Which of the following describes the contagion effect that can occur when one business
moves into an area?
a. New jobs will be created in the community, which will decrease unemployment and
boost the overall economy.
b. A move can signal to other firms that the area is a viable and attractive place for
others to locate, and more businesses will follow.
c. A move can signal to other firms that the area is congested and not worth entering.
d. The community will be grateful to the company for locating within its limits and
reward it with certain property tax benefits.
e. The overall skill level of employees in the community will improve, which may lead
other companies to recruit workers from this community.
Approximately ____ of all countries have at least one minority group that represents a
distinct subculture.
a. three-fourths
b. two-thirds
c. one half
d. one-third
e. one-fourth
Why did McDonald’s start displaying warning signs that its coffee is hot after the
famous lawsuit?
a. As a friendly reminder to customers that coffee is in fact hot
b. As a form of advertising that the coffee at McDonald’s is always fresh
c. To try to eliminate further injury and product liability
d. Because the government ordered that these signs be posted
e. So that customers would not think McDonald’s was serving iced coffee
According to the National Business Ethics Survey, ____ is a primary reason that
employees do not report misconduct.
a. the fear of retaliation
b. a concern about safety regulations
c. having poor personal moral values
d. the absence of an ethics hotline
e. a lack of interest
The Nutrition Labeling and Education Act of 1990 can be most closely attributed to
which right of the Consumer Bill of Rights?
a. Right to be heard
b. Right to choose
c. Right to safety
d. Right to fair treatment
e. Right to be informed
Because it can be difficult to draw a boundary between some legal issues and ethical
issues in the workplace, it is important to
a. realize that ethical issues rarely become so important that they reach the courtroom
for resolution.
b. recognize that the most cost-effective way to resolve disputes is through the court
system.
c. have an organizational mechanism for resolving all questionable issues.
d. ensure that legal issues brought by stakeholders outside of the organization are
resolved within the organization.
e. develop a code of conduct to cover every possible issue.
Environmental regulations for social reasons have been necessary because of which of
the following?
a. Most companies eagerly pay for the costs involved with protecting their environment
because they realize their future is closely linked with the future of the environment.
b. Consumers have willingly footed the bill for the costs of protecting the environment
through paying higher prices for products and services.
c. Companies have felt pressured to “voluntarily” pay for environmental protection acts
because they are afraid of the impact on their businesses if they are not viewed as
environmentally responsible organizations.
d. Social reasons have led to regulations such as environmental protection and
preservation because, although most companies voluntarily take on these
responsibilities, a few companies have shirked their share of the responsibility.
e. Social reasons have led to regulations such as environmental protection since most
companies are unwilling to pay for these costs voluntarily.
Which of the following is not an ethical issue in the area of communications?
a. Concealed facts in advertising
b. Bribery
c. False or deceptive advertising
d. Ambiguous statements in advertising
e. Lying
Which of the following is not a typical activity for an ethics officer?
a. Coordinating the U.S. Sentencing Commission annual ethics audit
b. Assessing needs and risks of the ethics program
c. Developing, revising, and disseminating a code of ethics
d. Developing effective training programs
e. Monitoring and auditing ethical conduct
How do product liability lawsuits in Japan compare with those in the United States?
a. Product liability lawsuits are extremely common in Japan and occur much more
frequently than in the United States.
b. Product liability lawsuits are much more common in the United States than they are
in Japan.
c. The overall number of product liability suits in Japan is very similar to the number in
the United States.
d. Although both countries have high rates of product liability lawsuits, the United
States usually has a few more than Japan.
e. There has never been a product liability lawsuit in Japan because Japanese companies
eliminate defects before selling products.
In the ACORN model for handling generational diversity in the workplace, the “N”
stands for
a. not limiting employees’ right to speak out.
b. noticing the problems when generations talk to one another.
c. never forgetting that all employees are valuable.
d. nourishing retention to keep the best employees.
e. notifying people early of workplace reduction plans.
