Test Bank for Business Ethics Now 6e Andrew Ghillyer

FULL TEST BANK FOR Business Ethics Now 6e Andrew Ghillyer Chapter 1 Student name:__________ 1) The field of ethics is the study of how people try to live their lives according to a standard of

"right" or "wrong" behavior. ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-01 Define ethics.

Source : Chapter 01 Test Bank > TF Qu. 01 The field of ethics is the study of how peop...

2) A society is a closed, confined unit in which people have to follow a distinct religion. ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-01 Define ethics.

Source : Chapter 01 Test Bank > TF Qu. 02 A society is a closed, confined unit in whic...

3) Morality is a set of morals dictated by society. ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-01 Define ethics.

Source : Chapter 01 Test Bank > TF Qu. 03 Morality is a set of morals dictated by soci...

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4) A simple truth is demonstrated by a person's behavior. ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-02 Explain the role of values in ethical decision making.

Source : Chapter 01 Test Bank > TF Qu. 04 A simple truth is demonstrated by a person...

5) A simple truth is something that most people can understand and support. ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-02 Explain the role of values in ethical decision making.

Source : Chapter 01 Test Bank > TF Qu. 05 A simple truth is something that most people...

6) Moral standards are independent of religious beliefs. ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-02 Explain the role of values in ethical decision making.

Source : Chapter 01 Test Bank > TF Qu. 06 Moral standards are independent of religious...

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7) Jason is a high-school senior whose peers are into drugs. He also has a family history of

substance abuse. This will have no impact on his moral standards. ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Learning Objective : 01-02 Explain the role of values in ethical decision making.

Difficulty : 3 Hard Bloom's : Apply Source : Chapter 01 Test Bank > TF Qu. 07 Jason is a high-school senior whose peers ar...

8) Individuals acquire their personal moral standards in the same way that they learn the

alphabet. ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Learning Objective : 01-02 Explain the role of values in ethical decision making.

Bloom's : Understand Difficulty : 2 Medium Source : Chapter 01 Test Bank > TF Qu. 08 Individuals acquire their personal moral sta...

9) Standards of ethical behavior are absorbed by osmosis as individuals observe the examples,

both positive and negative, set by everyone around them. ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Learning Objective : 01-02 Explain the role of values in ethical decision making.

Bloom's : Understand Difficulty : 2 Medium Source : Chapter 01 Test Bank > TF Qu. 09 Standards of ethical behavior are absorbed b...

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10) The term "morals" is applied to a society, while the term "values" is used when referring to

an individual. ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-02 Explain the role of values in ethical decision making.

Source : Chapter 01 Test Bank > TF Qu. 10 The term "morals" is applied to a society, w...

11) A value system refers to a set of personal principles formalized into a code of behavior. ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-02 Explain the role of values in ethical decision making.

Source : Chapter 01 Test Bank > TF Qu. 11 A value system refers to a set of personal p...

12) An intrinsic value means that the pursuit of one value is a good way to reach another value. ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-02 Explain the role of values in ethical decision making.

Source : Chapter 01 Test Bank > TF Qu. 12 An intrinsic value means that the pursuit of...

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13) Happiness and health are examples of instrumental values that are pursued to reach another

value. ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-02 Explain the role of values in ethical decision making.

Source : Chapter 01 Test Bank > TF Qu. 13 Happiness and health are examples of instrum...

14) Simple truth is one of the four basic categories of ethics and can be expressed simply as

doing the right thing. ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-02 Explain the role of values in ethical decision making.

Source : Chapter 01 Test Bank > TF Qu. 14 Simple truth is one of the four basic catego...

15) Rules of appropriate individual behavior represent the idea that the moral standards we

develop for ourselves impact our lives on a daily basis in our behavior and the other types of decisions we make. ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Learning Objective : 01-02 Explain the role of values in ethical decision making.

Bloom's : Understand Difficulty : 2 Medium Source : Chapter 01 Test Bank > TF Qu. 15 Rules of appropriate individual behavior rep...

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16) "Do unto others as you would have them do unto you" is the Golden Rule. ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-02 Explain the role of values in ethical decision making.

Source : Chapter 01 Test Bank > TF Qu. 16 "Do unto others as you would have them do un...

17) Every religion in the world shares the Golden Rule. ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-02 Explain the role of values in ethical decision making.

Source : Chapter 01 Test Bank > TF Qu. 17 Every religion in the world shares the Golden...

18) Virtue ethics is the concept of living your life according to the similar virtues of different

societies. ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 01-03 Understand opposing ethical theories and their limitations.

Source : Chapter 01 Test Bank > TF Qu. 18 Virtue ethics is the concept of living your life...

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19) The problem with virtue ethics is that societies can place different emphasis on different

virtues. ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-03 Understand opposing ethical theories and their limitations.

Source : Chapter 01 Test Bank > TF Qu. 19 The problem with virtue ethics is that societies...

20) Ethics for the greater good is also referred to as utilitarianism. ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-03 Understand opposing ethical theories and their limitations.

Source : Chapter 01 Test Bank > TF Qu. 20 Ethics for the greater good is also referred...

21) The problem with ethics for the greater good is the idea that the ends justify the means. ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 01-03 Understand opposing ethical theories and their limitations.

Source : Chapter 01 Test Bank > TF Qu. 21 The problem with ethics for the greater good is...

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22) The problem with utilitarianism is the focus on doing the most good for a select few, such as

Adolf Hitler and his idea of launching a national genocide against Jews on the ethical grounds of restoring the Aryan race. ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 01-03 Understand opposing ethical theories and their limitations.

Source : Chapter 01 Test Bank > TF Qu. 22 The problem with utilitarianism is the focus...

23) The concept of universal ethics argues that there are certain principles that should apply to a

select few ethical judgments. ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-03 Understand opposing ethical theories and their limitations.

Source : Chapter 01 Test Bank > TF Qu. 23 The concept of universal ethics argues that ...

24) The problem with universal ethics is the idea that the ends justify the means. ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-03 Understand opposing ethical theories and their limitations.

Source : Chapter 01 Test Bank > TF Qu. 24 The problem with universal ethics is the ide...

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25) The Greek philosopher Plato's belief in individual character and integrity established a

concept of living one's life according to a commitment to the achievement of a clear ideal. ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-03 Understand opposing ethical theories and their limitations.

Source : Chapter 01 Test Bank > TF Qu. 25 The Greek philosopher Plato's belief in individual...

26) David Hume, a Scottish philosopher, originally proposed the concept of universal ethics. ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-03 Understand opposing ethical theories and their limitations.

Source : Chapter 01 Test Bank > TF Qu. 26 David Hume, a Scottish philosopher, original...

27) Ethical relativism is where the traditions of one's society, one‘s personal opinions, and the

circumstances of the present moment define one's ethical principles. ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-04 Discuss ethical relativism.

Source : Chapter 01 Test Bank > TF Qu. 27 Ethical relativism is where the traditions o...

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28) Applied ethics is the study of theories related to the Golden Rule. ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-05 Explain an ethical dilemma, and apply a process to resolve it.

Source : Chapter 01 Test Bank > TF Qu. 28 Applied ethics is the study of theories rela...

29) Ethical dilemmas are the study of how ethical theories are put into practice. ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-05 Explain an ethical dilemma, and apply a process to resolve it.

Source : Chapter 01 Test Bank > TF Qu. 29 Ethical dilemmas are the study of how ethica...

30) An ethical dilemma is a situation in which there is no obvious right or wrong decision, but

rather a right or right answer. ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-05 Explain an ethical dilemma, and apply a process to resolve it.

Source : Chapter 01 Test Bank > TF Qu. 30 An ethical dilemma is a situation in which t...

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31) The basic assumption of ethical theory is that a person as an individual or community is in

control of all the factors that influence the choices that he or she makes. ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-05 Explain an ethical dilemma, and apply a process to resolve it.

Source : Chapter 01 Test Bank > TF Qu. 31 The basic assumption of ethical theory is th...

32) An ethical dilemma can be resolved with a satisfactory answer to the problem. ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-05 Explain an ethical dilemma, and apply a process to resolve it.

Source : Chapter 01 Test Bank > TF Qu. 32 An ethical dilemma can be resolved with a sa...

33) The first step in resolving an ethical dilemma is to analyze the actions. ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-05 Explain an ethical dilemma, and apply a process to resolve it.

Source : Chapter 01 Test Bank > TF Qu. 33 The first step in resolving an ethical dilem...

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34) Due to aggressive competition, Amanda feels pressured to copy an assignment from a friend

and the Internet to get good grades. She feels the professor would not be able to figure out what she did. With this ethical dilemma, the first thing Amanda must do is analyze her actions without thinking about consequences. ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Difficulty : 3 Hard Bloom's : Apply Learning Objective : 01-05 Explain an ethical dilemma, and apply a process to resolve it.

Source : Chapter 01 Test Bank > TF Qu. 34 Due to aggressive competition, Amanda feels ...

35) The final step in solving an ethical dilemma is to make a decision. ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-05 Explain an ethical dilemma, and apply a process to resolve it.

Source : Chapter 01 Test Bank > TF Qu. 35 The final step in solving an ethical dilemma...

36) Arthur Dobrin identified 15 questions that one should consider when resolving an ethical

dilemma. ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-05 Explain an ethical dilemma, and apply a process to resolve it.

Source : Chapter 01 Test Bank > TF Qu. 36 Arthur Dobrin identified 15 questions that o...

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37) The process of ethical reasoning involves looking at the available information and then

drawing conclusions based on that information in relation to an individual's own ethical standards. ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 01-05 Explain an ethical dilemma, and apply a process to resolve it.

Source : Chapter 01 Test Bank > TF Qu. 37 The process of ethical reasoning involves lo...

38) Preconventional is the lowest level of Lawrence Kohlberg's stages of ethical reasoning. ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-05 Explain an ethical dilemma, and apply a process to resolve it.

Source : Chapter 01 Test Bank > TF Qu. 38 Preconventional is the lowest level of Lawre...

39) At the lowest level of moral development, a person's response to a perception of right and

wrong is initially directly linked to the expectation of punishment or reward. ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-05 Explain an ethical dilemma, and apply a process to resolve it.

Source : Chapter 01 Test Bank > TF Qu. 39 At the lowest level of moral development, a ...

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40) The last level of Lawrence Kohlberg's stages of ethical reasoning is conventional. ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-05 Explain an ethical dilemma, and apply a process to resolve it.

Source : Chapter 01 Test Bank > TF Qu. 40 The last level of Lawrence Kohlberg's stages of...

41) The third stage of Kohlberg's stages of ethical reasoning is law-and-order orientation. ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-05 Explain an ethical dilemma, and apply a process to resolve it.

Source : Chapter 01 Test Bank > TF Qu. 41 The third stage of Kohlberg's stages of ethical...

42) In the third stage of Kohlberg's stages of ethical reasoning, a person is focused on meeting

the expectations of his friends and coworkers and how something will affect their lives. ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 01-05 Explain an ethical dilemma, and apply a process to resolve it.

Source : Chapter 01 Test Bank > TF Qu. 42 In the third stage of Kohlberg's stages of ethical...

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43) The highest level of ethical reasoning is the postconventional level. ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-05 Explain an ethical dilemma, and apply a process to resolve it.

Source : Chapter 01 Test Bank > TF Qu. 43 The highest level of ethical reasoning is th...

44) According to Kohlberg's framework, an individual can jump beyond the next stage of his or

her six stages. ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 01-05 Explain an ethical dilemma, and apply a process to resolve it.

Source : Chapter 01 Test Bank > TF Qu. 44 According to Kohlberg's framework, an individual...

45) Kohlberg stated that it would be impossible for a person to comprehend the moral issues and

dilemmas at a level far beyond his or her life experience and education. ⊚ true ⊚ false Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-05 Explain an ethical dilemma, and apply a process to resolve it.

Source : Chapter 01 Test Bank > TF Qu. 45 Kohlberg stated that it would be impossible ...

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46) The field of ________ is the study of how people try to live their lives according to a

standard of "right" or "wrong" behavior.

A) metaphilosophy B) ethics C) aesthetics D) epistemology Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-01 Define ethics.

Source : Chapter 01 Test Bank > MC Qu. 46 The field of ________ is the study of how peopl...

47) Society refers to a(n) A) environment that does not mention acceptable standard of good and bad behavior.

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

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

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

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-01 Define ethics.

Source : Chapter 01 Test Bank > MC Qu. 47 Society refers to a(n)

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48) Amanda and Ross have been chosen to go to Ethiopia for their university's International

Student Exchange Program. They read about the beliefs, attitudes, practices, norms, traditions, cuisine, and music of Ethiopia to better adapt to the place. Amanda and Ross are reading about the ________ aspect of Ethiopia.

A) cultural B) economical C) political D) philosophical Question Details Accessibility : Keyboard Navigation Learning Objective : 01-02 Explain the role of values in ethical decision making.

Difficulty : 3 Hard Bloom's : Apply Source : Chapter 01 Test Bank > MC Qu. 48 Amanda and Ross have been chosen to go to Et...

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

A) the change of government in the individual's home country B) a strict family upbringing C) the attitude of people in the neighboring country D) an opportunity to learn a foreign language Question Details Accessibility : Keyboard Navigation Learning Objective : 01-02 Explain the role of values in ethical decision making.

Bloom's : Understand Difficulty : 2 Medium Source : Chapter 01 Test Bank > MC Qu. 49 Which of the following will most likely infl...

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50) Which of the following statements describes the terms "morals" and "values"?

A) They are rules and norms that an individual should abide by to be accepted in a

society.

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

C) They are a set of personal principles by which one aims to live one's life.

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

Question Details Accessibility : Keyboard Navigation Learning Objective : 01-02 Explain the role of values in ethical decision making.

Bloom's : Understand Difficulty : 2 Medium Source : Chapter 01 Test Bank > MC Qu. 50 Which of the following statements describes ...

51) ________ refers to a set of personal principles formalized into a code of behavior.

A) Traditional norm B) Value system C) Extrinsic norm D) Utilitarianism Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-02 Explain the role of values in ethical decision making.

Source : Chapter 01 Test Bank > MC Qu. 51 ________ refers to a set of personal principles...

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52) The quality by which a value is a good thing in itself and is pursued for its own sake, whether

anything comes from that pursuit or not, is called a(n) ________.

A) traditional norm B) instrumental value C) extrinsic norm D) intrinsic value Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-02 Explain the role of values in ethical decision making.

Source : Chapter 01 Test Bank > MC Qu. 52 The quality by which a value is a good thing...

53) An example of intrinsic value is ________.

A) money B) a package holiday C) a job offer D) health Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-02 Explain the role of values in ethical decision making.

Source : Chapter 01 Test Bank > MC Qu. 53 An example of intrinsic value is ________.

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54) Riley was granted the title of Doctor of Medicine by a medical school in Ohio. His parents

were extremely happy and content with his achievement. The worth attached to the feelings experienced by Riley's parents is an example of ________.

A) unconventional value B) intrinsic value C) instrumental value D) extrinsic value Question Details Accessibility : Keyboard Navigation Learning Objective : 01-02 Explain the role of values in ethical decision making.

Difficulty : 3 Hard Bloom's : Apply Source : Chapter 01 Test Bank > MC Qu. 54 Riley was granted the title of Doctor of Med...

55) The quality by which the pursuit of one value is a good way to reach another value is known

as ________.

A) intrinsic value B) extrinsic norm C) instrumental value D) traditional norm Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-02 Explain the role of values in ethical decision making.

Source : Chapter 01 Test Bank > MC Qu. 55 The quality by which the pursuit of one valu...

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56) Identify an example of instrumental value.

A) money B) self-respect C) happiness D) health Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-02 Explain the role of values in ethical decision making.

Source : Chapter 01 Test Bank > MC Qu. 56 Identify an example of instrumental value.

57) Which of the following scenarios exemplifies instrumental value?

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

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

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

D) Fernando is upset with his poor SAT scores.

Question Details Accessibility : Keyboard Navigation Learning Objective : 01-02 Explain the role of values in ethical decision making.

Difficulty : 3 Hard Bloom's : Apply Source : Chapter 01 Test Bank > MC Qu. 57 Which of the following scenarios exemplifies...

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58) The difference between intrinsic value and instrumental value is that A) as opposed to instrumental value, intrinsic value refers to the adoption of those

standards that are ultimately unique to a society.

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

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

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

Question Details Accessibility : Keyboard Navigation Learning Objective : 01-02 Explain the role of values in ethical decision making.

Bloom's : Understand Difficulty : 2 Medium Source : Chapter 01 Test Bank > MC Qu. 58 The difference between intrinsic value and i...

59) In the context of the basic categories of ethics, ________ is just doing the right thing, and it

is something most people can understand and support.

A) memory conformity B) the rule of differentiation C) double think D) a simple truth Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-02 Explain the role of values in ethical decision making.

Source : Chapter 01 Test Bank > MC Qu. 59 In the context of the basic categories of et...

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

A) personal integrity B) psychological behaviorism C) rules of differentiation D) stretched truth Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-02 Explain the role of values in ethical decision making.

Source : Chapter 01 Test Bank > MC Qu. 60 Which of the following is one of the four ba...

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

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

parents.

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

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

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

Question Details Accessibility : Keyboard Navigation Learning Objective : 01-02 Explain the role of values in ethical decision making.

Difficulty : 3 Hard Bloom's : Apply Source : Chapter 01 Test Bank > MC Qu. 61 Which of the following best illustrates the ...

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

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

standards.

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

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

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

Question Details Accessibility : Keyboard Navigation Learning Objective : 01-02 Explain the role of values in ethical decision making.

Difficulty : 3 Hard Bloom's : Apply Source : Chapter 01 Test Bank > MC Qu. 62 Which of the following exemplifies the rules...

63) Alison Anderson, the CEO of Anderson Inc., laid the foundation for apt professional

behavior in her workplace. She is honest, aware, and sensitive and is considered a role model by young entrepreneurs. Which of the following basic categories of ethics is depicted in this scenario?

A) simple truth B) instrumental value C) personal integrity D) expectancy value Question Details Accessibility : Keyboard Navigation Learning Objective : 01-02 Explain the role of values in ethical decision making.

Difficulty : 3 Hard Bloom's : Apply Source : Chapter 01 Test Bank > MC Qu. 63 Alison Anderson, the CEO of Anderson Inc., l...

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

A) A question of someone's personal character, his or her integrity, is not one of the

basic categories of ethics.

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

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

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

Question Details Accessibility : Keyboard Navigation Learning Objective : 01-02 Explain the role of values in ethical decision making.

Bloom's : Understand Difficulty : 2 Medium Source : Chapter 01 Test Bank > MC Qu. 64 Which of the following statements accurately...

65) "Do unto others as you would have them do unto you" explains the ________.

A) Golden Rule B) simple truth C) virtue ethics D) rule of rescue Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-02 Explain the role of values in ethical decision making.

Source : Chapter 01 Test Bank > MC Qu. 65 "Do unto others as you would have them do un...

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66) Charlotte works for an advertising agency. She is usually late in responding to e-mails and

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

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

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

C) She wants to impress her colleagues.

D) She has no friends and is lonely.

Question Details Accessibility : Keyboard Navigation Learning Objective : 01-02 Explain the role of values in ethical decision making.

Difficulty : 3 Hard Bloom's : Analyze Source : Chapter 01 Test Bank > MC Qu. 66 Charlotte works for an advertising agency. S...

67) ________, demonstrated by someone's behavior, looks at ethics from an external rather than

an internal viewpoint.

A) Personal integrity B) Simple truth C) Appropriate behavior D) Virtue ethics Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-02 Explain the role of values in ethical decision making.

Source : Chapter 01 Test Bank > MC Qu. 67 ________, demonstrated by someone's behavior, looks...

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68) The Greek philosopher Aristotle's belief in individual character and integrity established the

concept of ________.

A) philosophical ethics B) virtue ethics C) ethical relativism D) utilitarianism Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-03 Understand opposing ethical theories and their limitations.

Source : Chapter 01 Test Bank > MC Qu. 68 The Greek philosopher Aristotle's belief in individua...

69) ________ refers to a concept of living one's life according to a commitment to the

achievement of a clear ideal.

A) The simple truth B) The Golden Rule C) Ethical relativism D) Virtue ethics Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-03 Understand opposing ethical theories and their limitations.

Source : Chapter 01 Test Bank > MC Qu. 69 ________ refers to a concept of living one's life according...

70) The problem with virtue ethics is that A) it is based on consequentialism.

B) societies are formed according to the Golden Rule.

C) societies can place different emphasis on different virtues.

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

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 01-03 Understand opposing ethical theories and their limitations.

Source : Chapter 01 Test Bank > MC Qu. 70 The problem with virtue ethics is that

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71) Ethics for the greater good or ________ is an approach more focused on the outcome of one's

actions rather than the apparent virtue of the actions themselves.

A) utilitarianism B) normative ethics C) worldcentrism D) virtue ethics Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-03 Understand opposing ethical theories and their limitations.

Source : Chapter 01 Test Bank > MC Qu. 71 Ethics for the greater good or ________ is an a...

72) ________ is defined as ethical choices that offer the greatest good for the greatest number of

people.

A) B) C) D)

Virtue ethics Universal ethics Fundamentalism Utilitarianism

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-03 Understand opposing ethical theories and their limitations.

Source : Chapter 01 Test Bank > MC Qu. 72 ________ is defined as ethical choices that off...

73) The problem with a utilitarian approach to ethics is A) the differing attitudes of various societies to the Golden Rule.

B) the idea that the ends justify the means.

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

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

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 01-03 Understand opposing ethical theories and their limitations.

Source : Chapter 01 Test Bank > MC Qu. 73 The problem with a utilitarian approach to e...

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74) In the context of ________, actions are taken out of duty and obligation to a purely moral

ideal rather than based on the needs of a situation.

A) normative ethics B) universal ethics C) reductionist ethics D) deontological ethics Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-03 Understand opposing ethical theories and their limitations.

Source : Chapter 01 Test Bank > MC Qu. 74 In the context of ________, actions are taken o...

75) Universal ethics argues that A) societies can place different emphasis on different virtues.

B) universal principles may not apply to everyone, everywhere, all the time.

C) there are certain principles that should apply to all ethical judgments.

D) everyone is committed to doing the right thing.

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 01-03 Understand opposing ethical theories and their limitations.

Source : Chapter 01 Test Bank > MC Qu. 75 Universal ethics argues that

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

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

good.

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

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

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

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 01-03 Understand opposing ethical theories and their limitations.

Source : Chapter 01 Test Bank > MC Qu. 76 Which of the following is a problem with the...

77) According to the concept of ________, the traditions of one's society, one's personal

opinions, and the circumstances of the present moment define one's ethical principles.

A) universal ethics B) normative ethics C) ethical relativism D) utilitarianism Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-04 Discuss ethical relativism.

Source : Chapter 01 Test Bank > MC Qu. 77 According to the concept of ________, the tradi...

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78) Which of the following statements is true of ethical relativism?

A) The idea of relativism implies some degree of flexibility as opposed to strict black-

and-white rules.

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

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

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

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 01-04 Discuss ethical relativism.

Source : Chapter 01 Test Bank > MC Qu. 78 Which of the following statements is true of...

79) The study of how ethical theories are put into practice refers to ________.

A) meta-ethics B) normative ethics C) descriptive ethics D) applied ethics Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-05 Explain an ethical dilemma, and apply a process to resolve it.

Source : Chapter 01 Test Bank > MC Qu. 79 The study of how ethical theories are put in...

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80) The basic assumption of ethical theory is that A) a person as an individual or community is in control of all the factors that influence

the choices he or she makes.

B) everyone is committed to doing the right thing.

C) individuals share similar standards in a community.

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

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 01-05 Explain an ethical dilemma, and apply a process to resolve it.

Source : Chapter 01 Test Bank > MC Qu. 80 The basic assumption of ethical theory is th...

81) ________ refers to a situation in which there is no obvious "right" or "wrong" decision, but

rather a "right" or "right" answer.

A) Less evil principle B) Logical inference C) Ethical dilemma D) Defeasible reasoning Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-05 Explain an ethical dilemma, and apply a process to resolve it.

Source : Chapter 01 Test Bank > MC Qu. 81 ________ refers to a situation in which there i...

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82) Joe feels pressured to lie to his client to keep an important contract because of intense market

competition. He feels they will never discover the truth. Joe is A) undergoing functional fixedness.

B) facing an ethical dilemma.

C) testing the benefits of risk-taking.

D) controlling the factors that influence his choices.

Question Details Accessibility : Keyboard Navigation Difficulty : 3 Hard Bloom's : Apply Learning Objective : 01-05 Explain an ethical dilemma, and apply a process to resolve it.

Source : Chapter 01 Test Bank > MC Qu. 82 Joe feels pressured to lie to his client to ...

83) The first step in the three-step process for solving an ethical problem is to A) analyze the consequences.

B) make a plan.

C) make a decision.

D) analyze the actions.

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-05 Explain an ethical dilemma, and apply a process to resolve it.

Source : Chapter 01 Test Bank > MC Qu. 83 The first step in the three-step process for...

84) Which of the following is the final step of the three-step process for solving an ethical

problem?

A) analyzing the consequences B) planning a solution C) making a decision D) analyzing the actions Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 01-05 Explain an ethical dilemma, and apply a process to resolve it.

Source : Chapter 01 Test Bank > MC Qu. 84 Which of the following is the final step of ...

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85) Which of the following questions is identified by Arthur Dobrin to resolve an ethical

dilemma?

A) What do your feelings tell you?

B) What are the alternatives?

C) What can be done to resolve the problem?

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

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-05 Explain an ethical dilemma, and apply a process to resolve it.

Source : Chapter 01 Test Bank > MC Qu. 85 Which of the following questions is identifi...

86) Susan and Jessica are arguing over the importance of Arthur Dobrin's eight questions to be

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

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

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

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

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

Question Details Accessibility : Keyboard Navigation Difficulty : 3 Hard Learning Objective : 01-05 Explain an ethical dilemma, and apply a process to resolve it.

Bloom's : Analyze Source : Chapter 01 Test Bank > MC Qu. 86 Susan and Jessica are arguing over the impor...

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87) ________ looks at the information available to people to resolve an ethical dilemma, and

draws conclusions based on that information in relation to their own ethical standards.

A) Universal ethics B) Utilitarianism C) Ethical reasoning D) Metaphilosophy Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-05 Explain an ethical dilemma, and apply a process to resolve it.

Source : Chapter 01 Test Bank > MC Qu. 87 ________ looks at the information available to ...

88) The lowest level of moral development in Lawrence Kohlberg's stages of ethical reasoning is

the ________ stage.

A) preconventional B) social choice C) postconventional D) social contract Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-05 Explain an ethical dilemma, and apply a process to resolve it.

Source : Chapter 01 Test Bank > MC Qu. 88 The lowest level of moral development in Law...

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

A) Kohlberg argues that we develop a reasoning process over time, moving through four

distinct stages as we are exposed to major influences in our lives.

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

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

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

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 01-05 Explain an ethical dilemma, and apply a process to resolve it.

Source : Chapter 01 Test Bank > MC Qu. 89 Which of the following is true of Lawrence K...

90) The stage in which an individual is focused on self-chosen ethical principles found to be

comprehensive and consistent is ________.

A) "good boy/nice girl" ethical orientation B) law-and-order orientation C) universal ethical principle orientation D) obedience and punishment orientation Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-05 Explain an ethical dilemma, and apply a process to resolve it.

Source : Chapter 01 Test Bank > MC Qu. 90 The stage in which an individual is focused ...

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91) In the context of ethical theories, a challenge takes the form of a dilemma in which the

decision one must make requires one to make a right choice knowing full well that one is A) not likely to suffer something bad as a result of that choice.

B) not leaving an equally right choice undone.

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

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

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 01-05 Explain an ethical dilemma, and apply a process to resolve it.

Source : Chapter 01 Test Bank > MC Qu. 91 In the context of ethical theories, a challe...

92) By its very definition, a(n) ________ cannot really be resolved in the sense that a resolution

of the problem implies a satisfactory answer to the problem.

A) deontological problem B) fairness dilemma C) unscrupulous choice D) ethical dilemma Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-05 Explain an ethical dilemma, and apply a process to resolve it.

Source : Chapter 01 Test Bank > MC Qu. 92 By its very definition, a(n) ________ cannot re...

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

A) applied ethics B) ethical reasoning C) relativism D) utilitarianism Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-05 Explain an ethical dilemma, and apply a process to resolve it.

Source : Chapter 01 Test Bank > MC Qu. 93 When ethical theories have to be put into pr...

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94) A person is focused on self-chosen ethical principles that are found to be comprehensive and

consistent at the ________ stage of Kohlberg's stages of ethical reasoning.

A) obedience and punishment orientation B) universal ethical principle orientation C) social contract legalistic orientation D) law-and-order orientation Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-05 Explain an ethical dilemma, and apply a process to resolve it.

Source : Chapter 01 Test Bank > MC Qu. 94 A person is focused on self-chosen ethical p...

95) ________ refers to a study of how people try to live their lives according to a standard of

"right" or "wrong" behavior.

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-01 Define ethics.

Source : Chapter 01 Test Bank > FB Qu. 95 ________ refers to a study of how people try to...

96) A ________ refers to a structured community of people bound together by similar traditions

and customs.

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-01 Define ethics.

Source : Chapter 01 Test Bank > FB Qu. 96 A ________ refers to a structured community of ...

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97) ________ is a particular set of attitudes, beliefs, and practices that characterize a group of

individuals.

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-02 Explain the role of values in ethical decision making.

Source : Chapter 01 Test Bank > FB Qu. 97 ________ is a particular set of attitudes, beli...

98) ________ refers to a set of personal principles formalized into a code of behavior.

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-02 Explain the role of values in ethical decision making.

Source : Chapter 01 Test Bank > FB Qu. 98 ________ refers to a set of personal principles...

99) A(n) ________ is the quality by which the pursuit of one good value is a good way to reach

another value.

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-02 Explain the role of values in ethical decision making.

Source : Chapter 01 Test Bank > FB Qu. 99 A(n) ________ is the quality by which the pursu...

100)

An ________, such as happiness is a good thing in itself and is pursued for its own sake.

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-02 Explain the role of values in ethical decision making.

Source : Chapter 01 Test Bank > FB Qu. 100 An ________, such as happiness is a good thing ...

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101)

"Do unto others as you would have them do unto you" is the ________ of ethics.

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-02 Explain the role of values in ethical decision making.

Source : Chapter 01 Test Bank > FB Qu. 101 "Do unto others as you would have them do un...

102)

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

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 01-03 Understand opposing ethical theories and their limitations.

Source : Chapter 01 Test Bank > FB Qu. 102 ________ is a concept of living one's life according to...

103)

________ refers to actions that are taken out of duty and obligation to a purely moral ideal, rather than based on the needs of the situation, since the universal principles are seen to apply to everyone, everywhere, all the time.

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-03 Understand opposing ethical theories and their limitations.

Source : Chapter 01 Test Bank > FB Qu. 103 ________ refers to actions that are taken out o...

104)

Ethical choices that offer the greatest good for the greatest number of people refer to the ethical approach, proposed by David Hume, known as ________.

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-03 Understand opposing ethical theories and their limitations.

Source : Chapter 01 Test Bank > FB Qu. 104 Ethical choices that offer the greatest good...

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105)

________ is the study of how ethical theories are put into practice.

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-05 Explain an ethical dilemma, and apply a process to resolve it.

Source : Chapter 01 Test Bank > FB Qu. 105 ________ is the study of how ethical theories a...

106)

An ________ is a situation in which there is no obvious right or wrong decision, but rather a right or right answer.

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-05 Explain an ethical dilemma, and apply a process to resolve it.

Source : Chapter 01 Test Bank > FB Qu. 106 An ________ is a situation in which there is no...

107)

How do people arrive at the definition of what's right or wrong?

Question Details Accessibility : Keyboard Navigation Learning Objective : 01-01 Define ethics.

Bloom's : Understand Difficulty : 2 Medium Source : Chapter 01 Test Bank > ES Qu. 107 How do people arrive at the definition of wh...

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108)

Differentiate between intrinsic and instrumental value.

Question Details Accessibility : Keyboard Navigation Learning Objective : 01-02 Explain the role of values in ethical decision making.

Bloom's : Understand Difficulty : 2 Medium Source : Chapter 01 Test Bank > ES Qu. 108 Differentiate between intrinsic and instrume...

109)

Explain how the four basic categories of ethics represent a different feature of ethics.

Question Details Accessibility : Keyboard Navigation Learning Objective : 01-02 Explain the role of values in ethical decision making.

Bloom's : Understand Difficulty : 2 Medium Source : Chapter 01 Test Bank > ES Qu. 109 Explain how the four basic categories of eth...

110)

Give examples of how different religions express the Golden Rule.

Question Details Accessibility : Keyboard Navigation Learning Objective : 01-02 Explain the role of values in ethical decision making.

Bloom's : Understand Difficulty : 2 Medium Source : Chapter 01 Test Bank > ES Qu. 110 Give examples of how different religions exp...

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111)

Name and discuss the three categories of ethical theories.

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 01-03 Understand opposing ethical theories and their limitations.

Source : Chapter 01 Test Bank > ES Qu. 111 Name and discuss the three categories of eth...

112)

Discuss at least one weakness of each of the ethical theories.

Question Details Accessibility : Keyboard Navigation Difficulty : 3 Hard Learning Objective : 01-03 Understand opposing ethical theories and their limitations.

Bloom's : Analyze Source : Chapter 01 Test Bank > ES Qu. 112 Discuss at least one weakness of each of the...

113)

What is implied by the idea of ethical relativism?

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 01-04 Discuss ethical relativism.

Source : Chapter 01 Test Bank > ES Qu. 113 What is implied by the idea of ethical relat...

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114)

Explain Kohlberg's three levels of moral development.

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 01-05 Explain an ethical dilemma, and apply a process to resolve it.

Source : Chapter 01 Test Bank > ES Qu. 114 Explain Kohlberg's three levels of moral development.

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Answer Key Test name: chapter 1 1) TRUE 2) FALSE

Society refers to a structured community of people bound together by similar traditions and customs.

3) FALSE

One's personal set of morals—one's morality—represents a collection of various influences that are built up over one's lifetime.

4) FALSE

A simple truth is differentiating between right and wrong or good and bad.

5) TRUE 6) FALSE

Moral standards are principles based on religious, cultural, or philosophical beliefs by which judgments are made about good or bad behavior.

7) FALSE

A strict family upbringing or religious education would obviously have a direct impact on individuals' personal moral standards. These standards would then provide a moral compass (a sense of personal direction) to guide the individuals in the choices they make in their lives.

8) FALSE

Individuals do not acquire their personal moral standards in the same way that they learn the alphabet. Standards of ethical behavior are absorbed by osmosis as individuals observe the examples (both positive and negative) set by everyone around them—parents, family members, friends, peers, and neighbors.

9) TRUE 10) FALSE

The terms "morals" and "values" are often used to mean the same thing—a set of personal principles by which individuals aim to live their lives.

11) TRUE 12) FALSE

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An intrinsic value—by which a value is a good thing in itself and is pursued for its own sake, whether anything good comes from that pursuit or not.

13) FALSE

An instrumental value—by which the pursuit of one value is a good way to reach another value.

For example, money is valued for what it can buy rather than for itself.

14) TRUE 15) TRUE 16) TRUE 17) FALSE

The Golden Rule is simple and very clear rule shared by many different religions in the world like Buddhism, Christianity, and Hinduism but not all the religions.

18) FALSE

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

19) TRUE 20) TRUE 21) TRUE 22) FALSE

The problem with the approach of utilitarianism to ethics is the idea that the ends justify the means. The 20th century witnessed one of the most extreme examples of this when Adolf Hitler and his Nazi party launched a national genocide against Jews and "defective" people on the utilitarian grounds of restoring the Aryan race.

23) FALSE

Universal ethics refers to actions that are taken out of duty and obligation to a purely moral ideal rather than based on the needs of the situation, since the universal principles are seen to apply to everyone, everywhere, all the time.

24) FALSE

The problem with the universal ethics approach is the reverse of the weakness in ethics for the greater good. If all one focuses on is abiding by a universal principle, no one is accountable for the consequences of the actions taken to abide by those principles.

25) FALSE

The Greek philosopher Aristotle's belief in individual character and integrity established a concept of living one's life according to a commitment to the achievement of a clear ideal.

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26) FALSE

The utilitarian approach to ethics was originally proposed by a Scottish philosopher named David Hume.

27) TRUE 28) FALSE

Applied ethics refers to the study of how ethical theories are put into practice.

29) FALSE

An ethical dilemma refers to a situation in which there is no obvious right or wrong decision, but rather a right or right answer.

30) TRUE 31) TRUE 32) FALSE

By its very definition, an ethical dilemma cannot really be resolved in the sense that a resolution of the problem implies a satisfactory answer to the problem. Since, in reality, the "answer" to an ethical dilemma is often the lesser of two evils, it is questionable to assume that there will always be an acceptable answer—it's more a question of whether or not one can arrive at an outcome one can live with.

33) FALSE

The first step in resolving an ethical dilemma is to analyze the consequences.

34) FALSE

The first step in resolving an ethical dilemma is to analyze the consequences. Amanda must analyze the consequences first.

35) TRUE 36) FALSE

Arthur Dobrin identified eight questions that one should consider when resolving an ethical dilemma.

37) TRUE 38) TRUE 39) TRUE 40) FALSE

The last level of Lawrence Kohlberg's stages of ethical reasoning is postconventional.

41) FALSE

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The third stage of Kohlberg's stages of ethical reasoning is "good boy/nice girl" orientation.

42) FALSE

In the third stage of Kohlberg's stages of ethical reasoning, a person is focused on meeting the expectations of family members—that is, something is right or wrong because it pleases those family members.

43) TRUE 44) FALSE

Kohlberg also believed that a person could not move or jump beyond the next stage of his or her six stages. It would be impossible, he argued, for a person to comprehend the moral issues and dilemmas at a level so far beyond his or her life experience and education.

45) TRUE 46) B 47) D 48) A 49) B 50) C 51) B 52) D 53) D 54) B 55) C 56) A 57) A 58) B 59) D 60) A 61) C 62) D 63) C 64) B 65) A 66) A 67) A 68) B 69) D 70) C 71) A

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72) D 73) B 74) B 75) C 76) A 77) C 78) A 79) D 80) A 81) C 82) B 83) A 84) C 85) A 86) D 87) C 88) A 89) D 90) C 91) C 92) D 93) A 94) B 95) Ethics 96) society 97) Culture 98) Value system 99) instrumental value 100) intrinsic value 101) Golden Rule 102) Virtue ethics 103) Universal ethics 104) utilitarianism 105) Applied ethics 106) ethical dilemma 107) Essay

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The field of ethics is the study of how one tries to live one's lives according to a standard of "right" or "wrong" behavior—in both how one thinks and behaves toward others and how one would like them to think and behave toward oneself. For some people it is a conscious choice to follow moral standards or ethical principles, while others look to the behavior of people around them to determine what is an acceptable standard of right and wrong. People arrive at the definition of what's right or wrong as a result of many factors, including how they were raised, their religion, and the traditions and beliefs of their society.

108)

Essay Intrinsic value is a value that is a good thing in itself; it is pursued for its own sake, whether anything good comes from the pursuit or not. For example, happiness, health, and self-respect can all be said to have intrinsic value.

In contrast, the pursuit of an instrumental value is a good way to reach another value. For example, money is valued for what it can buy rather than for itself.

109)

Essay Each of the four basic categories of ethics represents a different feature of ethics. On one level, the study of ethics seeks to understand how people make the choices they make—how they develop their own set of moral standards, how they live their lives on the basis of those standards, and how they judge the behavior of others in relation to those standards. On a second level, this understanding is used to develop a set of ideals or principles by which a group of ethical individuals can combine as a community with a common understanding of how they "ought" to behave.

110)

Essay The goal of living an ethical life is expressed by the Golden Rule: "Do unto others as you would have them do unto you," or "treat others as you would like to be treated." This simple and very clear rule is shared by many different religions in the world: Buddhism: "Hurt not others in ways that you yourself would find hurtful."—Udana-Varga 5:18 Christianity: "Therefore all things whatsoever ye would that men should do to you, do ye even so to them."—Matthew 7:12 Hinduism: "This is the sum of duty: do naught unto others which would cause you pain if done to you."—Mahabharata 5:1517 111)

Essay

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Ethical theories can be divided into three categories: virtue ethics, ethics for the greater good, and universal ethics. Virtue ethics refers to living one's life according to a commitment to the achievement of a clear ideal. Ethics for the greater good focuses on the outcomes of one's actions rather than focusing on the apparent virtue of actions themselves. Universal ethics refers to actions placed within a strictly moral context.

112)

Essay Some weaknesses of the ethical theories are as follows: Virtue ethics can create value conflict.

Therefore, conflict can occur if the virtues one hopes to achieve fail to reflect the values of the society in which one lives. Ethics for the greater good emphasizes the idea that the ends justify the means. The weakness of this approach is that no one is accountable for the actions that are taken to achieve the outcome. Universal ethics focuses on abiding by a universal principle; however, no one is accountable for the consequences of the actions taken to abide by these principles.

113)

Essay The idea of ethical relativism implies some degree of flexibility as opposed to strict black-andwhite rules. It also offers the comfort of being a part of the ethical majority in one's community or society instead of standing by one's individual beliefs as an outsider from the group. In one's current society, when one talks about peer pressure among groups, one is acknowledging that the expectations of this majority can sometimes have negative consequences.

114)

Essay Lawrence Kohlberg developed a framework of moral development that presents the argument that one develops a reasoning process over time, moving through three levels of moral development as one is exposed to major influences in one's life.

The first level is preconventional. At this lowest level of moral development, a person's response to a perception of right and wrong is initially directly linked to the expectation of punishment or reward.

The second level is conventional. At this level, a person continues to become aware of broader influences outside of the family.

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

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Student name:__________ 115)

Business ethics involves the application of standards of moral behavior to business situations. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-01 Define the term business ethics.

Source : Chapter 02 Test Bank > TF Qu. 01 Business ethics involves the application of ...

116)

Business ethics can be approached from two distinct perspectives: prohibitive and preventative. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-01 Define the term business ethics.

Source : Chapter 02 Test Bank > TF Qu. 02 Business ethics can be approached from two d...

117)

Business ethics should be applied as a separate set of moral standards or ethical concepts from general ethics. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Learning Objective : 02-01 Define the term business ethics.

Bloom's : Understand Difficulty : 2 Medium Source : Chapter 02 Test Bank > TF Qu. 03 Business ethics should be applied as a separ...

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118)

Ethical behavior should not be the same inside and outside a business situation. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Learning Objective : 02-01 Define the term business ethics.

Bloom's : Understand Difficulty : 2 Medium Source : Chapter 02 Test Bank > TF Qu. 04 Ethical behavior should not be the same insi...

119)

A stakeholder is someone with a share or interest in a business enterprise. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-02 Identify an organization's stakeholders.

Source : Chapter 02 Test Bank > TF Qu. 05 A stakeholder is someone with a share or int...

120)

Not every stakeholder will be relevant in every business situation. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 02-02 Identify an organization's stakeholders.

Source : Chapter 02 Test Bank > TF Qu. 06 Not every stakeholder will be relevant in ev...

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121)

Stakeholders include stockholders, employees, and the federal government. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-02 Identify an organization's stakeholders.

Source : Chapter 02 Test Bank > TF Qu. 07 Stakeholders include stockholders, employees...

122)

The interests of wholesalers in an organization include accurate deliveries of quality products on time and at a reasonable cost. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 02-02 Identify an organization's stakeholders.

Source : Chapter 02 Test Bank > TF Qu. 08 The interests of wholesalers in an organizat...

123)

The interests of the creditors of an organization focus specifically on the employment of local residents and the safety of the work environment. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 02-02 Identify an organization's stakeholders.

Source : Chapter 02 Test Bank > TF Qu. 09 The interests of the creditors of an organiz...

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124)

Unethical corporate behavior does not have any impact on a company's stakeholders. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-02 Identify an organization's stakeholders.

Source : Chapter 02 Test Bank > TF Qu. 10 Unethical corporate behavior does not have a...

