47. Publisher’s Clearing House has a policy that no employees or their family members are eligible to win the big
sweepstakes. This policy was likely implemented to
a. shrink the pool of possible winners, which increases each individual’s odds of winning.
b. prevent employees from accepting gifts or bribes from other employees.
c. encourage more magazine sales.
d. avoid an apparent conflict of interest.
e. satisfy the families of Publisher’s Clearing House employees.
48. You are the decision maker for purchasing office equipment in your organization. One sales representative privately
offers you season tickets to the Chicago Bears if you help him out. This tactic is
a. a corporate discount.
b. a common business practice.
c. a bribe.
d. personal selling.
e. ethical.
49. A large computer manufacturer forbids its executives and managers from serving as directors or officers for Intel
Corporation or any other corporations from which it might purchase component parts. The company is trying to
prevent
a. their employees from having other jobs.
b. a conflict of interest.
c. trade secrets from being revealed.
d. losing its executives to other organizations.
e. fairness and honesty.
50. For health-related companies such as Weight Watchers, one of the most frequent ethical issues related to
communications that they face is
a. deception.
b. providing too much information.
c. seeking FDA approval.
d. experiments on animals.
e. safe packaging.
51. What specific area of business communications presents ethical questions by sometimes containing false and
misleading messages for adults and especially children?
a. Press releases
b. Newspaper articles
c. Consumer Reports‘ rankings
d. Advertising
e. Audited financial reports
52. The factor affecting ethical behavior includes one’s moral values and central attitudes.
a. individual
b. social
c. opportunity
d. moral
e. ethical
53. At Ledbetter Industries, employees are allowed one-hour lunches, but it has become common that most stroll back
fifteen minutes late every day. The factor affecting the ethical behavior of Ledbetter’s employees is
a. individual.
b. social.
c. opportunity.
d. code of ethics.
e. whistle-blowing.
54. All of the following are factors that affect the level of ethical behavior in an organization except
a. individual factors.
b. social factors.
c. opportunity.
d. demographic factors.
e. moral values.
55. Publix, a southeastern grocery store chain, has signs saying that tips are not accepted and employees are all
informed of this policy. However, many of the baggers commonly accept tips from customers anyway and they
often compare to see who makes the most. The factor affecting the ethical behavior of Publix’s employees is
a. individual.
b. social.
c. opportunity.
d. demographic.
e. internal code.
56. What are the three sets of factors that influence the standards of behavior in an organization?
a. Organizational norms, circumstances, morals
b. Peer pressure, attitudes, social factors
c. Historical factors, management attitudes, opportunity
d. Opportunity, individual factors, social factors
e. Financial factors, opportunity, morals
57. At Victoria’s Secret, managerial approval is required whenever an employee makes a purchase at the store using
an employee discount. Which factor affecting ethical behavior is Victoria’s Secret seeking to control?
a. Individual
b. Social
c. Moral
d. Circumstantial
e. Opportunity
58. Ed works in a position where there is very little supervision. In fact, although he considers himself ethical, he figures
he could go away for a week without anyone noticing. Which general set of factors is most likely to influence Ed’s
ethical behavior?
a. Individual
b. Social
c. Moral
d. Circumstantial
e. Opportunity
59. If a company deals with violations of its ethical codes , the opportunity to be unethical will be reduced.
a. leisurely and lightly
b. firmly and consistently
c. on a case-by-case basis
d. quietly and erratically
e. frequently and severely
60. Rose Martinez walked into her office and found a large, extravagant bouquet on her desk. Before she had time to
read the card, her secretary said it was from Mr. Tanner at Zero Corporation. The secretary knew Mr. Tanner
was trying to negotiate a sales deal with the company. Thus, she remarked that the beautiful flowers should help
Ms. Martinez make her decision. Although Ms. Martinez did not know how to respond to Mr. Tanner’s gift, she
thought an answer might be in her company’s
a. sales procedures.
b. sales manual.
c. employee handbook.
d. code of ethics.
e. sales training tapes.
61. What is probably the most effective way for a company to encourage ethical behavior?
a. Hire employees who are ethical and in agreement with the company’s views.
b. Have ethics training sessions for interested employees.
c. Threaten employees with immediate termination for unethical behavior.
d. Post signs discouraging sexual harassment and discrimination.
e. Develop and enforce a written code of ethics for the organization.