Why is it difficult for the government to hire and retain forensic computer experts to
control the activities of cyber criminals?
a. There are less than fifty high-caliber forensic computer experts in the country.
b. The government is not concerned with these issues and leaves the control up to the
private sector.
c. The government does not have the jurisdiction to seek out and punish those who
commit online crimes.
d. The highly skilled experts are hired away by firms who pay much higher salaries than
the government.
e. Crimes committed online seem mild and unimportant compared to other types of
white-collar crime.
Which of the following types of employees must be paid for overtime work under
governmental labor standards and pay provisions?
a. Administrators
b. Outside sales people
c. Secretaries
d. Executives
e. Professionals
Which of the following is a positive effect associated with the ease of collecting
personal data online?
a. Because of the ease of access, unauthorized use of personal information may occur.
b. Old or inaccurate data may misclassify a customer and in return, poorer customer
service is received.
c. Customers may receive special offers based on their past purchases with companies
that are specifically tailored to their interests.
d. Companies are able to sell information collected online to advertisers and others
without the consumer’s consent.
e. New technology makes it more difficult for law enforcement agents to catch
criminals and for banks to detect fraud.
In which decade was much of the employment law in the United States enacted?
a. 1890s
b. 1930s
c. 1850s
d. 1970s
e. 1990s
What is ISO 14000?
a. National environmental standards that promote a cleaner and safer environment for
all Americans
b. A comprehensive set of environmental standards that encourage a cleaner, safer, and
healthier world
c. The required standard for reporting information about environmental performance to
stakeholders
d. A standardized auditing process that evaluates a company’s environmental
performance
e. International regulatory body that is responsible for punishing companies who are not
in compliance with global environmental standards
Which of the following is not something that can be done with a cookie?
a. Track how often a user visits a particular website
b. Match Internet addresses with specific geographical locations
c. Provide customized website content for a user
d. Collect and store personal information about users
e. Record the sequence in which a customer views pages of a website
Which of the following terms refers to a trading partnership based on dialogue,
transparency, and respect that seeks greater equity in international trade and contributes
to sustainable development?
a. Global reporting initiative
b. Global trading initiative
c. Free trade
d. Fair trade
e. Cooperative trade
What is not a concern that top managers may have to deal with in regards to strategic
philanthropy?
a. Determining whether there are tax incentives for corporate giving
b. Having to defend the company’s commitment to charity to various stakeholder groups
c. Showing support for the firm’s philanthropic efforts
d. Budgeting the resources required to manage philanthropic efforts
e. Being well versed in the performance benefits of social responsibility
Those groups to whom a company is responsible are collectively known as
a. stockholders.
b. society.
c. employees and customers.
d. stakeholders.
e. very important people.
Shortly after World War II, corporate managers
a. were closely scrutinized by their boards of directors.
b. possessed nearly unlimited power.
c. had little decision-making authority over daily matters.
d. rarely used the company’s resources for reasons other than self-interest.
e. were hired away from other firms on a regular basis.
How could the value of employee volunteer programs be enhanced for a firm to better
align these programs with strategic philanthropy goals?
a. Volunteer programs could be oriented to benefit the immediate community
surrounding the firm.
b. Programs could be geared toward improving the morale of the employees who
participate.
c. Programs should emphasize synergies between employees’ current and future
job-related aptitudes and nonprofit needs.
d. Volunteer programs should be mandatory for all employees so as to encourage all
employees to think about social causes.
e. Firms could heavily advertise their volunteer efforts to create a more favorable public
image.
When Hormel Foods implemented an Internet-based procurement system, Hormel’s
relationships with its suppliers were affected in all of the following ways except
a. through tangible investments such as equipment, tools, and software.
b. by making Hormel’s suppliers more attractive to other food companies, which would
increase the prices the suppliers could charge.
c. through intangible investments such as time, effort, and trust.
d. by increased dependency on Hormel’s business in order to justify the cost outlays.
e. through the suppliers’ evaluation to ensure that Hormel was worth the investment.
