 PM 28. FINOVA eventually declared bankruptcy. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Psychological and Behavior Factors KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 3:26 PM DATE MODIFIED: 9/3/2017 3:26 PM 29. Warren Buffett bought FINOVA in bankruptcy. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Psychological and Behavior Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 3:27 PM DATE MODIFIED: 9/3/2017 3:28 PM 30. FINOVA was a second-tier lender. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Psychological and Behavior Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 3:28 PM DATE MODIFIED: 9/3/2017 3:28 PM Copyright Cengage Learning. Powered by Cognero.

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31. WorldCom‟s accounting issues were discovered by its head of internal audit. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 3:29 PM DATE MODIFIED: 9/3/2017 3:30 PM 32. Both the director of general accounting and the controller at WorldCom were comfortable with capitalizing ordinary expenses.

a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 3:30 PM DATE MODIFIED: 9/3/2017 3:30 PM 33. WorldCom employees who raised questions about the company‟s accounting were forbidden from talking with Arthur Andersen auditors.

a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 3:31 PM DATE MODIFIED: 9/3/2017 3:31 PM 34. WorldCom employees who followed orders and made the accounting entries for capitalizing ordinary expenses served prison time.

a. True b. False ANSWER:

True

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POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 3:31 PM DATE MODIFIED: 9/3/2017 3:32 PM 35. WorldCom‟s accounting was confusing because of its mergers and acquisitions. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 3:32 PM DATE MODIFIED: 9/3/2017 3:33 PM 36. Mr. Ebbers was a Sunday School teacher at his Hattiesburg, Mississippi church. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 3:33 PM DATE MODIFIED: 9/3/2017 3:34 PM 37. The WorldCom stock frenzy is unique in business history. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Understand Copyright Cengage Learning. Powered by Cognero.

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DATE CREATED: 9/3/2017 3:34 PM DATE MODIFIED: 9/3/2017 3:35 PM 38. No employees at WorldCom raised any objections to the accounting practices. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 3:35 PM DATE MODIFIED: 9/3/2017 3:36 PM 39. Enron did not disclose that an officer of the company was a principal in the off-the-book entities. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 3:36 PM DATE MODIFIED: 9/3/2017 3:37 PM 40. Dennis Kozlowski‟s first trial resulted in a hung jury. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 3:38 PM DATE MODIFIED: 9/3/2017 3:39 PM 41. Tyco was not forthcoming in its financial statements about its acquisitions. a. True b. False ANSWER: True Copyright Cengage Learning. Powered by Cognero.

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POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 3:39 PM DATE MODIFIED: 9/3/2017 3:40 PM 42. Goodwill was not a part of Tyco‟s accounting and financial reports. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 3:40 PM DATE MODIFIED: 9/3/2017 3:41 PM 43. Both Kozlowski and Tyco were generous in their philanthropic activities. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 3:41 PM DATE MODIFIED: 9/3/2017 3:41 PM 44. All of the officer loans at Tyco were approved by the Tyco board. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Understand Copyright Cengage Learning. Powered by Cognero.

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DATE CREATED: 9/3/2017 3:42 PM DATE MODIFIED: 9/3/2017 3:42 PM 45. Prior to working for Kidder Peabody, Joseph Jett was fired from one job and laid off from another. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Psychological and Behavior Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 3:43 PM DATE MODIFIED: 9/3/2017 3:43 PM 46. The “rogue traders” all had the skills to work around company internal controls in order to cover their activities. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Psychological and Behavior Factors KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 3:45 PM DATE MODIFIED: 9/3/2017 3:45 PM 47. If the earnings of a company are revealed to be false, the officers who earned bonuses based on these earnings must forfeit them.

a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 3:46 PM DATE MODIFIED: 9/3/2017 3:46 PM 48. UBS had rules that prevented operations employees from trading/client-facing positions. a. True b. False Copyright Cengage Learning. Powered by Cognero.

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ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Psychological and Behavior Factors KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 3:46 PM DATE MODIFIED: 9/12/2017 5:41 PM 49. Sarbanes-Oxley requires all covered companies to have a code of ethics for financial officers. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 3:47 PM DATE MODIFIED: 9/3/2017 3:48 PM 50. Under Sarbanes-Oxley, a company must file an 8-K if it has waived its code of ethics for a financial reporting officer. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 3:48 PM DATE MODIFIED: 9/3/2017 3:48 PM 51. Under Sarbanes-Oxley, audit committees of publicly held companies‟ boards need not be made up of independent members so long as the majority of the board is independent.

a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership Copyright Cengage Learning. Powered by Cognero.

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KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 3:48 PM DATE MODIFIED: 9/3/2017 3:49 PM 52. Destruction of documents related to the financial reports of a company carries a 20-year penalty. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 3:49 PM DATE MODIFIED: 9/3/2017 3:50 PM 53. Attorneys who represent publicly traded companies need not report any financial fraud to boards because of attorneyclient privilege.

a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 3:50 PM DATE MODIFIED: 9/3/2017 3:50 PM 54. There was a fluid transfer of employees between Andersen and Enron. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 3:51 PM DATE MODIFIED: 9/3/2017 3:52 PM 55. The board waived Enron ethics code provisions at least three times. a. True Copyright Cengage Learning. Powered by Cognero.

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b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 3:52 PM DATE MODIFIED: 9/3/2017 3:53 PM 56. David Duncan was indicted on obstruction charges and convicted. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 3:53 PM DATE MODIFIED: 9/3/2017 3:54 PM 57. The U.S. Supreme Court reversal of the Andersen conviction means that there were no ethical missteps by Andersen. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 3:54 PM DATE MODIFIED: 9/3/2017 3:55 PM 58. The HealthSouth board knew very little about the creative accounting at HealthSouth. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

The Fear-and-Silence Factors Bloom's: Understand 9/3/2017 3:55 PM 9/3/2017 3:56 PM

59. No HealthSouth board members did business with Scrushy or HealthSouth. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 3:56 PM DATE MODIFIED: 9/3/2017 3:57 PM 60. Mr. Scrushy was very generous in giving funds to his home town and charitable causes. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 3:57 PM DATE MODIFIED: 9/3/2017 3:58 PM 61. In the Claremont-McKenna case, the initial reported bumps in average SAT scores ranged from 10 points to 100 points.

a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Psychological and Behavior Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 3:58 PM DATE MODIFIED: 9/3/2017 3:59 PM 62. The mistake at the Department of Interior in fees on leases resulted from a failure to stop an incentive program Copyright Cengage Learning. Powered by Cognero.

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following an increase in oil prices.

a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Psychological and Behavior Factors KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 4:00 PM DATE MODIFIED: 9/3/2017 4:00 PM 63. Analysts for investment banks cannot be required to obtain approval or consent from their employers for their reports. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 4:01 PM DATE MODIFIED: 9/3/2017 4:02 PM 64. Analysts can be terminated for issuing negative reports that affect the investments of their employer banks. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 4:02 PM DATE MODIFIED: 9/3/2017 4:02 PM 65. Removing records from the workplace to prevent access by regulators on a pre-announced inspection is both illegal and unethical.

a. True b. False ANSWER: POINTS: DIFFICULTY:

True 1 Moderate

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QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 4:04 PM DATE MODIFIED: 9/12/2017 5:42 PM 66. The failure of an auditor to disclose the possible obsolescence of a firm‟s major product is a judgment call and not an ethical issue.

a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Organizational Behavior Factors KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 4:05 PM DATE MODIFIED: 9/3/2017 4:05 PM 67. Your unit has not been able to meet its sales goals for your quarter. Your assistant has suggested that you ship out enough goods to meet the quarterly goals by simply overshipping quantities on customer orders. When the goods are returned, you would simply take the returns in the next quarter after you have had more of an opportunity to meet goals.

Your assistant's suggestion is a breach of ethics.

a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Organizational Behavior Factors KEYWORDS: Bloom's: Apply DATE CREATED: 9/3/2017 4:06 PM DATE MODIFIED: 9/3/2017 4:07 PM 68. Your unit has not been able to meet its sales goals for your quarter. Your assistant has suggested that you ship out enough goods to meet the quarterly goals by simply overshipping quantities on customer orders. When the goods are returned, you would simply take the returns in the next quarter after you have had more of an opportunity to meet goals. Suppose you learn that other divisions within the company have always engaged in this form of earnings shifting.

The practice is still an ethical breach.

a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

False The Organizational Behavior Factors Bloom's: Apply 9/3/2017 4:07 PM 9/3/2017 4:09 PM

69. Your unit has not been able to meet its sales goals for your quarter. Your assistant has suggested that you ship out enough goods to meet the quarterly goals by simply overshipping quantities on customer orders. When the goods are returned, you would simply take the returns in the next quarter after you have had more of an opportunity to meet goals. A customer who agreed to help you with your shifting would not be engaged in unethical behavior.

a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Organizational Behavior Factors KEYWORDS: Bloom's: Apply DATE CREATED: 9/3/2017 4:09 PM DATE MODIFIED: 9/3/2017 4:10 PM 70. Earnings management is the use of accounting techniques to smooth earnings. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Organizational Behavior Factors KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 4:10 PM DATE MODIFIED: 9/12/2017 5:47 PM 71. Booking sales in advance of actual contracts is not a violation of accounting rules. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Organizational Behavior Factors KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 4:11 PM Copyright Cengage Learning. Powered by Cognero.

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DATE MODIFIED: 9/12/2017 5:47 PM 72. Enron used “mark to market” accounting. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 4:12 PM DATE MODIFIED: 9/3/2017 4:13 PM 73. Materiality is generally defined by accountants as a percentage range. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 4:13 PM DATE MODIFIED: 9/12/2017 5:48 PM 74. The CEO of Massey Energy was acquitted in his trial related to the deaths at the Upper Branch mine explosion. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 4:15 PM DATE MODIFIED: 9/3/2017 4:15 PM 75. The CEO of Massey Energy required hourly faxed reports of coal production. a. True b. False ANSWER: True POINTS: 1 Copyright Cengage Learning. Powered by Cognero.

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DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 4:15 PM DATE MODIFIED: 9/12/2017 5:49 PM 76. The head of security at the Upper Branch mine had the presence of mine inspectors announced. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 4:17 PM DATE MODIFIED: 9/3/2017 4:18 PM 77. The FBI found security records for The Upper Branch mine in a dumpster. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 4:18 PM DATE MODIFIED: 9/12/2017 5:51 PM 78. The managers who cooperated with the federal government in the Upper Branch mine explosion criminal investigation received lesser sentences.

a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 4:19 PM Copyright Cengage Learning. Powered by Cognero.

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DATE MODIFIED: 9/3/2017 4:19 PM 79. WorldCom‟s accounting issues involved capitalization of ordinary expenses. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 4:20 PM DATE MODIFIED: 9/12/2017 5:52 PM 80. Loans to corporate executives are now illegal under Sarbanes-Oxley. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 4:21 PM DATE MODIFIED: 9/12/2017 5:52 PM 81. Andrew Fastow‟s role as an officer of an SPE was not a conflict of interest. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Apply DATE CREATED: 9/3/2017 4:23 PM DATE MODIFIED: 9/12/2017 5:53 PM 82. Mark-to-market accounting gave corporate officers discretion in reporting earnings. a. True b. False ANSWER: True POINTS: 1 Copyright Cengage Learning. Powered by Cognero.

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DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 4:25 PM DATE MODIFIED: 9/12/2017 5:53 PM 83. Acquisition accounting gave Tyco officers flexibility in reporting earnings. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 4:26 PM DATE MODIFIED: 9/12/2017 5:54 PM 84. FASB 125 has been eliminated because of Enron and its SPEs. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 4:27 PM DATE MODIFIED: 9/12/2017 5:54 PM 85. The fact that Dennis Kozlowski was not convicted in his first jury trial shows that he did nothing unethical. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Analyze DATE CREATED: 9/3/2017 4:27 PM Copyright Cengage Learning. Powered by Cognero.

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DATE MODIFIED: 9/12/2017 5:55 PM 86. The show Undercover Boss is an example of a method executives can use to obtain information about their companies, employees, and operations.

a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 4:30 PM DATE MODIFIED: 9/3/2017 4:30 PM 87. The CEOs of the banks that suffered the subprime losses were iconic. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Apply DATE CREATED: 9/3/2017 4:30 PM DATE MODIFIED: 9/3/2017 4:32 PM 88. The Baptist Foundation collapse involved overvaluation of real property. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Culture of Goodness KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 4:32 PM DATE MODIFIED: 9/3/2017 4:35 PM 89. United Way had a “bad boy” clause in its contract with William Aramony. a. True b. False ANSWER: True Copyright Cengage Learning. Powered by Cognero.

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POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Culture of Goodness KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 4:36 PM DATE MODIFIED: 9/12/2017 5:56 PM 90. In the Atlanta Public School system, 25% of principals‟ salaries were based on test score results. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Culture of Goodness KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 4:37 PM DATE MODIFIED: 9/12/2017 5:56 PM 91. There have been 35 indictments of teachers and administrators since the discovery that test scores were manipulated. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Culture of Goodness KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 4:38 PM DATE MODIFIED: 9/12/2017 5:57 PM 92. The Diamond Walnut case involved shifting earnings and expenses across years. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Understand Copyright Cengage Learning. Powered by Cognero.

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DATE CREATED: 9/3/2017 4:39 PM DATE MODIFIED: 9/12/2017 5:57 PM 93. There is no difference between taking an LSAT review course and using a law school application consultant. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Organizational Behavior Factors KEYWORDS: Bloom's: Analyze DATE CREATED: 9/3/2017 4:40 PM DATE MODIFIED: 9/12/2017 5:58 PM 94. A county commissioner who makes decisions on construction permits and zoning exceptions and approaches a hotel builder to lease space for her clothing store in his new hotel while his application for zoning and construction are pending has done nothing unethical.

a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: The Organizational Behavior Factors KEYWORDS: Bloom's: Apply DATE CREATED: 9/3/2017 4:43 PM DATE MODIFIED: 9/3/2017 4:44 PM Multiple Choice 95. Which layer(s) of ethical issues were involved in baseball players using steroids? a. Individual b. Organization c. Industry d. All of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Temptation at Work for Individual Gain and That Credo KEYWORDS: Bloom's: Apply DATE CREATED: 9/2/2017 8:07 PM Copyright Cengage Learning. Powered by Cognero.

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DATE MODIFIED: 9/12/2017 5:59 PM 96. Mother Teresa is an example of which category of moral development? a. Morally superior b. Moral sycophant c. Inherently moral d. Moral postpone ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Temptation at Work for Individual Gain and That Credo KEYWORDS: Bloom's: Apply DATE CREATED: 9/3/2017 4:45 PM DATE MODIFIED: 9/3/2017 4:48 PM 97. Andrew Fastow is an example of which category of moral development? a. Amoral technician b. Moral sycophant c. Inherently moral d. Moral chameleon ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Temptation at Work for Individual Gain and That Credo KEYWORDS: Bloom's: Apply DATE CREATED: 9/3/2017 6:35 PM DATE MODIFIED: 9/3/2017 6:36 PM 98. Which of the following is not accurate in describing Mr. Blankenship‟s leadership at Massey Energy? a. He grew the company to $2.6 billion in revenues b. He was politically powerful in West Virginia c. He did not make on-site visits to the mines d. All of the above are accurate ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 6:36 PM Copyright Cengage Learning. Powered by Cognero.

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DATE MODIFIED: 9/12/2017 6:00 PM 99. What did Mr. Blankenship have as a motto for employees? a. “Safety is secondary.” b. “Do as Don Says.” c. “Hour-by-hour, Day-by-Day, We produce coal.” d. "Don‟t cheat, but achieve.”

ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 6:39 PM DATE MODIFIED: 9/3/2017 6:41 PM 100. How much higher was the rate of withdrawal orders by federal inspectors at the Upper Branch mine then the national average for ordered withdrawals? a. 5 times

b. 10 times c. 17 times d. 19 times ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 6:41 PM DATE MODIFIED: 9/12/2017 6:00 PM 101. An employee who falsified sales figures at his company explained, “I felt I had no choice.” The employee‟s conduct is best explained by: a. A lack of ethics training.

b. The company culture. c. The failure to screen him out. d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Psychological and Behavior Factors KEYWORDS: Bloom's: Understand Copyright Cengage Learning. Powered by Cognero.

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DATE CREATED: 9/3/2017 6:44 PM DATE MODIFIED: 9/3/2017 6:46 PM 102. “What were they smoking?”, was a Fortune headline that referred to: a. Bear Stearns. b. Goldman. c. J.P. Morgan Chase. d. All of the above ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 6:46 PM DATE MODIFIED: 9/3/2017 6:48 PM 103. Jerome Kerviel, Joseph Jett, and Nick Leeson had what in common? a. They all went to jail b. They all bankrupted or nearly bankrupted their companies c. They all embezzled from their companies d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Psychological and Behavior Factors KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/3/2017 6:48 PM DATE MODIFIED: 9/3/2017 6:50 PM 104. What defense did Jerome Kerviel, Joseph Jett, and Nick Leeson share? a. That their managers were aware of their trades and how they were making money b. That they had not been properly trained c. That they were ordered to do what they did d. That they were not subject to securities laws ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Psychological and Behavior Factors KEYWORDS: Bloom's: Evaluate Copyright Cengage Learning. Powered by Cognero.

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DATE CREATED: 9/3/2017 6:50 PM DATE MODIFIED: 9/3/2017 6:52 PM 105. Which of the following factors did HealthSouth, Fannie Mae, Massey Energy, Enron and WorldCom have in common? a. Federal regulators had been on site at all the companies expressing concerns

b. They all had weak boards c. Obstruction of investigations d. All of the above were a common thread ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership The Industry Practices and Legal Factors The Fear-and-Silence Factors KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/3/2017 6:52 PM DATE MODIFIED: 9/3/2017 6:54 PM 106. What are the components of an ethical infrastructure for employee reporting? a. Hotline b. Computer third-party reporting c. Tracking incoming reports d. All of the above are components ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 6:55 PM DATE MODIFIED: 9/3/2017 6:56 PM 107. What does the phrase, “We suck.. Now let‟s get better,” reveal about a company culture? a. That there is fear and silence in the culture. b. That there is pressure to produce results. c. That there is a leader with hubris. d. None of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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The Structural Factors: Governance, Example, and Leadership Bloom's: Understand 9/3/2017 6:56 PM 9/3/2017 7:01 PM

108. What does the phrase, “Don‟t look for absolution. Look for resolution,” mean? a. Accept questions about your company, investigate issues raised, and make changes. b. Just end government investigations as quickly as you can. c. Do not tell management what you are doing, just solve the problem so that they never find out. d. No more disclosures without authorization.

ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 6:59 PM DATE MODIFIED: 9/3/2017 7:01 PM 109. “The sage advice lost in the computer models” refers to: a. Maintaining a healthy skepticism about numbers performance. b. What happened at the Madoff firm. c. The Enron off-the-book entities. d. The Lehman risk models.

ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 7:02 PM DATE MODIFIED: 9/3/2017 7:04 PM 110. Who is an example of an iconic CEO? a. Chuck Prince b. Jimmy Cayne c. Stan O‟Neal d. All of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

The Industry Practices and Legal Factors Bloom's: Apply 9/3/2017 7:05 PM 9/3/2017 7:06 PM

111. Which companies had iconic CEOs? a. Diamond Foods b. Tyco c. WorldCom d. All of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Apply DATE CREATED: 9/3/2017 7:07 PM DATE MODIFIED: 9/3/2017 7:09 PM 112. What was the goal of the VA following its Government Accountability Report? a. Have patients wait no longer than 30 days for treatment b. Have every patient provide a “satisfactory” rating on their VA visits c. Have patients wait no longer than 14 days for treatment d. Both b and c ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership The Fear-and-Silence Factors KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 7:10 PM DATE MODIFIED: 9/3/2017 7:12 PM 113. What strategies did VA employees use to meet their goals? a. Blind scheduling veterans for appointments b. Alter wait times for records c. Referral of vets to outside providers d. Both a and b e. All of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice Copyright Cengage Learning. Powered by Cognero.

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False The Fear-and-Silence Factors Bloom's: Understand 9/3/2017 7:12 PM 9/3/2017 7:14 PM

114. What do the VA and Atlanta Public School System cases have in common? a. Both involved government entities b. Both involved evaluation and compensation based on numeric goals c. Both involved employees trying to alert others to the problems d. All of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Analyze DATE CREATED: 9/3/2017 7:15 PM DATE MODIFIED: 9/3/2017 7:17 PM 115. How were the workers at Westland/Hallmark Meat Company compensated? a. By the hour b. By the number of cows processed c. By the number of cows slaughtered for meat production d. By the evaluation of the federal agencies that regulate their production facilities ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 7:17 PM DATE MODIFIED: 9/3/2017 7:20 PM 116. What term did the Westland/Hallmark Meat Company employees have to use in their processing work? a. Stander b. FDA approved c. Authorized d. Department of Education approved ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice Copyright Cengage Learning. Powered by Cognero.

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False The Structural Factors: Governance, Example, and Leadership Bloom's: Remember 9/3/2017 7:20 PM 9/3/2017 7:22 PM

117. Lehman Brothers (now bankrupt) was able to use an accounting strategy known as Repo 105 to spin debt off its books so that it appeared to be less leveraged than it was. Which of the following is correct? a. Lehman‟s accounting strategy was similar to that of Enron.

b. Lehman‟s accounting strategy was similar to that of WorldCom. c. Lehman‟s accounting strategy was similar to that of Bausch & Lomb. d. Lehman‟s accounting strategy was similar to that of Tyco.

ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/3/2017 7:22 PM DATE MODIFIED: 9/3/2017 7:24 PM 118. Where was Bernie Madoff‟s secretive operation that had his computer and program for his investment techniques? a. Off-shore in the Cayman Islands b. In West Palm beach c. On the 17th floor of his New York offices d. In Switzerland ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Culture of Goodness KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 7:25 PM DATE MODIFIED: 9/3/2017 7:27 PM 119. Which of the following individuals knew nothing about Bernie Madoff‟s Ponzi scheme? a. Frank DiPascali b. Harry Markopolos c. The SEC d. All of the above knew about his Ponzi scheme ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice Copyright Cengage Learning. Powered by Cognero.

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False The Culture of Goodness Bloom's: Remember 9/3/2017 7:28 PM 9/3/2017 7:29 PM

120. Who was trying to have an investigation into Madoff‟s operation launched as of 2005? a. The SEC b. Harry Markopolos c. Congress d. NASD ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Culture of Goodness KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 7:30 PM DATE MODIFIED: 9/3/2017 7:31 PM 121. What is the length of Mr. Madoff‟s sentence? a. 10 years b. 18 years c. 25 years d. 150 years ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Culture of Goodness KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 7:31 PM DATE MODIFIED: 9/3/2017 7:32 PM 122. Which was not a business pressure Beech-Nut was feeling at the time of the juice controversy? a. Heavy debt b. 15% market share c. Old plant in need of maintenance d. Beech-Nut had all of the above threats ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice Copyright Cengage Learning. Powered by Cognero.

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False The Fear-and-Silence Factors Bloom's: Remember 9/3/2017 7:32 PM 9/3/2017 7:35 PM

123. How far below market price were Interjuice‟s prices? a. 15% b. 20% c. 50% d. 30% ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 7:35 PM DATE MODIFIED: 9/3/2017 7:36 PM 124. Who is Jerome LiCari? a. CEO of Beech-Nut b. Plant manager for Beech-Nut c. Employee in Beech-Nut‟s purchasing function d. Director of Research and Development for Beech-Nut Nutrition ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 7:37 PM DATE MODIFIED: 9/3/2017 7:39 PM 125. What were the rumors around the industry about the concentrate products? a. That there might be adulteration b. That there would soon be a price increase c. There were no rumors; the concentrate was the best the industry had seen d. None of the above ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice Copyright Cengage Learning. Powered by Cognero.

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False The Fear-and-Silence Factors Bloom's: Remember 9/3/2017 7:39 PM 9/3/2017 7:41 PM

126. Who is Lavery? a. CEO of Beech-Nut b. Plant manager for Beech-Nut c. Employee in Beech-Nut‟s purchasing department d. Director of Research and Development for Beech-Nut Nutrition ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 7:41 PM DATE MODIFIED: 9/3/2017 7:43 PM 127. What was Lavery told in 1978 about the concentrate? a. That it was adulterated b. That it might not be made of real apples, but rather, of syrup and flavors c. That the concentrate had no problems d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 7:43 PM DATE MODIFIED: 9/3/2017 7:44 PM 128. What was Lavery‟s first step in dealing with the concentrate issues? a. Canceling the contract b. Ordering less concentrate c. Checking the supplier‟s facilities d. None of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice Copyright Cengage Learning. Powered by Cognero.

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False The Fear-and-Silence Factors Bloom's: Remember 9/3/2017 7:44 PM 9/3/2017 7:46 PM

129. When was the Beech-Nut hold-harmless agreement signed? a. After the suspicions about the syrup content of the concentrate b. When the contract with the supplier was first entered into c. After the criminal cases d. None of the above ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 7:46 PM DATE MODIFIED: 9/3/2017 7:48 PM 130. When is it legal under federal law to sell a product that tastes like apple juice but is not apple juice? a. There is no such provision under federal law b. When the label discloses that the product is not real apple juice c. When the company is not generally a seller of apple juice d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Evaluate | Bloom's: Remember DATE CREATED: 9/3/2017 7:49 PM DATE MODIFIED: 9/3/2017 7:51 PM 131. What was the standard Lavery imposed for changing the supplier? a. If there was any question as to whether the apple juice was fake b. If the employees could prove in a court of law that the concentrate was adulterated c. If other companies stopped using the concentrate d. If employees felt uncomfortable with the supplier ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice Copyright Cengage Learning. Powered by Cognero.

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False The Fear-and-Silence Factors Bloom's: Evaluate | Bloom's: Remember 9/3/2017 7:51 PM 9/3/2017 7:53 PM

132. Who is Charles Jones? a. Beech-Nut‟s purchasing manager b. Beech-Nut‟s CEO c. Beech-Nut‟s head of chemistry d. Beech-Nut‟s general counsel ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Evaluate | Bloom's: Remember DATE CREATED: 9/3/2017 7:54 PM DATE MODIFIED: 9/3/2017 7:56 PM 133. Who was criticized for being “Chicken Little” and “not a team player”? a. Charles Jones b. John Lavery c. Jerome LiCari d. Nils Hoyvald ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Evaluate | Bloom's: Remember DATE CREATED: 9/3/2017 7:56 PM DATE MODIFIED: 9/3/2017 7:57 PM 134. Who was criticized for being “colored by naiveté and impractical ideals”? a. Charles Jones b. John Lavery c. Jerome LiCari d. Nils Hoyvald ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice Copyright Cengage Learning. Powered by Cognero.

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False The Fear-and-Silence Factors Bloom's: Evaluate | Bloom's: Remember 9/3/2017 7:57 PM 9/3/2017 7:58 PM

135. Who is Nils Hoyvald? a. Beech-Nut‟s purchasing manager b. Beech-Nut‟s CEO c. Beech-Nut‟s head of chemistry d. Beech-Nut‟s general counsel ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Evaluate | Bloom's: Remember DATE CREATED: 9/3/2017 7:58 PM DATE MODIFIED: 9/3/2017 8:00 PM 136. When Beech-Nut‟s CEO became aware of the problems with its juice supplier, he: a. Immediately canceled the contract and no longer used the product. b. Canceled future shipments only. c. Reported the problem to the FDA. d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Evaluate | Bloom's: Remember DATE CREATED: 9/3/2017 8:00 PM DATE MODIFIED: 9/3/2017 8:02 PM 137. Who wrote the “Johnny Appleseed” letter to the FDA? a. Charles Jones b. John Lavery c. Jerome LiCari d. Nils Hoyvald ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice Copyright Cengage Learning. Powered by Cognero.

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False The Fear-and-Silence Factors Bloom's: Evaluate | Bloom's: Remember 9/3/2017 8:02 PM 9/3/2017 8:04 PM

138. What did the FDA mean by saying that Beech-Nut played a “cat and mouse game” with the government? a. That Beech-Nut helped the FDA nab the supplier b. That Beech-Nut tried to hide the concentrate c. That Beech-Nut turned over the product but not its paper work d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Evaluate | Bloom's: Remember DATE CREATED: 9/3/2017 8:05 PM DATE MODIFIED: 9/3/2017 8:06 PM 139. Who is Thomas Ward? a. Beech-Nut‟s purchasing manager b. Beech-Nut‟s CEO c. Beech-Nut‟s head of chemistry d. Beech-Nut‟s lawyer ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Evaluate | Bloom's: Remember DATE CREATED: 9/3/2017 8:08 PM DATE MODIFIED: 9/3/2017 8:09 PM 140. Who is Zeev Kaplansky? a. Employee of Universal b. Beech-Nut‟s lawyer c. Beech-Nut‟s head of chemistry d. None of the above ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

False The Fear-and-Silence Factors Bloom's: Evaluate | Bloom's: Remember 9/3/2017 8:10 PM 9/3/2017 8:12 PM

141. How many felony counts did Beech-Nut plead guilty to? a. 22 b. 37 c. 110 d. 215 ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Evaluate | Bloom's: Remember DATE CREATED: 9/3/2017 8:12 PM DATE MODIFIED: 9/3/2017 8:13 PM 142. What was the former Beech-Nut CEO‟s sentence? a. Five years in prison b. Suspended sentence c. Suspended sentence plus fines plus probation d. 22 years ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Evaluate | Bloom's: Remember DATE CREATED: 9/3/2017 8:13 PM DATE MODIFIED: 9/3/2017 8:15 PM 143. What was Beech-Nut‟s fine? a. $100 million b. $50 million c. $2 million d. $140,000 ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

False The Fear-and-Silence Factors Bloom's: Evaluate | Bloom's: Remember 9/3/2017 8:15 PM 9/3/2017 8:16 PM

144. In the NASA Challenger case, what company built the rocket boosters? a. NASA b. Morton Thiokol c. Lockheed Martin d. Boeing ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Evaluate | Bloom's: Remember DATE CREATED: 9/3/2017 8:15 PM DATE MODIFIED: 9/3/2017 8:17 PM 145. Who was the engineer who wrote an internal memo on his concerns about the use of the rocket launchers in low temperatures? a. Allan McDonald

b. Bob Lund c. Roger Boisjoly d. Morton Thiokol e. Charles S. Locke ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Evaluate | Bloom's: Remember DATE CREATED: 9/3/2017 8:18 PM DATE MODIFIED: 9/3/2017 8:19 PM 146. The CEO of Morton-Thiokol: a. Maintained that he never agreed to go ahead with the launch. b. Said that the rocket explosion would cost his company 10 cents per share. c. Both a and b d. None of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate Copyright Cengage Learning. Powered by Cognero.

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QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Evaluate | Bloom's: Remember DATE CREATED: 9/3/2017 8:19 PM DATE MODIFIED: 9/3/2017 8:21 PM 147. How many people were fired following the Challenger explosion? a. None b. One c. Two d. Three, including the CEO ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Evaluate | Bloom's: Remember DATE CREATED: 9/3/2017 8:22 PM DATE MODIFIED: 9/3/2017 8:23 PM 148. Who was urged to take off his engineering hat and put on his management hat? a. Charles S. Locke b. Roger Boisjoly c. Bob Lund d. None of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Evaluate | Bloom's: Remember DATE CREATED: 9/3/2017 8:23 PM DATE MODIFIED: 9/12/2017 6:02 PM 149. Which of the following is not an option for whistleblowers? a. Leaving the company and saying nothing about the issue b. Leaving the company and saying something upon leaving c. Staying with the company and saying nothing about the issue d. Staying with the company and revealing the problem to an internal source e. All of the above are possible options for whistleblowers ANSWER: e POINTS: 1 Copyright Cengage Learning. Powered by Cognero.

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DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 8:24 PM DATE MODIFIED: 9/12/2017 6:03 PM 150. In the Beech-Nut case, the executives at the time of the sales of adulterated apple juice: a. Did not know that there was a problem with the apple juice. b. Took no steps to cover up the juice problem. c. Were charged with violations of criminal statutes. d. Cannot be held responsible unless they actually bought the adulterated product. e. None of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 8:27 PM DATE MODIFIED: 9/3/2017 8:29 PM 151. Who gave the famous “Numbers Game” speech? a. Warren Buffett b. Arthur Levitt c. Dennis Kozlowski d. Andrew Fastow ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Organizational Behavior Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 8:29 PM DATE MODIFIED: 9/12/2017 6:03 PM 152. Which is not a physical technique for managing earnings? a. Large-charge restructuring b. Inventory write-down c. Delayed invoices d. All of the above are physical techniques for managing earnings ANSWER: a Copyright Cengage Learning. Powered by Cognero.

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POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Organizational Behavior Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 8:31 PM DATE MODIFIED: 9/3/2017 8:33 PM 153. EBITDA is an acronym for: a. Earnings before I took depreciation for assets. b. Earnings before interest and debt adjustments. c. Earnings before interest and taxes decertified by the auditor. d. Earnings before interest, taxes, depreciation, amortization.

ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Organizational Behavior Factors KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 8:34 PM DATE MODIFIED: 9/3/2017 8:36 PM 154. Materiality: a. Is a standard for determining whether a financial event or issue must be reported. b. Is no longer part of GAAP. c. Is the reason EBITDA is now used. d. Is a physical technique for managing earnings.

ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Organizational Behavior Factors KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 8:36 PM DATE MODIFIED: 9/3/2017 8:38 PM 155. Another name for large-charge restructuring is: a. Big bath. b. Spring-loading. c. Cookie jar reserves. d. All of the above ANSWER: d Copyright Cengage Learning. Powered by Cognero.

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POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Organizational Behavior Factors KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 8:38 PM DATE MODIFIED: 9/3/2017 8:40 PM 156. Soft charges or anticipated costs: a. Are a source of cookie jar reserves. b. Are the same as EBITDA. c. Are never used in acquisition accounting. d. All of the above ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Organizational Behavior Factors KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 8:38 PM DATE MODIFIED: 9/3/2017 8:41 PM 157. Which of the following are used to smooth out earnings? a. Cookie jar reserves b. Expectations gap c. Spring-loading d. All of the above ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Organizational Behavior Factors KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 8:41 PM DATE MODIFIED: 9/3/2017 8:43 PM 158. Pro forma numbers are: a. GAAP measures. b. Non-GAAP measures. c. Illegal under Sarbanes-Oxley. d. Both b and c ANSWER: b Copyright Cengage Learning. Powered by Cognero.

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POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Organizational Behavior Factors KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 8:43 PM DATE MODIFIED: 9/3/2017 8:45 PM 159. Non-GAAP measures can be helpful: a. When a company has large equipment needs. b. When a company switched inventory evaluation methods. c. When a company has changed accounting practices. d. All of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Organizational Behavior Factors KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 8:45 PM DATE MODIFIED: 9/3/2017 8:47 PM 160. Provide the accounting for the following: Operating Revenues: Nonrecurring, non-operating gain: Nonrecurring, non-operating loss: Operating expenses: a. EBITDA is no income

$10,000,000 $4,000,000 $8,000,000 $6,000,000

b. GAAP is no income c. EBITDA is $4,000,000 d. None of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Organizational Behavior Factors KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/3/2017 8:47 PM DATE MODIFIED: 9/3/2017 8:49 PM 161. When did questions about FINOVA‟s numbers first arise? a. 1999 b. 2000 Copyright Cengage Learning. Powered by Cognero.

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c. 2001 d. None of the above ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Psychological and Behavior Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 9:01 PM DATE MODIFIED: 9/3/2017 9:03 PM 162. What happened to FINOVA‟s share price when it announced a write-down of a loan and the retirement of Sam Eichefeld as CEO? a. The share price dropped $0.72

b. The share price dropped but rebounded before the end of the day c. The share price dropped from $32 to $19.98 in one day d. None of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Psychological and Behavior Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 9:03 PM DATE MODIFIED: 9/3/2017 9:04 PM 163. How low did FINOVA‟s share price dip? a. To $1.12 b. To $0.72 c. To $0.24 d. To $0.06 ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Psychological and Behavior Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 9:04 PM DATE MODIFIED: 9/3/2017 9:06 PM 164. What are sensing mechanisms? a. Tools used by auditors to evaluate internal controls b. Tools used in coal mines to detect poison gasses Copyright Cengage Learning. Powered by Cognero.

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c. Tools used by managers to understand practices and issues in their organizations d. An HR tool for developing incentive plans ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Exampls, and Leadership KEYWORDS: Bloom's: Understand DATE CREATED: 9/3/2017 9:06 PM DATE MODIFIED: 9/3/2017 9:08 PM 165. Which of the following is true about Westland/Hallmark? a. It was a USDA Supplier of the Year b. It had rats in its cattle processing facilities c. The company was sanctioned, but its managers were not d. Both b and c ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Exampls, and Leadership KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 9:08 PM DATE MODIFIED: 9/3/2017 9:10 PM 166. How large was the change in the write-downs at Merrill Lynch between the beginning of October 2008 and three weeks into October? a. $8 billion

b. $5 billion c. $3 billion d. None of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 9:10 PM DATE MODIFIED: 9/3/2017 9:12 PM 167. Where was Enron incorporated? a. Houston, Texas b. Oregon Copyright Cengage Learning. Powered by Cognero.

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c. Delaware d. New York ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 9:12 PM DATE MODIFIED: 9/3/2017 9:14 PM 168. What did the sign in Enron‟s lobby read? a. The World‟s Premier Energy Company b. The Innovator c. The World‟s Leading Company d. None of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 9:14 PM DATE MODIFIED: 9/3/2017 9:15 PM 169. What type of revenues are reported using mark-to-market accounting? a. Oil sales b. Consulting services c. Energy sales contracts d. Energy services ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 9:16 PM DATE MODIFIED: 9/3/2017 9:17 PM 170. What did Ken Lay do when Bethany McLean was researching Enron? a. Called her editor and asked that she be removed from the story b. Answered all her questions Copyright Cengage Learning. Powered by Cognero.

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c. Thanked her for Fortune naming Enron one of the 100 best companies to work for d. None of the above ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 9:18 PM DATE MODIFIED: 9/3/2017 9:19 PM 171. What was Jeffrey Skilling‟s opinion of Bethany McLean? a. That she was unethical b. That she was a smart and skilled reporter c. That she did not understand Enron or its business d. Both a and c ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 9:20 PM DATE MODIFIED: 9/3/2017 9:21 PM 172. What was Jeffrey Skilling‟s opinion of Jim Chanos? a. That he was insightful b. That he would like to hire him c. That he was an “a**hole” d. Both a and b ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 9:21 PM DATE MODIFIED: 9/3/2017 9:23 PM 173. What happened when John Olson issued a skeptical report on Enron? a. He was given a bonus b. He was fired Copyright Cengage Learning. Powered by Cognero.