125)

Unethical corporate behavior would have no negative impact on a community if it were to lead to an economic decline. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 02-02 Identify an organization's stakeholders.

Source : Chapter 02 Test Bank > TF Qu. 11 Unethical corporate behavior would have no n...

126)

The interests of vendor partners in an organization include prompt payment for delivered goods. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-02 Identify an organization's stakeholders.

Source : Chapter 02 Test Bank > TF Qu. 12 The interests of vendor partners in an organ...

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127)

Unpaid invoices impact the interests of suppliers when a company declares bankruptcy as a result of unethical behavior. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-02 Identify an organization's stakeholders.

Source : Chapter 02 Test Bank > TF Qu. 13 Unpaid invoices impact the interests of supp...

128)

Corporate governance is the system by which businesses are directed and controlled. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-03 Discuss the position that business ethics is an oxymoron.

Source : Chapter 02 Test Bank > TF Qu. 14 Corporate governance is the system by which ...

129)

The standard of corporate governance is the extent to which the officers of an organization are fulfilling the duties and responsibilities of their offices to the relevant stakeholders. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-03 Discuss the position that business ethics is an oxymoron.

Source : Chapter 02 Test Bank > TF Qu. 15 The standard of corporate governance is the ...

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130)

The standard of corporate governance appears to be at the highest level in recent business history. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-03 Discuss the position that business ethics is an oxymoron.

Source : Chapter 02 Test Bank > TF Qu. 16 The standard of corporate governance appears...

131)

An oxymoron is the combination of two facts that mirror and support each other. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-03 Discuss the position that business ethics is an oxymoron.

Source : Chapter 02 Test Bank > TF Qu. 17 An oxymoron is the combination of two facts ...

132)

A positive outcome of the awareness generated by unethical behavior in the business world has been increased attention to the need for third-party guarantees of ethical conduct and active commitments from the rest of the business world. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 02-03 Discuss the position that business ethics is an oxymoron.

Source : Chapter 02 Test Bank > TF Qu. 18 A positive outcome of the awareness generate...

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133)

A company's code of ethics comprises written standards of ethical behavior that are designed to guide managers and employees in making the decisions and choices they face every day. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-03 Discuss the position that business ethics is an oxymoron.

Source : Chapter 02 Test Bank > TF Qu. 19 A company's code of ethics comprises written standard...

134)

The Ethical Remuneration Community defines a code of ethics as a central guide to support day-to-day decision making at work. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-03 Discuss the position that business ethics is an oxymoron.

Source : Chapter 02 Test Bank > TF Qu. 20 The Ethical Remuneration Community defines a...

135)

According to the Ethics Resource Center, an organization's cornerstones include its missions, values, and principles. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-03 Discuss the position that business ethics is an oxymoron.

Source : Chapter 02 Test Bank > TF Qu. 21 According to the Ethics Resource Center, an ...

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136)

The Ethics Resource Center states that a code of ethics should help managers, employees, and stakeholders understand how an organization's cornerstones translate into everyday decisions, behaviors, and actions. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-03 Discuss the position that business ethics is an oxymoron.

Source : Chapter 02 Test Bank > TF Qu. 22 The Ethics Resource Center states that a cod...

137)

According to the Ethics Resource Center, a good code of ethics is structured to liberate and empower people to make more effective decisions with greater confidence. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-03 Discuss the position that business ethics is an oxymoron.

Source : Chapter 02 Test Bank > TF Qu. 23 According to the Ethics Resource Center, a g...

138)

A code of ethics can be easily sidestepped or ignored by any organization. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-03 Discuss the position that business ethics is an oxymoron.

Source : Chapter 02 Test Bank > TF Qu. 24 A code of ethics can be easily sidestepped o...

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139)

As a message to its stakeholders, an organization's code of ethics should represent a clear corporate commitment to the highest standards of ethical behavior. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-03 Discuss the position that business ethics is an oxymoron.

Source : Chapter 02 Test Bank > TF Qu. 25 As a message to its stakeholders, an organiz...

140)

An organization's code of ethics has no relevance to its stakeholders. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-03 Discuss the position that business ethics is an oxymoron.

Source : Chapter 02 Test Bank > TF Qu. 26 An organization's code of ethics has no...

141)

An organization's code of ethics has no relevance to its employees. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-03 Discuss the position that business ethics is an oxymoron.

Source : Chapter 02 Test Bank > TF Qu. 27 An organization's code of ethics has no re...

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142)

An organization's code of ethics does not pertain to the everyday functioning of its managers and employees. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 02-03 Discuss the position that business ethics is an oxymoron.

Source : Chapter 02 Test Bank > TF Qu. 28 An organization's code of ethics does not pertain...

143)

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

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-04 Summarize the history of business ethics.

Source : Chapter 02 Test Bank > TF Qu. 29 The issue of corporate social responsibility...

144)

Over the last five decades, corporate ethics has shifted from the organizational mainstream into the domain of legal and human resource departments. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-04 Summarize the history of business ethics.

Source : Chapter 02 Test Bank > TF Qu. 30 Over the last five decades, corporate ethics...

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145)

Codes of ethics have matured from performance-measurement documents into cosmetic public relations documents. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-04 Summarize the history of business ethics.

Source : Chapter 02 Test Bank > TF Qu. 31 Codes of ethics have matured from performanc...

146)

During the 1960s, major scandals drew attention to unethical conduct. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-04 Summarize the history of business ethics.

Source : Chapter 02 Test Bank > TF Qu. 32 During the 1960s, major scandals drew attent...

147)

In the 2000s, a series of financial scandals prompted calls for increased regulations and harsher penalties than before. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-04 Summarize the history of business ethics.

Source : Chapter 02 Test Bank > TF Qu. 33 In the 2000s, a series of financial scandals...

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148)

The Ethics Resource Center (ERC), which offers guidance on ethical business practices, was founded in the 1970s. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-04 Summarize the history of business ethics.

Source : Chapter 02 Test Bank > TF Qu. 34 The Ethics Resource Center (ERC), which offe...

149)

In the 1980s, aggressive downsizing by corporations redefined the social contract between employers and employees. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-04 Summarize the history of business ethics.

Source : Chapter 02 Test Bank > TF Qu. 35 In the 1980s, aggressive downsizing by corpo...

150)

The 2002 Sarbanes-Oxley Act introduced greater accountability for chief executive officers and boards of directors in signing off on the financial performance records of the organizations they represent. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-04 Summarize the history of business ethics.

Source : Chapter 02 Test Bank > TF Qu. 36 The 2002 Sarbanes-Oxley Act introduced great...

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151)

International ethics centers that serve the needs of global businesses were formed in the 1960s. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-05 Identify and propose a resolution for an ethical dilemma in your work envi Source : Chapter 02 Test Bank > TF Qu. 37 International ethics centers that serve the ...

152)

An ethical dilemma is a situation in which there is no obvious right or wrong decision, but rather a right or right answer. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-05 Identify and propose a resolution for an ethical dilemma in your work envi Source : Chapter 02 Test Bank > TF Qu. 38 An ethical dilemma is a situation in which t...

153)

Once the type of a particular ethical conflict has been determined, there are two principles through which it can be resolved: Volcker's Rule and Campbell's Rule. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-05 Identify and propose a resolution for an ethical dilemma in your work envi Source : Chapter 02 Test Bank > TF Qu. 39 Once the type of a particular ethical confli...

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154)

Utilizing the ends-based principle to resolve an ethical dilemma necessitates focusing solely on the decisions that other people in one's situation would arrive at. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-05 Identify and propose a resolution for an ethical dilemma in your work envi Source : Chapter 02 Test Bank > TF Qu. 40 Utilizing the ends-based principle to resolv...

155)

Utilizing the rules-based principle to resolve an ethical dilemma necessitates considering which decision would provide the greatest good for the greatest number of people. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-05 Identify and propose a resolution for an ethical dilemma in your work envi Source : Chapter 02 Test Bank > TF Qu. 41 Utilizing the rules-based principle to resol...

156)

When trying to resolve an ethical dilemma, the Golden Rule principle considers only the legal aspects of the problem. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-05 Identify and propose a resolution for an ethical dilemma in your work envi Source : Chapter 02 Test Bank > TF Qu. 42 When trying to resolve an ethical dilemma, t...

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157)

The three principles by which ethical dilemmas are resolved are successful in all situations. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 02-05 Identify and propose a resolution for an ethical dilemma in your work envi Source : Chapter 02 Test Bank > TF Qu. 43 The three principles by which ethical dilemm...

158)

The ends-based resolution principle offers a perfect solution or resolution to a problem. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-05 Identify and propose a resolution for an ethical dilemma in your work envi Source : Chapter 02 Test Bank > TF Qu. 44 The ends-based resolution principle offers a...

159)

The notion that anything which isn't specifically labeled as wrong must be OK encourages ethical actions in employees prone to unethical behavior. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 02-06 Explain how executives and employees seek to justify unethical behavior.

Source : Chapter 02 Test Bank > TF Qu. 45 The notion that anything which isn't specifically labe...

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160)

The belief that an activity is safe because it will never be found out or publicized is one of the commonly held rationalizations, identified by Saul Gellerman, which can lead to unethical behavior. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-06 Explain how executives and employees seek to justify unethical behavior.

Source : Chapter 02 Test Bank > TF Qu. 46 The belief that an activity is safe because ...

161)

Companies engaged in unethical behavior—willingly or otherwise—always protect the identity of the personnel involved. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-06 Explain how executives and employees seek to justify unethical behavior.

Source : Chapter 02 Test Bank > TF Qu. 47 Companies engaged in unethical behavior...

162)

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

A) Business structuralism B) Business contingence C) Business ethics D) Business sourcing

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-01 Define the term business ethics.

Source : Chapter 02 Test Bank > MC Qu. 48 ________ is the application of standards of mor...

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163)

Which of the following statements best describes business ethics?

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

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

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

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

Question Details Accessibility : Keyboard Navigation Learning Objective : 02-01 Define the term business ethics.

Bloom's : Understand Difficulty : 2 Medium Source : Chapter 02 Test Bank > MC Qu. 49 Which of the following statements best descr...

164)

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

A) descriptive B) normative C) preventative D) prescriptive

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-01 Define the term business ethics.

Source : Chapter 02 Test Bank > MC Qu. 50 In the context of business ethics, the ________...

165)

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

A) subjective B) prohibitive C) normative D) constitutive

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-01 Define the term business ethics.

Source : Chapter 02 Test Bank > MC Qu. 51 In the context of business ethics, a ________ p...

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166)

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

A) arbitrative B) meditative C) prescriptive D) descriptive

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-01 Define the term business ethics.

Source : Chapter 02 Test Bank > MC Qu. 52 A perspective of business ethics that is a s...

167)

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

A) delineative B) evasive C) substantive D) normative

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-01 Define the term business ethics.

Source : Chapter 02 Test Bank > MC Qu. 53 A perspective of business ethics that involv...

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69

168)

Which of the following is true of business ethics?

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

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

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

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

Question Details Accessibility : Keyboard Navigation Learning Objective : 02-01 Define the term business ethics.

Bloom's : Understand Difficulty : 2 Medium Source : Chapter 02 Test Bank > MC Qu. 54 Which of the following is true of business e...

169)

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

A) stakeholder B) moderator C) mediator D) crossholder

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-02 Identify an organization's stakeholders.

Source : Chapter 02 Test Bank > MC Qu. 55 A ________ is defined as someone with a share o...

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170)

Which of the following is true of stakeholders?

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

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

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

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

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 02-02 Identify an organization's stakeholders.

Source : Chapter 02 Test Bank > MC Qu. 56 Which of the following is true of stakeholde...

171)

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

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

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

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

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

Question Details Accessibility : Keyboard Navigation Learning Objective : 02-02 Identify an organization's stakeholders.

Bloom's : Apply Difficulty : 3 Hard Source : Chapter 02 Test Bank > MC Qu. 57 GeoTransmit, a large multinational telecommu...

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172)

A ________ is defined as a product or service of acceptable value and quality for the money spent.

A) fair exchange B) floating exchange C) linked exchange D) dual exchange

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-02 Identify an organization's stakeholders.

Source : Chapter 02 Test Bank > MC Qu. 58 A ________ is defined as a product or service o...

173)

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

A) business ethics B) organizational culture C) retail optimization D) corporate governance

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-03 Discuss the position that business ethics is an oxymoron.

Source : Chapter 02 Test Bank > MC Qu. 59 The system that directs and controls busines...

174)

Which of the following is true of corporate governance?

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

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

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

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

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 02-03 Discuss the position that business ethics is an oxymoron.

Source : Chapter 02 Test Bank > MC Qu. 60 Which of the following is true of corporate ...

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175)

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

A) ensures that certain select corporations are allowed to monitor the ethical conduct of government officials B) plays no role in determining the impact of fraudulent policies C) ensures that officers of an organization fulfill their obligations to their stakeholders D) plays no role in regulating the ethical behavior of employees in an organization

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 02-03 Discuss the position that business ethics is an oxymoron.

Source : Chapter 02 Test Bank > MC Qu. 61 A feature of the standard of corporate gover...

176)

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

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

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

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

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

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 02-03 Discuss the position that business ethics is an oxymoron.

Source : Chapter 02 Test Bank > MC Qu. 62 Which of the following is true of the standa...

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177)

The term "business ethics" is sometimes considered an oxymoron because A) small, new businesses tend to be less honest than large, established businesses.

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

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

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

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 02-03 Discuss the position that business ethics is an oxymoron.

Source : Chapter 02 Test Bank > MC Qu. 63 The term "business ethics" is sometimes cons...

178)

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

A) encourage managers and employees to make unsupervised decisions B) guide managers and employees in making sound decisions and choices every day C) liberate chief executive officers from any constraints placed by boards of directors D) decrease the independence of boards of directors and increases the power of investors

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 02-03 Discuss the position that business ethics is an oxymoron.

Source : Chapter 02 Test Bank > MC Qu. 64 The main function of a code of ethics is to ...

179)

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

A) business matrix B) code of ethics C) internal channel D) external channel

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-03 Discuss the position that business ethics is an oxymoron.

Source : Chapter 02 Test Bank > MC Qu. 65 A(n) ________ is defined as a central guide tha...

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180)

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

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

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

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

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

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 02-03 Discuss the position that business ethics is an oxymoron.

Source : Chapter 02 Test Bank > MC Qu. 66 Which of the following functions does a code...

181)

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

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

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

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

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

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 02-03 Discuss the position that business ethics is an oxymoron.

Source : Chapter 02 Test Bank > MC Qu. 67 Which of the following statements is true of...

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182)

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

A) Ethics Resource Center (ERC) B) Better Business Bureau (BBB) C) Ethical Remuneration Community (ERC) D) Research Ethics Board (REB)

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-03 Discuss the position that business ethics is an oxymoron.

Source : Chapter 02 Test Bank > MC Qu. 68 The ________ defines a code of ethics as a cent...

183)

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

A) a charter of compassion B) corporate governance C) a code of ethics D) cuneiform law

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-03 Discuss the position that business ethics is an oxymoron.

Source : Chapter 02 Test Bank > MC Qu. 69 As a message to an organization's stakeholders, ...

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184)

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

A) managers and employees B) competitors and consumers C) stockholders and shareholders D) retailers and wholesalers

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-03 Discuss the position that business ethics is an oxymoron.

Source : Chapter 02 Test Bank > MC Qu. 70 As an internal document, a code of ethics sh...

185)

In the context of business ethics, an ideal ________ is structured to liberate and empower people to make more effective decisions with greater confidence.

A) remuneration B) work–life balance C) code of ethics D) business plan

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-03 Discuss the position that business ethics is an oxymoron.

Source : Chapter 02 Test Bank > MC Qu. 71 In the context of business ethics, an ideal ...

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77

186)

According to the ________, a code of ethics is a central guide to support day-to-day decision making at work.

A) Society of Corporate Compliance and Ethics B) Ethics Resource Center (ERC) C) United Nations Trusteeship Council D) Economic and Social Council (ECOSOC)

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-03 Discuss the position that business ethics is an oxymoron.

Source : Chapter 02 Test Bank > MC Qu. 72 According to the ________, a code of ethics is ...

187)

A company's ________ should clarify its cornerstones—its mission, values, and principles—to its managers, employees, and stakeholders.

A) human resource policies B) code of ethics C) regulatory framework D) standard procedures

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-03 Discuss the position that business ethics is an oxymoron.

Source : Chapter 02 Test Bank > MC Qu. 73 A company's ________ should clarify its corner...

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188)

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

A) performance-assessment B) profit-oriented C) internal-relations D) profit-minimization

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-04 Summarize the history of business ethics.

Source : Chapter 02 Test Bank > MC Qu. 74 Over the last five decades, the issue of cor...

189)

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

A) a code of ethics has developed from a quality-measurement document to a document related to human resources B) a company no longer requires senior executives to be accountable to the board of directors and their stakeholders C) corporate ethics has moved from the organizational mainstream into the domain of legal and human resource departments D) corporate social responsibility has advanced from an abstract debate to a core performance-assessment issue

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 02-04 Summarize the history of business ethics.

Source : Chapter 02 Test Bank > MC Qu. 75 One of the changes that have occurred in a b...

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190)

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

A) legal department B) finance and accounting department C) talent management portfolio D) organizational mainstream

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-04 Summarize the history of business ethics.

Source : Chapter 02 Test Bank > MC Qu. 76 Over the last five decades, corporate ethics...

191)

Which of the following is true of corporate ethics?

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

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

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

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

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 02-04 Summarize the history of business ethics.

Source : Chapter 02 Test Bank > MC Qu. 77 Which of the following is true of corporate ...

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192)

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

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

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

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

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

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 02-04 Summarize the history of business ethics.

Source : Chapter 02 Test Bank > MC Qu. 78 In the context of the history of business et...

193)

A dramatic change in the ________ was the introduction of the stakeholder model as a construct for business ethics decisions.

A) 1960s B) 1980s C) 2000s D) 1950s

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-04 Summarize the history of business ethics.

Source : Chapter 02 Test Bank > MC Qu. 79 A dramatic change in the ________ was the intro...

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194)

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

A) profit-oriented B) financial-assessment C) performance-measurement D) expenditure-maximization

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-04 Summarize the history of business ethics.

Source : Chapter 02 Test Bank > MC Qu. 80 Over the last five decades, codes of ethics ...

195)

Over the last five decades, codes of ethics A) have matured from performance-measurement documents into cosmetic public relations documents.

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

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

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

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 02-04 Summarize the history of business ethics.

Source : Chapter 02 Test Bank > MC Qu. 81 Over the last five decades, codes of ethics

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196)

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

A) Comstock Act B) Federal Corrupt Practices Act C) Sarbanes-Oxley Act D) National Banking Act

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-04 Summarize the history of business ethics.

Source : Chapter 02 Test Bank > MC Qu. 82 The ________ of 2002 introduced greater account...

197)

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

A) status paradox B) absence paradox C) discursive dilemma D) ethical dilemma

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-05 Identify and propose a resolution for an ethical dilemma in your work envi Source : Chapter 02 Test Bank > MC Qu. 83 A situation in which there is no obvious rig...

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198)

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

A) ends-based B) rules-based C) Golden Rule D) Volcker's Rule

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-05 Identify and propose a resolution for an ethical dilemma in your work envi Source : Chapter 02 Test Bank > MC Qu. 84 The ________ approach for resolving an ethical ...

199)

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

A) rules-based B) ends-based C) categorical imperative D) moral syncretism

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-05 Identify and propose a resolution for an ethical dilemma in your work envi Source : Chapter 02 Test Bank > MC Qu. 85 The principle for resolving an ethical dilem...

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200)

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

A) Golden Rule B) rules-based approach C) formative approach D) egocentric rule

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-05 Identify and propose a resolution for an ethical dilemma in your work envi Source : Chapter 02 Test Bank > MC Qu. 86 The principle for resolving an ethical dilem...

201)

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

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

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

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

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

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 02-05 Identify and propose a resolution for an ethical dilemma in your work envi Source : Chapter 02 Test Bank > MC Qu. 87 Which of the following is true of the three ...

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202)

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

A) ignore the matter completely B) think about what's right for them instead of the organization C) divulge into illegal deeds to help their company D) consult the company code of ethics

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 02-05 Identify and propose a resolution for an ethical dilemma in your work envi Source : Chapter 02 Test Bank > MC Qu. 88 When employees observe unethical behavior or...

203)

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

A) selecting between conflicting values that are important to one as an employee B) coming up with ways to justify unethical behavior C) recognizing the type of conflict one is dealing with D) seeking help from one's employer to deal with the rising contention

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-05 Identify and propose a resolution for an ethical dilemma in your work envi Source : Chapter 02 Test Bank > MC Qu. 89 Resolution of an ethical dilemma can be achi...

204)

How can companies discourage unethical behavior in their employees?

A) by disciplining repeat offenders in private B) by conducting regular audits and random spot checks C) by not adopting a formal code of ethics D) by not giving their board of directors more power than the CEOs

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 02-06 Explain how executives and employees seek to justify unethical behavior.

Source : Chapter 02 Test Bank > MC Qu. 90 How can companies discourage unethical behav...

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205)

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

A) protect the identity of the personnel involved B) announce the misconduct publicly C) let go of first-time offenders D) reprimand such an employee in public

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 02-06 Explain how executives and employees seek to justify unethical behavior.

Source : Chapter 02 Test Bank > MC Qu. 91 The belief that an activity is safe because ...

206)

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

A) disciplining unethical behavior in front of their boards of directors B) creating and maintaining a corporate culture of trust C) giving their CEOs more power than their boards of directors D) paying low attention to audits and spot checks

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 02-06 Explain how executives and employees seek to justify unethical behavior.

Source : Chapter 02 Test Bank > MC Qu. 92 One way through which companies reduce uneth...

207)

________ is the application of ethical standards to business behavior.

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-01 Define the term business ethics.

Source : Chapter 02 Test Bank > FB Qu. 93 ________ is the application of ethical standard...

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208)

A(n) ________ is someone with a share or interest in a business enterprise.

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-02 Identify an organization's stakeholders.

Source : Chapter 02 Test Bank > FB Qu. 94 A(n) ________ is someone with a share or intere...

209)

The combination of two contradictory terms, such as "deafening silence" or "jumbo shrimp," is a(n) ________.

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-03 Discuss the position that business ethics is an oxymoron.

Source : Chapter 02 Test Bank > FB Qu. 95 The combination of two contradictory terms, ...

210)

The system by which business corporations are directed and controlled is termed ________.

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-03 Discuss the position that business ethics is an oxymoron.

Source : Chapter 02 Test Bank > FB Qu. 96 The system by which business corporations ar...

211)

A ________ is a company's written standards of ethical behavior that are designed to guide managers and employees in making the decisions and choices they face every day.

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-03 Discuss the position that business ethics is an oxymoron.

Source : Chapter 02 Test Bank > FB Qu. 97 A ________ is a company's written standards of...

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212)

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

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-05 Identify and propose a resolution for an ethical dilemma in your work envi Source : Chapter 02 Test Bank > FB Qu. 98 A situation in which there is no obvious rig...

213)

What are the perspectives from which business ethics can be approached?

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 02-01 Define the term business ethics.

Source : Chapter 02 Test Bank > ES Qu. 99 What are the perspectives from which busines...

214)

What function does an organization's code of ethics perform?

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 02-03 Discuss the position that business ethics is an oxymoron.

Source : Chapter 02 Test Bank > ES Qu. 100 What function does an organization's code of...

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215)

How does the Ethics Resource Center (ERC) define a code of ethics?

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 02-03 Discuss the position that business ethics is an oxymoron.

Source : Chapter 02 Test Bank > ES Qu. 101 How does the Ethics Resource Center (ERC) de...

216)

Discuss five major changes that have taken place in the business environment over the last five decades.

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 02-04 Summarize the history of business ethics.

Source : Chapter 02 Test Bank > ES Qu. 102 Discuss five major changes that have taken p...

217)

What are the three principles available to resolve an ethical dilemma? Are they always successful?

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 02-05 Identify and propose a resolution for an ethical dilemma in your work envi Source : Chapter 02 Test Bank > ES Qu. 103 What are the three principles available to r...

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218)

What are the types of conflicts one would deal with while resolving an ethical dilemma?

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 02-05 Identify and propose a resolution for an ethical dilemma in your work envi Source : Chapter 02 Test Bank > ES Qu. 104 What are the types of conflicts one would de...

219)

Describe the four commonly held rationalizations, identified by Saul Gellerman, which can lead to misconduct.

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 02-06 Explain how executives and employees seek to justify unethical behavior.

Source : Chapter 02 Test Bank > ES Qu. 105 Describe the four commonly held rationalizat...

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Answer Key Test name: chapter 2 1) TRUE 2) FALSE

Business ethics can be approached from two distinct perspectives: descriptive and normative.

3) FALSE

Business ethics should not be applied as a separate set of moral standards or ethical concepts from general ethics. Ethical behavior, it is argued, should be the same both inside and outside a business situation.

4) FALSE

Ethical behavior, it is argued, should be the same both inside and outside a business situation.

5) 6) 7) 8) 9)

TRUE TRUE TRUE TRUE FALSE The interests of the creditors of an organization include repayment of debt according to an agreed upon schedule and principal and interest payments.

10) FALSE

Unethical corporate behavior impacts different stakeholders in different ways.

11) FALSE

Unethical corporate behavior could impact a community negatively if it were to lead to an economic decline.

12) TRUE 13) TRUE 14) TRUE 15) TRUE 16) FALSE

The standard of corporate governance appears to be at the lowest level in business history.

Several prominent organizations (all former "Wall Street darlings")—Enron, WorldCom, Lehman Brothers, Bear Stearns—have been found to have hidden the true state of their precarious finances from their stakeholders.

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17) FALSE

An oxymoron is the combination of two contradictory terms, such as "deafening silence" or "jumbo shrimp."

18) TRUE 19) TRUE 20) FALSE

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

21) TRUE 22) TRUE 23) TRUE 24) TRUE 25) TRUE 26) FALSE

As a message to its stakeholders, an organization's code of ethics should represent a clear corporate commitment to the highest standards of ethical behavior.

27) FALSE

As an internal document, a code of ethics should represent a clear guide to managers and employees for making the decisions and choices they face every day.

28) FALSE

As an internal document, a code of ethics should represent a clear guide to managers and employees for making the decisions and choices they face every day.

29) TRUE 30) FALSE

Corporate ethics has moved from the domain of legal and human resource departments into the organizational mainstream with the appointment of corporate ethics officers with clear mandates.

31) FALSE

Codes of ethics have matured from cosmetic public relations documents into performance measurement documents that an increasing number of organizations are now committing to share with all their stakeholders.

32) FALSE

During the 1970s, major scandals drew attention to unethical conduct.

33) TRUE

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34) TRUE 35) TRUE 36) TRUE 37) FALSE

International ethics centers that serve the needs of global businesses were formed in the 2000s.

38) TRUE 39) FALSE

Once the type of a particular ethical conflict has been determined, there are three resolution principles available: ends-based, rules-based, and the Golden Rule.

40) FALSE

If one utilizes the ends-based principle to resolve an ethical dilemma, one would consider which decision would provide the greatest good for the greatest number of people.

41) FALSE

If one utilizes the rules-based resolution principle, one would ask what would happen if everyone made the same decision as him or her.

42) FALSE

When trying to resolve an ethical dilemma, the Golden Rule resolution principle considers "Do unto others as you would have them do unto you."

43) FALSE

None of the three resolution principles for solving ethical dilemmas can be said to offer a perfect solution or resolution to a problem since the reactions of the other people involved in the scenario cannot be predicted.

44) FALSE

None of the resolution principles can be said to offer a perfect solution or resolution to a problem since one cannot possibly predict the reactions of the other people involved in a truth versus loyalty conflict.

45) FALSE

The notion that anything that isn't specifically labeled as wrong must be OK is an open invitation for ethically challenged employers and employees.

46) TRUE 47) FALSE

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Companies engaged in unethical behavior—willingly or otherwise—may protect the identity of the personnel involved but only for as long as it is in the company’s best interests to do so. Once that transgression is made public and regulatory bodies get involved, most cases would seem to suggest that the situation rapidly becomes one of every man for himself.

48) C 49) A 50) A 51) C 52) D 53) D 54) D 55) A 56) A 57) A 58) A 59) D 60) C 61) C 62) D 63) B 64) B 65) B 66) A 67) B 68) A 69) C 70) A 71) C 72) B 73) B 74) A 75) D 76) D 77) D 78) A 79) B 80) C 81) C 82) C

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83) D 84) A 85) A 86) A 87) B 88) D 89) C 90) B 91) B 92) B 93) Business ethics 94) stakeholder 95) oxymoron 96) corporate governance 97) code of ethics 98) ethical dilemma 99) Essay

Business ethics can be approached from two distinct perspectives: descriptive and normative.

The descriptive perspective is a summation of the customs, attitudes, and rules that are observed within a business. It simply documents what is happening in a business.

The normative (or prescriptive) perspective evaluates the degree to which the observed customs, attitudes, and rules within a business can be said to be ethical. It is concerned with recommending what should be happening in a business.

100)

Essay A code of ethics serves a dual function. As a message to an organization's stakeholders, the code should represent a clear corporate commitment to the highest standards of ethical behavior. As an internal document, the code should represent a clear guide to managers and employees for making the decisions they face every day. A good code of ethics should be structured to liberate and empower people to make more effective decisions with greater confidence.

101)

Essay The Ethics Resource Center (ERC) defines a code of ethics as a central guide to support day-today decision making at work. It clarifies the cornerstones of an organization—its mission, values and principles—helping managers, employees, and stakeholders understand how these cornerstones translate into everyday decisions, behaviors, and actions. The best codes are structured to liberate and empower people to make more effective decisions with greater confidence.

102)

Essay

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Several major changes have taken place in the business environment over the last five decades.

The increased presence of an employee voice has made individual employees feel more comfortable speaking out against actions of their employers that they feel to be irresponsible or unethical. They are also more willing to seek legal resolution for such issues as unsafe working conditions, harassment, discrimination, and invasion of privacy. The issue of corporate social responsibility has advanced from an abstract debate to a core performance-assessment issue with clearly established legal liabilities. Corporate ethics has moved from the domain of legal and human resource departments into the organizational mainstream with the appointment of corporate ethics officers with clear mandates. Codes of ethics have matured from cosmetic public relations documents into performance measurement documents that an increasing number of organizations are now committing to share with all their stakeholders. The 2002 Sarbanes-Oxley Act has introduced greater accountability for chief executive officers and boards of directors in signing off on the financial performance records of the organizations they represent.

103)

Essay Three resolution principles are available to resolve an ethical dilemma: Ends-based principle considers which decision would provide the greatest good for the greatest number of people.

Rules-based principle considers what would happen if everyone made the same decision as one would.

The Golden Rule considers doing unto others as one would have them do unto him or her.

None of these principles can be said to offer a perfect solution or resolution to a problem since the reactions of other people involved in the scenario cannot be predicted.

104)

Essay Resolution of an ethical dilemma can be achieved by first recognizing the type of conflict one is dealing with. The types of conflicts are as follows: If the conflict is regarding whether to tell the truth or remain loyal to the person or organization that is asking one not to reveal that truth, then it is a truth versus loyalty conflict.

If the conflict is regarding whether one's decision has a short-term consequence or a longer-term consequence, then it is a short term versus long term conflict.

If the conflict is regarding whether one perceives this issue as a question of dispensing justice or mercy, then it is a justice versus mercy conflict.

If the conflict is regarding whether one's choice will affect one individual or a wider group or community, then it is an individual versus community conflict.

1) Essay

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Four commonly held rationalizations, identified by Saul Gellerman, can lead to misconduct: A belief that an activity is within reasonable ethical and legal limits—that is, that it is not "really" illegal or immoral.

A belief that an activity is in a particular individual's or his or her corporation's best interests— that an individual would somehow be expected to undertake the activity.

A belief that an activity is safe because it will never be found out or publicized—the classic crime-and punishment issue of discovery.

A belief that because an activity helps a company, the company will condone it and even protect the person who engages in it.

Student name:__________ 220)

Shareholders lack interest in the ethical performance of an organization. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-01 Define organizational ethics.

Source : Chapter 03 Test Bank > TF Qu. 01 Shareholders lack interest in the ethical pe...

221)

Organizational culture can be defined as the values, beliefs, and norms shared by the employees as well as the competitors of that organization. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-01 Define organizational ethics.

Source : Chapter 03 Test Bank > TF Qu. 02 Organizational culture can be defined as the...

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222)

Finance assumes the supervisory role that oversees all operational functions of an organization. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-01 Define organizational ethics.

Source : Chapter 03 Test Bank > TF Qu. 03 Finance assumes the supervisory role that ov...

223)

As a line function, finance includes internal accounting personnel, external accounting personnel, and external auditors who are called upon to certify the accuracy of a company's financial statements. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-01 Define organizational ethics.

Source : Chapter 03 Test Bank > TF Qu. 04 As a line function, finance includes interna...

224)

An organization's operating culture represents the sum of all the policies and procedures, both written and informal. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-01 Define organizational ethics.

Source : Chapter 03 Test Bank > TF Qu. 05 An organization's operating culture represents the...

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225)

A value chain is composed of the key functional inputs that an organization provides in the transformation of raw materials into a delivered product or service. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-01 Define organizational ethics.

Source : Chapter 03 Test Bank > TF Qu. 06 A value chain is composed of the key functio...

226)

Finance, which is a primary activity of an organization's value chain, sources components and builds products for an organization. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-01 Define organizational ethics.

Source : Chapter 03 Test Bank > TF Qu. 07 Finance, which is a primary activity of an o...

227)

Marketing, sales, and customer service are identified as the key functions in a value chain. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-01 Define organizational ethics.

Source : Chapter 03 Test Bank > TF Qu. 08 Marketing, sales, and customer service are i...

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228)

Marketing (and advertising) is one of the key functions in a value chain. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-01 Define organizational ethics.

Source : Chapter 03 Test Bank > TF Qu. 09 Marketing (and advertising) is one of the ke...

229)

Distribution and marketing are line functions, supporting each of the key functional areas. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-01 Define organizational ethics.

Source : Chapter 03 Test Bank > TF Qu. 10 Distribution and marketing are line function...

230)

Information systems team coordinate the recruitment, training, and development of personnel for all aspects of an organization. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-01 Define organizational ethics.

Source : Chapter 03 Test Bank > TF Qu. 11 Information systems team coordinate the recr...

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231)

Research and development (R&D) professionals carry the responsibility for the future growth of an organization. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-02 Explain the respective ethical challenges facing the functional department Source : Chapter 03 Test Bank > TF Qu. 12 Research and development (R&D) professio...

232)

Given that research and development (R&D) teams do not interact directly with customers, the potential for ethical dilemmas is nonexistent. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Learning Objective : 03-02 Explain the respective ethical challenges facing the functional department Bloom's : Understand Difficulty : 2 Medium Source : Chapter 03 Test Bank > TF Qu. 13 Given that research and development (R&D...

233)

For a research and development (R&D) team, the real ethical dilemmas come when decisions are made about product quality. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-02 Explain the respective ethical challenges facing the functional department Source : Chapter 03 Test Bank > TF Qu. 14 For a research and development (R&D) tea...

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234)

The manufacturing process is responsible for ensuring that a product reaches the hands of a satisfied customer. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-02 Explain the respective ethical challenges facing the functional department Source : Chapter 03 Test Bank > TF Qu. 15 The manufacturing process is responsible for...

235)

Utilitarianism refers to the theory that suggests actions are taken out of duty and obligation to a purely moral ideal, rather than based on the needs of the situation. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-02 Explain the respective ethical challenges facing the functional department Source : Chapter 03 Test Bank > TF Qu. 16 Utilitarianism refers to the theory that sug...

236)

Universal ethics refers to ethical choices that offer the greatest good for the greatest number of people. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-02 Explain the respective ethical challenges facing the functional department Source : Chapter 03 Test Bank > TF Qu. 17 Universal ethics refers to ethical choices t...

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237)

Marketing professionals abide by a code of ethics adopted by the American Marketing Association. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-02 Explain the respective ethical challenges facing the functional department Source : Chapter 03 Test Bank > TF Qu. 18 Marketing professionals abide by a code of e...

238)

The code of ethics adopted by the American Marketing Association speaks about improving "customer confidence in the integrity of the marketing exchange system." ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-02 Explain the respective ethical challenges facing the functional department Source : Chapter 03 Test Bank > TF Qu. 19 The code of ethics adopted by the American M...

239)

The code of ethics adopted by the American Marketing Association (AMA) establishes clear ethical values of honesty, responsibility, fairness, respect, openness, and citizenship. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-02 Explain the respective ethical challenges facing the functional department Source : Chapter 03 Test Bank > TF Qu. 20 The code of ethics adopted by the American M...

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240)

Critics view utilitarianism as a manipulative process whereby unsuspecting customers are induced to buy products they do not really need. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Learning Objective : 03-02 Explain the respective ethical challenges facing the functional department Bloom's : Understand Difficulty : 2 Medium Source : Chapter 03 Test Bank > TF Qu. 21 Critics view utilitarianism as a manipu...

241)

The role of modern-day internal auditors is limited to the auditing function of an organization. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Learning Objective : 03-02 Explain the respective ethical challenges facing the functional department Bloom's : Understand Difficulty : 2 Medium Source : Chapter 03 Test Bank > TF Qu. 22 The role of modern-day internal auditors is ...

242)

Manufacturing teams are tasked with making a complex set of risk assessments and technical judgments in order to deliver a product design. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Learning Objective : 03-02 Explain the respective ethical challenges facing the functional department Bloom's : Understand Difficulty : 2 Medium Source : Chapter 03 Test Bank > TF Qu. 23 Manufacturing teams are tasked with making a...

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243)

The human resources function within an organization should ideally be directly involved in the marketing process of the organization. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-03 Discuss the position that a human resources (HR) department should be at t Source : Chapter 03 Test Bank > TF Qu. 24 The human resources function within an organ...

244)

Accountability for ethical transgressions lies with the human resources department as the corporate function that is legally responsible for ensuring that such things do not happen. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-03 Discuss the position that a human resources (HR) department should be at t Source : Chapter 03 Test Bank > TF Qu. 25 Accountability for ethical transgressions li...

245)

The human resources function within an organization should ideally be directly involved in the maintenance of the technology in the organization. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-03 Discuss the position that a human resources (HR) department should be at t Source : Chapter 03 Test Bank > TF Qu. 26 The human resources function within an organ...

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246)

The human resources function within an organization should ideally be directly involved in the creation of a career development program of an employee. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-03 Discuss the position that a human resources (HR) department should be at t Source : Chapter 03 Test Bank > TF Qu. 27 The human resources function within an organ...

247)

If an employee leaves a company, the human resources department is responsible for hosting an exit interview to ensure that anything that the organization can learn from the employee's departure is fed back into the company's strategic plan for future growth and development. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 03-03 Discuss the position that a human resources (HR) department should be at t Source : Chapter 03 Test Bank > TF Qu. 28 If an employee leaves a company, the human r...

248)

The human resources function within an organization seldom needs to be involved in the relationship between the company and an employee. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-03 Discuss the position that a human resources (HR) department should be at t Source : Chapter 03 Test Bank > TF Qu. 29 The human resources function within an organ...

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249)

The advocates of ethical business conduct argue that an organization's marketing team should be at the center of any corporate code of ethics. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-03 Discuss the position that a human resources (HR) department should be at t Source : Chapter 03 Test Bank > TF Qu. 30 The advocates of ethical business conduct ar...

250)

The advocates of ethical business conduct argue that an organization's human resources (HR) should be the sole creator of any corporate code of ethics. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-03 Discuss the position that a human resources (HR) department should be at t Source : Chapter 03 Test Bank > TF Qu. 31 The advocates of ethical business conduct ar...

251)

An organization's human resources (HR) must ensure that the leadership selection and development processes include an ethics component. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-03 Discuss the position that a human resources (HR) department should be at t Source : Chapter 03 Test Bank > TF Qu. 32 An organization's human resources (HR) must ensure...

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252)

An organization's human resources (HR) professionals must help ensure that ethics is a top organizational priority. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-03 Discuss the position that a human resources (HR) department should be at t Source : Chapter 03 Test Bank > TF Qu. 33 An organization's human resources (HR) professionals...

253)

Marketing professionals are responsible for ensuring that the right programs and policies for ethical business conduct are in place. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-03 Discuss the position that a human resources (HR) department should be at t Source : Chapter 03 Test Bank > TF Qu. 34 Marketing professionals are responsible for ...

254)

The human resources function of an organization can be divided into three distinct areas: financial transactions, auditing, and accounting function. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-04 Explain the potential ethical challenges presented by generally accepted a Source : Chapter 03 Test Bank > TF Qu. 35 The human resources function of an organizat...

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255)

The accounting function provides the certification, by an impartial third-party professional, that an organization's financial statements are accurate. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-04 Explain the potential ethical challenges presented by generally accepted a Source : Chapter 03 Test Bank > TF Qu. 36 The accounting function provides the certifi...

256)

The auditing function keeps track of all the financial transactions of an organization by documenting the money coming in and money going out and balancing the accounts at the end of the period. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-04 Explain the potential ethical challenges presented by generally accepted a Source : Chapter 03 Test Bank > TF Qu. 37 The auditing function keeps track of all the...

257)

The accounting profession is governed by a set of laws and established legal precedents. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-04 Explain the potential ethical challenges presented by generally accepted a Source : Chapter 03 Test Bank > TF Qu. 38 The accounting profession is governed by a s...

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258)

It is illegal to defer receipts from one quarter to the next to manage one's tax liabilities. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-04 Explain the potential ethical challenges presented by generally accepted a Source : Chapter 03 Test Bank > TF Qu. 39 It is illegal to defer receipts from one qua...

259)

Some of the illegal financial functions carried out by an organization include underreporting income, overvaluing assets, and taking questionable deductions. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-04 Explain the potential ethical challenges presented by generally accepted a Source : Chapter 03 Test Bank > TF Qu. 40 Some of the illegal financial functions carr...

260)

When a company's financial statements have been certified by an objective third-party to be "clean," that certification is meant to be for the public's benefit rather than the company's benefit. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 03-04 Explain the potential ethical challenges presented by generally accepted a Source : Chapter 03 Test Bank > TF Qu. 41 When a company's financial statements have been certified...

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261)

The obligation that an auditing firm has to a paying client while owing an objective, third-party assessment of that client's financial stability to stakeholders and potential investors represents a potentially significant conflict of interest. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-05 Determine potential conflicts of interest within any organizational functi Source : Chapter 03 Test Bank > TF Qu. 42 The obligation that an auditing firm has to ...

262)

A situation in which one relationship or obligation places an individual or firm in direct conflict with an existing relationship or obligation refers to a conflict of interest. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-05 Determine potential conflicts of interest within any organizational functi Source : Chapter 03 Test Bank > TF Qu. 43 A situation in which one relationship or obl...

263)

Selling a product that has the potential to be harmful to a firm's customers represents a significant conflict of interest. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-05 Determine potential conflicts of interest within any organizational functi Source : Chapter 03 Test Bank > TF Qu. 44 Selling a product that has the potential to ...

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264)

Nonprofit organizations do not face problems with unethical behavior. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-05 Determine potential conflicts of interest within any organizational functi Source : Chapter 03 Test Bank > TF Qu. 45 Nonprofit organizations do not face problems...

265)

Profits are the main reason behind stretching the truth and bending the rules that have become a regular occurrence in a workplace. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-05 Determine potential conflicts of interest within any organizational functi Source : Chapter 03 Test Bank > TF Qu. 46 Profits are the main reason behind stretchin...

266)

Selling a product that has the potential to be harmful to the environment carries a conflict of interest. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-05 Determine potential conflicts of interest within any organizational functi Source : Chapter 03 Test Bank > TF Qu. 47 Selling a product that has the potential to ...

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267)

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

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

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

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

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

Question Details Accessibility : Keyboard Navigation Learning Objective : 03-01 Define organizational ethics.

Bloom's : Understand Difficulty : 2 Medium Source : Chapter 03 Test Bank > MC Qu. 48 Identify a true statement about a company's org...

