978-0133506327 Chapter 02 Part 2

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40) ________ is any unwelcome sexual advance, request for sexual favors, and other verbal or

physical sexual conduct made explicitly or implicitly as a condition of employment.

A) Hostile harassment

B) Quid pro quo harassment

C) Non-employee sexual harassment

D) Sexual harassment

Topic: Sexual Harassment

AACSB: Ethical Reasoning

41) When dealing with AIDS in the workplace, small business owners should:

A) treat AIDS-positive employees as they would any other employees with life threatening

illnesses.

B) make certain their employment policies comply with local regulations but not worry about

federal regulations.

C) require HIV screening as part of the hiring process.

D) inform all employees when someone tests HIV positive.

Topic: HIV/AIDS

AACSB: Ethical Reasoning

42) A company’s AIDS policy should include:

A) an open communication policy where all employees will be informed if someone becomes ill.

B) a continuation of employee benefits as any other employee would have.

C) process for dismissal of the affected employee.

D) All of these

Topic: HIV/AIDS

AACSB: Ethical Reasoning

43) Sexual harassment is a serious problem in the workplace and:

A) about 40% of all sexual harassment in the workplace is done by females to males.

B) is especially bad in small businesses.

C) employers are only liable if the sexual harassment is “quid pro quo.”

D) more than 80% of the charges are brought by women.

Topic: Sexual Harassment

AACSB: Ethical Reasoning

44) Marian works in an office where the male employees constantly tell sexually oriented jokes,

some keep suggestive pictures on the walls of the cubicles, and several men whistle at and make

lurid comments to women employees in the lunch room. This is an example of what type of

sexual harassment?

A) Quid pro quo

B) Hostile environment

C) Harassment by a third party

D) None of these

Topic: Sexual Harassment

AACSB: Reflective Thinking

45) Regarding sexual harassment, employers should realize that they:

A) can be held responsible for third-party sexual harassment.

B) are protected from liability if they are aware of a harassment problem, even if they don’t take

action.

C) are not liable for sexual harassment in the workplace if they have a formal policy against it.

D) are not liable if they didn’t know it was taking place, even if one could reasonably expect

them to know.

Topic: Sexual Harassment

AACSB: Multicultural and Diversity

46) A ________ is one in which continuing unwelcome sexual conduct in the workplace

interferes with an employee’s work performance.

A) hostile environment

B) illegal environment

C) sexual environment

D) None of the above

Topic: Sexual Harassment

AACSB: Multicultural and Diversity

47) In the recent Supreme Court ruling in Burlington Industries vs. Ellerth, the court held:

A) employers were no longer liable for third-party sexual harassment.

B) there does not have to be a superior-subordinate relationship for harassment to occur.

C) complainants must prove intent to harass on the part of the harasser.

D) employers are automatically liable if supervisors take tangible employment action toward the

person they are harassing.

Topic: Harassment by Nonemployees

AACSB: Multicultural and Diversity

48) If a manager is made aware of a sexual harassment problem, he/she should:

A) immediately fire the person accused of the harassment.

B) ask the complainant to approach the harasser and try to work it out.

C) listen carefully and investigate quickly and thoroughly.

D) make all and any findings public to protect all parties.

Topic: Harassment by Nonemployees

AACSB: Multicultural and Diversity

49) The ________ suggests that the channels of communication between companies and their

customers run in both directions.

A) right to education

B) right to be heard

C) right to know

D) right to choice

Topic: Right to be Heard

AACSB: Communication

50) When it comes to monitoring electronic communication, especially e-mail:

A) 80% of all organizations read employees’ e-mail.

B) supervisors may not read employees’ e-mail without cause.

C) only 15% of all companies have policies governing the use of e-mail.

D) most employees don’t know employers may read their e-mail without permission.

Topic: Privacy

AACSB: Communication

51) Businesses have which of the following responsibilities to their customers?

