BUE201 Full

a

Which of the following statements is true about ethical decision making in business?
a. Ethical decision making is not limited to the type of major corporate decisions with dramatic social consequences.
b. Every employee does not face an issue that requir

b

2. Which of the following statements is true about ethical decision making in business?
a. Ethical decision making is limited to the type of major corporate decisions with social consequences.
b. At some point, every worker will be faced with an issue tha

d

3. Which of the following statements is true about ethical decision making in business?
a. Ethical decision making is limited to the type of major corporate decisions with social consequences.
b. Every employee does not face an issue that requires ethical

b

In a general sense, a business _____ is anyone who affects or is affected by decisions made within the firm, for better or worse.
a. nominee
b. stakeholder
c. stockholder
d. watchdog

d

Which of the following best describes a business stakeholder?
a. Only the minority shareholders in a business entity
b. Only those who have acquired significant shares in a firm
c. Anyone who audits a firm
d. Anyone who affects or is affected by decisions

c

6. Identify the bill that was passed in April 2009 to amend the executive compensation provisions of the Emergency Economic Stabilization Act of 2008 to prohibit unreasonable and excessive compensation and compensation not based on performance standards.

a

7. Which of the following is the objective of the Grayson-Himes Pay for Performance Act?
a. To ban future "unreasonable and excessive" compensation at companies receiving federal bailout money
b. To set up the Public Company Accounting Oversight Board in

c

Which of the following best describes ethics?
a. An academic discipline which originated in the early 1900s
b. A descriptive approach that provides an account of how and why people do act the way they do
c. The study of how human beings should properly li

b

9. Which of the following is an approach advocated while teaching ethics?
a. Teachers should teach ethical dogma to a passive audience.
b. Teachers should consider acceptance of customary norms as an adequate ethical perspective.
c. Teachers should unders

a

10. Philosophers often emphasize that ethics is _____, which means that it deals with a person's reasoning about how he or she should act.
a. normative
b. descriptive
c. stipulative
d. persuasive

b

11. Which of the following observations is true of ethics?
a. It is descriptive in nature.
b. It deals with our reasoning about how we should act.
c. It provides an account of how and why people act the way they do.
d. It is equivalent to law-abiding beha

b

12. Like ethics, social sciences such as psychology and sociology also examine human decision making and actions. However, these fields differ from ethics because they are _____.
a. normative in nature
b. descriptive in nature
c. persuasive in nature
d. s

c

Ethics seeks an account of how and why people should act a certain way, rather than how they do act. This nature of ethics makes it a(n) _____ discipline.
a. descriptive
b. supererogatory
c. normative
d. stipulative

c

14. As a _____ discipline, ethics seeks an account of how and why people should act a certain way.
a. descriptive
b. supererogatory
c. normative
d. stipulative

a

15. The _____ discipline provides an account of how and why people do act the way they do.
a. descriptive
b. supererogatory
c. normative
d. stipulative

a

16. Individual codes of conduct based on one's value structures regarding how one should live, how one should act, what one should do, what kind of a person should one be etc. is sometimes referred to as _____.
a. morality
b. independence
c. leadership
d.

c

Morality is the aspect of ethics that we can refer to by the phrase "_____."
a. personal freedom
b. individual rationality
c. personal integrity
d. persuasive rationality

b

_____ is that aspect of ethics that is referred to by the phrase "personal integrity."
a. Values
b. Morality
c. Social ethics
d. Norms

d

Which of the following raises questions about justice, law, civic virtues, and political philosophy?
a. Stipulative ethics
b. Morality
c. Descriptive discipline
d. Social ethics

a

The aspect of business ethics that examines business institutions from a social rather than an individual perspective is referred to as:
a. decision making for social responsibility.
b. corporate cultural responsibility.
c. institutionalized ethical respo

c

_____ establish the guidelines or standards for determining what one should do, how one should act, what type of person one should be.
a. Roles
b. Attitudes
c. Norms
d. Laws

b

Norms:
a. are the underlying beliefs that cause people to act or to decide one way rather than another.
b. are standards of appropriate and proper behavior.
c. are referred to by the phrase "personal integrity."
d. do not presuppose any underlying values.

a

The crux of normative ethics is that these disciplines:
a. presuppose some underlying values.
b. describe what people do.
c. should always involve the study or discipline of ethics.
d. branch away from social ethics to personal ethics.

d

Which of the following are underlying beliefs that cause us to act or to decide one way rather than another?
a. Patterns
b. Codes
c. Sets
d. Values

d

Which of the following is true about values?
a. Values are the highest standards of appropriate and proper behavior.
b. Corporate scandals prove the fact that individuals have personal values, but institutions lack values.
c. Values cannot lead to unethic

b

Which of the following are beliefs and principles that provide the ultimate guide to a company's decision making?
a. Mission statement
b. Core values
c. Historical milestones
d. Vision statement

a

Which of the following best describe the norms that guide employees, implicitly more often than not, to behave in ways that the firm values and finds worthy?
a. Organizational culture
b. Government's financial regulations
c. Industrial norms
d. Legal stat

d

Ethics requires that the promotion of human welfare be done:
a. based on the personal opinions of the decision maker.
b. based on the level of need of the beneficiaries.
c. understanding the religious beliefs of the beneficiary.
d. in a manner that is acc

d

Dramatic examples from history, including Nazi Germany and apartheid in South Africa, demonstrate that:
a. societies valuing freedom welcome laws that require more than the ethical minimum.
b. ethical responsibilities give rise to more and more regulation

a

30. Telling organizations that their ethical responsibilities end with obedience to the law:
a. is just inviting more legal regulation.
b. is enough to maintain an ethical business environment.
c. reduces the frequency of corporate scandals.
d. eliminates

d

The failure of personal ethics among companies like Enron and WorldCom led to the creation of the:
a. Brooks Act.
b. Gramm-Leach-Bliley Act.
c. Clinger-Cohen Act.
d. Sarbanes-Oxley Act.

c

32. Which of the following observations is true?
a. Obedience to the law is sufficient to fulfill one's ethical duties.
b. The law is very effective at promoting "goods."
c. The law cannot anticipate every new dilemma that businesses might face.
d. An ind

c

33. Which of the following helps identify potential events that may affect the entity, and manage risk to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives?
a. Risk aversion
b. Risk benchmarking
c.

b

34. Practical reasoning is reasoning about:
a. what we should think.
b. what we should do.
c. what we should believe.
d. what we should share.

a

_____ reasoning is reasoning about what we should do.
a. Practical
b. Descriptive
c. Theoretical
d. Notional

c

Theoretical reasoning is reasoning about:
a. what we actually do.
b. what we should do.
c. what we should believe.
d. what we should implement.

c

37. _____ reasoning is reasoning about what we should believe.
a. Practical
b. Abstract
c. Theoretical
d. Descriptive

a

38. Which of the following refers to the pursuit of truth and the highest standard for what we should believe?
a. Theoretical reason
b. Critical reason
c. Philanthropic reason
d. Practical reason

c

39. According to the tradition of theoretical reason, _____ is the great arbiter of truth.
a. religion
b. perception
c. science
d. ethics

a

40. Which of the following can be thought of as the answer to the fundamental questions of theoretical reason?
a. The scientific method
b. The practical approach
c. The contingency approach
d. The normative model

A

The first step in making decisions that are ethically responsible is to:
a. determine the facts.
b. consider the available alternatives.
c. monitor and learn from the outcomes.
d. identify and consider the impact of the decision on stakeholders.

C

Which of the following is the second step of the ethical decision-making process?
a. Considering available alternatives
b. Making the decision
c. Identifying the ethical issues involved
d. Considering the impact of the on stakeholders

A

Kathy, your best friend and class mate, asks you to help her with a challenging ethical predicament. Which of the following would be your first step in the decision making process?
a. Identifying the ethical issue
b. Considering the available alternatives

C

When does issue identification become the first step in the ethical decision-making process?
a. When you are not accountable for the decision
b. When you are solely responsible for a decision
c. When you are presented with an issue from the start
d. Under

D

In the ethical decision-making process, identify the steps that might arise in reverse order, depending on the circumstances.
a. Identifying the ethical issues; considering the impact of the decision on stakeholders
b. Determining the facts; identifying t

B

Which of the following terms refers to shortsightedness about values?
a. Inattentional blindness
b. Normative myopia
c. Change blindness
d. Descriptive ignorance

B

The inability to recognize ethical issues is known as _____.
a. inattentional blindness
b. normative myopia
c. change blindness
d. descriptive ignorance

B

Which of the following is true of normative myopia?
a. It occurs when decision makers fail to notice gradual changes over time.
b. It refers to the shortsightedness about values.
c. It occurs only in business.
d. It results from only from focusing failure

D

Which of the following statements reflects the concept of normative myopia?
a. "I was so involved in our debate that I missed the red light."
b. "I never expected Draco to steal from me; he has been my friend for so long."
c. "Brad met with an accident be

A

If we are told specifically to pay attention to a particular element of a decision or event, we are likely to miss all of the surrounding details, no matter how obvious. According to Bazerman and Chugh, this phenomenon is known as _____.
a. inattentional

C

. Focusing failures result in moments where we ask ourselves, "How could I have missed that?" According to Bazerman and Chugh, this phenomenon is known as:
a. change blindness.
b. descriptive ignorance.
c. inattentional blindness.
d. normative myopia.