268)

Which of the following statements is true of organizational culture?

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

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

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

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

Question Details Accessibility : Keyboard Navigation Learning Objective : 03-01 Define organizational ethics.

Bloom's : Understand Difficulty : 2 Medium Source : Chapter 03 Test Bank > MC Qu. 49 Which of the following statements is true of...

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269)

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

A) ethical relativism B) value chain C) organizational culture D) corporate conscience

Question Details Accessibility : Keyboard Navigation Learning Objective : 03-01 Define organizational ethics.

Bloom's : Apply Difficulty : 3 Hard Source : Chapter 03 Test Bank > MC Qu. 50 Anderson Enterprises endorses low power dist...

270)

Ariana is responsible for data transfer and security, e-mail communications, and individual hardware and software needs of the company she works for. Which of the following functional areas of an organization do Ariana's responsibilities represent?

A) human resource management B) marketing C) information systems D) research and development

Question Details Accessibility : Keyboard Navigation Learning Objective : 03-01 Define organizational ethics.

Bloom's : Apply Difficulty : 3 Hard Source : Chapter 03 Test Bank > MC Qu. 51 Ariana is responsible for data transfer and ...

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271)

Identify a true statement about value chain.

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

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

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

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

Question Details Accessibility : Keyboard Navigation Learning Objective : 03-01 Define organizational ethics.

Bloom's : Understand Difficulty : 2 Medium Source : Chapter 03 Test Bank > MC Qu. 52 Identify a true statement about value chain.

272)

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

A) value chain B) cognitive work analysis C) dynamic simulation D) corporate governance

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-01 Define organizational ethics.

Source : Chapter 03 Test Bank > MC Qu. 53 A composition of the key functional inputs t...

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273)

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

A) human resources management B) general administration C) systems development D) sales and marketing

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-01 Define organizational ethics.

Source : Chapter 03 Test Bank > MC Qu. 54 According to the value chain of an organizat...

274)

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

A) human resources management B) recruitment and remuneration management C) supply chain management D) organizational development management

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-01 Define organizational ethics.

Source : Chapter 03 Test Bank > MC Qu. 55 A primary activity of an organization accord...

275)

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

A) marketing B) general administration C) distribution D) customer service

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-01 Define organizational ethics.

Source : Chapter 03 Test Bank > MC Qu. 56 In the context of the value chain of an orga...

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276)

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

A) marketing B) supply chain management C) distribution D) human resources management

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-01 Define organizational ethics.

Source : Chapter 03 Test Bank > MC Qu. 57 In the context of the value chain of an orga...

277)

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

A) Technology B) Manufacturing C) Supply chain management D) Distribution

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-01 Define organizational ethics.

Source : Chapter 03 Test Bank > MC Qu. 58 ________ serves as a support line function to k...

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278)

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

A) Advertising B) Supply chain management C) Human resources management D) Distribution

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-01 Define organizational ethics.

Source : Chapter 03 Test Bank > MC Qu. 59 ________ serves as a support line function to k...

279)

The ________ is responsible for creating product designs.

A) human resources department B) marketing team C) research and development team D) manufacturing department

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-01 Define organizational ethics.

Source : Chapter 03 Test Bank > MC Qu. 60 The ________ is responsible for creating produc...

280)

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

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

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

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

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

Question Details Accessibility : Keyboard Navigation Learning Objective : 03-01 Define organizational ethics.

Bloom's : Understand Difficulty : 2 Medium Source : Chapter 03 Test Bank > MC Qu. 61 Which of the following statements is true of...

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281)

The research and development (R&D) department of an organization A) is solely responsible for creating employees' career development programs.

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

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

D) is the most important department of the organization.

Question Details Accessibility : Keyboard Navigation Learning Objective : 03-02 Explain the respective ethical challenges facing the functional department Bloom's : Understand Difficulty : 2 Medium Source : Chapter 03 Test Bank > MC Qu. 62 The research and development (R&D) depar...

282)

Marketing professionals are responsible for A) providing products to customers.

B) developing and creating product designs.

C) recruiting and selecting candidates for a position.

D) tracking the financial transactions of a company.

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-02 Explain the respective ethical challenges facing the functional department Source : Chapter 03 Test Bank > MC Qu. 63 Marketing professionals are responsible for

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283)

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

A) incorporate customer feedback from market research and competitive feedback from closely monitoring the organization's competition B) coordinate the recruitment, training, and development of personnel for all aspects of the organization C) audit and certify the accuracy of the company's financial statements D) maintain the technological backbone of the organization

Question Details Accessibility : Keyboard Navigation Learning Objective : 03-02 Explain the respective ethical challenges facing the functional department Bloom's : Apply Difficulty : 3 Hard Source : Chapter 03 Test Bank > MC Qu. 64 Brendon joins Almer Inc. as the head of the ...

284)

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

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

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

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

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

Question Details Accessibility : Keyboard Navigation Learning Objective : 03-02 Explain the respective ethical challenges facing the functional department Bloom's : Apply Difficulty : 3 Hard Source : Chapter 03 Test Bank > MC Qu. 65 Cathy heads the research and development (R&...

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285)

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

A) managing individual hardware and software needs that are specific to the organization B) ensuring that the products reach the hands of a satisfied customer C) coordinating the recruitment, promotion, and remuneration of the employees D) auditing and certifying the accuracy of the company's financial statements

Question Details Accessibility : Keyboard Navigation Learning Objective : 03-02 Explain the respective ethical challenges facing the functional department Bloom's : Apply Difficulty : 3 Hard Source : Chapter 03 Test Bank > MC Qu. 66 Exotic Crafts Inc., a handicraft manufacturi...

286)

Which of the following statements is true of marketing?

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

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

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

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

Question Details Accessibility : Keyboard Navigation Learning Objective : 03-02 Explain the respective ethical challenges facing the functional department Bloom's : Understand Difficulty : 2 Medium Source : Chapter 03 Test Bank > MC Qu. 67 Which of the following statements is true of...

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287)

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

A) Deontology B) Utilitarianism C) Virtue ethics D) State consequentialism

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-02 Explain the respective ethical challenges facing the functional department Source : Chapter 03 Test Bank > MC Qu. 68 ________ is represented by ethical choices that...

288)

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

A) utilitarianism B) virtue ethics C) consequentialism D) universal ethics

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-02 Explain the respective ethical challenges facing the functional department Source : Chapter 03 Test Bank > MC Qu. 69 Actions that are taken out of duty and oblig...

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289)

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

A) pragmatic ethics B) virtue ethics C) normative ethics D) universal ethics

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-02 Explain the respective ethical challenges facing the functional department Source : Chapter 03 Test Bank > MC Qu. 70 Actions placed within a strictly moral conte...

290)

Marketing professionals abide by a code of ethics adopted by the ________.

A) Society for Marketing Resources B) American Marketing Association C) American Ethics Association D) Marketers' Ethics Resource Center

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-02 Explain the respective ethical challenges facing the functional department Source : Chapter 03 Test Bank > MC Qu. 71 Marketing professionals abide by a code of e...

291)

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

A) American Counseling Association (ACA) B) Society for Marketing Resources C) American Marketing Association (AMA) D) Marketing Research Association (MRA)

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-02 Explain the respective ethical challenges facing the functional department Source : Chapter 03 Test Bank > MC Qu. 72 The code of ethics adopted by the ________ spea...

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292)

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

A) appraisers B) marketers C) decision analysts D) purchasing managers

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-02 Explain the respective ethical challenges facing the functional department Source : Chapter 03 Test Bank > MC Qu. 73 In an organization, ________ see themselves as ...

293)

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

A) consequentialism B) pragmatism C) utilitarianism D) subjectivism

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-02 Explain the respective ethical challenges facing the functional department Source : Chapter 03 Test Bank > MC Qu. 74 The marketing challenge is more directly ali...

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294)

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

A) it goes public by selling stock in the organization on a public stock exchange B) it needs to recruit a large number of employees C) it has to increase its corporate social responsibility (CSR) activities D) it is being charged of fraudulent practices by its employees and shareholders

Question Details Accessibility : Keyboard Navigation Learning Objective : 03-02 Explain the respective ethical challenges facing the functional department Bloom's : Understand Difficulty : 2 Medium Source : Chapter 03 Test Bank > MC Qu. 75 The need for certified financial documents a...

295)

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

A) to interact with customers regarding the organizations' products B) to conduct internal training needs assessment C) to allocate personnel on specific duties D) to monitor the accuracy of financial functions

Question Details Accessibility : Keyboard Navigation Learning Objective : 03-02 Explain the respective ethical challenges facing the functional department Bloom's : Understand Difficulty : 2 Medium Source : Chapter 03 Test Bank > MC Qu. 76 Which of the following is the most likely re...

296)

Which of the following statements is true of internal auditors?

A) They are reluctant to take risks and prefer following old practices.

B) They work as freelancers with other organizations during their spare time.

C) They find it difficult to fulfill their roles because of their inability to multitask.

D) They are committed to growing and enhancing their skills.

Question Details Accessibility : Keyboard Navigation Learning Objective : 03-02 Explain the respective ethical challenges facing the functional department Bloom's : Understand Difficulty : 2 Medium Source : Chapter 03 Test Bank > MC Qu. 77 Which of the following statements is true of...

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297)

ThinkNow is an advertising firm based in Dallas, Texas. One of its departments is in charge of the hiring process and is responsible for the orientation of newly hired employees.

Which of the following organizational areas does this department represent?

A) finance B) human resources C) research and development D) information systems

Question Details Accessibility : Keyboard Navigation Learning Objective : 03-03 Discuss the position that a human resources (HR) department should be at t Bloom's : Apply Difficulty : 3 Hard Source : Chapter 03 Test Bank > MC Qu. 78 ThinkNow is an advertising firm based in Dal...

298)

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

A) research and development B) human resources C) consumer relations D) marketing

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-03 Discuss the position that a human resources (HR) department should be at t Source : Chapter 03 Test Bank > MC Qu. 79 The efficient management of providing payrol...

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299)

Amanda heads the human resources department in Elenear Enterprises. The management has entrusted her with certain functions. Within the organization, Amanda should be directly involved in A) the marketing of the organization's products.

B) the maintenance of the technology in the organization.

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

D) the incorporation of customer feedback and competitive feedback.

Question Details Accessibility : Keyboard Navigation Learning Objective : 03-03 Discuss the position that a human resources (HR) department should be at t Bloom's : Apply Difficulty : 3 Hard Source : Chapter 03 Test Bank > MC Qu. 80 Amanda heads the human resources department ...

300)

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

A) incorporation of customer feedback and competitive feedback B) maintenance of the technology in the organization C) marketing of the organization's products D) documentation of periodic performance reviews

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-03 Discuss the position that a human resources (HR) department should be at t Source : Chapter 03 Test Bank > MC Qu. 81 Which of the following is a human resources ...

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301)

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

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

B) the maintenance of the technology in the organization—data transfer and security, e-

mail communications, internal and external websites, and so on.

C) the marketing of the organization's products.

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

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-03 Discuss the position that a human resources (HR) department should be at t Source : Chapter 03 Test Bank > MC Qu. 82 Ideally, the human resources function within...

302)

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

A) research and development B) marketing C) finance D) human resources

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-03 Discuss the position that a human resources (HR) department should be at t Source : Chapter 03 Test Bank > MC Qu. 83 If an employee leaves a company, the ________ d...

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303)

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

A) ethical dilemma B) social loafing C) ethical transgression D) utilitarianism

Question Details Accessibility : Keyboard Navigation Learning Objective : 03-03 Discuss the position that a human resources (HR) department should be at t Bloom's : Apply Difficulty : 3 Hard Source : Chapter 03 Test Bank > MC Qu. 84 Walter's Inc., a cement manufacturing firm, fails to me...

304)

When an employee is parting ways with a company, the human resources department should ensure that A) the employee provides a valid reason for resignation.

B) an exit interview is arranged for the employee.

C) project tasks assigned to the employee are completed before departure.

D) the employee trains the new employee who is hired for the position.

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-03 Discuss the position that a human resources (HR) department should be at t Source : Chapter 03 Test Bank > MC Qu. 85 When an employee is parting ways with a comp...

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305)

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

A) sideline issues related to ethics B) ensure that ethics is given the least priority C) not include an ethics component in the leadership selection process D) not be the sole creator of the code

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 03-03 Discuss the position that a human resources (HR) department should be at t Source : Chapter 03 Test Bank > MC Qu. 86 An argument made by the advocates of ethical...

306)

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

A) auditing function B) compliance function C) accounting function D) financial transactions function

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-04 Explain the potential ethical challenges presented by generally accepted a Source : Chapter 03 Test Bank > MC Qu. 87 The ________ keeps track of a company's financial transaction...

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307)

The certification of an organization's financial statements or books, by an impartial thirdparty professional, as being accurate is offered by the ________.

A) auditing function B) compliance function C) accounting function D) financial transactions function

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-04 Explain the potential ethical challenges presented by generally accepted a Source : Chapter 03 Test Bank > MC Qu. 88 The certification of an organization's financia...

308)

The accounting profession is governed by a set of ________.

A) generally accepted accounting principles B) laws for accounting C) established legal precedents for accounting D) universal ethics

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-04 Explain the potential ethical challenges presented by generally accepted a Source : Chapter 03 Test Bank > MC Qu. 89 The accounting profession is governed by a s...

309)

Which of the following represents a legal accounting practice?

A) taking questionable deductions B) overvaluing assets C) deferring receipts from one quarter to the next to manage tax liability D) underreporting income to decrease the amount paid as taxes

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-04 Explain the potential ethical challenges presented by generally accepted a Source : Chapter 03 Test Bank > MC Qu. 90 Which of the following represents a legal ac...

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310)

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

A) International Association of Public Accountants B) Certified Public Accountants Association C) Accounting Institute of Ethical Conduct D) American Institute of Certified Public Accountants

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-04 Explain the potential ethical challenges presented by generally accepted a Source : Chapter 03 Test Bank > MC Qu. 91 For the accounting profession, the last reso...

311)

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

A) Disconfirmed expectancy B) Conflict of interest C) Right of option D) Moral hazard

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-05 Determine potential conflicts of interest within any organizational functi Source : Chapter 03 Test Bank > MC Qu. 92 ________ is defined as a situation where one re...

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312)

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

A) a disconfirmed expectancy B) a conflict of interest C) emotional contagion D) social loafing

Question Details Accessibility : Keyboard Navigation Learning Objective : 03-05 Determine potential conflicts of interest within any organizational functi Bloom's : Apply Difficulty : 3 Hard Source : Chapter 03 Test Bank > MC Qu. 93 A company is of the view that what is best f...

313)

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

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

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

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

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

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 03-05 Determine potential conflicts of interest within any organizational functi Source : Chapter 03 Test Bank > MC Qu. 94 Which of the following statements is true of...

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314)

In an organization, conflict of interest is most likely to occur when A) the organization's product has the potential to be harm-ful to the organization's customers.

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

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

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

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 03-05 Determine potential conflicts of interest within any organizational functi Source : Chapter 03 Test Bank > MC Qu. 95 In an organization, conflict of interest is ...

315)

________ can be defined as the values, beliefs, and norms shared by all the employees of an organization.

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-01 Define organizational ethics.

Source : Chapter 03 Test Bank > FB Qu. 96 ________ can be defined as the values, beliefs,...

316)

A(n) ________ is composed of the key functional inputs that an organization provides during the transformation of raw materials into a delivered product or service.

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-01 Define organizational ethics.

Source : Chapter 03 Test Bank > FB Qu. 97 A(n) ________ is composed of the key functional...

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317)

Ethical choices that offer the greatest good for the greatest number of people refer to the theory of ________.

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-02 Explain the respective ethical challenges facing the functional department Source : Chapter 03 Test Bank > FB Qu. 98 Ethical choices that offer the greatest good...

318)

Actions that are taken out of duty and obligation to a purely moral ideal, rather than based on the needs of a situation, since the principles are seen to apply to everyone, everywhere, and all the time are termed ________.

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-02 Explain the respective ethical challenges facing the functional department Source : Chapter 03 Test Bank > FB Qu. 99 Actions that are taken out of duty and oblig...

319)

The ________ function of an organization keeps track of the company's financial transactions by documenting the money coming in and going out and by balancing the accounts at the end of the period.

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-02 Explain the respective ethical challenges facing the functional department Source : Chapter 03 Test Bank > FB Qu. 100 The ________ function of an organization keeps ...

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320)

The ________ function of an organization refers to the certification of the organization's financial statements or books as being accurate by an impartial third-party professional.

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-02 Explain the respective ethical challenges facing the functional department Source : Chapter 03 Test Bank > FB Qu. 101 The ________ function of an organization refers...

321)

The ________ is a set of principles that governs the accounting profession.

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-04 Explain the potential ethical challenges presented by generally accepted a Source : Chapter 03 Test Bank > FB Qu. 102 The ________ is a set of principles that govern...

322)

A situation in which one relationship or obligation places the individual or organization in direct conflict with an existing relationship or obligation is referred to as a(n) ________.

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-05 Determine potential conflicts of interest within any organizational functi Source : Chapter 03 Test Bank > FB Qu. 103 A situation in which one relationship or obl...

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323)

What is a value chain? Identify the key functions of a company's value chain.

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 03-01 Define organizational ethics.

Source : Chapter 03 Test Bank > ES Qu. 104 What is a value chain? Identify the key func...

324)

Discuss the potential ethical dilemmas associated with manufacturing.

Question Details Accessibility : Keyboard Navigation Learning Objective : 03-02 Explain the respective ethical challenges facing the functional department Bloom's : Understand Difficulty : 2 Medium Source : Chapter 03 Test Bank > ES Qu. 105 Discuss the potential ethical dilemmas assoc...

325)

Differentiate between the accounting function and the auditing function of an organization.

Question Details Accessibility : Keyboard Navigation Learning Objective : 03-02 Explain the respective ethical challenges facing the functional department Bloom's : Understand Difficulty : 2 Medium Source : Chapter 03 Test Bank > ES Qu. 106 Differentiate between the accounting functio...

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326)

List five responsibilities of the human resources function of an organization.

Question Details Accessibility : Keyboard Navigation Learning Objective : 03-02 Explain the respective ethical challenges facing the functional department Bloom's : Understand Difficulty : 2 Medium Source : Chapter 03 Test Bank > ES Qu. 107 List five responsibilities of the human reso...

327)

Discuss the statement that an organization's human resources (HR) should be at the center of any corporate code of ethics.

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 03-03 Discuss the position that a human resources (HR) department should be at t Source : Chapter 03 Test Bank > ES Qu. 108 Discuss the statement that an organization's huma...

328)

Discuss the pressures placed on an organization's accounting department to maintain creative bookkeeping techniques.

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 03-04 Explain the potential ethical challenges presented by generally accepted a Source : Chapter 03 Test Bank > ES Qu. 109 Discuss the pressures placed on an organizat...

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329)

Discuss conflict of interest with an example.

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 03-05 Determine potential conflicts of interest within any organizational functi Source : Chapter 03 Test Bank > ES Qu. 110 Discuss conflict of interest with an example...

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Answer Key Test name: chapter 3 1) FALSE

Business ethics is proposed as an area of study separate from the general subject of ethics because the other parties (the stakeholders) have a vested interest in the ethical performance of an organization.

2) FALSE

Organizational culture can be defined as the values, beliefs, and norms shared by all the employees of that organization.

3) FALSE

Management assumes the supervisory role that oversees all operational functions of an organization.

4) 5) 6) 7)

TRUE TRUE TRUE FALSE Manufacturing, a primary activity of an organization's value chain, sources components and builds products for an organization.

8) TRUE 9) TRUE 10) FALSE

Human resources management and information systems are line functions, supporting each of the key functional areas.

11) FALSE

Human resources management (HRM) coordinates the recruitment, training, and development of personnel for all aspects of an organization.

12) TRUE 13) FALSE

Research and development (R&D) teams incorporate customer feedback from market research, and employees in each area of an organization can face ethical challenges and dilemmas which can be unique to their departmental responsibilities. For the R&D team, the real ethical dilemmas come when decisions are made about product quality.

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14) TRUE 15) FALSE

The marketing process is responsible for ensuring that a product reaches the hands of a satisfied customer.

16) FALSE

Utilitarianism is the theory that refers to ethical choices that offer the greatest good for the greatest number of people.

17) FALSE

Universal ethics refers to actions that are taken out of duty and obligation to a purely moral ideal, rather than based on the needs of the situation, since the universal principles are seen to apply to everyone, everywhere, all the time.

18) TRUE 19) TRUE 20) TRUE 21) FALSE

Critics of marketing tend to see marketing as a manipulative process whereby unsuspecting customers are induced to buy products they do not really need and could quite easily live without.

22) FALSE

Modern-day internal auditors are consulted on all aspects of the organization and must be prepared for just about anything. They are coaches, internal and external stakeholder advocates, risk managers, controls experts, efficiency specialists, and problem-solving partners.

23) FALSE

Research and development teams are tasked with making a complex set of risk assessments and technical judgments in order to deliver a product design.

24) FALSE

The human resources function within an organization should ideally be directly involved in the orientation of newly hired employees.

25) TRUE 26) FALSE

The human resources function within an organization should ideally be directly involved in the documentation of periodic performance reviews.

27) TRUE

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28) TRUE 29) FALSE

The human resources function within an organization needs to be directly involved in the relationship between the company and an employee.

30) FALSE

The advocates of ethical business conduct argue that an organization's human resources should be at the center of any corporate code of ethics.

31) FALSE

The advocates of ethical business conduct argue that human resources (HR) should not be the sole creator of the code of ethics since it is a document that should represent the entire organization.

32) TRUE 33) TRUE 34) FALSE

Human resources professionals are responsible for ensuring that the right programs and policies for ethical business conduct are in place.

35) FALSE

The finance function of an organization can be divided into three distinct areas: financial transactions, accounting, and auditing.

36) FALSE

The accounting function keeps track of all the company's financial transactions by documenting the money coming in and money going out and balancing the accounts at the end of the period.

37) FALSE

The auditing function provides the certification, by an impartial third-party professional, that an organization's financial statements are accurate.

38) FALSE

The accounting profession is governed not by a set of laws and established legal precedents but by a set of generally accepted accounting principles, typically referred to as GAAP. 39) FALSE

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It is legal to defer receipts from one quarter to the next to manage one's tax liability. However, accountants face ethical challenges when requests are made for far more illegal practices, such as falsifying accounts, underreporting income, overvaluing assets, and taking questionable deductions.

40) TRUE 41) TRUE 42) TRUE 43) TRUE 44) TRUE 45) FALSE

Profits are the main reason behind stretching the truth and bending the rules that have become a regular occurrence in any workplace. This does not mean that nonprofit organizations do not face problems with unethical behavior or that the pursuit of profit is unethical.

46) TRUE 47) TRUE 48) A 49) B 50) C 51) C 52) C 53) A 54) D 55) C 56) B 57) D 58) A 59) C 60) C 61) D 62) C 63) A 64) A 65) D 66) B 67) C 68) B 69) D 70) D 71) B

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72) C 73) B 74) C 75) A 76) D 77) D 78) B 79) B 80) C 81) D 82) A 83) D 84) C 85) B 86) D 87) C 88) A 89) A 90) C 91) D 92) B 93) B 94) B 95) A 96) Organizational culture 97) value chain 98) utilitarianism 99) universal ethics 100) accounting 101) auditing 102) generally accepted accounting principles 103) conflict of interest 104) Essay

A value chain is composed of the key functional inputs that an organization provides in the transformation of raw materials into a delivered product or service. Traditionally, these key functions are identified as research and development (R&D), manufacturing, marketing (and advertising), sales, and customer service.

105)

Essay

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The pressures in manufacturing are very similar to those in the research and development function as manufacturers face the ethical question, "Do you want it built fast, or do you want it built right?" From an organizational perspective, the firm would want both, especially if it knows that its biggest competitor also is racing to put a new product on the market. The firm also faces the ethical challenges inherent in arriving at a compromise—which corners can be cut and by how much.

106)

Essay The accounting function keeps track of a company's financial transactions by documenting the money coming in (credits) and money going out (debits) and balancing the accounts at the end of the period (daily, weekly, monthly, quarterly, or annually). The auditing function involves the certification of an organization's financial statements, or "books," as being accurate by an impartial third-party professional. An organization can be large enough to have internal auditors on staff as well as using external professionals—typically certified professional accountants and/or auditing specialists.

107)

Essay Some of the responsibilities of the human resources function of an organization are creating the job description for a position, recruiting and selecting the right candidate for a position, orientating a newly hired employee, creating a career development program for an employee, documenting periodic performance reviews, etc.

108)

Essay Many advocates of ethical business conduct argue that an organization's HR should be at the center of any corporate code of ethics—not as the sole creator of the code, since it is a document that should represent the entire organization, but certainly as the voice of reason in ensuring that all the critical areas are addressed. HR professionals must help ensure that ethics is a top organizational priority. HR must ensure that the leadership selection and development processes include an ethics component. HR is responsible for ensuring that the right programs and policies are in place. HR must stay abreast of ethics issues (and in particular the changing legislation and sentencing guidelines for unethical conduct).

109)

Essay

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Corporations try to manage their expansion at a steady rate of growth. If they grow too slowly or too erratically from year to year, investors may see these groups as unstable or in danger of falling behind the competition. If corporations grow too quickly, investors may develop unrealistic expectations of future growth. This inflated outlook can have a devastating effect on a corporation's stock price if quarterly numbers are not met. Investors have shown a pattern of overreacting to bad news by dumping their stock.

It is legal to defer receipts from one quarter to the next to manage tax liability. However, accountants face ethical challenges when requests are made for far more illegal practices, such as falsifying accounts, underreporting income, overvaluing assets, and taking questionable deductions.

110)

Essay A situation in which one relationship or obligation places the individual or firm in direct conflict with an existing relationship or obligation is referred to as a conflict of interest.

For example, selling a product that has the potential to be harmful to a firm's customers represents a significant conflict of interest.

Student name:__________ 330)

Corporate ethics refers to the actions of an organization that are targeted toward achieving a social benefit over and above maximizing profits for its shareholders and meeting all its legal obligations. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-01 Describe and explain corporate social responsibility (CSR).

Source : Chapter 04 Test Bank > TF Qu. 01 Corporate ethics refers to the actions of an...

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331)

Corporate citizenship is an element of corporate social responsibility (CSR). ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-01 Describe and explain corporate social responsibility (CSR).

Source : Chapter 04 Test Bank > TF Qu. 02 Corporate citizenship is an element of corpo...

332)

Apart from achieving a social benefit over and above maximizing profits for its shareholders, corporate social responsibility also requires an organization to meet all its legal obligations. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Learning Objective : 04-01 Describe and explain corporate social responsibility (CSR).

Bloom's : Understand Difficulty : 2 Medium Source : Chapter 04 Test Bank > TF Qu. 03 Apart from achieving a social benefit over a...

333)

Corporate conscience implies that an organization operates with an awareness of its social and legal obligations to society. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-01 Describe and explain corporate social responsibility (CSR).

Source : Chapter 04 Test Bank > TF Qu. 04 Corporate conscience implies that an organiz...

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334)

The definition of corporate social responsibility (CSR) assumes that the managers of the corporation are committed to an aggressive growth strategy while complying with all federal, state, and local legal obligations. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-01 Describe and explain corporate social responsibility (CSR).

Source : Chapter 04 Test Bank > TF Qu. 05 The definition of corporate social responsib...

335)

The employees of Brennerz Inc. are encouraged to cycle to work every day to reduce environmental pollution. The given scenario exemplifies corporate ethics. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Learning Objective : 04-01 Describe and explain corporate social responsibility (CSR).

Difficulty : 2 Medium Bloom's : Apply Source : Chapter 04 Test Bank > TF Qu. 06 The employees of Brennerz Inc. are encourage...

336)

Extabet Enterprises donates a certain percentage of their profit to local charities, but it does not comply with all the legal industry standards of operating in a safe working environment. This depicts corporate social responsibility (CSR). ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Learning Objective : 04-01 Describe and explain corporate social responsibility (CSR).

Difficulty : 2 Medium Bloom's : Apply Source : Chapter 04 Test Bank > TF Qu. 07 Extabet Enterprises donates a certain percen...

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337)

Instrumental approach to corporate management is the perspective that a corporation has an obligation to society over and above the expectations of its shareholders. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-02 Distinguish between instrumental and social contract approaches to CSR. Source : Chapter 04 Test Bank > TF Qu. 08 Instrumental approach to corporate managemen...

338)

Friedman's view of the corporate world supports the rights of individuals to make money with their investments. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-02 Distinguish between instrumental and social contract approaches to CSR. Source : Chapter 04 Test Bank > TF Qu. 09 Friedman's view of the corporate world supports...

339)

The social contract approach is a very simplistic model that argues that the corporation only has an obligation to itself. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 04-02 Distinguish between instrumental and social contract approaches to CSR. Source : Chapter 04 Test Bank > TF Qu. 10 The social contract approach is a very simpl...

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340)

In the context of the instrumental approach to corporate social responsibility (CSR), Milton Friedman argues that it would be unethical for a corporation to do anything other than deliver the profits for which its investors have entrusted it with their funds in the purchase of shares in the corporation. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-02 Distinguish between instrumental and social contract approaches to CSR. Source : Chapter 04 Test Bank > TF Qu. 11 In the context of the instrumental approach ...

341)

The social contract approach to corporate management is the perspective that the only obligation of a corporation is to maximize profits for its shareholders in providing goods and services that meet the needs of its customers. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-02 Distinguish between instrumental and social contract approaches to CSR. Source : Chapter 04 Test Bank > TF Qu. 12 The social contract approach to corporate ma...

342)

The primary focus of the old social contract between corporations and society was equal advancement in quality of life and wages. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-02 Distinguish between instrumental and social contract approaches to CSR. Source : Chapter 04 Test Bank > TF Qu. 13 The primary focus of the old social contract...

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343)

Henry Ford II recognized the fact that corporations operate in an isolated environment. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-03 Explain the business argument for "doing well by doing good." Source : Chapter 04 Test Bank > TF Qu. 14 Henry Ford II recognized the fact that corpo...

344)

Jim Roberts, a marketing professor, views corporate social responsibility (CSR) as doing well by doing good. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-03 Explain the business argument for "doing well by doing good." Source : Chapter 04 Test Bank > TF Qu. 15 Jim Roberts, a marketing professor, views co...

345)

Layoffs reduce corporation costs and only affect the laid-off employees. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 04-03 Explain the business argument for "doing well by doing good." Source : Chapter 04 Test Bank > TF Qu. 16 Layoffs reduce corporation costs and only af...

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346)

Doing what is in the best long-term interest of a customer invariably fails to achieve what is best for a company. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-03 Explain the business argument for "doing well by doing good." Source : Chapter 04 Test Bank > TF Qu. 17 Doing what is in the best long-term interest...

347)

The policy of "doing well by doing good" refers to the belief that doing good for the company is just good business. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-03 Explain the business argument for "doing well by doing good." Source : Chapter 04 Test Bank > TF Qu. 18 The policy of "doing well by doing good" ref...

348)

Milton Friedman asserted that there are five major trends behind the corporate social responsibility (CSR) phenomenon. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-04 Summarize the five driving forces behind CSR. Source : Chapter 04 Test Bank > TF Qu. 19 Milton Friedman asserted that there are five...

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349)

Transparency is a major trend behind the corporate social responsibility (CSR) phenomenon. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-04 Summarize the five driving forces behind CSR. Source : Chapter 04 Test Bank > TF Qu. 20 Transparency is a major trend behind the cor...

350)

With the transition to an information-based economy, it has become impossible for consumers and investors to have any information at their disposal than at any time in history. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-04 Summarize the five driving forces behind CSR. Source : Chapter 04 Test Bank > TF Qu. 21 With the transition to an information-based ...

351)

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

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 04-04 Summarize the five driving forces behind CSR. Source : Chapter 04 Test Bank > TF Qu. 22 Globalization represents a new stage of capi...

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352)

U.S. citizens consider the public sector as the most appropriate venue for addressing a growing list of social problems. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 04-04 Summarize the five driving forces behind CSR. Source : Chapter 04 Test Bank > TF Qu. 23 U.S. citizens consider the public sector as ...

353)

Organizations find it easy to make the transition from corporate social responsibility (CSR) as a theoretical concept to CSR as an operational policy due to the major trends driving it. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 04-04 Summarize the five driving forces behind CSR. Source : Chapter 04 Test Bank > TF Qu. 24 Organizations find it easy to make the trans...

354)

All CSR initiatives invariably generate immediate financial gains to the organization after implementation. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-04 Summarize the five driving forces behind CSR. Source : Chapter 04 Test Bank > TF Qu. 25 All CSR initiatives invariably generate imme...

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355)

Corporations merely experimenting with corporate social responsibility initiatives run the risk of creating adverse results as the public sees little more than a token action that is concerned with publicity rather than community. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 04-04 Summarize the five driving forces behind CSR. Source : Chapter 04 Test Bank > TF Qu. 26 Corporations merely experimenting with corpo...

356)

There are several standard ways to measure the achievements of the triple bottom-line approach. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 04-05 Explain the triple bottom-line approach to corporate performance measureme Source : Chapter 04 Test Bank > TF Qu. 27 There are several standard ways to measure t...

357)

Anderson Enterprises (AE) issues free meal coupons to its employees and also provides them with travel allowances. This illustrates that AE pursues the triple bottom-line approach. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Difficulty : 2 Medium Bloom's : Apply Learning Objective : 04-05 Explain the triple bottom-line approach to corporate performance measureme Source : Chapter 04 Test Bank > TF Qu. 28 Anderson Enterprises (AE) issues free meal c...

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358)

There are four distinctive types of corporate social responsibility (CSR)—economic, ethical, altruistic, and strategic. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-05 Explain the triple bottom-line approach to corporate performance measureme Source : Chapter 04 Test Bank > TF Qu. 29 There are four distinctive types of corporat...

359)

Ethical CSR is the purest or most legitimate form of CSR. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-05 Explain the triple bottom-line approach to corporate performance measureme Source : Chapter 04 Test Bank > TF Qu. 30 Ethical CSR is the purest or most legitimate...

360)

Ethical corporate social responsibility (CSR) is a philanthropic approach to corporate social responsibility in which organizations underwrite specific initiatives to give back to the company's local community or to designated national or international programs. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-05 Explain the triple bottom-line approach to corporate performance measureme Source : Chapter 04 Test Bank > TF Qu. 31 Ethical corporate social responsibility (CSR...

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361)

Altruistic corporate social responsibility (CSR) represents a type of CSR in which organizations pursue a clearly defined sense of social conscience in managing their financial responsibilities to shareholders, their legal responsibilities, and their ethical responsibilities to do the right thing for all their stakeholders. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-05 Explain the triple bottom-line approach to corporate performance measureme Source : Chapter 04 Test Bank > TF Qu. 32 Altruistic corporate social responsibility (...

362)

Critics have argued that, from an ethical perspective, altruistic corporate social responsibility (CSR) is immoral since it represents a violation of shareholder rights if they are not given the opportunity to vote on the initiatives launched in the name of corporate social responsibility. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 04-05 Explain the triple bottom-line approach to corporate performance measureme Source : Chapter 04 Test Bank > TF Qu. 33 Critics have argued that, from an ethical pe...

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363)

The country of Cadmia was hit by a hurricane. Singerz Corporation responded to the devastation caused by the hurricane by donating fuel for transportation supplying relief aid.

In addition, it announced a direct cash donation of $1 million to support the relief and rebuilding efforts. This is an example of strategic corporate social responsibility (CSR). ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Difficulty : 2 Medium Bloom's : Apply Learning Objective : 04-05 Explain the triple bottom-line approach to corporate performance measureme Source : Chapter 04 Test Bank > TF Qu. 34 The country of Cadmia was hit by a hurricane...

364)

Altruistic corporate social responsibility (CSR) targets programs that will generate the most positive publicity or goodwill for the organization. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-05 Explain the triple bottom-line approach to corporate performance measureme Source : Chapter 04 Test Bank > TF Qu. 35 Altruistic corporate social responsibility (...

365)

Strategic corporate social responsibility (CSR) runs the greatest risk of being perceived as self-serving behavior on the part of the organization. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-05 Explain the triple bottom-line approach to corporate performance measureme Source : Chapter 04 Test Bank > TF Qu. 36 Strategic corporate social responsibility (C...

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366)

The triple bottom-line approach (3BL) to corporate performance measurement supports the idea of organizations pursuing social and environmental goals rather than financial goals. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-05 Explain the triple bottom-line approach to corporate performance measureme Source : Chapter 04 Test Bank > TF Qu. 37 The triple bottom-line approach (3BL) to cor...

367)

In contrast to the alleged immorality of altruistic corporate social responsibility (CSR), critics argue that strategic CSR is ethically commendable since these initiatives benefit stakeholders while meeting fiduciary obligations to the company's shareholders. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 04-05 Explain the triple bottom-line approach to corporate performance measureme Source : Chapter 04 Test Bank > TF Qu. 38 In contrast to the alleged immorality of alt...

368)

One of the newest and increasingly questionable practices in the world of corporate social responsibility (CSR) is the notion of making operations "carbon neutral." ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-06 Discuss the relative merits of carbon-offset trading.

Source : Chapter 04 Test Bank > TF Qu. 39 One of the newest and increasingly questiona...

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369)

The practices of making a company's operations "carbon neutral" was initially developed as a solution for those industries, such as airlines or automobile companies, that face significant challenges in reducing their emissions. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-06 Discuss the relative merits of carbon-offset trading.

Source : Chapter 04 Test Bank > TF Qu. 40 The practices of making a company's operations...

370)

Emissions credits are fixed for every market, and they cannot be bought or sold. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 04-06 Discuss the relative merits of carbon-offset trading.

Source : Chapter 04 Test Bank > TF Qu. 41 Emissions credits are fixed for every market...

371)

The practice of making operations "carbon neutral" is a way to offset whatever damage is being done to the environment due to greenhouse gas emissions by purchasing credits from "carbon-positive" projects to balance out emissions. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-06 Discuss the relative merits of carbon-offset trading.

Source : Chapter 04 Test Bank > TF Qu. 42 The practice of making operations carbon ne...

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372)

The Kyoto Protocol requires developed nations to reduce their greenhouse gas emissions only by modifying their domestic industries. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-06 Discuss the relative merits of carbon-offset trading.

Source : Chapter 04 Test Bank > TF Qu. 43 The Kyoto Protocol requires developed nation...

373)

The Chicago Climate Futures Exchange (CCFE) promotes the standardization of carbon trading on a global scale. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-06 Discuss the relative merits of carbon-offset trading.

Source : Chapter 04 Test Bank > TF Qu. 44 The Chicago Climate Futures Exchange (CCFE) ...

374)

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

A) corporate assistance B) corporate governance C) corporate conscience D) corporate aggressiveness

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-01 Describe and explain corporate social responsibility (CSR).

Source : Chapter 04 Test Bank > MC Qu. 45 The term ________ is defined as the actions of ...

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375)

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

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

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

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

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

Question Details Accessibility : Keyboard Navigation Learning Objective : 04-01 Describe and explain corporate social responsibility (CSR).

Difficulty : 2 Medium Bloom's : Apply Source : Chapter 04 Test Bank > MC Qu. 46 Which of the following is an example of corp...

376)

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

A) ethical ambiguity B) universal ethics C) emotional contagion D) corporate citizenship

Question Details Accessibility : Keyboard Navigation Learning Objective : 04-01 Describe and explain corporate social responsibility (CSR).

Bloom's : Apply Difficulty : 3 Hard Source : Chapter 04 Test Bank > MC Qu. 47 Happy Times (HT) is an alcohol manufacturing...

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377)

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

A) It provides its employees with free lunch.

B) It allows flexible working hours for its employees.

C) It gives better pricing deals to older clients.

D) It fulfills all its legal obligations.

Question Details Accessibility : Keyboard Navigation Learning Objective : 04-01 Describe and explain corporate social responsibility (CSR).

Bloom's : Understand Difficulty : 2 Medium Source : Chapter 04 Test Bank > MC Qu. 48 In addition to achieving social benefits, wh...

378)

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

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

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

C) It does not operate in hazardous working environments.

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

Question Details Accessibility : Keyboard Navigation Learning Objective : 04-01 Describe and explain corporate social responsibility (CSR).

Bloom's : Understand Difficulty : 2 Medium Source : Chapter 04 Test Bank > MC Qu. 49 Which of the following illustrates that a co...

379)

Corporate social responsibility (CSR) always assumes that a corporation is A) operating in a competitive environment.

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

C) permitted to ignore federal and state legal obligations.

D) working only toward achieving its profit goals.

Question Details Accessibility : Keyboard Navigation Learning Objective : 04-01 Describe and explain corporate social responsibility (CSR).

Bloom's : Understand Difficulty : 2 Medium Source : Chapter 04 Test Bank > MC Qu. 50 Corporate social responsibility (CSR) always...

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380)

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

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

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

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

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

Question Details Accessibility : Keyboard Navigation Learning Objective : 04-01 Describe and explain corporate social responsibility (CSR).

Bloom's : Understand Difficulty : 2 Medium Source : Chapter 04 Test Bank > MC Qu. 51 Which of the following statements is true of...

381)

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

A) corporate absolutism B) corporate consequentialism C) corporate citizenship D) corporate ownership

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-01 Describe and explain corporate social responsibility (CSR).

Source : Chapter 04 Test Bank > MC Qu. 52 Another term for corporate social responsibi...

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382)

The definition of corporate social responsibility as the actions of an organization that prioritize social benefit over maximizing profits and meeting legal obligations assumes that A) the corporation has maximum market share.

B) the corporation is operating in a competitive environment.

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

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

Question Details Accessibility : Keyboard Navigation Learning Objective : 04-01 Describe and explain corporate social responsibility (CSR).

Bloom's : Understand Difficulty : 2 Medium Source : Chapter 04 Test Bank > MC Qu. 53 The definition of corporate social responsib...

383)

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

A) Milton Friedman B) Henry Ford II C) Jim Roberts D) Joseph F. Keefe

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-02 Distinguish between instrumental and social contract approaches to CSR. Source : Chapter 04 Test Bank > MC Qu. 54 The most famous advocate of the instrumental...

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384)

The instrumental approach to corporate social responsibility (CSR) states that A) the only obligation of a corporation is to promote socialist economic planning.

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

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

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

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-02 Distinguish between instrumental and social contract approaches to CSR. Source : Chapter 04 Test Bank > MC Qu. 55 The instrumental approach to corporate socia...

385)

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

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

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

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

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

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386)

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

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

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

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

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

Question Details Accessibility : Keyboard Navigation Difficulty : 2 Medium Bloom's : Apply Learning Objective : 04-02 Distinguish between instrumental and social contract approaches to CSR. Source : Chapter 04 Test Bank > MC Qu. 57 Spark Inc. (SI), a multinational corporation...

387)

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

A) a company that donates a certain portion of profit to an organization for underprivileged children B) a company that makes as much profit as possible to ensure that the investments made by the company are successful C) a company that stipulates that profits should be earned at any cost, be it deception or fraud D) a company that believes its social responsibility is beyond serving the interests of its stockholders

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 04-02 Distinguish between instrumental and social contract approaches to CSR. Source : Chapter 04 Test Bank > MC Qu. 58 Which of the following companies implements ...

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388)

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

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

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

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

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

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 04-02 Distinguish between instrumental and social contract approaches to CSR. Source : Chapter 04 Test Bank > MC Qu. 59 Which of the following statements is true of...

389)

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

A) instrumental approach B) social contract approach C) trident approach D) utilitarian approach

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-02 Distinguish between instrumental and social contract approaches to CSR. Source : Chapter 04 Test Bank > MC Qu. 60 Which approach to corporate social responsib...

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390)

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

A) social contract B) shareholder C) free-enterprise D) instrumental

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-02 Distinguish between instrumental and social contract approaches to CSR. Source : Chapter 04 Test Bank > MC Qu. 61 The ________ approach to corporate management r...

391)

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

A) Indibean Inc. promotes extensive work shifts.

