1. Expert power usually stems from
a. a superior’s credibility with his or her subordinates.
b. the belief that a certain person has the right to exert influence and that certain others have an obligation to
accept it.
c. a person’s ability to influence the behavior of others by offering them something desirable.
d. a person’s ability to penalize the actions or behavior of another.
e. a person’s perceptions that his or her goals or objectives are similar to another’s.
2. Which of the following statements about power is true?
a. The five bases of power are mutually exclusive.
b. People generally use only one base of power to effect change in others.
c. Expert power exists when one person takes actions that will lead that person and others to achieve their
mutual objectives.
d. Power can be used to motivate individuals ethically or unethically.
e. The use of power is unethical.
3. An organization that delegates decision-making authority as far down the chain of command as possible and has
relatively few formal rules is
a. centralized.
b. decentralized.
c. flat.
d. tall.
e. ethical.
4. Which of the following is not a characteristic of an ethical corporate culture?
a. Management and the board demonstrate their commitment to strong controls through their communications
and actions.
b. Every employee is encouraged and required to have hands-on involvement in the internal control system.
c. Management conducts itself in a way that is not consistent with the code of conduct.
d. Employees are expected to be in the communication loop through resolutions and corrective actions.
e. Employees have the ability to report policy exceptions anonymously to any member of the organization.
5. Although both structures can create opportunities for unethical conduct, which organizational structure tends to be
more ethical?
a. Tall
b. Flat
c. Centralized
d. Decentralized
e. All organizational structures are equally ethical.
6. The ability to influence the behavior of others by offering them something desirable is best described as
a. coercive power.
b. reward power.
c. expert power.
d. legitimate power.
e. referent power.
7. An advantage of the decentralized organization is that
a. the focus is on formal rules, policies, and procedures backed up with elaborate control systems.
b. there is a high level of bureaucracy.
c. each worker knows his or her job and what is specifically expected as well as how to carry out designated
tasks.
d. it is adaptable and can quickly respond to external change.
e. there is minimal upward communication.
8. When developing an ethical culture, there has to be a(n) element because every organization has employees
that will try to take advantage if there is an opportunity for misconduct.
a. rules-based
b. statement of mission
c. ethical
d. compliance
e. punitive
9. The apathetic organizational culture exhibits
a. high concern for people but minimal concern for performance.
b. little concern for people but a high concern for performance.
c. minimal concern for people and performance.
d. high concern for people and performance.
e. no concern for maintaining a cohesive organizational culture.
10. The exacting organizational culture is interested in
a. performance but has little concern for employees.
b. investors’ impressions of profitability.
c. maintaining a strong corporate culture.
d. employees and performance.
e. employees’ impressions.
11. Associating with others who are unethical and who have the opportunity to act unethically can lead to a learning
process known as
a. compliance.
b. misconduct.
c. opportunity.
d. differential equations.
e. differential association.
12. Which of the following statements about corporate culture is false?
a. Corporate culture refers to the patterns and rules that govern the behavior of an organization and its
employees, particularly the shared values, beliefs, and customs.
b. The values and ethical beliefs that actually guide the firm’s employees tend not to be the same ones that
management states as defining the firm’s culture.
c. Corporate culture includes the behavioral patterns, concepts, values, ceremonies, and rituals that take place in
an organization.
d. The culture of an organization may be explicitly stated or unspoken.
e. Failure to monitor or manage an organization‘s culture may foster unethical behavior.
13. No formal dress codes, working late, participation in extracurricular activities, gestures, and legends represent
a. a complacent workplace.
b. codes of ethics.
c. a firm’s organizational chart.
d. formal expressions of an organization’s culture.
e. informal expressions of an organization‘s culture.
14. A cultural audit may be used to identify
a. how cultured a firm‘s employees are.
b. unethical employees.
c. unethical organizations.
d. an organization’s culture.
e. organizational structure.
15. The 2010 passage of the Dodd-Frank Act proposed additional monetary incentives for whistle-blowers. A primary
concern about these new incentives is
a. they will encourage too many employees to attempt to blow the whistle on firms, even those that have done
nothing wrong.
b. people do not generally respond at all to monetary incentives.
c. whistle-blowers might be tempted to report to the SEC with their reports and not report the misconduct to the
company’s internal compliance program.
d. people may exaggerate their claims in order to get a reward.
e. the funds paid out to whistle-blower might bankrupt companies.
16. Marcus is the top-performing development director his non–profit organization has ever had. He possesses countless
tricks and tips to continue to bring in donations, positive publicity, and supporters. Marcus would likely have
over new development department staff.
a. coercive power
b. group power
c. legitimate power
d. expert power
e. democratic power
17. bring together the functional expertise of employees from several different areas of the organization on a
single project.
a. Quality circles
b. Informal groups
c. Teams
d. Work groups
e. Committees
18. Individuals, often from the same department, who band together for purposes that may or may not be relevant to the
organization are called
a. quality circles.
b. informal groups.
c. teams.
d. work groups.
e. committees.
19. In order for whistle-blowing to be effective,
a. financial compensation must be very high.
b. employees must wish ill on the organization for which they work.
c. lawmakers must make an effort to force employees to discuss details about the misconduct.
d. it requires that the individual have adequate knowledge of wrongdoing that could damage society.
e. it must occur at a very large multinational corporation.
20. Which of the following statements about group norms is false?
a. Group norms define the limit on deviation from group expectations.
b. Group norms have the power to force a strong degree of conformity among group members.
c. Management must carefully monitor the norms of all the various groups within the organization, as well as the
organization‘s corporate culture.
d. Sanctions may be necessary to bring in line a group whose norms deviate sharply from the overall culture.
e. Group norms never conflict with the overall organization‘s culture.
21. Management’s sense of the organization’s culture
a. is always the same as employees‘ perceptions.
b. is usually easily adopted by employees.
c. is always readily evident to employees.
d. may be quite different from employees’ perceptions.
e. is always different from employees’ perceptions.
22. Motivation is defined as
a. a person’s incentive or drive to work.
b. a force within the individual that focuses his or her behavior on achieving a goal.
c. personal ambition without regard to the impact on others.
d. a desire to be finished with a project.
e. individual goals.