Appendix I for Unit Nine
Questions on the Features
N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows.
N A question new to this edition of the Test Bank.
+ A question modified from the previous edition of the Test Bank.
= A question included in the previous edition of the Test Bank.
CHAPTER 44—INSIGHT INTO ETHICS:
SHOULD PHARMACEUTICAL COMPANIES BE ALLOWED TO TWEET?
A1. DrugCo, Inc., makes and markets Evenflo, a prescription drug. Food and Drug
Administration (FDA) rules require ads for prescription drugs to disclose all of the
potential negative side effects. Display ads on the Web are not amenable to such lists.
Thus to comply with FDA rules, on the Web DrugCo should run
a. a general, disease-related search ad.
b. an ad for Evenflo without a list of side effects.
c. a tweet.
d. no ads.
CHAPTER 45—SHIFTING LEGAL PRIORITIES FOR BUSINESS:
NEW HEALTH-CARE LAW REQUIRES CALORIC INFORMATION
A2. Thai Pizza Corporation is a restaurant chain with twenty locations. Under federal law,
Thai Pizza must post
a. the caloric content of the foods on the chain’s menu.
b. the recipes for the dishes on the chain’s standard menu.
c. the chain’s recommendations for the healthiest selections.
d. none of the choices.
CHAPTER 48—SHIFTING LEGAL PRIORITIES FOR BUSINESS:
ATTACKING THE ESSENCE OF THE SARBANES-OXLEY ACT
A3. Spreadeagle, Inc., is a publicly held company. Spreadeagle’s executives include Tybalt,
who serves as the firm’s chief financial officer. The Sarbanes-Oxley Act of 2002
provided for the establishment and appointment of a federal Public Company
Accounting Oversight Board (PCAOB). The PCAOB was created to
a. set and police auditing standards for publicly held companies.
b. oversee presidential appointees to federal accounting positions.
c. regulate the salaries of public company executives and others.
d. issue a revised set of international financial reporting standards.
UNIT NINE—FOCUS ON ETHICS:
GOVERNMENT REGULATION
A4. Pinpoint Marketing, Inc. (PMI), a credit-reporting agency, sells data about consumers
to merchants and others. Consumers have some recourse if PMI
a. realizes a profit from the sales.
b. sells data about consumers who request to be “blacklisted.”
c. does not report the data accurately.
d. does not tell consumers when the data is sold.
A5. Gabe owns Hazard Landfill, a toxic waste dump that must be cleaned up. Ethical
questions arise, with respect to the clean up, because
a. everyone knows the cost.
b. no one knows the cost.
c. only Gabe knows the cost.
d. only the Environmental Protection Agency knows the cost.