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c. He was recognized by the business press for his insight d. Both a and c ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 9:23 PM DATE MODIFIED: 9/3/2017 9:25 PM 174. What are SPEs? a. A form of gas energy b. Energy contracts c. Off-the-book entities d. None of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 9:25 PM DATE MODIFIED: 9/3/2017 9:26 PM 175. How many off-the-book entities had Enron created? a. 125 b. 452 c. 1200 d. 3000 ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/3/2017 9:27 PM DATE MODIFIED: 9/3/2017 9:28 PM 176. How much debt did Enron really have? a. $5 billion b. $13 billion Copyright Cengage Learning. Powered by Cognero.

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c. $38 billion d. None of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 11:50 AM DATE MODIFIED: 9/4/2017 11:51 AM 177. How much debt did Enron disclose? a. $5 billion b. $13 billion c. $38 billion d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 11:52 AM DATE MODIFIED: 9/4/2017 11:52 AM 178. Who of the following did business with Enron? a. Ken Lay‟s son b. Ken Lay‟s sister c. Both a and b d. Neither a nor b ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 11:53 AM DATE MODIFIED: 9/4/2017 11:54 AM 179. What reason did Ken Lay give for Jeffrey Skilling‟s departure from Enron? a. He had another job b. He wanted to spend more time with his family Copyright Cengage Learning. Powered by Cognero.

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c. He was fired d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 11:55 AM DATE MODIFIED: 9/4/2017 11:56 AM 180. Who was the CFO of Enron? a. Jeffrey Skilling b. Andrew Fastow c. Ken Lay d. John Olson ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 11:56 AM DATE MODIFIED: 9/4/2017 11:57 AM 181. Who said “Some would say the house of cards are falling”? a. Sherron Watkins b. Margaret Ceconi c. Jeffrey Skilling d. Bethany McClean ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 11:58 AM DATE MODIFIED: 9/4/2017 11:59 AM 182. Who is Sherron Watkins? a. An Arthur Andersen auditor b. An employee of Fortune Copyright Cengage Learning. Powered by Cognero.

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c. A former vice president of Enron d. None of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 11:59 AM DATE MODIFIED: 9/4/2017 12:00 PM 183. What happened to Andrew Fastow? a. He was convicted of fraud b. Nothing; he did nothing wrong c. He testified against Skilling and Lay d. Both b and c ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 12:01 PM DATE MODIFIED: 9/4/2017 12:02 PM 184. What happened to Ken Lay? a. He was acquitted of all charges b. He was convicted of all charges c. He was convicted of 8 of the 12 crimes he was charged with d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 12:02 PM DATE MODIFIED: 9/4/2017 12:03 PM 185. What happened to Cliff Baxter? a. He was convicted of all charges b. He was acquitted of all charges Copyright Cengage Learning. Powered by Cognero.

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c. He committed suicide d. Both a and c ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 12:04 PM DATE MODIFIED: 9/4/2017 12:05 PM 186. How much were Enron board members paid? a. $25,000 per year b. They were not paid c. $3,000,000 per year d. None of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 12:05 PM DATE MODIFIED: 9/4/2017 12:06 PM 187. Who said, “We are on the side of angels”? a. Investigators for the SEC b. Prosecutors for the Justice Department c. Jeffrey Skilling and Lloyd Blankfein d. Both a and b ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 12:07 PM DATE MODIFIED: 9/4/2017 12:08 PM 188. How much did Enron‟s creditors receive? a. Nothing b. 18.3 cents on the dollar Copyright Cengage Learning. Powered by Cognero.

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c. 50 cents on the dollar d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 12:08 PM DATE MODIFIED: 9/4/2017 12:10 PM 189. Who sold blocks of Enron stock in August and September 2001? a. Jeffrey Skilling b. Ken Lay c. Both a and b d. Neither a nor b ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 12:10 PM DATE MODIFIED: 9/4/2017 12:11 PM 190. Who said, "I am incredibly nervous that we will implode in a wave of accounting scandals"? a. Margaret Ceconi b. Cliff Baxter c. Jeffrey Skilling d. Sherron Watkins ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 12:12 PM DATE MODIFIED: 9/4/2017 12:16 PM 191. How many years was Jeffrey Skilling sentenced to? a. 6 years b. 11 years Copyright Cengage Learning. Powered by Cognero.

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c. 18.3 years d. 24.4 years ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 12:14 PM DATE MODIFIED: 9/4/2017 12:14 PM 192. What happened to Mr. Skilling‟s case on appeal? a. Some of the guilty verdicts were partially reversed b. The verdicts and sentence were affirmed c. The U.S. Supreme Court found that the trial should have been held in another state d. The U.S. Supreme Court refused to hear the case ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 12:17 PM DATE MODIFIED: 9/4/2017 12:19 PM 193. Who of the following people from Enron are still living as of 2017? a. Ken Lay b. Cliff Baxter c. Lea Fastow d. All of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 12:19 PM DATE MODIFIED: 9/4/2017 12:20 PM 194. Who said, “I considered [quitting] on a number of occasions. I was very well compensated. I didn‟t have the nerve to quit”?

a. Sherron Watkins b. Lea Fastow Copyright Cengage Learning. Powered by Cognero.

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c. Paula Reiker d. David Delainey ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 12:21 PM DATE MODIFIED: 9/4/2017 12:22 PM 195. Who said, “I wish on my kids‟ lives I would have stepped up and walked away from the table that day”? a. Sherron Watkins b. Andrew Fastow c. Paula Reiker d. David Delainey ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 12:23 PM DATE MODIFIED: 9/4/2017 12:24 PM 196. Who said, “My actions caused my wife to go to prison”? a. Andrew Fastow b. David Delainey c. Jeffrey Skilling d. Ken Lay ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 12:24 PM DATE MODIFIED: 9/4/2017 12:26 PM 197. What job did Bernie Ebbers hold while he was in Canada? a. Motel owner b. Junior high basketball coach Copyright Cengage Learning. Powered by Cognero.

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c. Long distance operator d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 12:26 PM DATE MODIFIED: 9/4/2017 12:28 PM 198. What would be the final merger for WorldCom? a. CompuServe b. GTE c. MCI d. Spring ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 12:28 PM DATE MODIFIED: 9/4/2017 12:29 PM 199. What was WorldCom‟s risk in relation to Mr. Ebbers‟ personal loans? a. Ebbers had conflicting business interests with WorldCom b. Embarrassment if the CEO did not repay his loans c. Loss of company control through creditor foreclosure on Ebbers‟ pledged shares d. The increase in the share price ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 12:30 PM DATE MODIFIED: 9/4/2017 12:31 PM 200. How much did the WorldCom board loan Ebbers? a. $20 million b. $100 million Copyright Cengage Learning. Powered by Cognero.

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c. $415 million d. $1.4 billion ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 12:31 PM DATE MODIFIED: 9/4/2017 12:33 PM 201. Which earnings management tool did WorldCom use? a. Transactional earnings management b. Materiality c. Reserves d. Both a and c e. Both a and b f. a, b, and c ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 12:34 PM DATE MODIFIED: 9/4/2017 12:36 PM 202. Who objected to WorldCom‟s practice of capitalizing ordinary expenses? a. Scott Sullivan b. Cynthia Cooper c. Bernie Ebbers d. Jack Grubman ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 12:36 PM DATE MODIFIED: 9/4/2017 12:38 PM 203. Who received the longest sentence in prison for their crimes?

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a. Andrew Fastow b. Jeffrey Skilling c. John Rigas d. Bernie Ebbers ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 12:38 PM DATE MODIFIED: 9/4/2017 12:40 PM 204. The WorldCom board: a. Was known as “Bernie‟s Board”. b. Consisted of experienced outsiders. c. Approved all loans to Ebbers before they were made. d. None of the above ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 12:41 PM DATE MODIFIED: 9/4/2017 12:42 PM 205. Which were not problems that resulted from WorldCom‟s high level of mergers? a. Merging billing systems was difficult b. Customer service concerns c. Collections suffered d. All of the above were problems ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 12:43 PM DATE MODIFIED: 9/4/2017 12:44 PM 206. What happened to WorldCom when its accounting issues and restatements were announced?

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a. Its share price fell to 13 cents b. NASDAQ delisted the stock c. Congress revoked WorldCom‟s federal contract d. All of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 12:44 PM DATE MODIFIED: 9/4/2017 12:46 PM 207. What was the total figure for WorldCom‟s earnings restatement? a. $3 billion b. $4.3 billion c. $6.8 billion d. $9 billion ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 12:46 PM DATE MODIFIED: 9/4/2017 12:47 PM 208. What assets were the Ebbers permitted to keep when the court seized property to pay Ebbers‟ fines? a. $50,000 b. Their home c. Their furniture d. Their silverware e. a, b, and c f. a, c and d g. All of the above ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 12:48 PM Copyright Cengage Learning. Powered by Cognero.

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DATE MODIFIED: 9/4/2017 12:50 PM 209. Who said, “I felt like if I didn‟t make the entries, I wouldn‟t be working there”? a. Troy Normand b. Buford Yates c. Betty Vinson d. Cynthia Cooper ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 12:50 PM DATE MODIFIED: 9/4/2017 12:52 PM 210. Who was held personally liable to WorldCom shareholders for their losses? a. NASDAQ b. The SEC c. WorldCom board members d. Jack Grubman ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 12:52 PM DATE MODIFIED: 9/4/2017 12:53 PM 211. To whom did the internal auditor at WorldCom express concerns? a. No one; the head of internal audit was indicted as well b. Scott Sullivan c. Audit committee and the board d. Both b and c ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 12:54 PM Copyright Cengage Learning. Powered by Cognero.

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DATE MODIFIED: 9/4/2017 12:55 PM 212. Tyco was originally founded: a. As a research lab. b. By Dennis Kozlowski. c. As a conglomerate. d. None of the above ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 12:56 PM DATE MODIFIED: 9/4/2017 12:58 PM 213. What was KELP at Tyco? a. The name for its acquisition program b. The subsidiary that developed off-shore properties c. The officer loan program d. None of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 12:58 PM DATE MODIFIED: 9/4/2017 1:00 PM 214. Which of the following officers raised concerns about loans to Tyco officers? a. Mark Belnick b. Mark Swartz c. Patricia Prue d. Karen Mayo ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 1:00 PM Copyright Cengage Learning. Powered by Cognero.

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DATE MODIFIED: 9/4/2017 1:01 PM 215. Which of the following accounting techniques did Tyco use? a. Spring-loading b. Inventory valuation changes c. Materiality d. Both a and b e. a, b, and c ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 1:02 PM DATE MODIFIED: 9/4/2017 1:03 PM 216. Which of the following was not a Kozlowski expense that Tyco paid for? a. Jimmy Buffett entertainment at Mrs. Kozlowski‟s birthday party b. A $6,000 shower curtain c. Ice sculptures in Sardinia d. All of the above were Kozlowski expenses paid for by Tyco ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 1:04 PM DATE MODIFIED: 9/4/2017 1:06 PM 217. Which director had a conflict of interest in his acceptance of a broker‟s fee for a Tyco acquisition? a. Mark Swartz b. Patricia Prue c. Frank E. Walsh d. Mark Belnick ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Apply Copyright Cengage Learning. Powered by Cognero.

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DATE CREATED: 9/4/2017 1:06 PM DATE MODIFIED: 9/4/2017 1:08 PM 218. Who warned Tyco officers about accounting issues and odd payments at Tyco? a. Frank E. Walsh b. Mark Belnick c. Patricia Prue d. Wilmer Cutler ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 1:09 PM DATE MODIFIED: 9/4/2017 1:10 PM 219. What other criminal charges did Kozlowski face beyond the Tyco issues? a. Insider trading b. Sales tax evasion c. Antitrust d. Money laundering ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 1:10 PM DATE MODIFIED: 9/4/2017 1:12 PM 220. Who said, “We don‟t believe in perks, not even executive parking spots”? a. Dennis Kozlowski b. Tyco's CEO following Kozlowski c. Patricia Prue d. Frank Walsh ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Remember Copyright Cengage Learning. Powered by Cognero.

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DATE CREATED: 9/4/2017 1:12 PM DATE MODIFIED: 9/4/2017 1:14 PM 221. Who of the following were named CFOs of the year by CFO Magazine? a. Mark Swartz b. Andrew Fastow c. Scott Sullivan d. All of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 1:14 PM DATE MODIFIED: 9/4/2017 1:16 PM 222. When testifying about the company-financed decorations for his New York City apartment, Mr. Kozlowski said: a. The decorations were “godawful.” b. The decorations were “expensive.” c. That he should have supervised the decoration purchases more. d. b and c e. All of the above ANSWER: e POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 1:16 PM DATE MODIFIED: 9/4/2017 1:18 PM 223. Who was acquitted of charges for their work at Tyco? a. Mark Belnick b. Mark Swartz c. Dennis Kozlowski d. a and b e. All of the above were acquitted or released because of a mistrial ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

The Fear-and-Silence Factors Bloom's: Remember 9/4/2017 1:18 PM 9/4/2017 1:21 PM

224. Joseph Jett: a. Held his first job at Kidder Peabody. b. Held a Harvard MBA. c. Was convicted of securities fraud. d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Psychological and Behavior Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 1:22 PM DATE MODIFIED: 9/4/2017 1:24 PM 225. The SEC concluded in the Jett decision: a. That Jett acted alone in his conduct. b. That Jett deceived Kidder Peabody. c. That Jett was able to adequately explain all of his profits and conduct. d. Both a and b ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Psychological and Behavior Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 1:25 PM DATE MODIFIED: 9/4/2017 1:27 PM 226. What was the motto of the Kidder Peabody bond department? a. “Always honest.” b. “Do it right and do it well.” c. “Never question success.” d. “The client first.”

ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

The Psychological and Behavior Factors Bloom's: Remember 9/4/2017 1:30 PM 9/4/2017 1:31 PM

227. What was Jett‟s penalty for his actions at Kidder Peabody? a. He was sentenced to federal prison for 5 years b. He was banished from the securities business for life c. He was required to repay Kidder all the money he lost d. Both a and c ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Psychological and Behavior Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 1:31 PM DATE MODIFIED: 9/4/2017 1:33 PM 228. Who was the CEO at GE at the time GE owned Kidder Peabody? a. Gary Lynch b. Edward Cerullo c. Jack Welch d. Linda LaPrade ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Psychological and Behavior Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 1:33 PM DATE MODIFIED: 9/4/2017 1:34 PM 229. Who said, “It‟s a pity that this happened. Jett could have made $2 to $3 million honestly”? a. The former head of the SEC who headed up the case against Kidder and Jett b. Gary Lynch c. Jack Welch d. CBS Sixty Minutes ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

The Psychological and Behavior Factors Bloom's: Remember 9/4/2017 1:35 PM 9/4/2017 1:36 PM

230. What did not happen to the engineers at NASA and Morton Thiokol following the Challenger explosion? a. They were recognized by their companies for excellence in engineering. b. They were able to continue working in their same positions after the investigations were completed. c. Some had medical effects following the explosion. d. Both a and b ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 1:37 PM DATE MODIFIED: 9/4/2017 1:39 PM 231. What acquisition fell through because of Diamond‟s problems with its accounting? a. The acquisition of Pringles b. The acquisition of Pepsi c. The acquisition of a chain of grocery stores d. No acquisition fell through ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 1:39 PM DATE MODIFIED: 9/4/2017 1:41 PM 232. Under Sarbanes-Oxley, which of the following would be a conflict of interest for the outside auditor of a company? a. Providing management consulting services to the company, too b. Providing actuarial service to the company, too c. Designing the company‟s financial system d. All of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

The Structural Factors: Governance, Example, and Leadership Bloom's: Apply 9/4/2017 1:42 PM 9/4/2017 1:44 PM

233. Under Sarbanes-Oxley, how often must the auditor partner in charge of an audit client be rotated? a. Every year b. Every two years c. Every five years d. There is no rotation requirement ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 1:45 PM DATE MODIFIED: 9/4/2017 1:46 PM 234. Under Sarbanes-Oxley, when must a company file an 8-K? a. Every quarter b. Only when selling stock c. Annually d. Within one day of any changes listed in the statute ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 1:47 PM DATE MODIFIED: 9/4/2017 1:48 PM 235. Under Sarbanes-Oxley, who cannot be a member of an audit committee of a publicly traded company? a. Officer b. Outside lawyer for the company c. Consultant to the company d. All of the above cannot be a member of the company‟s audit committee ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

The Structural Factors: Governance, Example, and Leadership Bloom's: Apply 9/4/2017 1:49 PM 9/4/2017 1:50 PM

236. How much of Andersen‟s Enron revenues came from auditing fees? a. $27 million b. $25 million c. $52 million d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 1:51 PM DATE MODIFIED: 9/4/2017 1:53 PM 237. How much of Andersen‟s Enron revenues came from consulting fees? a. $27 million b. $25 million c. $52 million d. None of the above ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 1:53 PM DATE MODIFIED: 9/4/2017 1:54 PM 238. David Duncan, the audit partner in charge of the Enron account for the Houston Andersen office: a. Was close friends with Andrew Fastow. b. Was close friends with Sherron Watkins. c. Was close friend with Richard Causey. d. None of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

The Industry Practices and Legal Factors Bloom's: Remember 9/4/2017 1:54 PM 9/4/2017 1:56 PM

239. What ethics code provision did the board waive for Andrew Fastow? a. Additional bonus payments beyond other officers b. Payment from an entity that Enron does business with c. Gifts from vendors d. All of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Understand DATE CREATED: 9/4/2017 1:56 PM DATE MODIFIED: 9/4/2017 1:59 PM 240. Whom did David Duncan contact about the proposed off-the-books entities that Enron had proposed? a. The Justice Department b. Nancy Templeton c. Benjamin Neuhausen, a standards partner d. Both b and c e. All of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 1:59 PM DATE MODIFIED: 9/4/2017 2:01 PM 241. Who else did David Duncan consult about the off-the-book entities? a. Sherron Watkins b. His wife c. His pastor d. Both b and c e. All of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate Copyright Cengage Learning. Powered by Cognero.

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QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 2:01 PM DATE MODIFIED: 9/4/2017 2:02 PM 242. How did Andersen‟s lead defense lawyer describe David Duncan? a. “A client pleaser” b. “Someone who is free from corruption” c. “A straight shooter” d. Both b and c ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 2:02 PM DATE MODIFIED: 9/4/2017 2:04 PM 243. Who reminded employees of Andersen‟s document destruction policy? a. David Duncan b. Benjamin Neuhausen, the standards partner c. Nancy Templeton, the Andersen lawyer d. The SEC ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 2:04 PM DATE MODIFIED: 9/4/2017 2:06 PM 244. Prior to the Enron collapse, how many employees did Andersen have? a. 3,300 b. 7,000 c. 11,000 d. 36,000 ANSWER: d POINTS: 1 DIFFICULTY: Moderate Copyright Cengage Learning. Powered by Cognero.

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QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 2:06 PM DATE MODIFIED: 9/4/2017 2:07 PM 245. What was part of HealthSouth‟s vision statement? a. The health care choice for the rich and famous b. The hospital model for the future of health care c. Full service health care from diagnosis to physical therapy and recovery d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 2:07 PM DATE MODIFIED: 9/4/2017 2:10 PM 246. The “Monday morning beatings” referred to: a. Staff meetings with Scrushy about numbers performance. b. Staff meetings with Scrushy on facility upkeep and maintenance. c. Staff meetings in which managers who violated rules were dressed down. d. None of the above ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 2:10 PM DATE MODIFIED: 9/4/2017 2:12 PM 247. How many CFOs did Scrushy have at HealthSouth from 1998 through 2003? a. One b. Three c. Four d. Five ANSWER: d POINTS: 1 DIFFICULTY: Moderate Copyright Cengage Learning. Powered by Cognero.

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QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Understand DATE CREATED: 9/4/2017 2:12 PM DATE MODIFIED: 9/4/2017 2:14 PM 248. Who recorded phone conversations with Scrushy in order to document numbers manipulation? a. Leslie Scrushy b. William Owens c. Diana Henze d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 2:15 PM DATE MODIFIED: 9/4/2017 2:16 PM 249. The HealthSouth “Pristine Audit” focused on: a. The accuracy of the revenue numbers. b. The patient billing and coding. c. Facility conditions and quality control. d. None of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Understand DATE CREATED: 9/4/2017 2:17 PM DATE MODIFIED: 9/4/2017 2:18 PM 250. The total restatement of revenues at HealthSouth was: a. $1 billion. b. $1.5 billion. c. $2.0 billion. d. $2.5 billion.

ANSWER: d POINTS: 1 DIFFICULTY: Moderate Copyright Cengage Learning. Powered by Cognero.

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QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Understand DATE CREATED: 9/4/2017 2:18 PM DATE MODIFIED: 9/4/2017 2:30 PM 251. Which of the following is not a conflict of interest? a. A HealthSouth director with a $250,000 per year consulting contract with HealthSouth b. A HealthSouth director with a joint investment with Richard Scrushy c. A HealthSouth director who is also a physician d. A HealthSouth director who receives a $425,000 donation from HealthSouth to the charity whose board he serves on

ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Apply DATE CREATED: 9/4/2017 2:21 PM DATE MODIFIED: 9/4/2017 2:23 PM 252. You work in the finance division of a NYSE company. You have just learned that your supervisor has been using information on quarterly returns, prior to the time they are made public, to trade in the company's stock. You: a. Need not do anything because the SEC will eventually uncover his activities.

b. Need not do anything because only officers are prohibited from trading on inside information. c. Must confront the supervisor. d. Must report the activity in some way.

ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/4/2017 2:24 PM DATE MODIFIED: 9/4/2017 2:26 PM 253. Which of the following is not a form of earnings management? a. Timing of booking of sales b. Attaching values to contracts for purposes of booking revenue c. Shipping to warehouses to book sales d. Postponing booking returns e. All of the above are forms of earnings management ANSWER: e Copyright Cengage Learning. Powered by Cognero.

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POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Organizational Behavior Factors KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/4/2017 2:26 PM DATE MODIFIED: 9/12/2017 6:06 PM 254. Dennis Kozlowski, Mark Swartz and Mark Belnick of Tyco: a. All feel that because they did not break the law that they were ethical. b. Were all convicted of various felonies. c. Were fired for trying to raise issues. d. None of the above ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Understand DATE CREATED: 9/4/2017 2:30 PM DATE MODIFIED: 9/4/2017 2:32 PM 255. The KELP program at Tyco: a. Was not abused; accounting issues were unrelated. b. Was poorly supervised and administered. c. Violated federal law at the time. d. Was embezzlement.

ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 2:33 PM DATE MODIFIED: 9/4/2017 2:35 PM 256. What Enron accounting practice did Arthur Andersen label as medium to high risk? a. SPEs b. Mark-to-market accounting c. Officers as principals of other firms doing business with Enron d. a and c e. a, b, and c Copyright Cengage Learning. Powered by Cognero.

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ANSWER: e POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Understand DATE CREATED: 9/4/2017 2:36 PM DATE MODIFIED: 9/4/2017 2:38 PM 257. Arthur Andersen was convicted of what crime in relation to its work on Enron? a. Conspiracy b. Obstruction of justice c. Mail fraud d. All of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 2:39 PM DATE MODIFIED: 9/4/2017 2:40 PM 258. What auditor practice was stopped by Sarbanes-Oxley? a. Joint audit and consulting contracts for the same companies b. Auditing the same company for two years in a row c. CPA certification d. Compensation of auditors by their audit clients ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 2:41 PM DATE MODIFIED: 9/4/2017 2:43 PM 259. WorldCom‟s accounting scandal resulted from: a. Embezzlement. b. Capitalization of ordinary expenses. c. A downturn in the telecommunications market demand. d. Both b and c Copyright Cengage Learning. Powered by Cognero.

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e. None of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 2:44 PM DATE MODIFIED: 9/4/2017 2:45 PM 260. A predatory loan: a. Is a loan that exceeds certain interest limitations or contains certain loan structures. b. Is any subprime loan. c. Can be affected by some state and local laws. d. None of the above ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 2:46 PM DATE MODIFIED: 9/4/2017 2:48 PM 261. The subprime loan market infiltrated investment firms: a. Because financial instruments were tied to mortgage and mortgage value. b. Because many of the investment firms were subprime lenders. c. Because investment firms had purchased many mortgages. d. Both a and c e. All of the above ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 2:49 PM DATE MODIFIED: 9/4/2017 2:51 PM 262. Who said, “Subprime mortgages can be productive and fruitful. We just have to put boundaries in place”? a. CEO of Citigroup b. CEO of Merrill Lynch Copyright Cengage Learning. Powered by Cognero.

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c. North Carolina‟s Attorney General d. Alan Greenspan ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 2:52 PM DATE MODIFIED: 9/4/2017 2:54 PM 263. Warren Buffett is the CEO of: a. Home Depot. b. Berkshire Hathaway. c. Southwest Airlines. d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Organizational Behavior Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 2:55 PM DATE MODIFIED: 9/4/2017 2:57 PM 264. Warren Buffett was paid less: a. Than the average employee of his company. b. Than the other officers of his company. c. Than only one other CEO. d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Organizational Behavior Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 2:57 PM DATE MODIFIED: 9/4/2017 2:59 PM 265. Which of the following were convicted of bank fraud and securities fraud? a. John Rigas b. Michael Rigas Copyright Cengage Learning. Powered by Cognero.

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c. Ellen Rigas d. All of the above were convicted ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Culture of Goodness KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 3:00 PM DATE MODIFIED: 9/4/2017 3:02 PM 266. Why did Albert Meyer hesitate to disclose his findings on New Era? a. He was not sure b. He was asked by his superiors to let it go c. He did not have tenure d. Both b and c e. All of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Culture of Goodness KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 3:02 PM DATE MODIFIED: 9/4/2017 3:05 PM 267. William Aramony: a. Was convicted of fraud and served a prison sentence. b. Still received his compensation. c. Had his pay taken by the federal court. d. a and b only e. a, b and c ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Culture of Goodness KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 3:05 PM DATE MODIFIED: 9/4/2017 3:07 PM 268. What was the impact of the behavior of the Jefferson County, Alabama supervisors on the city of Birmingham?

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a. The city of Birmingham got a new election process b. None – it only affected the county c. The city of Birmingham went bankrupt d. None of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Organizational Behavior Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 3:08 PM DATE MODIFIED: 9/4/2017 3:10 PM 269. Which of the following is an effective tool for preventing company/organization lapses? a. Ethics training b. Enforcement c. Screening d. Industry organizations ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Psychological and Behavior Factors KEYWORDS: Bloom's: Understand DATE CREATED: 9/4/2017 3:11 PM DATE MODIFIED: 9/4/2017 3:13 PM 270. Which of the following is an effective tool for preventing individual ethical lapses? a. Ethics training b. Screening c. Internal controls d. All of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Psychological and Behavior Factors KEYWORDS: Bloom's: Understand DATE CREATED: 9/4/2017 3:14 PM DATE MODIFIED: 9/12/2017 6:07 PM 271. Which of the following is an effective tool for preventing industry level ethical lapses?

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a. Self-regulatory activism b. Ethics training c. Screening d. Internal controls ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Psychological and Behavior Factors KEYWORDS: Bloom's: Understand DATE CREATED: 9/4/2017 3:15 PM DATE MODIFIED: 9/4/2017 3:18 PM 272. Which of the following is an effective tool for stopping cultural and societal ethical shifts? a. Ethics training b. Screening c. Internal controls d. Educational standards ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Psychological and Behavior Factors KEYWORDS: Bloom's: Understand DATE CREATED: 9/4/2017 3:18 PM DATE MODIFIED: 9/4/2017 3:20 PM 273. Who is the “Rain man”? a. The man responsible for the losses at UBS b. The man responsible for the losses at Chase c. A nickname for Joseph Kett d. A nickname for Robert Citron ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Psychological and Behavior Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 3:21 PM DATE MODIFIED: 9/4/2017 3:23 PM 274. Who is responsible for the losses at Chase?

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a. Joseph Jett b. Jerome Kerviel c. The “Rain man” d. The “London Whale” ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Psychological and Behavior Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 3:24 PM DATE MODIFIED: 9/4/2017 3:34 PM 275. What was different about the losses resulting from Robert Citron‟s conduct? a. He was not given discretion on trading b. He was not earning bonuses for profitable yields and trades c. There are no differences d. He did not invest in anything risky ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Psychological and Behavior Factors KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/4/2017 3:26 PM DATE MODIFIED: 9/4/2017 3:30 PM 276. What problem did Claremont McKenna encounter that resulted in national headlines about the school? a. It was allowing law students to attend review courses b. It was allowing law students to use application consultants c. It was increasing its SAT score averages above what they actually were d. There was no problem except a rogue admissions officer ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Psychological and Behavior Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 3:31 PM DATE MODIFIED: 9/4/2017 3:33 PM 277. What happened to Matthew Lee when he raised questions about Lehman‟s risk level?

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a. The board responded and fired the company‟s CEO b. Federal regulators arrived and closed down the investment bank c. Outside auditors began an investigation d. He was fired ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 3:34 PM DATE MODIFIED: 9/4/2017 3:38 PM 278. Repo 105: a. Is a toll that Enron used for off-the-book entities. b. Allowed debt instruments to be sold prior to public announcement of financial results. c. Was used by WorldCom to capitalize ordinary expenses. d. Was Chases‟ derivative trading strategy.

ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 3:39 PM DATE MODIFIED: 9/4/2017 3:41 PM 279. Which of the following would be an individual ethical lapse? a. Shipping out goods early without customer‟s permission b. Inflating your travel expenses c. Following what other competitors are doing d. Capitalizing ordinary expenses ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Psychological and Behavior Factors KEYWORDS: Bloom's: Apply DATE CREATED: 9/4/2017 3:42 PM DATE MODIFIED: 9/4/2017 3:45 PM 280. How does numbers pressure develop in an organization?

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a. Through incentive plans b. Through performance evaluations c. Through amount of time devoted to discussing numbers and performance d. All of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Psychological and Behavior Factors KEYWORDS: Bloom's: Understand DATE CREATED: 9/4/2017 3:46 PM DATE MODIFIED: 9/4/2017 3:48 PM 281. What did Hughie Elbert Stover not do at the Upper Big Branch mine that resulted in criminal charges against him and Massey Coal? a. He took federal mine inspectors on tours that avoided certain areas

b. He instructed others to destroy mine document records c. He trained security guards to provide warnings over the radio about the presence of federal mine inspectors d. All of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Understand DATE CREATED: 9/4/2017 3:49 PM DATE MODIFIED: 9/4/2017 3:53 PM Essay 282. Leslie Fay Companies was a clothing conglomerate that produced lines of women‟s clothing and lingerie under the brand names Leslie Fay, Joan Leslie, Albert Nipon, Theo Miles, Kasper, Le Suit, Nolan Miller, Castleberry, and Castlebrook. In early 1993, it was discovered that senior Leslie Fay executives, in an effort to inflate profits and to mask an actual loss of $13.7 million, had perpetrated an accounting fraud. Paul Polishan, Leslie Fay‟s chief operating officer, was placed on leave without pay in January 1993, along with Donald F. Kenia, the corporate controller. Mr. Kenia had first alerted the company to the accounting manipulations and worked with auditors to untangle the books.

By April 1993, Leslie Fay, under intense pressure from creditors, filed for Chapter 11 bankruptcy (reorganization) in Manhattan. Both Mr. Polishan and Mr. Kenia were fired. Mr. Kenia, charged with two counts of filing false statements with the SEC, has entered into a plea bargain with the U.S. Attorney in exchange for his cooperation in the continuing investigation of the Leslie Fay accounting improprieties.

Also in April 1993, two new outside directors were named to the Leslie Fay board. The audit committee of the board discovered, through continuing investigation, that accounting irregularities had inflated the company‟s profits for at least five quarters beginning in the fall of 1990.

As Leslie Fay continued its climb from bankruptcy, it was discovered that its law firm, Weil Gotshall & Manges, had failed to disclose its close ties to two board audit committee members. A federal bankruptcy judge ordered the law firm to pay fines totaling $800,000, which was the cost of having an independent review of the law firm‟s representation and conduct Copyright Cengage Learning. Powered by Cognero.

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in the case.

In March 1995, Leslie Fay placed its flagship dress and retail business up for sale and offered its CEO a success fee of $1.5 million if those businesses were sold.

Also in March 1995, a report detailing accounting improprieties was released by the audit committee of the Leslie Fay board. The board found that when executives realized they would not meet pre-established goals, they would ship goods out to a Wilkes-Barre, Pennsylvania, facility to inflate sales. The executives also forged inventory tags, multiplied the value of inventory, developed phantom inventory and altered records to meet sales target. Some goods were invoiced to be shipped in the final day of a quarter even though they were not actually shipped until the next quarter. Numerous shareholders have filed suit against the Leslie Fay board and BDO Seidman, the company‟s auditor during this period.

John Pomerantz continued as CEO from 1993 onward. The company has tried to find a buyer but has remained unsuccessful in doing so. a.

What signals about the importance of earnings at Leslie Fay were sent to the officers who committed the accounting improprieties? b.

Wouldn‟t employees have been aware of the financial fraud? Why didn‟t they speak up? Why didn‟t they tell someone? c.

How might Leslie Fay have prevented what happened?

d.

If you were the new chief financial officer, what message would you most want to impress upon all Leslie Fay employees? e.

Of what significance are the law firm‟s ties to the board‟s audit committee members? Did these ties set a poor tone at the top? a.

The pressure to make quarterly earnings was so intense that the officers were willing to ANSWER: engage in deception, fabrication, shifting of sales, etc. to meet the earnings figures. b.

Employees may very well have been aware of the fraud, but with an ethical culture in which the officers were involved, it wouldn‟t have done any good to speak up. In a culture such as this one, employees would be afraid to bring such matters to anyone‟s attention. c.

Changing the signals to officers would have helped. The intense focus on earnings and pressure to meet goals set the stage for the deception. d.

The message would be: Earnings the Right Way Earnings Through Sales and Satisfaction Integrity Without Compromise

e.

There are conflicts of interest. Legal counsel for a business (which owes its business and account to the company) is not a good source for audit committee members. The ties suggest “good ol‟ pal network” and “you scratch my back...”.

Note: At the time of the discovery of the earnings misrepresentation, Leslie Fay‟s stock was at $13 per share. In June, 1995, the price had dropped to 13/22. Leslie Fay continues to attempt to struggle out of bankruptcy.

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: The Psychological and Behavior Factors Temptation at Work for Individual Gain and That Credo The Organizational Behavior Factors The Structural Factors: Governance, Example, and Leadership The Industry Practices and Legal Factors The Fear-and-Silence Factors Copyright Cengage Learning. Powered by Cognero.

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The Culture of Goodness KEYWORDS: Bloom's: Apply DATE CREATED: 9/3/2017 2:03 PM DATE MODIFIED: 9/3/2017 2:06 PM 283. Albertson‟s, the grocery retailer, has the highest profit margins in the industry at 6%. A union has filed suit against Albertson‟s for its “off-the-clock” without pay practices with respect to manager trainees. These trainees worked 4-5 hours extra each week without pay and did not complain because of promises of progression in the organization. When progression did not materialize, the trainees returned to checking positions and their union filed a class action suit on their behalf. The potential for back pay and penalties in the case is $200 million.

Albertson‟s notes that some managers may prod trainees to work longer without pay but that such is not company policy. a. Who is responsible for the “off-the-clock” policy? b. Is it each store manager or Albertson‟s? c. Is “off-the-clock” an ethical policy? a.

Students should discuss management‟s role in encouraging the practice even though ANSWER: individuals decide. b.

Students should discuss pressure for breaches.

c.

The policy takes unfair advantage of employees who wish to advance and is a technical rules violation.

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: The Psychological and Behavior Factors Temptation at Work for Individual Gain and That Credo The Organizational Behavior Factors The Structural Factors: Governance, Example, and Leadership The Industry Practices and Legal Factors The Fear-and-Silence Factors The Culture of Goodness KEYWORDS: Bloom's: Apply DATE CREATED: 9/3/2017 2:10 PM DATE MODIFIED: 9/3/2017 2:11 PM 284. Explain the point George Lefcoe was making with his experience with the hams as gifts.

Professor Lefcoe was trying to show that we have gradual slippage on ethics as we move the line ANSWER: ever so slightly, within our comfort level, and then each time we move the line we go farther and farther and end up doing something we said we would never do.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Temptation at Work for Individual Gain and That Credo KEYWORDS: Bloom's: Analyze DATE CREATED: 9/4/2017 3:54 PM DATE MODIFIED: 9/4/2017 3:57 PM Copyright Cengage Learning. Powered by Cognero.

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285. Albertson‟s, the grocery retailer, has the highest profit margins in the industry at 6%. A union has filed suit against Albertson‟s for its “off-the-clock” without pay practices with respect to manager trainees. These trainees worked 4-5 hours extra each week without pay and did not complain because of promises of progression in the organization. When progression did not materialize, the trainees returned to checking positions and their union filed a class action suit on their behalf. The potential for back pay and penalties in the case is $200 million.

Albertson‟s notes that some managers may prod trainees to work longer without pay but that such is not company policy. a.

Who is responsible for the “off-the-clock” policy?

b.

Is it each store manager or Albertson‟s?

Is “off-the-clock” an ethical policy? a.

Students should discuss management‟s role in encouraging the practice even though ANSWER: individuals decide. c.

b.

Students should discuss pressure for breaches.

c.

The policy takes unfair advantage of employees who wish to advance and is a technical rules violation.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: The Psychological and Behavior Factors KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/4/2017 3:58 PM DATE MODIFIED: 9/4/2017 4:00 PM 286. National Medical Enterprises, Inc. (NME) is a multinational health care enterprise with 143 hospitals on four continents. NME was started by Richard K. Eamer, a tax attorney, in the 1960s. Eamer's development of NME was possible because of the implementation of the Medicare and Medicaid programs. He saw the programs as opportunities for a virtual guarantee of profits.

He began by acquiring six hospitals. He paid for these hospitals with promises to the physicians on staff of stock in his company. After the six hospitals were acquired, Eamer did a $25 million national stock offering and gave the physicians shares of stock in NME. Eamer adopted a decentralized structure for the company. Hospital managers were simply given a financial goal and complete autonomy in their operations. Eamer traveled a great deal and used a company plane to get to NME-owned condominiums in London and Aspen. While Eamer was not a hands-on manager, he set very clear goals for NME managers. Achievement of established goals was rewarded. Under NME's pay structure, it was possible for managers to double their pay by meeting goals. Eamer was harsh when goals were not met. In meetings he would refer to those executives who had failed to meet established goals as "morons."

Eamer's managerial style paid off in the form of earnings growth of 15% per year through 1985. But, in 1986, earnings growth was off, down to 3%.

When informed by his managers of the decline in earnings growth, Eamer announced that NME would now focus on operating and acquiring psychiatric, substance-abuse and rehabilitation hospitals. NME had 62 psychiatric hospitals in 1986, but by 1991, that number had grown to 86. Further, NME occupancy rates for its psychiatric hospitals were 25% higher than any of its competitors. NME maintained an occupancy rate of 84%.

