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21) The ________ of an organization is the shared beliefs, values, and attitudes.
A) mission
B) culture
C) structure
D) vision
Learning Object.: 13.3 Develop your organizational culture.
AACSB Category: Analytical thinking
22) The Mission of an organization is the shared beliefs, values, and attitudes among
employees – also referred to as “how things are done around here.”
Learning Object.: 13.3 Develop your organizational culture.
AACSB Category: Analytical thinking
23) An organizational structure in which each person reports to one supervisor is called a
________ organization.
A) line
B) staff
C) flat
D) smooth
Learning Object.: 13.4 Determine your organizational structure.
AACSB Category: Analytical thinking
24) Which is not a good method for preventing legal complications when you must lay off or fire
employees?
A) Document your reasons for firing employees to prove that they did not perform their duties
correctly.
B) Have employees sign an agreement when they’re hired saying they will not sue if they are
ever laid off.
C) Provide severance, which is continued salary for a limited time, and make serious efforts to
help laid-off employees find a new job.
D) Have appropriate employees sign a no-compete agreement.
Learning Object.: 13.5 Understand the functions of human resources management.
AACSB Category: Analytical thinking
8
25) The department that hires, trains, and develops company employees is called ________.
A) employment office
B) hiring and firing
C) human resources
D) personnel
Learning Object.: 13.5 Understand the functions of human resources management.
AACSB Category: Analytical thinking
26) Which is not an effective way to protect yourself from a wrongful termination suit brought
by an employee whom you have fired?
A) I can keep documentation of all my reasons for firing the employee to prove that he/she
violated company ethics or was not performing his/her duties.
B) I can conduct regular reviews of employee performance.
C) I can give notification in writing and work on corrections.
D) I can hire a lawyer to protect me from lawsuits.
Learning Object.: 13.5 Understand the functions of human resources management.
AACSB Category: Analytical thinking
27) The act of Congress that requires employers to pay men and women the same amount for the
same work is called ________.
A) The Equal Opportunity Act
B) The Equal Pay Act
C) The Work Compensation Act
D) Anti-discrimination Act
Learning Object.: 13.5 Understand the functions of human resources management.
AACSB Category: Application of knowledge
28) As you hire employees, you will need to become aware of laws and taxes, including
________.
A) anti-discrimination laws
B) payroll taxes
C) Fair Labor Standards Act and The Equal Pay Act of 1963
D) All of the above.
Learning Object.: 13.5 Understand the functions of human resources management.
AACSB Category: Analytical thinking
9
29) Many companies staff their human resources organizations using a ratio of one HR executive
per ________ employees.
A) 50 -100
B) 50 – 200
C) 10 – 50
D) 250 – 1000
Learning Object.: 13.5 Understand the functions of human resources management.
AACSB Category: Application of knowledge
30) What is a wrongful termination suit? How can you protect your company from it?
Answer: A wrongful termination suit is a lawsuit that may be brought against a company by an
employee who thinks that he/she was fired without a just cause. An employee cannot be fired
just because his/her supervisor dislikes the employee. The company must prove that the
employee was failing at the job or violated company ethics. Ways to protect a company against
wrongful termination suits include:
1) Conduct regular employee performance reviews. Have each employee read and sign his/her
2) If an employee is violating rules, notify him or her in writing (and keep a copy for your
records). If things still do not improve, and you have to let the employee go, you will have proof
3) If employees must be laid off because business is slow, offer them severance, which is
continued salary for a limited time. Make serious efforts to help them find a new job.
Learning Object.: 13.5 Understand the functions of human resources management.
Learning Object.: 13.6 Pursue ethical leadership to build an ethical organization.
AACSB Category: Analytical thinking
10
32) Which of the following is not a good method of ensuring that money is handled ethically in
your business?
A) Always have two people in the room when the business mail is opened, so no one can steal a
check.
B) Pay yourself, as the owner, strictly out of the profits earned by the business.
C) Require every check issued by the business to be signed by two executives.
D) Make sure the employees that handle the money are licensed and bonded.
Learning Object.: 13.6 Pursue ethical leadership to build an ethical organization.
AACSB Category: Analytical thinking
33) The standards and rules in businesses that help someone decide right from wrong are called
________.
A) corporate governance
B) laws
C) ethics
D) morals
Learning Object.: 13.6 Pursue ethical leadership to build an ethical organization.
AACSB Category: Ethical understanding and reasoning
34) A business behavior might be legal but still not be ________.
A) invalid
B) ethical
C) wrong
D) profitable
Learning Object.: 13.6 Pursue ethical leadership to build an ethical organization.
AACSB Category: Ethical understanding and reasoning
35) Corporate scandals at Enron, WorldCom-MCI, and other firms are examples of failure of
________.
A) corporate public relations
B) corporate governance
C) corporate ethics
D) corporate violations
Learning Object.: 13.6 Pursue ethical leadership to build an ethical organization.
AACSB Category: Ethical understanding and reasoning
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36) As your business grows, have its financial records (its “books”) checked annually by a
reputable ________.
A) CPO
B) accountant
C) lawyer
D) software program
Learning Object.: 13.6 Pursue ethical leadership to build an ethical organization.
AACSB Category: Analytical thinking
37) Make sure your business is run in an ethical manner by ________.
A) keeping accurate records and using financial controls
B) never taking company profits just to pay yourself
C) creating an advisory board
D) All of the above.
Learning Object.: 13.6 Pursue ethical leadership to build an ethical organization.
AACSB Category: Analytical thinking
38) Some basics of corporate governance include keeping accurate records, using financial
controls, creating an advisory board, using company profits as personal funds as needed.
Learning Object.: 13.6 Pursue ethical leadership to build an ethical organization.
AACSB Category: Analytical thinking
39) As a business, ethical practices involve doing the right things and doing them ethically.
Learning Object.: 13.6 Pursue ethical leadership to build an ethical organization.
AACSB Category: Reflective thinking
40) ________ is the ethical obligation of a company to its community.
A) Corporate governance
B) Social entrepreneurship
C) Corporate social responsibility
D) None of the above.
Learning Object.: 13.7 Incorporate social responsibility into your company.
AACSB Category: Analytical thinking