1. Which of the following is not an aspect of the institutionalization of social responsibility?
a. Voluntary practices
b. Legal responsibilities
c. Core practices
d. Familial responsibilities
e. Strategic philanthropy
2. Which of the following acts can be classified as procompetitive legislation?
a. Equal Pay Act of 1963
b. Civil Rights Act of 1964
c. McCarran-Ferguson Act of 1944
d. Sherman Antitrust Act of 1890
e. Occupational Safety and Health Act of 1970
3. Which of the following acts exempted the insurance industry from antitrust legislation?
a. Equal Pay Act of 1963
b. Civil Rights Act of 1964
c. McCarran-Ferguson Act of 1944
d. Sherman Antitrust Act of 1890
e. Occupational Safety and Health Act of 1970
4. Which of the following acts, passed in response to public outrage over conditions described in Upton Sinclair’s The
Jungle, was the first consumer protection legislation?
a. Civil Rights Act of 1964
b. Sherman Antitrust Act of 1890
c. Magnuson-Moss Warranty Act of 1974
d. Consumer Product Safety Act of 1972
e. Pure Food and Drug Act of 1906
5. The was established after the latest financial crisis, in response to a situation that caused many consumers to
lose their homes.
a. Environmental Protection Agency
b. World Bank
c. Consumer Financial Protection Bureau
d. World Trade Organization
e. Sarbanes-Oxley Act
6. Which of the following is not a provision of the Sarbanes-Oxley Act?
a. Strengthens penalties for corporate fraud
b. Discourages the creation of ethical and legal compliance programs
c. Requires codes of ethics for financial reporting in corporations
d. Makes fraudulent financial reporting a criminal offense
e. Requires greater transparency in financial reporting
7. Which of the forces of the business environment involves the rivalry among businesses for customers and profits?
a. The economic dimension
b. The legal dimension
c. The competitive dimension
d. The technological dimension
e. The voluntary responsibilities dimension
8. The regulates tobacco, dietary supplements, vaccines, veterinary drugs, medical devices, cosmetics, products
that give off radiation, and biological products.
a. World Trade Organization
b. Consumer Financial Protection Agency
c. Department of Justice
d. Environmental Protection Agency
e. The Food and Drug Administration
9. Which of the following groups is not a group that receives special legal protections?
a. The elderly
b. Children
c. Senior citizens
d. The highly educated
e. Young consumers
10. The was called “a sweeping overhaul of the financial regulatory system…on a scale not seen since the
reforms that followed the Great Depression.”
a. Equal Pay Act
b. Americans with Disabilities Act
c. Dodd-Frank Wall Street Reform and Consumer Protection Act
d. Age Discrimination in Employment Act
e. VII of the Civil Rights Act
11. law defines the rights and duties of individuals and organizations (including businesses).
a. Civil
b. Criminal
c. Competitive
d. Administrative
e. Regulatory
12. law not only prohibits specific actions in business such as fraud, theft, or securities trading violations, but also
imposes fines or imprisonment as punishment for breaking the law.
a. Civil
b. Criminal
c. Competitive
d. Administrative
e. Regulatory
13. Which of the following is not a provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act?
a. Increases the accountability and transparency of financial institutions
b. Creates a bureau to educate consumers in financial literacy
c. Creates an organization to pay the bills of low-income consumers
d. Create incentives for whistle-blowers to come forward
e. Increases oversight of the financial industry
14. is the synergistic and mutually beneficial use of an organization’s core competencies and resources to deal
with key stakeholders so as to bring about organizational and societal benefits.
a. Social responsibility
b. Business ethics
c. Corporate philanthropy
d. Strategic philanthropy
e. Cause-related marketing
15. Anticompetitive strategies that focus on weakening or destroying a competitor have spurred antitrust legislation and
include all of the following except
a. sustained price cuts.
b. free samples.
c. discriminatory pricing.
d. price collusion.
e. corporate espionage.
16. Which is not one of the four sources of criminal and civil laws?
a. Judicial law
b. Common law
c. Constitutional law
d. Administrative law
e. Statutory law
17. The is an independent agency within the Federal Reserve System that “regulate[s] the offering and provision
of consumer financial products or services under the Federal consumer financial laws.”
a. Consumer Financial Protection Bureau
b. Federal Reserve
c. World Trade Organization
d. Department of Justice
e. Federal Trade Commission
18. The primary objective of U.S. antitrust laws is to
a. protect consumers from high prices and foreign products.
b. protect domestic businesses.
c. protect employees.
d. promote strategies that enhance business welfare over consumer welfare.
e. distinguish competitive strategies that enhance consumer welfare from those that reduce it.
19. What is a primary reason why some small businesses resist the opening of large chain retailers like Walmart or
Home Depot?
a. Because the large size creates economies of scale and they can charge lower prices
b. Because the selection in the stores is too large
c. Because large retailers attract crime to neighborhoods in which they are based
d. Because community leaders do not like the top management
e. Because large retailers almost never hire local workers as employees
20. focus(es) on developing sound organizational practices and integrity for financial and nonfinancial
performance measures, rather than on an individual’s morals.
a. The Dodd-Frank Wall Street Reform and Consumer Protection Act
b. Compliance
c. Organizational ethics
d. Core practices
e. The Sarbanes Oxley Act
21. Which of the following is not one of the seven steps that the U.S. Sentencing Commission requires for an effective
compliance program?
a. Develop a code of conduct
b. Provide oversight by high-ranking personnel
c. Create a communication system for disseminating standards and procedures
d. Monitor and audit systems designed to detect misconduct
e. Comply with ISO 14000 guidelines
22. The Sarbanes-Oxley Act created the
establish rules and standards for auditing.
to oversee the accounting firms that audit public corporations and to
a. Public Company Accounting Oversight Board
b. Corporate Accounting Oversight Commission
c. Enron Accounting Fraud Administration
d. Occupational Health and Safety Administration
e. Equal Employment Opportunity Commission