A) The right of choosing the products they buy and use

B) Properly managing a diverse workforce

C) Reducing packaging, reusing material, and recycling when possible

D) Earning a profit while being socially responsible

Topic: Businesses’ Responsibility to the Customers

AACSB: Ethical Reasoning

52) The Audi 5000 sedan was reported to have sudden, violent acceleration when the

transmission was put into drive. Audi first blamed the condition on drivers who didn’t know how

to operate the transmission, but later was forced to recall the sedan and correct the transmission

problem. Audi violated which area of responsibility businesses have to their customers?

A) Dependable packaging

B) Product safety and quality

C) Truthful advertising

D) Investor confidence

Topic: Right to Safety

AACSB: Reflective Thinking

53) The advertisement and resulting product, “A psychically energized weight loss program,”

which turned out to be a book on how to achieve a positive mental attitude, violates which

responsibility to the customer?

A) The right to know

B) The right to safety

C) The right to be heard

D) the right to choose

Topic: Right to Know

AACSB: Reflective Thinking

54) Small businesses have a number of responsibilities to their investors including:

A) selling a high-quality product at a reasonable price.

B) observing all government requirements for product manufacture.

C) earning the lowest profits at the highest cost of production.

D) providing an attractive return on their investments.

Topic: Businesses’ Responsibility to Investors

AACSB: Reflective Thinking

55) E. F. Hutton and Co. was convicted of the violation of kiting laws. Check kiting is an illegal

practice involving the writing checks against money that has not arrived at the bank on which the

check is drawn. Doing this violated their business responsibility in terms of:

A) product quality.

B) the consumer’s right to know.

C) their investors.

D) the community.

Topic: Businesses’ Responsibility to Investors

AACSB: Ethical Reasoning

56) Citicorp was found guilty of violating parking laws. Parking involves complex shifts of

funds between countries to avoid the payment of taxes. Citicorp maintained two sets of financial

records for a parking scheme. These actions violate which area of business responsibility?

A) Investors

B) Consumers

C) Community

D) Product quality

Topic: Businesses’ Responsibility to Investors

AACSB: Ethical Reasoning

57) Barker Industries makes an annual donation of $100,000 to local charities, and allows its top

managers leaves of absence to serve charities involved in community service. What area of social

responsibility is Barker demonstrating?

A) Customers

B) Environment

C) Employees

D) Community

Topic: Businesses’ Responsibility to the Community

AACSB: Ethical Reasoning

58) Leonard Stern, the chairman of Hartz Mountain, was concerned and outraged at the condition

of New York City’s homeless living in shelters and welfare hotels, and was determined to help

them. Hartz Mountain backed loans for construction of clean, safe housing complexes, and

helped create social programs to help homeless families. These efforts by Hartz Mountain are an

example of a company’s social responsibility to:

A) consumers.

B) investors.

C) employees.

D) the community.

Topic: Businesses’ Responsibility to the Community

AACSB: Ethical Reasoning

59) An entrepreneur’s ________ and ________ influence the way she leads her firm through

every decision that is made; every policy written; and every action taken.

A) personal values; beliefs

B) management; family

C) management; finances

D) None of the above

Topic: Introduction

AACSB: Ethical Reasoning

60) Business ethics consist of:

A) the legal state that is embodied in the employment manual and policy and procedures.

B) the fundamental moral values and behavioral standards that form the foundation for the

people of an organization as they make decisions and interact with stakeholders.

C) the fundamental moral values and behaviors specifically for employees only.

D) None of the above

Topic: An Ethical Perspective

AACSB: Ethical Reasoning

61) Which of the following statements is correct?

A) Entrepreneurs must recognize that actions taken which conflict with society’s ethical

standards incur a very high price.

B) The reputation of a business can be harmed severely by the actions of a single employee.

Trust, once broken, is difficult to mend.

C) Customers are not likely to do business with a firm with whom they feel treated them in an

unethical fashion.

D) All of the above

Topic: Introduction

AACSB: Ethical Reasoning

62) A key determinant of ethical behavior is:

A) training.

B) law.

C) society.

