The well-being promoted by ethical values is not a personal and selfish well-being.
Ethical business leadership is the skill to create circumstances in which bad people are
taught to do good.
A ‘first generation’ approach is ill advised when public policy involves irreplaceable
public goods.
The value of privacy to civilized society is as great as the value of hypernorms to
civilized existence.
Board members are permitted to act in a way that is inconsistent with the central goals
of the organization.
The economic model of corporate social responsibility holds that businesses should
integrate social goals and economic goals.
The ‘˜Four Ps’ of marketing include product, price, promotion, and placement.
Internet use monitoring is evolving with the rise of social media and social networking
use in recent years.
Societies that value individual freedom will be reluctant to legally require acts of
charity, personal integrity, and common decency.
Ethical decision making in business is limited to major corporate decisions with
dramatic social consequences.
Stakeholder theory states that a firm should be managed for the sole benefit of
stockholders.
According to the conservation movement, the natural world was valued as a resource,
providing humans with both direct and indirect benefits.
The implied warranty of merchantability holds that in selling a product, a business
implicitly offers assurances that the product is reasonably suitable for its purpose.
A condition for respect requires that consent be not only voluntary, but also informed.
The Economic Development Approach suggests that sustainable business and
sustainable economic development seek to create new ways of doing business in which
business success is measured in terms of economic, ethical, and environmental
sustainability.
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.
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
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
_____ 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
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. Gramm’“Rudman’“Hollings Performance and Results Act
b. Employee Pay Comparability Act
c. Grayson-Himes Pay for Performance Act
d. Statutory Pay-As-You-Go Act
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 recommendations for paths toward economic and
social development at the expense of underdeveloped and developing countries.
c. It defined sustainable development as development that meets the needs of the
present without compromising the ability of future generations to meet their own needs.
d. It criticized the report from the United Nations’ World Commission on Environment
and Development published in 1987.
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 social responsibility.
d. stakeholder model of corporate social responsibility.
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 law of supply and demand is reversed.
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
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
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
Employers in all parts of the U.S.A. are prohibited from making employment decisions
on the basis of weight, even if they are not in violation of the Americans with
Disabilities Act (ADA).
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
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
Which of the following is one of the ‘Four Ps’ of marketing?
a. Purpose
b. Planning
c. Promotion
d. People
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
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
c. Moral imagination
d. Normative imagination
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 requires ethical decision making.
c. All ethical decisions can be covered by economic, legal, or company rules and
regulations.
d. Ethical decision making should not rely on the personal values and principles of the
individuals involved.
Which of the following mechanisms allows employees to report wrongdoing and to
create mechanisms for follow-up and enforcement?
a. Accountability
b. Ombudsman
c. Appraisals
d. Code of conduct
Summarize what economist Antonio Argandona says about information and data in the
age of technology, and the moral requirements associated with that information.
The practice of attending to the ‘_____’ of a firm is referred to as reputation
management.
What are the requirements of and the most significant criticism of the Sarbanes-Oxley
Act?
Describe how a values-based culture works.
Within a business setting, individuals must consider the ethical implications of both
personal and professional decision making. Manager, teacher, and student-body
president are examples of _____ roles.
Which provisions of the Sarbanes-Oxley Act have the most impact on corporate
governance and boards?
Discuss the challenges associated with the efficient market approach to environmental
responsibilities.
Discuss the facts pertaining to laws against discrimination based on marital status.