D

According to Bazerman and Chugh, inattentional blindness results from _____.
a. ignorance
b. passivity
c. thoughtlessness
d. focusing failures

D

Which of the following is true of inattentional blindness?
a. It occurs when decision makers fail to notice gradual changes over time.
b. It refers to the shortsightedness about values.
c. It distinguishes good people who make ethically responsible decisi

B

Speaking on a cell phone while driving, and as a result, missing a highway turn-off by mistake is an example of _____.
a. normative myopia
b. inattentional blindness
c. descriptive ignorance
d. change blindness

C

The Arthur Andersen auditors did not notice how low Enron had fallen in terms of its unethical decisions over a period of time. According to Bazerman and Chugh, this omission is an example of _____.
a. inattentional blindness
b. descriptive ignorance
c. c

A

Which of the following is true of change blindness?
a. It occurs when decision makers fail to notice gradual variations over time.
b. It refers to the shortsightedness about values.
c. It distinguishes good people who make ethically responsible decisions

C

Which omission occurs when decision makers fail to notice gradual variations over time?
a. Inattentional blindness
b. Incremental blindness
c. Change blindness
d. Normative myopia

D

In the ethical decision-making process, once one examines the facts and identifies the ethical issues involved, one should next _____.
a. make the decision
b. consider the available alternatives
c. monitor and learn from the outcomes
d. identify the stake

A

_____" include all of the groups and/or individuals affected by a decision, policy, or operation of a firm or individual.
a. Stakeholders
b. Shareholders
c. Employees
d. Owners

D

Jim resides in the vicinity of a steel manufacturing firm. Any changes in the pollution control or waste treatment policy of the firm indirectly affects Jim. In this sense, Jim is a(n) _____.
a. shareholder
b. employee of the firm
c. observer
d. stakehold

B

In an ethical decision-making process, moral imagination helps individuals make ethically responsible decisions. Identify the step in which moral imagination is critical.
a. Determining the facts
b. Considering the available alternatives
c. Identifying th

B

In the ethical decision-making process, once we have examined the facts, identified the ethical issues involved, and identified the stakeholders, we need to next _____.
a. make the decision
b. consider the available alternatives
c. consider how a decision

A

. In the ethical decision-making process, creativity in identifying options is also known as _____.
a. moral imagination
b. descriptive imagination
c. intentional deliberation
d. normative imagination

D

_____ is one element that distinguishes good people who make ethically responsible decisions from good people who do not.
a. Normative myopia
b. Inattentional blindness
c. Change blindness
d. Moral imagination

C

Which of the following is true of moral imagination?
a. It occurs when decision makers fail to notice gradual variations over time.
b. It refers to the shortsightedness about values.
c. It distinguishes good people who make ethically responsible decisions

D

Which of the following elements distinguish good people who make ethically responsible decisions from good people who do not?
a. Normative imagination
b. Moral obligation
c. Ethical goal orientation
d. Moral imagination

C

Which of the following elements is important not only to consider the obvious options with regard to a particular dilemma, but also the much more subtle ones that might not be evident at first blush?
a. Intentional deliberation
b. Descriptive imagination

A

In the ethical decision-making process, identify the step that involves predicting the likely, foreseeable, and the possible consequences to all the relevant stakeholders.
a. Comparing and weighing the alternatives
b. Making the decision
c. Identifying th

D

. "A critical element of this step in the ethical decision-making process will be the consideration of ways to mitigate, minimize, or compensate for any possible harmful consequences or to increase and promote beneficial consequences." Which step is this?

C

Consequences, justifications, principles, rights, or duties are all methods to:
a. identify the stakeholders that may be impacted by the decisions.
b. find out about the various available alternatives.
c. compare and weigh alternatives.
d. identify the et

C

Which step in the ethical decision-making process occurs once you have considered how a decision affects stakeholders by comparing and weighing the alternatives?
a. Identifying the ethical issues involved
b. Monitoring and learning from outcomes
c. Making

B

Which of the following is the final step in the ethical decision-making process?
a. Identifying the ethical issues involved
b. Monitoring and learning from outcomes
c. Considering how a decision affects stakeholders
d. Identifying key stakeholders

C

When faced with a situation that suggests two clear alternative resolutions, we often consider only those two clear paths, missing the fact that other alternatives might be possible. Considering limited alternatives is a stumbling block to responsible act

C

Which of the following is a cognitive barrier to responsible, ethical decision-making?
a. Choosing the alternative that meets maximum decision criteria
b. Considering unlimited alternatives
c. Following simplified decision rules
d. Selecting only the best

D

Which of the following cognitive barriers, when used, might appear to relieve us of accountability for the decision, even if it may not be the best possible decision?
a. Moral imagination
b. Considering unlimited alternatives
c. Satisfying the maximum dec

D

Which of the following explains the term "satisficing?"
a. Striving to select only the best alternative
b. Following simplified decision rules
c. Selecting the alternative simply because it is the easy way out
d. Selecting the alternative that meets minim

B

Identify the barrier where individuals or groups select the option that meets the minimumdecision criteria, the one that people can live with, even if it might not be the best.
a. Considering simplified decision rules
b. Satisficing
c. Optimizing
d. Selec

B

According to Socrates, which of the following aspects leads to an unexamined life not worth living?
a. Bounded ethicality
b. Passivity
c. Cultural myopia
d. Satisficing

D

Which of the following is an example of an institutional role?
a. Friend
b. Citizen
c. Neighbor
d. Teacher

C

Which of the following is an example of a social role?
a. Student-body president
b. Manager
c. Neighbor
d. Accountant

D

The three major categories of an ethical framework are:
a. utility, virtue, and values.
b. universal rights, values, and moral principles.
c. universal rights, cultural norms, and morals.
d. consequences, principles, and personal character.

C

Which of the following ethical frameworks directs us to decide based on overall consequences of our acts?
a. Principle-based ethics
b. Kantian tradition
c. Utilitarianism
d. Virtue ethics

A

Identify the ethical tradition that directs us to act on the basis of moral principles.
a. Principle-based ethics
b. Utilitarianism
c. Virtue ethics
d. Consequence-based ethics

B

The study of various character traits that can contribute to, or obstruct, a happy and meaningful human life is part of _____.
a. Kantian tradition
b. virtue ethics
c. principle-based ethics
d. utilitarianism

D

Utilitarianism's fundamental insight is that we should decide what to do by:
a. considering the moral character of individuals.
b. following the rules, regardless of consequences.
c. acting only out of a self-interest.
d. considering the consequences of o

C

Utilitarianism has been called a(n):
a. commonsensical approach to ethics.
b. behavioral approach to ethics.
c. consequentialist approach to ethics.
d. intuitive approach to ethics.

C

What is the difference between a principle-based framework of ethics and utilitarianism?
a. Ethics of principles is based on self-interest, whereas utilitarianism is based on human rights.
b. Ethics of principles is based on human rights, whereas utilitar

D

Which of the following traditions is commonly identified with the rule of producing "the greatest good for the greatest number"?
a. Principle-based
b. Kantian
c. Virtue
d. Utilitarianism

A

Which of the following principles does utilitarianism emphasize?
a. Producing the greatest good for the greatest number
b. Acting only out of self-interest
c.Ensuring that a fair decision is an impartial decision
d. Obeying the law and keeping promises

C

Which of the following traditions would support child labor if it produces better overall consequences than the available alternatives?
a. Virtue ethics
b. Deontological ethics
c. Utilitarianism
d. Classicism

D

The utilitarian tradition relies on _____ for deciding on the ethical legitimacy of alternative decisions.
a. intuition
b. experience
c. variable analysis
d. social sciences

C

According to the _____, the most efficient economy is structured based on the principles of free market capitalism.
a. Kantian framework of ethics
b. principle-based framework of ethics
c. utilitarian framework of ethics
d. virtue-based framework of ethic

C

Which of the following is true of a market version of utilitarianism?
a. Questions of safety and risk are determined by experts.
b. Social science determines policies to maximize the overall good.
c. Individuals calculate for themselves what risks they wi

D

Which of the following would be advocated by the "administrative" version of utilitarianism?
a. Deregulation of advertising standards
b. Reliance on free and competitive markets
c. Risk-taking by consumers
d. Government regulation of business

D

How is a market version of utilitarianism different from an administrative version?
a. The market version ensures that experts establish the safety standards a business is expected to meet.
b. The market version uses social sciences to predict consequence

B

The essence of utilitarianism is its:
a. focus on personal character.
b. reliance on consequences.
c. focus on principles.
d. reliance on moral systems.