The director of NME's Fair Oaks Hospital in New Jersey, testified at a Congressional hearing that NME executives circulated information on how to maximize insurance payments. Strategies included longer stays and additional tests.

NME's intake manual specified as a goal that one of every two people who came to the hospital for a psychological assessment would be hospitalized.

Some adolescent patients were billed for as many as 10 therapy sessions per day. A memo from one senior officer to the Copyright Cengage Learning. Powered by Cognero.

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various NME hospitals stated that the length of a patient's stay would be determined "not by the patient's individual medical needs, but on the insurance or payor mix." A controller for an NME hospital in Texas testified that probation officers, clergymen and officers in corporation employee-assistance offices were offered up to $2,000 in referral or "bounty hunter fees" for referring patients to NME. The controller also testified that he was required to make "cold calls" on facilities for purposes of soliciting referrals. He indicated that one of his cold calls was to a nursery school.

Former executives of NME have provided information showing that physicians were given 50-year leases for $1 per year

by NME and then referred their patients exclusively to NME hospitals. Many of these physician-occupied buildings operated at a loss. Both Medicare and Medicaid regulations prohibit payment of referrals fees to physicians.

By 1991, occupancy rates at NME psychiatric hospitals were down to 52%. Eamer began selling of the psychiatric hospitals and announced to shareholders than NME would return its focus to its core 35 general hospitals. In announcing the refocus to shareholder, Eamer noted, "Our focus is on the patient. We know everything else will follow." a.

What type of ethical culture existed at NME? Why?

b.

What does NME need to change?

c.

Do you think NME's strategies with respect to the psychiatric hospitals were ethical?

d.

Evaluate the ethics of clergymen, counselors, and probation officers accepting referral fees. a.

NME had a culture very much focused on earnings. Bonuses were tied to financial goals and achievement of occupancy rates. The quality of care and the needs of the patients were strictly sub-issues to the issue of earnings. It was also a culture that came as close to breaking the law as one can. The rent subsidies to physicians were arguable violations of the law. Further, the tolerance for less-than-goal performance was non-existent. In fact, managers were treated as "morons" for not achieving their goals. The focus in this company's culture was so much on earnings growth that the message came across as "earnings at any cost."

ANSWER:

b.

NME needs to change its "earnings at any cost" approach. Eamer may also need to be replaced as at least a symbol of the company's refocus. Its admissions policies, referral practices and discharge standards need to be set with a focus on the law and patients' needs as opposed to financial goals exclusively. c.

No, NME's standards could not survive the front page of the newspaper test. NME's approach was earnings at any cost. The approach was not balanced and, in some cases, bordered on illegality. NME treated hospitalization for psychiatric needs as a potential sales market to be tapped through sales calls and referrals. d.

The members of the clergy, the counselors and the probation officers have conflicts of interest. They are to be acting in the best interests of their clients and by accepting referral fees they have an interest in seeing as many of them hospitalized as possible. Further, they would have an interest in their patients going to a certain hospital as opposed to a referral to the facility that would be best for the patient.

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: The Psychological and Behavior Factors KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/4/2017 4:01 PM DATE MODIFIED: 9/4/2017 4:04 PM 287. List five categories of ethical and moral development and explain each one and give an example of each.

Refer to page 220 in the text for a list of the categories and examples in each.

ANSWER: POINTS: 1 DIFFICULTY: Moderate Copyright Cengage Learning. Powered by Cognero.

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QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Temptation at Work for Individual Gain and That Credo KEYWORDS: Bloom's: Analyze DATE CREATED: 9/4/2017 4:05 PM DATE MODIFIED: 9/4/2017 4:07 PM 288. Describe the impact of a company‟s reliance on computer models.

Such models do not take into account the observations of managers in a dynamic market or the ANSWER: types of qualitative bits of information that affect the underlying assumptions in the models.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: The Organizational Behavior Factors KEYWORDS: Bloom's: Analyze DATE CREATED: 9/4/2017 4:07 PM DATE MODIFIED: 9/4/2017 4:09 PM 289. Explain the process prosecutors use to obtain guilty pleas and convictions among the high executive ranks of a company for financial fraud.

The prosecutors bring charges against lower and middle managers and in exchange for plea ANSWER: bargains gather both their testimony and other evidence to then use against those who are in higher positions in the company. The prosecutors start at the frontline of the company with those employees who make the journal entries and work their way up, gathering testimony as well as information and documents.

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/4/2017 4:10 PM DATE MODIFIED: 9/4/2017 4:13 PM 290. Discuss the ethics of walking away from a mortgage. Be sure to include an analysis of any rationalizations.

The “walking away” phenomenon has caught on because “everyone is doing it.” However, there ANSWER: are implications and the analysis should begin with who is affected by the decision to walk away: mortgage lender, neighbors because of a decline in property values; communities because of the impact of large numbers of foreclosures; future borrowers because of stricter requirements and larger down payments; builders, suppliers, etc., as demand for homes goes down because the financing is not there both because of excessive homes on the market and also because lenders will be skittish following such a mass exodus on obligations.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Analyze Copyright Cengage Learning. Powered by Cognero.

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DATE CREATED: 9/4/2017 4:13 PM DATE MODIFIED: 9/4/2017 4:16 PM 291. Explain why the Westland/Hallmark Meat Company employees used forklifts and shocks in processing cattle and why.

ANSWER:

The employees used those tools to create more “standers,” or cattle that could be slaughtered for the meat supply rather than euthanized and disposed of. The employees were compensated on a per-head basis and the result was that they were trying to do everything that they could to get more cattle into the meat supply, even the downers that they forced to stand up.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Analyze DATE CREATED: 9/4/2017 4:17 PM DATE MODIFIED: 9/4/2017 4:20 PM 292. Discuss the effect of the termination of a whistleblower on the culture of an organization.

The effect of terminating a whistleblower is one that is chilling. Employees are unlikely to bring ANSWER: issues to the attention of managers and boards if they feel that their jobs are at risk.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership The Fear-and-Silence Factors KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/4/2017 4:22 PM DATE MODIFIED: 9/4/2017 4:24 PM 293. List the tools companies can use for getting information from employees to those who can and will do something about the issues being raised.

ANSWER:

   

Have a reporting system in place.

Be willing to tolerate dissent and discussion.

Develop sensing mechanisms.

Don‟t look for absolution; look for resolution.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/4/2017 4:24 PM DATE MODIFIED: 9/12/2017 6:09 PM 294. Explain the role of group think in the decision to launch the Challenger.

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ANSWER:

The pressure existed to make the mission go because of the presence of the teacher and the desire of NASA to make a good public relations case for continued funding. The contractors also wanted to please NASA. The comment about management hats vs. engineering hats indicated they were all supposed to think alike.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/4/2017 4:28 PM DATE MODIFIED: 9/4/2017 4:29 PM 295. Evaluate and compare the actions of LiCari at Beech-Nut and Boisjoly at NASA. Students should discuss how they went about raising the issues (following the lines of authority) ANSWER: and what dilemmas they were faced with when they could not persuade those in the company to take action. LiCari, as did Talcott, left the company because of his concerns. Students should discuss that the options are to try to be an agent of change, do nothing, leave or any combination of those. Boisjoly stayed until he retired. They were caught in large corporations with dilemmas about important products and were uncertain which way to turn.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/4/2017 4:30 PM DATE MODIFIED: 9/4/2017 4:30 PM 296. Describe which ethical models would help auditors and financial officers as they work to prepare fair and accurate financial statements.

ANSWER:

Students should address the simple questions such as Blanchard/Peale – Is it balanced? Or, Kant – If it were me, if I were the shareholder or creditor, would I want this information to be disclosed?

Other questions that would help with accounting analysis include: Why am I doing the financial report this way? Is there a false impression these financial reports leave? Over the long term, will we be perceived as fair in our accounting and financial reports?

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: The Organizational Behavior Factors KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/4/2017 4:31 PM DATE MODIFIED: 9/4/2017 4:32 PM 297. Provide the accounting for the following: Operating Revenues: Nonrecurring, non-operating gain: Nonrecurring, non-operating loss: Operating expenses: Copyright Cengage Learning. Powered by Cognero.

$10,000,000 $4,000,000 $8,000,000 $6,000,000 Page 287

ANSWER:

EBITDA is a $4,000,000 profit ($10,000,000- $6,000,000) ALTERNATIVE EBITDA is an $8,000,000 profit ($10,000,000 - $6,000,000 + $4,000,000 gain (but not loss)) GAAP is $0 in earnings ($10,000,000 + $4,000,000 - $8,000,000 - $6,000,000)

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: The Organizational Behavior Factors KEYWORDS: Bloom's: Apply DATE CREATED: 9/4/2017 4:33 PM DATE MODIFIED: 9/4/2017 4:35 PM 298. What common characteristics do you see in the HealthSouth, Adelphia, Fannie Mae, FINOVA, Tyco, WorldCom and Enron cases?

ANSWER:

The leaders were well known, charismatic and respected. The companies and many of the executives were very generous in the community. The companies had done very well and wanted to continue to do well. The companies had many young people who were striving to get ahead.

The companies were part of new industries, new generations of leaders, and felt a bit immune from the day-to-day dull business practices. There was creative accounting employed at all the companies (at MiniScribe it was physical) and at the others there were more sophisticated manipulations. Also, the officers and employees were all committed to reaching certain goals related to share price, EPS, or revenues. And many employees were fearful.

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: The Culture of Goodness The Fear-and-Silence Factors The Industry Practices and Legal Factors The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/4/2017 4:36 PM DATE MODIFIED: 9/4/2017 4:38 PM 299. Dennis Kozlowski said, “Money is the only way to keep score.” Is this Mr. Kozlowski‟s credo? Discuss how this view might interfere with his ability to analyze ethical issues.

The students should discuss that such a view is indeed his credo because money is how he ANSWER: measures his success and worth as well as the worth of others. With that as his driving force, his decisions would all be grounded in whether he could make money, not in whether the decision was best for the company or what consequences could result from the decision. The narrow perspective deprived Kozlowski of even just a picture of the longer term consequences of his choices.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/4/2017 4:39 PM Copyright Cengage Learning. Powered by Cognero.

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DATE MODIFIED: 9/4/2017 4:40 PM 300. Compare Ed Cerullo as a boss to Dennis Kozlowski. Then discuss the culture at Kidder and compare it with the cultures at Tyco, WorldCom, MiniScribe, Bausch and Lomb, and Enron.

The case indicates that traders understated profits so that they could have reserves when there ANSWER: were losses because they so feared Cerullo. The motto was, “Never question success,” so the cultures were similar in that everyone was geared toward results, regardless of how you got them.

Bosses were fearsome, employees were fearful, and results, results, results, without parameters, were the key to keeping your job as well as the bonuses that awaited. In short, the cultures were similar: Numbers pressure Fear of not meeting numbers Manipulation to meet numbers Supervisors and officers were strong individuals who used fear and intimidation to get results No bad news wanted No questions asked about behavior Those who raised questions were written up or terminated

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors The Psychological and Behavior Factors KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/4/2017 4:40 PM DATE MODIFIED: 9/4/2017 4:42 PM 301. List the factors that determine the tone at the top.

Students should explain that at the top there should be a focus beyond just what is legal. Students ANSWER: should also discuss the findings that bad judgment among executives is bad judgment, whether in personal life or at the company. Employees look to leaders for examples and when those examples are not exemplary, there is a bad tone at the top. A lack of enforcement of the rules at the top also creates problems. Defensiveness doesn‟t serve anyone well because if executives are not willing to admit missteps, companies can‟t progress and employees are also hesitant to admit mistakes.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: The Organizational Behavior Factors KEYWORDS: Bloom's: Understand DATE CREATED: 9/4/2017 4:42 PM DATE MODIFIED: 9/4/2017 4:43 PM 302. When Enron first proposed its off-the-book entities, David Duncan clearly had concerns. Discuss what he did about those concerns.

ANSWER:

Students should discuss Duncan‟s e-mail to Andersen standards partner in Chicago that raised questions as well as his discussions with his pastor. Duncan also tried to share the level of risk and Enron‟s exposure with the board – his chart on risk showed that. The students should make clear that Duncan was aware that there was an ethical issue here and that he looked for help, or perhaps reassurance, but could not bring himself to make the correct choice.

POINTS:

1

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DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Analyze DATE CREATED: 9/4/2017 4:44 PM DATE MODIFIED: 9/4/2017 4:45 PM 303. “Per Dave – NO more shredding. We have been officially served for our documents.” – was the e-mail David Duncan‟s secretary sent to Andersen employees. Discuss the ethical standard that was being followed during the shredding.

The employees were in compliance with the law because under the statutes that existed at that ANSWER: time, until the party is actually served with a request for the documents, there is no obstruction of justice in their destruction. However, the case indicates that those at Andersen were aware that there would be an investigation, with or without the documents. The employees may have been in technical compliance with the law, but they were not acting in good faith and were ignoring the spirit of the law. Also, they were not seeing the issue from the perspective of the long term. What were the intentions in their actions? What were the likely consequences of their actions? How would their actions be reported on the front page of the newspaper?

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/4/2017 4:46 PM DATE MODIFIED: 9/4/2017 4:47 PM 304. Richard Scrushy said, “Shine a light on someone – it‟s funny how numbers improve.” How does this Scrushy philosophy compare with those of other CEOs in the cases you have studied?

The students should discuss Q.T. Wiles and how he embarrassed employees at MiniScribe when ANSWER: they failed to meet goals. Also, there are the Bausch & Lomb managers who said they would be foolish to not do whatever it took to make their numbers given the pressure. Kozlowski also used the humiliating award of the worst performer to get results at his company. WorldCom officers scrambled to come up with ways to meet their numbers and Adelphia officers encouraged those in accounting to do whatever it took to meet goals. FINOVA was another culture in which fear of an iconic CEO led employees to poor decisions. Fannie Mae‟s EPS goal was the driver there. In short, they were all cultures focused on numbers because of the emphasis and fear the CEOs inculcated with their catch phrases.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/4/2017 4:48 PM DATE MODIFIED: 9/4/2017 4:49 PM 305. Develop a chart on the tone-at-the-top factors you see in HealthSouth and the other companies.

Appears in IM under Unit Four.

ANSWER: Copyright Cengage Learning. Powered by Cognero.

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POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: The Organizational Behavior Factors The Fear-and-Silence Factors KEYWORDS: Bloom's: Analyze DATE CREATED: 9/4/2017 4:50 PM DATE MODIFIED: 9/4/2017 4:51 PM 306. Discuss the dangers in earnings management.

While earnings management begins with the best intentions of smoothing our earnings so that ANSWER: shareholder value increases, the problem is that what begins as small adjustments can often escalate into more earnings management and eventual falsification with the notion that the amount can be made up later on. What begins as small discretionary calls in an accounting sense can quickly escalate into more and adjustments until the earnings do not reflect the actual performance of the company at all.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: The Organizational Behavior Factors KEYWORDS: Bloom's: Analyze DATE CREATED: 9/4/2017 4:52 PM DATE MODIFIED: 9/4/2017 4:53 PM 307. Make a list of the factors common to the cultures of Enron, WorldCom and Tyco.

Culture of fear (no one said anything and if they did, they were fired or reprimanded), high demand ANSWER: for numbers and earnings, creative accounting, iconic CEO.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: The Industry Practices and Legal Factors The Fear-and-Silence Factors KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/4/2017 4:54 PM DATE MODIFIED: 9/4/2017 4:56 PM 308. “Each time I see Jeff [Greenberg] I feel like I have a bull‟s eye on my forehead,” was the statement of a CEO‟s direct report. Discuss how the culture at MMC was similar to the cultures of HealthSouth, Tyco, MiniScribe, Bausch & Lomb, and others.

Students should discuss the numbers pressure culture – employees all felt they had to meet ANSWER: numbers goals or their jobs were gone. They were told to do whatever it took and did so, thus evolving into accounting fraud, and in MMC‟s case, price-fixing and cartel behavior.

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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TOPICS:

The Structural Factors: Governance, Example, and Leadership The Industry Practices and Legal Factors The Fear-and-Silence Factors KEYWORDS: Bloom's: Analyze DATE CREATED: 9/4/2017 4:56 PM DATE MODIFIED: 9/4/2017 4:58 PM 309. Describe John Rigas, the former CEO of Adelphia.

Mr. Rigas was generous with his community and individuals. He employed many of the citizens of ANSWER: Coudersport and was respected and revered there.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: The Culture of Goodness KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 4:58 PM DATE MODIFIED: 9/4/2017 4:59 PM 310. If you were preparing for an ethical challenge in your business career, explain how you would prepare using the pattern Captain Sollenberger discussed.

Think through all the possibilities – what could happen and how would you handle it. Study the ANSWER: case studies (as you have been) so that you can spot how people behave, react, and miss issues.

Look around the industry and study what has happened in other companies and how your company or organization could avoid them. Offer to help when other companies are determining how an ethical issue occurred so that you can learn from mistakes.

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: The Organizational Behavior Factors KEYWORDS: Bloom's: Create DATE CREATED: 9/4/2017 5:00 PM DATE MODIFIED: 9/12/2017 6:10 PM 311. Compare the New Era and Baptist Foundation cases. What common threads do you see?

Both involved good causes run by people who seemed to be altruistic. The returns in both were ANSWER:

phenomenal – too good to be true. There was hesitancy in both to question them because of their nonprofit nature. There remained an aura of credibility despite continuing questions. Both were Ponzi schemes. Both had signals that trouble was afoot, but the signals were ignored or not pursued.

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: The Culture of Goodness KEYWORDS: Bloom's: Create DATE CREATED: 9/4/2017 5:01 PM DATE MODIFIED: 9/4/2017 5:03 PM Copyright Cengage Learning. Powered by Cognero.

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312. Compare the behaviors of William Aramony with those of Dennis Kozlowski. Are there signals these CEOs send with their behaviors?

ANSWER:

Students should discuss the young women they hired, the extravagance that kept going, and their charismatic personalities that deflected questions. They should also discuss that the signals were there and flags were raised, but no one was willing to follow up on the questions. In Kozlwoski‟s case, there was perhaps some fear. With Aramony, it was difficult for folks to believe that someone involved in nonprofit work would abuse the trust. Also, there was weak board supervision in both cases with the board deferring to their CEOs who had really done what seemed to be good work for the organizations.

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: The Fear-and-Silence Factors The Culture of Goodness KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/4/2017 5:03 PM DATE MODIFIED: 9/4/2017 5:05 PM 313. Explain how Ms. Winters began her habit of taking snack food while working at Walmart.

The critical thing is for students to note that it began gradually – she began by eating Oreos from ANSWER: open bags at the cash register because she assumed that was okay and just kept going from there.

If no open bags were available, she began taking bags from the shelves and opening them.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: The Organizational Behavior Factors KEYWORDS: Bloom's: Analyze DATE CREATED: 9/4/2017 5:06 PM DATE MODIFIED: 9/4/2017 5:07 PM 314. List the cultural factors that you saw in this unit that contributed to the ethical lapses.

Numbers pressures ANSWER: Fear and silence Iconic CEO Incentive and performance measurements based on the numbers pressure Weak boards Feeling of doing good work, something that justifies the fraud Inexperienced manager with an inability to resist a powerful CEO Failure of managers to interact with front-line employees Highly successful achievers – often darlings of stock markets Feeling of innovation and superiority

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Temptation at Work for Individual Gain and That Credo The Culture of Goodness The Fear-and-Silence Factors Copyright Cengage Learning. Powered by Cognero.

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The Industry Practices and Legal Factors The Organizational Behavior Factors The Psychological and Behavior Factors The Structural Factors: Governance, Example, and Leadership KEYWORDS: Bloom's: Analyze DATE CREATED: 9/4/2017 5:09 PM DATE MODIFIED: 9/4/2017 5:11 PM

True / False 1. Taking advantage of a party in a contract situation due to the party‟s inexperience, and not due to any lack of disclosure on your part, is ethical.

a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Contract Negotiations: All Is Fair and Conflicting Interests KEYWORDS: Bloom's: Analyze DATE CREATED: 9/4/2017 5:12 PM DATE MODIFIED: 9/4/2017 5:14 PM 2. Long-term relationships create ethical and legal obligations between the parties through conduct and accommodations. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Promises, Performance, and Reality KEYWORDS: Bloom's: Analyze DATE CREATED: 9/4/2017 5:15 PM DATE MODIFIED: 9/4/2017 5:16 PM 3. The failure to correct a known defect in a product is both an ethical lapse and a basis for a negligence claim. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Promises, Performance, and Reality Copyright Cengage Learning. Powered by Cognero.

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KEYWORDS: Bloom's: Analyze DATE CREATED: 9/4/2017 5:16 PM DATE MODIFIED: 9/4/2017 5:16 PM 4. Although you are not part of your company's engineering group, you have discovered a major flaw in the company's new paper-thin solar calculator. The calculator adds when the subtract button is pressed if there are more than three figures to the right of the decimal point. Since it is not your area, you should do and say nothing.

a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Promises, Performance, and Reality KEYWORDS: Bloom's: Apply DATE CREATED: 9/4/2017 5:17 PM DATE MODIFIED: 9/4/2017 5:18 PM 5. Although you are not part of your company's engineering group, you have discovered a major flaw in the company's new paper-thin solar calculator. The calculator adds when the subtract button is pressed if there are more than three figures to the right of the decimal point. It is not necessary for the company to take any action to correct the problem or refund money for those who already own the new calculator.

a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Promises, Performance, and Reality KEYWORDS: Bloom's: Apply DATE CREATED: 9/4/2017 5:18 PM DATE MODIFIED: 9/4/2017 5:19 PM 6. Intentional breach of a contract carries a legal remedy, but it is also unethical. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Promises, Performance, and Reality KEYWORDS: Bloom's: Apply DATE CREATED: 9/4/2017 5:19 PM DATE MODIFIED: 9/4/2017 5:20 PM Copyright Cengage Learning. Powered by Cognero.

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7. The failure to disclose material information in negotiations is an ethical breach. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Contract Negotiations: All Is Fair and Conflicting Interests KEYWORDS: Bloom's: Apply DATE CREATED: 9/4/2017 5:20 PM DATE MODIFIED: 9/4/2017 5:21 PM 8. The withholding of material information in a contract relationship is an ethical issue as well as misrepresentation. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Contract Negotiations: All Is Fair and Conflicting Interests KEYWORDS: Bloom's: Apply DATE CREATED: 9/4/2017 5:21 PM DATE MODIFIED: 9/4/2017 5:21 PM 9. Telling a customer that he needs repair work done on a vehicle when the vehicle is in fine condition is unethical and misrepresentation.

a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Contract Negotiations: All Is Fair and Conflicting Interests KEYWORDS: Bloom's: Apply DATE CREATED: 9/4/2017 5:22 PM DATE MODIFIED: 9/4/2017 5:22 PM 10. Failure to disclose the dangers of a diet program is an ethical issue. a. True b. False ANSWER: True POINTS: 1 Copyright Cengage Learning. Powered by Cognero.

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DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Contract Negotiations: All Is Fair and Conflicting Interests KEYWORDS: Bloom's: Apply DATE CREATED: 9/4/2017 5:22 PM DATE MODIFIED: 9/4/2017 5:23 PM 11. Nonprofits and their boards need not be concerned with conflicts of interest. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Promises, Performance, and Reality KEYWORDS: Bloom's: Apply DATE CREATED: 9/4/2017 5:23 PM DATE MODIFIED: 9/4/2017 5:24 PM 12. Nonprofits are permitted to use raised funds in any manner they deem acceptable. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Promises, Performance, and Reality KEYWORDS: Bloom's: Apply DATE CREATED: 9/4/2017 5:24 PM DATE MODIFIED: 9/4/2017 5:25 PM 13. Nonprofits have fallen victim to widespread Ponzi schemes. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Promises, Performance, and Reality KEYWORDS: Bloom's: Understand DATE CREATED: 9/4/2017 5:25 PM Copyright Cengage Learning. Powered by Cognero.

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DATE MODIFIED: 9/4/2017 5:26 PM 14. Checking the books and records of an organization is one method for establishing the legitimacy of its claims. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Promises, Performance, and Reality KEYWORDS: Bloom's: Apply DATE CREATED: 9/4/2017 5:27 PM DATE MODIFIED: 9/12/2017 6:12 PM 15. The Red Cross disclosed that 9-11-01 funds would be used for administrative purposes. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Promises, Performance, and Reality KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 5:27 PM DATE MODIFIED: 9/4/2017 5:28 PM 16. The Red Cross CEO resigned in protest over the use of Red Cross funds. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Promises, Performance, and Reality KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 5:28 PM DATE MODIFIED: 9/4/2017 5:29 PM 17. The former governor of Virginia and his wife were both convicted of bribery. a. True b. False ANSWER: False POINTS: 1 Copyright Cengage Learning. Powered by Cognero.

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DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Contract Negotiations: All Is Fair and Conflicting Interests KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 5:29 PM DATE MODIFIED: 9/4/2017 5:30 PM 18. The amount advertisers pay for online ads is based on data on user hits provided by sites. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Contract Negotiations: All Is Fair and Conflicting Interests KEYWORDS: Bloom's: Understand DATE CREATED: 9/4/2017 5:30 PM DATE MODIFIED: 9/4/2017 5:31 PM 19. Part of Subway‟s defense on its 11-inch vs. 12-inch sub length is that bread rises differently. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Contract Negotiations: All Is Fair and Conflicting Interests KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 5:32 PM DATE MODIFIED: 9/4/2017 5:32 PM 20. Sears compensation system was tied to the number of repairs per mechanic. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Contract Negotiations: All Is Fair and Conflicting Interests KEYWORDS: Bloom's: Understand DATE CREATED: 9/4/2017 5:33 PM Copyright Cengage Learning. Powered by Cognero.

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DATE MODIFIED: 9/4/2017 5:34 PM 21. The FDA cannot control the content of celebrity Tweets on prescription drugs. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Contract Negotiations: All Is Fair and Conflicting Interests KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 5:34 PM DATE MODIFIED: 9/4/2017 5:34 PM 22. One of the causes of underfunding of pensions were experts‟ assumptions about rates of return. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Promises, Performance, and Reality KEYWORDS: Bloom's: Understand DATE CREATED: 9/4/2017 5:35 PM DATE MODIFIED: 9/4/2017 5:35 PM 23. Return policies affect the compensation of sales people in department stores. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Promises, Performance, and Reality KEYWORDS: Bloom's: Understand DATE CREATED: 9/4/2017 5:36 PM DATE MODIFIED: 9/4/2017 5:36 PM 24. Pfizer was able to complete its research park in New London, Connecticut. a. True b. False ANSWER: False POINTS: 1 Copyright Cengage Learning. Powered by Cognero.

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DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Promises, Performance, and Reality KEYWORDS: Bloom's: Understand DATE CREATED: 9/4/2017 5:36 PM DATE MODIFIED: 9/4/2017 5:37 PM 25. Katy Perry has the support of the archdiocese in her purchase of the convent. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Promises, Performance, and Reality KEYWORDS: Bloom's: Understand DATE CREATED: 9/4/2017 5:37 PM DATE MODIFIED: 9/4/2017 5:37 PM 26. A company can be relieved of its pension obligations in bankruptcy. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Promises, Performance, and Reality KEYWORDS: Bloom's: Understand DATE CREATED: 9/4/2017 5:37 PM DATE MODIFIED: 9/4/2017 5:38 PM 27. Pension accounting for ERISA differed from pension accounting for the SEC. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Promises, Performance, and Reality KEYWORDS: Bloom's: Understand DATE CREATED: 9/4/2017 5:38 PM Copyright Cengage Learning. Powered by Cognero.

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DATE MODIFIED: 9/4/2017 5:39 PM 28. The Pension Protection Act of 2006 does not apply to all employers with pension plans. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Promises, Performance, and Reality KEYWORDS: Bloom's: Understand DATE CREATED: 9/4/2017 5:39 PM DATE MODIFIED: 9/4/2017 5:39 PM Multiple Choice 29. What error did Intel discover in its Pentium chip in July 1994? a. That the chip was contaminated b. That there was a floating point error that caused errors in division calculations c. That the chip could cause computer viruses d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Promises, Performance, and Reality KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 5:40 PM DATE MODIFIED: 9/4/2017 5:41 PM 30. How much money had Intel spent developing the Pentium chip? a. $150 million b. $500 million c. $600 million d. $1 billion ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Promises, Performance, and Reality KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 5:42 PM DATE MODIFIED: 9/4/2017 5:43 PM Copyright Cengage Learning. Powered by Cognero.

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31. What did Intel discover when it ran tests on the Pentium chip? a. That it would make an error once every 27,000 years b. That the chance of an error was one in 9 billion c. That the floating point error problem was not one that required attention d. a and b only e. a, b and c ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Promises, Performance, and Reality KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 5:43 PM DATE MODIFIED: 9/4/2017 5:45 PM 32. Who made the Intel error problem public? a. Intel b. A mathematician professor c. IBM d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Promises, Performance, and Reality KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 5:46 PM DATE MODIFIED: 9/4/2017 5:47 PM 33. What was Intel‟s original proposal on the flawed chips? a. To replace them without questions b. To replace them only for computer users who had to do calculations c. To replace them only for a fee d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Promises, Performance, and Reality KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 5:47 PM Copyright Cengage Learning. Powered by Cognero.

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DATE MODIFIED: 9/4/2017 5:48 PM 34. What company changed Intel‟s reaction to the flawed chips? a. Dell b. Microsoft c. IBM d. Apple ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Promises, Performance, and Reality KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 5:48 PM DATE MODIFIED: 9/4/2017 5:50 PM 35. What was the total cost if Intel replaced all chips? a. $100 million b. $200 million c. $260 million d. $320 million ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Promises, Performance, and Reality KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 5:50 PM DATE MODIFIED: 9/4/2017 5:51 PM 36. Intel‟s biggest obstacle in its Pentium chip flaw was: a. The cost of replacement. b. Admitting that there was a problem and acknowledging it to the public. c. The hit to earnings if the sales were not made. d. Both a and c e. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Promises, Performance, and Reality KEYWORDS: Bloom's: Remember Copyright Cengage Learning. Powered by Cognero.

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DATE CREATED: 9/4/2017 5:51 PM DATE MODIFIED: 9/4/2017 5:53 PM 37. Facebook advertising fees were determined based on: a. The average viewing time for videos. b. The number of Facebook subscribers. c. The number of hits per ad. d. None of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Contract Negotiations: All Is Fair and Conflicting Interests KEYWORDS: Bloom's: Understand DATE CREATED: 9/4/2017 5:53 PM DATE MODIFIED: 9/4/2017 5:56 PM 38. Facebook modified its advertising fees to base it on: a. The average viewing time for all videos. b. The average number of viewers per ad. c. The average number of Facebook subscribers for the past quarter. d. None of the above ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Contract Negotiations: All Is Fair and Conflicting Interests KEYWORDS: Bloom's: Understand DATE CREATED: 9/4/2017 5:56 PM DATE MODIFIED: 9/4/2017 5:57 PM 39. The typical number of loan renewals for subprime auto borrowers is: a. Six. b. Seven. c. Eight. d. Nine.

ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Contract Negotiations: All Is Fair and Conflicting Interests KEYWORDS: Bloom's: Remember Copyright Cengage Learning. Powered by Cognero.

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DATE CREATED: 9/4/2017 5:58 PM DATE MODIFIED: 9/4/2017 6:00 PM 40. What is the correct rate of auto repossession on subprime auto loans? a. One in five b. One in six c. One in seven d. One in nine ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Contract Negotiations: All Is Fair and Conflicting Interests KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 6:00 PM DATE MODIFIED: 9/4/2017 6:01 PM 41. Which of the following was not a gift given by Jonnie Williams to the McDonnell? a. Rolex watch b. Use of his vacation home c. Payments for the McDonnells‟ daughter‟s wedding reception d. All of the above were gifts given by Williams to the McDonnells ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Contract Negotiations: All Is Fair and Conflicting Interests KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 6:02 PM DATE MODIFIED: 9/12/2017 6:13 PM 42. What was the basis for suits against Subway for their 12-inch claims about sandwiches that were only 11 inches long? a. Fraud b. Deceptive advertising c. Consumer fraud d. There is no basis for litigation ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Contract Negotiations: All Is Fair and Conflicting Interests KEYWORDS: Bloom's: Understand Copyright Cengage Learning. Powered by Cognero.

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DATE CREATED: 9/4/2017 6:03 PM DATE MODIFIED: 9/4/2017 6:05 PM 43. What is a condition to most pay-day loans? a. That the borrower pay 75% interest b. That the borrower agree to some type of collateral c. That the borrower agree to give the lender access to the borrower‟s checking account d. That the borrower waive the right to litigation ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Contract Negotiations: All Is Fair and Conflicting Interests KEYWORDS: Bloom's: Understand DATE CREATED: 9/4/2017 6:05 PM DATE MODIFIED: 9/4/2017 6:06 PM 44. What is Chase‟s policy on pay-day loans? a. Chase makes the loans after full disclosure b. Chase is re-examining allowing pay-day lenders access to customers‟ checking accounts c. Chase is the number one pay-day lender in the United States d. Chase refuses to make withdrawals for pay-day lenders ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Contract Negotiations: All Is Fair and Conflicting Interests KEYWORDS: Bloom's: Understand DATE CREATED: 9/4/2017 6:07 PM DATE MODIFIED: 9/4/2017 6:08 PM 45. What was a reason for the city of Detroit‟s bankruptcy? a. The disparity between the amount due in pension payments and the amount in the fund and coming in b. Payments for gun-related crimes c. The GM pension plan d. All of the above ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Promises, Performance, and Reality KEYWORDS: Bloom's: Understand Copyright Cengage Learning. Powered by Cognero.

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DATE CREATED: 9/4/2017 6:09 PM DATE MODIFIED: 9/4/2017 6:11 PM 46. Who provides the data for investment requirements for pension funds? a. Investment advisers b. Actuaries c. The federal government d. ERISA ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Promises, Performance, and Reality KEYWORDS: Bloom's: Understand DATE CREATED: 9/4/2017 6:11 PM DATE MODIFIED: 9/4/2017 6:12 PM 47. What relationships are now being regulated as a result of underfunded pension plans? a. Auditors of the funds and their clients b. Union officials and auditors of pension funds c. Actuaries of funds and the pension plan sponsors d. All of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Promises, Performance, and Reality KEYWORDS: Bloom's: Understand DATE CREATED: 9/4/2017 6:12 PM DATE MODIFIED: 9/4/2017 6:14 PM 48. What conflict of interest arises with pension actuaries? a. They are compensated by the government regulatory agency for pensions b. Employers often signal their concerns about a finding of pension underfunding c. They are usually working directly with the auditors d. They also work for the Pension Benefit Guarantee Corporation ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Promises, Performance, and Reality KEYWORDS: Bloom's: Apply Copyright Cengage Learning. Powered by Cognero.

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DATE CREATED: 9/4/2017 6:15 PM DATE MODIFIED: 9/4/2017 6:17 PM 49. Which of the following have received tax incentives for locating plants or companies in certain states? a. Nike b. Susette Kelo c. John Cougar Mellencamp d. All of the above ANSWER: a POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Promises, Performance, and Reality KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 6:18 PM DATE MODIFIED: 9/4/2017 6:20 PM 50. Which of the following have removed plants, companies, or offices from states or local areas after having received benefits for locating there? a. Pfizer

b. GM c. Nike d. Oliver Stone ANSWER: b POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Promises, Performance, and Reality KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 6:20 PM DATE MODIFIED: 9/4/2017 6:21 PM 51. In the Kelo case, what happened after the court ruled against the homeowners? a. Their houses were torn down and Pfizer built its facilities b. The city changed its plans and the houses were not torn down c. The houses were torn down, but the site remains undeveloped d. The homeowners appealed again and won the right to keep their homes ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Promises, Performance, and Reality KEYWORDS: Bloom's: Evaluate Copyright Cengage Learning. Powered by Cognero.

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DATE CREATED: 9/4/2017 6:22 PM DATE MODIFIED: 9/4/2017 6:25 PM 52. What happened to Donald Kennedy, the president of Stanford University, after the audit of the school's overhead research costs? a. He was made a U.S. Ambassador

b. He was charged criminally c. He resigned as president of Stanford d. He successfully challenged the government's position ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Promises, Performance, and Reality KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 6:25 PM DATE MODIFIED: 9/4/2017 6:28 PM 53. What percentage of auto loan borrowers have a credit score above 780? a. 67% b. 51% c. 40% d. 22% ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Contract Negotiations: All Is Fair and Conflicting Interests KEYWORDS: Bloom's: Remember DATE CREATED: 9/4/2017 6:28 PM DATE MODIFIED: 9/4/2017 6:30 PM 54. What is the interest rate range for subprime auto loans? a. 17-24% b. 20-30% c. 50-75% d. 80-500% ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Contract Negotiations: All Is Fair and Conflicting Interests KEYWORDS: Bloom's: Remember Copyright Cengage Learning. Powered by Cognero.

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DATE CREATED: 9/4/2017 6:31 PM DATE MODIFIED: 9/4/2017 6:32 PM 55. What did Mrs. McDonnell do for Jonnie Williams in exchange for his gifts? a. She made sure that the state of Virginia purchased his products b. She invited him to dinner at the governor‟s mansion c. She gave a speech in support of Mr. Williams‟ products d. She eventually paid him back for the gifts ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Contract Negotiations: All Is Fair and Conflicting Interests KEYWORDS: Bloom's: Understand DATE CREATED: 9/4/2017 6:33 PM DATE MODIFIED: 9/4/2017 6:34 PM 56. What did then-Governor McDonnell do for Jonnie Williams in exchange for his gifts? a. He introduced Mr. Williams to Virginia‟s secretary of health and human services b. He, along with Mrs. McDonnell, repaid Mr. Williams for the gifts c. He gave a speech endorsing Mr. Williams‟ products d. He purchased stock in Mr. Williams‟ company ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Contract Negotiations: All Is Fair and Conflicting Interests KEYWORDS: Bloom's: Understand DATE CREATED: 9/4/2017 6:34 PM DATE MODIFIED: 9/4/2017 6:36 PM 57. Which of the following is an FDA requirement for celebrity tweets? a. Celebrity tweets about prescription drugs are prohibited by the FDA b. Preapproval by the FDA of all celebrity tweets about prescription drugs c. Celebrity drug testing prior to their posting tweets about prescription drugs d. None of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Contract Negotiations: All Is Fair and Conflicting Interests KEYWORDS: Bloom's: Understand Copyright Cengage Learning. Powered by Cognero.