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

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

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

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392)

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

A) free-enterprise B) instrumental C) shareholder D) social contract

Question Details Accessibility : Keyboard Navigation Difficulty : 2 Medium Bloom's : Apply Learning Objective : 04-02 Distinguish between instrumental and social contract approaches to CSR. Source : Chapter 04 Test Bank > MC Qu. 63 Hoffmann Enterprises (HE), a manufacturer of...

393)

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

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

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

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

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

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394)

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

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

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

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

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

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 04-02 Distinguish between instrumental and social contract approaches to CSR. Source : Chapter 04 Test Bank > MC Qu. 65 What is the difference between the old socia...

395)

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

A) social contract approach B) Kantian approach C) virtue approach D) instrumental approach

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-02 Distinguish between instrumental and social contract approaches to CSR. Source : Chapter 04 Test Bank > MC Qu. 66 According to the ________ to management, by rec...

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396)

Henry Ford II recognized that ________.

A) corporations' actions have no impact on their environmental conditions B) corporations do not operate in an isolated environment C) corporations were only economic enterprises and not social institutions D) corporations have no responsibility toward their shareholders or their stakeholders

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 04-03 Explain the business argument for "doing well by doing good." Source : Chapter 04 Test Bank > MC Qu. 67 Henry Ford II recognized that ________.

397)

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

A) social contagion theory B) concept of doing well by doing good C) concept of the unity of opposites D) effective altruism theory

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-03 Explain the business argument for "doing well by doing good." Source : Chapter 04 Test Bank > MC Qu. 68 The policy of corporate social responsibilit...

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398)

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

A) increased transparency of companies B) increased nationalization C) failure of the private sector D) failure of globalization in corporations

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-04 Summarize the five driving forces behind CSR. Source : Chapter 04 Test Bank > MC Qu. 69 Which of the following, according to Joseph ...

399)

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

A) nationalization B) globalization C) financial moral hazard D) the failure of the industrial sector

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-04 Summarize the five driving forces behind CSR. Source : Chapter 04 Test Bank > MC Qu. 70 According to Joseph F. Keefe, which of the f...

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400)

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

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

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

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

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

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-04 Summarize the five driving forces behind CSR. Source : Chapter 04 Test Bank > MC Qu. 71 According to Joseph F. Keefe, which of the f...

401)

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

A) have maximum efficiency when approached from a strict view of just profit maximization B) do not generate long-term financial gains to the organization C) do not always generate immediate financial gains to the organization D) have been easily transformed from being a theoretical concept to an operational concept

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 04-04 Summarize the five driving forces behind CSR. Source : Chapter 04 Test Bank > MC Qu. 72 A true statement about corporate social resp...

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402)

Corporations that experiment with corporate social responsibility (CSR) initiatives run the risk of creating adverse results as A) employees feel that they are working for an insincere, uncaring organization.

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

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

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

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 04-04 Summarize the five driving forces behind CSR. Source : Chapter 04 Test Bank > MC Qu. 73 Corporations that experiment with corporate ...

403)

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

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

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

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

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

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 04-04 Summarize the five driving forces behind CSR. Source : Chapter 04 Test Bank > MC Qu. 74 Why is it difficult for many organizations t...

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404)

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

A) strategic policies B) bottom line C) employment remuneration D) financial resourcing

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-05 Explain the triple bottom-line approach to corporate performance measureme Source : Chapter 04 Test Bank > MC Qu. 75 Organizations pursue operational efficiency ...

405)

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

A) corporate governance B) double bottom-line C) ethical governance D) triple bottom-line

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-05 Explain the triple bottom-line approach to corporate performance measureme Source : Chapter 04 Test Bank > MC Qu. 76 The approach that considers a company's social...

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406)

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

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

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

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

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

Question Details Accessibility : Keyboard Navigation Difficulty : 2 Medium Bloom's : Apply Learning Objective : 04-05 Explain the triple bottom-line approach to corporate performance measureme Source : Chapter 04 Test Bank > MC Qu. 77 Which of the following illustrates a firm ha...

407)

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

A) it does not take a holistic view of what constitutes sustainability for a company B) it has a narrow view of what constitutes profit for a company C) there is a higher focus on financial goals rather than on social and environmental goals D) there is no real evidence on how it can be measured

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 04-05 Explain the triple bottom-line approach to corporate performance measureme Source : Chapter 04 Test Bank > MC Qu. 78 A criticism of the triple bottom-line (3BL) ...

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408)

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

A) altruistic B) strategic C) ethical D) economic

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-05 Explain the triple bottom-line approach to corporate performance measureme Source : Chapter 04 Test Bank > MC Qu. 79 Organizations pursuing a clearly defined sen...

409)

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

A) Organizations use shareholders' funds for initiatives to give back to the company's local community.

B) Organizations target programs that will generate the most positive publicity and goodwill for the organization.

C) Organizations pursue a sense of social conscience in managing their financial, legal, and ethical responsibilities.

D) Organizations prioritize their environmental obligations over social obligations.

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 04-05 Explain the triple bottom-line approach to corporate performance measureme Source : Chapter 04 Test Bank > MC Qu. 80 Which of the following statements is true of...

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410)

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

A) altruistic B) ethical C) utilitarian D) strategic

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-05 Explain the triple bottom-line approach to corporate performance measureme Source : Chapter 04 Test Bank > MC Qu. 81 In ________ corporate social responsibility (CS...

411)

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

A) strategic B) economic C) altruistic D) ethical

Question Details Accessibility : Keyboard Navigation Difficulty : 2 Medium Bloom's : Apply Learning Objective : 04-05 Explain the triple bottom-line approach to corporate performance measureme Source : Chapter 04 Test Bank > MC Qu. 82 Bector Airlines supports relief camps in the...

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412)

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

A) Altruistic B) Ethical C) Economic D) Strategic

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-05 Explain the triple bottom-line approach to corporate performance measureme Source : Chapter 04 Test Bank > MC Qu. 83 ________ corporate social responsibility (CSR) ...

413)

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

A) Risk management B) Water conservation C) Positive greenhouse approach D) Carbon neutral operations

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-05 Explain the triple bottom-line approach to corporate performance measureme Source : Chapter 04 Test Bank > MC Qu. 84 ________ is one of the newest and increasingly ...

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414)

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

A) focus on consumerism B) environmentally harmless C) backward integrated D) carbon neutral

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-06 Discuss the relative merits of carbon-offset trading.

Source : Chapter 04 Test Bank > MC Qu. 85 The practices of making a company's operations ________ to...

415)

________ refers to the actions of an organization that target toward achieving a social benefit over and above maximizing profits for its shareholders and meeting all its legal obligations.

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-01 Describe and explain corporate social responsibility (CSR).

Source : Chapter 04 Test Bank > FB Qu. 86 ________ refers to the actions of an organiz...

416)

The ________ to corporate management states that the only obligation of a corporation is to maximize profits for its shareholders.

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-02 Distinguish between instrumental and social contract approaches to CSR. Source : Chapter 04 Test Bank > FB Qu. 87 The ________ to corporate management states ...

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417)

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

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-02 Distinguish between instrumental and social contract approaches to CSR. Source : Chapter 04 Test Bank > FB Qu. 88 The ________ refers to the perspective that a cor...

418)

________ is the purest or most legitimate type of corporate social responsibility (CSR) in which organizations pursue a clearly defined sense of social conscience in managing their financial responsibilities to shareholders, their legal responsibilities to their local community and society as a whole, and their ethical responsibilities to do the right thing for all their stakeholders.

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-05 Explain the triple bottom-line approach to corporate performance measureme Source : Chapter 04 Test Bank > FB Qu. 89 ________ is the purest or most legitimate ty...

419)

________ is a philanthropic approach to corporate social responsibility in which organizations underwrite specific initiatives to give back to the company's local community or to designated national or international programs.

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-05 Explain the triple bottom-line approach to corporate performance measureme Source : Chapter 04 Test Bank > FB Qu. 90 ________ is a philanthropic approach to corp...

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420)

________ encompasses philanthropic activities targeted toward programs that generate the most positive publicity or goodwill for the organization.

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-05 Explain the triple bottom-line approach to corporate performance measureme Source : Chapter 04 Test Bank > FB Qu. 91 ________ encompasses philanthropic activitie...

421)

Explain corporate social responsibility (CSR) and the assumption on which it operates.

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-01 Describe and explain corporate social responsibility (CSR).

Source : Chapter 04 Test Bank > ES Qu. 92 Explain corporate social responsibility (CSR...

422)

Differentiate between the instrumental approach and the social contract approach to corporate management.

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 04-02 Distinguish between instrumental and social contract approaches to CSR. Source : Chapter 04 Test Bank > ES Qu. 93 Differentiate between the instrumental appro...

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423)

Depending on the actions taken by a corporation, some stakeholders will be positively affected and others will be negatively affected. Explain.

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 04-03 Explain the business argument for "doing well by doing good." Source : Chapter 04 Test Bank > ES Qu. 94 Depending on the actions taken by a corporat...

424)

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

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 04-04 Summarize the five driving forces behind CSR. Source : Chapter 04 Test Bank > ES Qu. 95 Why is it difficult for organizations to mak...

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425)

Discuss the difference between ethical, altruistic, and strategic types of corporate social responsibility (CSR).

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 04-05 Explain the triple bottom-line approach to corporate performance measureme Source : Chapter 04 Test Bank > ES Qu. 96 Discuss the difference between ethical, altr...

426)

Explain the practice of making a company's operations "carbon neutral."

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 04-06 Discuss the relative merits of carbon-offset trading.

Source : Chapter 04 Test Bank > ES Qu. 97 Explain the practice of making a company's ope...

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Answer Key Test name: chapter 4 1) FALSE

Corporate social responsibility (CSR) refers to the actions of an organization that are targeted toward achieving a social benefit over and above maximizing profits for its shareholders and meeting all its legal obligations.

2) FALSE

Corporate social responsibility (CSR) is also referred to as corporate citizenship or corporate conscience.

3) 4) 5) 6)

TRUE TRUE TRUE FALSE Corporate social responsibility (CSR) refers to the actions of an organization that are targeted toward achieving a social benefit over and above maximizing profits for its shareholders and meeting all its legal obligations. The given scenario exemplifies corporate social responsibility.

7) FALSE

The actions of an organization should target toward achieving a social benefit over and above maximizing profits for its shareholders and meeting all its legal obligations for it to depict corporate social responsibility (CSR).

8) FALSE

Instrumental approach to corporate management is the perspective that the only obligation of a corporation is to maximize profits for its shareholders in providing goods and services that meet the needs of its customers.

9) TRUE 10) FALSE

Social contract approach to corporate management is the perspective that a corporation has an obligation to society over and above the expectations of its shareholders.

11) TRUE 12) FALSE

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

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13) FALSE

The primary focus of the old social contract between corporations and society was an economic one, assuming that continued economic growth would bring an equal advancement in quality of life.

14) FALSE

As far back as 1969, Henry Ford II recognized the fact that corporations do not operate in an isolated environment.

15) TRUE 16) FALSE

The laid-off employees are obviously hardest hit by this decision; it also has other far-reaching consequences. The communities in which those employees reside have now lost the spending power of those employees.

17) FALSE

Doing what is in the best long-term interest of a customer is ultimately doing what is best for a company.

18) FALSE

"Doing well by doing good" refers to the belief that doing good for the customer is just good business.

19) FALSE

Joseph F. Keefe asserted that there are five major trends behind the corporate social responsibility (CSR) phenomenon.

20) TRUE 21) FALSE

With the transition to an information-based economy, consumers and investors have access to more information at their disposal than at any time in history.

22) FALSE

Globalization represents a new stage of capitalist development, this time without public institutions [in place] to protect society by balancing private corporate interests against broader public interests.

23) FALSE

Citizens no longer consider the public sector as the most appropriate venue for addressing a growing list of social problems.

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24) FALSE

Even with major trends driving CSR, many organizations have found it difficult to make the transition from CSR as a theoretical concept to CSR as an operational policy.

25) FALSE

Many CSR initiatives do not generate immediate financial gains to the organization.

26) TRUE 27) FALSE

There is no real evidence of how the triple bottom-line approach (3BL) can be measured.

28) FALSE

Issuing free meal coupons to its employees and providing travel allowance does not indicate that AE is pursuing the triple bottom-line approach.

29) FALSE

There are three distinct types of CSR—ethical, altruistic, and strategic.

30) TRUE 31) FALSE

Ethical corporate social responsibility (CSR) represents the purest or most legitimate type CSR in which organizations pursue a clearly defined sense of social conscience in managing their financial responsibilities to shareholders, their legal responsibilities to their local community and society as a whole, and their ethical responsibilities to do the right thing for all their stakeholders.

32) FALSE

Altruistic corporate social responsibility (CSR) is a philanthropic approach to corporate social responsibility in which organizations underwrite specific initiatives to give back to the company's local community or to designated national or international programs.

33) TRUE 34) FALSE

The given scenario in which Singerz Corporation responded to the devastation caused by the hurricane by donating fuel for transportation and $1 million to support the relief and rebuilding efforts is an example of altruistic corporate social responsibility (CSR). Examples of altruistic CSR often occur during crises or situations of widespread need.

35) FALSE

Strategic corporate social responsibility (CSR) targets programs that will generate the most positive publicity or goodwill for the organization.

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36) TRUE 37) FALSE

The triple bottom-line approach (3BL) to corporate performance measurement supports the idea of organizations pursuing social and environmental goals in addition to their financial goals.

Companies have adapted their annual reports to reflect a triple bottom-line approach for which they provide social and environmental updates alongside their primary bottom-line financial performance.

38) TRUE 39) TRUE 40) TRUE 41) FALSE

The concept "carbon neutral" has quickly spawned a diverse collection of vendors that can assist one in achieving carbon neutrality, along with a few markets in which emissions credits can now be bought and sold.

42) TRUE 43) FALSE

The Kyoto Protocol, an agreement between 160 countries, requires developed nations to reduce their greenhouse gas emissions not only by modifying their domestic industries (coal, steel, automobiles, etc.) but also by funding projects in developing countries in return for carbon credits.

44) FALSE

The European Carbon Investors and Services Association (ECIS) promotes the standardization of carbon trading on a global scale.

45) C 46) B 47) D 48) D 49) B 50) A 51) B 52) C 53) B 54) A 55) C 56) C 57) C 58) B

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59) D 60) A 61) A 62) D 63) D 64) B 65) D 66) A 67) B 68) B 69) A 70) B 71) C 72) C 73) A 74) D 75) B 76) D 77) C 78) D 79) C 80) A 81) A 82) C 83) D 84) D 85) D 86) Corporate social responsibility 87) instrumental approach 88) social contract approach 89) Ethical corporate social responsibility 90) Altruistic corporate social responsibility 91) Strategic corporate social responsibility 92) Essay

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Corporate social responsibility (CSR) refers to the actions of an organization that target toward achieving a social benefit over and above maximizing profits for its shareholders and meeting all its legal obligations. CSR is also referred to as corporate citizenship or corporate conscience.

This definition assumes that the corporation is operating in a competitive environment and that the managers of the corporation are committed to an aggressive growth strategy while complying with all federal, state, and local legal obligations.

93) Essay

The instrumental approach argues that a corporation's only obligation is to maximize profits for its shareholders by providing goods and services that meet the needs of its customers. The social contract approach, on the other hand, argues that a corporation has an obligation to society over and above the expectations of its shareholders.

94) Essay

Corporations' actions impact their customers, their employees, their suppliers, and the communities in which they produce and deliver their goods and services. Depending on the actions taken by the corporation, some of these groups will be positively affected and others will be negatively affected. For example, if a corporation is operating unprofitably in a very competitive market, it is unlikely that it could raise prices to increase profits. Therefore, the logical choice would be to lower costs—most commonly by laying off its employees, since giving an employee a pink slip takes him or her off the payroll immediately. While those laid-off employees are obviously hardest hit by this decision, it also has other far-reaching consequences.

The communities in which those employees reside have now lost the spending power of those employees, who, presumably, no longer have as much money to spend in the local market until they find alternative employment. If the corporation chooses to shut down an entire factory, the community also loses property tax revenue from that factory, which negatively impacts the services it can provide to its residents—schools, roads, police force, and so forth. In addition, those local suppliers who made deliveries to that factory also have lost business and may have to make their own tough choices as a result.

95) Essay

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Many organizations have found it difficult to make the transition from corporate social responsibility (CSR) as a theoretical concept to CSR as an operational policy. Ironically, it is not the ethical action itself that causes the problem; it is how to promote those acts to the organization's stakeholders as proof of its new corporate conscience without appearing to be manipulative or scheming to generate press coverage for policies that could easily be dismissed as feel-good initiatives that are simply chasing customer favor. In addition, many CSR initiatives do not generate immediate financial gains to the organization. Cynical customers may decide to wait and see if this is real or just a temporary project to win new customers in a tough economic climate. This delayed response tests the commitment of those organizations that are inclined to dispense with experimental initiatives when the going gets tough.

96) Essay

Ethical CSR pursues a clearly defined sense of social conscience in managing a company's financial responsibilities to shareholders, its legal responsibilities to its local community and society as a whole, and its ethical responsibilities to do the right thing for all of its stakeholders.

Altruistic CSR takes a philanthropic approach by underwriting specific initiatives to give back to the company's local community or to designated national or international programs. Strategic CSR include philanthropic activities targeted toward programs that generate the most positive publicity or goodwill for the organization.

97) Essay

One of the newest and increasingly questionable practices in the world of corporate social responsibility (CSR) is the notion of making business operations "carbon neutral" in such a way as to offset whatever damage is being done to the environment through greenhouse gas emissions by purchasing credits from "carbon-positive" projects to balance out the emissions. Initially developed as a solution for those industries that face significant challenges in reducing their emissions (airlines or automobile companies, for example), the concept has quickly spawned a diverse collection of vendors that can assist in achieving carbon neutrality, along with a few markets in which emissions credits can now be bought and sold.

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Student name:__________ 427)

Management consulting is the system by which business organizations are directed and controlled. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-01 Explain the term corporate governance.

Source : Chapter 05 Test Bank > TF Qu. 01 Management consulting is the system by which...

428)

If companies are well governed, they will usually outperform other companies and will be able to attract investors whose support can finance further growth. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-01 Explain the term corporate governance.

Source : Chapter 05 Test Bank > TF Qu. 02 If companies are well governed, they will us...

429)

The stakeholders of a company include its customers, its vendor partners, state and local entities, and the community in which it conducts its business operations. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-01 Explain the term corporate governance.

Source : Chapter 05 Test Bank > TF Qu. 03 The stakeholders of a company include its cu...

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194

430)

Corporate transparency is concerned with how well an organization meets its obligations to its stakeholders. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-01 Explain the term corporate governance.

Source : Chapter 05 Test Bank > TF Qu. 04 Corporate transparency is concerned with how...

431)

Poor corporate governance weakens a company's potential and at worst can pave the way for financial difficulties and even fraud. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-01 Explain the term corporate governance.

Source : Chapter 05 Test Bank > TF Qu. 05 Poor corporate governance weakens a company's...

432)

The board members of a company are not accountable to the company and its shareholders. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-01 Explain the term corporate governance.

Source : Chapter 05 Test Bank > TF Qu. 06 The board members of a company are not accou...

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433)

Corporate governance does not impact the efficiency of financial markets. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-01 Explain the term corporate governance.

Source : Chapter 05 Test Bank > TF Qu. 07 Corporate governance does not impact the eff...

434)

A board of directors is a group of individuals who oversee the governance of an organization. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-02 Understand the responsibilities of the board of directors and the major go Source : Chapter 05 Test Bank > TF Qu. 08 A board of directors is a group of individua...

435)

Creditors, suppliers, and professional consultants represent the inside members of a board of directors. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-02 Understand the responsibilities of the board of directors and the major go Source : Chapter 05 Test Bank > TF Qu. 09 Creditors, suppliers, and professional consu...

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436)

The owners of a corporation include individual public shareholders, large blocks of private holders, private and public institutional investors, employees, managers, and other companies. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-02 Understand the responsibilities of the board of directors and the major go Source : Chapter 05 Test Bank > TF Qu. 10 The owners of a corporation include individu...

437)

Members of a board of directors are not eligible to be a part of the audit committee of an organization. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-02 Understand the responsibilities of the board of directors and the major go Source : Chapter 05 Test Bank > TF Qu. 11 Members of a board of directors are not elig...

438)

The strategic business unit of an organization is responsible for monitoring the financial policies and procedures of the organization. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-02 Understand the responsibilities of the board of directors and the major go Source : Chapter 05 Test Bank > TF Qu. 12 The strategic business unit of an organizati...

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439)

Independent or outside directors are not eligible to be a part of the compensation committee of an organization. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-02 Understand the responsibilities of the board of directors and the major go Source : Chapter 05 Test Bank > TF Qu. 13 Independent or outside directors are not eli...

440)

The main responsibility of the auditing committee of an organization is to set the compensation for all the employees of the organization, including its outside contractors. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-02 Understand the responsibilities of the board of directors and the major go Source : Chapter 05 Test Bank > TF Qu. 14 The main responsibility of the auditing comm...

441)

Typically, the compensation package of a CEO and other senior executives of an organization consists of a base salary and stock options but does not include any performance bonus or other perks. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-02 Understand the responsibilities of the board of directors and the major go Source : Chapter 05 Test Bank > TF Qu. 15 Typically, the compensation package of a CEO...

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442)

The corporate governance committee of an organization is staffed by members of the board of directors and specialists. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-02 Understand the responsibilities of the board of directors and the major go Source : Chapter 05 Test Bank > TF Qu. 16 The corporate governance committee of an org...

443)

The corporate governance committee of a company oversees compliance with its internal code of ethics as well as any federal and state regulations on corporate conduct. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-02 Understand the responsibilities of the board of directors and the major go Source : Chapter 05 Test Bank > TF Qu. 17 The corporate governance committee of a comp...

444)

The Cadbury report, established by Sir Adrian Cadbury in 1992 to address financial aspects of corporate governance, dealt exclusively with external governance. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 05-03 Explain the significance of the "King I" and "King II" rep Source : Chapter 05 Test Bank > TF Qu. 18 The Cadbury report, established by Sir Adria...

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445)

The King Report on Corporate Governance of 1994 incorporated a code of corporate practices and conduct that looked beyond the corporation itself, taking into account its impact on the larger community. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-03 Explain the significance of the "King I" and "King II" rep Source : Chapter 05 Test Bank > TF Qu. 19 The King Report on Corporate Governance of 1...

446)

The King I report, established by Mervyn King in 1994, failed to recognize the involvement of all the corporation's stakeholders in the efficient and appropriate operation of an organization. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 05-03 Explain the significance of the "King I" and "King II" rep Source : Chapter 05 Test Bank > TF Qu. 20 The King I report, established by Mervyn Kin...

447)

The King II report, released by the committee formed by Mervyn King, formally recognized the need to move the stakeholder model forward and to consider a triple bottom line instead of a single bottom line of profitability. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 05-03 Explain the significance of the "King I" and "King II" rep Source : Chapter 05 Test Bank > TF Qu. 21 The King II report, released by the committe...

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448)

The triple bottom line proposed by the King II report, released by the committee formed

by Mervyn King, recognizes the economic, environmental, and social aspects of a company's activities. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-03 Explain the significance of the "King I" and "King II" rep Source : Chapter 05 Test Bank > TF Qu. 22 The triple bottom line proposed by the King ...

449)

The King II report emphasized the need for companies to adopt an exclusive approach to corporate governance instead of an inclusive one. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-03 Explain the significance of the "King I" and "King II" rep Source : Chapter 05 Test Bank > TF Qu. 23 The King II report emphasized the need for c...

450)

The Cadbury report, established by Sir Adrian Cadbury in 1992 to address financial aspects of corporate governance, argued for a guideline of "comply or else," which required companies to abide by a set of operating standards or face stiff financial penalties. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-04 Explain the differences between the following two governance methodologies Source : Chapter 05 Test Bank > TF Qu. 24 The Cadbury report, established by Sir Adria...

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451)

The "comply or else" guideline gave companies the flexibility to comply with governance standards or explain their noncompliance in their corporate documents. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-04 Explain the differences between the following two governance methodologies Source : Chapter 05 Test Bank > TF Qu. 25 The "comply or else" guideline gave companies...

452)

The "comply or explain" guideline proved to be an effective deterrent to corporate financial scandals. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 05-04 Explain the differences between the following two governance methodologies Source : Chapter 05 Test Bank > TF Qu. 26 The "comply or explain" guideline proved t...

453)

The "comply or explain" methodology refers to the set of guidelines that requires companies to abide by a set of operating standards or face stiff financial penalties. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-04 Explain the differences between the following two governance methodologies Source : Chapter 05 Test Bank > TF Qu. 27 The "comply or explain" methodology refers to...

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454)

The "comply or else" methodology is more aggressive than the "comply or explain" methodology. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 05-04 Explain the differences between the following two governance methodologies Source : Chapter 05 Test Bank > TF Qu. 28 The "comply or else" methodology is more...

455)

The Sarbanes-Oxley Act of 2002 incorporates the "comply or else" approach to corporate governance. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 05-04 Explain the differences between the following two governance methodologies Source : Chapter 05 Test Bank > TF Qu. 29 The Sarbanes-Oxley Act of 2002 incorporates ...

456)

By merging the roles of the chief executive officer and the chairperson of the board of an organization, the oversight provided by the board of directors is magnified. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 05-04 Explain the differences between the following two governance methodologies Source : Chapter 05 Test Bank > TF Qu. 30 By merging the roles of the chief executive ...

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457)

The argument in favor of merging the roles of the chairperson of the board and the chief executive officer of an organization is one of efficiency. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 05-04 Explain the differences between the following two governance methodologies Source : Chapter 05 Test Bank > TF Qu. 31 The argument in favor of merging the roles o...

458)

By permitting one individual to function as both the chief executive officer of a company and the chairperson of its board, the board is given the benefit of leadership from someone who is in touch with the inner workings of the organization. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 05-04 Explain the differences between the following two governance methodologies Source : Chapter 05 Test Bank > TF Qu. 32 By permitting one individual to function as ...

459)

The board of directors of an organization can secure its independence by permitting one individual to function as both the chief executive officer of the organization and the chairperson of its board. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 05-04 Explain the differences between the following two governance methodologies Source : Chapter 05 Test Bank > TF Qu. 33 The board of directors of an organization ca...

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460)

By permitting one individual to function as both the chief executive officer of a company and the chairperson of its board, the power of the stockholders is maximized. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 05-04 Explain the differences between the following two governance methodologies Source : Chapter 05 Test Bank > TF Qu. 34 By permitting one individual to function as ...

461)

The CRAFTED principles of governance, offered by the European business school INSEAD, recommend creating a culture and climate of consistency in an organization. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-05 Identify an appropriate corporate governance model for an organization.

Source : Chapter 05 Test Bank > TF Qu. 35 The CRAFTED principles of governance, offere...

462)

The corporate governance model assumes that the board of directors and executive leadership work together in evaluating the risk-versus-reward scenarios of a company. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-05 Identify an appropriate corporate governance model for an organization.

Source : Chapter 05 Test Bank > TF Qu. 36 The corporate governance model assumes that ...

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463)

If the board of directors is to serve its purpose in setting the operational tone for an organization, it should be comprised of members who represent professional conduct in their own organizations. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 05-05 Identify an appropriate corporate governance model for an organization.

Source : Chapter 05 Test Bank > TF Qu. 37 If the board of directors is to serve its pu...

464)

Running a small company does not require a constant evaluation of risk-versus-reward scenarios. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 05-05 Identify an appropriate corporate governance model for an organization.

Source : Chapter 05 Test Bank > TF Qu. 38 Running a small company does not require a c...

465)

In a 1993 "Harvard Business Review" article, Walter Salmon recommended a checklist of 22 questions to assess the financial health of a company. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-05 Identify an appropriate corporate governance model for an organization.

Source : Chapter 05 Test Bank > TF Qu. 39 In a 1993 "Harvard Business Review" article...

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466)

In his "Harvard Business Review" article, Walter Salmon recommends that a good board comprises three or more outside directors for every insider. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-05 Identify an appropriate corporate governance model for an organization.

Source : Chapter 05 Test Bank > TF Qu. 40 In his "Harvard Business Review" article, Walter...

467)

Ethical misconduct is possible even if a board of directors passes all the criteria established by Walter Salmon. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 05-05 Identify an appropriate corporate governance model for an organization.

Source : Chapter 05 Test Bank > TF Qu. 41 Ethical misconduct is possible even if a boa...

468)

The ethical conduct of a business can be influenced by the individual personalities involved. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 05-05 Identify an appropriate corporate governance model for an organization.

Source : Chapter 05 Test Bank > TF Qu. 42 The ethical conduct of a business can be inf...

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469)

Having all the effective mechanisms listed on the corporate governance checklist in place ensures completely effective corporate governance. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 05-05 Identify an appropriate corporate governance model for an organization.

Source : Chapter 05 Test Bank > TF Qu. 43 Having all the effective mechanisms listed o...

470)

One of the flaws in the board of directors of Enron was that many of the directors were affiliated with organizations that benefited directly from the company's operations. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-05 Identify an appropriate corporate governance model for an organization.

Source : Chapter 05 Test Bank > TF Qu. 44 One of the flaws in the board of directors o...

471)

Studies show that a commitment to good corporate governance makes a company both more attractive to investors and lenders and more profitable. ⊚ true ⊚ false

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 05-05 Identify an appropriate corporate governance model for an organization.

Source : Chapter 05 Test Bank > TF Qu. 45 Studies show that a commitment to good corpo...

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472)

Corporate governance is the process by which ________.

A) the revenue assets of a business are fixed B) corporations are nationalized by the government C) the government is monitored by corporations D) corporations are directed and controlled

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-01 Explain the term corporate governance.

Source : Chapter 05 Test Bank > MC Qu. 46 Corporate governance is the process by which...

473)

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

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

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

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

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

Question Details Accessibility : Keyboard Navigation Learning Objective : 05-01 Explain the term corporate governance.

Bloom's : Understand Difficulty : 2 Medium Source : Chapter 05 Test Bank > MC Qu. 47 Which of the following checks, when in place...

474)

Setting up a governance system that allows organizations to be directed and controlled A) leads to underpinning the integrity and efficiency of financial markets.

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

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

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

Question Details Accessibility : Keyboard Navigation Learning Objective : 05-01 Explain the term corporate governance.

Bloom's : Understand Difficulty : 2 Medium Source : Chapter 05 Test Bank > MC Qu. 48 Setting up a governance system that allows o...

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475)

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

A) weakens the company's potential and makes it less attractive to investors B) forces the board of directors to be accountable to the senior executives against their will C) leads to employees taking control of their own decisions without consulting their managers D) results in underpinning the integrity and efficiency of financial markets

Question Details Accessibility : Keyboard Navigation Learning Objective : 05-01 Explain the term corporate governance.

Bloom's : Understand Difficulty : 2 Medium Source : Chapter 05 Test Bank > MC Qu. 49 If the corporate governance in an organizati...

476)

________ is about the way in which boards oversee the running of a company by its man-agers and how board members are, in turn, account-able to shareholders and the company.

A) Management consulting B) Corporate governance C) Corporate transparency D) Management education

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-01 Explain the term corporate governance.

Source : Chapter 05 Test Bank > MC Qu. 50 ________ is about the way in which boards ov...

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477)

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

A) editorial committee B) human resources team C) accounting team D) audit committee

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-02 Understand the responsibilities of the board of directors and the major go Source : Chapter 05 Test Bank > MC Qu. 51 The ________ of an organization is staffed b...

478)

The ________ represents a public demonstration of an organization's commitment to ethical business practices.

A) audit committee B) corporate governance committee C) compensation committee D) investment and risk committee

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-02 Understand the responsibilities of the board of directors and the major go Source : Chapter 05 Test Bank > MC Qu. 52 The ________ represents a public demonstrati...

479)

The board of directors of a company A) is not accountable to the company's stakeholders.

B) should ideally be elected by the CEO. C) oversees the governance of the organization.

D) should ideally have less power than the CEO.

Question Details Accessibility : Keyboard Navigation Learning Objective : 05-02 Understand the responsibilities of the board of directors and the major go Bloom's : Understand Difficulty : 2 Medium Source : Chapter 05 Test Bank > MC Qu. 53 The board of directors of a company

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480)

The inside members of a company's board of directors A) typically have no direct connection with the company.

B) hold managerial positions within the company.

C) comprise the company's creditors and suppliers.

D) include the external consultants used by the company.

Question Details Accessibility : Keyboard Navigation Learning Objective : 05-02 Understand the responsibilities of the board of directors and the major go Bloom's : Understand Difficulty : 2 Medium Source : Chapter 05 Test Bank > MC Qu. 54 The inside members of a company's board...

481)

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

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

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

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

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

Question Details Accessibility : Keyboard Navigation Learning Objective : 05-02 Understand the responsibilities of the board of directors and the major go Bloom's : Understand Difficulty : 2 Medium Source : Chapter 05 Test Bank > MC Qu. 55 Identify a feature of the outside members of...

482)

One of the responsibilities of the audit committee of a company is to A) elect members of the company's board of directors.

B) oversee compensation packages for the senior executives.

C) monitor the company's choice of accounting policies and procedures.

D) analyze the company's economic progress.

Question Details Accessibility : Keyboard Navigation Learning Objective : 05-02 Understand the responsibilities of the board of directors and the major go Bloom's : Understand Difficulty : 2 Medium Source : Chapter 05 Test Bank > MC Qu. 56 One of the responsibilities of the audit com...

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483)

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

A) business sales unit B) audit committee C) human resourcing unit D) marketing committee

Question Details Accessibility : Keyboard Navigation Learning Objective : 05-02 Understand the responsibilities of the board of directors and the major go Bloom's : Apply Difficulty : 3 Hard Source : Chapter 05 Test Bank > MC Qu. 57 Catherine, a board member of Clayton Inc., i...

484)

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

A) credit committee B) business sales unit C) compensation committee D) quality assurance unit

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-02 Understand the responsibilities of the board of directors and the major go Source : Chapter 05 Test Bank > MC Qu. 58 The ________ of a company is an operating commi...

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485)

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

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

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

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

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

Question Details Accessibility : Keyboard Navigation Learning Objective : 05-02 Understand the responsibilities of the board of directors and the major go Bloom's : Understand Difficulty : 2 Medium Source : Chapter 05 Test Bank > MC Qu. 59 Which of the following is true of the compen...

486)

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

A) It monitors the ethical performance of the company.

B) Its members are elected by shareholders at the annual shareholders' meetings.

C) It oversees the setting of compensation packages for all the senior executives.

D) It selects the company's chief executive officer (CEO).

Question Details Accessibility : Keyboard Navigation Learning Objective : 05-02 Understand the responsibilities of the board of directors and the major go Bloom's : Understand Difficulty : 2 Medium Source : Chapter 05 Test Bank > MC Qu. 60 Identify a true statement about the corporat...

487)

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

A) business sales unit B) quality assurance unit C) corporate governance committee D) proposal committee

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-02 Understand the responsibilities of the board of directors and the major go Source : Chapter 05 Test Bank > MC Qu. 61 One of the primary responsibilities of an or...

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488)

The Cadbury report was established by Sir Adrian Cadbury in 1992 to address A) the cultural aspects of a company's activities.

B) the financial aspects of corporate governance.

C) the development needs of senior management.

D) the workplace standards of conduct.

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-03 Explain the significance of the "King I" and "King II" rep Source : Chapter 05 Test Bank > MC Qu. 62 The Cadbury report was established by Sir Ad...

489)

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

A) external governance B) corporate social responsibility C) internal governance D) recruiting policy

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-03 Explain the significance of the "King I" and "King II" rep Source : Chapter 05 Test Bank > MC Qu. 63 The main focus of the Cadbury report, establ...

490)

The Cadbury report, established by Sir Adrian Cadbury in 1992 to address financial aspects of corporate governance, recommended A) adopting a Code of Best Practice to achieve high standards of corporate behavior.

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

C) formally recognizing all the stakeholders of an organization.

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

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 05-03 Explain the significance of the "King I" and "King II" rep Source : Chapter 05 Test Bank > MC Qu. 64 The Cadbury report, established by Sir Adria...

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491)

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

A) it was inclusive of the recruiting policies of an organization B) it limited its scope to internal corporate governance C) it limited its scope to financial and regulatory accountability D) it considered the impact of corporations' on the larger community

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 05-03 Explain the significance of the "King I" and "King II" rep Source : Chapter 05 Test Bank > MC Qu. 65 A feature of the King I report on corporate ...

492)

The King II report, released by the committee formed by Mervyn King, on corporate governance A) strongly advocated that companies follow the traditional, single bottom line of profitability.

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

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

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

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 05-03 Explain the significance of the "King I" and "King II" rep Source : Chapter 05 Test Bank > MC Qu. 66 The King II report, released by the committe...

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493)

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

A) they both limited their scope to the financial and regulatory accountability of corporations B) they both advocated following the traditional, single bottom line of profitability C) they both rejected the triple bottom line suggested by the Cadbury approach D) they both incorporated a code of corporate practices that looked beyond corporations

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 05-03 Explain the significance of the "King I" and "King II" rep Source : Chapter 05 Test Bank > MC Qu. 67 One of the common characteristics of the Kin...

494)

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

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

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

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

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

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495)

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

A) it did not take into consideration the remuneration packages provided to the employees of a company B) its stringent measures to deny flexibility to comply with governance standards caused organization-wide friction C) its definition of what constitutes an acceptable explanation for not complying was vague D) it expected corporations to abide by an extremely rigid set of operating standards

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 05-04 Explain the differences between the following two governance methodologies Source : Chapter 05 Test Bank > MC Qu. 69 The "comply or explain" approach to corporat...

496)

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

A) Sarbanes-Oxley Act B) Comstock Act C) Multi-divisional Form Act D) Trade Act

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-04 Explain the differences between the following two governance methodologies Source : Chapter 05 Test Bank > MC Qu. 70 The ________ of 2002 incorporates the "comply o...

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497)

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

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

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

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

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

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 05-04 Explain the differences between the following two governance methodologies Source : Chapter 05 Test Bank > MC Qu. 71 Which of the following is true of the "compl...

498)

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

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

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

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

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

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 05-04 Explain the differences between the following two governance methodologies Source : Chapter 05 Test Bank > MC Qu. 72 In what way did the "comply or else" approach...

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499)

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

A) the power of the stockholders and the independence of the board are increased B) the power vested in external public shareholders is decreased C) the checks that the board set in place against unethical behavior become more effective D) the board is led by someone familiar with the inner workings of the organization

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 05-04 Explain the differences between the following two governance methodologies Source : Chapter 05 Test Bank > MC Qu. 73 Merging the roles of the chief executive off...

500)

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

A) The power of the stockholders is maximized.

B) The oversight provided by the board is increased.

C) The independence of the board is compromised.

D) The influence of the CEO is minimized.

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 05-04 Explain the differences between the following two governance methodologies Source : Chapter 05 Test Bank > MC Qu. 74 Which of the following is an effect of mergi...

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501)

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

A) the independence of the board is maximized B) the financial goals of a company takes utmost importance C) the power of the chief executive officer decreases D) the power of the stockholders is minimized

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 05-04 Explain the differences between the following two governance methodologies Source : Chapter 05 Test Bank > MC Qu. 75 The merging of the roles of the chief execut...

502)

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

A) basic limiting principle B) comply or else C) comply or explain D) maximum power principle

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-04 Explain the differences between the following two governance methodologies Source : Chapter 05 Test Bank > MC Qu. 76 The Cadbury report, established to address f...

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503)

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

to A) merge the roles of chief executive officer (CEO) and chairperson of the board into

one individual.

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

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

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

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 05-04 Explain the differences between the following two governance methodologies Source : Chapter 05 Test Bank > MC Qu. 77 The first step in a policy of disregarding t...

504)

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

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

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

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

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

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 05-05 Identify an appropriate corporate governance model for an organization.

Source : Chapter 05 Test Bank > MC Qu. 78 Which of the following is true of the CRAFTE...

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505)

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

A) merging the roles of the chief executive officer and the chairperson of the board B) liberating the chief executive officer from constraints laid by the board members C) evaluating risk-versus-reward scenarios frequently, regardless of the company's size D) reducing the board's independence and decreasing the power of stockholders

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 05-05 Identify an appropriate corporate governance model for an organization.

Source : Chapter 05 Test Bank > MC Qu. 79 Which of the following actions is a step tow...

506)

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

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

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

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

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

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 05-05 Identify an appropriate corporate governance model for an organization.

Source : Chapter 05 Test Bank > MC Qu. 80 Which of the following principles should a c...

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507)

Walter Salmon's checklist to assess the quality of the board recommends A) following an exclusive rather than an inclusive approach.

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

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

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

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 05-05 Identify an appropriate corporate governance model for an organization.

Source : Chapter 05 Test Bank > MC Qu. 81 Walter Salmon's checklist to assess the quality...

508)

Which of the following is true of ethical misconduct?

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

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

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

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

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 05-05 Identify an appropriate corporate governance model for an organization.

Source : Chapter 05 Test Bank > MC Qu. 82 Which of the following is true of ethical mi...

509)

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

A) educational background B) work experience C) charisma D) trust

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-05 Identify an appropriate corporate governance model for an organization.

Source : Chapter 05 Test Bank > MC Qu. 83 The fiduciary responsibility of a manager is...

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510)

The right size of a board as specified in Walter Salmon's checklist for assessing the quality of the board of directors of an organization is between ________ members.

A) 6 and 8 B) 15 and 18 C) 3 and 12 D) 8 and 15

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-05 Identify an appropriate corporate governance model for an organization.

Source : Chapter 05 Test Bank > MC Qu. 84 The right size of a board as specified in Wa...

511)

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

A) They must be nominated by the compensation committee.

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

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

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

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 05-05 Identify an appropriate corporate governance model for an organization.

Source : Chapter 05 Test Bank > MC Qu. 85 Which of the following is true of managers i...

512)

A commitment to good corporate governance A) necessitates decreasing the independence of a board.

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

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

D) makes a company more attractive to investors.

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 05-05 Identify an appropriate corporate governance model for an organization.

Source : Chapter 05 Test Bank > MC Qu. 86 A commitment to good corporate governance

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513)

If the board of an organization is to serve its purpose in setting the operational tone for the organization, it should be composed of members who A) represent professional conduct in their own organizations.

B) are opposed to the practice of utilitarianism.

C) support a decentralized model of corporate management.

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

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 05-05 Identify an appropriate corporate governance model for an organization.

Source : Chapter 05 Test Bank > MC Qu. 87 If the board of an organization is to serve ...

514)

________ is the process by which organizations are directed and controlled.

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-01 Explain the term corporate governance.

Source : Chapter 05 Test Bank > FB Qu. 88 ________ is the process by which organizatio...

515)

A(n) ________ is a group of individuals who oversee governance of an organization.

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-02 Understand the responsibilities of the board of directors and the major go Source : Chapter 05 Test Bank > FB Qu. 89 A(n) ________ is a group of individuals who ...

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516)

The ________ of an organization is responsible for monitoring the financial policies and procedures of the organization.

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-02 Understand the responsibilities of the board of directors and the major go Source : Chapter 05 Test Bank > FB Qu. 90 The ________ of an organization is responsib...

517)

The ________ is responsible for setting the compensation for the CEO and other senior executives.

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-02 Understand the responsibilities of the board of directors and the major go Source : Chapter 05 Test Bank > FB Qu. 91 The ________ is responsible for setting the ...

518)

The ________ monitors the ethical performance of the corporation and oversees compliance with the company's internal code of ethics as well as any federal and state regulations on corporate conduct.

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-02 Understand the responsibilities of the board of directors and the major go Source : Chapter 05 Test Bank > FB Qu. 92 The ________ monitors the ethical performanc...

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519)

The "________" approach to corporate governance gave companies the flexibility to comply with governance standards or explain their noncompliance in their corporate documents.

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-04 Explain the differences between the following two governance methodologies Source : Chapter 05 Test Bank > FB Qu. 93 The "________" approach to corporate govern...

520)

The "________" approach to corporate governance requires companies to abide by a set of operating standards or face stiff financial penalties.