A

Which of the following is a problem with utilitarian ethics?
a. Its need to count, measure, compare, and quantify consequences
b. Utilitarianism's focus on the means
c. The focus on the good of individuals compared to the overall good
d. The necessity to

D

Which ethical framework goes against the ethical principle of obeying certain duties or responsibilities, no matter the end result?
a. Principle-based framework of ethics
b. Kantian framework of ethics
c. Virtue ethics framework of ethics
d. Utilitarian f

D

Which of the following ethical approaches binds us to act or decide in certain ways?
a. Kantian ethics
b. Utilitarianism
c. Virtue ethics
d. Principle-based ethics

A

Which of the following statements reflects the approach of a principle-based ethical tradition?
a. Obey the law
b. Ends justify the means
c. Maximize the overall good
d. Survival of the fittest

C

Which of the following approaches emphasizes the need to follow legal rules regardless of unfavorable consequences?
a. Virtue ethics
b. Utilitarianism
c. Principle-based
d. Egoism

D

We ought to stop at a red light, even if no cars are coming and I could get to my destination that much sooner." Identify the ethical approach that follows this line of thought.
a. Virtue ethics
b. Utilitarianism
c. Role ethics
d. Ethics of principles

D

._____ ensure the integrity and proper functioning of the economic, legal, or financial systems.
a. Social functions
b. Administrative functions
c. Marketing functions
d. Gatekeeper functions

C

No group could function if members were free at all times to decide for themselves what to do and how to act. Which of the following functions to organize and ease relations between individuals?
a. Autocracy
b. Self-rule
c. Social contract
d. Personal nor

C

According to Immanuel Kant, there is essentially one fundamental moral duty:
a. to treat people as objects that exist for our purposes.
b. to consider the consequence of our actions.
c. to treat each person as an end in themselves.
d. to do whatever we ch

C

A rights-based ethical framework would object to child labor because:
a. of all the likely consequences of a practice of employing young children in factories.
b. such practices are a means to production and economic growth.
c. such practices violate our

D

The concept of moral rights is central to the:
a. virtue-based ethical tradition.
b. consequence-based ethical tradition.
c. behavior-based ethical tradition.
d. principle-based ethical tradition

D

The _____ tradition claims that our fundamental human rights, and the duties that follow from them, are derived from our nature as free and rational beings.
a. utilitarian
b. virtue-based
c. role-based
d. Kantian

C

The Kantian tradition claims that humans do not act only out of instinct and conditioning; they make free choices about how they live their lives, about their own ends. In this sense, humans are said to have a fundamental human right of:
a. dignity.
b. ra

C

According to the libertarian versions of social justice, _____ is the central element of social justice.
a. equality
b. government control
c. individual liberty
d. employment

B

Which of the following statements is inferred from Rawls's theory of justice?
a. Decisions taken my seniors should be acceptable to everyone.
b. A decision which is partial is considered an unfair decision.
c. Each individual in the society should be trea

B

Which among the following is a legal right?
a. The right to select a specific health care package
b. The right to bargain collectively as part of a union
c. The right to select a particular pension fund
d. The right to select the number of paid holidays

B

Which of the following is true of ethics based on rights?
a. Rights and duties can be easily defined.
b. There is no agreement on the scope and range of rights.
c. Application of theory to real-life situations is easy.
d. Rights and desires can be easily

A

Which of the following approaches conceives of practical reason in terms of deciding how to act and what to do?
a. Utilitarianism
b. Virtue-based
c. Kantian
d. Altruism

A

What is the difference between virtue ethics and principle-based ethics?
a. Virtue ethics is based on character traits, whereas principle-based ethics is based on a set of rules.
b. Virtue ethics is based on the consequences of actions, whereas principle-

D

Which of the following traditions seeks a full and detailed description of those character traits that would constitute a good and full human life?
a. Kantian ethics
b. Principle-based ethics
c. Utilitarianism
d. Virtue ethics

B

Identify the view which holds that people act only out of a self-interest.
a. Altruism
b. Egoism
c. Utilitarianism
d. Libertarianism

D

Which of the following approaches shifts the focus from questions about what a person should do, to a focus on who that person is?
a. Altruism
b. Principle-based
c. Utilitarianism
d. Virtue ethics

A

Virtue ethics emphasizes the more _____ side of our character.
a. affective
b. cognitive
c. conative
d. intuitive

A

Which of the following focuses on the concept of business practices and what type of people these practices are creating?
a. Virtue ethics
b. Kantian ethics
c. Utilitarian ethics
d. Principle-based ethics

C

Which of the following is true about corporate cultures?
a. Corporate cultures are not influenced by the people comprising that organization.
b. Corporate cultures are not subject to changes over time.
c. Corporate cultures can hinder individuals in makin

A

Corporate culture:
a. is fashioned by a shared pattern of beliefs, expectations, and meanings that influence and guide the thinking and behaviors of the members of that organization.
b. shapes the people who are members of the organization, but it is not

D

Which of the following is true about culture?
a. The specific culture within an organization can be defined easily and objectively.
b. The incentives an organization employs do not help in determining the organization's specific culture.
c. Attitude and b

B

Which of the following situations could result in the business culture becoming a determining factor in ethical decision making?
a. Lack of competition
b. Law providing incomplete answers
c. Lack of strong leadership
d. Stagnant or decreasing profits

D

Which of the following statements is true of ethical cultures?
a. Workplace ethical cultures have no impact on decision making.
b. Subordinates are expected not to act unless directed by superior authorities.
c. Decisions are expected to be taken based on

B

According to the _____ ethics tradition, people act out of habit than out of deliberations.
a. Kantian
b. virtue
c. utilitarian
d. principle-based

D

Which of the following is a traditional approach to corporate culture?
a. Values-based
b. Integrity-based
c. Customer-based
d. Compliance-based

D

Which of the following is true about value-based cultures?
a. They emphasize obedience to the rules as the primary responsibility of ethics.
b. They are only as strong and as precise as the rules with which workers are expected to comply.
c. They reflect

C

Which of the following is emphasized by a compliance-based culture?
a. Reliance on personal integrity of employees for decision making
b. Use of values as the principle for decision making
c. Obedience to rules as the primary responsibility of ethics
d. R

D

Which of the following cultures will empower legal counsel and audit offices to mandate and to monitor conformity with the law and with internal codes?
a. Customer-based culture
b. Integrity-based culture
c. Values-based culture
d. Compliance-based cultur

B

Which of the following is true about an integrity-based culture?
a. It reinforces a particular set of rules.
b. It reinforces a particular set of values.
c. It empowers legal bodies to monitor compliance.
d. It emphasizes rules as the primary responsibili

A

When would a values-based culture rely on the personal integrity of its workforce for making decisions?
a. In situations where the rules of the organization do not apply
b. When legal bodies are empowered to monitor compliance
c. In situations where rules

C

Which of the following is true about a compliance-based culture and/or a value-based culture?
a. A compliance-based culture recognizes that where a rule does not apply the firm must rely on the personal integrity of its workforce when decisions need to be

B

As compared to a traditional compliance-oriented program, an evolved and inclusive ethics program:
a. focuses on meeting regulatory requirements.
b. entails helping to unify a firm's global operations.
c. strives to minimize risks of litigation and indict

D

What is the role of an ethical leader in corporate cultures?
a. A leader should be ethical within the confines of the top management team.
b. An ethical leadermust shrink his or her duties in the corporate structure.
c. An ethical leader should not place

D

Which of the following is true about ethical leaders?
a. Ethical business leaders do not need to talk about ethics and act ethically on a personal level.
b. They do not say "no" to conduct that would be inconsistent with their organization's and their own

C

Identify the correct statement about ethical leaders.
a. Individuals perceived as ethicalleaders avoid doing things that "traditional leaders" do.
b. A "quietly ethical" executive is likely to be perceived as an ethical leader.
c. An ethical leader's trai

C

How is an ethical, effective leader different from an effective leader?
a. An ethical leader will take decisions based only on a set of rules.
b. An ethical leader will follow a set of rules regardless of consequences.
c. An ethical leader will empower th

B

The means used to motivate others and achieve one's goals plays a key role in distinguishing between:
a. silent leaders and visible leaders.
b. effective leaders and ethical leaders.
c. informal leaders and formal leaders.
d. silent leaders and ethical le

A

Which of the following is an essential element in establishing an ethical leadership?
a. The end or objective toward which the leader leads
b. The prevailing culture in the external environment
c. The ethical nature of the team members
d. The personality

D

If we judge a leader solely by the results produced, we are following the _____ ethical tradition.
a. deontological
b. virtual
c. Kantian
d. utilitarian

A

Which of the following is a value that will impact the culture of an organization in the absence of any other established values?
a. Profit�at any cost
b. Ethical behavior
c. Legal compliance
d. Customer satisfaction

A

A(n) _____ provides concrete guidance for internal decision making creating a built-in risk management system.
a. code of conduct
b. organization vision
c. income statement
d. ombudsman

C

The _____ serves as an articulation of the fundamental principles at the heart of the organization and should guide all decisions without abridgment.
a. annual report
b. vision statement
c. mission statement
d. income statement

B

The first step in constructing a personal code or mission for a firm is to:
a. articulatea clear vision regarding the firm's direction.
b. ask oneself what one stands for or what the firm stands for.
c. believe that the culture is actually possible, achie

B

The second step in the development of guiding principles for a firm is to:
a. ask oneself what one stands for or what the company stands for.
b. articulate a clear vision regarding the firm's direction.
c. identify clear steps as to how the culturalshift

D

Identify the most determinative element in integration, without which, there is no clarity of purpose, priorities, or process.
a. Ethics
b. Leadership
c. Tradition
d. Communication

C

Which of the following is true about communicating unethical behavior in a corporate structure?
a. Reporting ethically suspect behavior is a simple thing to do.
b. Employees are always comfortable in raising questions against superiors.
c. Reporting indiv

A

Which of the following involves the disclosure of unethical or illegal activities to someone who is in aposition to take action to prevent or punish the wrongdoing?
a. Whistleblowing
b. Redlining
c. Gentrification
d. Flyposting

D

An effective internal mechanism of whistleblowing:
a. occurs when employees report wrongdoing to legal authorities.
b. must expose unethical behaviors to the press.
c. should not protect the rights of the accused.
d. must allow confidentiality, if not ano

C

Which of the following statements is true about whistleblowing?
a. It involves the disclosure of ethical activities.
b. It may seem disloyal, but it does not harm the business.
c. It can occur both internally and externally.
d. It does not cause any harm

B

Which of the following mechanisms allows employees to report wrong doing and to create mechanisms for follow-up and enforcement?
a. Accountability
b. Ombudsman
c. Appraisals
d. Code of conduct

C

Which of the following is an effective way of creating clear and successful reporting schemes?
a. Leaders empowering subordinates to take decisions without providing guidance
b. Managers ignoring the risk and taking a wait-and-see attitude
c. Consistent a