62. The American Apparel Manufacturers Association exerts pressure on its members to comply with the ethical
standards of the industry and provides information and benefits for textile companies. This company is an example
of a(n)
a. regulatory agency.
b. government agency.
c. trade association.
d. industry organization.
e. membership club.
63. Texas Instruments expects its code of ethics and shared values to provide all of the following benefits except
a. create an outline for ethical policies and standards.
b. encourage employees to value integrity.
c. communicate the company’s expectations to the employees.
d. describe what to do in every ethical situation.
e. expect employees to trust one another and use sound judgment.
64. As a result of the Bhopal incident, in which a toxic gas leak killed thousands of people, leading officials at Union
Carbide have dedicated themselves to operating their business ethically. Ways in which the company can
encourage ethical behavior include all of the following except
a. formalizing a corporate code of ethics.
b. encouraging whistle-blowing.
c. holding ethics training sessions.
d. requiring that ethical behavior be profitable.
e. promoting open decision making.
65. The human resources manager at Swingline, Inc., a manufacturer of office staplers, wants to encourage a more
ethical climate in the organization. A likely way for Swingline to do this is to
a. make certain that Swingline has a company code of ethics that is enforced.
b. add an ethics department whose job is to constantly watch employees to be certain they behave.
c. develop a system of security cameras, telephone monitoring, and one–way mirrors to be certain that
employees behave appropriately.
d. avoid any mention of ethics to employees so that they will not think unethical thoughts.
e. do none of the above. All of these practices are illegal because they take away an employee’s constitutional
right of free choice.
66. Suppose a manager at the Rolodex Corporation has recently become aware that employees are taking office
supplies home and taking longer coffee and lunch breaks than the personnel policy allows. The manager finds these
are widespread practices and wants to solve the problem. The best way to do this would be to
a. call the police and arrest both the “time” thieves and the office supplies thieves.
b. fire all those who have taken office supplies, and suspend those who have taken too much time.
c. change the code of ethics in the personnel policy manual to prohibit these practices.
d. make the corporate culture encourage more ethical behavior.
e. let the union know about the problem during next year‘s pay negotiations.
67. Megan Miller is an ethics officer at a large financial institution. She likely performs all of the following duties except
a. coordinating ethical conduct.
b. providing advice to employees when they are uncertain.
c. giving top management advice about their decisions.
d. encouraging all employees to be whistle-blowers.
e. determining the punishment for ethical violations.
68. Which of the following is the most effective way to encourage ethical business behavior?
a. Pass government regulations.
b. Provide guidelines from trade associations.
c. Include an ethics clause in a labor contract.
d. Establish and enforce a corporate code of ethics.
e. Rely on employees to blow the whistle.
69. Tom stormed into the office, exclaiming, “That’s the last straw! I’ve experienced unethical behavior at this company
one time too many. I’ll be calling the press immediately.” It appears that Tom is about to engage in
a. an unethical practice.
b. corporate ethics.
c. whistling.
d. trumpeting.
e. whistle-blowing.
70. Informing the press or government officials about unethical practices within one’s organization is called
a. unethical behavior.
b. whistling.
c. whistle-blowing.
d. trumpeting.
e. a company violation.
71. A whistle-blower is a person who
a. announces the beginning and end of a work shift.
b. praises his or her own accomplishments.
c. does public relations work for a company.
d. accepts responsibility when a company is in trouble with the government.
e. reports illegal or unethical conduct within his or her organization.
72. When faced with an ethical conflict, a manager should always
a. ask the boss what to do, then do it without question.
b. consider only what is best for the company.
c. look at which decision will make the stockholder the most money today.
d. worry only about what the law has to say, then take legal action because it will produce the least public
outcry.
e. think about his or her own ethics; the company‘s ethics; and the interest of employees, stockholders, and
customers.
73. After consulting his company‘s code of ethics, Mark is still unsure of whether or not the decision he is about to
make is ethical. Which of the following actions would be most appropriate?
a. Ask his wife what she would do in this situation.
b. Calculate the decision’s bottom-line impact and do whatever increases profit the most.
c. Determine whether coworkers, suppliers, and customers would approve of the action.
d. Go with his gut feeling because Mark considers himself to be an ethical individual.
e. Avoid making the decision and any other decision with ethical implications.
74. Which of the following scenarios provides the best example of whistle-blowing?
a. Jonathon fails to meet his sales quota for the month and is reported to the regional manager for special
review.
b. Christine tells her husband about illegal environmental dumping she suspects her company is doing.
c. William gives an interview on NBC’s Dateline about the opportunities available at his company.
d. Geena speaks to her boss about how uncomfortable she is with the sexual jokes one of her coworkers
frequently tells at the office.
e. Marie has grown tired of her company’s unsafe practices and reports them to OSHA, a governmental
agency that regulates safety.
75. Dell’s global outreach programs that help bring technology to underserved communities in various parts of the world
is an example of
a. social responsibility.
b. business ethics.
c. code of ethics.
d. consumerism.
e. affirmative action programs.
76. The recognition that business activities affect society and the consideration of that impact when making business
decisions is referred to as
a. business ethics.
b. corporate ethics.
c. code of ethics.
d. community responsibility.
e. social responsibility.
77. Social responsibility
a. has little or no associated costs.
b. can be extremely expensive and provides very little benefit to a company.
c. has become less important as businesses become more competitive.
d. is generally a crafty scheme to put competitors out of business.
e. is costly but provides tremendous benefits to society and the business.
78. Which of the following examples least represents the definition of social responsibility?
a. Home Depot provides resources and volunteers for Habitat for Humanity.
b. GE supports food banks and helps renovate homeless shelters.
c. Military members pledge a portion of their salary to the United Way.
d. Avon donates a portion of its profits to breast cancer research.
e. AT&T supports education, health, and the environment through donations and volunteers.
79. In 1915, Amanda Groves, mother of seven, lost her husband in a horrible industrial accident that could have easily
been prevented. Soon after, Amanda decided to take legal action against the company. What obstacle did she likely
encounter?
a. Although going to court would be relatively inexpensive, Amanda is not very likely to win the case.
b. It is likely that her legal action would result in the closure of the factory, thereby destroying the economy in
her town for her friends and relatives.
c. Although Amanda is likely to win such a strong case against the company, she will not be able to afford to go
to court.
d. The company responsible is likely to improve its working conditions significantly and make Amanda look like
a liar.
e. She will find out that court is very expensive, and her chances of winning are extremely slim.
80. Kenneth worked in the steel industry in the early 1900s. Which most likely describes the amount of time Kenneth
worked per week?
a. He was lucky to have the job at all and probably only got to work twenty hours per week.
b. He shared his job with another individual and worked thirty hours per week.
c. He worked a standard week of forty hours.
d. He worked over sixty hours a week.
e. He spent about sixteen hours a day, six days a week at the factory.
81. Dorothy worked at a meat packing plant during the 1920s. What would she have been most surprised to see
happening at the plant?
a. Employees earning vacation time
b. Horrible working conditions
c. The organization of labor unions
d. Frequent accidents resulting in injury and death
e. Employees working long hours
82. Early government regulations prior to 1920 that affected American business include all of the following except the
a. Interstate Commerce Act.
b. Sherman Antitrust Act.
c. Federal Trade Commission.
d. Clayton Antitrust Act.
e. Americans with Disabilities Act.
83. As far as business is concerned, six of the most important federal laws passed between 1887 and 1914 supported
a. foreign trade.
b. increased production.
c. more competition.
d. elimination of unions.
e. more social responsibility.
84. Caveat emptor
a. is a French term that implies laissez faire.
b. implies disagreements over peer evaluations.
c. is a Latin phrase meaning “let the buyer beware.”
d. is a Latin phrase meaning “let the seller beware.”
e. is a Latin phrase meaning “the cave is empty.”
85. Melissa purchases a DVD player at a store that sells refurbished merchandise. The store has a big sign stating
“Caveat Emptor” posted out front and at the cash register. This sign most likely translates to a policy of
a. refunds or exchanges at any time with a receipt.
b. 100 percent satisfaction guaranteed with all merchandise.
c. all sales are final (no refunds or exchanges).
d. buying, selling, or trading electronic goods.
e. selling only French-manufactured products.
86. Before the 1930s, most government involvement in day–to–day business was aimed at
a. nonpayment of income taxes.
b. discrimination.
c. protection of the free-market system.
d. consumer rights.
e. employment practices of factories.