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-04 Explain the differences between the following two governance methodologies Source : Chapter 05 Test Bank > FB Qu. 94 The "________" approach to corporate govern...

521)

What is corporate governance? Why it is important?

Question Details Accessibility : Keyboard Navigation Learning Objective : 05-01 Explain the term corporate governance.

Bloom's : Understand Difficulty : 2 Medium Source : Chapter 05 Test Bank > ES Qu. 95 What is corporate governance? Why it is impo...

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522)

Who elects the board of directors of an organization? Differentiate between the inside members and the outside members of a board.

Question Details Accessibility : Keyboard Navigation Learning Objective : 05-02 Understand the responsibilities of the board of directors and the major go Bloom's : Understand Difficulty : 2 Medium Source : Chapter 05 Test Bank > ES Qu. 96 Who elects the board of directors of an orga...

523)

What roles do the audit committee and the compensation committee of an organization play in ensuring good governance?

Question Details Accessibility : Keyboard Navigation Bloom's : Remember Difficulty : 1 Easy Learning Objective : 05-02 Understand the responsibilities of the board of directors and the major go Source : Chapter 05 Test Bank > ES Qu. 97 What roles do the audit committee and the co...

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524)

In what way did the King I approach on corporate governance differ from the Cadbury approach?

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 05-03 Explain the significance of the "King I" and "King II" rep Source : Chapter 05 Test Bank > ES Qu. 98 In what way did the King I approach on corpo...

525)

How did the King II report come into being? Explain its significance.

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 05-03 Explain the significance of the "King I" and "King II" rep Source : Chapter 05 Test Bank > ES Qu. 99 How did the King II report come into being? ...

526)

Explain the "comply or explain" guideline. Why did the "comply or else" policy come into force?

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 05-04 Explain the differences between the following two governance methodologies Source : Chapter 05 Test Bank > ES Qu. 100 Explain the "comply or explain" guideline. Why...

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527)

Explain the arguments in favor of and against the merging of the roles of chief executive officer (CEO) and chairperson of the board into one individual.

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 05-05 Identify an appropriate corporate governance model for an organization.

Source : Chapter 05 Test Bank > ES Qu. 101 Explain the arguments in favor of and agains...

528)

Does a commitment to good corporate governance affect a company's profitability?

Question Details Accessibility : Keyboard Navigation Bloom's : Understand Difficulty : 2 Medium Learning Objective : 05-05 Identify an appropriate corporate governance model for an organization.

Source : Chapter 05 Test Bank > ES Qu. 102 Does a commitment to good corporate governan...

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Answer Key Test name: chapter 5 1) FALSE

Corporate governance is the system by which business organizations are directed and controlled.

2) TRUE 3) TRUE 4) FALSE

Corporate governance is concerned with how well an organization meets its obligations to its stakeholders.

5) TRUE 6) FALSE

The board members of a company are accountable to the company and its shareholders.

7) FALSE

Good corporate governance plays a vital role in underpinning the integrity and efficiency of financial markets.

8) TRUE 9) FALSE

The inside members of a board of directors hold management positions in a company. Outside members may have direct connections to the company as creditors, suppliers, customers, or professional consultants.

10) TRUE 11) FALSE

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

12) FALSE

The audit committee of an organization is responsible for monitoring the financial policies and procedures of the organization.

13) FALSE

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

14) FALSE

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The compensation committee of an organization is responsible for setting the compensation for the CEO and other senior executives. Compensation policies for the employees of the corporation are left to the management team to oversee.

15) FALSE

Typically, the compensation package of a CEO and other senior executives of an organization consists of a base salary, stock options, performance bonus, and other perks.

16) TRUE 17) TRUE 18) FALSE

The Cadbury report on corporate governance focused on internal governance.

19) TRUE 20) FALSE

The King I report recognized the involvement of all the corporation's stakeholders—the shareholders, customers, employees, vendor partners, and the community in which the corporation operates—in the efficient and appropriate operation of an organization.

21) TRUE 22) TRUE 23) FALSE

The King II report emphasized the need for companies to adopt an inclusive approach to corporate governance instead of an exclusive one.

24) FALSE

The Cadbury report argued for a guideline of "comply or explain" which gave companies the flexibility to comply with governance standards or explain why they do not in their corporate documents.

25) FALSE

The "comply or explain" guideline gave companies the flexibility to comply with governance standards or explain their noncompliance in their corporate documents.

26) FALSE

The "comply or explain" guideline was followed by a series of financial scandals which led critics to argue that it offered no real deterrent to corporations.

27) FALSE

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The "comply or else" methodology refers to the set of guidelines that requires companies to abide by a set of operating standards or face stiff financial penalties.

28) TRUE 29) TRUE 30) FALSE

By merging the roles of the chief executive officer and the chairperson of the board of an organization, the oversight provided by the board of directors is lost.

31) TRUE 32) TRUE 33) FALSE

By permitting one individual to function as both the chief executive officer of an organization and the chairperson of its board, the independence of the board is compromised.

34) FALSE

By permitting one individual to function as both the chief executive officer of a company and the chairperson of its board, the power of the stockholders is minimized.

35) TRUE 36) TRUE 37) TRUE 38) FALSE

Running a company of any size requires constant evaluation of risk-versus-reward scenarios.

39) FALSE

In a 1993 "Harvard Business Review" article, Walter Salmon recommended a checklist of 22 questions to assess the quality of the board of directors of an organization.

40) TRUE 41) TRUE 42) TRUE 43) FALSE

Having all the effective mechanisms in place does not necessarily ensure effective corporate governance.

44) TRUE 45) TRUE 46) D 47) A 48) A

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49) A 50) B 51) D 52) B 53) C 54) B 55) D 56) C 57) B 58) C 59) D 60) A 61) C 62) B 63) C 64) A 65) D 66) C 67) D 68) B 69) C 70) A 71) A 72) B 73) D 74) C 75) D 76) C 77) A 78) A 79) C 80) B 81) D 82) A 83) D 84) D 85) B 86) D 87) A 88) Corporate governance

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89) board of directors 90) audit committee 91) compensation committee 92) corporate governance committee 93) comply or explain 94) comply or else 95) Essay

Corporate governance is the process by which organizations are directed and controlled. It is concerned with how well organizations meet their obligations to their stakeholders. It ensures the accountability of managers to board members, and in turn, the accountability of board members to shareholders. Good corporate governance plays a vital role in underpinning the integrity and efficiency of financial markets. Poor corporate governance weakens a company's potential and at worst can pave the way for financial difficulties and even fraud. If companies are well governed, they will usually outperform other companies and will be able to attract investors whose support can finance further growth.

96) Essay

The board of directors, in theory, is elected by the owners to represent their interests in the effective running of the corporation. Elections take place at annual shareholders' meetings, and directors are appointed to serve for specific periods of time. The board is typically made up of inside and outside members—inside members hold management positions in the company, whereas outside members do not. The term "outside director" can be misleading because some outside members may have direct connections to the company as creditors, suppliers, customers, or professional consultants.

97) Essay

The audit committee of an organization is an operating committee staffed by members of the board of directors plus independent or outside directors. The committee is responsible for monitoring the financial policies and procedures of the organization—specifically the accounting policies, internal controls, and the hiring of external auditors.

The compensation committee of an organization is an operating committee staffed by members of the board of directors plus independent or outside directors. The committee is responsible for setting the compensation for the CEO and other senior executives. Typically, this compensation will consist of a base salary, performance bonus, stock options, and other perks.

98) Essay

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In contrast to Cadbury's focus on internal governance, the King I report "incorporated a code of corporate practices and conduct that looked beyond the corporation itself, taking into account its impact on the larger community." It went beyond the financial and regulatory accountability upon which the Cadbury report had focused and took a more integrated approach to the topic of corporate governance, recognizing the involvement of all the corporation's stakeholders—the shareholders, customers, employees, vendor partners, and the community in which the corporation operates— in the efficient and appropriate operation of the organization.

99) Essay

Eight years after the release of the King I report, a committee led by Mervyn King, a corporate lawyer, former High Court judge, and the governor of the Bank of England at the time, released a second report referred to as "King II." The King II report formally recognized the need to move the stakeholder model forward and consider a triple bottom line as opposed to the traditional single bottom line of profitability. The triple bottom line recognizes the economic, environmental, and social aspects of a company's activities. In the words of the King II report, companies must "comply or explain" or "comply or else." According to King II, successful corporate governance requires companies to adopt an inclusive and not exclusive approach. The company must be open to institutional activism and there must be greater emphasis on the sustainable or nonfinancial aspects of its performance. Boards must apply the tests of fairness, accountability, responsibility, and transparency to all acts or omissions and be accountable to the company but also responsive and responsible towards the company's identified stakeholders.

100)

Essay The guideline of "comply or explain" gave companies the flexibility to comply with governance standards or explain why they did not in their corporate documents (annual reports, for example).

The vagueness of what would constitute an acceptable explanation for not complying, combined with the ease with which such explanations could be buried in the footnotes of an annual report, raised concerns that comply or explain really wouldn't do much for corporate governance. The string of financial scandals that followed the report led many critics to argue that "comply or explain" offered no real deterrent to corporations. The answer, they argued, was to move to a more aggressive approach of comply or else, where failure to comply would result in stiff financial penalties. The Sarbanes-Oxley Act of 2002 came into force and incorporated this approach.

101)

Essay

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The argument in favor of merging the roles of chief executive officer (CEO) and chairperson of the board into one individual is one of efficiency. By putting the leadership of the board of directors and the senior management team in the hands of the same person, the potential for conflict is minimized, and, it is argued, the board is given the benefit of leadership from someone who is in touch with the inner workings of the organization rather than an outsider who needs time to get up to speed. The argument against merging the two roles is an ethical one.

Governance of the corporation is in the hands of one person, which eliminates the checks and balances process that the board was created for in the first place. As time passes, the CEO slowly populates the board with friends who are less critical of the CEO's policies and more willing to vote larger and larger salary and benefits packages. With a rubber-stamp board in place to authorize every wish, the CEO becomes a law unto himself or herself. The independence of the board is compromised, and the power of the stockholders is minimized. The CEO can pursue policies that are focused on maintaining a high share price in the short term without any concern for the long-term stability of the organization.

102)

Essay A commitment to good corporate governance makes a company both more attractive to investors and lenders and more profitable. A Deutsche Bank study of Standard & Poor's 500 firms showed that companies with strong or improving corporate governance outperform those with poor or deteriorating governance practices. A Harvard-Wharton study showed that U.S.-based firms with better governance have faster sales growth and were more profitable than their peers. In a 2002 McKinsey survey, institutional investors said they would pay premiums to own well-governed companies.

Student name:__________ 529)

The Foreign Corrupt Practices Act was introduced to more effectively control bribery and other less obvious forms of payment to foreign officials and politicians by American publicly traded companies as they pursued international growth. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-02 Understand the purpose and significance of the Foreign Corrupt Practices A Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > TF Qu. 01 The Foreign Corrupt Practices Act was introd...

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530)

Prior to the passing of the Foreign Corrupt Practices Act, making illegal payments to foreign officials was not punishable through any type of legislation. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-02 Understand the purpose and significance of the Foreign Corrupt Practices A Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > TF Qu. 02 Prior to the passing of the Foreign Corrupt ...

531)

Prior to the passing of the Foreign Corrupt Practices Act, the Securities and Exchange Commission was not authorized to penalize company executives for failing to disclose payments under its securities rules. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-02 Understand the purpose and significance of the Foreign Corrupt Practices A Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > TF Qu. 03 Prior to the passing of the Foreign Corrupt ...

532)

The Credit Rating Agency and the New York Stock Exchange are the bodies authorized to enforce the Foreign Corrupt Practices Act. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-02 Understand the purpose and significance of the Foreign Corrupt Practices A Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > TF Qu. 04 The Credit Rating Agency and the New York St...

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533)

The Foreign Corrupt Practices Act encompasses all the secondary measures that were in use to prohibit bribery and other illegal forms of payment to foreign officials by focusing on two distinct areas—disclosure and prohibition. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-02 Understand the purpose and significance of the Foreign Corrupt Practices A Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > TF Qu. 05 The Foreign Corrupt Practices Act encompasse...

534)

The Foreign Corrupt Practices Act focuses on disclosure, which requires corporations to fully reveal any and all transactions conducted with foreign officials and politicians, in line with the Securities and Exchange Commission provisions. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-02 Understand the purpose and significance of the Foreign Corrupt Practices A Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > TF Qu. 06 The Foreign Corrupt Practices Act focuses on...

535)

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

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-02 Understand the purpose and significance of the Foreign Corrupt Practices A Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > TF Qu. 07 Under the Foreign Corrupt Practices Act, fac...

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536)

The processing of governmental papers, such as visas, is an example of a routine governmental action. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-02 Understand the purpose and significance of the Foreign Corrupt Practices A Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > TF Qu. 08 The processing of governmental papers, such ...

537)

A company can be found in violation of the Foreign Corrupt Practices Act even if its bribe is unsuccessful. ⊚ true ⊚ false

Question Details Learning Objective : 06-02 Understand the purpose and significance of the Foreign Corrupt Practices A Bloom's : Understand Difficulty : 2 Medium Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > TF Qu. 09 A company can be found in violation of the F...

538)

The Securities and Exchange Commission can enforce criminal penalties of up to $2 million per violation of the Foreign Corrupt Practices Act for corporations and other business entities. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-02 Understand the purpose and significance of the Foreign Corrupt Practices A Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > TF Qu. 10 The Securities and Exchange Commission can e...

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539)

Grease payments are illegal under the Foreign Corrupt Practices Act. ⊚ true ⊚ false

Question Details Learning Objective : 06-02 Understand the purpose and significance of the Foreign Corrupt Practices A Bloom's : Understand Difficulty : 2 Medium Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > TF Qu. 11 Grease payments are illegal under the Foreig...

540)

Payments to foreign officials made in connection with expediting lawful customs clearances and obtaining the issuance of entry or exit visas are considered bribes under the Foreign Corrupt Practices Act. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-02 Understand the purpose and significance of the Foreign Corrupt Practices A Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > TF Qu. 12 Payments to foreign officials made in connec...

541)

Under the Foreign Corrupt Practices Act, payments to foreign officials made in connection with the promotion or demonstration of company products or services are legal. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-02 Understand the purpose and significance of the Foreign Corrupt Practices A Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > TF Qu. 13 Under the Foreign Corrupt Practices Act, pay...

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542)

The guidelines developed by the U.S. Federal Sentencing Commission, which became effective on November 1, 1987, consisted of seven chapters and applied only to individuals convicted of federal offenses. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-03 Calculate monetary fines under the three-step process of the U.S. Federal Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > TF Qu. 14 The guidelines developed by the U.S. Federal...

543)

According to the Federal Sentencing Guidelines for Organizations, businesses cannot be held liable for the criminal acts of their employees and agents. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-03 Calculate monetary fines under the three-step process of the U.S. Federal Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > TF Qu. 15 According to the Federal Sentencing Guidelin...

544)

In its mission to promote ethical organizational behavior and increase the costs of unethical behavior, the Federal Sentencing Guidelines for Organizations establishes a definition of an organization that is so broad as to prompt the assessment that "no business enterprise is exempt." ⊚ true ⊚ false

Question Details Bloom's : Understand Difficulty : 2 Medium Learning Objective : 06-03 Calculate monetary fines under the three-step process of the U.S. Federal Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > TF Qu. 16 In its mission to promote ethical organizati...

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545)

The sentence of an organization punished under the Federal Sentencing Guidelines for Organizations is calculated through a three-step process: determination of mitigating factors, evaluating the credit rating, and the determination of base fine. ⊚ true ⊚ false

Question Details Bloom's : Understand Difficulty : 2 Medium Learning Objective : 06-03 Calculate monetary fines under the three-step process of the U.S. Federal Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > TF Qu. 17 The sentence of an organization punished und...

546)

The Federal Sentencing Guidelines for Organizations table factors in both the nature of the crime and the amount of the loss suffered by the victim. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-03 Calculate monetary fines under the three-step process of the U.S. Federal Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > TF Qu. 18 The Federal Sentencing Guidelines for Organi...

547)

The base fine of an organization sentenced under the Federal Sentencing Guidelines for Organizations is always calculated after its culpability score. ⊚ true ⊚ false

Question Details Bloom's : Understand Difficulty : 2 Medium Learning Objective : 06-03 Calculate monetary fines under the three-step process of the U.S. Federal Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > TF Qu. 19 The base fine of an organization sentenced u...

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548)

The culpability score, according to the Federal Sentencing Guidelines for Organizations, is the calculation of an organization's degree of blame or guilt, and it is a multiplier of the base fine up to 40 times. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-03 Calculate monetary fines under the three-step process of the U.S. Federal Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > TF Qu. 20 The culpability score, according to the Fede...

549)

Penalties under the Federal Sentencing Guidelines for Organizations (FSGO) include monetary fines, organizational probation, and the implementation of an operational program to bring the organization into compliance with FSGO standards. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-03 Calculate monetary fines under the three-step process of the U.S. Federal Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > TF Qu. 21 Penalties under the Federal Sentencing Guide...

550)

Under no circumstances can the culpability score be increased or decreased. ⊚ true ⊚ false

Question Details Bloom's : Understand Difficulty : 2 Medium Learning Objective : 06-03 Calculate monetary fines under the three-step process of the U.S. Federal Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > TF Qu. 22 Under no circumstances can the culpability s...

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551)

Under the Federal Sentencing Guidelines for Organizations, a judge has the discretion to impose a so-called death penalty upon an organization, where the fine matches all the organization's assets. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-03 Calculate monetary fines under the three-step process of the U.S. Federal Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > TF Qu. 23 Under the Federal Sentencing Guidelines for ...

552)

In order to minimize an organization's culpability score, the Federal Sentencing Guidelines for Organizations prescribes that its employees be granted absolute discretionary authority. ⊚ true ⊚ false

Question Details Bloom's : Understand Difficulty : 2 Medium Learning Objective : 06-03 Calculate monetary fines under the three-step process of the U.S. Federal Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > TF Qu. 24 In order to minimize an organization's...

553)

According to the Federal Sentencing Guidelines for Organizations, criminal offenses, whether actual or suspected, must generate an appropriate response, analysis, and corrective action in order to establish an effective compliance program. ⊚ true ⊚ false

Question Details Bloom's : Understand Difficulty : 2 Medium Learning Objective : 06-03 Calculate monetary fines under the three-step process of the U.S. Federal Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > TF Qu. 25 According to the Federal Sentencing Guidelin...

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554)

The concept of an ethical culture was recognized, for the first time, as a foundational component of an effective compliance program under the Revised Federal Sentencing Guidelines for Organizations. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-03 Calculate monetary fines under the three-step process of the U.S. Federal Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > TF Qu. 26 The concept of an ethical culture was recogn...

555)

The Revised Federal Sentencing Guidelines for Organizations required evidence of actively promoting ethical conduct rather than just complying with legal obligations. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-03 Calculate monetary fines under the three-step process of the U.S. Federal Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > TF Qu. 27 The Revised Federal Sentencing Guidelines ...

556)

According to the revised Federal Sentencing Guidelines for Organizations (FSGO), it is not necessary for corporate officers to be knowledgeable about all aspects of the compliance program. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-03 Calculate monetary fines under the three-step process of the U.S. Federal Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > TF Qu. 28 According to the revised Federal Sentencing ...

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557)

The Sarbanes-Oxley Act is a legislative response to the corporate accounting scandals of the early 2000s that covers the financial management of businesses. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-04 Compare and contrast the relative advantages and disadvantages of the Sarb Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > TF Qu. 29 The Sarbanes-Oxley Act is a legislative resp...

558)

The creation of the Public Company Accounting Oversight Board (PCAOB) as an independent oversight body was an attempt to reestablish the perceived independence of auditing companies that faced serious questioning after several corporate scandals. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-04 Compare and contrast the relative advantages and disadvantages of the Sarb Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > TF Qu. 30 The creation of the Public Company Accountin...

559)

As an oversight board, the Public Company Accounting Oversight Board (PCAOB) was charged with maintaining compliance with established standards and enforcing rules and disciplinary procedures for those organizations that found themselves out of compliance. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-04 Compare and contrast the relative advantages and disadvantages of the Sarb Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > TF Qu. 31 As an oversight board, the Public Company Ac...

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560)

Title III of the Sarbanes-Oxley Act requires senior auditors to rotate off an account every five years and junior auditors every seven years. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-04 Compare and contrast the relative advantages and disadvantages of the Sarb Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > TF Qu. 32 Title III of the Sarbanes-Oxley Act requires...

561)

Title VI of the Sarbanes-Oxley Act provides additional funding and authority to the Securities and Exchange Commission to follow through on all the new responsibilities outlined in the act. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-04 Compare and contrast the relative advantages and disadvantages of the Sarb Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > TF Qu. 33 Title VI of the Sarbanes-Oxley Act provides ...

562)

Title VIII of the Sarbanes-Oxley Act imposes fines on employees for lying to other employees regarding company benefits and pay. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-04 Compare and contrast the relative advantages and disadvantages of the Sarb Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > TF Qu. 34 Title VIII of the Sarbanes-Oxley Act imposes...

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563)

Title IX of the Sarbanes-Oxley Act requires CEOs and CFOs to certify their periodic reports and imposes penalties for certifying a misleading or fraudulent report. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-04 Compare and contrast the relative advantages and disadvantages of the Sarb Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > TF Qu. 35 Title IX of the Sarbanes-Oxley Act requires ...

564)

In September and October 2008, financial markets around the world suffered a severe crash as a consequence of aggressive lending to subprime borrowers in a deregulated environment. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-05 Explain the key provisions of the Dodd-Frank Wall Street Reform and Consum Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > TF Qu. 36 In September and October 2008, financial mar...

565)

The Dodd-Frank Wall Street Reform and Consumer Protection Act Legislation was established to expand the foreign trade sector. ⊚ true ⊚ false

Question Details Bloom's : Understand Difficulty : 2 Medium Learning Objective : 06-05 Explain the key provisions of the Dodd-Frank Wall Street Reform and Consum Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > TF Qu. 37 The Dodd-Frank Wall Street Reform and Consum...

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566)

The Consumer Financial Protection Bureau is a government agency within the Federal Reserve that oversees financial products and services. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-05 Explain the key provisions of the Dodd-Frank Wall Street Reform and Consum Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > TF Qu. 38 The Consumer Financial Protection Bureau is ...

567)

The authority of the Consumer Financial Protection Bureau does not extend to examining and enforcing regulations for banks and credit unions if their assets exceed $10 billion. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-05 Explain the key provisions of the Dodd-Frank Wall Street Reform and Consum Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > TF Qu. 39 The authority of the Consumer Financial Prot...

568)

The Financial Stability Oversight Council is not authorized to act against a bank that poses a threat to the financial stability of the United States if its assets exceed $50 billion. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-05 Explain the key provisions of the Dodd-Frank Wall Street Reform and Consum Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > TF Qu. 40 The Financial Stability Oversight Council is...

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569)

The Financial Stability Oversight Council is led by the Treasury secretary and is made up of top financial regulators. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-05 Explain the key provisions of the Dodd-Frank Wall Street Reform and Consum Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > TF Qu. 41 The Financial Stability Oversight Council is...

570)

The Volcker rule proposed that there should be a key restriction in the legislation to limit the ability of banks to trade on their own accounts. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-05 Explain the key provisions of the Dodd-Frank Wall Street Reform and Consum Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > TF Qu. 42 QThe Volcker rule proposed that there should ...

571)

The original Volcker rule sought to allow trading of all derivatives without discrimination. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-05 Explain the key provisions of the Dodd-Frank Wall Street Reform and Consum Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > TF Qu. 43 The original Volcker rule sought to allow tr...

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252

572)

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

A) the U.S. Federal Sentencing Guidelines for Organizations B) the U.S. Federal International Customary Law C) the U.S. Federal Procurement Regulations System D) the U.S. Federal Standards for Commercial Services

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-01 Identify the five key pieces of U.S. legislation designed to discourage; i Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > MC Qu. 44 Which of the following key U.S. legislations...

573)

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

A) the Glass-Steagall Act B) the Sarbanes-Oxley Act C) the Gramm-Leach-Bliley Act D) the Taft-Harley Act

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-01 Identify the five key pieces of U.S. legislation designed to discourage; i Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > MC Qu. 45 Which of the following did the government fo...

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574)

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

A) the Foreign Assistance Act B) the Fair Credit Reporting Act C) the Fair Business Standards Act D) the Foreign Corrupt Practices Act

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-02 Understand the purpose and significance of the Foreign Corrupt Practices A Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > MC Qu. 46 Which of the following is a legislation that...

575)

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

A) the Securities and Exchange Commission B) the Dodd-Frank Wall Street Reform and Consumer Protection Act C) the U.S. Federal Sentencing Guidelines for Organizations D) the Ethics Resource Center

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-02 Understand the purpose and significance of the Foreign Corrupt Practices A Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > MC Qu. 47 Which of the following legislations could fi...

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576)

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

A) the Trade Commission Act B) the Consumer Protection Act C) the Bank Secrecy Act D) the Government Corporate Control Act

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-02 Understand the purpose and significance of the Foreign Corrupt Practices A Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > MC Qu. 48 Which of the following legislations required...

577)

Which of the following statements is true of the Foreign Corrupt Practices Act? A) It is jointly enforced by the Federal Bureau of Investigation and the Ministry of Internal Affairs.

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

C) It replaced the Dodd-Frank Wall Street Reform and Consumer Protection Act. D) It ignores stipulations laid down by the Bank Secrecy Act and the Mail Fraud Act.

Question Details Learning Objective : 06-02 Understand the purpose and significance of the Foreign Corrupt Practices A Bloom's : Understand Difficulty : 2 Medium Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > MC Qu. 49 Which of the following statements is true of...

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578)

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

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

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

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

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

Question Details Learning Objective : 06-02 Understand the purpose and significance of the Foreign Corrupt Practices A Difficulty : 3 Hard Bloom's : Analyze Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > MC Qu. 50 Sebastian and Amy are arguing over secondary...

579)

Which of the following government agencies jointly enforce the Foreign Corrupt Practices Act? A) The U.S. Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) B) The U.S. Congress Office of Compliance and the Federal Judicial Center C) The U.S. National Economic Council (NEC) and the Government Accountability Office (GAO) D) The U.S. Department of Commerce and the Office of Financial Research

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-02 Understand the purpose and significance of the Foreign Corrupt Practices A Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > MC Qu. 51 Which of the following government agencies j...

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580)

Why was the Foreign Corrupt Practices Act criticized?

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

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

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

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

Question Details Learning Objective : 06-02 Understand the purpose and significance of the Foreign Corrupt Practices A Bloom's : Understand Difficulty : 2 Medium Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > MC Qu. 52 Why was the Foreign Corrupt Practices Act cr...

581)

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

A) facilitation payments B) accentuation payments C) alternative payments D) implicit payments

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-02 Understand the purpose and significance of the Foreign Corrupt Practices A Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > MC Qu. 53 Under the Foreign Corrupt Practices Act, pay...

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582)

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

A) accentuation payment B) facilitation payment C) explicit payment D) implicit payment

Question Details Learning Objective : 06-02 Understand the purpose and significance of the Foreign Corrupt Practices A Bloom's : Apply Difficulty : 3 Hard Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > MC Qu. 54 Brendon Inc. required a permit to open its b...

583)

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

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

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

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

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

Question Details Learning Objective : 06-02 Understand the purpose and significance of the Foreign Corrupt Practices A Bloom's : Understand Difficulty : 2 Medium Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > MC Qu. 55 Which of the following is true of facilitati...

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584)

Which of the following is a routine governmental action?

A) allocating funds for companies to make facilitation payments overseas B) providing legal immunity for the employees of foreign companies C) providing police protection for the transit of goods across a country D) accepting payment from a foreign company in return for an exclusive contract

Question Details Learning Objective : 06-02 Understand the purpose and significance of the Foreign Corrupt Practices A Bloom's : Understand Difficulty : 2 Medium Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > MC Qu. 56 Which of the following is a routine governme...

585)

Which of the following is true of the penalties under the Foreign Corrupt Practices Act? A) The Department of Justice can enforce criminal penalties of up to $20 million per violation for corporations and other business entities.

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

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

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

Question Details Learning Objective : 06-02 Understand the purpose and significance of the Foreign Corrupt Practices A Bloom's : Understand Difficulty : 2 Medium Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > MC Qu. 57 Which of the following is true of the penalt...

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586)

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

A) grease payments B) facilitation payments C) bribes D) costs

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-02 Understand the purpose and significance of the Foreign Corrupt Practices A Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > MC Qu. 58 Under the Foreign Corrupt Practices Act, pay...

587)

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

A) grease payments B) induced payments C) implicit payments D) accentuating payments

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-02 Understand the purpose and significance of the Foreign Corrupt Practices A Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > MC Qu. 59 Under the Foreign Corrupt Practices Act, pay...

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588)

Which of the following is a difference between grease payments and bribes under the Foreign Corrupt Practices Act? A) Unlike grease payments, bribes induce foreign officials to act in violation of their lawful duty.

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

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

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

Question Details Learning Objective : 06-02 Understand the purpose and significance of the Foreign Corrupt Practices A Bloom's : Understand Difficulty : 2 Medium Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > MC Qu. 60 Which of the following is a difference betwe...

589)

Under the Foreign Corrupt Practices Act (FCPA), which of the following is considered illegal behavior?

A) record-keeping provisions B) political contributions C) donations to foreign charities D) grease payments

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-02 Understand the purpose and significance of the Foreign Corrupt Practices A Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > MC Qu. 61 Under the Foreign Corrupt Practices Act (FCP...

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590)

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

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

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

C) It decreases the costs of unethical behavior.

D) It covers very few business crimes.

Question Details Bloom's : Understand Difficulty : 2 Medium Learning Objective : 06-03 Calculate monetary fines under the three-step process of the U.S. Federal Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > MC Qu. 62 Which of the following statements is true of...

591)

The culpability score of an organization can be decreased if A) the CEO of the organization was involved in or tolerated the criminal activity.

B) the organization can prove that an employee was entirely responsible for the criminal conduct.

C) the organization had an effective program to prevent and detect violations of law.

D) the management lacked knowledge about the crime.

Question Details Bloom's : Understand Difficulty : 2 Medium Learning Objective : 06-03 Calculate monetary fines under the three-step process of the U.S. Federal Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > MC Qu. 63 The culpability score of an organization can...

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592)

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

A) They do not include monetary fines.

B) They include organizational probation.

C) They are not levied on small businesses.

D) They are levied only on foreign corporations.

Question Details Bloom's : Understand Difficulty : 2 Medium Learning Objective : 06-03 Calculate monetary fines under the three-step process of the U.S. Federal Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > MC Qu. 64 Which of the following is true of the penalt...

593)

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

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

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

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

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

Question Details Bloom's : Understand Difficulty : 2 Medium Learning Objective : 06-03 Calculate monetary fines under the three-step process of the U.S. Federal Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > MC Qu. 65 Which of the following statements is true of...

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594)

The formula used to calculate the total fine sentenced by the Federal Sentencing Guidelines for Organizations (FSGO) is A) the base fine multiplied by the culpability score.

B) the base fine plus the culpability score.

C) the base fine minus the culpability score.

D) the base fine divided by the culpability score.

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-03 Calculate monetary fines under the three-step process of the U.S. Federal Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > MC Qu. 66 The formula used to calculate the total fine...

595)

The maximum penalty that a judge can impose upon an organization for violating the Federal Sentencing Guidelines for Organizations is a penalty worth A) a tenth of the organization's assets.

B) a quarter of the organization's assets.

C) half of the organization's assets.

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

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-03 Calculate monetary fines under the three-step process of the U.S. Federal Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > MC Qu. 67 The maximum penalty that a judge can impose ...

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596)

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

A) prohibition payment B) death penalty C) facilitation payment D) relative penalty

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-03 Calculate monetary fines under the three-step process of the U.S. Federal Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > MC Qu. 68 The ________ is a fine that is set high enou...

597)

Under the Federal Sentencing Guidelines for Organizations, the death penalty A) can only be conferred upon multinational corporations and not on smaller businesses.

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

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

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

Question Details Bloom's : Understand Difficulty : 2 Medium Learning Objective : 06-03 Calculate monetary fines under the three-step process of the U.S. Federal Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > MC Qu. 69 Under the Federal Sentencing Guidelines for ...

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598)

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

A) reporting a business's financial condition to the court on a periodic basis B) reporting confidential details of all employees to the court on a periodic basis C) reporting progress to the FSGO in expediting or securing the performance of routine governmental favors D) reporting progress to the FSGO in making monetary contributions to the U.S. political parties

Question Details Bloom's : Understand Difficulty : 2 Medium Learning Objective : 06-03 Calculate monetary fines under the three-step process of the U.S. Federal Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > MC Qu. 70 Which of the following requirements is inclu...

599)

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

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

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

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

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

Question Details Bloom's : Understand Difficulty : 2 Medium Learning Objective : 06-03 Calculate monetary fines under the three-step process of the U.S. Federal Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > MC Qu. 71 Which of the following is true of the effect...

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600)

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

A) Sarbanes-Oxley Act B) Glass-Steagall Act C) Bland-Allison Act D) Taft-Harley Act

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-04 Compare and contrast the relative advantages and disadvantages of the Sarb Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > MC Qu. 72 The ________ is a legislative response to th...

601)

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

A) Securities and Exchange Commission B) Consumer Financial Protection Bureau C) Federal Labor Relations Authority D) Public Company Accounting Oversight Board

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-04 Compare and contrast the relative advantages and disadvantages of the Sarb Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > MC Qu. 73 The creation of the ________ was an attempt ...

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602)

Which of the following statements is true of Title II of the Sarbanes-Oxley Act? A) It allows public accounting firms to audit a company whose CEO was employed by that accounting firm within the past 12 months.

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

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

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

Question Details Learning Objective : 06-04 Compare and contrast the relative advantages and disadvantages of the Sarb Bloom's : Understand Difficulty : 2 Medium Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > MC Qu. 74 Which of the following statements is true of...

603)

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

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

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

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

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

Question Details Learning Objective : 06-04 Compare and contrast the relative advantages and disadvantages of the Sarb Bloom's : Understand Difficulty : 2 Medium Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > MC Qu. 75 Which of the following is true of the Sarban...

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604)

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

A) enhanced financial disclosures B) commission resources and authority C) the estimation of auditing fees D) corporate and criminal fraud accountability

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-04 Compare and contrast the relative advantages and disadvantages of the Sarb Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > MC Qu. 76 Title VIII of the Sarbanes-Oxley Act address...

605)

Title IX of the Sarbanes-Oxley Act focuses on A) corporate social responsibility.

B) enhanced financial disclosures.

C) white-collar crime penalty enhancements.

D) corporate fraud and accountability.

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-04 Compare and contrast the relative advantages and disadvantages of the Sarb Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > MC Qu. 77 Title IX of the Sarbanes-Oxley Act focuses o...

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606)

In September and October 2008, financial markets around the world suffered a severe crash as A) there was aggressive lending to subprime borrowers in a deregulated environment.

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

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

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

Question Details Bloom's : Understand Difficulty : 2 Medium Learning Objective : 06-05 Explain the key provisions of the Dodd-Frank Wall Street Reform and Consum Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > MC Qu. 78 In September and October 2008, financial mar...

607)

The ________ refers to the legislation that was promoted as the "fix" for the extreme mismanagement of risk in the financial sector that led to a global financial crisis in 20082010.

A) Glass-Steagall Act B) Sarbanes-Oxley Act C) Dodd-Frank Wall Street Reform and Consumer Protection Act D) Gramm-Leach-Bliley Financial Services Moderation Act

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-05 Explain the key provisions of the Dodd-Frank Wall Street Reform and Consum Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > MC Qu. 79 The ________ refers to the legislation that ...

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608)

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

A) Consumer Financial Protection Bureau B) Ministry of Internal Affairs C) Department of Commerce D) Public Company Accounting Oversight Board

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-05 Explain the key provisions of the Dodd-Frank Wall Street Reform and Consum Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > MC Qu. 80 The ________ is a government agency within t...

609)

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

A) authority to act if a bank with more than $50 billion in assets poses a threat to the financial stability of the United States B) authority to limit the ability of banks to trade on their own accounts C) authority to examine and enforce regulations for banks and credit unions with assets over $10 billion D) authority to conduct studies regarding consolidation of accounting firms

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-05 Explain the key provisions of the Dodd-Frank Wall Street Reform and Consum Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > MC Qu. 81 Which of the following responsibilities was ...

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610)

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

A) U.S. Congress Office of Compliance B) Financial Stability Oversight Council C) Consumer Financial Protection Bureau D) Office of Financial Research

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-05 Explain the key provisions of the Dodd-Frank Wall Street Reform and Consum Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > MC Qu. 82 The ________ is a government agency establis...

611)

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

A) Sarbanes-Oxley Act B) Volcker rule C) Campbell's rule D) Bland-Allison Act

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-05 Explain the key provisions of the Dodd-Frank Wall Street Reform and Consum Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > MC Qu. 83 The ________ states that there should be a k...

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612)

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

A) Ponzi scheme B) Jamaican switch C) Pigeon drop D) Tobashi scheme

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-01 Identify the five key pieces of U.S. legislation designed to discourage; i Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > MC Qu. 84 The illegal and unethical practice of provid...

613)

The ________ is a legislation that was introduced to control bribery and other less obvious forms of payment to foreign officials and politicians by American publicly traded companies.

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-02 Understand the purpose and significance of the Foreign Corrupt Practices A Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > FB Qu. 85 The ________ is a legislation that was intro...

614)

Under the ________ measure, the Foreign Corrupt Practices Act (FCPA) requires that corporations fully disclose any and all transactions conducted with foreign officials and politicians.

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-02 Understand the purpose and significance of the Foreign Corrupt Practices A Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > FB Qu. 86 Under the ________ measure, the Foreign Corr...

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615)

Under the ________ measure, the Foreign Corrupt Practices Act (FCPA) includes wording from the Bank Secrecy Act and the Mail Fraud Act to prevent the movement of funds overseas for the express purpose of conducting a fraudulent scheme.

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-02 Understand the purpose and significance of the Foreign Corrupt Practices A Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > FB Qu. 87 Under the ________ measure, the Foreign Corr...

616)

________ are payments that are acceptable (legal) provided they expedite or secure the performance of a routine government action.

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-02 Understand the purpose and significance of the Foreign Corrupt Practices A Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > FB Qu. 88 ________ are payments that are acceptable (l...

617)

A(n) ________ is any regular administrative process or procedure, excluding any action taken by a foreign official in the decision to award new or continuing business.

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-02 Understand the purpose and significance of the Foreign Corrupt Practices A Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > FB Qu. 89 A(n) ________ is any regular administrative ...

618)

In the process of determining a fine, the calculation of a degree of blame or guilt that is used as a multiplier of up to four times the base fine is known as the ________.

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-03 Calculate monetary fines under the three-step process of the U.S. Federal Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > FB Qu. 90 In the process of determining a fine, the ca...

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619)

The ________ refers to Chapter 8 of the sentencing guidelines that hold businesses liable for the criminal acts of their employees and agents.

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-03 Calculate monetary fines under the three-step process of the U.S. Federal Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > FB Qu. 91 The ________ refers to Chapter 8 of the sent...

620)

Under the Federal Sentencing Guidelines for Organizations, the ________ is a fine that is set high enough to match all the assets of an organization and basically put the organization out of business.

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-03 Calculate monetary fines under the three-step process of the U.S. Federal Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > FB Qu. 92 Under the Federal Sentencing Guidelines for ...

621)

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

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-04 Compare and contrast the relative advantages and disadvantages of the Sarb Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > FB Qu. 93 The ________ is a legislative response to th...

622)

The Sarbanes-Oxley Act (SOX) established the ________ as an independent oversight body for auditing companies.

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-04 Compare and contrast the relative advantages and disadvantages of the Sarb Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > FB Qu. 94 The Sarbanes-Oxley Act (SOX) established the...

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623)

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

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-05 Explain the key provisions of the Dodd-Frank Wall Street Reform and Consum Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > FB Qu. 95 The ________ is a legislation that was promo...

624)

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

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-05 Explain the key provisions of the Dodd-Frank Wall Street Reform and Consum Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > FB Qu. 96 The ________ is a government agency within t...

625)

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

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 06-05 Explain the key provisions of the Dodd-Frank Wall Street Reform and Consum Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > FB Qu. 97 The ________ is a government agency establis...

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626)

How did the Foreign Corrupt Practices Act (FCPA) encompass all the secondary measures that were in use prior to the passing of the act?

Question Details Learning Objective : 06-02 Understand the purpose and significance of the Foreign Corrupt Practices A Bloom's : Understand Difficulty : 2 Medium Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > ES Qu. 98 How did the Foreign Corrupt Practices Act (F...

627)

Differentiate between bribes and grease payments.

Question Details Learning Objective : 06-02 Understand the purpose and significance of the Foreign Corrupt Practices A Bloom's : Understand Difficulty : 2 Medium Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > ES Qu. 99 Differentiate between bribes and grease paym...

628)

Write a short note on the U.S. Federal Sentencing Guidelines for Organizations (FSGO).

Question Details Bloom's : Understand Difficulty : 2 Medium Learning Objective : 06-03 Calculate monetary fines under the three-step process of the U.S. Federal Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > ES Qu. 100 Write a short note on the U.S. Federal Sente...

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629)

Discuss the importance of the Sarbanes-Oxley Act.

Question Details Learning Objective : 06-04 Compare and contrast the relative advantages and disadvantages of the Sarb Bloom's : Understand Difficulty : 2 Medium Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > ES Qu. 101 Discuss the importance of the Sarbanes-Oxley...

630)

Discuss the Dodd-Frank Wall Street Reform and Consumer Protection Act and the agencies that were founded as a result of the passing of this act.

Question Details Bloom's : Understand Difficulty : 2 Medium Learning Objective : 06-05 Explain the key provisions of the Dodd-Frank Wall Street Reform and Consum Accessibility : Keyboard Navigation Source : Chapter 06 Test Bank > ES Qu. 102 Discuss the Dodd-Frank Wall Street Reform an...

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Answer Key Test name: chapter 6 1) TRUE 2) FALSE

Prior to the passing of the Foreign Corrupt Practices Act, bribery and making illegal payments to foreign officials were punishable through "secondary" sources of legislation.

3) FALSE

Prior to the passing of the Foreign Corrupt Practices Act, the Securities and Exchange Commission could fine companies for failing to disclose payments under its securities rules.

4) FALSE

The U.S. Department of Justice and the Securities and Exchange Commission jointly enforce the Foreign Corrupt Practices Act. 5) TRUE 6) TRUE 7) TRUE 8) TRUE 9) TRUE 10) FALSE

The Department of Justice can enforce criminal penalties of up to $2 million per violation for corporations and other business entities.

11) FALSE

Grease payments, such as facilitating payments to foreign officials in order to expedite or secure the performance of a routine governmental action, are legal under the Foreign Corrupt Practices Act. 12) FALSE

Grease payments are not considered bribes. They are payments to foreign officials in order to expedite or secure the performance of a routine governmental action. For example, routine governmental action could include expediting lawful customs clearances, obtaining the issuance of entry or exit visas, and so on.

13) TRUE 14) TRUE 15) FALSE

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The Federal Sentencing Guidelines for Organizations holds businesses liable for the criminal acts of their employees and agents.

16) TRUE 17) FALSE

The sentence of an organization punished under the Federal Sentencing Guidelines for Organizations is determined through a three-step process: determination of the base fine, computation of the culpability score, and determination of the total fine amount.

18) TRUE 19) FALSE

Once the base fine of an organization has been calculated, a judge will compute a corresponding degree of blame or guilt known as the culpability score.

20) FALSE

The culpability score of the Federal Sentencing Guidelines for Organizations is the calculation of the degree of blame or guilt used as a multiplier of up to 4 times the base fine.

21) TRUE 22) FALSE

The culpability score can be increased or decreased according to predetermined factors.

23) TRUE 24) FALSE

According to the Federal Sentencing Guidelines for Organizations, no individuals should be granted excessive discretionary authority, as that would increase the risk of criminal conduct.

25) TRUE 26) TRUE 27) FALSE 28) FALSE

According to the revised Federal Sentencing Guidelines for Organizations (FSGO), corporate officers are expected to be knowledgeable about all aspects of the compliance program, and they are required to receive formal training as it relates to their roles and responsibilities within the organization.

