55. Exotic Crafts Inc., a handicraft manufacturing company, has an established marketing
department responsible for various important functions. The marketing department is most likely
engaged in _____.
56. Which of the following statements is true of marketing?
A. The marketing process is responsible for ensuring that the product design meets all the
57. _____ is represented by ethical choices that offer the greatest good for the greatest
number of people.
58. Actions that are taken out of duty and obligation to a purely moral ideal, rather than
based on the needs of the situation, are known as _____.
59. Actions placed within a strictly moral context instead of basing actions on the needs of a
particular situation is termed _____.
60. Marketing professionals abide by a code of ethics adapted by the _____.
61. The code of ethics adapted by the _____ speaks about doing no harm, fostering trust, and
improving “customer confidence in the integrity of the marketing exchange system.”
62. ThinkNow is an advertising firm based in Dallas, Texas. One of its departments is in
charge of the hiring process and is responsible for the orientation of newly hired employees.
Which of the following organizational areas does this department represent?
63. The efficient management of providing payroll and benefits for happy and productive
employees is looked after by the _____ department of an organization.
64. Amanda heads the human resources department in Elenear Enterprises. The
management has entrusted her with certain functions. Within the organization, Amanda should
be directly involved in:
65. Which of the following is a human resources function within an organization?
66. Ideally, the human resources function within an organization should be directly involved
in:
67. If an employee leaves a company, the _____ department should host an exit interview to
ensure that anything the organization can learn from the employee’s departure is fed back into
the company’s strategic plan for future growth and development.
68. Walter’s Inc., a cement manufacturing firm, fails to meet the deadline for delivering 500
kg of cement to QuickContruct Inc. The officer responsible for the distribution and sale at Walter
Inc. bribes the officer at QuickContruct Inc. to alter the date of delivery in the original contract.
Which of the following concepts is best illustrated in the above scenario?
69. An argument made by the advocates of ethical business conduct about the human
resources department is that it should _____.
70. The _____ keeps track of a company’s financial transactions by documenting money
coming in and money going out and balances the accounts at the end of the period.
71. The certification of an organization’s financial statements or books, by an impartial third–
party professional, as being accurate is offered by the _____.
72. The accounting profession is governed by a set of _____.
73. Which of the following represents a legal accounting practice?
74. For the accounting profession, the last resort for ethical guidance and leadership is the
Code of Conduct issued by the _____.
75. _____ is defined as a situation where one relationship or obligation places an individual or
firm in direct dispute with an existing relationship or obligation.
76. A company is of the view that what is best for its shareholders may not be best for its
employees and the community. It also believes that the most efficient means to achieve
increased profits is to close its factory and move production overseas, which is not agreed upon
by its shareholders. This is an example of _____.
77. Which of the following statements is true of ethical challenges in organizations?
78. In an organization, _____ see themselves as providing products (or services) to customers
who have already expressed a need for and a desire to purchase those products.
79. The marketing challenge is more directly aligned to the debate between universal ethics
and _____.
80. The need for certified financial documents assumes great importance for an
organization when _____.
81. Which of the following is the most likely reason why organizations maintain their own
internal auditors?
82. In an organization, conflict of interest is most likely to occur when:
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 03-05 Determine potential conflicts of interest within any organizational function.
Fill in the Blank Questions
83. _____ can be defined as the values, beliefs, and norms shared by all the employees of an
organization.
84. An organization’s _____ represents the sum of all its policies and procedures—both written
and informal—from each of the functional departments in the organization in addition to the
policies and procedures that are established for the organization as a whole.
85. A _____ is composed of the key functional inputs that an organization provides during the
transformation of raw materials into a delivered product or service.
86. _____ is the line function that coordinates the recruitment, training, and development of
personnel for all aspects of the organization.
87. _____ refer to the line function that maintains the technology backbone of an
organization—data transfer and security, e-mail communications, internal and external websites,
as well as the individual hardware and software needs that are specific to the organization and
its line of business.
88. The _____ department of an organization incorporates customer feedback from market
research and competitive feedback from closely monitoring the competition in the market to
develop product designs that will allow the organization to capture and maintain a leading
position in its market.
89. For a research and development team, the real ethical dilemmas come when decisions are
made about _____.
90. Ethical choices that offer the greatest good for the greatest number of people refer to the
theory of _____.
91. Actions that are taken out of duty and obligation to a purely moral ideal, rather than based
on the needs of a situation, since the principles are seen to apply to everyone, everywhere, and
all the time are termed _____.
92. The code of ethics adapted by the _____ speaks about doing no harm, fostering trust, and
improving “customer confidence in the integrity of the marketing exchange system.”
93. The _____ department of an organization carries the responsibility of corporate compliance
to all prevailing employment legislation.
94. The _____ department of an organization should ensure that leadership selection and
development processes include an ethics component.
95. _____ professionals must help ensure that ethics is a top organizational priority.
96. The _____ function of an organization keeps track of the company’s financial transactions
by documenting the money coming in and going out and by balancing the accounts at the end of
the period.
3-37
97. _____ function of an organization refers to the certification of the organization’s financial
statements or books as being accurate by an impartial third-party professional.
98. The _____ is a set of principles that governs the accounting profession.
99. The last resort for ethical guidance in an accounting profession is the Code of Ethics
issued by the _____.
100. A situation in which one relationship or obligation places the individual or organization in
direct conflict with an existing relationship or obligation is referred to as a _____.
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 03-05 Determine potential conflicts of interest within any organizational function.
Essay Questions
101. What is a value chain? Identify the key functions of a company’s value chain.
102. Discuss the potential ethical dilemmas associated with manufacturing.
The pressures in manufacturing are very similar to those in the research and development
function as manufacturers face the ethical question, “Do you want it built fast, or do you want it
built right?” From an organizational perspective, the firm would want both, especially if it knows
103. Discuss the statement that an organization’s human resources (HR) should be at the
center of any corporate code of ethics.
104. Discuss the pressures placed on an organization’s accounting department to maintain
creative bookkeeping techniques.
105. Discuss conflict of interest with an example.