Chapter 03 Organizational Ethics and Corporate Governance Answer
Key
Multiple Choice Questions
1.
Organizational ethics can be thought of as:
2.
The role of a leader in an organization is to:
3.
Which of the following is NOT an underlying trait of character of an effective leader
identified by Johnson?
4.
Which of the following is not a component of the Framework for Understanding Ethical
Decision Making in Business?
5.
What are the five elements of the framework for understanding ethical decision making in
business?
6.
With respect to the importance of moral issues in business, Thomas Jones posited that:
7.
The ethical dissonance model looks at the ethical fit of the organizational and individual
values. The optimal fit for an individual with high individual ethics would be:
8.
The Ethical Dissonance Model helps to evaluate:
9.
The most important element of a high ethics organization would be:
10.
An ethical organization includes the following traits:
11.
The seven signs of a pending ethical collapse include all but:
12.
In the Pinto case, Ford relied on which approaches to ethical reasoning to decide on a
course of action with respect to the faulty gas tank placement:
13.
The stakeholder view emphasizes the obligations of management to:
14.
Which of the following is not an element of an ethical corporate culture?
15.
Trust in business is important because:
16.
A unique aspect of Johnson & Johnson’s Credo is that it:
17.
Lawsuits filed against Johnson & Johnson for product defects years after the Tylenol affair
best illustrates that:
18.
Which of the following is NOT a factor that managers use to set the right tone at the top
and foster ethical leadership?
19.
A troubling result of the 2013 National Business Ethics Survey is:
20.
The 2013 Ethics Resource Center National Business Ethics Survey indicates each of the
following results with respect to how employees view the ethics and ethical practices of
organizations they work for except:
21.
Which of the following is not considered a behavioral indicator of fraud?
22.
Fraud can be defined as:
23.
A unique aspect of occupational fraud is:
24.
The difference between occupational and financial statement fraud is:
25.
According to the ACFE survey, the most common type of occupational fraud scheme is:
26.
The ACFE found that the most common way that fraud is first detected is:
27.
Which of the following was not a finding of the ACFE 2014 Report to the Nation on
Occupational Fraud?
28.
Which of the following was the most frequent anti-fraud control identified in the 2014
ACFE Global Fraud Survey?
29.
According to the ACFE Global Fraud Study, which of the following was the most common
behavioral indicator of fraud?
30.
An example of revenue overstatement is:
31.
Which of the following is not a fraud method to overstate revenues?
32.
The Miniscribe fraud was carried out by:
33.
Which of the following is NOT a characteristic behavior illustrating the fiduciary duty of the
board of directors?
34.
The level of care expected of a reasonable person under similar circumstances in meeting
one’s fiduciary duty is called:
35.
What is the main fiduciary duty of the board of directors?
36.
The business judgment rule refers to:
37.
The honest services fraud rule that was used by Jeff Skilling was successful because the
U.S. Supreme Court rule that:
38.
The relationship between the shareholders, directors, and management of a company, as
defined by the corporate charter, bylaws, formal policy and rule of law is known as:
39.
Which of the following is NOT an element of the corporate governance system?
40.
Corporate governance structures and relationships are shaped by internal and external
mechanisms. Which of the following is an external mechanism?