Marketing professionals abide by a code of ethics adapted by the American Marketing
Association.
Answer:
The authority of the Consumer Financial Protection Bureau does not extend to
examining and enforcing regulations for banks and credit unions if their assets exceed
$10 billion.
Answer:
Title III of the Sarbanes-Oxley Act requires senior auditors to rotate off an account
every five years, and junior auditors every seven years.
Answer:
The employees of Brennerz Inc. are encouraged to cycle to work every day to reduce
environmental pollution. This is an example of corporate social responsibility.
Answer:
With employers being able to monitor every keystroke on a computer, track every
website visited, and record every call made by employees, the workplace is beginning
to display Orwellian characteristics.
Answer:
The Ethics Resource Center states that a code of ethics should help managers,
employees, and stakeholders understand how an organization’s cornerstones translate
into everyday decisions, behaviors, and actions.
Answer:
Manufacturing, a primary activity of an organization’s value chain, sources components
and builds products for an organization.
Answer:
One of the ways in which multinational corporations lower their expenses is by
shipping work to countries with lower labor costs.
Answer:
The chief responsibility of an ethics officer is to assess competitors’ strengths and
weaknesses.
Answer:
The Revised Federal Sentencing Guidelines for Organizations required evidence of
actively promoting ethical conduct rather than just complying with legal obligations.
Answer:
When trying to resolve an ethical dilemma, the Golden Rule principle considers only
legal aspects of the problem.
Answer:
The accounting function provides the certification, by an impartial third-party
professional, that an organization’s financial statements are accurate.
Answer:
The sentence of an organization punished under the Federal Sentencing Guidelines for
Organizations is calculated through a three-step process: determination of mitigating
factors, credit rating, and the elasticity of the economy.
Answer:
Using a computer to appropriate the intellectual output of another person is an example
of ethical employee behavior.
Answer:
The UN Global Compact, which encourages organizations to make a voluntary
commitment to corporate citizenship, is widely recognized as the world’s largest
initiative of its kind.
Answer:
A multinational corporation is a company that provides and sells products and services
across multiple national borders.
Answer:
Strategic CSR targets programs that will generate the most positive publicity or
goodwill for the organization.
Answer:
Prior to the passing of the Foreign Corrupt Practices Act, making illegal payments to
foreign officials was not punishable through any type of legislation.
Answer:
The UN Global Compact is a set of mandatory rules to which multinational
corporations are expected to adhere. Companies that fail to comply with these rules are
blacklisted by the US Government.
Answer:
The field of ethics is the study of how people try to live their lives according to a
standard of “right” or “wrong” behavior.
Answer:
Packet-sniffing software can be used to monitor employees’ private accounts, as long as
they are accessed on workplace networks or phone lines.
Answer:
Becoming a whistle-blower and taking the story public should be seen as the first resort
rather than the last.
Answer:
Organizational integrity is a characteristic of publicly committing to the highest
professional standards and sticking to that commitment.
Answer:
Computer ethics extends to considering the social consequences of the program being
written and ensuring that your work doesn’t harm people.
Answer:
Copying and distributing unpaid-for proprietary software is not a violation of computer
ethics.
Answer:
The “Office of the Whistleblower” was created by the Securities and Exchange
Commission.
Answer:
The original Volcker Rule sought to allow trading of all derivatives without
discrimination.
Answer:
Research and development (R&D) teams coordinate the recruitment, training, and
development of personnel for all aspects of the organization.
Answer:
A well-written code of ethics can establish a detailed guide to acceptable behavior.
Answer:
In 2008, financial markets around the world suffered a severe crash as a consequence of
aggressive lending to subprime borrowers in a deregulated environment.
Answer:
The Securities and Exchange Commission can enforce criminal penalties of up to $2
million per violation of the Foreign Corrupt Practices Act for corporations and other
business entities.
Answer:
Impatient stockholders wanting the stock price to rise each and every quarter is
representative of most markets.
Answer:
The whistle-blower hotline is used by the government to keep track of whistle-blowers.