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DATE CREATED: 9/4/2017 6:36 PM DATE MODIFIED: 9/4/2017 6:38 PM 58. What did experts find about the two-page agreement between Mark Zuckerberg and Paul Ceglia? a. That although it was informal, it was a valid contract b. That Ceglia owned one-half of Facebook c. That the document had been physically altered and aged d. Both b and c ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Contract Negotiations: All Is Fair and Conflicting Interests KEYWORDS: Bloom's: Understand DATE CREATED: 9/4/2017 7:01 PM DATE MODIFIED: 9/4/2017 7:04 PM 59. What happens under a car title loan? a. A default results in the debtor‟s loss of ownership in the car b. That no interest is paid until the default c. That as long as the creditor holds the title, the debtor has time to pay without the creditor being able to sell the car d. None of the above

ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Contract Negotiations: All Is Fair and Conflicting Interests KEYWORDS: Bloom's: Understand DATE CREATED: 9/4/2017 7:04 PM DATE MODIFIED: 9/4/2017 7:06 PM 60. What other ethical issues arose at Sears in addition to the auto repair shop problems? a. Improper collection of debts from debtors in or discharged in bankruptcy b. Sears hired employees away from competitors c. Both a and b d. None of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Contract Negotiations: All Is Fair and Conflicting Interests KEYWORDS: Bloom's: Understand Copyright Cengage Learning. Powered by Cognero.

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DATE CREATED: 9/4/2017 7:06 PM DATE MODIFIED: 9/4/2017 7:08 PM 61. Why did Stanford withdraw the submitted expenses? a. Because it felt it needed to do more than what was lawful b. Because of acute public attention c. Donald Kennedy was troubled by the costs d. All of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Promises, Performance, and Reality KEYWORDS: Bloom's: Understand DATE CREATED: 9/4/2017 7:08 PM DATE MODIFIED: 9/4/2017 7:10 PM 62. Which parties claimed to be the owner of the convent in the Katy Perry case? a. A small group of surviving nuns b. The diocese c. Developer Dana Holister d. All of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Promises, Performance, and Reality KEYWORDS: Bloom's: Understand DATE CREATED: 9/4/2017 7:10 PM DATE MODIFIED: 9/4/2017 7:11 PM Essay 63. What advice would you offer to elected officials on the acceptance of gifts based on what you studied in the McDonnells‟ case in Virginia?

Even though the McDonnells‟ conviction was reversed, the two endured a criminal trial and the ANSWER: personal and financial costs of that trial and the public airing of their personal problems. Once a business person has entered your personal sphere, elected officials must take care about the following:

  

The appearance of impropriety that the gifts cause.

That fine line between simple introductions to government officials and influencing outcome. It is difficult to say that government officials are not influenced when the governor introduces as a friend a business person with an expectation of some governmental action.

Those who are giving gifts do not always understand the limitations elected officials may have and the expectations may be higher than the officials realize.

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

Consider limits on amounts and numbers of gifts.

Get your personal financial house in order before running for public office because the financial demands of office can be great and cause the acceptance of gifts that may be excessive.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Contract Negotiations: All Is Fair and Conflicting Interests KEYWORDS: Bloom's: Analyze DATE CREATED: 9/4/2017 6:39 PM DATE MODIFIED: 9/12/2017 6:15 PM 64. Explain what a good disclosure statement would look like if online sites were providing information about user access of their sites to those who seek to advertise.

There is a difference between metrics on views of certain lengths. Disclose the types of videos ANSWER: measured in your metrics: Is it any type of view, regardless of how short the viewing time? Or is it a certain minimum viewing time? Minimum viewing time metrics that exclude user non-views may cause the site to charge higher advertising fees.

Disclose how often the metrics are computed. Give information on what results in changes in the metrics. Disclose any changes in computational formulas.

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Contract Negotiations: All Is Fair and Conflicting Interests KEYWORDS: Bloom's: Create DATE CREATED: 9/4/2017 6:42 PM DATE MODIFIED: 9/4/2017 6:44 PM 65. List the FDA requirements for celebrity tweets for pharmaceutical companies.

ANSWER:  The celebrity must have actually used the product.  The celebrity must disclose their relationship with the company.  The celebrity cannot overstate the product‟s quality or performance.  There is some indication that the celebrity must also disclose any side effects in addition to touting the positive aspects of the drug.

If the celebrity tweet is sua sponte and the celebrity has no financial or other relationship with the company, then the FDA guidelines do not apply.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Contract Negotiations: All Is Fair and Conflicting Interests KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/4/2017 6:44 PM DATE MODIFIED: 9/4/2017 6:47 PM Copyright Cengage Learning. Powered by Cognero.

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66. Discuss the problems that led to underfunded pensions.

There is the issue of conflicts. Employers pay the actuaries and may make it clear that they don‟t ANSWER: want to have to pay into the pension plan because it is a hit to earnings. Employees, when they pay, make it clear that they want funding to be more than adequate. Those demands and perspectives can result in assumptions that are overly rosy on rates of return and amount of funding. In addition, companies were not required to make the same types of disclosures on their public SEC reporting as they were for regulators. There was a disparity between reality of the necessary funds and what was being disclosed. Pension management and the parties involved were fraught with conflicts.

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Promises, Performance, and Reality KEYWORDS: Bloom's: Analyze DATE CREATED: 9/4/2017 6:47 PM DATE MODIFIED: 9/4/2017 6:49 PM 67. Explain the impact of “no-cost – few restrictions returns” policies. Be sure to discuss the stakeholders affected.

The stakeholders are the stores, the store employees, and other businesses in the retail industry.

ANSWER: The seemingly limitless inability to return goods means that employees on commission are affected in terms of the ability to budget and know their incomes. The stores are often stuck with used merchandise, which drives costs up. Retailers who control returns lose business and customers and the number of retailers available shrinks, as does competition. The ease of returns can encourage dishonesty among consumers as they dream up excuses and return goods they only need for one occasion.

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Promises, Performance, and Reality KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/4/2017 6:49 PM DATE MODIFIED: 9/12/2017 6:16 PM 68. Discuss why Stanford‟s public statements about its submission of overhead costs for federal reimbursement changed over the course of several months.

Stanford saw the issue as a technical one with the average taxpayer not understanding the ANSWER: intricacies of overhead accounting. They felt, and were, in technical compliance with government rules, but failed to see the perception of taxpayers about their submissions for reimbursement.

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Promises, Performance, and Reality KEYWORDS: Bloom's: Analyze DATE CREATED: 9/4/2017 6:51 PM DATE MODIFIED: 9/4/2017 6:52 PM 69. Explain the stakeholders, risks, and benefits when government entities take private property to be used by private Copyright Cengage Learning. Powered by Cognero.

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companies as part of an economic development plan.

The goal in these public/private partnerships is economic development that is intended to increase ANSWER: the number of jobs, the tax base, and opportunities for further growth. Taxpayers, citizens, property owners, existing businesses are all stakeholders in these plans. However, there is really not a binding agreement on the companies involved and they often take the benefits and then do not follow through on their commitment to build, operate, or expand. The result is that the government is left with the property and no development. Those who had their property taken see no benefits from the deal and no longer own their property (as with the Pfizer case). There are good intentions in the deals, and good perks for companies, but no guarantees that the projects will be completed.

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Promises, Performance, and Reality KEYWORDS: Bloom's: Analyze DATE CREATED: 9/4/2017 6:53 PM DATE MODIFIED: 9/12/2017 6:16 PM 70. Based on the Intel case, develop guidelines for companies that discover defects in their products.

ANSWER:   

If you have a defect, say so. Make a public disclosure.

If you don‟t know the extent of the defect, say so, and promise to keep providing information as you discover it.

Prepare and make a reasonable offer to make customers who have a defective product whole.

Consider the damage to brand and reputation as well as the costs of replacements and repair.

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Promises, Performance, and Reality KEYWORDS: Bloom's: Create DATE CREATED: 9/4/2017 6:55 PM DATE MODIFIED: 9/4/2017 6:57 PM 71. Based on Katy Perry‟s experience in trying to purchase the convent, offer some advice.

ANSWER:

    

Make sure you know who actually owns the property.

Get everything in writing.

If there are other parties on the property, clarify what they are doing there.

Make sure all the parties with ownership rights have signed the necessary documents.

Clarify claims of ownership before contracting.

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Promises, Performance, and Reality KEYWORDS: Bloom's: Create Copyright Cengage Learning. Powered by Cognero.

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DATE CREATED: 9/4/2017 6:57 PM DATE MODIFIED: 9/12/2017 6:17 PM 72. Discuss the ethics of the pension accounting processes companies used prior to the Pension Protection Act of 2006.

The students should discuss that if the companies had adequately funded the plans according to ANSWER: their requirements, according to what they were permitted to do under the law, there would have been two effects: (1) the pension plans would have been adequately funded; (2) their earnings would have been reported as something far less because they would have had to make greater contributions. In short, there was an incentive to comply with the law‟s technical funding requirements, not the actuarial tables, because funding for the real costs was costly in terms of results reported and cash available. Technical compliance with the law is not always ethical because they did not consider the effect on the stakeholders, the employee plan holders, who were counting on a promise that they did not know was not funded. There was at least a false impression given.

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Promises, Performance, and Reality KEYWORDS: Bloom's: Analyze DATE CREATED: 9/4/2017 6:59 PM DATE MODIFIED: 9/4/2017 7:00 PM

True / False 1. A living wage is not necessarily a part of human rights issues in labor practices. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Conflicts Between the Corporation's Ethics and Business Practices in Foreign Countries KEYWORDS: Bloom's: Understand DATE CREATED: 9/5/2017 6:26 PM DATE MODIFIED: 9/5/2017 6:30 PM 2. The penalties imposed for FCPA violations have been increasing. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Bribes, Grease Payments, and "When in Rome..."

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KEYWORDS: Bloom's: Understand DATE CREATED: 9/5/2017 6:31 PM DATE MODIFIED: 9/5/2017 6:32 PM 3. Freedom from physical abuse is a basic fair employment practice. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Conflicts Between the Corporation's Ethics and Business Practices in Foreign Countries KEYWORDS: Bloom's: Understand DATE CREATED: 9/5/2017 6:33 PM DATE MODIFIED: 9/5/2017 6:33 PM 4. Equal treatment and opportunity is generally a part of labor policies and principles. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Conflicts Between the Corporation's Ethics and Business Practices in Foreign Countries KEYWORDS: Bloom's: Understand DATE CREATED: 9/5/2017 6:33 PM DATE MODIFIED: 9/12/2017 6:19 PM 5. Sweatshops are not an issue of human rights. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Conflicts Between the Corporation's Ethics and Business Practices in Foreign Countries KEYWORDS: Bloom's: Understand DATE CREATED: 9/5/2017 6:34 PM DATE MODIFIED: 9/5/2017 6:36 PM 6. Sweatshops are ethical so long as they are in compliance with the laws of the country in which they are located. a. True b. False Copyright Cengage Learning. Powered by Cognero.

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ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Conflicts Between the Corporation's Ethics and Business Practices in Foreign Countries KEYWORDS: Bloom's: Understand DATE CREATED: 9/5/2017 6:36 PM DATE MODIFIED: 9/12/2017 6:19 PM 7. There are not ethical issues in the use of child labor if the children‟s families approve of their jobs. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Conflicts Between the Corporation's Ethics and Business Practices in Foreign Countries KEYWORDS: Bloom's: Understand DATE CREATED: 9/6/2017 1:51 PM DATE MODIFIED: 9/12/2017 6:20 PM 8. Most companies do not have international labor and human rights policies. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Conflicts Between the Corporation's Ethics and Business Practices in Foreign Countries KEYWORDS: Bloom's: Understand DATE CREATED: 9/6/2017 1:52 PM DATE MODIFIED: 9/12/2017 6:20 PM 9. Chiquita stopped its mercenary payments in Colombia immediately after officials met with the Justice Department. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Conflicts Between the Corporation's Ethics and Business Practices in Foreign Countries Copyright Cengage Learning. Powered by Cognero.

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KEYWORDS: Bloom's: Remember DATE CREATED: 9/6/2017 1:53 PM DATE MODIFIED: 9/6/2017 1:54 PM 10. No officers at Chiquita can be held criminally responsible for the Chiquita payments to mercenary groups. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Conflicts Between the Corporation's Ethics and Business Practices in Foreign Countries KEYWORDS: Bloom's: Remember DATE CREATED: 9/6/2017 1:54 PM DATE MODIFIED: 9/6/2017 1:54 PM 11. FIFA was a money-laundering case. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Bribes, Grease Payments, and "When in Rome..."

KEYWORDS: Bloom's: Understand DATE CREATED: 9/6/2017 1:55 PM DATE MODIFIED: 9/6/2017 1:56 PM 12. FIFA officials were not subject to U.S. laws and prosecution. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Bribes, Grease Payments, and "When in Rome..."

KEYWORDS: Bloom's: Understand DATE CREATED: 9/6/2017 1:56 PM DATE MODIFIED: 9/12/2017 6:21 PM 13. Product dumping does not present ethical problems in those countries without product liability recovery systems. a. True b. False Copyright Cengage Learning. Powered by Cognero.

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ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Conflicts Between the Corporation's Ethics and Business Practices in Foreign Countries KEYWORDS: Bloom's: Understand DATE CREATED: 9/6/2017 1:57 PM DATE MODIFIED: 9/6/2017 1:57 PM 14. FIFA‟s ethical and legal issues involved television rights and the award of the World Cup. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Bribes, Grease Payments, and "When in Rome..."

KEYWORDS: Bloom's: Remember DATE CREATED: 9/6/2017 1:58 PM DATE MODIFIED: 9/6/2017 1:59 PM 15. “Grease” or “facilitation payments,” which are legal under the Foreign Corrupt Practices Act can be considered ethical. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Bribes, Grease Payments, and "When in Rome..."

KEYWORDS: Bloom's: Understand DATE CREATED: 9/6/2017 1:59 PM DATE MODIFIED: 9/6/2017 1:59 PM 16. If I worked in purchasing in my company, it would be unethical for me to accept season tickets for my city's NBA team from the company that has supplied catering for the company's training sessions.

a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Bribes, Grease Payments, and "When in Rome..."

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KEYWORDS: Bloom's: Apply DATE CREATED: 9/6/2017 2:00 PM DATE MODIFIED: 9/6/2017 2:01 PM 17. Selling products banned from sale in the United States in other countries is not an ethical violation. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Conflicts Between the Corporation's Ethics and Business Practices in Foreign Countries KEYWORDS: Bloom's: Understand DATE CREATED: 9/6/2017 2:01 PM DATE MODIFIED: 9/6/2017 2:01 PM 18. Ethical codes for companies cannot apply internationally. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Conflicts Between the Corporation's Ethics and Business Practices in Foreign Countries KEYWORDS: Bloom's: Understand DATE CREATED: 9/6/2017 2:02 PM DATE MODIFIED: 9/6/2017 2:03 PM 19. Bribes to government officials are only unethical if the culture of a country does not believe they are unethical. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Bribes, Grease Payments, and "When in Rome..."

KEYWORDS: Bloom's: Understand DATE CREATED: 9/6/2017 2:03 PM DATE MODIFIED: 9/6/2017 2:04 PM 20. Dumping a product that has been outlawed in the U.S. in other countries is legal. a. True b. False Copyright Cengage Learning. Powered by Cognero.

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ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Conflicts Between the Corporation's Ethics and Business Practices in Foreign Countries KEYWORDS: Bloom's: Understand DATE CREATED: 9/6/2017 2:04 PM DATE MODIFIED: 9/12/2017 6:22 PM 21. Dumping a product that has been outlawed in the U.S. in other countries is ethical. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Conflicts Between the Corporation's Ethics and Business Practices in Foreign Countries KEYWORDS: Bloom's: Understand DATE CREATED: 9/6/2017 2:05 PM DATE MODIFIED: 9/12/2017 6:23 PM 22. Guanxi is an example of a facilitation payment. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Bribes, Grease Payments, and "When in Rome..."

KEYWORDS: Bloom's: Understand DATE CREATED: 9/6/2017 2:06 PM DATE MODIFIED: 9/6/2017 2:07 PM 23. Facilitation and grease payments are two different things. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Bribes, Grease Payments, and "When in Rome..."

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KEYWORDS: Bloom's: Understand DATE CREATED: 9/6/2017 2:07 PM DATE MODIFIED: 9/6/2017 2:08 PM 24. Bribery of foreign officials is prohibited by U.S. companies. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Bribes, Grease Payments, and "When in Rome..."

KEYWORDS: Bloom's: Understand DATE CREATED: 9/6/2017 2:08 PM DATE MODIFIED: 9/6/2017 2:09 PM 25. The Foreign Corrupt Practices Act does not apply to U.S. companies when they have operations outside the United States.

a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Bribes, Grease Payments, and "When in Rome..."

KEYWORDS: Bloom's: Understand DATE CREATED: 9/6/2017 2:09 PM DATE MODIFIED: 9/12/2017 6:24 PM 26. Nike is not named in the FIFA indictment. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Bribes, Grease Payments, and "When in Rome..."

KEYWORDS: Bloom's: Remember DATE CREATED: 9/6/2017 2:10 PM DATE MODIFIED: 9/6/2017 2:10 PM 27. Walmart self-reported its issues with payments in Mexico. a. True Copyright Cengage Learning. Powered by Cognero.

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b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Bribes, Grease Payments, and "When in Rome..."

KEYWORDS: Bloom's: Remember DATE CREATED: 9/6/2017 4:56 PM DATE MODIFIED: 9/6/2017 4:57 PM 28. Walmart executives had no prior knowledge of FCPA issues in Mexico. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Bribes, Grease Payments, and "When in Rome..."

KEYWORDS: Bloom's: Understand DATE CREATED: 9/6/2017 4:58 PM DATE MODIFIED: 9/6/2017 4:58 PM 29. Italy's freeway system has not been completed despite billions in funding. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Bribes, Grease Payments, and "When in Rome..."

KEYWORDS: Bloom's: Understand DATE CREATED: 9/6/2017 4:59 PM DATE MODIFIED: 9/6/2017 4:59 PM 30. Bribery is a cultural issue and generally not regulated by law. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

Bribes, Grease Payments, and "When in Rome..."

Bloom's: Understand 9/6/2017 4:59 PM 9/6/2017 5:00 PM

31. Circumventing rules in order to get products imported is not covered under the FCPA. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Bribes, Grease Payments, and "When in Rome..."

KEYWORDS: Bloom's: Understand DATE CREATED: 9/6/2017 5:00 PM DATE MODIFIED: 9/6/2017 5:01 PM 32. Extension of drilling contracts is covered under the FCPA. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Bribes, Grease Payments, and "When in Rome..."

KEYWORDS: Bloom's: Understand DATE CREATED: 9/6/2017 5:01 PM DATE MODIFIED: 9/6/2017 5:02 PM 33. Gaining access to non-public bid information is not covered under the FCPA. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Bribes, Grease Payments, and "When in Rome..."

KEYWORDS: Bloom's: Understand DATE CREATED: 9/6/2017 5:03 PM DATE MODIFIED: 9/6/2017 5:03 PM 34. Only one Siemens employee was involved in paying bribes. a. True Copyright Cengage Learning. Powered by Cognero.

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b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Bribes, Grease Payments, and "When in Rome..."

KEYWORDS: Bloom's: Remember DATE CREATED: 9/6/2017 5:04 PM DATE MODIFIED: 9/6/2017 5:05 PM 35. Walmart used gestores in Mexico. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Bribes, Grease Payments, and "When in Rome..."

KEYWORDS: Bloom's: Remember DATE CREATED: 9/6/2017 5:09 PM DATE MODIFIED: 9/6/2017 5:10 PM 36. GlaxoSmithKline paid bribes directly to government officials. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Bribes, Grease Payments, and "When in Rome..."

KEYWORDS: Bloom's: Understand DATE CREATED: 9/6/2017 5:10 PM DATE MODIFIED: 9/6/2017 5:11 PM 37. GlaxoSmithKline had no managers involved in the criminal charges brought against the company for its Chinese operations. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

Bribes, Grease Payments, and "When in Rome..."

Bloom's: Understand 9/6/2017 5:11 PM 9/6/2017 5:11 PM

Multiple Choice 38. Which of the following is not one of the components of the four-legged stool of interrelationships in economic systems? a. Government

b. Customers c. Business d. Stakeholders ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Conflicts Between the Corporation's Ethics and Business Practices in Foreign Countries KEYWORDS: Bloom's: Understand DATE CREATED: 9/6/2017 5:12 PM DATE MODIFIED: 9/6/2017 5:15 PM 39. Why is Transparency International‟s Corruption Perception Index important for economic systems? a. Because it shows economic systems function perfectly well without any attention to ethical issues. b. Because it shows that bribery and corruption are a necessary part of economic growth. c. Because it shows that economic growth increases at the same pace as political corruption. d. Because it shows that economic growth requires a level playing system for all risk-takers.

ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Conflicts Between the Corporation's Ethics and Business Practices in Foreign Countries KEYWORDS: Bloom's: Understand DATE CREATED: 9/6/2017 5:16 PM DATE MODIFIED: 9/6/2017 5:17 PM 40. On April 1, 2008, about 20,000 workers in Vietnamese factories that make Nike shoes walked off the job. The workers at the plants (managed by a Taiwanese company) were demanding higher wages. At the time of the strike, the Nike workers were being paid 14% above the minimum wage for Vietnam. However, consumer prices in Vietnam have risen 19% in one year. The inflation rate has been the impetus for a number of labor strikes over the past year. By April 2, 2008, the strike was settled. The workers were given a 10 percent raise to their $5 hourly wage. If Nike‟s wages that it was paying were legal, why did it settle the strike by agreeing to pay more? a. Nike had an ethical dilemma that fit into the category of organizational abuse.

b. Nike was considering its stakeholders in resolving ethical dilemmas. c. Nike was exercising social responsibility.

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d. All of the above are correct.

ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Conflicts Between the Corporation's Ethics and Business Practices in Foreign Countries KEYWORDS: Bloom's: Analyze DATE CREATED: 9/6/2017 5:20 PM DATE MODIFIED: 9/6/2017 5:22 PM 41. Ikea‟s solution to obtain electrical power for the grand opening of its flagship store in Russia was: a. To pay the bribes demanded by the government officials running the electric company because it was a facilitation payment.

b. To lease generators. c. To shut down its operations in Russia. d. To use an agent to pay the officials so that it was not violating the law.

ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Conflicts Between the Corporation's Ethics and Business Practices in Foreign Countries KEYWORDS: Bloom's: Understand DATE CREATED: 9/6/2017 5:22 PM DATE MODIFIED: 9/6/2017 5:23 PM 42. AES‟s solution to the increasing demands of the Kazakh government was: a. To lease generators. b. To make facilitation payments to government officials. c. To offer political donations instead of bribes. d. To shut down its operations there.

ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Conflicts Between the Corporation's Ethics and Business Practices in Foreign Countries KEYWORDS: Bloom's: Understand DATE CREATED: 9/6/2017 5:24 PM DATE MODIFIED: 9/6/2017 5:25 PM 43. How did Siemens accomplish its long history of paying bribes to government officials in exchange for obtaining contracts from those governments? a. It used business consulting arrangements in all of the countries.

b. Siemens was not involved in any bribery activities but it was found to have been involved in useful Copyright Cengage Learning. Powered by Cognero.

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expenditures. c. Siemens is not subject to the FCPA because it is a German company.

d. Siemens used NGOs to funnel the money into the various countries.

ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Bribes, Grease Payments, and "When in Rome..."

KEYWORDS: Bloom's: Understand DATE CREATED: 9/6/2017 5:26 PM DATE MODIFIED: 9/6/2017 5:29 PM 44. Suppose that AmTrain, a U.S.-based company, is submitting bids for the construction of a high-speed rail system in India by the Indian government. AmTrain has met with and wants to hire Josh Griffin, an international consultant who has worked with many Fortune 100 companies in their foreign business operations. AmTrain requires all of its agents, consultants, and contractors who work with it on its international operations to sign a statement in which they promise to comply with the FCPA. Griffin has refused to sign the AmTrain FCPA form. Which of the following best describes AmTrain‟s position when it receives the refusal? a. The refusal is a red flag that would require AmTrain to at least do additional due diligence on Griffin.

b. AmTrain has not violated the FCPA if it hires Griffin and he does something its agreement prohibits. c. AmTrain is not subject to the FCPA when contracts are with government agencies and not private foreign companies.

d. AmTrain has violated the FCPA by attempting to deal with Griffin.

ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Bribes, Grease Payments, and "When in Rome..."

KEYWORDS: Bloom's: Apply DATE CREATED: 9/6/2017 5:29 PM DATE MODIFIED: 9/6/2017 5:31 PM 45. PwC, one of the “Big 4” accounting firms, was involved in a scuffle with Russia‟s Federal Tax Service over one of its clients, Yukos. PwC did not want to turn over confidential information about its client. However, the failure to cooperate with the Federal Tax Service could result in the loss of its license to do business in Russia. What questions should other companies consider before expanding their operations into countries in which they have never done business? a. Companies should consider the legal and cultural backdrops and customs in a country before undertaking expansion into that country. b. Companies need to adapt to differing legal systems and simply comply with government requests.

c. Companies should turn to the International Court of Justice when country leaders and agencies are violating professional standards. d. Companies should realize that doing business without engaging in bribery in certain countries is not possible.

ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

False Conflicts Between the Corporation's Ethics and Business Practices in Foreign Countries Bloom's: Analyze 9/6/2017 5:32 PM 9/6/2017 5:34 PM

46. Robert J. Stein was hired as the CFO for the American occupation effort in Iraq. As someone who had the authority to award lucrative contracts to companies seeking portions of the reconstruction efforts there, Mr. Stein wielded a great deal of power. Mr. Stein had served time for felony fraud in the 1990s, but either the background check was not completed or his criminal activity was deemed irrelevant for this position of power.

Mr. Stein and his wife have been accused of being involved in the following transactions:

     

Philip H. Bloom, the owner of several U.S.-based construction companies seeking Iraqi business wired $140,000 to allow Mr. Stein to purchase real estate in North Carolina.

Other contractors spent $65,762.63 to purchase cars for Mr. Stein and his wife (a Chevrolet and a Toyota).

One contractor gave $44,471 for home improvements for the Steins‟ home. $48,073 for jewelry paid for from funds totaling $258,000 that had been transferred into the Bragg Mutual Federal Credit Union account begun by the Steins.

A donation of $7,151.58 to the Steins that was used by Mr. Stein‟s wife to purchase a “towing service”.

Ironically, $200 of the credit union fund was transferred to the clerk of a Federal District court for restitution payment for his earlier conviction.

Mr. Bloom was awarded a significant number of contracts in Iraq. Which of the following best describes the conduct of Mr. Bloom and Mr. and Mrs. Stein? a. The conduct is not a violation of the FCPA because Mr. Stein is a U.S. government official and Mr. Bloom owns a U.S. company, but the two may have violated U.S. laws that prohibit bribery. b. The conduct is a violation of the FCPA because the money and gifts were given with the idea of being awarded contracts. c. The conduct is a violation of the FCPA because the money and gifts related to transactions in international operations. d. The conduct, while ethically dubious, is perfectly legal.

ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Bribes, Grease Payments, and "When in Rome..."

KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/6/2017 5:34 PM DATE MODIFIED: 9/6/2017 5:52 PM 47. When Ikea was poised to open a flagship store outside Moscow in 2001, its executives were approached by employees of the public local utility. If Ikea wanted electricity for its planned grand opening, the public utility officials needed individual cash payments. a. Ikea could pay the money as a facilitation payment and not violate any anti-bribery laws.

b. Ikea and other companies from Sweden do not follow the OECD requirements on bribery so Ikea could pay the officials and not violate any laws. c. The payment to the public officials would be a bribe and would violate Swedish law.

d. The anti-bribery provisions apply only when a company offers to pay them, not when public officials request payments.

ANSWER: c Copyright Cengage Learning. Powered by Cognero.

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POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Bribes, Grease Payments, and "When in Rome..."

KEYWORDS: Bloom's: Analyze DATE CREATED: 9/6/2017 5:41 PM DATE MODIFIED: 9/6/2017 5:51 PM 48. What happened to the Union Carbide plant in Bhopal? a. Union Carbide still operates it. b. Dow acquired Union Carbide and now operates the plant. c. The plant has been mothballed. d. The Indian government now owns the plant and produces dry-cell batteries.

ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Conflicts Between the Corporation's Ethics and Business Practices in Foreign Countries KEYWORDS: Bloom's: Remember DATE CREATED: 9/6/2017 5:53 PM DATE MODIFIED: 9/6/2017 5:55 PM 49. What are the risks of marketing infant formula in third-world countries? a. Customers cannot afford the formula. b. Customers may mix the powdered formula with bad water. c. Customers may water down the formula. d. All of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Conflicts Between the Corporation's Ethics and Business Practices in Foreign Countries KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/6/2017 5:55 PM DATE MODIFIED: 9/6/2017 5:57 PM 50. Which of the following practices best helps prevent sweatshop conditions in factories? a. Company training b. Independent monitoring c. Exclusion of outsiders d. Varying country standards e. None of the above Copyright Cengage Learning. Powered by Cognero.

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ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Conflicts Between the Corporation's Ethics and Business Practices in Foreign Countries KEYWORDS: Bloom's: Understand DATE CREATED: 9/6/2017 5:58 PM DATE MODIFIED: 9/6/2017 5:59 PM 51. The Fair Labor Association: a. Is a group of companies with international labor pools. b. Is a group of colleges and universities dedicated to human rights issues in employment. c. Is a federal agency in the United States. d. Does not count Nike as a member. e. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Conflicts Between the Corporation's Ethics and Business Practices in Foreign Countries KEYWORDS: Bloom's: Understand DATE CREATED: 9/6/2017 6:00 PM DATE MODIFIED: 9/6/2017 6:01 PM 52. Chiquita Banana was required to pay a $25 million fine to the U.S. government because: a. It violated the Foreign Corrupt Practices Act. b. It made grease payments to customs officials by declaring extra weight on its banana shipments. c. It made security payments to a terrorist organization. d. None of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Conflicts Between the Corporation's Ethics and Business Practices in Foreign Countries KEYWORDS: Bloom's: Remember DATE CREATED: 9/6/2017 6:02 PM DATE MODIFIED: 9/6/2017 6:03 PM 53. Which of the following were charged in the FIFA indictment? a. Members of the FIFA executive committee b. Nike c. Adidas Copyright Cengage Learning. Powered by Cognero.

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d. All of the above ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Bribes, Grease Payments, and "When in Rome..."

KEYWORDS: Bloom's: Remember DATE CREATED: 9/6/2017 6:04 PM DATE MODIFIED: 9/6/2017 6:06 PM 54. Which of the following would be both legal and ethical acts in an international operations? a. Offering to pay a regulator for a favorable inspection report. b. Offering to pay a police officer for not writing a ticket. c. Offering to pay a government employee extra to speed up phone service connections. d. None of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Conflicts Between the Corporation's Ethics and Business Practices in Foreign Countries KEYWORDS: Bloom's: Understand DATE CREATED: 9/6/2017 6:07 PM DATE MODIFIED: 9/6/2017 6:08 PM 55. Nike is changing its interaction with international suppliers by: a. Ceasing to outsource its production. b. Using third parties to negotiate labor contracts so that it can distance itself from issues. c. Not having sudden design changes that can affect plant working hours and conditions. d. Forming coalitions with other retail clothing manufacturers.

ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Conflicts Between the Corporation's Ethics and Business Practices in Foreign Countries KEYWORDS: Bloom's: Understand DATE CREATED: 9/6/2017 6:09 PM DATE MODIFIED: 9/6/2017 6:10 PM 56. Which of the following is true about the Union Carbide Bhopal plant? a. It met Indian safety standards. b. It was operated by Union Carbide technicians from the United States. c. It never met government regulations.

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d. It met both U.S. and Indian safety standards.

ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Conflicts Between the Corporation's Ethics and Business Practices in Foreign Countries KEYWORDS: Bloom's: Remember DATE CREATED: 9/6/2017 6:11 PM DATE MODIFIED: 9/6/2017 6:12 PM 57. Global Factors, a NYSE company, wanted to obtain an extension to its contract with Somalia for the sale of its government bonds. Global hired seven interns who were children of Somalian government officials. Global: a. Has not violated the FCPA unless it was obtaining an exception to a rule.

b. Has not violated the FCPA unless it was evading customs and duties. c. Has violated the FCPA. d. Is not subject to the FCPA. ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Bribes, Grease Payments, and "When in Rome..."

KEYWORDS: Bloom's: Apply DATE CREATED: 9/6/2017 6:13 PM DATE MODIFIED: 9/6/2017 6:14 PM 58. Once Walmart executives became aware of the payments in Mexico: a. It self-reported the problems to the U.S. Justice Department. b. It issued a press release. c. It conducted an investigation. d. It stopped the payments.

ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Bribes, Grease Payments, and "When in Rome..."

KEYWORDS: Bloom's: Understand DATE CREATED: 9/6/2017 6:15 PM DATE MODIFIED: 9/6/2017 6:16 PM 59. What has been the impact of corruption in Brazil? a. The country has been able to expand its economy. b. The country has become an amoral society. c. The country has been able to do more business with the United States.

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d. Both a and c ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Bribes, Grease Payments, and "When in Rome..."

KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/6/2017 6:17 PM DATE MODIFIED: 9/6/2017 6:18 PM 60. Which of the following applied to the FIFA indictment? a. It was primarily for money-laundering charges. b. It involved an NGO. c. The FCPA did not apply because there were no government officials involved. d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Bribes, Grease Payments, and "When in Rome..."

KEYWORDS: Bloom's: Remember DATE CREATED: 9/6/2017 6:19 PM DATE MODIFIED: 9/6/2017 6:26 PM 61. Greta Thompson is the head of the Gresham Companies office in Qatar. Greta and her staff have submitted a bid to the central government of Qatar for a consulting project to install a new phone system that will revamp the government‟s phone system and call answering methods. Greta has just hired six summer interns for the offices in Qatar. All six of the interns have at least one parent who works for the Qatar central government. Which of the following statements is correct? a. As long as the interns were hired on their qualifications and merits, there are no legal issues for Greta or Gresham. b. The internships could be a violation of the FCPA.

c. Because the interns are not government officials there is not an FCPA violation. d. Both a and c ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Bribes, Grease Payments, and "When in Rome..."

KEYWORDS: Bloom's: Apply DATE CREATED: 9/6/2017 6:26 PM DATE MODIFIED: 9/12/2017 6:26 PM 62. What difficulties did Ikea encounter in its expansion into Russia?

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a. The expectation of payments for obtaining utility services. b. The inability to pay the high taxes imposed in Russia. c. The need to pay for protection of employees. d. All of the above ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Bribes, Grease Payments, and "When in Rome..."

KEYWORDS: Bloom's: Remember DATE CREATED: 9/6/2017 6:29 PM DATE MODIFIED: 9/6/2017 6:30 PM 63. Dennis Heap has been placed in charge of his company‟s operations in Benghazi. Dennis needs electricity turned on at the offices he has just rented. The electric utility explains that it will not be able to get the electricity turned on for 3 weeks. Dennis offers to pay $500 to have the electricity turned on in 24 hours. Which of the following statements is correct? a. Dennis has violated the FCPA.

b. Dennis has violated the anti-money laundering provisions of U.S. law. c. Dennis has not violated the FCPA. d. Both a and b ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Bribes, Grease Payments, and "When in Rome..."

KEYWORDS: Bloom's: Apply DATE CREATED: 9/6/2017 6:31 PM DATE MODIFIED: 9/6/2017 6:32 PM 64. What did PwC not anticipate in deciding to do business in Russia? a. The problems with bribes. b. The difficulty of many attempting to use it for money-laundering purposes. c. The power of government officials to get information and results. d. Both a and b ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Conflicts Between the Corporation's Ethics and Business Practices in Foreign Countries KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/6/2017 6:33 PM DATE MODIFIED: 9/12/2017 6:27 PM Copyright Cengage Learning. Powered by Cognero.

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Essay 65. Explain the correlation between the amount of corruption in a country and economic development.

The countries with the most corruption have trouble with economic development. Corruption ANSWER: impedes transactions and the smooth flow of commerce. Also, no one is sure whether they can gain approval of the government and if that approval will last.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Bribes, Grease Payments, and "When in Rome..."

KEYWORDS: Bloom's: Analyze DATE CREATED: 9/6/2017 6:36 PM DATE MODIFIED: 9/6/2017 6:37 PM 66. Discuss the following statement: “There‟s a difference between being very competitive and can-do, and winning at all costs. All costs is costly.”

The students should discuss the importance of having lines in trying to be successful. The ANSWER: statement indicates that in trying to win without parameters, you can cross legal lines and end up losing a great deal.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Conflicts Between the Corporation's Ethics and Business Practices in Foreign Countries KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/6/2017 6:38 PM DATE MODIFIED: 9/6/2017 6:40 PM 67. Describe the damage to Nestle‟s reputation following the decision to market infant formula in third-world countries.

The boycott of the company crossed over into other products and its reputation was affected for ANSWER: decades following the incident. Earnings dipped and the company had trouble re-establishing itself in the infant formula market.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Conflicts Between the Corporation's Ethics and Business Practices in Foreign Countries KEYWORDS: Bloom's: Analyze DATE CREATED: 9/6/2017 6:40 PM DATE MODIFIED: 9/6/2017 6:41 PM 68. UBS, a bank based in Switzerland, has received a subpoena from the IRS for the bank records of 52,000 U.S. citizens. The IRS alleges that the U.S. taxpayers hid money in UBS accounts for the purpose of avoiding paying taxes.

UBS had created a program that recruited tax advisers and their clients under the guise that they could protect their funds from the IRS. Swiss law prohibits banks, under privacy rights, from disclosing information about their customers and their accounts.

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However, the IRS has obtained a subpoena for the records and a federal judge has issued it because UBS is soliciting business in the United States. One banking minister in Switzerland has indicated, however, that Swiss privacy laws do not apply when there has been fraud.

Evaluate the ethics of UBS as well as their customers. If you worked for the bank, would you release the information?

Would you place your money in Swiss accounts?

Students should return to the "What if everyone behaved like this?” They could also raise the ANSWER: utilitarian aspect of transferring money in this way to avoid taxes and the avoidance of taxes in the context of the “good of the whole.” International law is different from U.S. laws and there are plenty of areas in which businesses (and here, individuals) can take advantage of the laws and regulations in other countries. The students should reflect the realization that they often demand of companies' behavior in other countries that meets U.S. standards (as with the labor cases), but in this situation individuals choose to take advantage of no taxes via international operations. Few see the parallels in behavior between what they indict companies for, but for which they give individual taxpayers an “atta boy” or “atta girl.”

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Conflicts Between the Corporation's Ethics and Business Practices in Foreign Countries KEYWORDS: Bloom's: Apply DATE CREATED: 9/6/2017 6:41 PM DATE MODIFIED: 9/6/2017 6:43 PM 69. Discuss what business and strategic issues PwC and Chiquita missed in making their decisions on foreign operations.

