When a manager acts toward a customer in a favorable way in the hope that the
customer will return for future purchases, this is an example of:
A.reciprocity.
B.utilitarianism.
C.realism.
D.manipulation.
Which of the following is true regarding the doctrine of liberty of contract?
A.It prohibited the firing at will of employees.
B.It took care of the unchallenged dominion of employers, thereby reducing the
incidents of negligent treatment of workers.
C.It assumed equal bargaining power for all parties, whereas employers unquestionably
predominated.
D.It ensured that employers found no opportunity to exploit employees.
A governmental committee formed by a company that makes campaign contributions
by getting money from individual employees, not the corporate treasury, is called a:
A.political action committee.
B.subcommittee.
C.progressive change committee.
D.joint committee.
Eliminating all forced or compulsory labor, abolishing child labor, eliminating
employment discrimination, and guaranteeing the right of collective bargaining are part
of the _____ standards.
A.second New Deal
B.fair labor
C.core labor
D.agency worker
When the political will for stringent command rules is absent, _____ regulation is used.
A.command-and-control
B.voluntary
C.market incentive
D.required disclosure
The idea that character development is the wellspring of ethical behavior is known as
the:
A.Golden Rule.
B.disclosure rule.
C.virtue ethic.
D.equal freedom ethic.
In 2009, Congress gave the FDA power to:
A.protect consumers from any practice that limits competition.
B.regulate cigarettes and smokeless tobacco.
C.ban tobacco products.
D.reduce nicotine levels to zero.
Which of the following is true regarding the modern nation-state?
A.It is an independent entity which is not administered as part of a local government.
B.It is a sovereign state which is comprised of two or more nations.
C.It is the single dominant ethnic group in a state.
D.It arose in an unplanned way out of the wreckage of the Roman Empire.
The basic agreement between a business and its society that defines the broad duties of
the business that are needed to retain the support of society is called a(n) _______.
A.social contract
B.ideology
C.institution
D.scheme
What is the mainspring of globalization?
A.Educational changes
B.Trade
C.Culture
D.Changes in communications
The study of good and evil, right and wrong, and just and unjust actions in business is
called:
A.moral free space.
B.corporate culture.
C.business ethics.
D.moral muteness.
Which of the following statements about compensation of outside board members is
true?
A.They are compensated as full-time employees of the firm.
B.They are provided perquisites and pensions.
C.They are usually paid an annual retainer supplemented with company stock.
D.They are paid a monthly salary.
Which part of the U.S. Constitution gives the federal government the right to regulate
business?
A.Article I
B.Article III
C.Article V
D.Article VI
All of the following are true of protectionism EXCEPT:
A.industries must be shielded from foreign competition.
B.large trade deficits of the United States must be reduced.
C.maximum gain on a worldwide basis will be realized if capital flows are unrestricted.
D.trade barriers in foreign countries restrict American imports to them.
Direct interaction with government officials or staff through meetings, phone calls, or
e-mails is known as:
A.background lobbying.
B.grassroots lobbying.
C.media lobbying.
D.contact lobbying.
Which of the following is true about guidance?
A.It is legally binding.
B.It is issued exclusively by Congress.
C.It is intended to clarify official regulations.
D.It does not affect existing rules.
A _____ is a decree issued by an agency to implement a law passed by Congress.
A.veto
B.rule
C.revocation
D.stratagem
The single most conspicuous effort to promote MNC social responsibility and to
harness FDI for economic development is the:
A.social contract.
B.Universal Declaration of Human Rights.
C.Global Compact.
D.transnationality index.
The legal authority for corporate managers and directors is derived from the:
A.corporate charter.
B.board of directors.
C.stockholders.
D.CEO.
Which of the following is an example of a primary stakeholder in a corporation?
A.Media
B.Government
C.Trade associations
D.Political parties
_____ is the belief that sacred authority called for hard work, saving, thrift, and honesty
as necessary for salvation.
A.Positivism
B.Protestant ethic
C.Functionalism
D.Confucian ethic
Which of the following statements regarding the Gini index is true?
A.Zero percent stands for absolute equality.
B.It is a statistical measure of complexity.
C.Fifty percent represents absolute inequality.
D.Inequality reduces as the percentage figure rises toward 100.
Which ethical theory postulates that people must act for the common good of the
society in which they live?
A.The disclosure rule
B.The theory of justice
C.The ends-means ethic
D.The might-equals-right ethic
Which of the following is considered to be the bedrock of economic globalization?
A.Monopoly
B.Foreign direct investment
C.Oligopoly
D.Trade liberalization
Which of the following was a major force that oppressed individualism in the northern
colonies of America in the early 1800s?
A.The ascetic Puritan theology
B.The ascetic Presbyterian theology
C.The Catholic Church
D.The Separatist belief
Direct investment means:
A.buying or creating facilities in another country for producing in local markets.
B.buying or creating facilities in home country.
C.buying facilities based in home country for the purpose of exporting products.
D.buying facilities in home country for the sole purpose of importing essential goods.
An agreement by which an employee exchanges his/her labor in return for specific pay
and working conditions is called a(n):
A.yellow-dog contract.
B.employment contract.
C.compromise agreement.
D.nondisclosure agreement.
This doctrine propounds that government should protect business interests from foreign
competitors.
A.Protectionism
B.The law of comparative advantage
C.The marginalist theory
D.The Truman Doctrine
According to this theory, humans are part of an ethical community that includes not
only other human beings but all elements of the natural environment.
A.Existentialism
B.Deep ecology
C.Land ethic
D.Agrarianism
The systematic calculation of the bottom line and profit of a proposed regulatory action
is called:
A.cost-effectiveness analysis.
B.cost-utility analysis.
C.cost-benefit analysis.
D.QALY.
_____ is the process of removing or substantially reducing the body of control covering
an industry.
A.Liberalization
B.Privatization
C.Globalization
D.Deregulation
Which of the following is true regarding the civilizations of ancient Greece and Rome?
A.Both the civilizations were based on industrial activities.
B.Economic activity by merchants, bankers, and manufacturers was at a maximum.
C.Inaccurate economic doctrines were put forward to explain commercial activities.
D.Philosophers reasoned that profit seeking was the best motive.
Which sphere of justice requires that the benefits and burdens of company life be
distributed using impartial criteria?
A.The proportionality ethic
B.Distributive justice
C.Restorative justice
D.Retributive justice
An enduring belief about which basic choices in a society are “correct” is called an idea.
An agent capable of initiating cancer is known as a(n):
A.effluent.
B.precipitate.
C.carcinogen.
D.condensible.