Answer:
Corporate governance does not impact the efficiency of financial markets.
Answer:
Because of globalization, multinational corporations:
A. often take advantage of the unrestrictive legal environments of less-developed
countries.
B. have fewer ways in which they can reduce their production costs or increase their
sales.
C. have limited access to the labor force or natural resources of less-developed
countries.
D. often exploit the natural resources of developed countries, facing no consequences.
Answer:
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.”
A. American R&D Association
B. HR Professionals of America
C. American Marketing Association
D. Marketers’ Ethics Resource Center
Answer:
According to the value chain of an organization, which of the following is a support
activity?
A. Operations
B. General administration
C. Distribution
D. Supply chain management
Answer:
The _____ is a government agency established to prevent banks from failing and
otherwise threatening the stability of the U.S. economy.
A. Commodity Futures Trading Commission
B. Financial Stability Oversight Council
C. Consumer Financial Protection Bureau
D. Ethics Resource Center
Answer:
In September and October 2008, financial markets around the world suffered a severe
crash, as:
A. there was aggressive lending to subprime borrowers in a deregulated environment.
B. the Public Company Accounting Oversight Board (PCAOB) was disbanded,
allowing auditors to work unregulated.
C. the assets of American companies overseas were seized by the Federal Sentencing
Guidelines for Organizations.
D. all publicly traded firms only used the services of auditors affiliated with the
PCAOB.
Answer:
The quality by which the pursuit of one value is a good way to reach another value is
known as _____.
A. intrinsic value
B. extrinsic norm
C. instrumental value
D. traditional norm
Answer:
Which of the following is a benefit of telecommuting?
A. Employers find it easy to keep track of the number of hours employees put into a
project.
B. Employees cannot be contacted by employers after a company’s work hours.
C. Employers cannot request employees to work after a company’s work hours.
D. Employees have the flexibility of taking care of their personal needs during work
hours.
Answer:
The _____ refers to the legislation that was promoted as the “fix” for the extreme
mismanagement of risk in the financial sector that led to a global financial crisis in
2008-2010.
A. Trust Indenture Act
B. Sarbanes-Oxley Act
C. Dodd-Frank Wall Street Reform and Consumer Protection Act
D. Foreign Corrupt Practices Act
Answer:
Because of recent advances in technology, information can be digitized and transmitted
over fiber-optic cables. What implications does this have?
A. Customer services and tech support services are now bound by geographic borders.
B. Companies have fewer ways in which they can attend to the needs of their
customers.
C. Customers’ personal information can no longer be sent to or processed in other
countries.
D. Companies can cut their expenses by shipping work to countries with low labor
costs.
Answer:
An organizational culture:
A. represents the sum of all the policies and procedures from each of the functional
departments in the organization.
B. represents the process of transformation in every organization.
C. refers to the ideology that promotes diversity in different institutions.
D. refers to the characteristic of publicly committing to the highest professional
standards and sticking to that commitment.
Answer:
The UN Global Compact focuses on:
A. the welfare of workers around the world.
B. the profitability of small businesses.
C. the inheritance rights of women.
D. the fluctuation of currency standards.
Answer:
Which of the following is an advantage of globalization?
A. National markets have successfully taken over regional trade blocs on a global scale.
B. Children are no longer offered employment in ‘sweatshop” production facilities.
C. Multinational corporations are unable to exploit the people of less-developed
countries.
D. Developing nations can leverage their natural resources to attract foreign investment.
Answer:
ExoticCrafts Inc., a handicraft manufacturing company, has an established marketing
department. Which of the following functions is the marketing department most likely
to carry out?
A. Managing individual hardware and software needs that are specific to the
organization and its line of business.
B. Ensuring that the products reach the hands of a satisfied customer.
C. Coordinating the recruitment, training, and development of personnel for all aspects
of the organization.
D. Certifying the accuracy of the company’s financial statements.
Answer:
How can companies reduce unethical behavior in their companies?