The companies did not realize the extent of the political instability in the countries in which they ANSWER: were expanding and what impact that instability would have on their ability to just conduct business there. They did not anticipate the risk or the day-to-day ethical issues that would arise that put their operations in jeopardy.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Conflicts Between the Corporation's Ethics and Business Practices in Foreign Countries KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/6/2017 6:43 PM DATE MODIFIED: 9/6/2017 6:45 PM 70. List three effects the Bhopal disaster had on Union Carbide.

The loss of value in the company stock price ANSWER: Increase in the cost of capital Loss of reputation Ongoing litigation Leadership of the company decimated Plant shut down Future expansion limited

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Conflicts Between the Corporation's Ethics and Business Practices in Foreign Countries KEYWORDS: Bloom's: Analyze Copyright Cengage Learning. Powered by Cognero.

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DATE CREATED: 9/6/2017 6:45 PM DATE MODIFIED: 9/6/2017 6:46 PM 71. Explain the ethical and economic implications of paying above-market wages to factory workers in developing countries.

ANSWER:

There are the human rights issues. The workers deserve to be treated with dignity and, under any of the tests for ethics, should be paid a fair wage. However, if a company pays above-market wages in the country, the market wages are skewed and the result is that, for example, doctors might begin to work in factories for the higher wages US companies pay. The students should focus on the various ethical models to discuss how they would want to be treated as well as, based on the Nike experience, the implications for companies that outsource to foreign factories but do not have good conditions or have wages that result in boycotts and international attention.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Conflicts Between the Corporation's Ethics and Business Practices in Foreign Countries KEYWORDS: Bloom's: Analyze DATE CREATED: 9/6/2017 6:47 PM DATE MODIFIED: 9/6/2017 6:48 PM 72. What does the statement “Americans focus on wages paid, not what standard of living those wages relate to” mean in the context of human rights?

The statement is one that companies offer when confronted with the issues of paying $1.00 per ANSWER: hour to workers when they are making shoes that will sell for $80. The companies are asking Americans to consider the wage in relation to the economy of the country and what $1.00 will buy.

In other words, in the United States, the $1.00 per hour is an unreasonable and unfair wage.

However, in a country in which the average income is $1,000 per year, the wage of $1.00 per hour is actually a very good wage.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Conflicts Between the Corporation's Ethics and Business Practices in Foreign Countries KEYWORDS: Bloom's: Analyze DATE CREATED: 9/6/2017 6:48 PM DATE MODIFIED: 9/6/2017 6:52 PM 73. Leslie Fay Companies was a clothing conglomerate that produced lines of women‟s clothing and lingerie under the brand names Leslie Fay, Joan Leslie, Albert Nipon, Theo Miles, Kasper, Le Suit, Nolan Miller, Castleberry, and Castlebrook. In early 1993, it was discovered that senior Leslie Fay executives, in an effort to inflate profits and to mask an actual loss of $13.7 million, had perpetrated an accounting fraud. Paul Polishan, Leslie Fay‟s chief operating officer, was placed on leave without pay in January 1993, along with Donald F. Kenia, the corporate controller. Mr. Kenia had first alerted the company to the accounting manipulations and worked with auditors to untangle the books.

By April 1993, Leslie Fay, under intense pressure from creditors, filed for Chapter 11 bankruptcy (reorganization) in Manhattan. Both Mr. Polishan and Mr. Kenia were fired. Mr. Kenia, charged with two counts of filing false statements with the SEC, has entered into a plea bargain with the U.S. Attorney in exchange for his cooperation in the continuing investigation of the Leslie Fay accounting improprieties.

Also in April 1993, two new outside directors were named to the Leslie Fay board. The audit committee of the board discovered, through continuing investigation, that accounting irregularities had inflated the company‟s profits for at least five quarters beginning in the fall of 1990.

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As Leslie Fay continued its climb from bankruptcy, it was discovered that its law firm, Weil Gotshall & Manges, had failed to disclose its close ties to two board audit committee members. A federal bankruptcy judge ordered the law firm to pay fines totaling $800,000, which was the cost of having an independent review of the law firm‟s representation and conduct in the case.

In March 1995, Leslie Fay placed its flagship dress and retail business up for sale and offered its CEO a success fee of $1.5 million if those businesses were sold.

Also in March 1995, a report detailing accounting improprieties was released by the audit committee of the Leslie Fay board. The board found that when executives realized they would not meet pre-established goals, they would ship goods out to a Wilkes-Barre, Pennsylvania, facility to inflate sales. The executives also forged inventory tags, multiplied the value of inventory, developed phantom inventory and altered records to meet sales target. Some goods were invoiced to be shipped in the final day of a quarter even though they were not actually shipped until the next quarter. Numerous shareholders have filed suit against the Leslie Fay board and BDO Seidman, the company‟s auditor during this period.

John Pomerantz continued as CEO from 1993 onward. The company has tried to find a buyer but has remained unsuccessful in doing so. a.

What signals about the importance of earnings at Leslie Fay were sent to the officers who committed the accounting improprieties? b.

Wouldn‟t employees have been aware of the financial fraud? Why didn‟t they speak up? Why didn‟t they tell someone? c.

How might Leslie Fay have prevented what happened?

d.

If you were the new chief financial officer, what message would you most want to impress upon all Leslie Fay employees? e.

Of what significance are the law firm‟s ties to the board‟s audit committee members? Did these ties set a poor tone at the top? a.

The pressure to make quarterly earnings was so intense that the officers were willing to ANSWER: engage in deception, fabrication, shifting of sales, etc. to meet the earnings figures. b.

Employees may very well have been aware of the fraud, but with an ethical culture in which the officers were involved, it wouldn‟t have done any good to speak up. In a culture such as this one, employees would be afraid to bring such matters to anyone‟s attention. c.

Changing the signals to officers would have helped. The intense focus on earnings and pressure to meet goals set the stage for the deception. d.

The message would be: Earnings the Right Way Earnings Through Sales and Satisfaction Integrity Without Compromise

e.

There are conflicts of interest. Legal counsel for a business (which owes its business and account to the company) is not a good source for audit committee members. The ties suggest “good ol‟ pal network” and “you scratch my back...”.

Note: At the time of the discovery of the earnings misrepresentation, Leslie Fay‟s stock was at $13 per share. In June, 1995, the price had dropped to 13/22. Leslie Fay continues to attempt to struggle out of bankruptcy.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Conflicts Between the Corporation's Ethics and Business Practices in Foreign Countries KEYWORDS: Bloom's: Analyze Copyright Cengage Learning. Powered by Cognero.

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DATE CREATED: 9/6/2017 6:48 PM DATE MODIFIED: 9/6/2017 6:50 PM 74. Chiquita officials said that they either had to make payments to a mercenary and terrorist group or its employees were in danger. Evaluate the company‟s reasoning.

The students should point out that there was another choice, the eventual choice that the company ANSWER: made for other reasons: not to do business in that country. In fact, by the time Chiquita pulled out of Colombia, the country had such unrest that it cut into profits to try and stay there in such an unstable environment. Chiquita used the either/or conundrum to justify its conduct. However, it did not consider all who were affected by its decisions to make payments, including those who were harmed by the activities that were funded by Chiquita‟s payments.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Conflicts Between the Corporation's Ethics and Business Practices in Foreign Countries KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/6/2017 6:53 PM DATE MODIFIED: 9/6/2017 6:54 PM 75. Price Waterhouse Coopers‟ situation with the Russian government‟s request for release of client information presents an ethical dilemma for PwC. However, apply the Laura Nash question: How did they get into this situation in the first place? And discuss your observations about PwC. Students should focus on the fact that the decision to do business in a country in which there is ANSWER: instability or differing views on laws and ethics is a critical one that requires companies to ask, “Are we prepared to . . . ?” Students should consider the Yahoo cases and the company‟s failure to understand the levels (human life at risk) of moral dilemmas that can come about because of their presence in a country and doing business there. In short, PwC got into this either/or situation because of its failure to anticipate how difficult it can be to do business in a country in which political power is exercised corruptly.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Conflicts Between the Corporation's Ethics and Business Practices in Foreign Countries KEYWORDS: Bloom's: Apply DATE CREATED: 9/6/2017 6:54 PM DATE MODIFIED: 9/6/2017 6:55 PM 76. Apply the various schools of social responsibility to product dumping.

The students should discuss that dumping products that are outlawed in the U.S. into other ANSWER: countries is perfectly legal. Friedman would say that absent fraud or illegality, go forward.

However, there may be an impact to the company bottom line, so the enlightened self-interest group would have the company consider the impact if customers in other nations are harmed by their products when the product has been recalled in the U.S. If we go back to the various schools of ethical thought, there is the normative and divine view of human life and that crossing that line with the sale of a dangerous product (even though it is legal) is neither socially responsible nor good for the company. Drucker‟s “above all do no harm” is particularly apt here.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

False Conflicts Between the Corporation's Ethics and Business Practices in Foreign Countries Bloom's: Analyze 9/6/2017 6:56 PM 9/6/2017 6:56 PM

77. What recommendations would you offer to companies to avoid violations of the FCPA? The following tips would help curb bribery: ANSWER:         

Do careful audits of all expenditures in other countries.

Verify the identity and existence of parties/companies to whom payment is made.

Verify the types of services or goods being provided by companies to whom there are payments, especially when there are ongoing payments.

Work to build relationships with government officials that go beyond the shallow approach of bribery.

Contact higher authorities when there are demands for payment of bribes.

Closely monitor bidding processes and contacts of agents and employees during the process with government officials.

Carefully screen agents hired to help in other countries.

Monitor payments to agents hired to help in other countries.

Check flow of cash through bank accounts.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Bribes, Grease Payments, and "When in Rome..."

KEYWORDS: Bloom's: Create DATE CREATED: 9/6/2017 6:57 PM DATE MODIFIED: 9/6/2017 7:00 PM 78. Outline the benefits and risks of the use of international suppliers.

The benefits are reduced costs. However, the risks are that there can be backlash and brand ANSWER: damage from low wages or reporting of poor conditions. There is an underlying risk that you cannot always be there and don‟t know what is going on – requires reliable monitoring, contract terms, and surprise visits to be sure that the operations are clean. Seems like no company has been able to do it without incident.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Conflicts Between the Corporation's Ethics and Business Practices in Foreign Countries KEYWORDS: Bloom's: Create DATE CREATED: 9/6/2017 7:00 PM DATE MODIFIED: 9/6/2017 7:02 PM 79. Explain how GlaxoSmithKline was able to conceal payments to government officials.

GSK had worked out relationships with travel agencies so that it could provide trips, seminars, and ANSWER: entertainment to doctors who had decision-making authority on which drugs were available in hospitals and clinics. There were different travel agencies and the funds seemed to be business Copyright Cengage Learning. Powered by Cognero.

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expenses, but there were perks going to the doctors all over China. The scheme had so many threads and companies that it was difficult for audits to pick up on what was happening. Also, the set-up had the support of managers there so that no one was really asking questions because the program was part of an accepted strategy.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Conflicts Between the Corporation's Ethics and Business Practices in Foreign Countries KEYWORDS: Bloom's: Understand DATE CREATED: 9/6/2017 7:02 PM DATE MODIFIED: 9/6/2017 7:05 PM 80. Make a list of all of the challenges businesses face in doing business internationally based on all of the cases studied in Unit 6.

ANSWER:                 

Bribery demands Grease payment demands Inefficient economic systems due to corruption The need to pay for protection of the business and employees Restrictions on doing business with certain entities because of connection to terrorist groups Pirates!

Government officials changing rules, regulations, tax rates Price instability Labor force Labor conditions Compensation for employees Third-party operation of manufacturing plants Differing safety standards Backlash for doing business in certain countries or with certain countries because of human rights issues Child labor attitudes Lack of training in employees Cultural differences and suitability of products

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Conflicts Between the Corporation's Ethics and Business Practices in Foreign Countries Bribes, Grease Payments, and "When in Rome.."

KEYWORDS: Bloom's: Create DATE CREATED: 9/6/2017 7:05 PM DATE MODIFIED: 9/6/2017 7:08 PM

True / False 1. Ms. Roehm was successful in her wrongful termination suit against Walmart. a. True Copyright Cengage Learning. Powered by Cognero.

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b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Diversity and Personal Lives KEYWORDS: Bloom's: Remember DATE CREATED: 9/6/2017 7:10 PM DATE MODIFIED: 9/6/2017 7:15 PM 2. Walmart still retained the ad agency Ms. Roehm had selected for Walmart before her termination. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Diversity and Personal Lives KEYWORDS: Bloom's: Remember DATE CREATED: 9/6/2017 7:16 PM DATE MODIFIED: 9/6/2017 7:18 PM 3. It is illegal for an employer to look on MySpace in screening potential employees. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Diversity and Personal Lives KEYWORDS: Bloom's: Understand DATE CREATED: 9/6/2017 7:20 PM DATE MODIFIED: 9/6/2017 7:22 PM 4. Employers are permitted to monitor employee e-mails and use of the Internet. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

Workplace Diversity and Personal Lives Bloom's: Understand 9/6/2017 7:22 PM 9/6/2017 7:22 PM

5. E-mail can be obtained during discovery when a company is in litigation. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Diversity and Personal Lives KEYWORDS: Bloom's: Understand DATE CREATED: 9/6/2017 8:41 PM DATE MODIFIED: 9/6/2017 8:42 PM 6. Deleted e-mail cannot be obtained during discovery when a company is in litigation. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Diversity and Personal Lives KEYWORDS: Bloom's: Understand DATE CREATED: 9/6/2017 8:42 PM DATE MODIFIED: 9/6/2017 8:43 PM 7. Voice mail messages on employee phones can be monitored by employers. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Diversity and Personal Lives KEYWORDS: Bloom's: Understand DATE CREATED: 9/6/2017 8:43 PM DATE MODIFIED: 9/6/2017 8:43 PM 8. Darlene Druyon obtained positions for family members at Boeing before she began working there. a. True Copyright Cengage Learning. Powered by Cognero.

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b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Remember DATE CREATED: 9/6/2017 8:44 PM DATE MODIFIED: 9/6/2017 8:45 PM 9. Darlene Druyon had to enter into two plea agreements for different charges. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Remember DATE CREATED: 9/6/2017 8:45 PM DATE MODIFIED: 9/6/2017 8:46 PM 10. No one at Boeing faced criminal charges over the Darlene Druyon job offer. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Remember DATE CREATED: 9/6/2017 8:46 PM DATE MODIFIED: 9/6/2017 8:46 PM 11. Boeing‟s internal investigation did not reveal any misconduct on the parts of Darlene Druyon or anyone at Boeing. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

Workplace Loyalty Bloom's: Remember 9/6/2017 8:47 PM 9/6/2017 8:47 PM

12. A supplier has just been awarded a large contract by your company. As an employee in purchasing, you were largely responsible for awarding that supplier the contract. The supplier's sales representative has just called and would like to take you to lunch to thank you for the support. Going to lunch with the sale representative does not present any ethical problems.

a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Apply DATE CREATED: 9/6/2017 8:47 PM DATE MODIFIED: 9/6/2017 8:48 PM 13. Accepting gifts from suppliers and vendors is not a problem so long as no bid decisions are pending. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Apply DATE CREATED: 9/6/2017 8:49 PM DATE MODIFIED: 9/6/2017 8:49 PM 14. You are a building inspector for the county. A friend of yours is a plumbing contractor. Under county regulations, all steps in plumbing construction from the initial dig to the final installation of sink and bathroom fixtures requires an inspection sign-off. Your plumbing contractor friend has just called and wants to take you to dinner for your birthday at a five-star restaurant. Because you are friends anyway, the dinner presents no ethical problems.

a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Apply Copyright Cengage Learning. Powered by Cognero.

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DATE CREATED: 9/6/2017 8:49 PM DATE MODIFIED: 9/6/2017 8:50 PM 15. The Kodak case involved a consultant, a Kodak employee, and the government appraiser. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Remember DATE CREATED: 9/6/2017 8:50 PM DATE MODIFIED: 9/12/2017 6:29 PM 16. Compensation for the consultant in the Kodak case was a percentage of taxes saved. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Remember DATE CREATED: 9/6/2017 8:51 PM DATE MODIFIED: 9/6/2017 8:51 PM 17. Your supervisor has told you that he wants to "get rid of Jane." Jane is a Hispanic female co-worker who is very bright and capable and hardworking. Your supervisor has asked you to document everything Jane does and says that will help build a case for termination. You should do as your supervisor tells you.

a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Diversity and Atmosphere KEYWORDS: Bloom's: Apply DATE CREATED: 9/6/2017 8:52 PM DATE MODIFIED: 9/6/2017 8:53 PM 18. English-only policies are discriminatory per se. a. True Copyright Cengage Learning. Powered by Cognero.

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b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Diversity and Atmosphere KEYWORDS: Bloom's: Understand DATE CREATED: 9/6/2017 8:53 PM DATE MODIFIED: 9/6/2017 8:54 PM 19. In the Kodak case, the parties involved faced federal fraud charges. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Remember DATE CREATED: 9/6/2017 8:54 PM DATE MODIFIED: 9/12/2017 6:30 PM 20. Your supervisor has had a calendar with pictures of naked women on the inside panel of his desk for several months.

A secretary spotted the calendar and commented to your supervisor that it was not appropriate for an office. Your supervisor took down the calendar and has asked you to back him up if any complaints are filed. He has asked you to say that you never saw the calendar. It would not be unethical for you to do as your supervisor requests because he has removed the calendar.

a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Confrontation KEYWORDS: Bloom's: Apply DATE CREATED: 9/6/2017 8:57 PM DATE MODIFIED: 9/12/2017 6:30 PM 21. Hospitals and nuclear plants would be examples of employers who could justify English-only policies. a. True b. False ANSWER: True POINTS: 1 Copyright Cengage Learning. Powered by Cognero.

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DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Diversity and Atmosphere KEYWORDS: Bloom's: Apply DATE CREATED: 9/6/2017 8:58 PM DATE MODIFIED: 9/6/2017 8:59 PM 22. Costco does not allow accommodations for tattoos and piercings. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Diversity and Atmosphere KEYWORDS: Bloom's: Remember DATE CREATED: 9/6/2017 8:59 PM DATE MODIFIED: 9/6/2017 9:01 PM 23. “Ban the Box” refers to the trucker movement to stop installation of black boxes in the cabs of their trucks. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Diversity and Atmosphere KEYWORDS: Bloom's: Remember DATE CREATED: 9/6/2017 9:01 PM DATE MODIFIED: 9/6/2017 9:02 PM 24. It is now illegal to require job applicants to disclose whether they have ever been convicted of a felony. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Diversity and Atmosphere KEYWORDS: Bloom's: Understand DATE CREATED: 9/6/2017 9:02 PM Copyright Cengage Learning. Powered by Cognero.

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DATE MODIFIED: 9/6/2017 9:03 PM 25. “Fair chance” states require employers to offer a second drug test after a failed one. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Diversity and Atmosphere KEYWORDS: Bloom's: Understand DATE CREATED: 9/6/2017 9:03 PM DATE MODIFIED: 9/6/2017 9:04 PM 26. There are 70 million people in the United States with some type of criminal record. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Diversity and Atmosphere KEYWORDS: Bloom's: Remember DATE CREATED: 9/6/2017 9:04 PM DATE MODIFIED: 9/6/2017 9:05 PM 27. The failure to disclose a current employee‟s conduct that resulted in dismissal and harm to a prospective employer is a breach of ethics.

a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Confrontation KEYWORDS: Bloom's: Apply DATE CREATED: 9/6/2017 9:06 PM DATE MODIFIED: 9/6/2017 9:06 PM 28. Employer hiring practices must be balanced with prospective employees‟ rights to privacy. a. True b. False ANSWER: True Copyright Cengage Learning. Powered by Cognero.

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POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Diversity and Atmosphere KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/6/2017 9:07 PM DATE MODIFIED: 9/12/2017 6:31 PM 29. Employers cannot prohibit office romances between employees who work together. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Diversity and Atmosphere KEYWORDS: Bloom's: Understand DATE CREATED: 9/6/2017 9:08 PM DATE MODIFIED: 9/6/2017 9:09 PM 30. Employer e-mail systems have been ruled as employer property in which employees have no rights of privacy. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Diversity and Personal Lives KEYWORDS: Bloom's: Understand DATE CREATED: 9/6/2017 9:31 PM DATE MODIFIED: 9/12/2017 6:33 PM 31. Employers cannot monitor employee e-mails. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Diversity and Personal Lives KEYWORDS: Bloom's: Understand Copyright Cengage Learning. Powered by Cognero.

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DATE CREATED: 9/6/2017 9:32 PM DATE MODIFIED: 9/6/2017 9:33 PM 32. Employers should try to control the sexually suggestive content of worker e-mails. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Diversity and Personal Lives KEYWORDS: Bloom's: Understand DATE CREATED: 9/6/2017 9:34 PM DATE MODIFIED: 9/12/2017 6:35 PM 33. Whistleblowers have both internal and external avenues for dealing with issues. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Confrontation KEYWORDS: Bloom's: Understand DATE CREATED: 9/6/2017 9:35 PM DATE MODIFIED: 9/12/2017 6:35 PM 34. If whistleblowers do not have internal avenues for dealing with issues, they will quit or turn to external avenues. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Confrontation KEYWORDS: Bloom's: Understand DATE CREATED: 9/6/2017 9:37 PM DATE MODIFIED: 9/12/2017 6:36 PM 35. Whistleblowers who turn to external avenues for dealing with issues are unethical. a. True b. False ANSWER: False Copyright Cengage Learning. Powered by Cognero.

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POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Confrontation KEYWORDS: Bloom's: Understand DATE CREATED: 9/6/2017 9:37 PM DATE MODIFIED: 9/12/2017 6:35 PM 36. When there is a developing safety issue in the workplace, it is best for an employer to just wait and see how much harm can result before taking precautions.

a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Safety KEYWORDS: Bloom's: Analyze DATE CREATED: 9/6/2017 9:38 PM DATE MODIFIED: 9/12/2017 6:36 PM 37. A journalist who fails to disclose his or her financial interest in the subject of a story he or she is covering has a conflict of interest.

a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Apply DATE CREATED: 9/6/2017 9:42 PM DATE MODIFIED: 9/6/2017 9:43 PM 38. A purchasing agent for a company could accept a Rolex from a supplier so long as there is no bid pending. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Loyalty Copyright Cengage Learning. Powered by Cognero.

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KEYWORDS: Bloom's: Apply DATE CREATED: 9/6/2017 9:44 PM DATE MODIFIED: 9/6/2017 9:44 PM 39. The safest and simplest conflict of interest policy for purchasing agents is to accept nothing from suppliers. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/6/2017 9:45 PM DATE MODIFIED: 9/6/2017 9:45 PM 40. A purchasing agent whose daughter works for a supplier has a conflict of interest. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Apply DATE CREATED: 9/6/2017 9:46 PM DATE MODIFIED: 9/6/2017 9:46 PM 41. A purchasing agent who is an owner of 25% of the shares in a supplier does not have a conflict of interest. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Apply DATE CREATED: 9/6/2017 9:46 PM DATE MODIFIED: 9/12/2017 6:37 PM 42. Confrontation is easy for most people. a. True b. False Copyright Cengage Learning. Powered by Cognero.

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ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Confrontation KEYWORDS: Bloom's: Remember DATE CREATED: 9/6/2017 9:47 PM DATE MODIFIED: 9/6/2017 9:48 PM 43. It is more ethical to remain silent about misdeeds. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Confrontation KEYWORDS: Bloom's: Analyze DATE CREATED: 9/6/2017 9:48 PM DATE MODIFIED: 9/6/2017 9:50 PM 44. Confrontation is a key part of ethics. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Confrontation KEYWORDS: Bloom's: Understand DATE CREATED: 9/6/2017 9:50 PM DATE MODIFIED: 9/6/2017 9:51 PM 45. OSHA reportable injury figures are the same as injuries claimed under workers‟ compensation systems. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Safety Copyright Cengage Learning. Powered by Cognero.

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KEYWORDS: Bloom's: Remember DATE CREATED: 9/6/2017 9:51 PM DATE MODIFIED: 9/6/2017 9:52 PM 46. If an employee can return to work, there is not a lost work day even if the employee is on a stretcher. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Safety KEYWORDS: Bloom's: Remember DATE CREATED: 9/6/2017 9:53 PM DATE MODIFIED: 9/6/2017 9:57 PM 47. English-only policies in the workplace are not permitted by the EEOC. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Diversity and Atmosphere KEYWORDS: Bloom's: Remember DATE CREATED: 9/6/2017 9:57 PM DATE MODIFIED: 9/6/2017 9:58 PM 48. Facebook is subject to federal mandates on the removal of content from its site. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Diversity and Personal Lives KEYWORDS: Bloom's: Remember DATE CREATED: 9/6/2017 10:03 PM DATE MODIFIED: 9/6/2017 10:03 PM 49. Malden Mills employees continued to work for Malden and Feuerstein without any problems after Feuerstein paid them whilst the factory was being rebuilt.

a. True Copyright Cengage Learning. Powered by Cognero.

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b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Understand DATE CREATED: 9/6/2017 10:04 PM DATE MODIFIED: 9/6/2017 10:05 PM 50. Malden Mills was able to emerge after the fire with a story of continuing success. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Remember DATE CREATED: 9/6/2017 10:05 PM DATE MODIFIED: 9/6/2017 10:07 PM 51. Facebook does not permit political discourse on its site. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Diversity and Personal Lives KEYWORDS: Bloom's: Understand DATE CREATED: 9/6/2017 10:07 PM DATE MODIFIED: 9/6/2017 10:08 PM 52. The First Amendment only applies to government censorship of speech. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

Workplace Diversity and Atmosphere Bloom's: Understand 9/6/2017 10:09 PM 9/6/2017 10:10 PM

53. Paypal founder Peter Thiel has had his firm boycotted because of his political views. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Diversity and Atmosphere KEYWORDS: Bloom's: Understand DATE CREATED: 9/6/2017 10:10 PM DATE MODIFIED: 9/6/2017 10:11 PM 54. JC Penney missed signals on its buyer who was taking kickbacks. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Remember DATE CREATED: 9/6/2017 10:12 PM DATE MODIFIED: 9/6/2017 10:12 PM 55. Commercial bribery is only a crime for the purchasing agent accepting the money. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Remember DATE CREATED: 9/6/2017 10:13 PM DATE MODIFIED: 9/6/2017 10:14 PM 56. Facebook decided to ban certain presidential candidates from its site. a. True Copyright Cengage Learning. Powered by Cognero.

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b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Diversity and Atmosphere KEYWORDS: Bloom's: Remember DATE CREATED: 9/7/2017 2:47 PM DATE MODIFIED: 9/7/2017 2:48 PM 57. Mr. Zuckerberg boycotted Peter Thiel for his support of President Trump. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Diversity and Atmosphere KEYWORDS: Bloom's: Remember DATE CREATED: 9/7/2017 2:48 PM DATE MODIFIED: 9/7/2017 3:04 PM 58. An agreement by an agent to accept a 10% commission from a seller who will sell goods to the agent‟s employer is ethical so long as the agent would have chosen that seller anyway.

a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Apply DATE CREATED: 9/7/2017 3:04 PM DATE MODIFIED: 9/7/2017 3:05 PM 59. A real estate agent who recommends a management firm to an apartment complex buyer without disclosing that the agent owns 50% of the firm has committed an ethical violation.

a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

False Workplace Loyalty Bloom's: Apply 9/7/2017 3:06 PM 9/7/2017 3:08 PM

60. A commercial broker who accepts fees from both the seller and the buyer of the business without disclosure to either has not committed an ethical violation if both parties are happy with the transaction.

a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Apply DATE CREATED: 9/7/2017 3:08 PM DATE MODIFIED: 9/7/2017 3:09 PM 61. A member of the city council who is employed by a waste management firm would have a conflict of interest in voting on the city‟s award of a contract for the handling of the city‟s waste.

a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Apply DATE CREATED: 9/7/2017 3:09 PM DATE MODIFIED: 9/7/2017 3:10 PM 62. A physician conducting a study on a new prescription drug manufactured by a firm in which he is a 10% shareholder does not have a conflict of interest so long as his stock ownership is disclosed in his report on the drug.

a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Apply DATE CREATED: 9/7/2017 3:10 PM Copyright Cengage Learning. Powered by Cognero.

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DATE MODIFIED: 9/7/2017 3:10 PM 63. A physical fitness expert retained by a fitness magazine to evaluate walking shoes has a conflict of interest if she has an endorsement contract with one of the shoe companies that manufactures the shoes she will be evaluating.

a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Apply DATE CREATED: 9/7/2017 3:11 PM DATE MODIFIED: 9/7/2017 3:11 PM 64. Giving preferential treatment in contract bidding to the daughter of a member of the company board is not a conflict of interest.

a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Apply DATE CREATED: 9/7/2017 3:11 PM DATE MODIFIED: 9/7/2017 3:12 PM 65. Physician referrals of patients to laboratories for work-ups when the physicians own all or part of the labs, but do not disclose such, is a conflict of interest.

a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Apply DATE CREATED: 9/7/2017 3:12 PM DATE MODIFIED: 9/12/2017 6:37 PM 66. A major donation by one of your long-term suppliers to a non-profit organization run by your spouse should not create perception problems so long as your purchasing decisions are based on the merits.

a. True Copyright Cengage Learning. Powered by Cognero.

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b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Apply DATE CREATED: 9/7/2017 3:41 PM DATE MODIFIED: 9/12/2017 6:38 PM 67. Having loan applicants pay for the expenses of bank officer travel for purposes of evaluating collateral is not a conflict of interest.

a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Apply DATE CREATED: 9/7/2017 3:42 PM DATE MODIFIED: 9/7/2017 3:42 PM 68. Purchasing agents accepting a pleasure trip from a supplier when no bids are pending is still an ethical violation. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Apply DATE CREATED: 9/7/2017 3:43 PM DATE MODIFIED: 9/7/2017 3:43 PM 69. Payments of royalties from drug sales by a pharmaceutical firm to the university where a researcher conducting studies has validated the firm‟s claims is a conflict of interest.

a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

False Workplace Loyalty Bloom's: Apply 9/7/2017 3:43 PM 9/7/2017 3:44 PM

70. You work for a construction firm that is submitting a bid for the construction of a new company headquarters building for Smithco. A friend you have known since high school works in Smithco's capital budgeting area and has full knowledge of all the bids from all firms. It would be unethical for your friend to share that information with you before you submitted your bid.

a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Apply DATE CREATED: 9/7/2017 3:44 PM DATE MODIFIED: 9/7/2017 3:44 PM 71. You work for a construction firm that is submitting a bid for the construction of a new company headquarters building for Smithco. A friend you have known since high school works in Smithco's capital budgeting area and has full knowledge of all the bids from all firms. It would be unethical for you to hire your friend to get him to bring the information to your company.

a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Apply DATE CREATED: 9/7/2017 3:44 PM DATE MODIFIED: 9/7/2017 3:45 PM 72. You should disclose to your employer if a relative of yours has submitted a bid for work with your company. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Loyalty Copyright Cengage Learning. Powered by Cognero.

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KEYWORDS: Bloom's: Apply DATE CREATED: 9/7/2017 3:46 PM DATE MODIFIED: 9/7/2017 3:46 PM 73. Employers cannot impose restrictions on office romances. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Diversity and Atmosphere KEYWORDS: Bloom's: Understand DATE CREATED: 9/7/2017 3:47 PM DATE MODIFIED: 9/7/2017 3:47 PM 74. Employers can require that employees cover up tattoos at work. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Diversity and Atmosphere KEYWORDS: Bloom's: Understand DATE CREATED: 9/7/2017 3:48 PM DATE MODIFIED: 9/7/2017 3:48 PM 75. Employers are not liable if a baby is born with defects that resulted from its mother's exposure to harm from chemicals at work.

a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Diversity and Atmosphere KEYWORDS: Bloom's: Understand DATE CREATED: 9/7/2017 3:49 PM DATE MODIFIED: 9/7/2017 3:49 PM 76. Employers cannot prohibit women of child-bearing age from working in areas with chemicals that harm fetuses. a. True Copyright Cengage Learning. Powered by Cognero.

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b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Diversity and Atmosphere KEYWORDS: Bloom's: Apply DATE CREATED: 9/7/2017 3:50 PM DATE MODIFIED: 9/7/2017 3:51 PM 77. A researcher must disclose stock ownership in a company that manufactures a product that competes with the subject of his research.

a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Apply DATE CREATED: 9/7/2017 3:51 PM DATE MODIFIED: 9/7/2017 3:52 PM 78. Most employees believe that their performance evaluations are accurate. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Confrontation KEYWORDS: Bloom's: Apply DATE CREATED: 9/7/2017 3:53 PM DATE MODIFIED: 9/7/2017 3:54 PM 79. A member of the city council who is employed by a waste management firm would have a conflict of interest in voting on the city‟s award of a contract for the handling of the city‟s waste.

a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

False Workplace Loyalty Bloom's: Apply 9/7/2017 3:54 PM 9/7/2017 3:54 PM

80. You are a building inspector for the county. A friend of yours is a plumbing contractor. Under county regulations, all steps in plumbing construction from the initial dig to the final installation of sink and bathroom fixtures requires an inspection sign-off. Your plumbing contractor friend has just called and wants to take you to dinner for your birthday at a five-star restaurant. Because you are friends anyway, the dinner presents no ethical problems.

a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Apply DATE CREATED: 9/7/2017 3:55 PM DATE MODIFIED: 9/7/2017 3:55 PM 81. You work for a school district as a facilities coordinator. You drive to the various schools in the district and supervise construction and remodeling and assess various building needs. When you are traveling around to the various schools, you use a district vehicle that is clearly marked as such. One day you stop at the country club and have lunch before heading to the next school since the country club is on the way. You also stop at the bank drive-thru teller to do some personal banking business. Both the lunch and the bank stop are ethical breaches.

a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Apply DATE CREATED: 9/7/2017 3:55 PM DATE MODIFIED: 9/7/2017 3:56 PM 82. The mayor owns property next to one of the proposed sites for the city's new baseball stadium. The mayor has a conflict of interest and should not vote on the location of the stadium when the city council takes action on the site.

a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

Workplace Loyalty Bloom's: Apply 9/7/2017 3:56 PM 9/7/2017 3:57 PM

83. The head of a regulatory agency cannot accept free tickets from a company the agency regulates. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Apply DATE CREATED: 9/7/2017 3:57 PM DATE MODIFIED: 9/12/2017 6:39 PM 84. A state employee who is making a decision on the medical insurer for the state must disqualify herself if her spouse works for the insurer.

a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Apply DATE CREATED: 9/7/2017 3:57 PM DATE MODIFIED: 9/12/2017 6:39 PM 85. The city employee who manages the finances for a football stadium that is a joint venture between the city and the football team can accept tickets, dinners, and team clothing items without raising conflicts issues.

a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Apply DATE CREATED: 9/7/2017 3:58 PM DATE MODIFIED: 9/12/2017 6:39 PM Copyright Cengage Learning. Powered by Cognero.

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86. A judge whose wife is representing a defendant cannot serve as the trial judge in the case. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Apply DATE CREATED: 9/7/2017 3:59 PM DATE MODIFIED: 9/12/2017 6:40 PM 87. A regulator who represented a company just prior to taking office cannot preside over administrative hearings involving the company.

a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Apply DATE CREATED: 9/7/2017 3:59 PM DATE MODIFIED: 9/12/2017 6:40 PM 88. A state education department administrator cannot award a contract to a company in which he holds an ownership interest.

a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Apply DATE CREATED: 9/7/2017 4:00 PM DATE MODIFIED: 9/12/2017 6:40 PM 89. Electronic monitoring of trucker hours has resulted in more fatigue in drivers because the drivers are hesitant to take breaks.

a. True b. False ANSWER:

True

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POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Safety KEYWORDS: Bloom's: Apply DATE CREATED: 9/7/2017 4:01 PM DATE MODIFIED: 9/12/2017 6:40 PM 90. Small-business truckers support the requirement of a black box monitor. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Safety KEYWORDS: Bloom's: Understand DATE CREATED: 9/7/2017 4:03 PM DATE MODIFIED: 9/12/2017 6:41 PM 91. The Fidelity broker conflicts began as small benefits. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Remember DATE CREATED: 9/7/2017 4:04 PM DATE MODIFIED: 9/12/2017 6:41 PM 92. No one in management above the trading floor was involved in getting perks from mutual funds. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Understand Copyright Cengage Learning. Powered by Cognero.

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DATE CREATED: 9/7/2017 4:06 PM DATE MODIFIED: 9/12/2017 6:41 PM 93. Edward Snowden was an employee of the U.S. government. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Remember DATE CREATED: 9/7/2017 4:08 PM DATE MODIFIED: 9/12/2017 6:42 PM 94. The reason Edward Snowden released documents was to prevent World War III. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Remember DATE CREATED: 9/7/2017 5:11 PM DATE MODIFIED: 9/12/2017 6:42 PM 95. Edward Snowden worked for the CIA. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Remember DATE CREATED: 9/7/2017 5:12 PM DATE MODIFIED: 9/12/2017 6:42 PM 96. Edward Snowden did not try internal reporting prior to releasing government documents to the press. a. True b. False ANSWER: False Copyright Cengage Learning. Powered by Cognero.

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POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Remember DATE CREATED: 9/7/2017 5:13 PM DATE MODIFIED: 9/12/2017 6:43 PM Multiple Choice 97. When Ann Hopkins submitted her application for partnership, how many female partners did Price Waterhouse have? a. 662 b. 7 c. 15 d. 3 ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Confrontation KEYWORDS: Bloom's: Remember DATE CREATED: 9/7/2017 5:14 PM DATE MODIFIED: 9/7/2017 5:16 PM 98. How long had Hopkins been with Price Waterhouse at the time she applied for partnership? a. 5 years b. 7 years c. 10 years d. 15 years ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Confrontation KEYWORDS: Bloom's: Remember DATE CREATED: 9/7/2017 5:16 PM DATE MODIFIED: 9/7/2017 5:17 PM 99. Of those who were applying for partnership at the time Ann Hopkins was applying, how many were women? a. 1 b. 3 c. 7 d. 10 Copyright Cengage Learning. Powered by Cognero.