29) TRUE 30) TRUE 31) TRUE 32) FALSE

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Title II of the Sarbanes-Oxley Act requires senior auditors to rotate off an account every five years and junior auditors every seven years.

33) TRUE 34) FALSE

Title VIII of the Sarbanes-Oxley Act provides tougher criminal penalties for altering documents, defrauding shareholders, and certain other forms of obstruction of justice and securities fraud. It also protects employees of companies who provide evidence of fraud.

35) TRUE 36) TRUE 37) FALSE

The Dodd-Frank Wall Street Reform and Consumer Protection Act refers to a legislation that was promoted as the "fix" for the extreme mismanagement of risk in the financial sector that led to a global financial crisis in 2008-2010.

38) FALSE 39) FALSE

The responsibilities granted to the Consumer Financial Protection Bureau are extensive and include authority to examine and enforce regulations for banks and credit unions with assets over $10 billion.

40) FALSE

The Financial Stability Oversight Council is empowered to act if a bank with more than $50 billion in assets "poses a grave threat to the financial stability of the United States."

41) TRUE 42) TRUE 43) FALSE

The original Volcker rule sought to stop the trading of derivatives (which are financial instruments based on the performance of other financial instruments, such as mortgage-backed securities) completely, but was scaled back to a compromise that, it is hoped, will limit the ethically questionable practices of banks taking opposing positions to trades that they are simultaneously promoting to their clients.

44) A 45) B 46) D 47) A 48) C 49) B

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50) C 51) A 52) D 53) A 54) B 55) C 56) C 57) D 58) C 59) A 60) A 61) A 62) B 63) C 64) B 65) A 66) A 67) D 68) B 69) C 70) A 71) A 72) A 73) D 74) C 75) B 76) D 77) C 78) A 79) C 80) A 81) C 82) B 83) B 84) A 85) Foreign Corrupt Practices Act (FCPA) 86) disclosure 87) prohibition 88) Facilitation payments 89) routine governmental action

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90) culpability score 91) Federal Sentencing Guidelines for Organizations (FSGO) 92) death penalty 93) Sarbanes-Oxley Act 94) Public Company Accounting Oversight Board (PCAOB) 95) Dodd-Frank Wall Street Reform and Consumer Protection Act 96) Consumer Financial Protection Bureau (CFPB) 97) Financial Stability Oversight Council (FSOC) 98) Essay

The Foreign Corrupt Practices Act (FCPA) was introduced to control bribery and other less obvious forms of payment to foreign officials and politicians by American publicly traded companies. The Foreign Corrupt Practices Act encompasses all the secondary measures that were in use by focusing on two distinct areas, disclosure and prohibition. Under the disclosure measure, the FCPA requires corporations to fully reveal any and all transactions conducted with foreign officials and politicians, in line with the Securities and Exchange Commission provisions. Under the prohibition measure, the FCPA includes wording from the Bank Secrecy Act and the Mail Fraud Act to prevent the movement of funds overseas for the express purpose of conducting a fraudulent scheme.

99) Essay

Bribes are payments of money or anything else of value to influence or induce any foreign official to act in a manner that would be in violation of his or her lawful duty. Bribes include payments, authorizations, promises, or offers to any other person if there is knowledge that any portion of the payment is to be passed along to a foreign official or foreign political party, official, or candidate for a prohibited purpose under the Foreign Corrupt Practices Act (FCPA).

Grease payments are facilitating payments to foreign officials in order to expedite or secure the performance of a routine governmental action. Grease payments also include marketing expenses, payments lawful under foreign laws, and political contributions. Under the FCPA, grease payments are legal, while bribes are not.

100)

Essay

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The Federal Sentencing Guidelines for Organizations (FSGO) refers to Chapter 8 of the guidelines developed by the U.S. Federal Sentencing Commission. The FSGO holds businesses liable for the criminal acts of their employees and agents. The FSGO requires that organizations police themselves by preventing and detecting the criminal activity of their employees and agents. In its mission to promote ethical organizational behavior and increase the costs of unethical behavior, the FSGO establishes a definition of an organization that is so broad as to prompt the assessment that "no business enterprise is exempt." It includes an exhaustive list of covered business crimes that it appears frighteningly easy for an organization to run afoul of federal crime laws and become subject to FSGO penalties. Penalties under FSGO include monetary fines, organizational probation, and the implementation of an operational program to bring the organization into compliance with FSGO standards.

101)

Essay The Sarbanes-Oxley Act (SOX) became law on July 30, 2003. It was a legislative response to a series of corporate accounting scandals that had begun to dominate the financial markets and mass media since 2001. Launched during a period of extreme investor unrest and agitation, SOX was hailed by some as "one of the most important pieces of legislation governing the behavior of accounting firms and financial markets since [the SEC] legislation in the 1930s."

102)

Essay The Dodd-Frank Wall Street Reform and Consumer Protection Act refers to a legislation that was promoted as the "fix" for the extreme mismanagement of risk in the financial sector that led to a global financial crisis in 2008-2010. The Consumer Financial Protection Bureau (CFPB) and the Financial Stability Oversight Council (FSOC) are the two agencies that were created as a result of the passing of this act. The CFPB is a government agency within the Federal Reserve that oversees financial products and services. The FSOC is a government agency established to prevent banks from failing and otherwise threatening the stability of the U.S. economy.

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Student name:__________ 631)

If an employee's personal value system prompts him or her to speak up about the misconduct of the organization he or she works for, the employee takes on the role of a whistle-blower. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 07-01 Explain the term whistle-blower, and distinguish between internal and exte Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > TF Qu. 01 If an employee's personal value...

632)

A whistle-blower is an individual who discovers corporate misconduct and chooses not to do anything about it. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 07-01 Explain the term whistle-blower, and distinguish between internal and exte Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > TF Qu. 02 A whistle-blower is an individual who discov...

633)

Internal whistle-blowing occurs when an employee discovers corporate misconduct within his or her organization and brings it to the attention of law enforcement agencies and/or the media. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 07-01 Explain the term whistle-blower, and distinguish between internal and exte Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > TF Qu. 03 Internal whistle-blowing occurs when an empl...

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634)

Internal whistle-blowing involves an employee bringing the organization's misconduct to the attention of his or her manager or supervisor and taking the complaint through appropriate channels within the organization. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 07-01 Explain the term whistle-blower, and distinguish between internal and exte Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > TF Qu. 04 Internal whistle-blowing involves an employe...

635)

External whistle-blowing occurs when an employee brings the misconduct of the organization—that he or she is employed by—to the attention of law enforcement officials. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 07-01 Explain the term whistle-blower, and distinguish between internal and exte Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > TF Qu. 05 External whistle-blowing occurs when an empl...

636)

If an individual reports a company—that he or she is not employed by—for misconduct, the individual is called an external whistle-blower. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 07-01 Explain the term whistle-blower, and distinguish between internal and exte Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > TF Qu. 06 If an individual reports a company—tha...

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637)

Whistle-blowers are often severely criticized since they have in some way breached the trust and loyalty they owe to their employers. ⊚ true ⊚ false

Question Details Learning Objective : 07-02 Understand the different motivations of a whistle-blower.

Bloom's : Understand Difficulty : 2 Medium Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > TF Qu. 07 Whistle-blowers are often severely criticize...

638)

It is argued that the actions of whistle-blowers are not always motivated by their integrity, but by money or by their egos. ⊚ true ⊚ false

Question Details Learning Objective : 07-02 Understand the different motivations of a whistle-blower.

Bloom's : Understand Difficulty : 2 Medium Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > TF Qu. 08 It is argued that the actions of whistle-blo...

639)

Whistle-blowing is not considered ethical under any circumstances. ⊚ true ⊚ false

Question Details Learning Objective : 07-02 Understand the different motivations of a whistle-blower.

Bloom's : Understand Difficulty : 2 Medium Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > TF Qu. 09 Whistle-blowing is not considered ethical un...

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640)

Whistle-blowing is ethical in situations where the company, through a product or decision, will cause serious and considerable harm to the public. ⊚ true ⊚ false

Question Details Learning Objective : 07-02 Understand the different motivations of a whistle-blower.

Bloom's : Understand Difficulty : 2 Medium Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > TF Qu. 10 Whistle-blowing is ethical in situations whe...

641)

When a whistle-blower's immediate supervisor does not act, the employee should exhaust the company's internal procedures and chain of command to the board of directors. ⊚ true ⊚ false

Question Details Learning Objective : 07-02 Understand the different motivations of a whistle-blower.

Bloom's : Understand Difficulty : 2 Medium Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > TF Qu. 11 When a whistle-blower's immediate...

642)

The Civil False Claims Act was originally enacted during the Civil War in 1863 to safeguard whistle-blowers against retaliation aimed at them. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 07-02 Understand the different motivations of a whistle-blower.

Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > TF Qu. 12 The Civil False Claims Act was originally en...

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643)

If there is evidence that the employee is motivated by the opportunity for financial gain, the legitimacy of his or her whistle-blowing should be questioned. ⊚ true ⊚ false

Question Details Learning Objective : 07-02 Understand the different motivations of a whistle-blower.

Bloom's : Understand Difficulty : 2 Medium Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > TF Qu. 13 If there is evidence that the employee is mo...

644)

If there is evidence that the employee is carrying out an individual vendetta against the company, the legitimacy of his or her whistle-blowing should be questioned. ⊚ true ⊚ false

Question Details Learning Objective : 07-02 Understand the different motivations of a whistle-blower.

Bloom's : Understand Difficulty : 2 Medium Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > TF Qu. 14 If there is evidence that the employee is ca...

645)

An employee can never benefit from whistle-blowing in the corporate sector. ⊚ true ⊚ false

Question Details Learning Objective : 07-02 Understand the different motivations of a whistle-blower.

Bloom's : Understand Difficulty : 2 Medium Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > TF Qu. 15 An employee can never benefit from whistle-b...

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646)

Under the federal Civil False Claims Act, whistle-blowers are referred to as "relators." ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 07-02 Understand the different motivations of a whistle-blower.

Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > TF Qu. 16 Under the federal Civil False Claims Act, wh...

647)

The federal Civil False Claims Act prevents whistle-blowers from implicating the government in any way. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 07-02 Understand the different motivations of a whistle-blower.

Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > TF Qu. 17 The federal Civil False Claims Act prevents ...

648)

Under the federal Civil False Claims Act, whistle-blowers who expose fraudulent behavior against the government are entitled to a minimum of 75 percent of the amount recovered. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 07-02 Understand the different motivations of a whistle-blower.

Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > TF Qu. 18 Under the federal Civil False Claims Act, wh...

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649)

The False Claims Act was amended in 1986 to make the penalization for whistle-blowers stiffer. ⊚ true ⊚ false

Question Details Learning Objective : 07-02 Understand the different motivations of a whistle-blower.

Bloom's : Understand Difficulty : 2 Medium Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > TF Qu. 19 The False Claims Act was amended in 1986 to ...

650)

Aqui tam lawsuit is a lawsuit brought on behalf of the federal government by a whistleblower under the False Claims Act of 1863. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 07-02 Understand the different motivations of a whistle-blower.

Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > TF Qu. 20 A qui tam lawsuit is a lawsuit brought on be...

651)

Qui tam lawsuits are illegal under the False Claims Act. ⊚ true ⊚ false

Question Details Learning Objective : 07-02 Understand the different motivations of a whistle-blower.

Bloom's : Understand Difficulty : 2 Medium Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > TF Qu. 21 Qui tam lawsuits are illegal under the False...

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652)

The abbreviation "qui tam" establishes a whistle-blower as a deputized petitioner for the government in cases that expose fraudulent behavior of companies. ⊚ true ⊚ false

Question Details Learning Objective : 07-02 Understand the different motivations of a whistle-blower.

Bloom's : Understand Difficulty : 2 Medium Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > TF Qu. 22 The abbreviation "qui tam" establishes a whi...

653)

The evidence of a company's misconduct—even if supported by genuine, documented proof—will be rejected and the case dismissed if there is evidence that the whistle-blower was motivated by financial gain. ⊚ true ⊚ false

Question Details Learning Objective : 07-02 Understand the different motivations of a whistle-blower.

Bloom's : Understand Difficulty : 2 Medium Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > TF Qu. 23 The evidence of a company's...

654)

Tracking the history of internal whistle-blowing is easier than tracking the history of external whistle-blowing. ⊚ true ⊚ false

Question Details Learning Objective : 07-02 Understand the different motivations of a whistle-blower.

Bloom's : Understand Difficulty : 2 Medium Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > TF Qu. 24 Tracking the history of internal whistle-blo...

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655)

Organizations can prevent the embarrassment and potential financial ruin caused by whistle-blowing by creating an internal system that gives whistle-blowers the option of being heard, thus resolving the issue in private. ⊚ true ⊚ false

Question Details Bloom's : Understand Difficulty : 2 Medium Learning Objective : 07-03 Evaluate the possible consequences of ignoring the concerns of a whistle-b Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > TF Qu. 25 Organizations can prevent the embarrassment ...

656)

Whistle-blowers, throughout history, have always been granted legal protection against retaliatory behavior. ⊚ true ⊚ false

Question Details Bloom's : Understand Difficulty : 2 Medium Learning Objective : 07-03 Evaluate the possible consequences of ignoring the concerns of a whistle-b Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > TF Qu. 26 Whistle-blowers, throughout history, have al...

657)

Though whistle-blowers are criticized for breaking the oath of loyalty to their employer, employees are becoming increasingly willing to respond to any questionable behavior they observe in the workplace. ⊚ true ⊚ false

Question Details Bloom's : Understand Difficulty : 2 Medium Learning Objective : 07-03 Evaluate the possible consequences of ignoring the concerns of a whistle-b Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > TF Qu. 27 Though whistle-blowers are criticized for br...

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658)

Before the Whistleblower Protection Act of 1989 was passed, whistle-blowers were not entitled to any sort of monetary reward from the government. ⊚ true ⊚ false

Question Details Bloom's : Understand Difficulty : 2 Medium Learning Objective : 07-03 Evaluate the possible consequences of ignoring the concerns of a whistle-b Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > TF Qu. 28 Before the Whistleblower Protection Act of 1...

659)

The False Claims Act of 1863 specifically protected whistle-blowers from retaliatory behavior. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 07-03 Evaluate the possible consequences of ignoring the concerns of a whistle-b Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > TF Qu. 29 The False Claims Act of 1863 specifically pr...

660)

The Whistleblower Protection Act of 1989 first addressed the issue of retaliation against corporate employees who bring accusations of unethical behavior. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 07-03 Evaluate the possible consequences of ignoring the concerns of a whistle-b Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > TF Qu. 30 The Whistleblower Protection Act of 1989 fir...

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294

661)

Currently, legal protection for whistle-blowers who are federal employees exists only through legislation that encourages the moral behavior of employees who feel compelled to speak out, without offering any safeguards against retaliation aimed at them. ⊚ true ⊚ false

Question Details Bloom's : Understand Difficulty : 2 Medium Learning Objective : 07-03 Evaluate the possible consequences of ignoring the concerns of a whistle-b Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > TF Qu. 31 Currently, legal protection for whistle-blow...

662)

The Whistleblower Protection Act of 1989 required prompt payment of any portion of a settlement to which the whistle-blower would be entitled, even if the case was still working its way through the appeals process. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 07-03 Evaluate the possible consequences of ignoring the concerns of a whistle-b Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > TF Qu. 32 The Whistleblower Protection Act of 1989 req...

663)

The Whistleblower Protection Act of 1989 did not apply to federal employees. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 07-03 Evaluate the possible consequences of ignoring the concerns of a whistle-b Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > TF Qu. 33 The Whistleblower Protection Act of 1989 did...

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664)

The Sarbanes-Oxley Act of 2002 not only prohibits retaliation against whistle-blowers but also encourages the act of whistle-blowing itself. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 07-03 Evaluate the possible consequences of ignoring the concerns of a whistle-b Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > TF Qu. 34 The Sarbanes-Oxley Act of 2002 not only proh...

665)

The Whistleblower Protection Act of 1989 is also known as the Corporate and Criminal Fraud Accountability Act. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 07-03 Evaluate the possible consequences of ignoring the concerns of a whistle-b Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > TF Qu. 35 The Whistleblower Protection Act of 1989 is ...

666)

The Whistleblower Protection Act of 1989 introduced a new reward program for whistleblowers who report securities law violations to the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC). ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 07-03 Evaluate the possible consequences of ignoring the concerns of a whistle-b Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > TF Qu. 36 The Whistleblower Protection Act of 1989 int...

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667)

Under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, a whistle-blower is penalized stiffly for acting against the Commodity Futures Trading Commission. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 07-03 Evaluate the possible consequences of ignoring the concerns of a whistle-b Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > TF Qu. 37 Under the Dodd-Frank Wall Street Reform and ...

668)

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 stipulates that if more than $1 million is collected, the whistle-blower is entitled to between 10 and 30 percent of the monies collected. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 07-03 Evaluate the possible consequences of ignoring the concerns of a whistle-b Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > TF Qu. 38 The Dodd-Frank Wall Street Reform and Consum...

669)

The "Office of the Whistleblower" was created by the Securities and Exchange Commission. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 07-03 Evaluate the possible consequences of ignoring the concerns of a whistle-b Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > TF Qu. 39 The "Office of the Whistleblower" was create...

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297

670)

An employee can anonymously alert a company of suspected misconduct within the organization using the whistle-blower hotline. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 07-04 Recommend how to build internal policies to address the needs of whistle-b Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > TF Qu. 40 An employee can anonymously alert a company ...

671)

The whistle-blower hotline is used by the government to keep track of whistle-blowers. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 07-04 Recommend how to build internal policies to address the needs of whistle-b Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > TF Qu. 41 The whistle-blower hotline is used by the go...

672)

For a whistle-blower hotline to work, trust must be established between employees and their employer. ⊚ true ⊚ false

Question Details Bloom's : Understand Difficulty : 2 Medium Learning Objective : 07-04 Recommend how to build internal policies to address the needs of whistle-b Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > TF Qu. 42 For a whistle-blower hotline to work, trust ...

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673)

Becoming a whistle-blower and taking the story public should be seen as the first resort rather than the last. ⊚ true ⊚ false

Question Details Bloom's : Understand Difficulty : 2 Medium Learning Objective : 07-05 Analyze the possible risks involved in becoming a whistle-blower.

Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > TF Qu. 43 Becoming a whistle-blower and taking the sto...

674)

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

A) whistle-blower B) history-sheeter C) agent provocateur D) criminal informant

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 07-01 Explain the term whistle-blower, and distinguish between internal and exte Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > MC Qu. 44 An employee who discovers corporate miscondu...

675)

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

A) External B) Internal C) Involuntary D) Assertive

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 07-01 Explain the term whistle-blower, and distinguish between internal and exte Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > MC Qu. 45 ________ whistle-blowing involves an employe...

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676)

The two types of whistle-blowing, internal and external, are categorized based on A) whom the whistle-blower chooses to inform.

B) the motivation of the whistle-blower.

C) the type of organizational misconduct.

D) the nationality of the whistle-blower.

Question Details Bloom's : Understand Difficulty : 2 Medium Learning Objective : 07-01 Explain the term whistle-blower, and distinguish between internal and exte Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > MC Qu. 46 The two types of whistle-blowing, internal a...

677)

In internal whistle-blowing, an employee who discovers corporate misconduct brings it to the attention of A) his or her relatives.

B) the media.

C) the government.

D) his or her manager or supervisor.

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 07-01 Explain the term whistle-blower, and distinguish between internal and exte Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > MC Qu. 47 In internal whistle-blowing, an employee who...

678)

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

A) external B) internal C) incurred D) exact

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 07-01 Explain the term whistle-blower, and distinguish between internal and exte Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > MC Qu. 48 In ________ whistle-blowing, an employee who...

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679)

In external whistle-blowing, an employee who discovers corporate misconduct brings it to the attention of A) the chief executive officer of his or her organization.

B) his or her supervisor.

C) the law enforcement agencies.

D) his or her human resource manager.

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 07-01 Explain the term whistle-blower, and distinguish between internal and exte Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > MC Qu. 49 In external whistle-blowing, an employee who...

680)

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

A) explicit B) internal C) assertive D) implicit

Question Details Learning Objective : 07-01 Explain the term whistle-blower, and distinguish between internal and exte Bloom's : Apply Difficulty : 3 Hard Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > MC Qu. 50 Alan, an employee at Urania Corp., finds a m...

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681)

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

A) indexed B) expiate C) internal D) external

Question Details Learning Objective : 07-01 Explain the term whistle-blower, and distinguish between internal and exte Bloom's : Apply Difficulty : 3 Hard Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > MC Qu. 51 Sandra, an executive officer of a company, h...

682)

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

A) Laura, who files a complaint against one of her company's suppliers for not meeting a project requirement within the specified time B) Evelyn, who reports to a senior manager that her supervisor deliberately stocks expired food products on the shelves of the super market C) Benjamin, who alleges to the federal government that the company he works for is fixing prices with its competitors D) Ray, who discovers and ignores the fact that his company's main competitor is engaging something unethical

Question Details Learning Objective : 07-01 Explain the term whistle-blower, and distinguish between internal and exte Bloom's : Apply Difficulty : 3 Hard Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > MC Qu. 52 Which of the following employees is an exter...

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683)

Under which of the following conditions is whistle-blowing considered unethical?

A) when an employee is carrying out a vendetta against the company B) when an employee is unable to document evidence that is convincing to an impartial observer C) when a company's product will cause serious harm to its consumers D) when a company, through a decision, breaks existing laws

Question Details Learning Objective : 07-02 Understand the different motivations of a whistle-blower.

Bloom's : Understand Difficulty : 2 Medium Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > MC Qu. 53 Under which of the following conditions is w...

684)

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

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

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

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

D) They are often criticized and considered troublemakers.

Question Details Learning Objective : 07-02 Understand the different motivations of a whistle-blower.

Bloom's : Understand Difficulty : 2 Medium Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > MC Qu. 54 Which of the following statements is true of...

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303

685)

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

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

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

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

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

Question Details Learning Objective : 07-02 Understand the different motivations of a whistle-blower.

Bloom's : Understand Difficulty : 2 Medium Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > MC Qu. 55 Which of the following is true of corporate ...

686)

The original reason for the enactment of the Civil False Claims Act was to A) protect the government from fraudulent defense contractors.

B) prevent corporate retaliation against federal whistle-blowers.

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

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

Question Details Learning Objective : 07-02 Understand the different motivations of a whistle-blower.

Bloom's : Understand Difficulty : 2 Medium Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > MC Qu. 56 The original reason for the enactment of the...

687)

Which of the following acts is also known as "Lincoln's Law"?

A) the Sarbanes-Oxley Act of 2002 B) the False Claims Act of 1863 C) the Whistleblower Protection Act of 1989 D) the Consumer Protection Act of 2010

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 07-02 Understand the different motivations of a whistle-blower.

Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > MC Qu. 57 Which of the following acts is also known as...

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304

688)

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

A) Civil False Claims Act B) Fair Employment Practice Act C) Enforcement Act D) Civil Liberties Act

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 07-02 Understand the different motivations of a whistle-blower.

Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > MC Qu. 58 Whistle-blowers who expose fraudulent behavi...

689)

The False Claims Act was strengthened in 1986 to A) deter whistle-blowers from speaking up by penalizing them.

B) protect nonfederal employees from corporate retaliation.

C) reject evidence provided by nonfederal whistle-blowers.

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

Question Details Learning Objective : 07-02 Understand the different motivations of a whistle-blower.

Bloom's : Understand Difficulty : 2 Medium Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > MC Qu. 59 The False Claims Act was strengthened in 198...

690)

Aqui tam lawsuit is a lawsuit brought on behalf of the federal government by a whistleblower under the ________ of 1863.

A) Foreign Corrupt Practices Act B) Civil False Claims Act C) Civil Liberties Act D) Fair Employment Practice Act

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 07-02 Understand the different motivations of a whistle-blower.

Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > MC Qu. 60 A qui tam lawsuit is a lawsuit brought on be...

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305

691)

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

A) quo warranto lawsuit B) qui tam lawsuit C) pro tanto lawsuit D) per curiam lawsuit

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 07-02 Understand the different motivations of a whistle-blower.

Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > MC Qu. 61 A ________ is a lawsuit brought on behalf of...

692)

Which of the following statements is true ofqui tam lawsuits?

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

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

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

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

Question Details Learning Objective : 07-02 Understand the different motivations of a whistle-blower.

Bloom's : Understand Difficulty : 2 Medium Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > MC Qu. 62 Which of the following statements is true of...

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693)

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

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

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

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

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

Question Details Learning Objective : 07-02 Understand the different motivations of a whistle-blower.

Bloom's : Understand Difficulty : 2 Medium Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > MC Qu. 63 Which of the following is a difference betwe...

694)

It is difficult to track the history of internal whistle-blowing because A) it rarely receives attention from the media.

B) it is illegal under the Sarbanes-Oxley Act. C) corporate whistle-blowing is usually ignored.

D) corporate wrongdoing is a rare phenomenon.

Question Details Learning Objective : 07-02 Understand the different motivations of a whistle-blower.

Bloom's : Understand Difficulty : 2 Medium Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > MC Qu. 64 It is difficult to track the history of inte...

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695)

Prior to 2002, legal protection for whistle-blowers existed only through legislation that A) safeguarded federal employees from retaliatory behavior aimed at them.

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

C) safeguarded only nonfederal employees from corporate retaliatory behavior.

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

Question Details Bloom's : Understand Difficulty : 2 Medium Learning Objective : 07-03 Evaluate the possible consequences of ignoring the concerns of a whistle-b Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > MC Qu. 65 Prior to 2002, legal protection for whistle-...

696)

Which of the following statements is true of the federal Civil False Claims Act? A) It rejected cases brought by whistle-blowers who were motivated by monetary gain.

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

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

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

Question Details Bloom's : Understand Difficulty : 2 Medium Learning Objective : 07-03 Evaluate the possible consequences of ignoring the concerns of a whistle-b Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > MC Qu. 66 Which of the following statements is true of...

697)

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

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

B) It was designed to prevent profiteering from the Civil War. C) It addressed the issue of retaliation against federal employees.

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

Question Details Bloom's : Understand Difficulty : 2 Medium Learning Objective : 07-03 Evaluate the possible consequences of ignoring the concerns of a whistle-b Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > MC Qu. 67 Which of the following statements is true of...

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698)

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

A) Sarbanes-Oxley Act of 2002 B) Whistleblower Protection Act of 1989 C) False Claims Act of 1863 D) Rehabilitation Act of 1973

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 07-03 Evaluate the possible consequences of ignoring the concerns of a whistle-b Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > MC Qu. 68 The ________ first addressed the issue of re...

699)

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

A) Sarbanes-Oxley Act B) Whistleblower Protection Act C) Fair Employment Practice Act D) Civil Liberties Act

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 07-03 Evaluate the possible consequences of ignoring the concerns of a whistle-b Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > MC Qu. 69 The ________ of 1989 guaranteed the anonymit...

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700)

The Whistleblower Protection Act of 1989 guaranteed the anonymity of the whistleblower unless A) the individual is a federal employee.

B) revealing the name would protect public safety.

C) the individual is an immigrant.

D) revealing the name would attract huge media attention.

Question Details Bloom's : Understand Difficulty : 2 Medium Learning Objective : 07-03 Evaluate the possible consequences of ignoring the concerns of a whistle-b Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > MC Qu. 70 The Whistleblower Protection Act of 1989 gua...

701)

By introducing ________, Congress took an integrated approach to the matter of whistleblowing by both prohibiting retaliation against whistle-blowers and encouraging the act of whistle-blowing itself.

A) the Employee Protection and Care Act of 2013 B) the Sarbanes-Oxley Act of 2002 C) the Consumer Protection Act of 2010 D) the Whistleblower Protection Act of 1989

Question Details Bloom's : Understand Difficulty : 2 Medium Learning Objective : 07-03 Evaluate the possible consequences of ignoring the concerns of a whistle-b Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > MC Qu. 71 By introducing ________, Congress took an in...

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702)

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

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

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

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

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

Question Details Bloom's : Understand Difficulty : 2 Medium Learning Objective : 07-03 Evaluate the possible consequences of ignoring the concerns of a whistle-b Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > MC Qu. 72 Which of the following is true of the Whistl...

703)

The Sarbanes-Oxley Act of 2002 is also known as A) the Employee Protection and Care Act. B) the Comprehensive Crime Control Act. C) the Dodd-Frank Wall Street Reform and Protection Act. D) the Corporate and Criminal Fraud Accountability Act.

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 07-03 Evaluate the possible consequences of ignoring the concerns of a whistle-b Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > MC Qu. 73 The Sarbanes-Oxley Act of 2002 is also known...

704)

Which of the following statements is true of the Sarbanes-Oxley Act? A) It prohibits retaliation against whistleblowers and encourages the act of whistleblowing itself.

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

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

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

Question Details Bloom's : Understand Difficulty : 2 Medium Learning Objective : 07-03 Evaluate the possible consequences of ignoring the concerns of a whistle-b Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > MC Qu. 74 Which of the following statements is true of...

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311

705)

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

A) Employee Protection and Care Act B) Comprehensive Crime Control Act C) Dodd-Frank Wall Street Reform and Consumer Protection Act D) Corporate and Criminal Fraud Accountability Act

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 07-03 Evaluate the possible consequences of ignoring the concerns of a whistle-b Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > MC Qu. 75 The ________ introduced a reward program for...

706)

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

A) between 10 and 30 percent B) a minimum of 50 percent C) a minimum of 75 percent D) between 50 and 75 percent

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 07-03 Evaluate the possible consequences of ignoring the concerns of a whistle-b Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > MC Qu. 76 The Dodd-Frank Wall Street Reform and Consum...

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312

707)

Ken reported misconduct in his organization to the Securities and Exchange Commission.

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

A) the Corporate and Criminal Fraud Accountability Act B) the Fair Employment Practice Act C) the Corporate and Civil False Claims Act D) the Dodd-Frank Wall Street Reform and Consumer Protection Act

Question Details Bloom's : Apply Difficulty : 3 Hard Learning Objective : 07-03 Evaluate the possible consequences of ignoring the concerns of a whistle-b Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > MC Qu. 77 Ken reported misconduct in his organization ...

708)

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

A) Merit Systems Protection Commission B) Commodity Futures Trading Commission C) Securities and Exchange Commission D) Consumer Product Safety Commission

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 07-03 Evaluate the possible consequences of ignoring the concerns of a whistle-b Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > MC Qu. 78 The "Office of the Whistleblower" was create...

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313

709)

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

A) whistle-blower hotline B) criminal informant hotline C) employee assistance helpline D) internal corporate helpline

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 07-04 Recommend how to build internal policies to address the needs of whistle-b Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > MC Qu. 79 A(n) ________ is a telephone line where empl...

710)

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

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

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

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

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

Question Details Bloom's : Understand Difficulty : 2 Medium Learning Objective : 07-04 Recommend how to build internal policies to address the needs of whistle-b Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > MC Qu. 80 Which of the following is true of a whistle-...

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711)

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

A) They risk losing their career and financial stability.

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

C) They risk being penalized under the Whistleblower Prevention Act. D) They risk imprisonment under the False Claims Act.

Question Details Bloom's : Understand Difficulty : 2 Medium Learning Objective : 07-05 Analyze the possible risks involved in becoming a whistle-blower.

Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > MC Qu. 81 Which of the following is a major risk faced...

712)

A(n) ________ is an employee who discovers corporate misconduct and chooses to bring it to the attention of others.

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 07-01 Explain the term whistle-blower, and distinguish between internal and exte Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > FB Qu. 82 A(n) ________ is an employee who discovers c...

713)

A(n) ________ is an employee who discovers corporate misconduct and brings it to the attention of his or her supervisor, who then follows established procedures to address the misconduct within the organization.

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 07-01 Explain the term whistle-blower, and distinguish between internal and exte Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > MC Qu. 83 A(n) ________ is an employee who discovers c...

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315

714)

A(n) ________ is an employee who discovers corporate misconduct and chooses to bring it to the attention of law enforcement agencies and/or the media.

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 07-01 Explain the term whistle-blower, and distinguish between internal and exte Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > MC Qu. 84 A(n) ________ is an employee who discovers c...

715)

A(n) ________ is a lawsuit brought on behalf of the federal government by a whistleblower under the False Claims Act of 1863.

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 07-02 Understand the different motivations of a whistle-blower.

Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > MC Qu. 85 A(n) ________ is a lawsuit brought on behalf...

716)

A(n) ________ is a telephone line by which employees can leave messages to alert a company of suspected misconduct without revealing their identity.

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 07-04 Recommend how to build internal policies to address the needs of whistle-b Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > MC Qu. 86 A(n) ________ is a telephone line by which e...

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316

717)

Discuss the term whistle-blower. Describe the two types of whistle-blowers.

Question Details Bloom's : Understand Difficulty : 2 Medium Learning Objective : 07-01 Explain the term whistle-blower, and distinguish between internal and exte Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > ES Qu. 87 Discuss the term whistle-blower. Describe th...

718)

What arequi tam lawsuits? How are whistle-blowers rewarded in such lawsuits?

Question Details Learning Objective : 07-02 Understand the different motivations of a whistle-blower.

Bloom's : Understand Difficulty : 2 Medium Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > ES Qu. 88 What are qui tam lawsuits? How are whistle-b...

719)

What sort of protection or encouragement were whistle-blowers offered before the Whistleblowers Protection Act of 1989 was enacted?

Question Details Bloom's : Understand Difficulty : 2 Medium Learning Objective : 07-03 Evaluate the possible consequences of ignoring the concerns of a whistle-b Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > ES Qu. 89 What sort of protection or encouragement wer...

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720)

How does the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 reward whistle-blowers who report securities law violations?

Question Details Bloom's : Understand Difficulty : 2 Medium Learning Objective : 07-03 Evaluate the possible consequences of ignoring the concerns of a whistle-b Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > ES Qu. 90 How does the Dodd-Frank Wall Street Reform a...

721)

Compare the Whistleblower Protection Act of 1989 and the Sarbanes-Oxley Act of 2002.

Question Details Bloom's : Understand Difficulty : 2 Medium Learning Objective : 07-03 Evaluate the possible consequences of ignoring the concerns of a whistle-b Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > ES Qu. 91 Compare the Whistleblower Protection Act of ...

722)

What is a whistle-blower hotline? How can an organization ensure that it is effective?

Question Details Bloom's : Understand Difficulty : 2 Medium Learning Objective : 07-04 Recommend how to build internal policies to address the needs of whistle-b Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > ES Qu. 92 What is a whistle-blower hotline? How can an...

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723)

Describe the mechanisms by which employers can effectively address the needs of whistle-blowers.

Question Details Bloom's : Understand Difficulty : 2 Medium Learning Objective : 07-04 Recommend how to build internal policies to address the needs of whistle-b Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > ES Qu. 93 Describe the mechanisms by which employers c...

724)

Why should whistle-blowing be the last resort?

Question Details Bloom's : Understand Difficulty : 2 Medium Learning Objective : 07-05 Analyze the possible risks involved in becoming a whistle-blower.

Accessibility : Keyboard Navigation Source : Chapter 07 Test Bank > ES Qu. 94 Why should whistle-blowing be the last resor...

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Answer Key Test name: chapter 7 1) TRUE 2) FALSE

A whistle-blower is an employee who discovers corporate misconduct and chooses to bring it to the attention of others.

3) FALSE

Internal whistle-blowing is when an employee discovers corporate misconduct and brings it to the attention of his or her supervisor, who then follows established procedures to address the misconduct within the organization.

4) TRUE 5) TRUE 6) FALSE

If an employee brings the misconduct of his or her organization to the attention of law enforcement officials, he or she is an external whistle-blower.

7) TRUE 8) TRUE 9) FALSE

Whistle-blowing is ethical under several circumstances. This includes situations in which a company is guilty of breaking the law or harming people with their products or by their decisions.

10) TRUE 11) TRUE 12) FALSE

The Civil False Claims Act was originally enacted during the Civil War in 1863 to protect the government against fraudulent defense contractors.

13) TRUE 14) TRUE 15) FALSE

The potential for financial gain in some areas of corporate whistle-blowing can be considerable.

16) TRUE 17) FALSE

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Under the federal Civil False Claims Act, whistle-blowers who expose fraudulent behavior against the government are entitled to between 10 and 30 percent of the amount recovered.

18) FALSE

Under the federal Civil False Claims Act, whistle-blowers who expose fraudulent behavior against the government are entitled to between 10 and 30 percent of the amount recovered.

19) FALSE

The False Claims Act was strengthened in 1986 to make it easier and safer for whistle-blowers to come forward.

20) TRUE 21) FALSE

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

22) TRUE 23) FALSE

Whether the choice is based on ethical or financial considerations, a company's misconduct is still wrong and a matter of legal consideration.

24) FALSE

Since internal whistle-blowing rarely receives media attention, it is impossible to track the history of such actions.

25) TRUE 26) FALSE

Prior to 2002, legal protection for whistle-blowers existed only through legislation that encouraged the moral behavior of employees who felt themselves compelled to speak out, without offering any safeguards against retaliation aimed at them.

27) TRUE 28) FALSE

As far back as the False Claims Act of 1863, designed to prevent profiteering from the Civil War, the government has been willing to split up to 30 percent of the recovered amount with the person filing the petition.

29) FALSE

The False Claims Act of 1863 offered no specific prohibitions against retaliatory behavior.

30) FALSE

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The Whistleblower Protection Act of 1989 addressed the issue of retaliation against federal employees who bring accusations of unethical behavior.

31) FALSE

The Whistleblower Protection Act of 1989 addressed the issue of retaliation against federal employees who bring accusations of unethical behavior. The act imposed specific performance deadlines in processing whistle-blower complaints and guaranteed the anonymity of the whistleblower unless revealing the name would prevent criminal activity or protect public safety.

32) TRUE 33) FALSE

The Whistleblower Protection Act of 1989 applied only to federal employees.

34) TRUE 35) FALSE

The Sarbanes-Oxley Act of 2002 is also known as the Corporate and Criminal Fraud Accountability Act. 36) FALSE

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 introduced a new reward program for whistle-blowers who report securities law violations to the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC).

37) FALSE

Under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, a whistleblower is rewarded if he or she reports securities law violations to the Commodity Futures Trading Commission.

38) TRUE 39) TRUE 40) TRUE 41) FALSE

The whistle-blower hotline is a telephone line by which employees can leave messages to alert a company of suspected misconduct without revealing their identity.

42) TRUE 43) FALSE

Becoming a whistle-blower and taking your story public should be seen as the last resort rather than the first.

44) A

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45) B 46) A 47) D 48) A 49) C 50) B 51) D 52) C 53) A 54) D 55) C 56) A 57) B 58) A 59) D 60) B 61) B 62) D 63) A 64) A 65) B 66) D 67) B 68) B 69) B 70) B 71) B 72) A 73) D 74) A 75) C 76) A 77) D 78) C 79) A 80) D 81) A 82) whistle-blower 83) internal whistle-blower 84) external whistle-blower

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85) qui tam lawsuit 86) whistle-blower hotline 87) Essay

An employee who discovers corporate misconduct and chooses to bring it to the attention of others is termed a whistle-blower. Internal whistle-blowers are employees who discover misconduct in the workplace and communicate this to their supervisor, who then follows established procedures to address the misconduct within the organization. External whistleblowers are employees who discover corporate misconduct and choose to bring it to the attention of external parties such as law enforcement agencies or the media.

88) Essay

Aqui tam lawsuit is brought on behalf of the federal government by a whistle-blower under the False Claims Act of 1863.Qui tam is an abbreviation for a longer Latin phrase that establishes the whistle-blower as a deputized petitioner for the government in the case. Since 1986, more than 2,400qui tam lawsuits have been filed, recovering over $2 billion for the government and enriching whistle-blowers by more than $350 million.

89) Essay

Prior to 2002, legal protection for whistle-blowers existed only through legislation that encouraged the moral behavior of employees who felt themselves compelled to speak out, without offering any safeguards against retaliation aimed at them. As far back as the False Claims Act of 1863, designed to prevent profiteering from the Civil War, the government has been willing to split up to 50 percent of the recovered amount with the person filing the petition but it offered no specific prohibitions against retaliatory behavior.

90) Essay

The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 introduced a new reward program for whistle-blowers who report securities law violations to the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC). The legislation stipulates that if more than $1 million is collected, the whistle-blower is entitled to between 10 and 30 percent of the monies collected, in addition to a clear entitlement to job and confidentiality protection.

91) Essay

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The Whistleblower Protection Act of 1989 addressed the issue of retaliation against federal employees who bring accusations of unethical behavior. The act imposed specific performance deadlines in processing whistle-blower complaints and guaranteed the anonymity of the whistleblower unless revealing the name would prevent criminal activity or protect public safety. The Sarbanes-Oxley Act of 2002 allowed Congress to take an integrated approach to the matter of whistle-blowing by prohibiting retaliation against whistle-blowers and encouraging the act of whistle-blowing.

92) Essay

A whistle-blower hotline is a telephone line by which employees can leave messages to alert a company of suspected misconduct without revealing their identity. For a whistle-blower hotline to be effective, trust must exist between employees and their employer. This trust means that the information can be given anonymously and without fear of retaliation, even if the identity of the whistle-blower is ultimately revealed during the investigation. The organization can make all the promises in the world, but until that first report is completely and thoroughly investigated, the hotline may never ring again. If the investigation is perceived to be half hearted, or there is even the remotest suggestion of a cover-up, then the hotline will definitely never ring again.

93) Essay

Employers can effectively address the needs of whistle-blowers by putting the following mechanisms in place: A well-defined process to document how complaints are handled—a nominated contact person, clearly identified authority to respond to the complaints, firm assurances of confidentiality, and nonretaliation against the employee.

An employee hotline to file complaints with firm assurances of confidentiality and nonretaliation to the employee.

A prompt and thorough investigation of all complaints.

A detailed report of all investigations, documenting all corporate officers involved and all action taken.

1) Essay

The fact that an employee is left with no option but to go public with information should be seen as evidence that the organization has failed to address the situation internally for the long-term improvement of the corporation and all its stakeholders. Becoming a whistle-blower and taking your story public should be seen as the last resort rather than the first. The fallout of unceasing media attention and the often terminal damage to the reputation and long-term economic viability of the organization should be enough of a threat to force even the most stubborn executive team to the table with a commitment to fix whatever has been broken.

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Student name:__________ 725)

Workplace technology has changed dramatically over the last two decades. ⊚ true ⊚ false

Question Details Learning Objective : 08-01 Evaluate the ethical ramifications of recent technological advances.

Bloom's : Understand Accessibility : Keyboard Navigation Difficulty : 2 Medium Source : Chapter 08 Test Bank > TF Qu. 01 Workplace technology has changed dramaticall...

726)

Some of the advances in workplace technology over the last two decades include desktop computing, the Internet, and the growth of e-mail and instant messaging (IM). ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 08-01 Evaluate the ethical ramifications of recent technological advances.

Accessibility : Keyboard Navigation Source : Chapter 08 Test Bank > TF Qu. 02 Some of the advances in workplace technology...

727)

Companies can now make vast amounts of information available to its employees and customers on their Internet, intranet, and extranet sites. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 08-01 Evaluate the ethical ramifications of recent technological advances.

Accessibility : Keyboard Navigation Source : Chapter 08 Test Bank > TF Qu. 03 Companies can now make vast amounts of infor...

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326

728)

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

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 08-01 Evaluate the ethical ramifications of recent technological advances.

Accessibility : Keyboard Navigation Source : Chapter 08 Test Bank > TF Qu. 04 The intranet is a private piece of a company...

729)

The extranet is a part of a company's website which can only be accessed by its senior executives. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 08-01 Evaluate the ethical ramifications of recent technological advances.

Accessibility : Keyboard Navigation Source : Chapter 08 Test Bank > TF Qu. 05 The extranet is a part of a company's websi...

730)

Technological advances over the last two decades have made it more difficult to pass the personal data of customers from one place to another. ⊚ true ⊚ false

Question Details Learning Objective : 08-01 Evaluate the ethical ramifications of recent technological advances.

Bloom's : Understand Accessibility : Keyboard Navigation Difficulty : 2 Medium Source : Chapter 08 Test Bank > TF Qu. 06 Technological advances over the last two dec...