Which of the following was not included in John F. Kennedy’s Consumer Bill of
Rights?
a. Right to be heard
b. Right to choose
c. Right to safety
d. Right to fair treatment
e. Right to be informed
What is the most influential regulatory agency concerning environmental issues in the
United States?
a. FIFRA
b. FTC
c. Earth Day Council
d. EPA
e. NAAQS
Developing a code to aid employees in their decision making is an example of an
activity for which type of social responsibility?
a. Economic
b. Ethical
c. Philanthropic
d. Legal
e. Governance
Which of the following is least likely to be a relevant perspective for examining
stakeholder issues that are present in a global environment?
a. Economic
b. Eurocentric
c. Legal
d. Ethical
e. Philanthropic
Because no government system is perfect,
a. legal and regulatory systems are constantly evolving and changing in response to
social institutions, including business.
b. the “invisible hand of competition” has replaced many business and economic
regulations.
c. companies do not have to worry about meeting every law and regulation, since they
are likely to change.
d. self-regulatory mechanisms have created less of a need for government oversight.
e. the costs of business regulation have decreased.
What does the Federal Trademark Dilution Act of 1995 require?
a. The law reinforces every person’s right to use company trademarks for free.
b. It requires individuals who registered web addresses with companies’ names to
relinquish their rights to these URLs.
c. It allows cybersquatters to retain sites related to trademarks since they made the first
claim to these particular URLs.
d. It decreases companies’ rights to protect and defend online actions that threaten their
copyrights.
e. It prevents Internet users, both individuals and companies, from placing links
containing another company’s trademark without express consent.
What effect did the 2008-2009 financial crisis have on the call for deregulation?
a. The 2008-2009 financial crisis led the U.S. and other countries to increase pressure
for deregulation.
b. The 2008-2009 financial crisis led the U.S. and other countries to give less attention
to regulatory issues.
c. The 2008-2009 financial crisis led the U.S. and other countries to begin to begin to
reverse the deregulatory trend of the previous decades.
d. The 2008-2009 financial crisis distanced the U.S. from other countries’ stance on
deregulation.
e. The 2008-2009 financial crisis unified proponents and opponents of deregulation.
The design, arrangement, and use of equipment to maximize productivity and minimize
fatigue and physical discomfort are known as
a. comfort engineering.
b. chiropractics.
c. preventative health.
d. massagonics.
e. ergonomics.
What are the arguments for and against high levels of executive compensation?
Answer:
Answers will vary.
How can an organization develop an effective ethics program?
Answer:
Answers will vary.
What are the social reasons for regulation? What are the economic reasons for
regulation?
Answer:
Answers will vary.
What economic impact does a company have on a community?
Answer:
Answers will vary.
Define social responsibility, and then describe three other characterizations that exist
within the definition and meaning of social responsibility.
Answer:
Answers will vary.
Give an example of cause-related marketing and an example of strategic philanthropy.
Answer:
Answers will vary.
What new issues of consumer and business protection have arisen from the increasing
use of the Internet and other technology?
Answer:
Answers will vary.
What is TRUSTe and how does it work?
Answer:
Answers will vary.
What are the performance benefits of social responsibility? Outline the benefits to
investors, customers, and employees.
Answer:
Answers will vary.
Describe the three factors that influence ethical decisions in business, and provide an
explanation of how they affect employees in the workplace.
Answer:
Answers will vary.
Discuss the water privatization efforts in Bolivia as an example of a conventional
business partnership.
Answer:
Answers will vary.
Why might companies be skeptical about responsible competitiveness? What evidence
counters their concerns?
Answer:
Answers will vary.
Describe the fiduciary responsibilities of members of a board of directors.
Answer:
Answers will vary.
What is volunteerism, and who benefits from it?
Answer:
Answers will vary.
What does the “right to be heard” entail?
Answer:
Answers will vary.
What distinguishes cooperatives from traditional businesses?
Answer:
Answers will vary.
Describe the changes in the political system and the resulting rise of special-interest
groups.
Answer:
Answers will vary.
What criteria do investors use for selecting companies to include in a social investment
strategy?
Answer:
Answers will vary.
“The customer is always right.” Explain why this well-known saying is not really true.
Answer:
Answers will vary.
What are some ways that businesses can influence the government?
Answer:
Answers will vary.