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ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Confrontation KEYWORDS: Bloom's: Remember DATE CREATED: 9/7/2017 5:18 PM DATE MODIFIED: 9/7/2017 5:18 PM 100. Which of the following was not a description of Ann Hopkins that appeared in the comments from the partners at Price Waterhouse? a. “Macho”

b. “Outstanding professional” c. “Extremely competent, intelligent” d. All of the above were comments made by the partners ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Confrontation KEYWORDS: Bloom's: Remember DATE CREATED: 9/7/2017 5:19 PM DATE MODIFIED: 9/7/2017 5:20 PM 101. Which of the following was not a description of Ann Hopkins that appeared in the comments from the partners at Price Waterhouse? a. “Strong character, independence and integrity”

b. “A stimulating conversationalist” c. “Sometimes overly aggressive, unduly harsh, difficult to work with and impatient with staff” d. All of the above were comments made by the partners ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Confrontation KEYWORDS: Bloom's: Remember DATE CREATED: 9/7/2017 5:23 PM DATE MODIFIED: 9/7/2017 5:24 PM 102. Which of the following was not a description of Ann Hopkins that appeared in the comments from the partners at Price Waterhouse? a. “Overcompensated for being a woman”

b. She should “walk more femininely, talk more femininely, dress more femininely, wear make-up, have her hair styled, and wear jewelry”

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c. She should “get a husband” d. All of the above were comments made by the partners ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Confrontation KEYWORDS: Bloom's: Remember DATE CREATED: 9/7/2017 5:25 PM DATE MODIFIED: 9/7/2017 5:26 PM 103. How many candidates were approved for partnership in the year Hopkins was a candidate? a. 7 b. 15 c. 21 d. 47 ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Confrontation KEYWORDS: Bloom's: Remember DATE CREATED: 9/7/2017 5:27 PM DATE MODIFIED: 9/7/2017 5:28 PM 104. What happened to Hopkins? a. She was approved for partnership b. She was put on hold for partnership c. She was denied partnership d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Confrontation KEYWORDS: Bloom's: Remember DATE CREATED: 9/7/2017 5:28 PM DATE MODIFIED: 9/7/2017 5:29 PM 105. What percentage of Price Waterhouse partners today are women? a. 10% b. 18% Copyright Cengage Learning. Powered by Cognero.

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c. 44% d. 47% ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Confrontation KEYWORDS: Bloom's: Remember DATE CREATED: 9/7/2017 5:30 PM DATE MODIFIED: 9/7/2017 5:31 PM 106. What is the percentage of female partners in all accounting firms today? a. 10% b. 18% c. 44% d. 47% ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Confrontation KEYWORDS: Bloom's: Remember DATE CREATED: 9/7/2017 5:31 PM DATE MODIFIED: 9/7/2017 5:31 PM 107. Why was Julie Roehm fired by Walmart? a. For accepting perks from Walmart‟s ad agencies b. For having an affair c. For running risqué ads d. None of the above ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Diversity and Personal Lives KEYWORDS: Bloom's: Understand DATE CREATED: 9/7/2017 5:32 PM DATE MODIFIED: 9/7/2017 5:34 PM 108. What percentage of colleges and universities will not use Google and Facebook as a means of screening applicants for admission? a. 15%

b. 35% Copyright Cengage Learning. Powered by Cognero.

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c. 55% d. 66% ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Diversity and Personal Lives KEYWORDS: Bloom's: Remember DATE CREATED: 9/7/2017 5:34 PM DATE MODIFIED: 9/7/2017 5:36 PM 109. What was Ms. Wetlaufer‟s job when she met Jack Welch? a. She was his assistant b. She was the editor of Harvard Business Review c. She was his tennis coach d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Diversity and Personal Lives KEYWORDS: Bloom's: Remember DATE CREATED: 9/7/2017 5:36 PM DATE MODIFIED: 9/7/2017 5:38 PM 110. Why did fellow employees demand Ms. Wetlaufer‟s resignation? a. Because she had an affair with Jack Welch b. Because she had a conflict of interest and had compromised her professional integrity c. Because she was not qualified for the job d. Because Mrs. Welch demanded her resignation ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Diversity and Personal Lives KEYWORDS: Bloom's: Remember DATE CREATED: 9/7/2017 5:39 PM DATE MODIFIED: 9/7/2017 5:40 PM 111. As a result of the Welch divorce, what happened at GE? a. GE was fined by the SEC for failure to disclose all of Mr. Welch‟s compensation b. Nothing, GE was not affected by this personal matter Copyright Cengage Learning. Powered by Cognero.

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c. GE terminated Welch as a consultant d. GE hired a lawyer for Welch ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Diversity and Personal Lives KEYWORDS: Bloom's: Remember DATE CREATED: 9/7/2017 5:41 PM DATE MODIFIED: 9/7/2017 5:42 PM 112. Mr. Welch and Ms. Wetlaufer: a. Own a 26,000 sq. ft. home in Boston. b. Are married. c. Write a column for Business Week. d. Are co-authors on a book. e. All of the above ANSWER: e POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Diversity and Personal Lives KEYWORDS: Bloom's: Remember DATE CREATED: 9/7/2017 5:42 PM DATE MODIFIED: 9/7/2017 5:44 PM 113. What ethical issue existed with the Harvard Business Review editor and Jack Welch? a. Conflict of interest b. Taking unfair advantage c. Disclosure of private information d. None of the above ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Diversity and Personal Lives KEYWORDS: Bloom's: Remember DATE CREATED: 9/7/2017 5:44 PM DATE MODIFIED: 9/7/2017 5:45 PM 114. Who is Randi W.? a. Assistant principal at a middle school Copyright Cengage Learning. Powered by Cognero.

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b. Principal at a middle school c. Student who was molested by an assistant principal d. None of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Confrontation KEYWORDS: Bloom's: Remember DATE CREATED: 9/7/2017 5:46 PM DATE MODIFIED: 9/7/2017 5:47 PM 115. What was Gadams‟s first place of employment? a. Mendota Unified School District b. Fresno Pacific College c. Livingston Middle School d. California State Board of Education ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Confrontation KEYWORDS: Bloom's: Remember DATE CREATED: 9/7/2017 5:48 PM DATE MODIFIED: 9/7/2017 5:49 PM 116. What happened at Gadams‟s first place of employment? a. Nothing, he was an exemplary employee b. He was accused of improper conduct with female students c. He molested female students d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Confrontation KEYWORDS: Bloom's: Remember DATE CREATED: 9/7/2017 5:49 PM DATE MODIFIED: 9/7/2017 5:50 PM 117. Who is Gilbert Rossette? a. A teacher accused of molesting junior high students Copyright Cengage Learning. Powered by Cognero.

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b. Head of California State Board of Education c. A professor at Fresno Pacific College d. An official at Mendota Unified School District ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Confrontation KEYWORDS: Bloom's: Remember DATE CREATED: 9/7/2017 5:51 PM DATE MODIFIED: 9/7/2017 5:52 PM 118. What type of letter of recommendation did Gadams‟s receive from his first employer? a. The employer disclosed that Gadams had molested children b. The employer gave a glowing recommendation of Gadams and his ability c. The employer refused to give any information except to disclose that Gadams had worked there d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Confrontation KEYWORDS: Bloom's: Remember DATE CREATED: 9/7/2017 5:52 PM DATE MODIFIED: 9/7/2017 5:56 PM 119. Who said he would “recommend him (Gadams) for almost any administrative position he wishes to pursue”? a. Gilbert Rossette b. Richard Cole c. Gary Rice d. David Malcolm ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Confrontation KEYWORDS: Bloom's: Remember DATE CREATED: 9/7/2017 5:56 PM DATE MODIFIED: 9/7/2017 5:58 PM 120. What conduct was Gadams involved in while at Golden Plains School? a. Led a panty raid Copyright Cengage Learning. Powered by Cognero.

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b. Made sexual overtures to students c. Made sexual remarks to students d. b and c only e. All of the above ANSWER: e POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Confrontation KEYWORDS: Bloom's: Remember DATE CREATED: 9/7/2017 5:59 PM DATE MODIFIED: 9/7/2017 6:00 PM 121. How many schools was Gadams employed at prior to Livingston? a. Three b. Two c. Four d. None of the above ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Confrontation KEYWORDS: Bloom's: Remember DATE CREATED: 9/7/2017 6:00 PM DATE MODIFIED: 9/7/2017 6:01 PM 122. How many positive letters of recommendation did Gadams receive from administrators at the schools? a. Three b. Two c. Four d. None of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Confrontation KEYWORDS: Bloom's: Remember DATE CREATED: 9/7/2017 6:02 PM DATE MODIFIED: 9/7/2017 6:02 PM 123. How did the information about Gadams‟s employment and letters of recommendation become known?

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a. The guardian of a Livingston student filed suit against the school b. Parents disclosed the information c. The issues with Gadams were on file with his teaching certification d. None of the above ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Confrontation KEYWORDS: Bloom's: Remember DATE CREATED: 9/7/2017 6:03 PM DATE MODIFIED: 9/7/2017 6:04 PM 124. Why are former employers reluctant to furnish negative information to prospective employers of their former employees? a. Most states prohibit such disclosures by law

b. Invasion of privacy c. Slander or libel d. None of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Confrontation KEYWORDS: Bloom's: Understand DATE CREATED: 9/7/2017 6:05 PM DATE MODIFIED: 9/7/2017 6:06 PM 125. You have witnessed one of your co-workers engaged in behavior that constitutes sexual harassment of one of the department secretaries. The secretary has spoken with you about the behavior and her concerns. She has also said, "Let me handle it." It seems that she is not able to handle it because the behavior has continued. You should: a. Talk with her again.

b. Report the behavior. c. Talk with your co-worker. d. Any of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Confrontation KEYWORDS: Bloom's: Apply DATE CREATED: 9/7/2017 6:06 PM DATE MODIFIED: 9/7/2017 6:08 PM Copyright Cengage Learning. Powered by Cognero.

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126. You are a sales associate with a large department store chain. You have noticed that a fellow sales associate has been taking high-ticket items home with her. You have checked the sales records and she has not been paying for the items. You should: a. Ignore the conduct because it is not your business.

b. Ignore the conduct because she will be caught eventually. c. Confront her with your knowledge. d. Report her conduct to the police.

ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Confrontation KEYWORDS: Bloom's: Apply DATE CREATED: 9/7/2017 6:09 PM DATE MODIFIED: 9/7/2017 6:10 PM 127. You had quite a night last night of partying. Because of excessive drinking, you are unable to get to work today.

When you call your supervisor you: a. Should just say you have the flu.

b. Should just say you are sick. c. Should disclose the prior night's activity. d. None of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Safety KEYWORDS: Bloom's: Apply DATE CREATED: 9/7/2017 6:10 PM DATE MODIFIED: 9/7/2017 6:12 PM 128. You are at lunch when you notice one of your firm's delivery drivers sitting at the bar in the restaurant. The driver is having shots of tequila over the course of the lunch hour. He then returns to his truck in the parking lot and resumes deliveries. You: a. Should stop the driver.

b. Should report the driver. c. Should take the keys to the truck. d. Should do all of the above.

ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Confrontation Copyright Cengage Learning. Powered by Cognero.

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KEYWORDS: Bloom's: Apply DATE CREATED: 9/7/2017 6:31 PM DATE MODIFIED: 9/7/2017 6:33 PM 129. Dr. Joseph Biederman and Dr. Timothy Wilens are members of the psychiatry department at Harvard Medical School. The two scholars reported, in hindsight, $1.6 million they received from drug makers between 2000 and 2007.

The two are known for their advocacy of the use of antipsychotic medicines in children and the payments to the two came from pharmaceutical firms that produce such drugs. Consulting arrangements with the pharmas were already a topic of concern because the good docs advocated unapproved uses of the drugs. Dr. Biederman responded to the disclosure of the fees and his belated compliance with university policy on reporting consulting arrangements, “My interests are solely in the advancement of medical treatment through rigorous and objective study.” Which of the following best describes what happened with Dr. Biederman? a. He eliminated the question of conflicts through his disclosure statement

b. He is correct; he never had a conflict c. Either a or b d. None of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Apply DATE CREATED: 9/7/2017 6:34 PM DATE MODIFIED: 9/7/2017 6:35 PM 130. After reading about the events in the Randi W case, which of the following would be the best advice you could give a supervisor who is looking for guidance on writing reference letters for employees who have been fired for cause, but who would like to avoid litigation against the company? a. Decline to write the letter or simply confirm employment

b. Give the full story of the employee‟s termination from your perspective c. Write a positive letter to avoid defamation issues d. Turn over the information from the internal investigation on the former employee ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Confrontation KEYWORDS: Bloom's: Apply DATE CREATED: 9/7/2017 6:37 PM DATE MODIFIED: 9/7/2017 6:38 PM 131. Which of the following employers is likely to have an English-only policy upheld? a. Hospital with surgery and trauma units b. An emergency call center c. The control room of a nuclear power plant d. All of the above Copyright Cengage Learning. Powered by Cognero.

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ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Diversity and Atmosphere KEYWORDS: Bloom's: Understand DATE CREATED: 9/7/2017 6:39 PM DATE MODIFIED: 9/7/2017 6:41 PM 132. Which of the following is not a proper purpose of office romance policies? a. Prevent issues of harassment b. Prevent discrimination in treatment and evaluation of employees by managers c. Prevent employee association outside of work d. Both a and c ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Diversity and Atmosphere KEYWORDS: Bloom's: Understand DATE CREATED: 9/7/2017 6:41 PM DATE MODIFIED: 9/7/2017 6:42 PM 133. If the conditions at a factory could cause birth defects in the fetuses of pregnant workers, which of the following is legal action an employer can take to prevent those defects in fetuses? a. Prevent female workers from holding jobs in the factory that result in exposure to the harmful elements

b. Prevent pregnant workers from holding jobs in the factory that result in exposure to the harmful elements c. Have employees sign an agreement of understanding of the harm and waiver of liability d. Employers cannot take any of these steps ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Diversity and Atmosphere KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/7/2017 6:43 PM DATE MODIFIED: 9/7/2017 6:45 PM 134. What position has Facebook taken on political discourse on its site? a. It has banned all political discourse b. It has banned political discourse that it finds offensive upon review c. It has banned political discourse from political candidates d. None of the above Copyright Cengage Learning. Powered by Cognero.

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ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Diversity and Atmosphere KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/7/2017 6:46 PM DATE MODIFIED: 9/7/2017 6:47 PM 135. Under the U.S. Constitution, a private party in a commercial enterprise: a. Cannot control the speech of others in that enterprise. b. Can set its own speech standards. c. Can set discriminatory speech standards. d. All of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Diversity and Atmosphere KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/7/2017 6:47 PM DATE MODIFIED: 9/7/2017 6:49 PM 136. What was the total cost to Malden Mills of paying Malden employees for six months while the factory was down? a. $10 million b. $25 million c. $300 million d. $430 million ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Remember DATE CREATED: 9/7/2017 6:49 PM DATE MODIFIED: 9/7/2017 6:52 PM 137. Which of the following did Malden Mills not do in 2004? a. Partner with a Chinese factory b. Expand its military contracts c. Sell on QVC d. Both a and b Copyright Cengage Learning. Powered by Cognero.

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e. Malden did all of the above ANSWER: e POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Remember DATE CREATED: 9/7/2017 6:52 PM DATE MODIFIED: 9/12/2017 6:45 PM 138. Evaluate the following statement from a doctor, “I always do what‟s best for my patients, and these gifts and dinners do not influence me.” a. The doctor has established that there is no conflict of interest

b. The doctor has established that there is a conflict of interest c. The doctor has eliminated the conflict of interest with this disclosure d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Analyze DATE CREATED: 9/7/2017 6:55 PM DATE MODIFIED: 9/7/2017 6:57 PM 139. Jack Grubman made a deal with Sandy Weill that affected his analysis of what company? a. CItigroup b. Salomon c. AT&T d. None of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Remember DATE CREATED: 9/7/2017 6:57 PM DATE MODIFIED: 9/7/2017 6:58 PM 140. Jack Grubman made his deal with Sandy Weill on his stock analysis: a. In order to obtain funding for WorldCom. b. In order to obtain funding for Citigroup. c. In order to gain a promotion at Salomon.

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d. None of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Remember DATE CREATED: 9/7/2017 6:59 PM DATE MODIFIED: 9/7/2017 7:01 PM 141. How was the Grubman/Weill deal discovered? a. Grubman confessed b. Weill confessed c. E-mails from Grubman were discovered in other investigations d. None of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Remember DATE CREATED: 9/7/2017 7:02 PM DATE MODIFIED: 9/7/2017 7:03 PM 142. What issue affected Grubman‟s relationship with Bernie Ebbers? a. His desire to get his children into a preschool b. IPO allocations c. His negative analysis of WorldCom d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Remember DATE CREATED: 9/7/2017 7:03 PM DATE MODIFIED: 9/7/2017 7:05 PM 143. What is at issue when government officials take gifts from those they regulate? a. Conflicts of interest b. Corruption c. Public trust Copyright Cengage Learning. Powered by Cognero.

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d. All of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Understand DATE CREATED: 9/7/2017 7:05 PM DATE MODIFIED: 9/7/2017 7:08 PM 144. Jack Grubman, a financial analyst, committed which ethical breach(es) in order to earn a slot for his children in a preschool? a. Allowing a false impression

b. Conflicts of interest c. Taking unfair advantage d. All of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Understand DATE CREATED: 9/7/2017 7:09 PM DATE MODIFIED: 9/7/2017 7:10 PM 145. The perks furnished by pharmaceutical companies to physicians: a. Are simply direct advertising methods. b. Are conflicts of interest. c. Do not influence the doctors decisions and are ethical. d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Understand DATE CREATED: 9/7/2017 7:11 PM DATE MODIFIED: 9/7/2017 7:12 PM 146. Which of the following has been documented as an employer practice in order to meet safety numbers on injuries? a. Refusing medical treatment for an employee b. Wheeling an employee with a broken leg onto a construction site to avoid a lost work-day report c. Asking OSHA for a change in definitions Copyright Cengage Learning. Powered by Cognero.

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d. All of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Safety KEYWORDS: Bloom's: Apply DATE CREATED: 9/7/2017 7:12 PM DATE MODIFIED: 9/7/2017 7:14 PM 147. Which of the following is a correct statement about employer liability for sleepy employees who fall asleep on the way home and cause accidents? a. Employers have no liability for these accidents

b. Employers have been held liable for such accidents c. Employers are liable only if they pay the employees during their travel time to and from work d. Employers are not liable if employees volunteer for extra work hours ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Safety KEYWORDS: Bloom's: Apply DATE CREATED: 9/7/2017 7:14 PM DATE MODIFIED: 9/7/2017 7:15 PM 148. Which of the following influenced the behaviors of Cintas employees? a. Per-piece goals b. That managers ignored safety policies c. That other plants ignored safety policies d. All of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Safety KEYWORDS: Bloom's: Understand DATE CREATED: 9/7/2017 7:16 PM DATE MODIFIED: 9/7/2017 7:18 PM 149. Why did the SEC require Peter Lynch of Fidelity to pay a fine? a. He was involved in a bachelor party that got out of control b. He was not registered to be on the trading desk c. He obtained show and concert tickets through the trading desk Copyright Cengage Learning. Powered by Cognero.

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d. He accepted gifts from traders at the trading desk ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Remember DATE CREATED: 9/7/2017 7:18 PM DATE MODIFIED: 9/7/2017 7:21 PM 150. Jack Grubman was involved in which of the following activities at Citi? a. Embezzlement b. IPO allocations to clients c. Negative analysis of WorldCom stock and performance d. All of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Remember DATE CREATED: 9/7/2017 7:21 PM DATE MODIFIED: 9/7/2017 7:22 PM 151. What company did Jack Grubman of Citi write a positive evaluation of in order to obtain a favor from Sandy Weill? a. Citi b. WorldCom c. Walmart d. AT&T ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Remember DATE CREATED: 9/7/2017 7:23 PM DATE MODIFIED: 9/7/2017 7:24 PM 152. What motivated Sandy Weill‟s offer to do a favor for Jack Grubman? a. He wanted to be on the board at WorldCom b. He wanted Grubman to issue a positive report on WorldCom c. He wanted to oust his co-CEO Copyright Cengage Learning. Powered by Cognero.

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d. He wanted to oust C. Michael Armstrong ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Remember DATE CREATED: 9/7/2017 7:24 PM DATE MODIFIED: 9/7/2017 7:26 PM 153. The costs of postponing confrontation include: a. Possible physical harms if individuals with problems related to anger are not counseled. b. Possible liability for harm caused by individuals who have not been confronted. c. Possible liability for confrontation undertaken too quickly. d. Both a and b ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Confrontation KEYWORDS: Bloom's: Analyze DATE CREATED: 9/7/2017 7:26 PM DATE MODIFIED: 9/7/2017 7:28 PM 154. Which of the following is/are not beliefs of employees about performance evaluations? a. That those higher up intervene in the evaluation process without actual knowledge of the individuals‟ performance b. That they are used as a way to rid the company of slackers

c. That forced ranking systems are the best way to guarantee equity in performance evaluations d. All of the above are employee beliefs about performance evaluations ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Confrontation KEYWORDS: Bloom's: Understand DATE CREATED: 9/7/2017 7:29 PM DATE MODIFIED: 9/7/2017 7:30 PM 155. What is the single most important factor that could improve employee perceptions of performance evaluations? a. Honesty b. Forced ranking systems c. 360-degree feedback Copyright Cengage Learning. Powered by Cognero.

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d. None of the above ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Confrontation KEYWORDS: Bloom's: Remember DATE CREATED: 9/7/2017 7:31 PM DATE MODIFIED: 9/7/2017 7:33 PM 156. How did the Kodak employee influence the government appraisal of Kodak properties? a. By campaign contributions. b. Through fees paid to a consultant who worked with the appraiser c. By public pressure on the appraiser. d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Understand DATE CREATED: 9/7/2017 7:33 PM DATE MODIFIED: 9/7/2017 7:36 PM 157. The Kodak employee had an arrangement with: a. An appraiser. b. An assessor. c. Both a and b d. None of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Remember DATE CREATED: 9/7/2017 7:36 PM DATE MODIFIED: 9/7/2017 7:42 PM 158. In the Darlene Druyun/Boeing case, what laws were violated? a. Federal procurement statutes b. Antitrust laws c. Federal securities laws Copyright Cengage Learning. Powered by Cognero.

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d. Both a and b ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Understand DATE CREATED: 9/7/2017 7:43 PM DATE MODIFIED: 9/7/2017 7:44 PM 159. Why was Ms. Druyun‟s sentence increased from six- to nine-months? a. The judge had not applied the sentencing law correctly b. Because Mr. Sears was sentenced to nine months c. Because she had lied to federal investigators d. Both a and c ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Understand DATE CREATED: 9/7/2017 7:44 PM DATE MODIFIED: 9/12/2017 6:46 PM 160. Where did Ms. Druyun first cross an ethical line in her relationship with Boeing? a. When she mentioned she was retiring b. When her daughter was hired at Boeing c. When her daughter mentioned to Mr. Sears that her mother was retiring d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/7/2017 7:46 PM DATE MODIFIED: 9/7/2017 7:48 PM 161. Which of the following groups favor the introduction of black boxes into commercial trucks? a. American Trucking Association b. Small business owners who drive their own trucks c. Owners of large commercial fleets Copyright Cengage Learning. Powered by Cognero.

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d. All of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Safety KEYWORDS: Bloom's: Understand DATE CREATED: 9/7/2017 7:48 PM DATE MODIFIED: 9/7/2017 7:51 PM 162. What was the result of FINRA‟s case against Jeffries for the tickets, flights, parties, etc. given to Fidelity traders? a. There were no sanctions by FINRA, just by the SEC b. Jeffries was delisted from the national stock exchanges c. Penalties and disgorgement of profits d. All of the above are correct statements ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Understand DATE CREATED: 9/7/2017 7:51 PM DATE MODIFIED: 9/7/2017 7:52 PM 163. What steps did Edward Snowden take before he released the government documents to newspaper reporters? a. He took no steps, but out of fear released the document to the newspaper reporters b. He raised the issues to his supervisors c. He went to the FBI d. Both b and c ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Understand DATE CREATED: 9/7/2017 7:53 PM DATE MODIFIED: 9/7/2017 7:54 PM 164. Place the following steps in order that employers may take legally when an employee‟s appearance standards fall short of company culture.

 

Have a gender-neutral code of standards for appearance Ask employees to comply with the standards when they fall short

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 

Offer individual accommodations Use standard personnel policies for termination with warnings

a. I, IV, II, III b. I, II, III, IV c. II, I, III, IV d. IV, I, II, III ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Diversity and Atmosphere KEYWORDS: Bloom's: Apply DATE CREATED: 9/7/2017 7:54 PM DATE MODIFIED: 9/12/2017 6:46 PM 165. What is the current state of the law on asking about felony convictions on a job application? a. It is prohibited under federal law b. It is prohibited in about one-half of the states c. It is prohibited in most state d. None of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Workplace Diversity and Atmosphere KEYWORDS: Bloom's: Understand DATE CREATED: 9/7/2017 7:57 PM DATE MODIFIED: 9/7/2017 8:00 PM Essay 166. Discuss the risks of avoiding confrontation of a problem employee.

The costs increase for the organization, there is additional liability, the problem grows in magnitude, ANSWER: more individuals are affected by the conduct, there is an effect on the culture of the organization.

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Workplace Confrontation KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/7/2017 8:00 PM DATE MODIFIED: 9/7/2017 8:01 PM 167. What factors contribute to the failure in necessary confrontation?

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ANSWER:

Students can discuss the Randi W. case and mention: fear of liability, fear of blame for inaction, ugliness of confrontation, unwillingness to uproot others‟ lives, hope that the problem will go away.

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Workplace Confrontation KEYWORDS: Bloom's: Analyze DATE CREATED: 9/7/2017 8:02 PM DATE MODIFIED: 9/7/2017 8:04 PM 168. Alan S. Noonan was fired from his job as a salesman at Staples, Inc. for allegedly padding expense reports. A Staples executive then sent a mass e-mail to about 1,500 employees informing them that Noonan had been fired for violating the company's travel and expense policy. Staples also denied Noonan his severance benefits and refused to allow him to exercise his stock options, claiming that, under the terms of the agreements setting forth the right to these benefits, Noonan was ineligible because he had been fired “for cause.” Discuss the ethical issues of both the employer and the employee.

Padding expense accounts is taking what does not belong to you and may well be a criminal ANSWER: offense as well. However, the mass e-mail does violate the employee‟s privacy inasmuch as there has not been a full airing of the charges. Two wrongs do not make a right. The employer has violated the employee‟s privacy, regardless of whether he padded his expense account.

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Workplace Confrontation KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/7/2017 8:04 PM DATE MODIFIED: 9/7/2017 8:05 PM 169. Discuss the similarities between the Westland/Hallmark case and the Cintas and OSHA cases.

The cases are similar in that you have front-line workers who are compensated on a per-head/perANSWER: piece basis and they are trying to get their numbers. The result in one is that they disregarded the rule and climbed on the moving belt and in the other they developed liberal definitions in order to comply with the rules, but still get their numbers.

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Workplace Safety KEYWORDS: Analyze DATE CREATED: 9/7/2017 8:05 PM DATE MODIFIED: 9/7/2017 8:07 PM 170. Kyphon employees sold, sold, sold Kyphon‟s products for spinal fracture repairs. One rep took his territory‟s sales from $16,000 a month to $200,000 per month in less than a year. Incentive programs do produce miracles.

Kyphon, now Medtronics Spine, faced Medicare fraud allegations when two former employees brought suit under the False Claims Act. Medtronics acquired Kyphon in 2007 while the former employee suits for Medicare fraud were pending. According to documents in the case, Kyphon sales reps didn‟t just tout the benefits of Kyphon products, and indeed there are many. The sales reps offered the doctors and hospitals a way to keep patients overnight. Helping docs Copyright Cengage Learning. Powered by Cognero.

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and hospitals bill Medicare for an overnight stay on what was only a one-hour, walk-away outpatient procedure was a boon. Kyphon created a mutually beneficial triangle: more sales for Kyphon, more commissions and bonuses for reps, and more revenue for docs and hospitals.

Discuss the ethical issues in this scenario. Was it a violation of the law in terms of Medicare reimbursement?

There are conflicts of interest here: Doctors are influenced by additional reimbursement and may ANSWER: not make decisions in best interests of patients. The case is an interesting one because the conflict comes from the arrangement for extra benefits from the government, not from the sales reps themselves. Reps were conflicted – their actions might not be (and proved not to be) in the best interest of their companies. The incentive plan resulted in harm to the company. Students could also bring in the cultural issues that they learned in Unit Four. Hospitals were also conflicted because their decisions on billing might not have been in the best interest of their patients.

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Apply DATE CREATED: 9/7/2017 8:07 PM DATE MODIFIED: 9/7/2017 8:08 PM 171. Company A‟s executives are members of the board of a charity. Company A may even itself be a major donor to the charity. The charity may even benefit many of the company‟s customers. The charity holds a golf tournament to raise money. The executives participate in the tournament. In some cases, Company A even pays the executives‟ participation fees (good for company image). Company B is a supplier to Company A or a vendor that would like to be a supplier.

Enter the desire for face time. In some tournaments, Company A executives turns to every Company B executive in the supply chain and asks for participation. And participate they do. They pay their entry fees because Company A executives ask. But sometimes Company B folks want and get more. Company B antes up the dough for primo participation in the tournament. If a VP of Company A is playing a round with a celebrity, Company B pays enough to get its VP in the same foursome.

Discuss the ethical issues.

These are conflicts of interest, but they are cleverly housed within charitable activities so that there ANSWER: is less of a direct tie. However, the money going to the executive‟s charity does not erase the quid pro quo – there is still a benefit conferred. The benefit is not money, but the donation does help the executive‟s reputation and the third parties are trying to gain access and, perhaps, contracts.

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/7/2017 8:09 PM DATE MODIFIED: 9/7/2017 8:11 PM 172. Peter Madsen, an organizational behavior professor, published research that indicates airlines that are performing closest to their financial goals are the least safe. However, he also found that airlines that are nowhere near their financial goals have the least safety risk. Combine what you learned in Units 1 and 2 with what you learned in this Unit to try to explain why Professor Madsen found this phenomenon.

The companies that meet their financial goals may be like what we saw in the BP cases or with ANSWER: truckers – financial goals are so important that they take priority over other types of goals, such as safety or simply just compliance with the safety rules and regulations. We learned from Westland/Hallmark and Cintas that employees respond to financial goals and may compromise safety to get there. Those airlines that are struggling financially may be thinking that the last thing Copyright Cengage Learning. Powered by Cognero.

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they need is a safety incident. There is a balancing that goes on with employees and financial pressure often takes priority.

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Workplace Safety KEYWORDS: Analyze DATE CREATED: 9/7/2017 8:11 PM DATE MODIFIED: 9/12/2017 6:47 PM 173. In 2010, Congress passed a law that required ferry operators to have survival crafts on board for all passengers, including boats used for tours, dinner cruises, whale-watching, and charter fishing. The law requires sufficient equipment to keep all passengers out of the water, instead of existing regulations that permitted a certain percentage of life jackets for passengers who could physically float in the water until rescued. The Coast Guard had simply required a life jacket for every passenger prior to the law change.

Ferry boats in the United States and along its coastlines total 200 million per year. From 2000-2011, 244 people died and 14 people went missing from ferry boats. It will cost $1,373 per survival craft and $400-$500 per year for maintenance for each boat. The Passenger Vessel Association resisted implementation because of the expense and how few people die as a result of ferry accidents.

Evaluate the stakeholders and ethical issues in this debate.

Like factory conditions in other countries, things are not as fancy on ferry boats as they are on ANSWER: ocean-going vessels. The issues are: What is necessary for safety?

What are the risks?

Will the costs limit the ferry rides, dinner cruises, etc.?

Is there a regulatory cycle going on here?

Human life is at stake? What risks are we willing to take?

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Workplace Safety KEYWORDS: Analyze DATE CREATED: 9/7/2017 8:13 PM DATE MODIFIED: 9/7/2017 8:14 PM 174. They had been accepted at Harvard. So, in December 2016, they started a Facebook messaging group that they called “Harvard memes for Horny Bourgeois Teens.” The group continued to grow, to 100, and with that growth the postings made their way back to Harvard officials. The postings were offensive at best, racist and frightening at worst.

Some students joked about finding sexually molesting children to be arousing. One post labeled the hypothetical hanging of a Mexican child, “piñata time.” Other memes mocked sexual assault and the Holocaust. Not all admitted students participated in what was called the dark meme group. Admission to this subgroup of the Facebook site for admitted students required those seeking to join the group to post something provocative.

When Harvard officials became aware of the posts, they sent letters to those involved with the following, "The Admissions Committee was disappointed to learn that several students in a private group chat for the Class of 2021 were sending messages that contained offensive messages and graphics . . . We are asking that you submit a statement by tomorrow at noon to explain your contributions and actions for discussion with the Admissions Committee." The admitted students who were part of the group, but did not participate were not sent the letter. After the letters were submitted, Harvard revoked the acceptance of 10 students who had been admitted.

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Harvard receives 40,000 applications for admission each year, and it admits 2,056 (5.2%). An acceptance has certain conditions. For example, acceptance comes before final grades are computed for the applicants‟ final year in high school, so the acceptance has the condition that all things remain about the same as reflected in the students‟ applications, including grades and behavior. Harvard‟s admission letter includes the following: “As a reminder, Harvard College reserves the right to withdraw an offer of admission under various conditions including if an admitted student engages in behavior that brings into question his or her honesty, maturity, or moral character.” Harvard‟s decision to rescind admission is a final decision. There is no appeal for a revocation of admission.

Discuss the ethical issues in this Harvard situation, including the issues of stakeholders, privacy, diversity, and personal lives.

The admitted students should understand that nothing posted online is really private. Harvard was ANSWER: not going online and checking on the students. The information was out there and was reported to Harvard by those who have a stake in Harvard‟s reputation. The postings also raise questions about the attitudes of the posters on diversity and tolerance. Harvard is affected by those posts.

Members of the groups who were mocked and labeled are also affected by the post. The coarseness of the language also affects the way we interact with one another. While the students met the standards for admission and had been granted admission, the loophole clause is there for Harvard to use in order to protect its reputation. Be careful what you post – it counts.

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Workplace Diversity and Personal Lives KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/7/2017 8:15 PM DATE MODIFIED: 9/12/2017 6:48 PM 175. Discuss the similarities between a teen‟s decision to text-message whilst driving and an executive‟s decision to not perform routine maintenance in the interest of saving on costs at a plant.

Students should note that both are self-interest decisions – you get the message done when you ANSWER: want and saving on costs means more money for everyone including you. However, neither decision takes into account the effects on others who are on the road or in the plant – the stakeholders in your decision whose safety and well being are affected by your self-interest decision, which is really more of a selfish decision. There are also long-term implications of the decision in terms of personal and company costs. The text messaging seems like a personal and trivial case, but students should realize that the same thought processes apply at the very highest levels of business. Also, both feel there is little risk and that they overestimated their ability to handle the situation with care.

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Workplace Diversity and Personal Lives KEYWORDS: Bloom's: Analyze DATE CREATED: 9/7/2017 8:18 PM DATE MODIFIED: 9/7/2017 8:20 PM 176. Jake Barnes has been posting customer complaints on one of his company‟s competitor‟s websites. Jake has never been a customer of those competitors, but he uses time during his work days to go online and issue negative reports to make his sales job easier. He uses the complaints posted in talking with customers in order to persuade them to sign with his company. Jake‟s employer has asked to review Jake‟s and other salespeople‟s computers to see whether anyone on the sales team is responsible for the uptick in negative feedback against competitors. Explain Jake‟s and his employer‟s rights.

Jake‟s employer is permitted to look at his and other employees‟ computers because his company ANSWER: Copyright Cengage Learning. Powered by Cognero.

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is responsible for what they say and do as well as what they use their computers to do. There is no right of privacy for employees on their work computers. The courts put the burden on employees to use their computers carefully and avoid placing personal information and correspondence on work computers. In addition, Jake is using deceptive tactics to make sales.. The employer would be responsible for those actions as well.

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Workplace Diversity and Personal Lives KEYWORDS: Bloom's: Analyze DATE CREATED: 9/7/2017 8:20 PM DATE MODIFIED: 9/7/2017 8:21 PM 177. Discuss the impact when researchers do not disclose their financial ties to companies whose products they are researching.

ANSWER:

Students should discuss basic conflicts of interest issues. Their financial compensation is a conflict with their duties as researchers. There are two ways to resolve a conflict: don‟t do it, or disclose it.

The funding for research comes mostly from companies, but the financial interest must be disclosed. The journals are now making it a requirement that authors and researchers disclose their interests.

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Apply DATE CREATED: 9/7/2017 8:22 PM DATE MODIFIED: 9/7/2017 8:26 PM 178. Althea Caldwell is the director of Arizona's Department of Health Services (DHS). DHS is charged the administration of the state's behavioral health system and is responsible for contracting with private providers for millions of dollars of mental health care each year for eligible patients.

Ms. Caldwell accepted a $20,000 per year director position for a hospital group corporation. One of the hospitals in the group was one to which state contracts for mental health treatment had been awarded.

One month after accepting the position, Ms. Caldwell asked the state's attorney general for an opinion as to whether she had a conflict of interest.

Does Ms. Caldwell have a conflict of interest?

Ms. Caldwell has a classic textbook conflict of interest. You cannot be the state official responsible ANSWER: for awarding conflicts AND the director of a company that owns one of the facilities bidding for those contracts. The $20,000 is a quid pro quo – a position awarded with compensation with the hope of gaining an edge in the state agency's award of contracts.

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Apply DATE CREATED: 9/7/2017 8:24 PM Copyright Cengage Learning. Powered by Cognero.

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DATE MODIFIED: 9/7/2017 8:27 PM 179. Frank Hoffman is the CEO of Triple Plus, Inc., a group of four successful restaurants in the Southwest. One member of the Triple Plus board of directors, Sam Wasson, has a daughter, Chelsea Wasson, who has just started Chelsea‟s Cloths, a business that supplies restaurant linens. Wasson has approached Hoffman to explain Chelsea‟s business.

Chelsea‟s Cloths has adopted an environmental emphasis in its operations as a way of countering the industry trend toward the use of paper products in restaurants. Sam Wasson initially recruited Hoffman as CEO, was instrumental in having the board select Hoffman, and is one of Hoffman‟s strong backers. Wasson supported Hoffman when other board members were impatient with his new procedures, policies, and changes.

Ordinarily, when someone approaches Frank Hoffman with information on a new supplier, he takes the information and refers it to the purchasing/supply area or refers the person directly to the manager of purchasing. In this case, Frank personally presented the information to Triple‟s purchasing manager, Deidre Hall. Frank offered Deidre the Chelsea‟s Cloths brochure and card and explained, “She is Sam Wasson‟s daughter. She just graduated in marketing from State University last June and now has her own firm. See what you can do. Our contract with Lila‟s Linens is up for renewal.

Maybe we can do something.”

Deidre evaluated Chelsea‟s and Lila‟s proposals as well as that of an additional firm in making the purchasing decision.

Although the pricing between Chelsea‟s and Lila‟s is equivalent, Chelsea‟s is too young a firm to have a track record, and Deidre is not convinced that Chelsea‟s can handle Triple‟s large account. Given Mr. Hoffman‟s interest, however, Deidre is confused about what recommendation to make. a.

