Which of the following is nota 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.
What is the AACSB?
a. A major international institution regulating banks around the world
b. An accrediting institution for organizational ethics
c. A non-political international governing body
d. An international organization that promotes a set of principles promoting the teaching
of responsible management in business schools
e. A group that promotes sustainability and environmental awareness
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
What type of fraud involves intentional deception on the part of an individual or group
in order to derive an unfair economic advantage over an organization?
a. Channel
b. Integrative
c. Consumer
d. Product
e. Conventional
The
____was/were enacted to restore confidence in financial reporting and busines ethics aft
er the accounting scandals of the early 2000s.
a. Defense Industry Initiative on Business Ethics and Conduct
b. Sarbanes-Oxley Act
c. Federal Sentencing Guidelines for Organizations
d. Foreign Corrupt Practices Act
e. Dodd-Frank Wall Street Reform and Consumer Protection Act
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
People who believe in , go with the flow because they feel the events in their lives are
uncontrollable.
a. ethical decision making
b. internal locus of control
c. an ethical culture
d. external locus of control
e. significant others.
Kohlberg’s six stages of cognitive moral development can be reduced to three levels of
ethical concern. Persons at the second level
a. define right as that which conforms to the expectations of good behavior of the larger
society.
b. see beyond the norms, laws, and authority of groups or individuals.
c. are concerned with their immediate interests and with external rewards and
punishments.
d. are concerned with their long-term interests and with internal rewards and
punishments.
e. are unethical.
__________involves subordinates simply following the directives of a superior without
question. It demonstrates the influence that significant others can exert in the
workplace.
a. Obedience to authority
b. Locus of control
c. Opportunity
d. Transactional leadership
e. Immediate job context
Which of the following are nottypically secondary stakeholders?
a. Television news anchors
b. Special-interest groups
c. Customers
d. Trade associations
e. Journalists
__________is an independent assessment of the quality, accuracy, and completeness of
a company’s social or ethics report.
a. Publication
b. Verification
c. Auditing
d. Analysis
e. Validation
Accountants must abide by a strict code of ethics that defines their responsibilities to
a. their clients only.
b. their clients and the public interest.
c. the public only.
d. their investors and shareholders.
e. government regulators.
The Kyoto Protocol created in 1997 is an international treaty meant to curb
global_______.
a. natural resource use
b. greenwashing activities
c. water pollution
d. greenhouse gas emissions
e. competition
Which of the following is nota habit of ethical leaders?
a. They are primarily concerned with themselves.
b. They are proactive.
c. They have a passion to do right.
d. They are concerned with stakeholders’ interests.
e. They are role models for organizational values.
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.
A person who offers a facilitation payment in order to secure a contract that will keep
her company from going bankrupt and laying off hundreds of employees may be a(n)
a. egoist.
b. teleologist. c. utilitarian. d. relativist.
e. humanitarian.
Ethics is a part of decision making
a. at all levels of work and management.
b. primarily at the upper management levels of an organization.
c. mostly for policy makers.
d. that is less important than other decision making processes.
e. only at that lower levels of organizational management.
_____________are a primary influence on employee’s ethical behavior because they are
role models for the organization’s
values.
a. Friends
b. Parents
c. Peers
d. Coworkers
e. Leaders
What is the first step in implementing a stakeholder perspective in an organization?
a. Identifying resources and determining urgency
b. Identifying stakeholder groups
c. Identifying stakeholder issues
d. Assessing the corporate culture
e. Assessing organizational commitment to social responsibility
A stakeholder group that is absolutely necessary for a firm’s survival is defined as
a. direct.
b. tertiary.
c. secondary.
d. special-interest.
e. primary.
Organizations can become “bad barrels” not because of unethical individuals but
because
a. the pressure to succeed creates opportunities that reward unethical decisions.
b. the pressure to succeed creates opportunities that punish unethical decisions.
c. they lack leadership.
d. they lack values.
e. they have no “bad apples.”
The relationship between business ethics and age
a. shows a negative correlation.
b. is simple. Greater experience leads to better ethical decision making.
c. is complex, although experience helps older employees make ethical decisions.
d. suggests that employees with less experience have a greater ability to deal with
complex industry-specific ethical issues.
e. does not demonstrate a statistically significant correlation.
Which of the following is a statement that attests that the financial statements made in
an audit are fairly stated, without limitations?
a. Adverse opinion
b. Qualified opinion
c. Unqualified opinion
d. Favorable opinion
e. Disclaimer of opinion
Which two steps of the RADAR model occur when a firm is faced with an ethical
conflict or dilemma.
a. recognize & avoid
b. answer & recover
c. detect & avoid
d. answer & detect
e. recover and detect