A. By disciplining unethical behavior in private
B. By creating and maintaining a corporate culture of trust
C. By giving their CEOs more power than their boards of directors
D. By not conducting audits and spot checks
Answer:
Which of the following is a difference between internal and external whistle-blowing?
A. Unlike external whistle-blowing, the history of internal whistle-blowing is more
difficult to track.
B. Unlike internal whistle-blowing, external whistle-blowing receives no media
coverage.
C. Unlike external whistle-blowing, internal whistle-blowing harms the company’s
public image.
D. Unlike internal whistle-blowing, incidents of external whistle-blowing are not well
documented.
Answer:
How did the Foreign Corrupt Practices Act (FCPA) encompass all the secondary
measures that were in use prior to the passing of the act?
Answer:
Ethical choices that offer the greatest good for the greatest number of people is referred
to as _____.
A. virtue ethics
B. normative ethics
C. ethical relativism
D. utilitarianism
Answer:
_____ can be said to have instrumental value.
A. Money
B. Self-respect
C. Happiness
D. Health
Answer:
Which of the following indicates the rules of appropriate individual behavior?
A. Jamie had a strict family upbringing that had major impact on his personal moral
standards.
B. Mitchell had never lied to her parents or done anything without their consent.
C. Damian always reaches the workplace before time and is always the last one to
leave.
D. Alice travels to different countries for work and conducts herself according to the
culture of the country she visits.
Answer:
Spark Inc. (SI), a multinational corporation, had reported large losses in the previous
financial year. To overcome these losses, the company planned to take the instrumental
approach to corporate management. Which of the following best illustrates this
approach?
A. SI provides employees with healthy meals and has a gymnasium at the workplace.
B. SI provides employees with cab facility or gives them fuel allowance.
C. SI uses its resources to enhance the productivity of employees and thus increases
profits.
D. SI uses biodegradable plastic containers in its office cafeteria.
Answer:
Which of the following is TRUE of the culpability score?
A. It can be increased or decreased according to predetermined factors.
B. It is calculated before the base fine of an organization is determined.
C. It plays no role in calculating monetary fines under the FSGO.
D. It is a multiplier of the base fine with a maximum of 2.
Answer:
Which of the following principles should a company follow for effective corporate
governance?
A. Appointments to the board of directors should always be made on basis of quid pro
quo agreements.
B. The board of directors and the CEO should work together when evaluating
risk-versus-reward scenarios.
C. The board of directors should consist solely of members who have direct connections
to the company.
D. The roles of the chairperson of the board and that of the chief executive officer
should be merged.
Answer:
The King II report on corporate governance:
A. strongly advocated that companies follow the traditional, single bottom line of
profitability.
B. did not look beyond companies or take their impact upon the larger community into
account.
C. formally recognized the economic, environmental, and social aspects of a company’s
activities.
D. failed to recognize the involvement of all of a corporation’s stakeholders in the
efficient operation of the organization.
Answer:
The Dodd-Frank Wall Street Reform and Protection Act stipulated that if more than $1
million is collected, the whistle-blower is entitled to _____ of the monies collected.
A. between 10 and 30 percent
B. a minimum of 50 percent
C. a minimum of 75 percent
D. between 50 and 75 percent
Answer:
Bribes are those payments which:
A. secure the performance of a routine governmental action.
B. induce officials to act in violation of their lawful duty.
C. expedite the processing of a routine governmental document.
D. secure the lawful services of a foreign official.
Answer:
Brendon Inc. required a permit to open its business in the country of Cadmia. Although
it had met all the requirements for the permit, the officials concerned delayed providing
Brendon Inc. with the permit. To expedite the process, the company made a payment to
a customs official. Which of the following types of payments is this an example of?
A. Accentuation payment
B. Facilitation payment
C. Flood payment
D. Insulation payment
Answer:
Anderson Enterprises endorses low power distance which implies that the firm lays
emphasis on a less consultative or democratic work structure. Subordinates work on
important assignments and managers often socialize with them. Which of the following
concepts is being reflected in the above scenario?