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327

731)

Technological advances over the last two decades have made it possible for some employers to read the personal e-mails that employees send from their workstations. ⊚ true ⊚ false

Question Details Learning Objective : 08-01 Evaluate the ethical ramifications of recent technological advances.

Bloom's : Understand Accessibility : Keyboard Navigation Difficulty : 2 Medium Source : Chapter 08 Test Bank > TF Qu. 07 Technological advances over the last two dec...

732)

One of the ways in which multinational corporations lower their expenses is by shipping work to countries with lower labor costs. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 08-01 Evaluate the ethical ramifications of recent technological advances.

Accessibility : Keyboard Navigation Source : Chapter 08 Test Bank > TF Qu. 08 One of the ways in which multinational corpo...

733)

Information, once digitized, cannot be sent over a fiber-optic cable. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 08-01 Evaluate the ethical ramifications of recent technological advances.

Accessibility : Keyboard Navigation Source : Chapter 08 Test Bank > TF Qu. 09 Information, once digitized, cannot be sent ...

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328

734)

Customer service call centers and computer tech support are examples of services that cannot be outsourced to another country. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 08-01 Evaluate the ethical ramifications of recent technological advances.

Accessibility : Keyboard Navigation Source : Chapter 08 Test Bank > TF Qu. 10 Customer service call centers and computer t...

735)

Sending digitized information across fiber-optic wires raises no ethical questions. ⊚ true ⊚ false

Question Details Learning Objective : 08-01 Evaluate the ethical ramifications of recent technological advances.

Bloom's : Understand Accessibility : Keyboard Navigation Difficulty : 2 Medium Source : Chapter 08 Test Bank > TF Qu. 11 Sending digitized information across fiber-o...

736)

Employers feel it necessary to monitor employees at the workplace because they have an obligation to their stakeholders to operate as efficiently as possible. ⊚ true ⊚ false

Question Details Learning Objective : 08-02 Explain the opposing employer and employee views of privacy at work.

Bloom's : Understand Accessibility : Keyboard Navigation Difficulty : 2 Medium Source : Chapter 08 Test Bank > TF Qu. 12 Employers feel it necessary to monitor emplo...

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329

737)

An employee's consent is necessary for an employer to be able to monitor all activities of the employee during work hours. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 08-02 Explain the opposing employer and employee views of privacy at work.

Accessibility : Keyboard Navigation Source : Chapter 08 Test Bank > TF Qu. 13 An employee's consent is necessary for an e...

738)

From an employer's perspective, monitoring an employee's computer activity at the workplace is necessary to map their productivity during work hours. ⊚ true ⊚ false

Question Details Learning Objective : 08-02 Explain the opposing employer and employee views of privacy at work.

Bloom's : Understand Accessibility : Keyboard Navigation Difficulty : 2 Medium Source : Chapter 08 Test Bank > TF Qu. 14 From an employer's perspective, monitorin...

739)

From an employee's viewpoint, electronic monitoring at the workplace by employers implies that employers do not trust their employees. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 08-02 Explain the opposing employer and employee views of privacy at work.

Accessibility : Keyboard Navigation Source : Chapter 08 Test Bank > TF Qu. 15 From an employee's viewpoint, electronic monitori...

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330

740)

Employees' willingness to negotiate or compromise at the workplace has risen and fallen in direct relation to the prevailing job market. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 08-02 Explain the opposing employer and employee views of privacy at work.

Accessibility : Keyboard Navigation Source : Chapter 08 Test Bank > TF Qu. 16 Employees' willingness to negotiate or comprom...

741)

The availability of ongoing technological advancements has made it easier to determine precisely where work ends and personal life begins. ⊚ true ⊚ false

Question Details Learning Objective : 08-02 Explain the opposing employer and employee views of privacy at work.

Bloom's : Understand Accessibility : Keyboard Navigation Difficulty : 2 Medium Source : Chapter 08 Test Bank > TF Qu. 17 The availability of ongoing technological ad...

742)

The argument over privacy at work traditionally centered on the amount of time that employees were on-site. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 08-02 Explain the opposing employer and employee views of privacy at work.

Accessibility : Keyboard Navigation Source : Chapter 08 Test Bank > TF Qu. 18 The argument over privacy at work traditiona...

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331

743)

The new technological capability that allows employees to work from locations other than their office and log into their company's network remotely is known as telecommuting. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 08-02 Explain the opposing employer and employee views of privacy at work.

Accessibility : Keyboard Navigation Source : Chapter 08 Test Bank > TF Qu. 19 The new technological capability that allows...

744)

Telecommuting does not allow employees any degree of flexibility in terms of the location from which they work. ⊚ true ⊚ false

Question Details Learning Objective : 08-02 Explain the opposing employer and employee views of privacy at work.

Bloom's : Understand Accessibility : Keyboard Navigation Difficulty : 2 Medium Source : Chapter 08 Test Bank > TF Qu. 20 Telecommuting does not allow employees any d...

745)

The concept of "at work" has become blurred because of the advances in computer technology and the new capability of telecommuting. ⊚ true ⊚ false

Question Details Learning Objective : 08-02 Explain the opposing employer and employee views of privacy at work.

Bloom's : Understand Accessibility : Keyboard Navigation Difficulty : 2 Medium Source : Chapter 08 Test Bank > TF Qu. 21 The concept of "at work" has become blurred ...

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332

746)

With advances in technology, the availability of employees in the business environment is no longer defined by their accessibility. ⊚ true ⊚ false

Question Details Learning Objective : 08-02 Explain the opposing employer and employee views of privacy at work.

Bloom's : Understand Accessibility : Keyboard Navigation Difficulty : 2 Medium Source : Chapter 08 Test Bank > TF Qu. 22 With advances in technology, the availabilit...

747)

Advances in technology make it harder for employers to assign work to their employees outside the workplace. ⊚ true ⊚ false

Question Details Learning Objective : 08-02 Explain the opposing employer and employee views of privacy at work.

Bloom's : Understand Accessibility : Keyboard Navigation Difficulty : 2 Medium Source : Chapter 08 Test Bank > TF Qu. 23 Advances in technology make it harder for em...

748)

According to Adam Moore, consent given by employees with little choice is referred to as thick consent. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 08-03 Distinguish between thin and thick consent.

Accessibility : Keyboard Navigation Source : Chapter 08 Test Bank > TF Qu. 24 According to Adam Moore, consent given by em...

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333

749)

Thin consent leaves employees with little choice regarding the monitoring of their web activity at the workplace. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 08-03 Distinguish between thin and thick consent.

Accessibility : Keyboard Navigation Source : Chapter 08 Test Bank > TF Qu. 25 Thin consent leaves employees with little ch...

750)

Thin consent is based on the assumption that the employee can easily find another job. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 08-03 Distinguish between thin and thick consent.

Accessibility : Keyboard Navigation Source : Chapter 08 Test Bank > TF Qu. 26 Thin consent is based on the assumption that...

751)

When jobs are plentiful and an employee would have no difficulty finding another position, then the consent given to the monitoring policy of a company is referred to as thin consent. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 08-03 Distinguish between thin and thick consent.

Accessibility : Keyboard Navigation Source : Chapter 08 Test Bank > TF Qu. 27 When jobs are plentiful and an employee woul...

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334

752)

One of the arguments cited by employers for the use of web-monitoring at the workplace is the concept of vicarious liability. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Learning Objective : 08-04 Evaluate the concept of vicarious liability.

Source : Chapter 08 Test Bank > TF Qu. 28 One of the arguments cited by employers for ...

753)

Vicarious liability is a legal concept that means a party may be held responsible for injury or damage only if he or she were actively involved in an incident. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Learning Objective : 08-04 Evaluate the concept of vicarious liability.

Source : Chapter 08 Test Bank > TF Qu. 29 Vicarious liability is a legal concept that ...

754)

Parties charged with vicarious liability are never in a supervisory role over the person or parties personally responsible for the injury or damage. ⊚ true ⊚ false

Question Details Bloom's : Understand Accessibility : Keyboard Navigation Difficulty : 2 Medium Learning Objective : 08-04 Evaluate the concept of vicarious liability.

Source : Chapter 08 Test Bank > TF Qu. 30 Parties charged with vicarious liability are...

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335

755)

The implications of vicarious liability are that the party charged is responsible for the actions of his or her subordinates. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Learning Objective : 08-04 Evaluate the concept of vicarious liability.

Source : Chapter 08 Test Bank > TF Qu. 31 The implications of vicarious liability are ...

756)

Parents can be charged with vicarious liability for the actions of their children. ⊚ true ⊚ false

Question Details Bloom's : Understand Accessibility : Keyboard Navigation Difficulty : 2 Medium Learning Objective : 08-04 Evaluate the concept of vicarious liability.

Source : Chapter 08 Test Bank > TF Qu. 32 Parents can be charged with vicarious liabil...

757)

According to the legal concept of cyberliability, employers can be held liable for the actions of their employees through Internet communications to the same degree as if they had written those communications on company letterhead. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Learning Objective : 08-04 Evaluate the concept of vicarious liability.

Source : Chapter 08 Test Bank > TF Qu. 33 According to the legal concept of cyberliabi...

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336

758)

Cyberliability applies the existing legal concept of liability to the field of computers. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Learning Objective : 08-04 Evaluate the concept of vicarious liability.

Source : Chapter 08 Test Bank > TF Qu. 34 Cyberliability applies the existing legal co...

759)

Cyberliability results in litigation for harassment through spam, obscenity, and pornography. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Learning Objective : 08-04 Evaluate the concept of vicarious liability.

Source : Chapter 08 Test Bank > TF Qu. 35 Cyberliability results in litigation for har...

760)

The categories of litigation for cyberliability extend to defamation and libel. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Learning Objective : 08-04 Evaluate the concept of vicarious liability.

Source : Chapter 08 Test Bank > TF Qu. 36 The categories of litigation for cyberliabil...

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337

761)

With employers being able to monitor every keystroke on a computer, track every website visited, and record every call made by employees, the workplace is beginning to display Orwellian characteristics. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Learning Objective : 08-05 Analyze an organization's employee-surveillance capabilities.

Source : Chapter 08 Test Bank > TF Qu. 37 With employers being able to monitor every k...

762)

Copying and distributing unpaid proprietary software is not a violation of computer ethics. ⊚ true ⊚ false

Question Details Bloom's : Understand Accessibility : Keyboard Navigation Difficulty : 2 Medium Learning Objective : 08-05 Analyze an organization's employee-surveillance capabilities.

Source : Chapter 08 Test Bank > TF Qu. 38 Copying and distributing unpaid proprietary ...

763)

Using a computer to appropriate the intellectual output of another person is an example of ethical employee behavior. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Learning Objective : 08-05 Analyze an organization's employee-surveillance capabilities.

Source : Chapter 08 Test Bank > TF Qu. 39 Using a computer to appropriate the intellec...

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338

764)

Computer ethics extends to considering the social consequences of the program being written and ensuring that your work doesn't harm people. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Learning Objective : 08-05 Analyze an organization's employee-surveillance capabilities.

Source : Chapter 08 Test Bank > TF Qu. 40 Computer ethics extends to considering the s...

765)

Meddling with a person's computer work without their knowledge is considered unethical behavior. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Learning Objective : 08-05 Analyze an organization's employee-surveillance capabilities.

Source : Chapter 08 Test Bank > TF Qu. 41 Meddling with a person's computer work wit...

766)

Employee turnover, a long-term effect of monitoring employees, costs organizations thousands of dollars in recruitment costs and training. ⊚ true ⊚ false

Question Details Bloom's : Understand Accessibility : Keyboard Navigation Difficulty : 2 Medium Learning Objective : 08-05 Analyze an organization's employee-surveillance capabilities.

Source : Chapter 08 Test Bank > TF Qu. 42 Employee turnover, a long-term effect of mon...

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339

767)

Packet-sniffing software can be used to monitor employees' private accounts, as long as they are accessed on workplace networks or phone lines. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Learning Objective : 08-05 Analyze an organization's employee-surveillance capabilities.

Source : Chapter 08 Test Bank > TF Qu. 43 Packet-sniffing software can be used to moni...

768)

Keystroke loggers can only capture information that is not deleted. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Learning Objective : 08-05 Analyze an organization's employee-surveillance capabilities.

Source : Chapter 08 Test Bank > TF Qu. 44 Keystroke loggers can only capture informati...

769)

Video surveillance, under federal law, is acceptable where the camera focuses on publicly accessible areas. ⊚ true ⊚ false

Question Details Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Learning Objective : 08-05 Analyze an organization's employee-surveillance capabilities.

Source : Chapter 08 Test Bank > TF Qu. 45 Video surveillance, under federal law, is ac...

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340

770)

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

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

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

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

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

Question Details Learning Objective : 08-01 Evaluate the ethical ramifications of recent technological advances.

Bloom's : Understand Accessibility : Keyboard Navigation Difficulty : 2 Medium Source : Chapter 08 Test Bank > MC Qu. 46 Which of the following statements is true of...

771)

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

A) intranet B) extranet C) castanet D) informanet

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 08-01 Evaluate the ethical ramifications of recent technological advances.

Accessibility : Keyboard Navigation Source : Chapter 08 Test Bank > MC Qu. 47 The term ________ refers to a company's interna...

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341

772)

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

A) orgonet B) intranet C) castanet D) extranet

Question Details Difficulty : 1 Easy Learning Objective : 08-01 Evaluate the ethical ramifications of recent technological advances.

Bloom's : Understand Accessibility : Keyboard Navigation Source : Chapter 08 Test Bank > MC Qu. 48 Emily, a website designer, is hired by an or...

773)

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

A) extranet B) intranet C) fibernet D) castanet

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 08-01 Evaluate the ethical ramifications of recent technological advances.

Accessibility : Keyboard Navigation Source : Chapter 08 Test Bank > MC Qu. 49 The term ________ refers to a private piece ...

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342

774)

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

A) intranet B) cybernet C) extranet D) clientnet

Question Details Difficulty : 1 Easy Learning Objective : 08-01 Evaluate the ethical ramifications of recent technological advances.

Bloom's : Understand Accessibility : Keyboard Navigation Source : Chapter 08 Test Bank > MC Qu. 50 Jordan, a software engineer, is responsible ...

775)

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

A) extranet B) intranet C) cybernet D) fibernet

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 08-01 Evaluate the ethical ramifications of recent technological advances.

Accessibility : Keyboard Navigation Source : Chapter 08 Test Bank > MC Qu. 51 Companies can make vast amounts of informati...

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343

776)

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

A) loss of privacy B) limited employee mobility C) reduced employee accessibility D) limited access to customers

Question Details Learning Objective : 08-01 Evaluate the ethical ramifications of recent technological advances.

Bloom's : Understand Accessibility : Keyboard Navigation Difficulty : 2 Medium Source : Chapter 08 Test Bank > MC Qu. 52 Which of the following is a disadvantage of ...

777)

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

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

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

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

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

Question Details Learning Objective : 08-01 Evaluate the ethical ramifications of recent technological advances.

Bloom's : Understand Accessibility : Keyboard Navigation Difficulty : 2 Medium Source : Chapter 08 Test Bank > MC Qu. 53 Information can be digitized and transmitted...

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344

778)

The advances in technology have affected customers in a way that A) their personal data can no longer be sent to any part of the world.

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

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

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

Question Details Learning Objective : 08-01 Evaluate the ethical ramifications of recent technological advances.

Bloom's : Understand Accessibility : Keyboard Navigation Difficulty : 2 Medium Source : Chapter 08 Test Bank > MC Qu. 54 The advances in technology have affected cus...

779)

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

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

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

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

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

Question Details Learning Objective : 08-01 Evaluate the ethical ramifications of recent technological advances.

Bloom's : Understand Accessibility : Keyboard Navigation Difficulty : 2 Medium Source : Chapter 08 Test Bank > MC Qu. 55 Information can be digitized and transmitted...

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780)

Resolving the different perspectives on the issue of monitoring employee activity is difficult because A) federal laws for video surveillance in public areas do not exist.

B) technological advances have no impact on the workplace.

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

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

Question Details Learning Objective : 08-02 Explain the opposing employer and employee views of privacy at work.

Bloom's : Understand Accessibility : Keyboard Navigation Difficulty : 2 Medium Source : Chapter 08 Test Bank > MC Qu. 56 Resolving the different perspectives on the ...

781)

The argument over privacy at work has traditionally centered on A) the designations held by different employees.

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

C) whether the organization was vertically structured.

D) whether the organization was horizontally structured.

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 08-02 Explain the opposing employer and employee views of privacy at work.

Accessibility : Keyboard Navigation Source : Chapter 08 Test Bank > MC Qu. 57 The argument over privacy at work has tradit...

782)

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

A) Telecommuting B) Wiretapping C) Hyper-networking D) Cybersquatting

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 08-02 Explain the opposing employer and employee views of privacy at work.

Accessibility : Keyboard Navigation Source : Chapter 08 Test Bank > MC Qu. 58 ________ refers to a new capability that all...

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783)

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

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

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

C) The promise of increased productivity has become blurred.

D) The ability to monitor every employee has reduced.

Question Details Learning Objective : 08-02 Explain the opposing employer and employee views of privacy at work.

Bloom's : Understand Accessibility : Keyboard Navigation Difficulty : 2 Medium Source : Chapter 08 Test Bank > MC Qu. 59 Which of the following statements is true of...

784)

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

A) Keystroke loggers B) Smart ID cards C) Telecommuting D) Packet-sniffing software

Question Details Learning Objective : 08-02 Explain the opposing employer and employee views of privacy at work.

Bloom's : Understand Accessibility : Keyboard Navigation Difficulty : 2 Medium Source : Chapter 08 Test Bank > MC Qu. 60 ________ has made it difficult for organizat...

785)

Which of the following statements is true of telecommuting?

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

B) It allows employees to prioritize personal work over work productivity.

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

D) It helps employees concentrate and work better at home with no distractions.

Question Details Learning Objective : 08-02 Explain the opposing employer and employee views of privacy at work.

Bloom's : Understand Accessibility : Keyboard Navigation Difficulty : 2 Medium Source : Chapter 08 Test Bank > MC Qu. 61 Which of the following statements is true of...

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347

786)

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

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

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

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

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

Question Details Learning Objective : 08-02 Explain the opposing employer and employee views of privacy at work.

Bloom's : Understand Accessibility : Keyboard Navigation Difficulty : 2 Medium Source : Chapter 08 Test Bank > MC Qu. 62 Which of the following is true of the change...

787)

Telecommuting has changed the work environment in a way that A) employers find it easy to keep track of the number of hours employees put into a project off-site.

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

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

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

Question Details Learning Objective : 08-02 Explain the opposing employer and employee views of privacy at work.

Bloom's : Understand Accessibility : Keyboard Navigation Difficulty : 2 Medium Source : Chapter 08 Test Bank > MC Qu. 63 Telecommuting has changed the work environme...

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788)

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

A) The state of the job market B) The capability of telecommuting C) The promise of increased productivity D) The implications of vicarious liability

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 08-03 Distinguish between thin and thick consent.

Accessibility : Keyboard Navigation Source : Chapter 08 Test Bank > MC Qu. 64 ________ will create a distinction between t...

789)

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

A) thick B) implied C) thin D) inferred

Question Details Learning Objective : 08-03 Distinguish between thin and thick consent.

Accessibility : Keyboard Navigation Difficulty : 2 Medium Bloom's : Apply Source : Chapter 08 Test Bank > MC Qu. 65 Michelle receives a formal notification from...

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790)

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

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

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

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

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

Question Details Learning Objective : 08-03 Distinguish between thin and thick consent.

Bloom's : Understand Accessibility : Keyboard Navigation Difficulty : 2 Medium Source : Chapter 08 Test Bank > MC Qu. 66 Which of the following statements is true of...

791)

Andrew is informed by his company that he should be open to monitoring as a part of the company's plans to improve productivity. Because of his qualifications and work experience, he knows that he would have no difficulty finding a similar position in another company.

Andrew agrees to the policy, knowing that he can switch jobs if the new policy affects his job satisfaction. He has given his company ________ consent.

A) thick B) implied C) thin D) inferred

Question Details Learning Objective : 08-03 Distinguish between thin and thick consent.

Accessibility : Keyboard Navigation Difficulty : 2 Medium Bloom's : Apply Source : Chapter 08 Test Bank > MC Qu. 67 Andrew is informed by his company that he sh...

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792)

Which of the following statements is true of thick consent?

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

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

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

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

Question Details Learning Objective : 08-03 Distinguish between thin and thick consent.

Bloom's : Understand Accessibility : Keyboard Navigation Difficulty : 2 Medium Source : Chapter 08 Test Bank > MC Qu. 68 Which of the following statements is true of...

793)

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

A) Strict liability B) Vicarious liability C) Absolute liability D) Regulatory liability

Question Details Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Learning Objective : 08-04 Evaluate the concept of vicarious liability.

Source : Chapter 08 Test Bank > MC Qu. 69 ________ is a legal concept that means a par...

794)

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

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

B) They are seldom in supervisory or managerial roles.

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

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

Question Details Bloom's : Understand Accessibility : Keyboard Navigation Difficulty : 2 Medium Learning Objective : 08-04 Evaluate the concept of vicarious liability.

Source : Chapter 08 Test Bank > MC Qu. 70 Which of the following statements is true of...

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795)

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

A) cyberliability B) cybersecurity C) hyper-networking D) virtual-mirroring

Question Details Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Learning Objective : 08-04 Evaluate the concept of vicarious liability.

Source : Chapter 08 Test Bank > MC Qu. 71 The legal concept of ________ holds employer...

796)

The concept of cyberliability A) does not include harassment that reaches employees via e-mail.

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

C) is only enforceable in unregistered commercial Internet cafés.

D) does not cover categories like obscenity and pornography.

Question Details Bloom's : Understand Accessibility : Keyboard Navigation Difficulty : 2 Medium Learning Objective : 08-04 Evaluate the concept of vicarious liability.

Source : Chapter 08 Test Bank > MC Qu. 72 The concept of cyberliability

797)

Which of the following is true of cyberliability?

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

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

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

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

Question Details Bloom's : Understand Accessibility : Keyboard Navigation Difficulty : 2 Medium Learning Objective : 08-04 Evaluate the concept of vicarious liability.

Source : Chapter 08 Test Bank > MC Qu. 73 Which of the following is true of cyberliabi...

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798)

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

A) the implications of vicarious liability for employers B) the federal restrictions placed upon wiretapping C) the reluctance of employees to give thick consent D) the federal restrictions placed on cybersquatting

Question Details Bloom's : Understand Accessibility : Keyboard Navigation Difficulty : 2 Medium Learning Objective : 08-04 Evaluate the concept of vicarious liability.

Source : Chapter 08 Test Bank > MC Qu. 74 Which of the following explains why employer...

799)

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

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

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

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

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

Question Details Bloom's : Understand Accessibility : Keyboard Navigation Difficulty : 2 Medium Learning Objective : 08-04 Evaluate the concept of vicarious liability.

Source : Chapter 08 Test Bank > MC Qu. 75 What is the reason for the increased monitor...

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800)

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

A) logging into one's company's intranet and extranet B) enabling cookies on one's own computer C) clearing the cache of one's own computer D) copying proprietary software without paying for it

Question Details Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Learning Objective : 08-05 Analyze an organization's employee-surveillance capabilities.

Source : Chapter 08 Test Bank > MC Qu. 76 Which of the following actions does the Comp...

801)

According to the "Ten Commandments of Computer Ethics" developed by the Computer Ethics Institute, which of the following actions represents ethical behavior?

A) Yasmine used her company's proprietary software for personal work.

B) Ray developed a program to give him access to his coworkers' e-mails.

C) Alice considered the social consequences while designing a system.

D) Dominique snooped on his coworker's computer while she was on a break.

Question Details Accessibility : Keyboard Navigation Learning Objective : 08-05 Analyze an organization's employee-surveillance capabilities.

Bloom's : Apply Difficulty : 3 Hard Source : Chapter 08 Test Bank > MC Qu. 77 According to the "Ten Commandments of Comput...

802)

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

A) making one's password easily available to coworkers B) considering the social consequences of one's work C) using corporate software for private use D) using pirated software for commercial purposes

Question Details Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Learning Objective : 08-05 Analyze an organization's employee-surveillance capabilities.

Source : Chapter 08 Test Bank > MC Qu. 78 Which of the following actions does the Comp...

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803)

Which of the following is true of the technology used to monitor employees at the workplace?

A) Keystroke loggers can track employees' location while they move through the workplace.

B) Packet-sniffing software can intercept and archive all communications on a network.

C) Cybersquatting software can automatically monitor breaks between receiving calls.

D) "Smart" ID cards can be employed to capture every key pressed on a computer keyboard.

Question Details Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Learning Objective : 08-05 Analyze an organization's employee-surveillance capabilities.

Source : Chapter 08 Test Bank > MC Qu. 79 Which of the following is true of the techno...

804)

Which of the following statements is true of keystroke loggers?

A) They can record typed-in information even if it is deleted.

B) They can videotape employees in public areas.

C) They can analyze and archive calls made on personal phones.

D) They can track the movement of employees in the workplace.

Question Details Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Learning Objective : 08-05 Analyze an organization's employee-surveillance capabilities.

Source : Chapter 08 Test Bank > MC Qu. 80 Which of the following statements is true of...

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805)

Under federal law, video surveillance is legal only if A) the camera focuses on publicly accessible areas.

B) the camera is placed in employee rest areas.

C) the cameras aren't focused on customers.

D) the cameras aren't focused on employees.

Question Details Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Learning Objective : 08-05 Analyze an organization's employee-surveillance capabilities.

Source : Chapter 08 Test Bank > MC Qu. 81 Under federal law, video surveillance is leg...

806)

The ________ is a company's internal website, containing information for employee access only.

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 08-01 Evaluate the ethical ramifications of recent technological advances.

Accessibility : Keyboard Navigation Source : Chapter 08 Test Bank > FB Qu. 82 The ________ is a company's internal website, contain...

807)

The ________ is a private piece of a company's Internet network that is made available to customers and/or vendor partners using secured access with a unique password.

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 08-01 Evaluate the ethical ramifications of recent technological advances.

Accessibility : Keyboard Navigation Source : Chapter 08 Test Bank > FB Qu. 83 The ________ is a private piece of a company...

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356

808)

________ refers to employees' ability to work from home and log in to their company's network remotely.

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 08-02 Explain the opposing employer and employee views of privacy at work.

Accessibility : Keyboard Navigation Source : Chapter 08 Test Bank > FB Qu. 84 ________ refers to employees' ability to work fro...

809)

According to Adam Moore, when an employee consents to being monitored by a company because he or she has no choice, the employee has given ________ consent.

Question Details Bloom's : Remember Difficulty : 1 Easy Learning Objective : 08-03 Distinguish between thin and thick consent.

Accessibility : Keyboard Navigation Source : Chapter 08 Test Bank > FB Qu. 85 According to Adam Moore, when an employee co...

810)

According to Adam Moore, if jobs are plentiful and an employee would have no difficulty in finding another position, then the consent given to a company's monitoring policy is ________ consent.

Question Details Difficulty : 1 Easy Learning Objective : 08-03 Distinguish between thin and thick consent.

Bloom's : Understand Accessibility : Keyboard Navigation Source : Chapter 08 Test Bank > FB Qu. 86 According to Adam Moore, if jobs are plentif...

811)

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

Question Details Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Learning Objective : 08-04 Evaluate the concept of vicarious liability.

Source : Chapter 08 Test Bank > FB Qu. 87 ________ is a legal concept that means a par...

Version 1

357

812)

________ is a legal concept that holds employers liable for the actions of their employees in their Internet communications to the same degree as if those employers had written those communications on company letterhead.

Question Details Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Learning Objective : 08-04 Evaluate the concept of vicarious liability.

Source : Chapter 08 Test Bank > FB Qu. 88 ________ is a legal concept that holds emplo...

813)

How did the digitizing of information lead to the establishment of call centers in other countries?

Question Details Learning Objective : 08-01 Evaluate the ethical ramifications of recent technological advances.

Bloom's : Understand Accessibility : Keyboard Navigation Difficulty : 2 Medium Source : Chapter 08 Test Bank > ES Qu. 89 How did the digitizing of information lead t...

814)

Explain the employers' perspective on monitoring employees' activity at the workplace.

Question Details Learning Objective : 08-02 Explain the opposing employer and employee views of privacy at work.

Bloom's : Understand Accessibility : Keyboard Navigation Difficulty : 2 Medium Source : Chapter 08 Test Bank > ES Qu. 90 Explain the employers' perspective on monit...

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358

815)

Explain employees' perspective on privacy at the workplace.

Question Details Learning Objective : 08-02 Explain the opposing employer and employee views of privacy at work.

Bloom's : Understand Accessibility : Keyboard Navigation Difficulty : 2 Medium Source : Chapter 08 Test Bank > ES Qu. 91 Explain employees' perspective on privacy at the workplace.

816)

Write a short note on telecommuting.

Question Details Learning Objective : 08-02 Explain the opposing employer and employee views of privacy at work.

Bloom's : Understand Accessibility : Keyboard Navigation Difficulty : 2 Medium Source : Chapter 08 Test Bank > ES Qu. 92 Write a short note on telecommuting.

817)

Explain the differences between thin and thick consent.

Question Details Learning Objective : 08-03 Distinguish between thin and thick consent.

Bloom's : Understand Accessibility : Keyboard Navigation Difficulty : 2 Medium Source : Chapter 08 Test Bank > ES Qu. 93 Explain the differences between thin and thi...

Version 1

359

818)

Discuss vicarious liability and cyberliability. List the top categories of litigation in cyberliability.

Question Details Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Learning Objective : 08-04 Evaluate the concept of vicarious liability.

Source : Chapter 08 Test Bank > ES Qu. 94 Discuss vicarious liability and cyberliabili...

819)

Discuss situations in which a party may be charged with vicarious liability.

Question Details Bloom's : Understand Accessibility : Keyboard Navigation Difficulty : 2 Medium Learning Objective : 08-04 Evaluate the concept of vicarious liability.

Source : Chapter 08 Test Bank > ES Qu. 95 Discuss situations in which a party may be c...

820)

Explain how packet-sniffing software and keystroke loggers can be used to monitor employees at the workplace.

Question Details Bloom's : Remember Difficulty : 1 Easy Accessibility : Keyboard Navigation Learning Objective : 08-05 Analyze an organization's employee-surveillance capabilities.

Source : Chapter 08 Test Bank > ES Qu. 96 Explain how packet-sniffing software and key...

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Answer Key Test name: chapter 8 1) 2) 3) 4)

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

5) FALSE

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

6) FALSE

A major concern for customers about technology causing a loss of privacy is that companies now have the technical capability to send their personal data to any part of the world to take advantage of lower labor costs.

7) TRUE 8) TRUE 9) FALSE

Technically, anything that can be digitized can be sent over a fiber-optic cable.

10) FALSE

Technological advances make it possible for customer service calls to be answered by call centers established in other parts of the world.

11) FALSE

Sending digitized information across fiber-optic wires raises several ethical issues, an example of which is—should the customer be notified that his or her personal information is being sent to and processed in another country?

12) TRUE 13) FALSE

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An employee's consent is not necessary for an employer to be able to monitor all activities of the employee during work hours. Employees' productivity during their time at work represents the performance portion of the pay-for-performance contract they entered into with the company when they were hired. Therefore, their actions during that time are at the discretion of the company.

14) TRUE 15) TRUE 16) TRUE 17) FALSE

The availability of ongoing technological advancements has made it increasingly difficult to determine precisely where work ends and personal life begins.

18) TRUE 19) TRUE 20) FALSE

Telecommuting allows employees to work from home (or anywhere) and log in to their company's network remotely.

21) TRUE 22) FALSE

With the development of e-mail and phone technology, the availability of employees in the business environment is now being defined by their accessibility.

23) FALSE

With the development of e-mail and phone technology, the availability of employees in the business environment is now being defined by their accessibility.

24) FALSE

According to Adam Moore, consent given by employees with little choice is referred to as thin consent.

25) TRUE 26) FALSE

Thin consent is based on the assumption that jobs are hard to come by and the employee is not in a position to quit on principle and risk temporary unemployment while seeking a position with another company.

27) FALSE

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362

When jobs are plentiful and an employee would have no difficulty finding another position, then the consent given to the monitoring policy of a company is thick consent.

28) TRUE 29) FALSE

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

30) FALSE

Parties charged with vicarious liability are generally in a supervisory role over the person or parties personally responsible for the injury or damage.

31) TRUE 32) TRUE 33) TRUE 34) TRUE 35) TRUE 36) TRUE 37) TRUE 38) FALSE

Copying and distributing unpaid-for proprietary software is a violation of computer ethics.

39) FALSE

Using a computer to appropriate the intellectual output of other people is not considered ethical behavior.

40) TRUE 41) TRUE 42) TRUE 43) TRUE 44) FALSE

Keystroke loggers can capture every key pressed on a computer keyboard. These systems will even record information that is typed and then deleted.

45) TRUE 46) B 47) A 48) B 49) A 50) C 51) A

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52) A 53) D 54) B 55) D 56) D 57) B 58) A 59) B 60) C 61) A 62) C 63) D 64) A 65) C 66) A 67) A 68) D 69) B 70) A 71) A 72) B 73) A 74) A 75) A 76) D 77) C 78) B 79) B 80) A 81) A 82) intranet 83) extranet 84) Telecommuting 85) thin 86) thick 87) Vicarious liability 88) Cyberliability 89) Essay

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Digitized information can be sent over fiber-optic cables. With the availability of a network of fiber-optic cable that spans the globe and an increasingly educated global workforce that is fluent in English, the potential cost savings for American corporations in shipping work overseas to countries with lower labor costs is becoming increasingly attractive. By establishing call centers in those countries, companies cut down on their costs while giving customers access to customer services round-the-clock.

90) Essay

From an employer's viewpoint, the productivity of employees during their time at work represents the performance portion of the pay-for-performance contract they entered into with the company when they were hired. Therefore, their actions during that time are at the discretion of the company. Other than lunch and any scheduled breaks, all their activity should be workrelated, and any monitoring of that activity should not be regarded as an infringement of privacy.

The organization has an obligation to its stakeholders to operate as efficiently as possible, and to do so, it must ensure that company resources are not being misused or stolen and that company data and proprietary information are being closely guarded. The issue of vicarious liability, which holds employers responsible for the misconduct of their employees, also makes monitoring their actions a policy worth implementing.

91) Essay

From an employee's viewpoint, the time at work represents the productivity for which an employee receives an agreed amount of compensation—either an hourly rate or an annual salary.

However, that agreement should not intrude upon the employee's civil rights as an individual.

The employee expects to be notified of any electronic surveillance and the purpose of that surveillance. The actions of a small number of employees in breaking company rules should not be used as a justification to take away everyone's civil rights. Employees believe that electronic monitoring implies that employers do not trust their employees to do their jobs.

92) Essay

Telecommuting allows employees to work outside of office (from home or anywhere else) and log in to their company's network (usually via a secure gateway such as a virtual private network, or VPN). The concept of "at work" has become blurred because of the availability of technology and telecommuting. The availability of employees is being defined by their accessibility.

Employers believe that employees can check e-mails and messages at home or finish a task the night before a deadline. The use of company-issued cellphones has made many employees available to their boss at all times of the day and night. Employees, in return, have begun to expect the same flexibility in taking care of personal needs during working hours.

93) Essay

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When an employee receives formal notification that the company will be monitoring all his or her e-mail and web activity—either at the time of hire or during employment—and it is made clear that his or her continued employment with the company will be dependent on the employee's agreement to abide by that monitoring, the consent given is said to be thin consent if the employee does so because he or she has no other alternative. Thick consent is consent given when an employee has an alternative to unacceptable monitoring. For example, if jobs are plentiful and the employee would have no difficulty in finding another position, then the employee has a realistic alternative for avoiding an unacceptable policy.

94) Essay

Vicarious liability is a legal concept that means a party may be held responsible for injury or damage even when he or she was not actively involved in an incident. The implications of vicarious liability are that the party charged is responsible for the actions of his or her subordinates.

Cyberliability is a legal concept that holds employers liable for the actions of their employees in their Internet communications to the same degree as if those employers had written those communications on company letterhead. The top categories of litigation of cyber-liability are discrimination, harassment, obscenity and pornography, defamation and libel, information leaks, and spam.

95) Essay

Some of the situations in which a party may be charged with vicarious liability are as follows: Contractors may face charges of vicarious liability if their subcontractors fail to complete a job, perform the job incorrectly, or are found guilty of other contract violations.

Parents have been charged with vicarious liability when the actions of their children cause harm or damage.

Employers can face a number of situations involving vicarious liability issues, including sexual harassment of one employee by another, discriminatory behavior by an employee against fellow employees or customers, or any other action in which one of their employees personally causes harm, even if that employee acts against the policies of the employer.

1) Essay

Packet-sniffing software can intercept, analyze, and archive all communications on a network, including employee e-mail, chat sessions, file sharing, and Internet browsing. Employees who use the workplace network to access personal e-mail accounts not provided by the company are not protected. Their private accounts, as long as they are accessed on workplace network or phone lines, can be monitored.

Keystroke loggers can be employed to capture every key pressed on a computer keyboard. These systems will even record information that is typed and then deleted.

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Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.

821) A less-developed nation is a country that lacks the economic, social, and technological infrastructure of a developed nation. ⊚ true ⊚ false 822)

A developed nation is a country that enjoys a high standard of living as measured by economic, social, and technological criteria. ⊚ true ⊚ false

823)

For organizations, international markets represent new customers as well as sources of cheaper materials and cheap labor. ⊚ true ⊚ false

824)

Utilitarianism is a theory in ethics that advocates making choices that offer the greatest good for the greatest number of people. ⊚ true ⊚ false

825)

According to the principles of utilitarianism, there is no accountability for individual actions when one focuses on doing the greatest good for the greatest number of people. ⊚ true ⊚ false

826)

The term "globalization" refers to the phenomenon that divided the world into two opposing factions during the Cold War. ⊚ true ⊚ false

827)

The term "globalization" has applications in commercial, economic, social, and political environments. ⊚ true ⊚ false

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828)

Globalization refers to the expansion of international trade to a point where, across the globe, regional trade blocs have overtaken national markets. ⊚ true ⊚ false

829)

Critics argue that all multinational corporations (MNCs) operate in full compliance with laws and regulations of the host country since all nations have standard operating procedures. ⊚ true ⊚ false

830)

A multinational corporation is a company that provides and sells products and services across multiple national borders. ⊚ true ⊚ false

831)

Multinational corporations are also known as intranational corporations. ⊚ true ⊚ false

832)

Multinational corporations include those corporations that generate products and/or services in multiple countries and implement operational policies (marketing, staffing, and production) that go beyond national boundaries. ⊚ true ⊚ false

833)

The growth of multinational corporations, as a global phenomenon, has raised no ethical issues. ⊚ true ⊚ false

834)

Ethical relativism refers to a philosophy that dictates that individuals must only make such choices that offer the greatest good for the greatest number of people. ⊚ true ⊚ false

835)

Ethical relativism arises when a multinational company comes up against a policy that is banned both in its own country and in the country with which it's doing business. ⊚ true ⊚ false

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836)

Globalization benefits corporations from economically advanced nations because access to resources in developing nations enables lower production costs that equate to lower prices and higher income standards for their customers. ⊚ true ⊚ false

837)

The downside of globalization is that corporations are free to take full advantage of less restrictive legal environments in developing countries. ⊚ true ⊚ false

838)

Moving the ethical commitment of an organization to a global stage requires nothing more than increasing the scale of the policies and procedures. ⊚ true ⊚ false

839)

If there are no clear local ethical standards, companies find themselves tempted to take maximum advantage of the less stringent laws and regulations of local markets. ⊚ true ⊚ false

840)

The European Economic Community is an example of a regional trade bloc. ⊚ true ⊚ false

841)

The financial strength of the Western nations has made developing nations more amenable to accepting general standards of business practice. ⊚ true ⊚ false

842)

In the guidelines he set down for organizations doing business in other countries, Richard DeGeorge stated that it was acceptable for a company to harm the host country only if it served the greatest good for the greatest number of people. ⊚ true ⊚ false

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843)

According to Richard DeGeorge's guidelines for organizations doing business in other countries, multinationals that build hazardous plants are obliged to ensure that the plants are safe and operated safely. ⊚ true ⊚ false

844)

Richard DeGeorge fails to emphasize the importance of working with the local culture in the guidelines he set down for organizations doing business in other countries. ⊚ true ⊚ false

845)

According to Richard DeGeorge's guidelines for organizations doing business in other countries, multinationals are responsible for redesigning the transfer of hazardous technologies so that such technologies can be safely administered in host countries. ⊚ true ⊚ false

846)

The global code of conduct is a general standard of business practice that can be applied only to undeveloped countries in accordance with their local customs and social norms. ⊚ true ⊚ false

847)

The guidelines set down by Richard DeGeorge for organizations doing business in other countries were criticized because they only dealt with the issues of bribery, false advertising, and the use of sweatshops in the production process. ⊚ true ⊚ false

848)

Enforcing a global ethical standard would require all parties involved to agree on acceptable standards of behavior and appropriate consequences for failing to abide by those standards. ⊚ true ⊚ false

849)

The UN Global Compact represents a commitment on the part of its members to promote good corporate citizenship. ⊚ true ⊚ false

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850)

The UN Global Compact is a set of mandatory rules to which multinational corporations are expected to adhere. Companies that fail to comply with these rules are blacklisted by the U.S. Government. ⊚ true ⊚ false

851)

The UN Global Compact is a voluntary corporate citizenship initiative endorsing 10 key principles that focus on four key areas of concern: the environment, anticorruption, the welfare of workers around the world, and global human rights. ⊚ true ⊚ false

852)

The UN Global Compact deals exclusively with two key areas of concern: fair pricing and customer satisfaction. ⊚ true ⊚ false

853)

The UN Global Compact actively polices the behavior of multinational corporations. ⊚ true ⊚ false

854)

The UN Global Compact relies on public accountability, transparency, and the enlightened self-interest of companies, labor, and civil society to initiate and share substantive action in pursuing the principles on which the Global Compact is based. ⊚ true ⊚ false

855)

The UN Global Compact, which encourages organizations to make a voluntary commitment to corporate citizenship, is widely recognized as the world's largest initiative of its kind. ⊚ true ⊚ false

856)

As per the labor standards of the UN Global Compact, businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining. ⊚ true ⊚ false

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857)

As per the UN Global Compact, businesses should support a precautionary approach to environmental challenges. ⊚ true ⊚ false

858)

The Organization for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises represents a less governmental approach to the same issues featured in the UN's nongovernmental Global Compact. ⊚ true ⊚ false

859)

The Organization for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises were originally adopted as part of the larger Declaration on International Investments and Multinational Enterprises in 1976. ⊚ true ⊚ false

860)

The guidelines set down by the Organization for Economic Cooperation and Development are legally binding. ⊚ true ⊚ false

861)

The principles and standards of organizational behavior set down by the UN Global Compact cover more issues than the Organization for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises. ⊚ true ⊚ false

862)

The Organization for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises were criticized because they failed to address consumer interests. ⊚ true ⊚ false

863)

The Organization for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises do not address the issue of taxation. ⊚ true ⊚ false

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864)

The Organization for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises encourage enterprises to raise their performance in protecting the environment, including performance with respect to health and safety impacts. ⊚ true ⊚ false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.

865) Less-developed nations are countries which A) have poor economic, social, and technological infrastructure.

B) are characterized by social stability and high standards of living.

C) are immune to the effects of economic phenomenon like inflation.

D) have strong bureaucracies and are characterized by political stability.

866)

________ refers to ethical choices that consider the greatest good for the greatest number of people.

A) Utilitarianism B) Centralism C) Astigmatism D) Autonomism

867)

Which of the following statements is true of utilitarianism?

A) Its doctrine states that the ends do not justify the means under any circumstances.

B) Its use leads to situations in which there is no accountability for individual actions.

C) It is an ethical philosophy that considers pleasure as the ultimate motive for human actions.

D) It is a theory that considers all action taken in one's self-interest ethical.

868)

Which of the following statements is true of globalization?