B

Which of the following allows organizations to uncover silent vulnerabilities that could pose challenges later to the firm, serving as a vital element in risk assessment and prevention?
a. Code of conduct
b. Ongoing ethics audit
c. Whistleblowing
d. Ombud

D

What is the term used to describe a potentially damaging or ethically challenged corporate culture?
a. "Caustic" culture
b. "Pyrophoric" culture
c. "Corrosive" culture
d. "Toxic" culture

A

Which of the following statements is true about the Federal Sentencing Guidelines for Organizations?
a. They provide uniformity and fairness to the judiciary system.
b. They are used to provide arbitrary punishments.
c. They are applicable only to organiz

C

The Supreme Courtseparated the "mandatory" element of theFederal SentencingGuidelines for Organizationsfrom their advisory role,holding that their mandatory nature:
a. was only applicable to individuals and not to organizations.
b. provided arbitrary puni

B

Which of the following directed the USSC to consider and to review its guidelines for fraud relating to securities and accounting, as well as to obstruction of justice, and specifically asked for severe and aggressive deterrents insentencing recommendatio

B

Which of the following is true about the Sarbanes-Oxley Act?
a. It specifically asked for lenient penalties in sentencing recommendations.
b. It required public companies to establish a code of conduct for top executives and, if they did not have one, to

C

Which of the following should an organization do in order to have an effective compliance and ethics program?
a. It should do a public display of an employee's report on an unethical behavior.
b. It should ensure that people who have previously engaged in

A

The form of business that limits the liability of individuals for the risks involved in business activities is known as _____.
a. corporation
b. partnership
c. joint proprietorship
d. sole proprietorship

D

Legislators created a form of business called corporations because they thought that businesses could be more efficient in raising the capital necessary for producing goods, services, jobs, and wealth if:
a. multiple owners were involved in the strategic

B

According to the economic model of corporate social responsibility, the sole duty of a business is to:
a. go beyond legal responsibilities to cater to the needs of the society.
b. fulfill the economic functions that it was designed to serve.
c. think beyo

C

Which of the following is true about the economic model of CSR?
a. It holds that a business should prioritize environmental sustainability.
b. It has its roots in the Kantian tradition of ethics.
c. It contends that the goal of business managers should be

C

Milton Friedman claims that a corporate executive has a "responsibility to conduct business in accordance with his or her employer's desires, which generally will be to make as much money as possible while conforming to the basic rules of society, both th

D

According to the economic model of corporate social responsibility, the pursuit of profit will continuously work toward the optimal satisfaction of consumer demand which, in one interpretation of _____is equivalent to maximizing the overall good.
a. deont

A

Which of the following models of corporate social responsibility holds pursuit of profit as the sole duty of a business?
a. Economic model of corporate social responsibility
b. Philanthropic model of corporate social responsibility
c. Social web model of

C

A narrow view of corporate social responsibility is expressed by the:
a. social web model of corporate social responsibility.
b. integrative model of corporate social responsibility.
c. economic model of corporate social responsibility.
d. philanthropic m

C

Which of the following best describes corporate social responsibility?
a. It refers to the dedication that employees show in meeting organizational goals.
b. It refers to the accountability that a manager has over his subordinates.
c. It refers to the act

A

Corporate social responsibility refers to:
a. those things that businesses ought, or should, do, even if they would rather not.
b. those measures that are taken against the ill treatment of subordinates in a firm.
c. the avoidance of misconduct within an

D

Which of the following is the most demanding social responsibility?
a. A business should prevent harm even in those cases where it is not the cause.
b. A business should volunteer for society or environment-friendly work.
c. A business should engage in ch

A

Which of the following ethical requirements is the type of responsibility established by the precedents of tort law?
a. Duty to not cause avoidable harm to the society
b. Duty to find employment for employees injured at work
c. Duty to engage in charitabl

A

Which of the following statements is true about the philanthropic model of corporate social responsibility?
a. This model holds that business has no strict obligation to contribute to social causes, but it can be a good thing when they do so.
b. This mode

C

The _____model of CSR holds that, like individuals, business is free to contribute to social causes as a matter of philanthropy, and business has no strict obligation to contribute to social causes; but it can be a good thing when they do so.
a. economic

C

Just as individuals have no ethical obligation to contribute to charity or to do volunteer work in their community, business has no ethical obligations to serve wider social goods. But, just as charity is a good thing and something that we all want to en

A

In the philanthropic model of CSR, situations where a business supports a social cause for the purpose of receiving a business benefit in return are not much different from:
a. the economic model of CSR.
b. the stakeholder theory of CSR.
c. the integrativ

B

The philanthropic model in which business support for a social cause is done because it is the right thing to do differs from the reputational version only in terms of the:
a. level of social good done.
b. underlying motivation.
c. reach of the social goo

C

Which of the following is true of philanthropy in accordance with the economic model of corporate social responsibility?
a) Philanthropy done for reputational reasons is not fully ethical.
b) Philanthropy done for solely financial benefits is not truly an

D

Which of the following models of corporate social responsibility considers business a citizen of the society that it operates in?
a. Philanthropic model
b. Economic model
c. Altruistic model
d. Social web model

B

According to Norman Bowie, the "moral minimum" that we expect of every person�either acting as individuals or within corporate institutions�is:
a. basic spirituality.
b. respect for human rights.
c. contribution to charity.
d. accountability.

A

According to philosopher Norman Bowie, managers have a responsibility to maximize profits as long as they:
a. respect human rights and cause no harm.
b. contribute to charitable organizations.
c. are confident and do charitable work.
d. adhere to rules an

C

According to the philosopher Norman Bowie, the contractual duty that managers have to stockholder-owners:
a. makes them focus on philanthropy.
b. makes them feel obliged to perform social good and prevent harm to the society.
c. overrides their responsibi

A

Which of the following theories recognizes the fact that every business decision affects a wide variety of people�benefiting some and imposing costs on others?
a. Stakeholder theory
b. Integrative theory
c. Altruistic theory
d. Institutional theory

B

Stakeholder theory is an example of the:
a. philanthropy model of corporate social responsibility.
b. social web model of corporate social responsibility.
c. economic model of corporate social responsibility.
d. stockholder model of corporate social respo

D

An individual who argues that firms should be managed for the sole benefit of stockholders is defending the:
a. philanthropic model of CSR.
b. social web model of CSR.
c. integrative model of CSR.
d. economic model of CSR.

B

. _____ theory argues that the narrow economic model fails both as an accurate descriptive and as a reasonable normative account of business management.
a. Sustainability
b. Stakeholder
c. Classical
d. Attributive

B

Which of the following is a similarity between utilitarianism and stakeholder theory?
a. Both place organizational benefits above other considerations.
b. Both consider the consequences of management decisions for the well-being of all affected groups.
c.

C

Corporate managers who fail to give due consideration to the rights of employees and other concerned groups in the pursuit of profit are treating these groups as means to the ends of stockholders. This is unjust according to the _____.
a. financial framew

A

A firm that balances its social goals against economic goals and does justice to both is said to follow the:
a. integrative model of corporate social responsibility.
b. economic model of corporate social responsibility.
c. social web model of corporate so

C

The tension that prevails when an organization tries to meet both social and economic responsibilities is generally overcome by:
a. utilizing a small percentage of profit on social causes.
b. doing charitable work to build a good reputation within the com

A

The for-profit organizations that prioritize social entrepreneurship and sustainability as a central part of their strategic mission are pursuing the _____ model of CSR.
a. integrative
b. economic
c. social web
d. philanthropic

A

Sustainability holds that:
a. a firm's financial goals must be balanced against environmental considerations.
b. a firm must place social considerations below tasks beneficial to its growth.
c. a firm must not prioritize social goals at the expense of eco

B

Which of the following is an example of a firm that is failing its fundamental social responsibility?
a. A firm that has its loss margins exceeding its profit margins
b. A firm that uses resources at unsustainable rates
c. A firm that is financially unsta

D

Which of the following versions of corporate social responsibility suggests that the long-term financial well-being of every firm is directly tied to questions of how the firm both affects and is affected by the natural environment?
a. Social web
b. Phila

A

When a firm engages in socially responsible activities with a prime focus on reputation:
a. social responsibility tend to become a form of social marketing.
b. the measure of positive reputation gained is impossible to calculate.
c. profits have to be sac

A

The practice of attending to the "image" of a firm is referred to as:
a. reputation management.
b. branding.
c. crisis management.
d. gentrification.

D

Enlightened self-interest, an important justification offered for corporate social responsibility, presumes that:
a. measurement of bottom-line impact of ethical decision making is unimportant.
b. profits are independent of ethics.
c. bottom-line impact o

C

Which of the following is the challenge associated with ethical pay offs?
a. It ruins the reputation that triggered it.
b. It is very small in comparison to profits.
c. It is very difficult to measure ethical pay offs.
d. It can easily be duplicated by co

A

According to David Vogel,which of the following should a firm be most cautious about when engaging in CSR activities?
a. Investing in CSR when consumers are not willing to pay higher prices to support that investment.
b. Employees may become over-indulgen

B

Some employers might decide to treat employees well as a means to produce greater workplace harmony and productivity. This approach is reminiscent of _____ ethics.
a. deontological
b. utilitarian
c. normative
d. Kantian

C

Some employers emphasize the rights and duties of all employees, and treat employees well simply because "it is the right thing to do." Identify the ethical approach for this perspective.
a. Prescriptive ethics
b. Utilitarianism
c. Deontological ethics
d.