A. Ethical relativism
B. Value chain
C. Organizational culture
D. Corporate conscience
Answer:
The _____ to corporate management refers to the perspective that a corporation has an
obligation to society over and above the expectations of its shareholders.
A. social contract approach
B. shareholder approach
C. free-enterprise approach
D. instrumental approach
Answer:
In which of the following situations would a multinational company, when doing
business in a less-developed nation, be faced with ethical relativism when making a
decision?
A. When local customs come into conflict with the company’s policies.
B. When the less-developed nation is characterized by social stability.
C. When local customs accommodate the company’s code of ethics.
D. When the less-developed nation possesses a strong bureaucracy.
Answer:
Jordan, a software engineer, is responsible for maintaining the private piece of his
company’s internet network that is accessible to clients by means of a unique password.
This piece of the company’s network is known as the _____.
A. intranet
B. cybernet
C. extranet
D. Ethernet
Answer:
Which of the following is an argument against creating a “locked-down” work
environment?
A. Vicarious liability can have serious implications for the employer.
B. Cyberliability can have serious implications for the employer.
C. Employee turnover tends not to affect the company financially.
D. Employees who resent being constrained might leave the company.
Answer:
The corporate governance committee of a company:
A. monitors the ethical performance of the corporation.
B. does not oversee compliance with the company’s internal code of ethics.
C. is primarily in charge of recruiting and training new employees.
D. cannot be staffed by members of the company’s board of directors.
Answer:
Payments made with the knowledge that any portion of the payment is to be passed
along to a foreign official for a prohibited purpose under the Foreign Corrupt Practices
Act are known as _____.
A. grease payments
B. facilitation payments
C. bribes
D. black funds
Answer:
Because of recent advances in technology, information can be digitized and transmitted
over fiber-optic cables. What privacy-related issue does this raise for the customer?
A. Should customers be charged more now that companies can offer them better
customer servicing?
B. Should customers be charged less now that companies have ways in which they can
reduce production costs?
C. Should customer service be relative to the amount of money customers spend on
company products?
D. Should customers be informed that their personal information is being sent to other
countries?
Answer:
The last resort for ethical guidance is the Code of Ethics issued by the _____.
Answer:
What is a value chain? Identify the key functions of a company’s value chain.
Answer:
Discuss the potential ethical dilemmas associated with manufacturing.
Answer:
_____ is a work arrangement that enables employees to log into their company’s
network via a secure gateway such as a virtual private network.
Answer:
Ethical choices that offer the greatest good for the greatest number of people refers to
the ethical approach, proposed by David Hume, known as _____.
Answer:
The _____ was hailed as one of the most important pieces of legislation governing the
behavior of accounting firms and financial markets since the Securities and Exchange
Commission legislation in the 1930s.
Answer:
_____ recommended a checklist of 22 questions to assess the quality of the board of
directors in his Harvard Business Review article.
Answer:
Under the Federal Sentencing Guidelines for Organizations, the _____ is calculated by
multiplying the base fine up to 4 times.
Answer:
The _____ approach to corporate management states that the only obligation of a
corporation is to maximize profits for its shareholders.
Answer:
Business ethics can be approached from two different perspectives. The _____
perspective is the evaluation of the degree to which the observed customs, attitudes, and
rules can be said to be ethical.
Answer:
A _____ nation is one that lacks the economic, social, and technological infrastructure
of a developed nation.
Answer:
The _____ proposed that there should be a key restriction in the legislation to limit
propriety tradingthe ability of banks to trade on their own accounts.
Answer:
Under the FSGO, the base fine multiplied by the _____ gives the total fine amount.
Answer:
______ refers to the employees’ ability to work from home and log into their company’s
network remotely.
Answer:
Name and discuss the three categories of ethical theories.
Answer:
An _____ is a situation in which there is no obvious right or wrong decision, but rather
a right or right answer.
Answer:
Information can be sent over fiber-optic cables only after it has been _____.
Answer:
Under the Sarbanes-Oxley Act, any public accounting firms that audited the records of
publicly traded companies were required to register with the _____.
Answer: