Collins, Business Ethics 3e
SAGE Publishing, 2021
Test Bank
CASE STUDY 3: SEARCHING FOR THE “NEW NORMAL”: THE BUSINESS
RESPONSE TO THE COVID–19 PANDEMIC OF 2020
Multiple Choice
1. One major cause for concern related to Covid-19 was that it ______.
a. spread rapidly and was highly contagious
b. caused symptoms that had never been seen before
c. belonged to a new family of viruses
d. only spread among certain populations
2. By March, 2020, ______ were used in almost all states to limit which businesses
could remain open in order to help stop Covid-19 from spreading.
a. social distancing guidelines
b. mask mandates
c. vaccines
d. shutdown orders
3. Closing all businesses except those deemed essential was a drastic measure that
______.
a. shut down the United States economy
b. devastated the United States health care system
c. increased the spread of Covid-19
d. eliminated Covid-19
Collins, Business Ethics 3e
SAGE Publishing, 2021
4. What is true about the impact of shutdown orders on businesses during the Covid–19
pandemic?
a. Most businesses were forced to file for bankruptcy.
b. Almost all businesses could easily shift to telework.
c. The retail industry likely suffered a lasting legacy of fewer stores.
d. The retail industry experienced a boom, as more people shopped online.
5. During the Covid-19 pandemic, a business determines that it cannot continue to pay
employees if it is forced to stop doing business. To help keep the company in business,
they decide to furlough employees and stop paying their rent. What business response
strategy is this an example of?
a. becoming an essential business
b. pivoting to survive
c. putting stakeholders first
d. sharing cost with stakeholders
6. A company continues to pay employees, even though they must stop operation due
to widespread shutdowns because of the Covid-19 pandemic. This exemplifies which
business response strategy?
a. becoming an essential business
b. pivoting to survive
c. putting stakeholders first
d. sharing cost with stakeholders
Collins, Business Ethics 3e
SAGE Publishing, 2021
AACSB Standard: Knowledge
7. When a company decides to continue to pay employees even though they cannot
conduct business, they are ______.
a. mistreating other stakeholders
b. pivoting their business model
c. sharing the cost with others
d. bearing the cost themselves
8. Which is an example of how a company may choose to honor frontline workers?
a. providing hazard pay to workers
b. furloughing employees
c. avoiding paying rent
d. not providing refunds to clients
9. Frontline workers are more likely to ______.
a. earn higher wages than the overall workforce
b. come from socioeconomically disadvantages groups
c. have more employment benefits, such as health insurance
d. belong to labor unions who negotiate in their best interest
10. Treatment of other stakeholders aside from employees during the Covid-19
pandemic was ______.
a. consistent
Collins, Business Ethics 3e
SAGE Publishing, 2021
b. varied
c. consistent within each industry
d. relied on fulfilling customer needs
11. Even though many were affected by the pandemic, ______ were among the most
severely impacted, since their learning and education were greatly disrupted.
a. children
b. adults
c. CEOs
d. small businesses
12. An example of ______ is that some cannot afford high-speed Internet, while others
can.
a. mistreating stakeholders
b. the digital divide
c. corporate social responsibility
d. a shutdown order
13. Which is true about the effect of the pandemic on small businesses?
a. Most of them were forced to close after shutdown orders were implemented.
b. Some small businesses created new products and services in order to survive.
c. Only a small number of businesses were forced to file for bankruptcy because of the
pandemic.
d. There are not expected to be long-term effects on small business due to the
pandemic.
Collins, Business Ethics 3e
SAGE Publishing, 2021
14. Which industry was one of the most hardest hit economically because of the
pandemic?
a. academia
b. office supply
c. real estate
d. technology
15. When looking ahead to the fall, 2020 semester, many universities ______.
a. tried to attract students back to on-campus classes
b. limited online enrollment
c. tried to boost enrollment of international students
d. anticipated significant losses
16. For small businesses, returning to full operations after the pandemic will ______.
a. require a large financial investment
b. involve very little pivoting
c. occur suddenly
d. be a transition
Collins, Business Ethics 3e
SAGE Publishing, 2021
17. One benefit of the “new normal” is that it ______.
a. will have a lower barrier to enter new markets
b. is reviving some previously dying markets
c. will incorporate social distancing
d. is something that will evolve quickly
18. Which is an anticipated effect of the rise of telework in the “new normal”?
a. less resilient contact-free commerce
b. less resilient supply chains
c. damage to employee morale
d. damage to the real estate industry
19. Which industry has experienced a big boost from the Covid-19 pandemic?
a. higher education
b. contact-free commerce
c. events and conferences
d. retail
20. During the pandemic, Microsoft Azure and Johns Hopkins Medicine created a
partnership to enable breakthroughs in precision medicine. This is an example of how
the pandemic ______.
a. caused business to put stakeholders first
b. prompted partnerships between disparate enterprises
Collins, Business Ethics 3e
SAGE Publishing, 2021
c. forced businesses to pivot into new markets
d. revived industries that were previously dying
True/False
1. Shutdown orders implemented restrictions on when stores could be open and what
products they could sell.
2. Businesses tended to respond to Covid-19 in the same way.
3. Frontline workers typically earn lower wages on average than the overall workforce.
4. Many lawsuits were filed against higher education institution after the pandemic
caused them to cancel in-person learning.
5. Most people are excited to embrace the “new normal.”
Essay
1. Imagine you own a small hardware store during the Covid-19 pandemic. Since it is
considered as an essential business, you are able to stay opened, but you cannot sell
certain items, and your operating hours are severely limited. You are concerned that
you will not have enough income to pay all your employees and keep the business
running. Should you consider sharing costs with employees? Explain your answer.
2. Imagine that you own a wedding venue. When the Covid-19 pandemic forces the
closure of your business, you must determine the best course of action, knowing that
large events will not be allowed anytime soon. What actions would you take to try to
preserve your business and provide fair treatment to stakeholders?
Collins, Business Ethics 3e
SAGE Publishing, 2021
3. During the pandemic, Loom, a video recording and sharing service, made Loom Pro
free for teachers and students. Is this an action you would have taken if you owned
Loom? Why or why not?
4. Why did tensions grow between students and institutions of higher education during
the pandemic? What effects do you think this will have on future semesters?
Collins, Business Ethics 3e
SAGE Publishing, 2021
5. Imagine you work for a consulting company. Prior to the pandemic, all of your
company’s employees worked from a single, large office space. They often travelled to
meet with clients and go on sales calls. When the pandemic hit, all employees
telecommuted and all travel ceased. Business has remained steady and employees are
more productive teleworking. Your company tried to determine what its new normal will
look like once Covid-19 has been eradicated and asks for your opinion. What changes
would you advocate for and why?