C

Philosophically, the right of _____ is the right to be protected against the arbitrary use of authority.
a. continuance
b. freedom of association
c. due process
d. self-determination

A

Which of the following statements is true about the right of due process?
a. In legal contexts, due process refers to the procedures that police and courts must follow in exercising their authority over citizens.
b. Few dispute that the state, through its

D

Identify the correct statement about "bullying."
a. The mistreatment of an employee needsto be physically threatening to be termed as bullying.
b. Bullying does not involve a boss who is constantly yelling dictates at workers because that is his job.
c. W

B

The issue of workplace bullying is more predominant in the service sector because:
a. it lacks the right of due process.
b. that work relies significantly on interpersonal relationships and interaction.
c. of its strong hierarchy of authority.
d. most of

D

Identify the doctrine which holds that employers are free to fire an employee at any time and for any reason, unless an agreement specifies otherwise.
a. The doctrine of estoppel
b. The doctrine of constructive notice
c. The doctrine of constructive dismi

C

Which of the following statements about the doctrine of employment at will (EAW) is true?
a. Employment at willholds that employers can fire an employee at any time, but have to provide them with a valid reason.
b. The freedom to terminate the employer-em

D

During the process of downsizing, allowing a worker to remainin a position for a period of time once she or he has been notified of impending termination might not be the best option. Identify the correct justification for this statement.
a. Workers will

D

In some regions, employees lack even the most basic health and safety protections in their workplaces. Such work environments are termed as _____.
a. op shops
b. holes-in-the-walls
c. haberdasheries
d. sweatshops

B

The life of one who dies in a workplace accident has _____ value that can be measured, in part, by the lost wages that would have been earned had that person lived.
a. absolute
b. instrumental
c. intrinsic
d. extrinsic

C

The _____ value of the life is something that financial compensation cannot replace.
a. absolute
b. instrumental
c. intrinsic
d. extrinsic

A

Which of the following is true of health and safety at the workplace?
a. Health and safety have instrumental value and intrinsic value.
b. Employers are responsible to provide a completely safe and healthy workplace.
c. Financial compensation can replace

C

With regard to health and safety at workplace, _____ can be defined as the probability of harm.
a. obstacles
b. impediments
c. risks
d. barriers

C

With regard to health and safety at workplace, _____ can be determined by comparing the probabilities of harm involved in various activities.
a. variable obstacles
b. absoluteimpediments
c. relative risks
d. comparative barriers

B

Discussions in ethics about employee health and safety tend to focus on the relative risks workers face and the level of acceptable workplace risk because:
a. workers' compensation is easier to calculate.
b. employers cannot be responsible for providing a

D

Comparison of the probabilities of harm involved invarious activities would determine the _____.
a. acceptable level of risks
b. absolute risks
c. speculative risks
d. relative risks

C

When can we conclude that an activity has an "acceptable level of risk?"
a. If it can be determined that the probability of harm involved in a specific work activity is manageable.
b. If the probability of harm involved in a specific work activity is acce

C

Which of the following approaches to health and safety at the workplace can be considered paternalistic decision making which treats employees like children and makes crucial decisions for them?
a. Government-regulated ethics approach
b. Diversifiable ris

C

Which of the following is true of the acceptable risk approach to health and safety?
a. It is a liberal approach to health and safety that allows employees to recognize the risk they are likely to face.
b. It involves the determination of "relative risks,

D

Identify the challenge faced by the acceptable risk approach to health and safety.
a. It is a liberal approach to health and safety that allows employees to recognize the risk they are likely to face.
b. It involves the determination of "relative risks,

B

Which of the following statements is true about the market controlled approach to health and safety?
a. It treats employees disrespectfully by ignoring their input as stakeholders.
b. In this approach, employees are free to choose the risks they are willi

A

Enlightened self-interest would be a valuable theory to introduce and apply in the _____ approach to health and safety.
a. market controlled
b. integrative
c. acceptable risk
d. government-regulated

A

Which of the following problems are associated with the market controlled approach to health and safety?
a. Employees do not know the risks involved in a job and therefore are not in a position to freely bargain for appropriate wages.
b. It ignores the fu

C

Identify the correct statement about government standards in the government-regulated ethics approach to health and safety.
a. Due to its focus on prevention rather than compensation, standards cannot address the "first generation" problem of the market c

D

Identify the approach that allows the Occupational Safety and HealthAdministration (OSHA)to make trade offs between health and economics.
a. Sustainability approach
b. Integrative approach
c. Market controlled approach
d. Feasibility approach

C

Critics in both industry and government argue that OSHA should aim to achieve the optimal, rather than highest feasible, level of safety. Which of the following can be used to achieve this goal?
a. Cost-utility analysis
b. Cost-minimization analysis
c. Co

C

Identify the distinguishing feature between cost-benefit analysis and cost-effectiveness.
a. Cost-effectiveness is ethically problematic.
b. Cost-benefit analysis adoptsthe most efficient means available to achieving a particular standard.
c. Cost-benefit

B

Which of the following statements is true about cost-benefit analysis?
a. It treats health and safety merely as an intrinsic value and denies its instrumental value.
b. It requires that an economic value be placed on one'slife and bodily integrity.
c. It

B

According to the universal principle of Kantian philosophy, the ethical obligation of _____ should guide employment interactions.
a. family responsibilities
b. respect for people
c. religion
d. core customs

D

The 'Tripartite' part of the Tripartite Declaration of Principles Concerning Multinational Enterprises and Social Policy refers to critical cooperation necessary from all of the following except:
a. governments.
b. employers' and workers' organizations.
c

B

The Title VII of the _____, passed in 1964, created the prohibited classes of discrimination.
a. International LabourAct
b. United States Civil Rights Act
c. Equal Employment Opportunity CommissionAct
d. Uniform Employment Termination Act

A

Which of the following is discrimination against those traditionally considered to be in power or the majority?
a. Reverse discrimination
b. Affirmative action
c. Inverse discrimination
d. Backward discrimination

B

. Which of the following is an example of reverse discrimination in America?
a. An African-American interviewer rejects another African-American based on ethnicity.
b. A female interviewer rejects a male interviewee because of gender.
c. A white interview

D

An organization, in an attempt to avoid discrimination suits filed against it, intentionally hires a lot of African-American women, and a few disabled people. Which of the following is most likely to occur?
a. The performance of the organization will incr

D

Which of the following refers to a policy or a program that tries to respond to instances of past discrimination by implementing proactive measures to ensure equal opportunity today?
a. Gentrification
b. Bully Broads
c. Just cause
d. Affirmative action

C

All of the following are ways through which affirmative action can arise at the workplace except:
a. through legal requirements.
b. through judicial affirmative action.
c. consultant based affirmative action.
d. voluntary affirmative action plans.

B

The law relating to affirmative action appliesonly to about 20 percent of the workforcewho are subject to Executive Order 11246,which requires affirmative action efforts to ensure equal opportunity. Which of the following is required by courts in order to

D

Which of the following affirmative action plans would include training plans and programs, focused recruiting activity, or the elimination of discrimination?
a. Quasi-affirmative action
b. Executive affirmation action
c. Judicial affirmative action
d. Vol

C

A claim which states that people who 'pay' for wrongs are unfairly burdened and should not bear the responsibility for the acts of others, is opposing _____.
a. reverse discrimination
b. judicial activity within organizations
c. affirmative action
d. auth

D

Two general and connected understandings of privacy have been identified: privacy as a right to be 'left alone' within a personal zone of solitude, and privacy as the:
a. right to understand one's emotions.
b. right to understand others' emotions.
c. righ

B

Values that are fundamental across culture and theory are called:
a. authentic norms.
b. hypernorms.
c. ethnocentric norms.
d. executive norms.

C

According to Donaldson and Dunfee, examples of hypernorms include the right to:
a. a safe workplace.
b. public information.
c. personal freedom.
d. vote.

D

According to Donaldson and Dunfee, the right to _____ is an example of a hypernorm.
a. a safe workplace.
b. public information.
c. vote
d. physical movement

C

Which of the following is true about privacy?
a. The right to privacy is not restricted by any social contract.
b. Privacy cannot be legally protected by common law.
c. Privacy can be legally protected by the constitution.
d. The right to privacy is unrel

B

_____ refers to the body of law comprised of the decisions handed down by courts, rather than specified in any particular statutes or regulations.
a. Statutory law
b. Common law
c. Civil law
d. Constitutional law

C

The Constitution's Fourth Amendment protection against an unreasonable search and seizure governs only the public sector workplace because:
a. unions exist only in public sector organizations.
b. the private sector does not cater to appeals of unreasonabl

A

Which of the following prohibits the "interception" or unauthorized access of stored communications?
a. The Electronic Communications Privacy Act of 1986
b. The Computer Security Act of 1987
c. The Privacy Act of 1974
d. The Computer Fraud and Abuse Act o

D

. The impact of the ECPA is to punish electronic monitoring only by third parties and not by employers because courts have ruled that "interception" applies only:
a. to access of messages by employers.
b. when monitoring is done without consent.
c. when e

B

Which of the following statements about the Electronic Communications Privacy Act of 1986 is true?
a. Courts have ruled that the "interception" of stored communications applies only to messages that have actually reached company computers.
b. A firm that

C

Name the legalviolation that occurs when someone intentionally interferes on the private affairs ofanother when the interference would be "highly offensive to a reasonable person."
a. Calumny
b. Vilification
c. Intrusion into seclusion
d. Defamation

A

If the basis for finding an invasion of privacy is often the employee's legitimate and reasonable expectation of privacy, then a situation where there is no real expectation of privacy occurs when the:
a. employee has actual notice.
b. employer is covered