Should Deidre recommend Chelsea‟s firm or offer her true recommendation?

b.

Would it be ethical for Hoffman to change Deidre‟s decision?

c.

What if Wasson had requested bid information so that his daughter could be competitive? Should Deidre supply it?

Should Hoffman direct Deidre to supply it? d.

Can you solve the conflict without offending the director?

e.

Does Hoffman need to be concerned about how his intervention would reflect the “tone at the top”? Could employees misinterpret his actions? a.

Deidre is in a tense spot with which students can identify. They know the correct decision to ANSWER: be made but may be feeling some pressure from a superior to make a different decision.

Deidre should make her recommendation as she has evaluated it and give her justifications. It is a business decision based on concerns about the viability and reliability of a new business. Deidre can also explain that Chelsea's is price-competitive and that she would be willing to consider Chelsea's once more references and a track record are available. b.

Hoffman should not reverse Deidre because it undermines her authority and confidence as the person responsible for purchasing. Also, Hoffman needs to consider the appearance of board presence and pressure being used to force the company to enter into contracts it would otherwise not choose. Troubles in the company at any time will bring a laundry list of these types of transactions that will prove damaging to Hoffman, Triple Plus and Chelsea's. Hoffman is in a position to explain to Wasson that his daughter's firm looks very good to them and that once she establishes a record with some smaller accounts, purchasing would be willing to have her work with them. c.

No bid information should be given to Chelsea's as a favor to Sam Wasson. See below.

d.

Many corporations' ethics policies require directors to disclose conflicts of interest; i.e., situations in which they or a family member benefit through a contractual relationship with the corporation. Wasson may have that obligation here. e.

Hoffman‟s intervention would send a signal to employees about the way the company does business and how contracts are awarded. It may seem like a one-time intervention, but Hoffman would actually be establishing the tone for the company. Employees would learn that who you know is the standard for behavior and not what‟s best for the company. Hoffman‟s intervention would do damage to the ethical atmosphere of the firm.

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Legal Issues Both Sam Wasson and Frank Hoffman are fiduciaries of Triple Plus. The transactions they enter into must be in the best interest of the corporation. Since the purchasing manager's decision has been made, neither should use their authority or influence to change that decision. Further, the disclosure of bid information in advance would be a violation of those fiduciary duties.

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Apply DATE CREATED: 9/7/2017 8:27 PM DATE MODIFIED: 9/7/2017 8:28 PM 180. Discuss the benefits for a company of not downsizing, as in the case of Aaron Feuerstein and Malden Mills.

The benefits are that the employees‟ morale increases because of the positive manner in which ANSWER: they are treated. Also, the company avoids the costs of having to retool and retrain once it does return to normal size or even requires a period of time for growth. Companies that perceive their employees to be assets also seem to reap greater productivity rewards and fewer employee disagreements and union disputes. In short, there may be long-term benefits to be gained from not downsizing and providing for employees. There are also alternatives such as employees agreeing to reduced salaries or fewer work days so that all of them can survive the crunch or crisis.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/7/2017 8:29 PM DATE MODIFIED: 9/7/2017 8:33 PM 181. An engineer for the Shaw Group managed a project that Shaw was doing for the U.S. government. Under the terms of the contract, Shaw stood to earn a $2.2 million bonus on the contract if it kept the reportable injuries and lost-work days below certain levels during the course of the project. The project engineer, who received a bonus if the company met the federal bonus goals, misclassified injuries, failed to report others, and made those who were injured wait to seek medical treatment so that he could meet quarterly injury goals. Discuss the engineer‟s behavior in light of what you learned in Unit 4 on culture.

There was a culture of incentives and pressure on this project. The numbers that were manipulated ANSWER: were not financial numbers, but safety numbers. The end result was the same – the company made additional revenue. The compensation system involved a bonus for an individual who manipulated results in order to earn his bonus. Be careful what you incentivize – you will get the numbers you want, but perhaps not the result you intended.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Workplace Safety KEYWORDS: Bloom's: Analyze DATE CREATED: 9/7/2017 8:33 PM DATE MODIFIED: 9/7/2017 8:35 PM Copyright Cengage Learning. Powered by Cognero.

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182. List all who were affected by the Kodak employee‟s deal on the valuation of Kodak‟s property.

Taxpayers, other businesses, other appraisers, government agencies and their credibility, other ANSWER: property owners for purposes of valuation, professionals in these fields because of damage to their reputations.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Workplace Loyalty KEYWORDS: Bloom's: Analyze DATE CREATED: 9/7/2017 8:36 PM DATE MODIFIED: 9/7/2017 8:38 PM

True / False 1. One of the FCC complaints against T-Mobile involved “bait and switch.” a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Advertising Content KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 1:48 PM DATE MODIFIED: 9/8/2017 1:49 PM 2. The sale of a product with known, but undisclosed dangers, is unethical. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/8/2017 1:49 PM DATE MODIFIED: 9/8/2017 1:50 PM 3. You are in marketing for one of the three U.S. auto manufacturers. You have just received a notice from your seat belt buckle supplier that the buckles shipped to you and used in the cars made between June 94 and September 94 are defective. The defect means that the buckles will come undone if pressure is placed on the belts at any speed over 10 miles per hour. You must encourage your firm to issue a recall.

a. True Copyright Cengage Learning. Powered by Cognero.

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b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Apply DATE CREATED: 9/8/2017 1:51 PM DATE MODIFIED: 9/8/2017 1:52 PM 4. The failure to provide safe packaging is a product liability issue. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Apply DATE CREATED: 9/8/2017 1:52 PM DATE MODIFIED: 9/12/2017 6:50 PM 5. The failure to redesign a product with a safety flaw is a product liability issue. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Apply DATE CREATED: 9/8/2017 1:53 PM DATE MODIFIED: 9/12/2017 6:51 PM 6. Releasing a product with known safety problems for sale to the public is an ethical breach. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

Product Safety Bloom's: Apply 9/8/2017 1:53 PM 9/12/2017 6:51 PM

7. T-Mobile was not required to pay anything to settle the FTC complaints against it; it just promised to change its ads. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Advertising Content KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 1:54 PM DATE MODIFIED: 9/8/2017 1:55 PM 8. In the Pacquiao-Mayweather fight, the fighters both threw fewer punches than in their previous fights. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Advertising Content KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 1:55 PM DATE MODIFIED: 9/8/2017 1:55 PM 9. Fans who paid to watch the Pacquiao-Mayweather fight were not told about Pacquiao‟s injury before the fight. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Advertising Content KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 1:56 PM DATE MODIFIED: 9/8/2017 1:56 PM 10. Tylenol did a rapid recall of its products when consumers reported black flecks were present in the liquid product forms of the company‟s analgesics.

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a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 1:56 PM DATE MODIFIED: 9/8/2017 1:57 PM 11. Tylenol‟s competitors were able to win customers when Tylenol‟s quality control problem was revealed. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 1:58 PM DATE MODIFIED: 9/8/2017 1:58 PM 12. The implied warranty of fitness for a particular purpose is also known as the salesperson warranty. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Understand DATE CREATED: 9/8/2017 1:58 PM DATE MODIFIED: 9/8/2017 1:59 PM 13. Privity of contract is required under tort law for product liability recovery. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

False Product Safety Bloom's: Understand 9/8/2017 1:59 PM 9/8/2017 2:00 PM

14. The implied warranty of merchantability is given in every sale of goods. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Understand DATE CREATED: 9/8/2017 2:00 PM DATE MODIFIED: 9/8/2017 2:00 PM 15. A sample or a model is an express warranty. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Apply DATE CREATED: 9/8/2017 2:01 PM DATE MODIFIED: 9/8/2017 2:01 PM 16. Ralph Nader changed the nature of the liability of manufacturers for their products. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 2:01 PM DATE MODIFIED: 9/8/2017 2:02 PM 17. The failure to provide adequate warnings for products can result in manufacturer liability.

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a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Apply DATE CREATED: 9/8/2017 2:02 PM DATE MODIFIED: 9/8/2017 2:03 PM 18. In the Peanut Corporation of America case, no senior managers were convicted of crimes. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 2:03 PM DATE MODIFIED: 9/8/2017 2:04 PM 19. Wells Fargo corporate headquarters was not aware of the sham accounts problems at the branches until 2016. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Product Sales KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 2:04 PM DATE MODIFIED: 9/8/2017 2:05 PM 20. One way to determine whether there are excess controlled substance prescriptions is by checking the addresses on the prescriptions.

a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

False Product Sales Bloom's: Understand 9/8/2017 2:06 PM 9/8/2017 2:06 PM

21. Employee surveys are a good way to determine what the company culture is like. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Product Sales KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 2:07 PM DATE MODIFIED: 9/8/2017 2:07 PM 22. Incentive programs often undermine culture in organizations. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Product Sales KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 2:07 PM DATE MODIFIED: 9/8/2017 2:08 PM 23. The government was unable to get a guilty verdict on the Silk Road case. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Product Sales KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 2:08 PM DATE MODIFIED: 9/8/2017 2:09 PM 24. Commissions for the sale of mutual funds vary significantly.

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a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Product Sales KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 2:09 PM DATE MODIFIED: 9/8/2017 2:09 PM Multiple Choice 25. Who said, “Why would somebody send something out that would ruin his own company"? a. Ralph Nader b. The owner of Bucky Balls c. Hugh Parnell Sr. d. None of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 2:10 PM DATE MODIFIED: 9/8/2017 2:14 PM 26. What product was Ralph Nader concerned about that led to congressional hearings on product liability and safety? a. The Ford Pinto b. The Chevrolet Corvair c. The GM Malibu d. The Ford Crown Victoria ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 2:12 PM DATE MODIFIED: 9/8/2017 2:20 PM 27. Which of the following was not an issue with the FCC and T-Mobile? a. Ads on unlimited data Copyright Cengage Learning. Powered by Cognero.

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b. Cell phone insurance c. No-contract ads d. Quality of T-Mobile phones ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Advertising Content KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 2:15 PM DATE MODIFIED: 9/8/2017 2:17 PM 28. What was Lee Iacocca‟s objective in designing the Pinto? a. A car less than 2,000 pounds that cost less than $2,000 b. A carefully designed competitor for small imports c. Safety d. None of the above ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 2:17 PM DATE MODIFIED: 9/8/2017 2:19 PM 29. What dictated the placement of the Pinto gas tank? a. Safety b. Style c. Weight d. Government regulations ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 2:20 PM DATE MODIFIED: 9/8/2017 2:21 PM 30. In addition to the crush space issues, what other problems did the Pinto design have? a. None, the only problem was the crush space Copyright Cengage Learning. Powered by Cognero.

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b. The price of the car was too high c. Protruding flanges and bolt heads d. None of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 2:21 PM DATE MODIFIED: 9/8/2017 2:23 PM 31. What was the cost of partially or completely fixing the Pinto gas tank to better withstand rear-end collision impact? a. The costs of the changes ranged from $1.80 to $15.30 b. The costs were over 10% of the cost of the car c. The costs were too great because the car had to be redesigned d. None of the above ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 2:23 PM DATE MODIFIED: 9/8/2017 2:25 PM 32. What did the memo entitled, “Fatalities Associated with Crash Induced Fuel Leakage and Fires” analyze? a. Other auto manufacturers‟ cars and their risks b. The cost-benefit analysis of producing the Pinto as is or changing its design/components c. The history of rear-end auto collisions in the U.S. d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 2:25 PM DATE MODIFIED: 9/8/2017 2:27 PM 33. What value did Ford put on human life in its analysis of its Pinto issue? a. $2 million Copyright Cengage Learning. Powered by Cognero.

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b. $1 million c. $200,000 d. $100,000 ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 2:27 PM DATE MODIFIED: 9/8/2017 2:28 PM 34. What happened to Mrs. Gray when her Pinto was rear-ended by a Galaxie? a. She managed to escape from the car b. Nothing; the gas tank survived the impact c. She was burned severely and died of congestive heart failure d. None of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 2:28 PM DATE MODIFIED: 9/8/2017 2:29 PM 35. Who is Richard Grimshaw? a. Ford engineer who did the cost-benefit analysis on the Pinto b. A teen who was severely burned when the Pinto he was riding in exploded into flames following a rear-end collision

c. CEO of Ford Motor d. Secretary of the Department of Transportation ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 2:29 PM DATE MODIFIED: 9/8/2017 2:31 PM 36. What did the state of Indiana do with regard to Ford‟s Pinto? a. Banned the sale of the Pinto in the state Copyright Cengage Learning. Powered by Cognero.

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b. Indicted Ford for reckless homicide c. Filed suit to recover damages for burn victims d. Fined Ford $200,000 per accident ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 2:31 PM DATE MODIFIED: 9/8/2017 2:32 PM 37. Which car that GM manufactured had issues similar to the Pinto? a. Malibu b. Corvette c. Cadillac d. Both a and b ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 2:32 PM DATE MODIFIED: 9/8/2017 2:33 PM 38. How did Patricia Anderson‟s car get rear-ended? a. The car stalled on the freeway and she was trying to get off the freeway when she was rear-ended b. She was rear-ended by a car going 70 mph as she sat at a stop sign c. She was not rear-ended; her car exploded at a stop sign d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 2:34 PM DATE MODIFIED: 9/8/2017 2:36 PM 39. Who is Edward Ivey? a. The drunk driver in the Malibu accident case Copyright Cengage Learning. Powered by Cognero.

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b. CEO of General Motors c. Engineer who performed a cost-benefit analysis on the Malibu and its gas tank issues d. None of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 2:36 PM DATE MODIFIED: 9/8/2017 2:37 PM 40. What did the GM internal memo estimate the cost of the exploding gas tanks would be to GM? a. $2.40 per car b. The memo did not do that analysis because it did not put a value on human life c. GM had learned from the Ford Pinto case and did not have such a memo d. $200,000 per car ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 2:37 PM DATE MODIFIED: 9/8/2017 2:39 PM 41. What memo did GM have that was different from the Ford Pinto situation? a. There was no GM memo b. A memo from a lawyer advising against releasing any internal company analysis of the Malibu design c. A memo that fired engineers who worked on the Malibu d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 2:39 PM DATE MODIFIED: 9/8/2017 2:40 PM 42. What was the original verdict against GM in the LA Malibu case? a. $1.2 billion Copyright Cengage Learning. Powered by Cognero.

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b. $2 billion c. $4.9 billion d. $5.0 billion ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 2:40 PM DATE MODIFIED: 9/8/2017 2:41 PM 43. What temperature was Jack-in-the-Box cooking its burgers at when the E-Coli illnesses and deaths occurred? a. 140 degrees b. 150 degrees c. 155 degrees d. 160 degrees e. 165 degrees ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 2:42 PM DATE MODIFIED: 9/8/2017 2:43 PM 44. What was the required legal temperature for cooking burgers at the time of the E-Coli illnesses and deaths? a. 140 degrees b. 150 degrees c. 155 degrees d. 160 degrees e. 165 degrees ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 2:43 PM DATE MODIFIED: 9/8/2017 2:44 PM

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45. What temperature were most fast-food chains using at the time of the Jack-in-the-Box E-Coli illnesses and deaths? a. 140 degrees b. 150 degrees c. 155 degrees d. 160 degrees e. 165 degrees ANSWER: e POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 2:44 PM DATE MODIFIED: 9/8/2017 2:45 PM 46. Why was Jack-in-the-Box cooking at a different temperature from other fast food chains? a. Jack-in-the-Box had higher safety standards b. Cost c. Jack-in-the-Box lost the memo d. Both a and b e. Both b and c f. a, b, and c ANSWER: e POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 2:45 PM DATE MODIFIED: 9/8/2017 2:47 PM 47. What was the impact of the E-Coli poisonings on Jack-in-the-Box sales? a. Sales remained the same, unaffected b. Sales dropped 10% c. Sales dropped 20% d. Jack-in-the-Box was closed so there were no sales ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Remember Copyright Cengage Learning. Powered by Cognero.

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DATE CREATED: 9/8/2017 2:47 PM DATE MODIFIED: 9/8/2017 2:49 PM 48. How many Jack-in-the-Box customers were affected by the E-Coli poisonings? a. 100 b. 150 c. 300 d. 600 ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 2:49 PM DATE MODIFIED: 9/8/2017 2:50 PM 49. How much did Jack-in-the-Box have to have set aside for payments in the suits filed against it? a. $20 million b. $50 million c. $100 million d. $200 million ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 2:50 PM DATE MODIFIED: 9/8/2017 2:51 PM 50. What changes did Jack-in-the-Box make after the E-Coli poisonings? a. Changed meat suppliers b. Increased cooking temperature c. Added extra meat inspections d. a and b only e. a, b, and c ANSWER: e POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Safety Copyright Cengage Learning. Powered by Cognero.

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KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 2:51 PM DATE MODIFIED: 9/8/2017 2:53 PM 51. The sale of a product with a known defect or with knowledge of its potentially harmful impact on users: a. Is illegal. b. Is unethical. c. Exposes the manufacturer to strict and negligent product liability. d. Both b and c ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 2:54 PM DATE MODIFIED: 9/8/2017 2:55 PM 52. Jack-in-the-Box, Inc. cooked its hamburgers according to the temperature required by law. Other chains cooked their hamburgers at a higher temperature and for longer. Jack-in-the-Box: a. Made a decision that resulted in liability and the moral responsibility for deaths and injuries of its customers.

b. Was in compliance with the law and ethical in its conduct. c. Has no liability because it was in compliance with the law. d. Both b and c e. None of the above ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 2:55 PM DATE MODIFIED: 9/8/2017 2:57 PM 53. What was Coke‟s strategy for expanding fountain sales? a. Sign up new fast-food franchises b. Move Frozen Coke into fast-food franchises c. Eliminate Frozen Coke from convenience stores d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False Copyright Cengage Learning. Powered by Cognero.

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TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

Product Sales Bloom's: Remember 9/8/2017 2:59 PM 9/8/2017 3:01 PM

54. Why did Burger King want a test market? a. The product was new b. Its marketing campaigns recently had been disasters c. It did not trust Coke d. Both a and b e. a, b and c ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Sales KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 3:04 PM DATE MODIFIED: 9/8/2017 3:06 PM 55. What area was picked for the test market? a. Richmond, Virginia b. Tallahassee, Florida c. Atlanta, Georgia d. Orlando, Florida ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Sales KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 3:06 PM DATE MODIFIED: 9/8/2017 3:08 PM 56. How did Coke get better numbers in the test market? a. It seasonalized the numbers b. It altered the numbers c. A marketing consultant used the Boys and Girls Clubs to get customers into Burger King to buy Frozen Coke value meals d. Its own employees bought Frozen Coke value meals

ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

False Product Sales Bloom's: Remember 9/8/2017 3:08 PM 9/8/2017 3:09 PM

57. Who is Matthew Whitley? a. The account manager for Burger King b. The Coke retail vice president c. A Coke employee who questioned the invoices from the marketing consultant d. CEO of Coke ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Sales KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 3:09 PM DATE MODIFIED: 9/8/2017 3:11 PM 58. How did Coke managers react when an employee brought the Boys and Girls Club issue to their attention? a. It went to Burger King and apologized b. It fired the employee c. It asked the employee to conduct a complete investigation d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Sales KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 3:11 PM DATE MODIFIED: 9/8/2017 3:12 PM 59. How much did the Boys and Girls Club plan increase sales in Richmond, Virginia? a. 2% b. 6% c. 10% d. 15% ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

False Product Sales Bloom's: Remember 9/8/2017 3:12 PM 9/8/2017 3:13 PM

60. Which of the following resulted from the Burger King Frozen Coke issues? a. Coke had an earnings restatement b. The FBI investigated Coke c. The SEC investigated Coke d. Both b and c e. All of the above ANSWER: e POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Sales KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 3:14 PM DATE MODIFIED: 9/8/2017 3:16 PM 61. What did Coke do to the employees involved in the Burger King/Frozen Coke activities? a. They were terminated or resigned b. They are still with the company, but were demoted c. They are still with the company, but lost their bonuses d. None of the above ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Sales KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 3:16 PM DATE MODIFIED: 9/12/2017 6:52 PM 62. How much did Coke pay to the employee who filed suit alleging wrongful termination? a. $540,000: $100,000 in cash, $140,000 in benefits including health insurance, and $300,000 in lawyer‟s fees b. $9,000,000 plus $300,000 lawyer‟s fees c. $37,000,000 plus lawyer‟s fees d. None of the above ANSWER: a POINTS: 1 DIFFICULTY: Moderate Copyright Cengage Learning. Powered by Cognero.

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QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Sales KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 3:17 PM DATE MODIFIED: 9/8/2017 3:19 PM 63. Coca-Cola‟s test marketing of Frozen Coke: a. Took unfair advantage of Burger King. b. Involved stating things known not to be true. c. Gave a false impression. d. All of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Sales KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 3:19 PM DATE MODIFIED: 9/8/2017 3:21 PM 64. Which of the following is not an example of an express warranty? a. “This toothpaste makes teeth the whitest around.” b. “This water heater holds 50 gallons.” c. “Preshrunk jeans” d. “This jacket is lined.”

ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Apply DATE CREATED: 9/8/2017 3:21 PM DATE MODIFIED: 9/8/2017 3:23 PM 65. Sal was at home going through his normal workout when he bent his barbell bar. Sal is a professional bodybuilder. Sal went to his local sporting-goods store and was approached by a clerk wishing to assist him. Sal told the clerk about his problem and the clerk asked Sal to wait while an appropriate bar was located. The clerk presented Sal with a bar that the clerk said "is just what you need for your type of weight requirements." Sal paid for the bar and was returning home when he stopped at a health food restaurant. The drink that he ordered had an unusual taste, but the food establishment refused a refund. Sal became ill from the drink, which, as it turned out, had a toxic substance in it. Sal had to be hospitalized. When Sal was able to work out again, he attached the weights to the new bar and lifted the bar under his chin. The bar snapped in the middle and severely cut Sal. Sal is angry about the drink and the barbell.

With regard to the barbell bar: a. Sal is not entitled to any recovery for his injury or the broken second barbell because he did not buy all of the Copyright Cengage Learning. Powered by Cognero.

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components, including the weights, from the same store. b. Sal is not entitled to any recovery for his injury or the broken second barbell because he is knowledgeable himself in weightlifting and should have known which barbell to use. c. Sal is entitled to recovery because there has been a breach of an express warranty.

d. Sal is entitled to recovery because of the warranty of fitness for a particular purpose.

ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Apply DATE CREATED: 9/8/2017 3:23 PM DATE MODIFIED: 9/8/2017 3:25 PM 66. Which of the following would not be a basis for a negligence product liability suit? a. A recall by Toyota of certain of its cars for problems with the floor mat interfering with the driver‟s ability to apply the brakes quickly

b. A highly explosive gas tank installed in a car with the manufacturer‟s knowledge of its dangers c. The continued sale of sunglasses to baseball teams knowing that the sunglasses were not shatterproof and had caused players eye injuries d. All of these would be a basis for a negligence product liability suit

ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Apply DATE CREATED: 9/8/2017 3:26 PM DATE MODIFIED: 9/8/2017 3:27 PM 67. At the heart of the Marsh McLennan mess was: a. Price-fixing. b. Insider trading. c. Conflicts of interest. d. Both a and c ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Sales KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 3:28 PM DATE MODIFIED: 9/8/2017 3:29 PM Copyright Cengage Learning. Powered by Cognero.

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68. “Conscious parallelism” is: a. The prices of competitors running in tandem with changes. b. Illegal per se. c. An issue in the vertical distribution of goods. d. None of the above ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Sales KEYWORDS: Bloom's: Understand DATE CREATED: 9/8/2017 3:30 PM DATE MODIFIED: 9/8/2017 3:31 PM 69. What was not part of the alleged deception in the Pacquiao-Mayweather fight? a. Failure to disclose Pacquiao‟s injury b. Few punches thrown and landed than in previous fights c. Use of performance-enhancing drugs by the fighters d. All of the above were part of the deception ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Advertising Content KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 3:32 PM DATE MODIFIED: 9/8/2017 3:34 PM 70. How was Peanut Corporation able to convince customers to accept product that was testing positive for salmonella? a. Fictitious certifications b. Assurances that Mr. Parnell was dumbfounded about the positive tests c. That tests were completed every day at Peanut Corporation d. All of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Understand DATE CREATED: 9/8/2017 3:34 PM DATE MODIFIED: 9/8/2017 3:36 PM 71. To whom was President Reagan referring when he said, “You have lived up to the very highest ideals of corporate Copyright Cengage Learning. Powered by Cognero.

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responsibility and grace under pressure”? a. Stewart Parnell

b. Ralph Nader c. Jim Burke d. Lee Iacocca ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 3:37 PM DATE MODIFIED: 9/8/2017 3:39 PM 72. Why did Audi enter into a settlement with 8 Mile and Eminem? a. Audi had copied the color scheme on one of Eminem‟s CD covers b. Audi had run an ad with the look and feel of Chrysler‟s “Lose Yourself” ad c. Audi had used Eminem‟s photo in one of its ads d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Advertising Content KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 3:39 PM DATE MODIFIED: 9/8/2017 3:41 PM 73. The criminal charges involving Peanut Corporation of America relating to Salmonella: a. Involve both insiders and an outside food broker. b. Are likely to be dismissed because of lack of proof. c. Involve criminal fraud. d. Both a and c ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 3:42 PM DATE MODIFIED: 9/8/2017 3:43 PM 74. Which of the following was not in the e-mails found in Peanut Corporation of America‟s internal e-mail system?

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a. “We at least need to turn the raw peanuts on the floor into money.” b. “Clean „em up and ship them.” c. “I can sign without running the tests.” d. “This time lapse is costing us $$$$.”

ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 3:44 PM DATE MODIFIED: 9/8/2017 3:46 PM 75. What problems did Tylenol experience between 2010 and 2012? a. A phantom recall b. Shoddy manufacturing practices c. A drop of 55% in Tylenol sales d. All of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 3:46 PM DATE MODIFIED: 9/8/2017 3:47 PM 76. How did McNeil resolve its problem that occurred between 2010 and 2012? a. They are not resolved and litigation is ongoing b. It entered into a consent decree with the FDA c. It entered a guilty plea to violations of manufacturing standards d. Both b and c ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 3:48 PM DATE MODIFIED: 9/8/2017 3:49 PM 77. Buckyballs have been: Copyright Cengage Learning. Powered by Cognero.

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a. Recalled and will be required to be reissued with a new warning. b. Permanently recalled. c. Made safer through new sizes and shapes. d. Moved to off-shore production.

ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 3:50 PM DATE MODIFIED: 9/8/2017 3:51 PM 78. What theories could the parents of a child injured by ingesting Buckyballs use for recovery of damages from the company? a. Strict tort liability

b. Implied warranty of fitness for a particular purpose c. Express warranty d. None of the above because there is assumption of risk with children‟s toys ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 3:51 PM DATE MODIFIED: 9/8/2017 3:52 PM 79. Why does the DEA want to revoke the licenses of several drug store chains to issue controlled substances medications? a. There are too many pharmacies in Florida

b. The chains failed to establish adequate internal controls for dispensation of controlled substances c. The chains failed to submit proper paperwork for licensing d. Both b and c ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Sales KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 3:53 PM DATE MODIFIED: 9/8/2017 3:54 PM Copyright Cengage Learning. Powered by Cognero.

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80. Which company responded to customer complaints and fixed its products before a regulatory agency became involved? a. Chrysler

b. Ford c. GM d. Procter & Gamble ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 3:55 PM DATE MODIFIED: 9/8/2017 3:57 PM 81. Which product could not be sold even with adequate warnings? a. The Ford Pinto b. Buckyballs c. Tide Pods d. Workout powders ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 3:57 PM DATE MODIFIED: 9/8/2017 3:59 PM 82. What is the FDA‟s concern about workout powders? a. The amount of caffeine in them b. Unknown ingredients in the powders c. Use of the powders with alcohol d. All of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 3:59 PM DATE MODIFIED: 9/8/2017 4:18 PM Copyright Cengage Learning. Powered by Cognero.

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83. What ethical category is involved in steering wealth management customers into in-house investment products? a. Taking unfair advantage b. Saying things that are not true c. Conflict of Interest d. Giving false impressions about fund performance ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Sales KEYWORDS: Bloom's: Apply DATE CREATED: 9/8/2017 4:01 PM DATE MODIFIED: 9/8/2017 4:04 PM 84. Rachel Murphy works for a major time-share resort company. Rachel has been very successful in selling time-share properties to customers. Rachel has noticed that her fellow sales representatives have a name for the last five days of the month, “The Say-Any-Friggin‟-Thing Days”. Sales reps are given bonuses for the number of customers they bring in each month. At the end of the month, sales reps are promising customers that they can get out of their contract at any time (they cannot) and that the company will sell the time-share property for them (the company does not). Which of the following cases was similar to what Rachel is experiencing? a. CVS Pharmacies and oxycodone sales

b. Peanut Corporation of America c. Wells Fargo d. Tide Pod sales in Europe ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Sales KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/8/2017 4:04 PM DATE MODIFIED: 9/12/2017 6:53 PM 85. When did Wells Fargo corporate office receive the first report of sham accounts being created? a. 2001 b. 2005 c. 2010 d. 2012 ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Sales KEYWORDS: Bloom's: Remember Copyright Cengage Learning. Powered by Cognero.

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DATE CREATED: 9/8/2017 4:06 PM DATE MODIFIED: 9/8/2017 4:08 PM 86. Management mantras: a. Can be misinterpreted by employees. b. Are effective in maintaining an ethical culture. c. Are an essential part of a good ethical infrastructure. d. All of the above ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Sales KEYWORDS: Bloom's: Understand DATE CREATED: 9/8/2017 4:09 PM DATE MODIFIED: 9/8/2017 4:11 PM 87. How many employees did Wells Fargo have to terminate as a result of its new accounts and services compensation program? a. 23

b. 670 c. 1,260 d. 5,300 ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Sales KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 4:12 PM DATE MODIFIED: 9/8/2017 4:13 PM 88. “No exceptions. No excuses.” That is Franco‟s Pizza‟s motto. Every customer gets a Franco‟s pizza on time and as it was ordered – no exceptions, no excuses. Ronnie delivers Franco‟s pizza and is known in the area around Franco‟s for his reckless driving. “I have to get the pizza to the customers on time.” If the pizza is not on time, Ronnie has to pay for it out of his tip money. When Franco is told about Ronnie‟s driving by the owner of a pet store nearby he responds, “Sorry.

That is not who Franco‟s is. We work hard, but we would never put others at risk.” Which of the following is correct about Franco‟s? a. Franco is not responsible for Ronnie‟s driving because he never instructed him to do that.

b. Franco‟s culture is a good one for performance and customer satisfaction. c. Franco‟s mantra has countermanded its culture. d. All of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate Copyright Cengage Learning. Powered by Cognero.

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QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Sales KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/8/2017 4:13 PM DATE MODIFIED: 9/8/2017 4:15 PM 89. Doreen and Al are sales reps for competing product lines of school desks in the same state. They run into each other at the Expo Hall for a state convention of high school principals and other education administrators. During a slow period in the Expo Hall, Doreen and Al talk about their upcoming sales pitches a various schools. They discover that they are both pitching to the same schools. Al proposes the following to Doreen, “Why don‟t you take Winterbury Elementary and I will take Red Stone Middle School? Just submit a higher bid on Red Stone and I will submit a high bid on Winterbury.

That way we both get one contract each.” Which of the following statements is correct? a. As long as they both bid, there is no problem with their agreement.

b. As long as they do not mention their prices to each other, there is no problem with their agreement. c. This arrangement is a violation of antitrust laws. d. Throwing a bid is not an antitrust violation; it is their decision.

ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Sales KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/8/2017 4:15 PM DATE MODIFIED: 9/8/2017 4:17 PM 90. On-Wheels is a meal delivery service. On-Wheels advertises as follows: I. II. III. IV.

Always hot Always on time Just like you remember at home You will be healthier

Which of the above would be express warranties? a. I, II

b. I, II, IV c. II only d. I, II, III, IV ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 4:18 PM DATE MODIFIED: 9/8/2017 4:23 PM Copyright Cengage Learning. Powered by Cognero.

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91. What was Ulbricht‟s defense in the Silk Road criminal case? a. He was unaware of how his site was being used b. He said he was not the founder or owner of Silk Road c. He placed others in charge of the site d. a and c only ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Product Sales KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 4:24 PM DATE MODIFIED: 9/8/2017 4:25 PM Essay 92. Stanford University medical researchers conducted a study on the correlation between the use of fertility drugs and ovarian cancer. Their study, published in the American Journal of Epidemiology, concludes that the use of the fertility drugs, Pergonal and Serophene, may increase the risk of ovarian cancer by three times. The lead author of the studies, Professor Alice Whittemore, stated, "Our finding in regard to fertility drugs is by no means certain. It is based on very small numbers and is really very tenuous."

FDA Commissioner David Kessler would like the infertility drug manufacturers to disclose the study findings and offer a warning on the drug packages. He notes, "Even though the epidemiology study is still preliminary, women have a right to know what is known. We're not looking to make more of this than there is."

If you were a manufacturer of one of the drugs, would you voluntarily disclose the study information?

Given the history of asbestos, the breast implants, and other products covered in the text, it is not ANSWER: difficult to spot a similar pattern here. Although the law may not require disclosure, the ethical tests of balance and "how would you want to be treated?" point manufacturers in the direction of disclosure. Full market information requires that buyers make choices based on full disclosure.

Without the study information, making those decisions becomes one-sided. The drug firm has more information that is not available to their purchasers. Further, the history of the cases mentioned demonstrates that firms are always better off financially if they make the disclosure and allow the market to function than if they withhold the information and must later defend product liability suits.

The disclosure should be made not only from an ethical perspective but also from a financial and litigation perspective.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/8/2017 4:26 PM DATE MODIFIED: 9/8/2017 4:27 PM 93. Refer back to Unit Four and discuss why Tylenol (McNeil) behaved so differently in the quality control situation as opposed to the poisoning situation.

Students should focus on the culture. In the quality control issue, those in the company were trying ANSWER: to avoid a formal recall and were working to preserve the company‟s high standing without any public disclosure. They believed that they could manage the situation. The leaders may not have Copyright Cengage Learning. Powered by Cognero.

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tolerated dissent and become isolated. The employees may have been driven by the numbers and poor decision making resulted from not looking at the issue from a 360-degree perspective.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Apply DATE CREATED: 9/8/2017 4:28 PM DATE MODIFIED: 9/8/2017 4:29 PM 94. Compare and contrast the cases of Peanut Corporation of America and the Tylenol Quality Control problem.

Similarities: ANSWER: In both they were trying to manage a problem in a way that minimized cost and damage to reputation.

Neither company acted decisively on the side of safety.

Both companies suffered tremendous reputation loss.

Both companies were investigated – Tylenol by Congress.

Both continued to sell and/or produce the product after notices of issues had been received.

Differences: Peanut Corporation went bankrupt and Tylenol will survive.

Peanut Corp had one decision maker and Tylenol had a team of executives.

Peanut Corp had one product and stood to lose more when it lost its reputation.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Analyze DATE CREATED: 9/8/2017 4:29 PM DATE MODIFIED: 9/12/2017 6:55 PM 95. Explain how shunning played a role in assuring product quality before there was product liability?

Because buyers knew their sellers, if anything went wrong with the goods sold, the buyers were ANSWER: able to return to the seller and ask to be made whole. If the seller did not address the issue, others would hear about the seller‟s conduct and the result would be others in the community refusing to do business with the seller. There were no statutes, laws, or regulatory agencies to handle poor product quality. The issue was handled as an ethical issue and the market then took care of the seller with defective goods – the public no longer purchased from that seller. There was an ethical foundation of an expectation that you treat customers as you would want to be treated.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Analyze DATE CREATED: 9/8/2017 4:32 PM DATE MODIFIED: 9/12/2017 6:55 PM Copyright Cengage Learning. Powered by Cognero.

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96. Using what you learned in Units 1 and 2, explain why Stewart Parnell was willing to send out product that contained salmonella.

ANSWER:

He was framing the issue in such a way that he was saving his business and was not thinking through the possible consequences of his decision, including the loss of human life. He framed the issue as saving his business. He also was responding to the financial pressure that he was feeling at the time. He also had a diagnosis bias that the likelihood of harm was small. He underestimated the risk and overestimated how it would all turn out.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Analyze DATE CREATED: 9/8/2017 4:34 PM DATE MODIFIED: 9/8/2017 4:35 PM 97. Discuss the similarities between the Ford Pinto case and the GM Malibu case.

ANSWER:  They both involved defective product designs  The design issues related to the location of the gas tank  Both had engineers who expressed concerns about the design  The concerns of the engineers were not addressed and the cars were simply sold without    

fixes There were substantial injuries and deaths before there was a recall There were substantial recall costs The value of human life was discounted in both The companies were experiencing financial pressures at the time of the production of the cars

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Analyze DATE CREATED: 9/8/2017 4:35 PM DATE MODIFIED: 9/8/2017 4:36 PM 98. Discuss the similarities between the GM Malibu Case and the GM engine switch case.

ANSWER:  There were defective design issues  Those within the company were aware of the problems with the cars  The information and warnings from various sources about the design problems were not    

addressed Lawyers tried to keep the information under wraps and not provide access to the engineers who knew about the problems There were deaths and injuries because of the defects There were substantial recall costs There were cultural issues within GM that existed through the time period of both defects that prevented problem-solving and admissions that there were issues that had to be addressed

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POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Analyze DATE CREATED: 9/8/2017 4:37 PM DATE MODIFIED: 9/8/2017 4:38 PM 99. What cases should Chrysler have studied before making its initial decision not to recall? Why? The Ford Pinto, The GM Malibu, The GM Switch case. All three cases illustrate that regardless of ANSWER: what you believe about the design or what is causing the problem, you have to get to the heart of the issue before more customers are harmed. Stonewalling and stalling make the problem worse and then there are the issues with the defect as well as the loss of trust. Chrysler could have learned that there is more liability from digging in than there is from admitting a mistake and just moving on.

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Product Safety KEYWORDS: Bloom's: Create DATE CREATED: 9/8/2017 4:38 PM DATE MODIFIED: 9/12/2017 6:56 PM 100. If you worked for a company that had a chain of pharmacies, what processes and procedures would you put into place to be sure that controlled medication prescriptions were not being filled in excess of monthly allowances?  Do audits of the numbers of prescriptions filled for controlled substances ANSWER:  Check the number of prescriptions from the same addresses  Review the prescription documentation and sources  Check your security cameras to see who is filling the prescriptions  Check the number of prescriptions per person  Do onsite visits to pharmacies to observe those getting and those filling the prescriptions  Train pharmacists and pharmacy personnel on what to look for to spot prescription abuses  Set up a reporting program so that pharmacy employees can report issues anonymously

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Product Sales KEYWORDS: Bloom's: Create DATE CREATED: 9/8/2017 4:40 PM DATE MODIFIED: 9/8/2017 4:41 PM

True / False 1. A covenant not to compete cannot be enforced unless it is limited to one year.