D) All of the above

Topic: An Ethical Perspective

AACSB: Ethical Reasoning

63) Business ethics consist of the fundamental ________ values and behavioral standards that

form the foundation for the people of an organization as they make decisions and interact with

stakeholders.

A) religious

B) moral

C) societal

D) legal

Topic: An Ethical Perspective

AACSB: Ethical Reasoning

64) To create an environment for your people that facilitates ethical behavior, an entrepreneur

should:

A) set the tone and establish and enforce policies.

B) not need to educate.

C) punish whistle blowers.

D) All of the above

Topic: Why Ethical Lapses Occur

AACSB: Ethical Reasoning

65) The greater the reward or the smaller the penalty for unethical acts, the greater is the

probability that such behavior will occur. This refers to:

A) competitive pressures.

B) opportunity pressures.

C) globalization pressures.

D) personal pressures.

Topic: Opportunity Pressures

AACSB: Ethical Reasoning

66) Mary started her dot.com business in 2005. Recently, she hired Jackie as VP of Sales and

Marketing. As part of company policy, management was to give a blood test for verification of

AIDS or any drug abuse. When the results came back, Mary found out that Jackie had AIDS.

She was fired because the company does not tolerate having employees with AIDS.

A) Mary had the right to fire Jackie because it is her company and she can do whatever she

wants.

B) Mary should have consulted with an attorney to find a reason for firing Jackie.

C) Mary is in violation of discrimination laws.

D) Mary should have requested a blood test from everyone on a quarterly basis.

Topic: HIV/AIDS

AACSB: Reflective Thinking

67) Joan was hired as a sales representative. One of her responsibilities was to make outside

sales calls. Over the years, she got friendly with her customers. One of the customers has been

asking her for a date for a while and finally told her that she will not be getting any orders unless

she goes out with him.

A) This is in violation of sexual harassment and Joan can sue the customer.

B) This is in violation of sexual harassment and Joan can sue her employer.

C) This is not in violation of sexual harassment because the employer was not negligent.

D) This is not in violation of sexual harassment because Joan liked the customer very much.

Topic: Sexual Harassment

AACSB: Reflective Thinking

68) A few examples of small businesses giving back to the community are:

A) literacy programs.

B) food bank programs.

C) clean environment programs.

D) All of the above

Topic: Businesses’ Responsibility to the Community

AACSB: Ethical Reasoning

69) Polls show that increasingly the public is only holding companies accountable for the

economic impact of their decisions, not the ethical implications.

Topic: Introduction

AACSB: Ethical Reasoning

70) In most situations, the ethical dilemma is clear-cut and obvious.

Topic: An Ethical Perspective

AACSB: Ethical Reasoning

71) Stakeholders are the individuals and groups affected by a decision.

Topic: Introduction

AACSB: Ethical Reasoning

72) Ethics are the fundamental moral values and behavioral standards that form the foundation

for the people of an organization as they make decisions and interact with stakeholders.

Topic: An Ethical Perspective

AACSB: Ethical Reasoning

73) Small business owners seldom feel the pressure to violate ethical standards or to take

shortcuts in their careers.

Topic: An Ethical Perspective

AACSB: Ethical Reasoning

74) Fortunately, for businesses, it only takes a short time to build a reputation and it takes a long

time to destroy it.

Topic: An Ethical Perspective

AACSB: Ethical Reasoning

75) If a small business owner obeys the law, he/she can be certain that his/her actions are ethical.

Topic: An Ethical Perspective

AACSB: Ethical Reasoning

76) In terms of ethical behavior, the law merely establishes the minimum standard of behavior.

Topic: An Ethical Perspective

AACSB: Ethical Reasoning

77) The policies and procedures concerning ethical behavior in an organization serve as specific

guidelines for people as they make daily decisions.

Topic: An Ethical Perspective

AACSB: Ethical Reasoning

78) Building a reputation for ethical behavior typically takes a long time.

Topic: An Ethical Perspective

AACSB: Ethical Reasoning