D

Which of the following states in the U.S. requires employers to notify workers when they are being monitored?
a. Ohio
b. Illinois
c. Michigan
d. Connecticut

A

Which of the following is true about the European Union's Directiveon Personal Data Protection?
a. It prohibits EU firms from transferring personal information to a non-EU country unless that country maintains "adequate protections" of its own.
b. It is a

A

The U.S. Department of Commerce negotiated a Safe Harbor exception:
a. becausethe U.S. would not qualify as having adequate protection.
b. so that the European Union could get access to personal information.
c. so that each European country could maintain

C

According to economist Antonio Argandona, which of the following elements would include issues relating to company secrets, espionage, and intelligence gathering?
a. Truthfulness and accuracy
b. Respect for property and safety rights
c. Respect for privac

C

. Which of the following is true about technology and its usage?
a. It prohibits access to any information that was once easily accessible.
b. It ensures that the lines between people's personal lives and professional lives are not blurred.
c. It tends to

A

When we do not get to know someone because we do not have to see that person in order to do our business, we often do not take into account the impact of our decisions on him or her. This is the challenge posed by the:
a. facelessness that results from th

D

Which of the following is an advantage of monitoring?
a. Monitoring tends to promote effective performance since it reduces employees' stress and pressure.
b. Monitoring tends to create a friendly workplace without any suspicions.
c. Monitoring increases

C

The desire to place workers in appropriate positions, to ensure compliance with affirmative action requirements, or to administer workplace benefits is sufficient reason for employers to undertake employee _____.
a. training
b. orientation
c. monitoring
d

B

Which of the following is an advantage of drug testing?
a. Drug testing does not present any ethical challenges for employers.
b. Drug testing tends to provide a productivity benefit for companies.
c. There are no possibilities of incorrect presumptions i

A

From a utilitarian perspective, individual rights to privacy or right to control information about oneself may be outweighed in cases where:
a. public safety is at risk.
b. the employee compensation package is very high.
c. the proposed benefit to the emp

D

Which of the following acts stipulates that employers cannot use"protected health information" in making employment decisions without priorconsent?
a. The Personal Information Protection and Electronic Documents Act
b. The Federal Information Security Man

D

Identify the situation prohibited by The Genetic Information Non-Discrimination Act of 2008 (GINA).
a. An employer releases genetic information about an employeein response to a court order.
b. An employer releases genetic information about an employee in

A

Which of the following statements about the GeneticInformation Non-Discrimination Act of 2009 (GINA) is true?
a. Under GINA, an employer can collectgenetic information in order tomonitor the biological effects of toxic substances in the workplace.
b. Unde

A

Which of the following is a disadvantage of monitoring?
a. Monitoring tends to constrain effective performance since it can cause increased stress and pressure.
b. Monitoring prevents employers from managing their workplaces to place workers in appropriat

B

Which of the following statements is true about monitoring?
a. It reduces workers'right to control their environment without reducing the level of worker autonomy and respect.
b. It has the potential to cause physical disorders such as carpaltunnel syndro

A

Which of the following is true about the "Hawthorne Effect"?
a. According to the Hawthorne effect, workers' productivity improves when they are singled out.
b. According to the Hawthorne effect, workers show poor performance when they know that they are b

C

Employees will be on their best behavior during phone calls if they know that those calls are being monitored. Identify this effect of employee monitoring.
a. The placebo effect
b. The observer-expectancy effect
c. The Hawthorne effect
d. The halo effect

D

An employer can resolve the concerns related to the "Hawthorne Effect" through:
a. notified, random monitoring.
b. consented, selective monitoring.
c. selective, notified monitoring.
d. random, anonymous monitoring.

C

If an employee's weight is evidence of or results from a disability, the employermust explore whether the worker is otherwise qualified for the position.Under theAmericans with Disabilities Act (ADA), the individual is considered "otherwise qualified" if

A

Some companies have a(n)_____ policy under which an employer refuses to hire orterminates a worker on the basis of the spouse's working at the same firm.
a. anti-nepotism
b. conflict-of-interest
c. anti-fraternization
d. antitrust

B

Which of the following about the regulation of off-work acts in the U.S. is true?
a. Many states ban discrimination on the basis of weight.
b. Laws that protect employees against discrimination based on marital status exist in just under half of the state

D

Identify the policy under which an employer refuses to hire or terminatesa worker whose spouse works at a competing firm.
a. Anti-nepotism policy
b. Antitrust policy
c. Affirmative action policy
d. Conflict-of-interest policy

B

Most statutes or common law decisions provide for employer defenses for all of the following EXCEPT:
a. those rules that are reasonable and rationally related to the employment activities of a particular employee.
b. those rules that treat one group diffe

A

Identify the act that expanded states' rights with regardto Internet surveillance technology, including workplace surveillance, and amendedthe Electronic Communications Privacy Act.
a. The USA PATRIOT Act
b. The Sarbanes-Oxley Act
c. The Federal Informati

C

Which of the following acts grants access to sensitivedata with only a court order rather than a judicial warrant and imposes or enhancescivil and criminal penalties for knowingly or intentionally aiding terrorists?
a. The Federal Information Security Man

B

Title II of the USA PATRIOT Act provides roving surveillance authority under the:
a. Federal Information Security Management Act to track website access of individuals.
b. Foreign Intelligence SurveillanceAct to track individuals.
c. Electronic Communicat

B

Which of the following is true about the USA PATRIOT Act?
a. The act does not grant access to sensitive data with only a court order.
b. The act expands states' rights with regard to Internet surveillance technology.
c. The act excludes provisions designe

C

. Which of the following is a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders?
a. Procuring
b. Branding
c. Marketing
d. Copy

C

Which of the following is one of the "Four Ps" of marketing?
a. Purpose
b. Planning
c. Promotion
d. People

B

The _____ ethical tradition would see a simple situation of an agreement for an exchange between two parties asupholding respect for individuals by treatingthem as autonomous agents capable of pursuing their own ends.
a. role-based
b. rights-based
c. rule

A

19. The _____ ethical tradition would take the two parties' agreement as evidence that both are better off than they were prior to the exchange and thus conclude that overall happiness has been increased by any exchange freely entered into.
a. utilitarian

C

. The simple situation in which two parties come together and freely agree to an exchange is ethically legitimateonly prima faciebecause:
a. investigation proves that a simple exchange does not involve unethical situations.
b. a simple exchange involves t

A

While approaching an ethical issue in marketing, the rights-based tradition would:
a. ask to what degree the participants are respected as free and autonomous agents rather than treated simply as means to the end of making a sale.
b. calculate the benefit

B

While approaching an ethical issue in marketing, the utilitarian tradition would want to know:
a. the degree to which individuals freely participate in an exchange.
b. the degree to which the transaction provided actual as opposed to merely apparent benef

D

A consumer's consent to purchase a product is notinformed if that consumer is:
a. unwilling to listen to the product details from the sales person.
b. injured after using the product and filed a product liability suit.
c. asked to buy a product without a

A

Greater consumption is likely to lead to unhappiness, a condition termed _____.
a. affluenza
b. caveat emptor
c. influenza
d. insomnia

D

The legal doctrine of strict liability is ethically controversial because:
a. it assumes informed consent of the buyer and therefore it is assumed to be ethically legitimate.
b. it allows consumers to assume that products are safe for use.
c. it holds tha

C

Identify the approach that assumes that every purchase involves the informed consent of the buyer and is ethically legitimate.
a. Res ipsa loquiturapproach
b. Prima facie approach
c. Caveat emptor approach
d. Caveat venditor approach

B

In selling a product, a business offers tacit assurances that the product is reasonably suitable for its purpose. The law refers to this as the:
a. doctrine of caveat emptor.
b. implied warranty of merchantability.
c.doctrine of caveat lector.
d. implied

D

Which of the following statements is correct about the implied warranty of merchantability?
a. It refers to the caveat emptor approach.
b. This standard shifts the burden of proof from producers to consumers.
c. Most courts allow a business to completely

C

The implied warranty of merchantability shifts the burden of proof from:
a. producers to consumers.
b. producers to suppliers.
c. consumers to producers.
d. suppliers to consumers.

B

A business will seek to limit its liability by explicitly disowning any promise or warranty by:
a. using the caveat venditor principle.
b. issuing a disclaimer of liability.
c. completely disclaiming the implied warranty of merchantability.
d. denying res

A

How did the use of an implied warranty of merchantability solve a set of problems with the contract law approach to product liability?
a. Consumers do not need complex contracts in order to protect themselves from all possible harms that products might ca

B

Which of the following is true about tort law?
a. Tort law holds that the only duties that a person owes are those that have been explicitly promised to another party.
b. Tort law holds manufacturers accountable in cases when consumers are injured by prod

B

Which of the following statements is true about negligence?
a. It is not a central component of tortlaw.
b. One can be negligent by doing something that one should not.
c. One cannot be held negligent by failing to do something that one should have done.

C

Which of the following is true about strict product liability?
a. The United States has adopted clear strict liability standards.
b. It holds that the government must pay consumers where neither the producer nor the consumer is at fault.
c. It insures tha

A

Society creates a strong incentive for businesses to produce safer goods and services by holding them responsible for any harm their products cause. This claim supports the:
a. strict product liability standard.
b. actual foreseeability standard.
c. reaso

D

Which of the following statements is true about manipulation?
a. It involves total control of direction or management.
b. A person cannot manipulate someone without deception.
c. It implies guiding people's behavior with their conscious understanding.
d.