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a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Covenants Not to Compete KEYWORDS: Bloom's: Understand DATE CREATED: 9/8/2017 5:05 PM DATE MODIFIED: 9/12/2017 6:57 PM 2. A covenant not to compete cannot be enforced unless it is restricted to one city. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Covenants Not to Compete KEYWORDS: Bloom's: Understand DATE CREATED: 9/8/2017 5:45 PM DATE MODIFIED: 9/8/2017 5:45 PM 3. Confidentiality agreements are different from covenants not to compete. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Covenants Not to Compete KEYWORDS: Bloom's: Understand DATE CREATED: 9/8/2017 5:46 PM DATE MODIFIED: 9/8/2017 5:48 PM 4. The doctrine of inevitable disclosure requires the same elements as a covenant not to compete to be enforceable. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

False Covenants Not to Compete Bloom's: Understand 9/8/2017 5:48 PM 9/8/2017 5:49 PM

5. Tortious interference is not available as a protection unless there is an underlying noncompete agreement. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Covenants Not to Compete KEYWORDS: Bloom's: Understand DATE CREATED: 9/8/2017 5:49 PM DATE MODIFIED: 9/8/2017 5:50 PM 6. There were several employees at Boeing who were aware of the documents brought in from Lockheed. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Covenants Not to Compete KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 5:50 PM DATE MODIFIED: 9/8/2017 5:51 PM 7. Hiring an employee from a competitor firm who has brought with her proprietary information is ethical so long as the employee has not breached an employment contract with that competitor.

a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Covenants Not to Compete KEYWORDS: Bloom's: Understand DATE CREATED: 9/8/2017 5:52 PM DATE MODIFIED: 9/8/2017 5:52 PM Copyright Cengage Learning. Powered by Cognero.

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8. Leaking proprietary information to the media is not an ethical breach. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Covenants Not to Compete KEYWORDS: Bloom's: Understand DATE CREATED: 9/8/2017 5:53 PM DATE MODIFIED: 9/8/2017 5:53 PM 9. Taking information from a confidential file accidentally left on your desk is not unethical. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Covenants Not to Compete KEYWORDS: Bloom's: Understand DATE CREATED: 9/8/2017 5:54 PM DATE MODIFIED: 9/8/2017 5:54 PM 10. In Moral Sentitments Adam Smith wrote that we judge others by our own feelings and views. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: All's Fair, or Is It? KEYWORDS: Bloom's: Understand DATE CREATED: 9/8/2017 5:55 PM DATE MODIFIED: 9/8/2017 5:56 PM 11. It is unethical to introduce a product with deceptively similar packaging to that of a major competitor. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

False Intellectual Property and Ethics Bloom's: Understand 9/8/2017 5:56 PM 9/8/2017 5:57 PM

12. A whistleblower at Trinity notified the federal government of the company‟s design change in the guard rails. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: All's Fair, or Is It? KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 5:58 PM DATE MODIFIED: 9/8/2017 5:59 PM 13. Trinity had no competitors in the guardrail market. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: All's Fair, or Is It? KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 5:59 PM DATE MODIFIED: 9/8/2017 6:00 PM 14. If you are fired from your job, you can use any information you gained while employed to help your next employer. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Covenants Not to Compete KEYWORDS: Bloom's: Understand DATE CREATED: 9/8/2017 6:01 PM DATE MODIFIED: 9/8/2017 6:01 PM 15. It is a violation of antitrust laws for a manufacturer to terminate a retailer for charging prices that are too low.

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a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: All's Fair, or Is It? KEYWORDS: Bloom's: Understand DATE CREATED: 9/8/2017 6:02 PM DATE MODIFIED: 9/12/2017 6:58 PM 16. Powdr Corporation lost its lease of the Park City slopes. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Easy QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: All's Fair, or Is It? KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 6:03 PM DATE MODIFIED: 9/12/2017 6:58 PM 17. Apple worked with publishers to control electronic book prices. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: All's Fair, or Is It? KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 6:03 PM DATE MODIFIED: 9/8/2017 6:04 PM 18. Copyright owners have the exclusive rights to control use of the copyrighted material. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

False Intellectual Property and Ethics Bloom's: Understand 9/8/2017 6:04 PM 9/12/2017 6:58 PM

19. Copyright owners cannot control the use of copyrighted materials by charities. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Intellectual Property and Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 9/8/2017 6:06 PM DATE MODIFIED: 9/12/2017 6:59 PM 20. The use of patented or copyrighted materials without permission entitled the owner to royalties for use. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Intellectual Property and Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 9/8/2017 6:06 PM DATE MODIFIED: 9/12/2017 6:59 PM 21. Competitors cannot agree on prices for their products without violating the law. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: All's Fair, or Is It? KEYWORDS: Bloom's: Understand DATE CREATED: 9/8/2017 6:07 PM DATE MODIFIED: 9/12/2017 6:59 PM 22. Price-fixing is a violation of federal law.

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a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: All's Fair, or Is It? KEYWORDS: Bloom's: Understand DATE CREATED: 9/8/2017 6:08 PM DATE MODIFIED: 9/8/2017 6:08 PM 23. Only those who actually made the agreements to fix prices are liable under the criminal law. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: All's Fair, or Is It? KEYWORDS: Bloom's: Understand DATE CREATED: 9/8/2017 6:08 PM DATE MODIFIED: 9/12/2017 7:00 PM 24. Apple was required to have a monitor in its company as part of the findings in an antitrust case. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: All's Fair, or Is It? KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 6:09 PM DATE MODIFIED: 9/12/2017 7:00 PM 25. Martha Stewart‟s first franchising deal was with JCPenney. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

False All's Fair, or Is It? Bloom's: Remember 9/8/2017 6:10 PM 9/12/2017 7:01 PM

26. Louis Vuitton has lost most of its trademark battles. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Intellectual Property and Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 9/8/2017 6:11 PM DATE MODIFIED: 9/8/2017 6:11 PM 27. Mattel eventually won the Bratz property litigation. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: All's Fair, or Is It? KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 6:12 PM DATE MODIFIED: 9/8/2017 6:13 PM 28. Boeing was banned from being considered for federal contracts as a result of its use of Lockheed documents. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Covenants Not to Compete KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 6:13 PM DATE MODIFIED: 9/8/2017 6:14 PM 29. Hilton hired Starwood employees who brought Starwood plans and designs with them to Hilton.

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a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Covenants Not to Compete KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 6:15 PM DATE MODIFIED: 9/8/2017 6:16 PM 30. The NCAA won the right to use college athletes‟ images in ads. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Intellectual Property and Ethics KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 6:16 PM DATE MODIFIED: 9/12/2017 7:01 PM 31. Hilton was under intense financial pressure at the time it hired former Starwood employees. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Covenants Not to Compete KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 6:18 PM DATE MODIFIED: 9/8/2017 6:18 PM 32. Hilton‟s legal counsel turned over the Starwood documents that were discovered in Hilton‟s files. a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

False Covenants Not to Compete Bloom's: Remember 9/8/2017 6:19 PM 9/8/2017 6:19 PM

33. There were few similarities between the Starwood‟s W hotels and Hilton‟s Denizen. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Covenants Not to Compete KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 6:19 PM DATE MODIFIED: 9/8/2017 6:20 PM 34. Hilton hired only two former Starwood employees. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Covenants Not to Compete KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 6:20 PM DATE MODIFIED: 9/8/2017 6:20 PM 35. Taking your current employer‟s supply chain management system to a prospective employer is not a breach of trust. a. True b. False ANSWER: False POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Covenants Not to Compete KEYWORDS: Bloom's: Understand DATE CREATED: 9/8/2017 6:21 PM DATE MODIFIED: 9/12/2017 7:01 PM 36. Taking your current employer‟s customer list to a prospective employer is a breach of trust.

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a. True b. False ANSWER: True POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: True / False HAS VARIABLES: False TOPICS: Covenants Not to Compete KEYWORDS: Bloom's: Understand DATE CREATED: 9/8/2017 6:22 PM DATE MODIFIED: 9/12/2017 7:02 PM Multiple Choice 37. Whose behavior was described by a judge as “adolescent behavior in the worst form”? a. Martha Stewart b. Jeff Bezos c. JCPenney d. Macy‟s ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: All's Fair, or Is It? KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 6:23 PM DATE MODIFIED: 9/8/2017 6:25 PM 38. Which of the following require(s) a covenant not to compete to be enforceable? a. A nondisclosure agreement b. Doctrine of inevitable disclosure c. Tortious interference d. None of the above require a covenant not to compete to be enforceable ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Covenants Not to Compete KEYWORDS: Bloom's: Understand DATE CREATED: 9/8/2017 6:26 PM DATE MODIFIED: 9/8/2017 6:28 PM 39. Granny‟s Cookies is a bakery located in a small town in Nebraska. However, Granny‟s has a strong Internet presence and ships cookies throughout the United States. Granny‟s recipes for its cookies are a trade secret. The employees at Copyright Cengage Learning. Powered by Cognero.

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the Nebraska store who need to know the recipes to bake the cookies are aware of the recipe. The employees have signed a nondisclosure agreement. Jim Bradford, one of Granny‟s bakers, just took a job with Chippers, a cookie company located in San Diego, California. Chippers also has a strong Internet presence. Which of the following is a correct statement? a. Granny‟s can probably not stop Jim from taking the job.

b. Granny‟s probably can stop Jim from taking its recipes to Chippers. c. Granny‟s has no remedy because the recipes are in Jim‟s head and he does not have to take any records with him to have the recipes. d. None of the above

ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Covenants Not to Compete KEYWORDS: Bloom's: Apply DATE CREATED: 9/8/2017 6:29 PM DATE MODIFIED: 9/12/2017 7:02 PM 40. Granny‟s Cookies is a bakery located in a small town in Nebraska. However, Granny‟s has a strong Internet presence and ships cookies throughout the United States. Granny‟s recipes for its cookies are a trade secret. The employees at the Nebraska store who need to know the recipes to bake the cookies are aware of the recipe. The employees have signed a nondisclosure agreement. Jim Bradford, on of Granny‟s bakers, just took a job with Chippers, a cookie company located in San Diego, California. Chippers also has a strong Internet presence. Suppose that before he left Jim went into Granny‟s mailing list, which had been compiled from orders filled for people around the country. Jim changed the e-mail and mailing addresses so that the list was no longer accurate. Jim did not keep a copy of the original list for himself.

Which of the following is true? a. Granny‟s would have a basis for recovery against Jim.

b. Without a covenant not to compete, there is little that Granny‟s can do to stop Jim. c. Granny‟s would have an action against Chippers. d. Both b and c ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Covenants Not to Compete KEYWORDS: Bloom's: Apply DATE CREATED: 9/8/2017 6:31 PM DATE MODIFIED: 9/12/2017 7:03 PM 41. What was the reason for Boeing employees being willing to use the Lockheed documents brought to them when they hired a former Lockheed employee? a. Boeing was under pressure because of missing strategic opportunities

b. There was little risk because the Lockheed employee did not have a noncompete clause c. There was no competition between Lockheed and Boeing d. None of the above ANSWER: a POINTS: 1 Copyright Cengage Learning. Powered by Cognero.

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DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Covenants Not to Compete KEYWORDS: Bloom's: Analyze DATE CREATED: 9/8/2017 6:34 PM DATE MODIFIED: 9/8/2017 6:36 PM 42. The suit by Macy‟s against JCPenney involved: a. Martha Stewart‟s covenant not to compete. b. JCPenney signing Martha Stewart for endorsements. c. JCPenney copying its products. d. Both b and c ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: All's Fair, or Is It? KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 7:01 PM DATE MODIFIED: 9/8/2017 7:09 PM 43. Powdr Corporation lost its lease for the actual ski slopes in Park City because of its failure to give notice of renewal, but had negotiating power with the landlord because: a. The owner of the slopes was experiencing a cash deficit.

b. The owner of the slopes felt that it should have asked Powdr about the renewal. c. Powdr owns the parking lots and the land at the foot of the slopes. d. Both a and c ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: All's Fair, or Is It? KEYWORDS: Bloom's: Understand DATE CREATED: 9/8/2017 7:04 PM DATE MODIFIED: 9/8/2017 7:06 PM 44. Why did the Powdr CEO say he agreed to sell Powdr‟s land to the landlord? a. He did not want a long legal battle to change the law. b. He felt Powdr owed a duty to the communities and employee stability. c. He got a good deal. d. Both a and b ANSWER: d POINTS: 1 Copyright Cengage Learning. Powered by Cognero.

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DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: All's Fair, or Is It? KEYWORDS: Bloom's: Understand DATE CREATED: 9/8/2017 7:06 PM DATE MODIFIED: 9/8/2017 7:08 PM 45. What changes did Leegin want to make in selling its Brighton product lines? a. Be sure that customers had an experience different from Sam‟s or Costco b. It wanted to charge maximum prices c. There were too many knock-off Brighton products d. Both a and c ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: All's Fair, or Is It? KEYWORDS: Bloom's: Understand DATE CREATED: 9/8/2017 7:27 PM DATE MODIFIED: 9/8/2017 7:30 PM 46. Selling the same goods at different prices depending on location: a. Is a violation of the Robinson-Patman Act. b. Is legal if the pricing is designed to meet the competition. c. Was how Staples was charged with antitrust violations. d. Both a and c ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: All's Fair, or Is It? KEYWORDS: Bloom's: Understand DATE CREATED: 9/8/2017 7:31 PM DATE MODIFIED: 9/8/2017 7:32 PM 47. Which of the following songs is no longer copyrighted? a. “God Bless America” b. “Happy Birthday to You” c. “Macarena” d. All of the above are no longer copyrighted ANSWER: b POINTS: 1 Copyright Cengage Learning. Powered by Cognero.

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DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Intellectual Property and Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 9/8/2017 7:33 PM DATE MODIFIED: 9/8/2017 7:36 PM 48. What did the Wall Street Journal recommend Louis Vuitton do about the use of its products and name in films such as The Hangover? a. Litigate in order to stop the use

b. License it to certain studios in Hollywood c. Trademark the line from the movie and use it in their ads d. None of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Intellectual Property and Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 9/8/2017 7:36 PM DATE MODIFIED: 9/8/2017 7:37 PM 49. What indicated that there might have been some intent on the part of Costco to capitalize on the Tiffany name? a. They used Tiffany-colored boxes for the rings b. They only offered the rings in some stores, and not online c. They had a Tiffany ring on display for comparison purposes d. Both a and c ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Intellectual Property and Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 9/8/2017 7:38 PM DATE MODIFIED: 9/8/2017 7:39 PM 50. Why can‟t advertisers for the NCAA games use images of the college players? a. Because the players would lose their amateur status if they appeared in commercials b. Because the NCAA owns the rights and had never allowed their images to be used c. Because the players refused to give those rights to the NCAA d. Both b and c ANSWER: c POINTS: 1 Copyright Cengage Learning. Powered by Cognero.

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DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Intellectual Property and Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 9/8/2017 7:42 PM DATE MODIFIED: 9/12/2017 8:33 PM 51. What did the publishers who met with Apple do about the antitrust charges? a. They settled before the charges were made public b. They were not charged, so there was nothing to settle – Apple was the defendant in the case c. They were exonerated because they had done nothing wrong d. None of the above ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: All's Fair, or Is It? KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 7:44 PM DATE MODIFIED: 9/8/2017 7:46 PM 52. What additional legal battle did Apple have after the antitrust price-fixing case? a. The book publishers sued Apple for compensation b. Apple challenged the presence of a monitor at its company c. Apple faced litigation over sharing trade secrets of the publishers d. Both a and c ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: All's Fair, or Is It? KEYWORDS: Bloom's: Understand DATE CREATED: 9/8/2017 7:46 PM DATE MODIFIED: 9/8/2017 7:47 PM 53. Why was it important for ASCAP to confront the children‟s summer camps on the use of members‟ songs without license arrangements? a. ASCAP members stand to lose their copyright if they do not control use

b. ASCAP members simply wanted the royalty payments c. ASCAP members did not want their songs used at camps d. Both b and c ANSWER: a POINTS: 1 Copyright Cengage Learning. Powered by Cognero.

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DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Intellectual Property and Ethics KEYWORDS: Bloom's: Analyze DATE CREATED: 9/8/2017 7:48 PM DATE MODIFIED: 9/8/2017 7:51 PM 54. In Theory of Moral Sentiments, Adam Smith: a. Says that not everyone is happy for our success. b. Says that everyone can see situations in the same way. c. That success is best earned gradually. d. Both a and b e. Both b and c f. Both a and c ANSWER: f POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: All's Fair, or Is It? KEYWORDS: Bloom's: Understand DATE CREATED: 9/8/2017 7:51 PM DATE MODIFIED: 9/8/2017 7:54 PM 55. What was the culture of Boeing like at the time of the Lockheed document use? a. Ethics was a high priority for everyone, including the executive team b. The Boeing board was worried about the behavior of the CEO c. The CFO was fired because of the Darlene Druyon issues d. Both b and c ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Covenants Not to Compete KEYWORDS: Bloom's: Understand DATE CREATED: 9/8/2017 7:54 PM DATE MODIFIED: 9/8/2017 7:57 PM 56. How many CEOs did Boeing lose to ethical lapses? a. None b. One c. Two d. Three Copyright Cengage Learning. Powered by Cognero.

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ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Covenants Not to Compete KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 7:58 PM DATE MODIFIED: 9/8/2017 8:00 PM 57. In the Trinity guardrail litigation, who was awarded the damages from the False Claims Act? a. The Department of Transportation b. The state governments that had installed the guardrails c. Trinity‟s competitor d. Both a and c ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: All's Fair, or Is It? KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 8:00 PM DATE MODIFIED: 9/12/2017 8:33 PM 58. Jeff Sanders, head of finance for Components, Inc. has just interviewed Laura Dern, an employee from the finance department of InChip, Components‟ chief competitor. Laura has explained that she has been passed over one too many times for a promotion at InChip and is thus in the job market. As Laura is leaving she whispers to Jeff, “Look, I have no contract at InChip that obligates me in anyway. I can begin immediately. Further, I have been able to obtain copies of our newest computer chip designs. You‟ll have them before InChip even begins production.” a. Jeff should hire Laura on the spot without any worries about ethical breaches since Laura is not under contract. b. Jeff‟s hiring of Laura may constitute an ethical breach, but would not constitute illegal conduct.

c. Jeff should not hire Laura, and must analyze the issue of whether to disclose Laura‟s conduct to InChip. d. Jeff should not hire Laura and need not worry about Laura‟s conduct and its impact on InChip.

ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Covenants Not to Compete KEYWORDS: Bloom's: Apply DATE CREATED: 9/8/2017 8:02 PM DATE MODIFIED: 9/8/2017 8:04 PM 59. What project were Boeing and Lockheed Martin competing for? a. Jets for the Gulf War Copyright Cengage Learning. Powered by Cognero.

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b. EELV c. Air Force One contract d. They were not competing for the same project ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Covenants Not to Compete KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 8:05 PM DATE MODIFIED: 9/8/2017 8:07 PM 60. What was the effect of Boeing‟s merger with McDonnell Douglas and Lockheed Martin‟s merger with Marietta? a. The merger meant the two companies could work together b. The merger would be set aside for antitrust violations c. The merger meant the government had only two major contractors d. None of the above ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Covenants Not to Compete KEYWORDS: Bloom's: Understand DATE CREATED: 9/8/2017 8:07 PM DATE MODIFIED: 9/8/2017 8:08 PM 61. Who is Kenneth Branch? a. An employee of NASA b. An employee of Lockheed Martin c. An employee of the defense department d. An employee of McDonnell Douglas ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Covenants Not to Compete KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 8:09 PM DATE MODIFIED: 9/8/2017 8:10 PM 62. When did Boeing employees first see Lockheed Martin‟s proposed bid for the project? a. During the interview with the Lockheed Martin employee Copyright Cengage Learning. Powered by Cognero.

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b. After hiring the former Lockheed Martin employee c. After they asked for the documents from the former Lockheed Martin employee d. Boeing employees never did see the proposed bid ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Covenants Not to Compete KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 8:10 PM DATE MODIFIED: 9/8/2017 8:11 PM 63. Who encouraged Boeing employees to develop a more effective competitive assessment of Lockheed Martin? a. Kenneth Branch b. William Erskine c. Frank Slazer d. Tom Alexiou ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Covenants Not to Compete KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 8:11 PM DATE MODIFIED: 9/8/2017 8:13 PM 64. What happened to the Boeing employee who raised questions about the use of the Lockheed Martin documents? a. She was recognized for her efforts b. She was reprimanded c. She was terminated d. She was transferred ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Covenants Not to Compete KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 8:13 PM DATE MODIFIED: 9/8/2017 8:14 PM 65. Who was fired when the company and government learned of the use of the Lockheed Martin documents? a. The former Lockheed Martin employee who brought the documents Copyright Cengage Learning. Powered by Cognero.

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b. The supervisor who knew of the use of the documents c. The employee who reported the document use d. Both a and b ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Covenants Not to Compete KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 8:14 PM DATE MODIFIED: 9/8/2017 8:15 PM 66. What happened to the suits for wrongful termination against Boeing? a. They were dismissed in 2002 b. The employees won damages against Boeing c. The records in the case were sealed d. None of the above ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Covenants Not to Compete KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 8:16 PM DATE MODIFIED: 9/8/2017 8:18 PM 67. Who said, “I was hired to win . . . and I was going to do whatever it took to do it”? a. Kenneth Branch b. William Erskine c. Frank Slazer d. Tom Alexiou ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Covenants Not to Compete KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 8:18 PM DATE MODIFIED: 9/8/2017 8:19 PM 68. How many Lockheed Martin documents did Boeing have? a. Two bid proposals Copyright Cengage Learning. Powered by Cognero.

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b. One file folder c. Three boxes d. Eleven boxes ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Covenants Not to Compete KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 8:19 PM DATE MODIFIED: 9/8/2017 8:20 PM 69. What was the defense department penalty for Boeing for using the Lockheed Martin documents? a. $1 billion fine b. $300 million fine c. $500 million fine d. $1 billion in lost contracts ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Covenants Not to Compete KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 8:21 PM DATE MODIFIED: 9/8/2017 8:22 PM 70. How much did Boeing pay to settle the criminal investigation into the use of the documents and other issues? a. $1 billion b. $615 million c. $1.1 billion d. $5 billion in lost contracts ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Covenants Not to Compete KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 8:22 PM DATE MODIFIED: 9/8/2017 8:23 PM 71. How much did Boeing have to restate its earnings as a result of the document issue? a. $1 billion Copyright Cengage Learning. Powered by Cognero.

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b. $615 million c. $1.1 billion d. $5 billion in lost contracts ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Covenants Not to Compete KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 8:23 PM DATE MODIFIED: 9/8/2017 8:24 PM 72. Who served as an ethics consultant to Boeing following the document issue coming to light? a. The author of the text b. Marianne Jennings c. Both a and b d. Dean Philip Regier ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Covenants Not to Compete KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 8:24 PM DATE MODIFIED: 9/8/2017 8:25 PM 73. Who eventually raised concerns about the documents at Boeing? a. The CEO b. A project specialist c. Erskine d. Lockheed Martin employees ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Covenants Not to Compete KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 8:25 PM DATE MODIFIED: 9/8/2017 8:27 PM 74. Karen Bridgestone is a student in a masters of accountancy course. The professor has selected an electronic textbook for use in the course. In meeting with her group, Karen offers to purchase the textbook online, take the print option, and then make copies of the text to give to the other group members for the cost of the copies as a way of saving them money Copyright Cengage Learning. Powered by Cognero.

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in their expensive graduate program. Which of the following is correct? a. Because there was no commercial use, there is no copyright infringement.

b. Because they paid for the copies of the text, there is no infringement. c. As long as they do not sell the copies to anyone for the next semester, there are no copyright issues. d. None of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Intellectual Property and Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 9/8/2017 8:28 PM DATE MODIFIED: 9/8/2017 8:31 PM 75. The term “Tiffany setting”: a. Is a generic one that competitors could use in describing a ring‟s setting. b. Is a trademark that is protected. c. Is not a trademark because it is a description, not unique. d. Both a and c ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Intellectual Property and Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 9/8/2017 8:31 PM DATE MODIFIED: 9/8/2017 8:34 PM 76. A professor for one of your courses has assigned reading materials from various publications. He tells you that the materials are on reserve and that each student should go and copy the materials individually. He notes that for him to copy the materials for students and then sell them or distribute them would be a violation of copyright law. The professor's conduct: a. Is unethical and violates copyright law as well.

b. Is something everyone does and is accepted behavior. c. Does not really harm anyone. d. Is acceptable in an academic setting.

ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Intellectual Property and Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 9/8/2017 8:34 PM Copyright Cengage Learning. Powered by Cognero.

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DATE MODIFIED: 9/8/2017 8:35 PM 77. Into which of the following categories do patent and copyright infringement fall? a. Conflict of interest b. Balancing ethical dilemmas c. Organizational abuse d. Interpersonal abuse e. Taking things that don‟t belong to you ANSWER: e POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Intellectual Property and Ethics KEYWORDS: Bloom's: Analyze DATE CREATED: 9/8/2017 8:35 PM DATE MODIFIED: 9/12/2017 8:34 PM 78. Which of the following would be a breach of trust and ethics? a. Sharing a new product idea with a prospective employer b. Leaving your current employment for a higher paying job c. Leaving your current employment for a job with more flexibility d. Taking the skills you have learned at a current job to a new job e. All of the above are breaches of trust and ethics ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Covenants Not to Compete KEYWORDS: Bloom's: Apply DATE CREATED: 9/8/2017 8:38 PM DATE MODIFIED: 9/8/2017 8:40 PM 79. Stephen Ambrose, a popular historian with many books to his credit, admitted that some segments of one of his recent books had language taken from the books of other historians that was not in quotes. Mr. Ambrose did footnote the work of authors he relied upon in doing his book. a. The work of an author is protected by copyright laws.

b. The use of quotes without attribution is not a violation of the law. c. The use of the material is fair use and need not be footnoted. d. Both b and c e. None of the above ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice Copyright Cengage Learning. Powered by Cognero.

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HAS VARIABLES: TOPICS: KEYWORDS: DATE CREATED: DATE MODIFIED:

False Intellectual Property and Ethics Bloom's: Apply 9/8/2017 8:40 PM 9/8/2017 8:42 PM

80. Steve has been disgruntled with his firm for some time and is secretly planning to leave and start his own manufacturer representative firm with the contacts he has made. Steve has been making copies of the firm‟s file-secured customer lists, supplier lists, pricing guides, and financial information which is routinely circulated to the staff. a. If Steve leaves and contacts the customers of his former firm, there is a good chance that he will be liable for damages caused by his taking this information. b. Steve shouldn‟t have made copies on the old firm‟s copy machine but taken the originals to an outside copy service. c. Steve‟s former firm will have a difficult time stopping Steve because it did not protect its information.

d. Customers who switch to Steve‟s new firm will be liable to Steve‟s former firm for lost profits.

ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Covenants Not to Compete KEYWORDS: Bloom's: Analyze DATE CREATED: 9/8/2017 8:44 PM DATE MODIFIED: 9/8/2017 8:46 PM 81. A covenant not to compete is enforceable against an employee (except in California and North Dakota) if: a. It is filed as a public record. b. It is reasonable in time and geographic scope. c. It is no longer than six months. d. It is entered into under threat of termination.

ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Covenants Not to Compete KEYWORDS: Bloom's: Analyze DATE CREATED: 9/8/2017 8:46 PM DATE MODIFIED: 9/8/2017 8:48 PM 82. Brad Reed is a real estate broker who charges commissions of 3.5%. Most of the brokers in his area charge 4.5%.

One of those brokers approaches Brad and offers, “Look, if you will just charge 4.5% like the rest of us, we will make up any drop in business that you see after the increase.” Which of the following statements is correct? a. The offer is simply a contract of cooperation.

b. The offer is an attempt at price-fixing. c. The other brokers would have to be there for the offer to be price-fixing. d. None of the above Copyright Cengage Learning. Powered by Cognero.

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ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: All's Fair, or Is It? KEYWORDS: Bloom's: Apply DATE CREATED: 9/8/2017 8:48 PM DATE MODIFIED: 9/8/2017 8:50 PM 83. Which of the cases did not involve intellectual property issues? a. Louis Vuitton b. Boeing c. The NCAA and college athletes d. All of these involved intellectual property issues ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Intellectual Property and Ethics KEYWORDS: Bloom's: Understand DATE CREATED: 9/8/2017 8:51 PM DATE MODIFIED: 9/12/2017 8:35 PM 84. The use of secret rooms for sales transactions by knock-off goods sellers: a. Eliminates the damage to the brand. b. Is not trademark infringement if it is not done in public. c. Has been effective in reducing the size of the knock-off markets. d. None of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Intellectual Property and Ethics KEYWORDS: Bloom's: Apply DATE CREATED: 9/8/2017 8:52 PM DATE MODIFIED: 9/8/2017 8:54 PM 85. Who recruited whom in the Starwood and Hilton case study? a. Hilton recruited a Starwood executive b. Starwood recruited a Hilton executive c. Hilton and Starwood were both trying to recruit an executive from another hotel chain d. Hilton and Starwood were both recruiting executives from each other Copyright Cengage Learning. Powered by Cognero.

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ANSWER: a POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Covenants Not to Compete KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 8:54 PM DATE MODIFIED: 9/8/2017 8:56 PM 86. How did the problems between Hilton and Starwood employee recruitment and use of records come to light? a. The arbitration hearing on poaching resulted in confessions b. The arbitration hearing on poaching resulted in the exchange of documents c. The arbitration hearing caused other employees to come forward with information d. None of the above ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Covenants Not to Compete KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 8:56 PM DATE MODIFIED: 9/8/2017 8:58 PM 87. What type of clause did Starwood employees have in their employment contracts? a. A clause to not take a job with a competing hotel chain b. A clause to not take documents with them upon departure c. A clause to not work in the resort industry d. Both a and b ANSWER: b POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Covenants Not to Compete KEYWORDS: Bloom's: Understand DATE CREATED: 9/8/2017 8:58 PM DATE MODIFIED: 9/8/2017 9:01 PM 88. What actions did the Stevens-Henager employees take prior to leaving for their new jobs at Eagle Gate College? a. Copied documents to take with them to a competing college b. Copied marketing plans to take with them to a competing college c. Sabotaged Stevens-Henager‟s leads list d. Both a and c Copyright Cengage Learning. Powered by Cognero.

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ANSWER: c POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: Covenants Not to Compete KEYWORDS: Bloom's: Remember DATE CREATED: 9/8/2017 9:01 PM DATE MODIFIED: 9/8/2017 9:02 PM 89. What was the outcome of the Mattel/MGA litigation? a. Mattel was awarded profits from MGA‟s sale of the Bratz doll b. Neither side was awarded damages because it was unclear when and how the Bratz dolls had been developed

c. MGA was awarded damages because Mattel took the Bratz doll from its ideas and former employees d. None of the above ANSWER: d POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Multiple Choice HAS VARIABLES: False TOPICS: All's Fair, or Is It? KEYWORDS: Bloom's: Understand DATE CREATED: 9/8/2017 9:03 PM DATE MODIFIED: 9/8/2017 9:05 PM Essay 90. If you were a company such as Mattel or MGA, dependent upon the creative skills of employees for the development of new characters and products, what policies would you put into place to protect your ownership of their work product that is developed during the course of their employment?

Many companies have a no-removal policy – creative employees cannot take their sketches, pads, ANSWER: computers home with them Have trade secret protection – the drawings are kept to a small group of people and locked away at the end of the work day so that access is controlled. The employees can be prohibited from taking trade secrets with them (even when there is no non-compete agreement, which would not have been allowed in California where MGA and Mattel are headquartered). Keep very good records of what was developed, by whom, and when – date all drawings, etc.

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: All's Fair, or Is It? KEYWORDS: Bloom's: Create DATE CREATED: 9/8/2017 9:05 PM DATE MODIFIED: 9/12/2017 8:36 PM 91. Joseph Horne Company, a Pittsburgh department store chain, was the target of a management leveraged buyout in 1986 and was suffering with the resultant $160 million in debt.

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Horne executives were relieved when, in 1988, Dillard Department Stores, Inc., and mall developer Edward J. DeBartolo agreed to buy Horne‟s stock for $74 million and to assume the 1986 buyout debt.

As part of the deal, Dillard‟s installed data lines and computers in Horne‟s fourteen stores to prepare for the consolidation.

With the stores hooked into its Little Rock, Arkansas, headquarters, Dillard‟s assumed control of Horne‟s merchandise purchasing.

Dillard‟s executives wanted financial and purchasing control because the contract price was contingent upon a finding that Horne‟s financial statements were accurate. Horne‟s CEO, Robert A. O‟Connell, voiced his concerns to E. Ray Kemp, Dillard‟s vice chairman, about the extent and speed of Dillard‟s assumption of control. Kemp told O‟Connell, “Trust me, it would take an act of God for this deal not to go through.”

Dillard‟s had been acquiring department stores like Horne‟s all over the country, adding 196 stores in five years. From 1987-1991 Dillard‟s earnings had gained 20 percent through its strategy of taking over financially troubled firms.

In 1990, however, Dillard‟s deal with Horne‟s fell through, and Horne sued Dillard‟s and DeBartolo for breach of contract and fraud. Horne‟s suit alleged that Dillard‟s plan in taking over the buying and data was to decrease the value of Horne‟s to get a bargain price.

Experts in the industry indicate that Horne demonstrated inexperience by allowing Dillard‟s rapid infiltration. The contract provided that Horne could veto any proposal for Dillard activity in Horne‟s business.

Between the time the contract was negotiated and Dillard‟s cancellation of the agreement, Dillard‟s executives found that some Horne accounting practices were questionable. But some industry experts and Horne executives said Dillard‟s often “nickels and dimes” sellers to bring down the price.

Horne‟s suit also alleged that Dillard‟s told 500 employees that their jobs would be gone after the takeover. Thirty percent of those employees quit before Dillard‟s and DeBartolo withdrew. Because Dillard‟s took over merchandise buying, Horne maintained, merchandise deliveries were late and the wrong merchandise was ordered for critical periods, such as the holiday season.

A Pittsburgh National Bank officer testified in his deposition in the suit that a Dillard‟s executive told him in 1988 that Dillard‟s might wait until Horne‟s bankruptcy to buy the company. Dillard‟s denies the statement and the plan. Dillard‟s and Horne‟s settled the suit in 1992. a.

Were the damages Horne‟s experienced just a consequence of a failed business deal?

b.

Did Dillard‟s take advantage of a debt-ridden company?

c.

What financial-disclosure obligations do takeover targets have?

d.

Did Dillard‟s have any special obligations because of its access to Horne‟s data and buying power?

e.

Is it unethical to take advantage of a naive party in a commercial transaction? a.

Horne's damages were something more than a failed takeover. Horne's, perhaps naively, ANSWER: allowed too much infiltration of its organization and experienced too much loss of authority along with too poor management of its orders and merchandise. Dillard's perhaps because of its experience, may have gone too far in conducting its due diligence and may have become too involved in Horne's operations. b.

Dillard's is a large company with extensive experience in takeovers. Horne's is a local company with no experience in takeovers. Dillard's was able to take over the books as part of its due diligence examination, but was also able to assume a management role prior to the actual takeover. Horne's was probably naive in terms of the extent to which Dillard's could take over in performing its due diligence. Horne's was anxious to have the takeover and may have been willing to do more than it was required to do with respect to the books, records and management control. c.

Horne's did have to surrender access to its books and records, but did not have to surrender management control of purchasing and other functions. The due diligence portion of a takeover is a means by which the offeror (Dillard's) can examine the books and records to verify the financial information furnished by the takeover target (Horne's). d.

Dillard's had a duty of trust imposed by its experience and the tentative nature of the

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takeover. It was not proper to take over the functioning of Horne's nor interfere with its management structure until the deal was completed. Due diligence does not authorize assumption of responsibility for management of the firm. While Horne's could have objected to Dillard's conduct at any time, it apparently was not experienced enough to know that such conduct was unusual prior to closure. e.

Many business people argue that they hire experts: lawyers, accountants, to do just that – find the technicalities to minimize cost and maximize returns. From an ethical perspective, the longterm views should be: how long do I want this relationship to last? What will my reputation in the industry be?

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: All's Fair, or Is It? KEYWORDS: Bloom's: Analyze DATE CREATED: 9/8/2017 9:08 PM DATE MODIFIED: 9/8/2017 9:11 PM 92. Why do companies refuse to use top-secret material from competitors that is brought to them?

Students should discuss the importance of intellectual property in spurring creativity and in ANSWER:

economies. The use of someone else‟s ideas means that you no longer have the opportunity to compete on the merits because you are at the same risk of someone taking your ideas.

POINTS: 1 DIFFICULTY: Hard QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Covenants Not to Compete KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/8/2017 9:11 PM DATE MODIFIED: 9/8/2017 9:12 PM 93. Marc Anthony and Jennifer Lopez, the famous parents of twins have brought suit in California against Silver Cross, LTD., a British company known for its expensive prams (baby carriages). Mr. Anthony and Ms. Lopez allege that their images were used in connection with advertisements for Silver Cross prams without their permission. They allege that the use of their pictures and images with the carriages gives the impression that they are endorsing the product. They refer to the use of their photos as “a brazen and intentional” violation of their rights. Evaluate the ethics of Silver Cross.

Silver Cross is using an image or likeness without permission and without compensation. The use ANSWER: of the photo gives it an unfair advantage over other competitors and it also takes something that does not belong to them – the Anthony/Lopez image.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: Intellectual Property and Ethics KEYWORDS: Bloom's: Evaluate DATE CREATED: 9/8/2017 9:12 PM DATE MODIFIED: 9/8/2017 9:14 PM 94. If you were a manufacturer who did not wish its brand to be sold in discount stores, what could you do? What are the ethical issues in your decision to not be sold in discount stores?

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ANSWER:

Like the Brighton line, you could require a minimum price and then you could terminate those retailers who will not abide by the pricing requirements. When you have a minimum price, the goods cannot be sold competitively. On the other hand, when you have a business model of boutique stores that offer a customer experience, include service and follow-up, the discounters are able to be free-riders. They sell at a discount, but the smaller retailers are the ones who are there to answer phones, provide repairs, warranty follow-up, etc. The service aspect of the sale of goods has costs and discounters don‟t provide those services. So, there are ethical issues in terms of open competition, but also in terms of who ends up providing the services customers need.

POINTS: 1 DIFFICULTY: Moderate QUESTION TYPE: Essay HAS VARIABLES: False TOPICS: All's Fair, or Is It? KEYWORDS: Bloom's: Analyze DATE CREATED: 9/8/2017 9:14 PM DATE MODIFIED: 9/12/2017 8:36 PM

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