A) It makes countries and markets more independent of each other.

B) It leads to the replacement of regional trade blocs with national markets.

C) It impacts the commercial, economic, social, and political environment.

D) It offers multinational companies fewer ways to reduce their expenses.

869)

How has globalization affected the economy?

A) Transnational markets have given way to national markets.

B) Regional trade blocs have been replaced by domestic markets.

C) National markets are becoming less dependent on each other.

D) National markets are being overtaken by regional trade blocs.

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870)

Globalization raises concerns about the A) restricted access multinational companies have to all less-developed countries.

B) ethical behavior of economically advanced nations toward developing ones.

C) inability of multinational companies to reduce their production costs.

D) lack of currency flow in foreign exchange markets.

871)

Multinational companies are also known as ________.

A) transnational corporations B) intranational trade blocs C) regional trade blocs D) transcontinental bureaus

872)

________ refers to a gray area in which a person's ethical principles are defined by the traditions of his or her society, personal opinions, and the circumstances of the present moment.

A) Methodological relativism B) Virtue ethics C) Ethical relativism D) Normative ethics

873)

Which of the following philosophical positions is adopted by multinational corporations when working in countries whose laws and regulations are less restrictive than the one in their own country?

A) ethical relativism B) aesthetic relativism C) motive consequentialism D) ethical consequentialism

874)

A multinational company working in a less-developed nation will face ethical relativism when A) the local customs of the less-developed nation come into conflict with the company's policies.

B) the less-developed nation is characterized by social stability and economic growth.

C) the local customs of the less-developed nation accommodate the company's code of ethics.

D) the less-developed nation possesses a bureaucracy that is related to a logical reality.

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875)

Which of the following is an advantage of globalization?

A) National markets have successfully taken over regional trade blocs on a global scale.

B) Children are no longer offered employment in "sweatshop" production facilities.

C) Multinational corporations are unable to exploit the people of less-developed countries.

D) Developing nations can leverage their natural resources to attract foreign investment.

876)

Which of the following is a disadvantage of globalization?

A) The prices of consumer goods have increased as a result of higher production costs.

B) Multinational corporations no longer see developing countries as potential consumers.

C) Foreign investors focus on developed countries and not the less-developed countries.

D) Multinational corporations are depleting the natural resources of less-developed countries.

877)

A fact about the effect of globalization is that multinational corporations A) often take advantage of the unrestrictive legal environments of less-developed countries.

B) have fewer ways in which they can reduce their production costs or increase their sales.

C) have limited access to the labor force or natural resources of less-developed countries.

D) often exploit the natural resources of developed countries without facing any consequences.

878)

Which of the following is true of the concept of global ethics?

A) It is no longer relevant today.

B) It has little backing from the United Nations.

C) It is a highly complex subject.

D) It does not involve less-developed nations.

879)

Fred, a manager in a multinational corporation, is a supporter of Milton Friedman's instrumental contract. Fred believes that corporations A) should actively work to protect the environment of the countries in which they operate.

B) must run welfare programs for the people of the countries in which they operate.

C) need to cease working in less-developed countries.

D) carry no moral obligation to the countries in which they operate.

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880)

Which of the following statements is true of less-developed countries and multinational corporations in the context of globalization?

A) Multinational corporations tend not to see less-developed countries as potential consumer markets.

B) The labor power of less-developed countries does not attract the attention of multinational corporations.

C) The long-term economic viability of less-developed countries is threatened by the activities of multinational corporations.

D) Multinational corporations prefer not to invest their time and effort in less-developed countries.

881)

An organization can move its ethical commitment to a global scale successfully by A) creating an ethical standard that respects the local customs of other countries.

B) increasing the scale of their policies and procedures to a higher degree than in other countries.

C) translating all their existing policies into the local language of the countries in which they will operate.

D) working in the absence of standard ethical policies wherever possible.

882)

A general standard of business practice that can be applied equally to all countries over and above their local customs and social norms is called a ________.

A) contextual code of relativism B) universal code of utilitarianism C) global code of conduct D) conceptual code of ethics

883)

Which of the following statements is true of the guidelines offered by Richard DeGeorge for organizations doing business in other countries?

A) They represented an ethical ideal that, at best, provided a conceptual foundation.

B) They were lauded for covering all the severe types of business transgressions.

C) They only addressed multinational corporations working in developed countries.

D) They endorsed the principles of utilitarianism which states that the ends always justify the means.

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884)

Why were the guidelines offered by Richard DeGeorge for organizations doing business in other countries criticized?

A) They overlooked issues related to the quality of goods produced.

B) They did not advocate working with or respecting local customs of other countries.

C) They represented the utilitarianism belief that the ends justify the means in all circumstances.

D) They advocate doing the greatest good for the greatest number of people.

885)

Which of the following statements is true of enforcing global ethics?

A) Nations of the world will experience no difficulty adhering to global standards for ethical performance.

B) Enforcing global ethics requires that all multinational companies follow the philosophy of utilitarianism.

C) Companies may be held accountable for ethical performance within their home countries.

D) Nations of the world will experience no difficulty governing their internal politics when implementing a global ethical standard.

886)

Which of the following bodies has approached the issue of standardizing global ethical conduct by promoting behavior guidelines that multinational corporations can publicly support?

A) the Organization for Economic Cooperation and Development B) the Government Accountability Office C) the Bureau of Economic Analysis D) the Organization for Economic Growth and Standardization

887)

Which of the following is a characteristic of the UN Global Compact?

A) It is a standard of business practice that all countries are expected to follow, by law.

B) It is a set of mandatory rules by which multinational corporations are expected to operate.

C) It is a body of rules that deals exclusively with fair pricing and customer satisfaction.

D) It is a voluntary corporate initiative that promotes good corporate citizenship.

888)

________ is one of the four key areas of concern upon which the UN Global Compact focuses.

A) Corporate tax B) Foreign exchange C) Anticorruption D) Over-population

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889)

Which of the following statements is true of the UN Global Compact?

A) It encourages actions that cause the greatest good for the greatest number of people.

B) It ignores the exploitation of less-developed countries by multinational corporations.

C) It comprises laws that are legally enforced by the United Nations.

D) It serves as a guideline for transparency and public accountability.

890)

The UN Global Compact A) ignores issues of environmental concern.

B) is the largest initiative of its kind in the world.

C) applies only to organizations operating in developed nations.

D) is a regulatory instrument that polices organizations.

891)

The UN Global Compact focuses on A) the welfare of workers around the world.

B) the profitability of small businesses.

C) the inheritance rights of women.

D) the fluctuation of currency standards.

892)

The UN Global Compact states that businesses should A) support a precautionary approach to environmental challenges.

B) avoid involvement in the environmental concerns of other nations.

C) avoid selling their products to the people of less-developed nations.

D) support the employment of children in sweatshop production facilities.

893)

The Organization for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises were initially a part of the ________.

A) Public Company Accounting Oversight Board B) International Bureau of Economic Analysis C) Dodd-Frank Wall Street Reform and Consumer Protection Act D) Declaration on International Investments and Multinational Enterprises

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894)

Which of the following is a difference between the UN Global Compact and the Organization for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises?

A) Unlike the UN Global Compact, the OECD guidelines uses a more governmental approach for the issues featured in the UN's nongovernmental Global Compact.

B) Unlike the OECD guidelines, the UN Global Compact ignores most areas of environmental concern.

C) Unlike the UN Global Compact, the OECD guidelines carry criminal or civil enforcement and are regarded as legally binding.

D) Unlike the OECD guidelines, the UN Global Compact applies only to companies operating in their own country.

895)

Which of the following is true of the Organization for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises?

A) They act in opposition to the UN Global Compact.

B) They apply solely to local and regional trade blocs.

C) They carry no criminal or civil enforcement.

D) They are legally binding for American companies.

896)

The Organization for Economic Cooperation and Development (OECD) guidelines recommend A) actions that consider the greatest good for developed countries.

B) disclosure on all material matters regarding the corporation.

C) against investing money and effort in developed countries.

D) against investing money and effort in less-developed countries.

897)

Which of the following principles and standards of behavior is advocated by both the Organization for Economic Cooperation and Development (OECD) and the UN Global Compact?

A) Businesses should observe only the customs of their own country at all times.

B) Businesses should not involve themselves in the environmental issues of other countries.

C) Businesses should utilize the natural resources of their host country to the fullest.

D) Businesses should abolish child labor, combat bribery, and fight corruption.

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898)

Which of the following is recommended by the Organization for Economic Cooperation and Development (OECD) Guidelines?

A) Companies should contribute to the innovative capacities of host countries.

B) Companies should encourage developing nations to adopt the principles of socialism.

C) Companies should uphold the effective recognition of the right to collective bargaining.

D) Companies should avoid involving themselves in the environmental issues of other countries.

899)

The Organization for Economic Cooperation and Development (OECD) Guidelines believe that less-developed countries should A) not be considered a lucrative market.

B) allow their natural resources to be tapped into freely.

C) benefit from a corporation's advanced technology.

D) avoid trading with developed nations.

FILL IN THE BLANK. Write the word or phrase that best completes each statement or answers the question.

900) A(n) ________ is one that enjoys a high standard of living as measured by economic, social, and technological criteria.

901)

A(n) ________ is one that lacks the economic, social, and technological infrastructure of a developed nation.

902)

________ refers to ethical choices that offer the greatest good for the greatest number of people.

903)

A(n) ________ is one that provides and sells products and services across multiple national borders.

904)

________ refers to the expansion of international trade to a point where national markets are overtaken by regional trade blocs, leading eventually to a global marketplace.

905)

________ refers to the gray area in which ethical principles are defined according to the traditions of society, personal opinions, and the circumstances of the present moment.

906)

A(n) ________ is defined as a general standard of business practice that can be applied equally to all countries over and above their local customs and social norms.

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907)

The ________ is a voluntary corporate citizenship initiative endorsing 10 key principles that focus on four main areas of concern: the environment, anticorruption, the welfare of workers around the world, and global human rights.

908)

The ________ Guidelines for Multinational Enterprises promote principles and standards of behavior in the following areas: human rights, information disclosure, anticorruption, taxation, labor relations, environment, competition, and consumer protection.

ESSAY. Write your answer in the space provided or on a separate sheet of paper.

909) Differentiate between less-developed and developed nations.

910)

What is a multinational corporation (MNC)? Explain the arguments of economists who disagree with the definition of an MNC.

911)

How has globalization affected the economic market?

912)

What are the advantages and disadvantages of globalization?

913)

Identify the reasons for criticizing Richard DeGeorge's guidelines for multinational corporations doing business abroad.

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914)

Discuss Richard DeGeorge's guidelines for organizations doing business in lessdeveloped countries.

915)

Write a note on the United Nations (UN) Global Compact.

916)

Summarize the 10 key principles of the UN Global Compact that address its four areas of concern: Human Rights, Labor Standards, Environment, and Anticorruption.

917)

Summarize the 10 "chapters" on the principles and standards of behavior offered by the Organization for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises.

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Answer Key Test name: chapter 9 1) 2) 3) 4) 5) 6)

TRUE TRUE TRUE TRUE TRUE FALSE The term "globalization" refers to the expansion of international trade to a point where national markets have been overtaken by regional trade blocs, leading eventually to a global marketplace.

7) TRUE 8) TRUE 9) FALSE

Critics argue that most multinational corporations (MNCs) operate in full compliance with local laws and regulations of the host country, which conveniently happen to be far less restrictive than those they would face in their own country.

10) TRUE 11) FALSE

Multinational corporations are also known as transnational corporations.

12) TRUE 13) FALSE

When companies do business in countries other than their own, they face an ethical dilemma—do they conduct business as they would in their own country, or do they take advantage of the less restrictive laws of the other countries?

14) FALSE

Ethical relativism refers to a gray area in which one's ethical principles are defined by the traditions of the society, personal opinions, and the circumstances of the present moment.

Utilitarianism is the philosophy that dictates that individuals must only make such choices that offer the greatest good for the greatest number of people.

15) FALSE

Ethical relativism arises when policies banned in one country are legally acceptable in another country.

16) TRUE

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17) TRUE 18) FALSE

Moving the ethical commitment of an organization to a global stage requires a great deal more planning than simply increasing the scale of the policies and procedures.

19) TRUE 20) TRUE 21) FALSE

The financial strength of the Western nations is seen as a threat to equal representation of the developing nations, and as a result, those developing nations hold onto their national identities and cultures, thereby precluding any agreement on a general standard of business practice.

22) FALSE

In the guidelines he set down for organizations doing business in other countries, Richard DeGeorge stated that companies should produce more good than harm for the host country.

23) TRUE 24) FALSE

In the guidelines he set down for organizations doing business in other countries, Richard DeGeorge emphasized the importance of working with the local culture and not against it.

25) TRUE 26) FALSE

The global code of conduct is a general standard of business practice that can be applied equally to all countries over and above their local customs and social norms.

27) FALSE

Richard DeGeorge's guidelines overlook some of the most severe transgressions of multinational corporations, such as bribery, pollution, false advertising, questionable product quality, and the abuse of human rights in the utilization of "sweatshop" production facilities.

28) TRUE 29) TRUE 30) FALSE

The UN Global Compact is a voluntary corporate citizenship initiative which represents a commitment on the part of its members to promote good corporate citizenship.

31) TRUE 32) FALSE

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The UN Global Compact focuses on four key areas of concern: the environment, anticorruption, the welfare of workers around the world, and global human rights.

33) FALSE

The UN Global Compact is not a regulatory instrument—it does not "police," enforce, or measure the behavior or actions of companies.

34) TRUE 35) TRUE 36) TRUE 37) TRUE 38) FALSE

The Organization for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises represents a more governmental approach to the same issues featured in the UN's nongovernmental Global Compact.

39) TRUE 40) FALSE

The guidelines set down by the Organization for Economic Cooperation and Development carry no criminal or civil enforcement and are not regarded as legally binding.

41) FALSE

The principles and standards of organizational behavior set down by the Organization for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises draw on the same core values as the UN Global Compact—but across a broader series of issues.

42) FALSE

The Organization for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises recommend that enterprises, when dealing with consumers, act in accordance with fair business, marketing, and advertising practices; respect consumer privacy; and take all reasonable steps to ensure the safety and quality of goods or services provided.

43) FALSE

The Organization for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises call on enterprises to respect both the letter and spirit of tax laws and to cooperate with tax authorities.

44) TRUE 45) A 46) A 47) B

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48) C 49) D 50) B 51) A 52) C 53) A 54) A 55) D 56) D 57) A 58) C 59) D 60) C 61) A 62) C 63) A 64) A 65) C 66) A 67) D 68) C 69) D 70) B 71) A 72) A 73) D 74) A 75) C 76) B 77) D 78) A 79) C 80) developed nation 81) less-developed nation 82) Utilitarianism 83) multinational corporation (MNC) 84) Globalization 85) Ethical relativism 86) global code of conduct 87) UN Global Compact

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88) Organization for Economic Cooperation and Development (OECD) 89) Essay

A less-developed nation is one that lacks the economic, social, and technological infrastructure of developed nations.A developed nation is a country that enjoys a high standard of living as measured by economic, social, and technological criteria.

90) Essay

A multinational corporation (MNC) is a company that provides and sells products and services across multiple national borders. Economists disagree over the correct definition of an MNC. Some argue that to be truly multinational, an organization must have owners from more than one country (such as Shell's Anglo-Dutch structure). Others argue that an organization is multinational when it generates products and/or services in multiple countries and when it implements operational policies (such as marketing, staffing, and production) that go beyond national boundaries.

91) Essay

Globalization has applications in commercial, economic, social, and political environments.

Globalization refers to the expansion of international trade to a point where national markets have been overtaken by regional trade blocs (Latin America, Europe, Africa), leading eventually to a global marketplace.

92) Essay

Supporters of globalization argue that it is bringing unprecedented improvements in the wealth and standards of living of citizens in developing nations as they leverage their natural resources or low costs of living to attract foreign investment. For the more economically advanced nations, access to those resources enables lower production costs that equate to lower prices and higher income standards for their customers.

Advocates for the downside of globalization argue that it is merely promoting the dark side of capitalism onto the global stage—developing countries are ravaged for their raw materials with no concern for the longer-term economic viability of their national economies; workers are exploited; and corporations are free to take full advantage of less restrictive legal environments.

93) Essay

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DeGeorge's guidelines present something of an ethical ideal that can at best provide a conceptual foundation, but at worst overlook some of the most severe transgressions that have brought such negative attention to the ethical behavior of multinational corporations. In the pursuit of profit and continued expansion, MNCs have been found guilty of bribery, pollution, false advertising, questionable product quality, and, most prominently, the abuse of human rights in the utilization of "sweatshop" production facilities that fail to meet even the minimum health and safety standards of their home countries and that utilize child labor, often at wage levels that are incomprehensible to Western consumers.

94) Essay

Richard DeGeorge offers the following guidelines for organizations doing business in lessdeveloped countries: Do no intentional harm.

Produce more good than harm for the host country.

Contribute to the host country's development.

Respect the human rights of their employees.

Respect the local culture; work with it, not against it.

Pay their fair share of taxes.

Cooperate with the local government to develop and enforce just background institutions.

Majority control of a firm includes the ethical responsibility of attending to the actions and failures of the firm.

Multinationals that build hazardous plants are obliged to ensure that the plants are safe and operated safely.

Multinationals are responsible for redesigning the transfer of hazardous technologies so that such technologies can be safely administered in host countries.

1) Essay

The United Nations (UN) Global Compact was launched in a speech to the World Economic Forum on January 31, 1999, by UN Secretary-General Kofi Annan. It became operational in July 2000. The UN Global Compact represents a commitment on the part of its members to promote good corporate citizenship with a focus on four key areas of concern: the environment, anticorruption, the welfare of workers around the world, and global human rights. It is not a regulatory instrument; it does not "police," enforce, or measure the behavior or actions of companies. Rather, it relies on public accountability, transparency, and the enlightened selfinterest of companies, labor, and civil society to initiate and share substantive action in pursuing the principles on which it is based.

2) Essay

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Human Rights i) Businesses should support and respect the protection of internationally proclaimed human rights. ii) Businesses should make sure they are not complicit in human rights abuses.

Labor Standards iii) Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining. iv) Businesses should uphold the elimination of all forms of forced and compulsory labor. v) Businesses should uphold the effective abolition of child labor. vi) Businesses should uphold the elimination of discrimination in employment and occupation.

Environment vii) Businesses should support a precautionary approach to environmental challenges. viii) Businesses should undertake initiatives to promote greater environmental responsibility. ix) Businesses should encourage the development and diffusion of environmentally friendly technologies.

Anticorruption x) Businesses should work against all forms of corruption, including extortion and bribery.

3) Essay

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The Organization for Economic Cooperation and Development (OECD) Guidelines for Multinational Enterprises offer principles and standards of behavior that draw on the same core values as the UN Global Compact across a broader series of issues captured in 10 "chapters": I. Concepts and Principles: Sets out the principles that underlie the guidelines, such as their voluntary character, their application worldwide, and the fact that they reflect good practice for all enterprises.

II. General Policies: Contains the first specific recommendations, including provisions on human rights, sustainable development, supply chain responsibility, and local capacity building; and, more generally, calls on enterprises to take full account of established policies in the countries in which they operate.

III. Disclosure: Recommends disclosure on all material matters regarding the enterprise such as its performance and ownership, and encourages communication in areas where reporting standards are still emerging such as social, environmental, and risk reporting.

IV. Employment and Industrial Relations: Addresses major aspects of corporate behavior in this area including child and forced labor, nondiscrimination and the right to bona fide employee representation, and constructive negotiations.

V. Environment: Encourages enterprises to raise their performance in protecting the environment, including performance with respect to health and safety impacts. Features of this chapter include recommendations concerning environmental management systems and the desirability of precautions where there are threats of serious damage to the environment.

VI. Combating Bribery: Covers both public and private bribery and addresses passive and active corruption.

VII. Consumer Interests: Recommends that enterprises, when dealing with consumers, act in accordance with fair business, marketing, and advertising practices; respect consumer privacy; and take all reasonable steps to ensure the safety and quality of goods or services provided.

VIII. Science and Technology: Aims to promote the diffusion by multinational enterprises of the fruits of research and development activities among the countries where they operate, thereby contributing to the innovative capacities of host countries.

IX. Competition: Emphasizes the importance of an open and competitive business climate.

X. Taxation: Calls on enterprises to respect both the letter and spirit of tax laws and to cooperate with tax authorities.

Student name:__________ TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false.

918) Demanding customers who want new and better products and services at lower prices represent a typical market. ⊚ true ⊚ false

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919)

Impatient stockholders wanting the stock price to rise each and every quarter are representative of most markets. ⊚ true ⊚ false

920)

Typical markets represent federal, state, and local officials who simplify and reduce rules and regulations, thus discouraging firms from hiring more people and paying more taxes. ⊚ true ⊚ false

921)

Sustainable ethics in a culture are those that persist within the operational policies of the organization long after the latest public scandal or the latest management buzzword. ⊚ true ⊚ false

922)

A company's commitment to ethical behavior impacts only the lower level of management and those departments that deal directly with customers. ⊚ true ⊚ false

923)

In order to make ethical behavior sustainable, an organization requires commitment solely from the top management. ⊚ true ⊚ false

924)

Hiring an ethics officer is the first stage in the process of making ethical behavior sustainable. ⊚ true ⊚ false

925)

Supporting the code of ethics with extensive training for every member of the organization is the first stage in making ethical behavior sustainable for an organization. ⊚ true ⊚ false

926)

Celebrating and rewarding the ethical behavior demonstrated by an organization's employees is the last stage in making ethical behavior sustainable for an organization. ⊚ true ⊚ false

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927)

In an organization, the commitment to ethical behavior must be documented in a code of ethics, so that everyone begins from the same starting point. ⊚ true ⊚ false

928)

A well-written code of ethics can capture what an organization understands ethical behavior to mean. ⊚ true ⊚ false

929)

The audience for the code of ethics of an organization includes only its employees. ⊚ true ⊚ false

930)

A well-written code of ethics can establish a detailed guide to acceptable behavior. ⊚ true ⊚ false

931)

There is no perfect model for a code of ethics. ⊚ true ⊚ false

932)

A well-written code of ethics can document punishments for violations of a company's ethics policies. ⊚ true ⊚ false

933)

According to the Institute of Business Ethics, an organization should create an original model and not pick a well-tested model while creating a code of ethics. ⊚ true ⊚ false

934)

The Institute of Business Ethics suggests that an organization should get an endorsement from the chairperson and the board while creating a code of ethics from scratch. ⊚ true ⊚ false

935)

A code of ethics is a guide that covers every possible event for employees. ⊚ true ⊚ false

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936)

For an organization to develop an ethical culture that is sustainable, it should promote its commitment to ethical behavior so that all stakeholders know what is expected of them. ⊚ true ⊚ false

937)

The real test of any company's ethics policy comes when one of its employees is presented with a potentially unethical situation. ⊚ true ⊚ false

938)

Employees and stakeholders of a company are required to follow their company's code of ethics strictly. ⊚ true ⊚ false

939)

It is important to establish an extensive training program to support the published code of ethics of a company. ⊚ true ⊚ false

940)

Training programs to support a company's published code of ethics should include the application of the code to possible examples, allowing employees to recognize ethical issues, discuss options for an appropriate response, and select the best option for the organization. ⊚ true ⊚ false

941)

Since the code of ethics cannot capture every possible example, each department of an organization should apply the code to examples that arise in its area. ⊚ true ⊚ false

942)

The role of an ethics officer is to enforce the code of ethics and provide support to any employees who witness unethical behavior. ⊚ true ⊚ false

943)

The chief responsibility of an ethics officer is to assess an organization's corporate image amongst its competitors. ⊚ true ⊚ false

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944)

Employees in all job functions need to be familiar with the company's code of ethics. ⊚ true ⊚ false

945)

Every company's ethics policy should state that awarding prizes to employees for good ethical behavior should be avoided. ⊚ true ⊚ false

946)

An organization's code of ethics helps its employees understand clearly the standard of behavior expected from them and the consequences for failing to meet that standard. ⊚ true ⊚ false

947)

A company should avoid communicating its ethics policy to external stakeholders. ⊚ true ⊚ false

948)

The continued growth of technology will present new situations for ethical dilemmas, thus, a company's code of ethics needs to be rewritten on a regular basis. ⊚ true ⊚ false

949)

Smaller companies need to include their code of ethics as part of any strategic planning exercise to make sure it is as up to date as possible. ⊚ true ⊚ false

950)

A risk factor of a company becoming too transparent and giving away too much information is the loss of market advantage through corporate espionage. ⊚ true ⊚ false

951)

A transparent organization tends to avoid open and honest communication with all its stakeholders. ⊚ true ⊚ false

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952)

Reactive ethical policies of a company are the policies that result when it develops a clear sense of what it stands for as an ethical organization. ⊚ true ⊚ false

953)

Proactive ethical policies of an organization are the policies that result when it is driven by events and/or a fear of future events. ⊚ true ⊚ false

954)

True ethical policies are proactive, and occur when a company develops a clear sense of what it stands for as an ethical organization. ⊚ true ⊚ false

955)

A carefully "wordsmithed" document and carefully positioned press releases suggest that an organization is strictly following the policy of transparency. ⊚ true ⊚ false

956)

When an individual is looking to manage the reputation and policies of an organization, the commitment to doing the right thing becomes more about following the written ethics policy than about any sense of organizational integrity. ⊚ true ⊚ false

957)

Organizational integrity is a characteristic of publicly committing to the highest professional standards and sticking to that commitment. ⊚ true ⊚ false

MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers the question.

958) ________ is ethical behavior that persists long after the latest public scandal or the latest management buzzword.

A) Universal ethics B) Sustainable ethics C) Virtue ethics D) Applied ethics

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959)

A company's commitment to ethical behavior affects A) only the operational departments that deal with customers.

B) only the strategic departments that deal with the major clients.

C) every managerial level and every department of the organization equally and increases its efficiency.

D) the employees in an adverse manner, as they are always worried about the consequences of their actions.

960)

Which of the following statements is true of sustainable ethics?

A) An organization requires commitment only from the top management in order to administer sustainable ethics.

B) The audience for the code of ethics includes selected stakeholders.

C) An organization's commitment to ethical behavior must be documented in a code of ethics for everyone to begin from the same starting point.

D) The audience for the code of ethics excludes investors, customers, and suppliers of the organization.

961)

Which of the following is the first stage in making ethical behavior sustainable for a company?

A) monitoring ethical behavior as the company grows B) establishing a code of ethics for the company C) promoting the company's commitment to ethical behavior D) hiring an ethics officer for the company

962)

HP Chase Inc., an investment banking firm, has decided to make ethical behavior sustainable in its organization. It has set up the process of monitoring ethical behavior by establishing a code of ethics. Which of the following stages is HP Chase Inc. most likely to undertake next?

A) reward ethical behavior demonstrated by the board of directors B) hire an ethics officer C) reward ethical behavior demonstrated by employees D) support the code of ethics with extensive training for every member of the organization

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963)

Altra Partners (AP) believes in maintaining sustainable ethics. It has recently established a code of ethics and organized comprehensive training sessions for all its members. Which of the following steps is most likely to be undertaken next by AP? A) hiring an ethics officer B) promoting ethical behavior among its stakeholders C) celebrating and rewarding the ethical behavior demonstrated by its employees D) monitoring the ethical behavior of its employees

964)

Which of the following steps is the immediate next stage in making ethical behavior sustainable for a company after it hires an ethics officer?

A) monitoring the ethical behavior of its employees continuously as the company grows B) producing and distributing a company code of conduct among its employees C) celebrating and rewarding the ethical behavior demonstrated by its employees D) supporting the code of ethics with extensive training for every member of the organization

965)

Downerz Enterprises (DE) has been in the news for fraud by one its directors. As a result, the trustees of DE have appointed a new director who has established a strict code of ethics.

He has announced extensive training for every member of the organization. An ethics officer has also been hired by DE. Which of the following steps is most likely to be taken next by the new director to maintain ethical behavior in the organization?

A) Publish the code of conduct and send it to all its stakeholders.

B) Promote DE's commitment to ethical behavior.

C) Celebrate and reward the ethical behavior demonstrated by its employees.

D) Support the code of ethics with extensive training for the senior managers of the organization.

966)

Which of the following is most likely to be the next stage in making ethical behavior sustainable for an organization after it promotes its commitment to ethical behavior?

A) continuously monitoring the ethical behavior of its employees as the company grows B) hiring an ethics officer C) celebrating and rewarding the ethical behavior demonstrated by its employees D) supporting the code of ethics with extensive training for every member of the organization

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967)

In creating a code of ethics, the Institute of Business Ethics advises companies to A) develop their own model to suit their requirements rather than pick a previously tested model.

B) conduct a pilot test of the code with a sample consisting of employees drawn from all levels and different locations.

C) produce a code of conduct and circulate it via the company's extranet.

D) ensure that the framework is limited to the company's employees and customers.

968)

Walter Warburg & Co., a new investment banking firm, has dismissed the idea of establishing a code of ethics for its employees. Which of the following consequences is most likely to take place as a result of this decision?

A) It can now clearly state policies for behavior in specific situations.

B) It can capture distinctly what the organization understands ethical behavior to mean.

C) It will not be allowed to operate, as having a written code of ethics is mandatory in every organization.

D) It cannot document punishments for the violation of ethical policies.

969)

A well-written code of ethics A) states policies for behavior in specific situations.

B) distinguishes between punishments for violations of ethics for different managerial levels.

C) establishes a detailed guide to acceptable behavior exclusively for external stakeholders.

D) documents rewards for selected top management employees on the fulfillment of ethical policies.

970)

Which of the following elements is most likely be included by an organization in its code of ethics?

A) the key performance indicators to be used in appraisals B) the policies for behavior in specific situations C) the criteria for claiming fringe benefits D) the policies related to the number of permissible leaves

971)

The audience for the code of ethics of an organization should include the A) competitors of the organization who copy their code of ethics.

B) investors of the organization.

C) external agencies of the organization who assist in framing the code of ethics.

D) past employees of the organization.

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972)

Which of the following statements is true of the code of ethics of an organization?

A) The code of ethics is highly unlikely to be created from scratch.

B) The code of ethics is unlikely to include detailed accounts of punishments for violations of the code.

C) The code of ethics does not have a perfect model.

D) The audience for a code of ethics includes only the organization's customers.

973)

Which of the following statements is most likely to be true of an organization's code of ethics?

A) There are a few perfect models for a code of ethics.

B) The audience for a code of ethics includes only the shareholders of an organization.

C) The code of ethics of an organization captures every possible event from each department.

D) The code of ethics is written for the employees of an organization, and the stakeholders are not required to follow it.

974)

Which of the following statements is advice from the Institute of Business Ethics for creating a code of ethics from scratch?

A) Get an endorsement from the chairperson and the board.

B) Put the code on the organization's website rather than sending it to all stakeholders individually.

C) Use a framework that includes the customers, but not the competitors.

D) Pilot-test the code solely on lower-level, operational employees.

975)

In the context of the creation of a code of ethics, the Institute of Business Ethics advises companies A) to hire young trainees to conduct research and formulate ethical policies.

B) to put the code on the organization's website, and not to send it to all employees, suppliers, and other stakeholders.

C) to introduce practical examples of the code in all company internal (and external) training programs and induction courses.

D) not to try out the code first, as no piloting is required.

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976)

Arthur and Nicole are arguing over the creation of a code of ethics for an organization.

Arthur believes that it would be good for organizations to follow the advice from the Institute of Business Ethics before creating the code of ethics, while Nicole disagrees with him.

Which of the following actions would an organization take if it agrees with Arthur?

A) The organization would develop its own model rather than picking a well-tested model.

B) The organization would put the code on its website rather than sending it to all employees, suppliers, and others.

C) The organization would conduct an extensive survey involving every employee rather than getting an endorsement from the board.

D) The organization would determine the topics on which employees require guidance.

977)

Edmund has been recently appointed as executive in-charge of the code of conduct for Elmer Enterprises. He administers the code of conduct among the organization's employees and oversees the investigations of wrongdoings in the organization. He also provides additional guidance and support to the employees. Edmund is most likely to be the ________ of the organization.

A) chief operations officer B) ethics officer C) guidance officer D) chief investigating officer

978)

Which of the following actions is most likely to lead to the promotion of an organization's commitment to ethical behavior?

A) sharing the organization's success stories exclusively with its employees B) responding to errors related to transactions after the clients approach the organization C) limiting the participation in Ethics Day celebrations solely to the employees D) allowing employees to visit client sites to talk about the organization's code of ethics

979)

The ________ of an organization is the senior executive responsible for monitoring its moral standards both internally and externally.

A) ethics officer B) assessing officer C) chief knowledge officer D) chief analytics officer

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980)

Derek oversees the investigation of wrongdoings in his organization and provides additional guidance and support to the employees. He also develops training programs for every department to maintain organizational conduct. Which of the following positions does Derek most likely hold in his company?

A) chief knowledge officer B) assessing officer C) ethics officer D) chief analytics officer

981)

Which of the following statements is true of ethics officers?

A) They must be hired from outside the organization.

B) Their chief responsibility is to compare the code of ethics of different companies.

C) Their role is never developed as a separate department in an organization.

D) They monitor the ethical performance of the organization both internally and externally.

982)

According to the documentation of a survey conducted by the Ethics and Compliance Officers Association, which of the following responsibilities ranks highest among the chief responsibilities of an ethics officer?

A) establishing a loyal customer base B) conducting surveys with customers to improve customer service C) overlooking hotline/guideline/internal reporting D) maintaining the information systems in the organization

983)

According to the documentation of a survey conducted by the Ethics and Compliance Officers Association survey, which of the following responsibilities ranks lowest in the category of the main responsibilities of an ethics officer?

A) training design B) organization wide communications C) oversight of hotline/guideline/internal reporting D) conducting investigations of wrongdoing

984)

Which of the following statements is a piece of advice from the Institute of Business Ethics for creating a code of ethics?

A) The company's competitors should be completely ignored when framing the code of ethics.

B) The involvement of external parties should be avoided during the creation of drafts.

C) The code should be publicly shared on platforms associated with the company.

D) The code should be tested on a sample consisting solely of top managerial employees.

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985)

Which of the following factors is likely to make companies revise and rewrite their codes of ethics from time to time?

A) a continuous change in the technology used by the company B) an increase in costs due to certain codes of ethics being maintained C) an increase in conflicts within the organization due to the implementation of the codes of ethics D) a decline in the employees' productivity due to strict codes of ethics

986)

In the context of a company's ethics policy, which of the following actions should an organization avoid taking?

A) awarding prizes for ethical behavior B) declaring an Ethics Day and allowing every department to share its success stories C) communicating only to internal stakeholders D) recognizing employees who represent the standards of behavior to which the company is committed

987)

Brenner Inc. (BI) is formulating its ethics policy with the goal of increasing employee loyalty and improving customer satisfaction. In order to meet these goals, BI should ensure that its policy A) includes threats of punishments balanced with rewards.

B) excludes low-performing departments from sharing their experiences.

C) includes only the internal stakeholders.

D) excludes awarding trainees in order to avoid upsetting the senior members of the organization.

988)

Which of the following risks is most likely to occur as a result of organizational transparency?

A) loss of market advantage through corporate espionage B) loss of trust among employees C) rise in costs due to maintenance of transparency D) decline of productivity of employees

989)

Which of the following statements is true of transparency?

A) It provides avenues to increase organizational efficiency.

B) It helps organizations save on taxes and other costs.

C) It is a rare trait even in ethically driven organizations.

D) It does not pose any risk to confidential intellectual property.

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990)

________ in business means that stakeholders have visibility deep into the processes and information of an organization.

A) Transparency B) Conformity C) Vicarious liability D) Organizational integrity

991)

Bretton Inc. (BI), a multinational corporation, releases detailed financial statements at the end of every quarter of a year. It is open and honest with its clients in all communication and clearly states the terms and conditions of its contracts. In this scenario, which of the following organizational characteristics is best illustrated by BI? A) conformity B) transparency C) organizational integrity D) vicarious liability

992)

A policy that results when an organization is driven by events and/or a fear of future events is known as a ________.

A) distributive ethical policy B) reactive ethical policy C) secure ethical policy D) defensive ethical policy

993)

A policy that results when a company develops a clear sense of what it stands for as an ethical organization is known as a ________.

A) secure ethical policy B) reactive ethical policy C) defensive ethical policy D) proactive ethical policy

994)

The difference between reactive and proactive policies of an organization is that A) unlike reactive policies, proactive policies ignore the actions the organization will most likely take to be recognized as an ethical organization.

B) reactive policies are driven by events and/or a fear of future events, whereas proactive policies are driven by a clear sense of what is construed as ethical for the organization.

C) proactive policies help monitor the ethical performance of the organization only externally, whereas reactive policies monitor the organization both internally and externally.

D) unlike proactive policies, reactive policies are true ethical policies.

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995)

________ describes the characteristic of publicly committing to the highest level of professional standards and then sticking to that commitment.

A) Organizational integrity B) Vicarious liability C) Corporate governance D) Ethical relativism

996)

Some of the employees, including the top managers and the board of directors, of Warburges Inc. have been in the news lately for accepting bribes and using corporate resources for personal expenses. Which of the following characteristics did the firm fail to demonstrate?

A) vicarious liability B) ethical relativism C) organizational integrity D) corporate governance

FILL IN THE BLANK. Write the word or phrase that best completes each statement or answers the question.

997) ________ refers to ethical behavior that persists long after the latest public scandal or the latest management buzzword.

998)

A(n) ________ is a senior executive responsible for monitoring an organization's ethical performance both internally and externally.

999)

________ is a characteristic of an organization that maintains open and honest communications with all its stakeholders.

1000) Policies that result when organizations are driven by events and/or a fear of future events

are called ________.

1001) When a company develops a clear sense of what it stands for as an ethical organization, it

develops ________.

1002) ________ describes the characteristic of publicly committing to the highest level of

professional standards and then sticking to that commitment.

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ESSAY. Write your answer in the space provided or on a separate sheet of paper.

1003) Summarize six characteristics of a tough market.

1004) Explain the stages for making ethical behavior sustainable for an organization.

1005) Describe how a company can celebrate and reward ethical behavior demonstrated by its

employees.

1006) What are the functions of a well-written code of ethics?

1007) Discuss what each department of an organization can do to support its published code of

ethics.

1008) How did Microsoft's 2006 white paper "The New World of Work: Transparent

Organizations" summarize transparency?

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1009) Differentiate between reactive and proactive ethical policies.

1010) Discuss organizational integrity.

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Answer Key Test name: chapter 10 1) TRUE 2) TRUE 3) FALSE

Demanding federal, state, and local officials who burden firms with more rules and regulations while encouraging them to hire more people and pay more taxes are characteristic of most markets.

4) TRUE 5) FALSE

A company's commitment to ethical behavior impacts every managerial level and every department of the organization.

6) FALSE

In order to make ethical behavior sustainable, an organization requires commitment from every member of the organization.

7) FALSE

The first stage in the process of making ethical behavior sustainable for an organization is to establish a code of ethics.

8) FALSE

Establishing a code of ethics is the first stage in making ethical behavior sustainable for an organization.

9) FALSE

Monitoring behavior as the company grows is the last stage in making ethical behavior sustainable for an organization.

10) TRUE 11) TRUE 12) FALSE

The audience for the code of ethics includes every stakeholder of the organization.

13) TRUE 14) TRUE 15) TRUE 16) FALSE

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According to the Institute of Business Ethics, an organization should pick a well-tested model while creating a code of ethics.

17) TRUE 18) FALSE

A code of ethics can only be a guide—it cannot cover every possible event.

19) TRUE 20) TRUE 21) FALSE

A company's code of ethics is written for its employees but its stakeholders are not required to follow it.

22) TRUE 23) TRUE 24) TRUE 25) TRUE 26) FALSE

The ethics officer is a senior executive responsible for monitoring the ethical performance of the organization both internally and externally.

27) TRUE 28) FALSE

A company should award prizes for ethical behavior—and let the employees choose the reward.

29) TRUE 30) FALSE

An ethics policy commits a firm to doing the right thing for all its stakeholders. Hence, the message must be shared with all its stakeholders—both inside and outside the company.

31) TRUE 32) TRUE 33) TRUE 34) FALSE

A transparent organization maintains open and honest communication with all its stakeholders.

35) FALSE

Reactive ethical policies are the policies that result when organizations are driven by events and/or a fear of future events.

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36) FALSE

Proactive ethical policies of an organization are the policies that result when it develops a clear sense of what it stands for as an ethical organization.

37) TRUE 38) FALSE

A carefully "wordsmithed" document and carefully positioned press releases suggest that an organization has something to hide, and it is not following the policy of transparency.

39) FALSE

When an individual is looking to manage the reputation and policies of an organization, the commitment to doing the right thing becomes more about organizational integrity than any sense of a written ethics policy.

40) TRUE 41) B 42) C 43) C 44) B 45) D 46) A 47) C 48) C 49) A 50) B 51) D 52) A 53) B 54) B 55) C 56) D 57) A 58) C 59) D 60) B 61) D 62) A 63) C 64) D 65) C 66) D

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67) C 68) A 69) C 70) A 71) A 72) A 73) A 74) B 75) B 76) D 77) B 78) A 79) C 80) Sustainable ethics 81) ethics officer 82) Transparency 83) reactive policies 84) proactive policies 85) Organizational integrity 86) Essay

A typical tough market has a set of six characteristics: Demanding customers who want new and better products and services at lower prices Impatient stockholders who want the stock price to rise each and every quarter Aggressive vendors who want to sell companies more of everything Demanding federal, state, and local officials who want to burden companies with more rules and regulations while encouraging them to hire more people and pay more taxes Demanding creditors who want their loan payments on time Aggressive competitors who want to steal other companies' customers 1) Essay

Every member of an organization should be involved in committing to a formal structure to support an ongoing process of monitoring and enforcement in order to make ethical behavior sustainable for the organization. This can be summarized in the following six stages: i) Establish a code of ethics. ii) Support the code of ethics with extensive training for every member of the organization. iii) Hire an ethics officer. iv) Celebrate and reward the ethical behavior demonstrated by its employees. v) Promote the organization's commitment to ethical behavior. vi) Continue to monitor the behavior as the firm grows.

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2) Essay

A company can celebrate and reward ethical behavior demonstrated by its employees in the following ways: Celebrate examples of good ethical behavior in its newsletter.

Award prizes for ethical behavior, and let the employee choose the reward.

Award prizes for new and creative ideas, and let the employee choose the reward.

Recognize employees who represent the standard of behavior to which the company is committing.

Declare an Ethics Day and allow every department to share its success stories.

1) Essay

A well-written code of ethics can do several things. It can capture what the organization understands ethical behavior to mean and establish a detailed guide to acceptable behavior. It can state policies for behavior in specific situations and document punishments for violations of those policies.

2) Essay

There should be an extensive training program to support the published code of ethics of a company. Since the code cannot capture every possible event, every department should take the code and apply it to examples that could arise in its area. In department or team meetings, employees can work on recognizing the ethical issue, discussing options for an appropriate response, and selecting the best option for the organization.

3) Essay

According to Microsoft's 2006 white paper, "The New World of Work: Transparent Organizations," transparency in business means that stakeholders have visibility deep into the processes and information of an organization. Important qualities of transparency include the following: A requirement that is being enforced on markets and companies through regulation.

An enabler of better relationships with partners and customers (that is soon to be an expectation).

A great opportunity to rework business processes to increase efficiency.

A risk to confidential intellectual property.

1) Essay

A reactive ethical policy results when organizational decisions are driven by events and/or a fear of future events. A proactive ethical policy is established when the company develops a clear sense of what it stands for as an ethical organization and what actions will be taken (and what punishments will be enforced, if necessary) to get there.

2) Essay

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Organizational integrity describes the characteristic of publicly committing to the highest level of professional standards and then sticking to that commitment. Recognizing the concept of business ethics allows individuals to categorize behavior as unethical; but, when they are looking to manage the reputation and policies of an organization, the commitment to doing the right thing becomes more about organizational integrity than any sense of a written ethics policy.

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