C

Which of the following ethical traditions would have the strongest objections to manipulation?
a. Economic
b. Virtue-based
c. Principle-based
d. Utilitarian

C

Which of the following statements about manipulation would a strong believer of the principle-based ethical tradition most likely support?
a. Cases of paternalistic manipulation, in which someone is manipulated for their own good, are acceptable.
b. Manip

A

Marketing practices targeted at elderly populations for goods such as supplemental health insurance, funerals etc. are subject to criticism because:
a. that population is vulnerable.
b. interest gained on such investments are not highly profitable.
c. the

B

According toeconomist John Kenneth Galbraith, advertising and marketing were creating the very consumer demand that production then aimed to satisfy. The assertion that consumer demand relies upon what producers have to sell is termed:
a. the Hawthorne ef

D

Identify one of the implications of the "dependence effect."
a. Unless a seller explicitly warrants a product as safe,buyers are liable for any harm they suffer.
b. Advertising and marketing create consumer wants that support the entire economy.
c. The co

B

Which of the following do advertising and other marketing practices violate by creating consumer wants?
a. Right to free speech
b. Consumer autonomy
c. Right to privacy
d. Consumer demand

D

. How does advertising distort the economy?
a. It manipulates prices for promotion to gain a foothold in a market.
b. It results in supply becoming a function of demand.
c. It is not able to create nonautonomous desires.
d. It creates irrational and trivi

A

Consumer vulnerability occurs when:
a. a person has an impaired ability to make an informed consent to the market exchange.
b. a person is susceptible to injuries from falls and medical emergencies.
c. the consumer is treated as an end in itself.
d. the l

C

Which of the following is an example of consumer vulnerability?
a. Elderly people susceptible to expensive health care bills
b. Poor people susceptible to bankruptcy
c. Children susceptible to any bright, attractive items of no practical value
d. Single w

B

General vulnerability occurs when:
a. a person has an impaired ability to make an informed consent to the market exchange.
b. a person is susceptible to some specific physical, psychological, or financial harm.
c. children are shown commercials in and aro

D

Consumers are vulnerable when they are not aware that they are subject to a marketing campaign. This type of campaign is called:
a. imminent marketing.
b. word-of-mouth marketing.
c. network marketing.
d. undercover marketing.

B

Which of the following statements is true about stealth marketing?
a. It occurs when consumers are aware that they are subject to a marketing campaign.
b. It refers to situations where consumers are subject to directed commercial activity without their kn

A

Marketing experts consider stealth marketing extraordinarily effective because:
a. a consumer does not question the message as she might challenge a traditional advertising campaign.
b. the consumer's guard is not down while accepting the message.
c. cons

B

An employer is held liable for damages caused by an accident involving an employee driving the company car on company business. Identify the law underlying this decision.
a. The doctrine of caveat emptor
b. The doctrine of respondent superior
c. Implied w

C

UniCo�a multinational corporation that specializes in designing, developing, and selling consumer electronics�outsources manufacturing products to a third-world country company. Human rights activists have criticized UniCofor operating in humane sweatshop

C

Which of the following is an often overlooked aspect of advertising?
a. Pricing function
b. Evaluation function
c. Educational function
d. Watchdog function

A

. Identify the practice of promoting a product by misleading consumers about the environmentally beneficial aspects of the product.
a. Greenwashing
b. Redlining
c. Gentrification
d. Greenskinning

D

Labeling products with such terms as "environmentally friendly," "natural," "eco," "energy efficient," "biodegradable" and the like can help promote products that have little or no environmental benefits. This practice is known as:
a. greenskinning.
b. re

B

. Which of the following refers to the growing marketing practice of taking back one's products after their useful life?
a. Reintermediation
b. Reverse channels
c. Disintermediation
d. Forward integration

B

The Triple Bottom Line approach involves measuring business success of sustainable businesses and sustainable economic development in terms of:
a. economic, legal, and environmental sustainability.
b. economic, ethical, and environmental sustainability.
c

D

Knowing what the future must be, creative businesses then look backwards to the present and determine what must be done to arrive atthat future. This process is known as:
a. backward integration.
b. forecasting.
c. forward integration.
d. backcasting.

C

Which of the following is true of the conservation movement?
a. It advocated that the natural world should not be used as a capital resource.
b. It regarded natural resources as being able to provide an inexhaustible supply of material.
c. It recommended

C

The conservation movement:
a. regarded natural resources as being able to provide an inexhaustible supply of material.
b. advocated that the natural world should not be used as a capital resource.
c. argued that the natural world was valued as a resource,

A

Reminiscent of the _____ tradition, it is suggested that some animals have the cognitive capacity to possess a conscious life of their own and people have a duty not to treat these animals as mere objects and means to their own ends.
a. Kantian
b. virtue

C

Which of the following is true of a market-based approach to resolving environmental challenges?
a. It is critical of the narrow, philanthropic view of corporate social responsibility (CSR).
b. It asserts that limited resources should not be distributed i

D

Which of the following is involved in environmental problems according to the market-based approach to resolving environmental challenges?
a. Lack of knowledge of producing renewable resources
b. Inability of businesses to produce and sell limited resourc

A

Which of the following was suggested by William Baxter?
a. An optimal level of pollution can be achieved through competitive markets.
b. Society canstrive for pure air and water at a very low cost.
c. From astrict market economic perspective, resources ar

A

In economic terms, all resources:
a. are infinite because they can be replaced by substitutes.
b. are distributed fairly by the government.
c. can be made available everywhere.
d. are distributed efficiently in the market.

B

Which of the following explains the statement "All resources are fungible"?
a. It means that all resources can be regulated by the government.
b. It means that all resources can be replaced by substitutes.
c. It means that all resources cannot be duplicat

A

Which of the following is true about the market-based approach to environmental responsibility?
a. Market failure occurs when no markets exist to create a price for important social goods.
b. Free market exchanges can guarantee optimal results for address

B

Which of the following ways can lead market failure to serious environmental harm?
a. Creating abundantmarkets to create a price for important social goods
b. Making no distinction between individual decisions and group consequences
c. Inexistence of exte

D

Which of the following causes inadequacy in ad hoc attempts�internalizing external costs and assigning property rights to unowned goods such as wild species�to repair market failures?
a. The backcasting problem
b. The fungibility problem
c. The biomimicry

C

Markets can work to prevent harm only through information supplied by the existence of market failures. This is better known as the:
a. biomimicry effect.
b. backcasting problem.
c. first-generation problem.
d. primary market effect.

A

Before environmental legislation was enacted, the primary legal avenue open for addressing environmental concerns was:
a. tort law.
b. international law.
c. public law.
d. criminallaw

C

Which of the following is true about the regulatory approach to environmental challenges?
a. It overestimates the influence that business can have on establishingthe law.
b. The government established regulatory standards to offer compensation after theoc

A

Which of the following is a problem associated with the regulatory approach to environmental challenges?
a. The regulatory model assumes that economic growth is environmentally and ethically benign.
b. If people rely on the law to protect the environment,

A

Which of the following is true about the concept of sustainable development and sustainable business practice?
a. It suggests a radically new vision for integrating financial and environmental goals, compared to the growth model that preceded it.
b.Accord

B

The three goals of sustainable development that include economic, environmental, and ethical sustainability are referred to as the:
a. tripartite goals.
b. three pillars of sustainability.
c. three pronged charter.
d.shoulders of sustainability

D

Which of the following was charged with developing recommendations for paths toward economic and social development that would not achieve short-term economic growth at the expense of long-term environmental andeconomic sustainability?
a. The Bluewash Com

C

Which of the following is true of the Brundtland Commission?
a. It was named as the Brundtland Commission after the place in Norway, where the summit was conducted for the first time.
b. It was charged with developing recommendationsfor paths toward econo

A

Which of the following models does not differentiate natural resources from the other factors of production and does not explain the origin of resources?
a. The circular flow model
b. The triple bottom line model
c. The bilinear model
d. The sustainabilit

C

Which of the following is true of the circular flow model?
a. It differentiates natural resources from the other factors of production.
b. It suggests that to keep up with the economy, the population must grow.
c. It treats economic growth as both the sol

B

The possibility that the economy cannot grow indefinitely is simply not part of the:
a. three pillars of sustainability approach.
b. circular flow model.
c. triple bottom line approach.
d. bilinear model.

B

According to economist Herman Daly, neoclassical economics, with its emphasis on economic growth as the goal of economic policy will inevitably fail to meet these challenges:
a. if it suggests that the population of the world needs to be controlled.
b. un

A

According to the _____ law of thermodynamics (the conservation of matter/energy), neither matter nor energy can truly be "created," it can only be transferred from one form to another.
a. first
b. second
c. third
d. fourth

D

The model of economy, in consistency with the second law of thermodynamics, implies that:
a. the amount of re-usable products decreases with an increase in production.
b. the economy exists beyond a finite biosphere.
c. wastes are not produced at each sta

C

Over the long term, resources and energy cannot be used, nor waste produced, at rates at which the biosphere cannot replace or absorb them without jeopardizing its ability to sustain life. These are what Herman Daly calls the:
a. "economic limitations."
b

B

Which of the following is true of the sustainability model in terms of environmental responsibilities?
a. Sustainability need not be a long-term strategy.
b. The huge unmet market potential among the world's developing economies can only be met in sustain

C

Which of the following is true of the sustainability model in terms of environmental responsibilities?
a. Sustainability reduces competitive advantage.
b.Sustainability is not a prudent long-term strategy.
c. Sustainability is a good risk management strat

B

Estimates suggest that with present technologies, businesses can readily achieve at least a fourfold increase in efficiency, and perhaps as much as a tenfold increase. This can be achieved through the first principle of sustainability known as:
a. biomimi

A

Which of the following recommends cycling the waste of one activity into the resource of another?
a. The biomimicry principle
b. The cradle-to-grave model
c. The cradle-to-cradle model
d. The eco- efficiency principle

A

. "Closed-loop" production seeks to integrate what is presently waste, back into production. In an ideal situation, the waste of one firm becomes the resource of another, and such synergies can create eco-industrial parks. This principle is often referred

B

Which of the following suggests that a business takes resources, makes products out of them, and discards whatever is left over?
a. The cradle-to-grave model
b. The take-make-waste approach
c. The Cradle-to-cradle model
d. The eco-efficiency principle

A

Which of the following holds that a business is responsible for the entire life of its products, including the ultimate disposal even after the sale?
a. The cradle-to-grave model
b. The take-make-wasteappoach
c. The cradle-to-cradle model
d. The eco-effic

C

Cradle-to-grave and cradle-to-cradle responsibilities are part of the _____ sustainable business principle.
a. eco-efficiency
b. backcasting
c. biomimicry
d. take-make-waste

D

Which of the following would hold a business liable for groundwater contamination caused by its products even years after they had been buried in a landfill?
a. "Backcast" model
b. "Eco-efficiency" model
c. "Take-make-waste" model
d. "Cradle-to-grave" mod

B

Which of the following holds that a business should be responsible for incorporating the end results of its products back into the productive cycle?
a. Backcasting
b. Cradle-to-cradle
c. Take-make-waste
d. Cradle-to-grave

C

Which of the following responsibilities entail an incentive to redesign products so that they can be recycled efficiently and easily?
a. Cradle-to-grave
b. Backcasting
c. Cradle-to-cradle
d. Eco-efficiency

A

Which of the following is true of a service-based economy?
a. A service-based economytends to the consumers' demand for clothes cleaning, floor covering, illumination, entertainment, and so forth.
b. A service-based economy interprets consumer demand as a

C

Which of the following is true of gatekeepers?
a. They are not bound to ethical duties.
b. Investors and boards are examples of gatekeepers.
c. They serve as intermediaries between market participants.
d. They are not responsible for ensuring conformance

A

Which of the following rely on gatekeepers for fair and effective functioning of economic markets?
a. Bankers
b. Auditors
c. Accountants
d. Financial analysts

A

The function of auditors as gatekeepers is to:
a. verify a company's financial statements so that investors' decisions are free from fraud and deception.
b. evaluate a company's financial prospects or creditworthiness, so that banks and investors can make

D

Identify the gatekeepers who evaluate a company's financial prospects or credit worthiness, so that banks and investors can make informed decisions.
a. Investors
b. Attorneys
c. Auditors
d. Analysts

B

Identify the gatekeepers who ensure that decisions and transactions conform to the law.
a.Accountants
b. Attorneys
c. Auditors
d. Analysts

C

Identify the gatekeepers who function as intermediaries between a company's stockholders and its executives.
a. Accountants
b. Auditors
c. Board of directors
d. Financial analysts

B

Which of the following gatekeepers guarantee that executives act on behalf of the stockholders' interests?
a. Accountants
b. Board of directors
c. Auditors
d. Analysts

C

. A _____exists where a person holds a position of trust that requires that he exercise judgment on behalf of others, but where his personal interests conflict with those of others.
a. duty of care
b. community of interest
c. conflict of interest
d. duty

D

A professional is said to have _____ if he has a professional and ethical obligation to clients rooted in trust that overrides his personal interests.
a. statutory duties
b. executive rights
c. creditor claims
d. fiduciary duties

D

Which of the following statements is true of conflicts of interests?
a. Self-interest makes it easy for individuals to fulfill their gatekeeper duties.
b. Legal protection cannot shield professionals from conflicts of interests.
c. Cross-selling of consul

C

Which of the following statements is true of the Sarbanes-Oxley Act?
a. It is also known as the Financial Services Modernization Act of 2002.
b. It is enforced by the Financial Accounting Standards Board.
c. It was passed by Congress because corporate boa

A

Which provision of the Sarbanes-Oxley Act prohibits various forms of professional services that are determined to be consulting rather than auditing?
a. Section 201
b. Section 301
c. Section 307
d. Section 404

D

Section 201 of the Sarbanes-Oxley Act addresses the:
a. rules of professional responsibility for attorneys.
b. codes of ethics for senior financial officers.
c. management assessment of internal controls.
d. services outside the scope of auditors.

B

Which of the following provisions of the Sarbanes-Oxley Act mandates majority of independents on any board and total absence of current or prior business relationships?
a. Section 407
b. Section 301
c. Section 406
d. Section 307

A

Section 307 of the Sarbanes-Oxley Act addresses the:
a. rules of professional responsibility for attorneys.
b. codes of ethics for senior financial officers.
c. management assessment of internal controls.
d. services outside the scope of auditors.

D

Which of the following provisions of the Sarbanes-Oxley Actrequires lawyers to report concerns of wrongdoing if not addressed?
a. Section 407
b. Section 301
c. Section 406
d. Section 307

C

Section 404 of the Sarbanes-Oxley Act addresses the:
a. rules of professional responsibility for attorneys.
b. codes of ethics for senior financial officers.
c. management assessment of internal controls.
d. services outside the scope of auditors

B

Section 406 of the Sarbanes-Oxley Act addresses the:
a.rules of professional responsibility for attorneys.
b. codes of ethics for senior financial officers.
c. management assessment of internal controls.
d. services outside the scope of auditors.

C

. _____ of the Sarbanes-Oxley Act addresses the disclosure of audit committee financial expert.
a. Section 404
b. Section 301
c. Section 407
d. Section 307

B

Which of the following is a criticism of the Sarbanes-Oxley Act?
a. It excludes requirements for certification of documents by officers.
b. It imposes extraordinary financial costs on the firms.
c. It does not require lawyersto report concerns of wrongdoi

A

Identify the external mechanism that seeks to ensure ethical corporate governance.
a. The Sarbanes-Oxley Act
b. The COSO framework
c. The European Union 7th Directive
d. The European Union 4th Directive

C

Which of the following is an internal mechanism that seeks to ensure ethical corporate governance?
a. European Union 8th Directive
b. The Sarbanes-Oxley Act
c. The COSO framework
d. European Union 7th directive

C

Which of the following statements is true of the Committee of Sponsoring Organizations?
a. It improves financial reporting through a combination of controls and governance standards called the External Control�Integrated Framework.
b. It is an external me

D

Which of the following elements of COSO sets the tone or culture of a firm?
a. Ongoing monitoring
b. Information and communications
c. Risk assessment
d. Control environment

C

Which of the following elements of COSO refers to policies and procedures that support the cultural issues such as integrity, ethical values, competence, philosophy, and operating style?
a. Ongoing monitoring
b. Information and communications
c. Control a

B

Identify the COSO element that is directed at supporting the control environment through fair and truthful transmission of facts.
a. Risk assessment
b. Information and communications
c. Control activities
d. Ongoing monitoring

D

Which of the following COSO elements provides assessment capabilities and uncovers vulnerabilities?
a. Risk assessment
b. Information and communications
c. Control activities
d. Ongoing monitoring

D

According to the COSO framework, which of the following is true of internal control?
a. It is not geared to the achievement of objectives in overlapping categories.
b. It can provide absolute assurance to an entity's board.
c. It is an end in itself, not

B

Which of the following is true of the COSO controls and the Sarbanes-Oxley requirements?
a. They result in less transparency in ensuring ethical corporate governance.
b. They encourage greater accountability for financial stewardship.
c. They result in a

A

Which of the following legal duties of board members suggests that a director does not need to be an expert or actually run the company?
a. Duty of care
b. Duty of good faith
c. Duty of candor
d. Duty of loyalty

B

Identify the duty of obedience according to which board members should strive toward corporate objectives, and are not permitted to act in a way that is inconsistent with the central goals of the organization?
a. Duty of care
b. Duty of good faith
c. Duty

D

Which of the following duties of board members suggests that conflicts of interest are always to be resolved in favor of the corporation?
a. Duty of care
b. Duty of good faith
c. Duty of candor
d. Duty of loyalty

A

Which of the following is true of Federal Sentencing Guidelines for boards?
a. The board must be knowledgeable about the objectives and process of the ethics program rather than simply the mere contents of a training session.
b. The board should avoid exe

C

Which of the following are additional ethical responsibilities board members should have beyond legal obligations?
a. They should maintain closed conversations within the firm.
b. They should refrain from providing oversight.
c. They should be critical in

C

Tom, an employee of Electronixx, adjusted credits and debits of the company's ledger to show high profits. He also created false documents, underreported his income, and evaded paying taxes for a year. Tom can be convicted for _____.
a. unethical insider

D

According to Kevin Bahr, which of the following is a cause for conflicts in the financial markets?
a. The independence and lack of expertise of audit committees
b. The presence of shareholder activism
c. Long-term executive greed versus short-term shareho

B

Which of the following is true of excessive compensation packages?
a. When executive compensation is tied to stock price, executives have a strong incentive to focus on long-term corporate interests rather than short-term stock value.
b. When huge amounts

A

Which of the following scenarios gives rise to conflicts of interests in corporate governance?
a. Senior executives determining the compensation received by board members
b. Board members hand-selecting employees in their company
c. A CEO not chairing the

C

Which of the following exemplifies insider trading?
a. Underreporting income
b. Falsifying account documents
c. Misappropriation of proprietary knowledge
d. Illegally evading income taxes

A

Sara, an employee of PentaComp Inc., passed on confidential information of her company to her friend. Her friend benefitted from selling PentaComp's stock based on the information shared by Sara. In this scenario, Sara can be convicted of _____.
a. inside