Most U.S. companies have a written code of ethical conduct.
Norms of compensatory justice require that fair criteria be used to assign benefits and
burdens.
An implied warranty is a written warranty arising out of reasonable expectations that a
product will both fulfill its ordinary purpose and fulfill the particular purpose of the
buyer.
In addition to unprecedented wealth creation and new material comforts, capitalism also
brings in risks of economic shocks.
The ecosystem is home to multiple biospheres.
A critical function of managers is to create strong competitive strategies that enable a
company to meet its strategic objectives even if it means encouraging ethical
compromise.
The conventionalist ethic is a thin justification for questionable behavior by managers.
International law found in treaties, conventions, and trade agreements strongly address
the social impacts of businesses.
Illegal gratuity refers to an agreement to exchange something of value for an official
act.
NGOs are a major force in the ways that government and business operate.
Corporations are formed under national incorporation laws.
Governments advance corporate responsibility mainly with binding national regulation.
Ozone-depleting gases such as chlorofluorocarbons are tiny, tough molecules that defy
natural breakdown processes.
The Toxics Release Inventory is an Environmental Protection Agency Program that
requires facilities handling any of 650 hazardous chemicals to disclose amounts each
year that are released or transferred.
Companies must disclose their compensation plans and the annual compensation of the
top five executive officers to shareholders.
Political scientist Thomas R. Dye identified an “institutional elite” of individuals who
occupied the top positions in 10 sectors.
The agreement by which an employee exchanges his/her labor in return for specific pay
and working conditions is known as a compromise agreement.
Sometimes those using the name multinational mean to imply that these companies
have erased national allegiances, becoming itinerant firms that move investment and
activity from nation to nation in search of profits.
The Food and Drug Administration has the authority to regulate the quality, safety, and
labeling of poultry, meat, eggs, and alcoholic beverages.
Guidance is information published in nonbinding documents like memoranda and
circulars intended to clarify official regulations.
Liberalism is a word denoting both the ideology of using markets to organize society
and a set of specific policies to free markets from state intrusion.
Sexual harassment is illegal under Title VII of the Civil Rights Act of 1957.
Participation in affinity groups decreases an individual’s sense of isolation in a work
culture.
Corporate charters require the directors of the company to protect the financial interests
of the company’s stockholders.
Stock options give an executive the right to buy the company’s stock at a variable price
in the future and under conditions determined by the board of directors.
The Environmental Protection Agency sets drinking water standards and also regulates
bottled water.
According to sociologist C. Wright Mills, the American society was a pyramid of power
and status where a group of elites carried out the lieutenant’s policies.
Milton Friedman, his colleagues, and their free market ideas came to be called the
Chicago School.
The dominance model believes that society is undemocratic in its operations.
A progressive business model is one in which the central strategy for creating value is
based on meeting market demands.
With a restricted stock, the recipient receives dividends and can vote the shares but
cannot sell them until the restriction is lifted.
When compensation committees base salaries and bonuses on median levels in a group
of peer companies, they often choose larger peers.
The primary motive of companies investing in LDCs is getting an adequate return on
capital invested.
Externalities are costs of production borne by the enterprise that causes them.
The progressive movement was a turn-of-the-nineteenth-century social movement that
associated moderate social reform with progress.
Most companies begin with an early founding impulse for truth, justice, and the
stakeholder way.
The Sarbanes-Oxley Act requires that accounting firm auditors of a company be rotated
every three years.
Rights have corresponding duties associated with them.
The Emergency Economic Stabilization Act prohibited federal regulators from
exchanging funds for an ownership interest in banks.
“Competitive advantage of nations” is a phrase coined by Joseph Stiglitz, identifying a
nation as having a cluster of similar producers which gives the nation a special
advantage over other countries.
What type of change is caused by the processes of job creation and job destruction that
alter the mix of work in an economy?
A.Technological
B.Demographic
C.Structural
D.Legislative
Which of the following is NOT an example of an ecosystem service?
A.A coral reef that stabilizes seabeds.
B.Pollination of crops.
C.A land that has stopped producing water.
D.Pest control by birds.
According to the Gini index, the cause of most of the rise in world income inequality is
a(n):
A.growing gap between the peoples of rich and poor nations.
B.increasing trend toward liberalization.
C.growing separation of rich and poor within nations.
D.transition from high to low fertility in nations.
According to Karl Marx and Friedrich Engels:
A.the basis for socialism was an inevitable process of class struggle underlying and
explaining the history of human society.
B.in the free market, central planning is more burdensome than naturally occurring
problems in the market.
C.under socialism the working class is exploited by the owners of capital, who pay low
wages for dehumanizing work.
D.free markets harnessed greed for the public good and protected consumers from
abuse.
This agreement was formed in 1967 by five countriesthe Philippines, Indonesia,
Malaysia, Singapore, and Thailand.
A.EU
B.NAFTA
C.Mercosur
D.ASEAN
The philosophy of an open society in which the state does not interfere with rights of
the individuals is known as:
A.neoliberalism.
B.embedded liberalism.
C.liberalism.
D.racism.
Which of the following countries has a feminine culture wherein cooperation and
compromise have much higher priority than assertiveness and ambition?
A.The United States
B.Japan
C.Mexico
D.Scandinavia
The law of _____ addresses the issue of private wrongs committed by one person
against another person or his/her property.
A.unjust enrichment
B.torts
C.contracts
D.evidence
Which of the following is NOT an ideology that facilitated the Industrial Revolution?
A.Constitutional democracy
B.Communism
C.Darwinism
D.Social Darwinism
Which of the following abolished slavery?
A.The Emancipation Proclamation
B.Executive Order 13526
C.The Sixteenth Amendment
D.The Thirteenth Amendment
Which of the following is the largest and most powerful peak association in the United
States?
A.The National Federation of Independent Businesses
B.The National Association of Manufacturers
C.The U.S. Chamber of Commerce
D.The Business Roundtable
Projects that compensate for all or part of a company’s greenhouse gas emissions by
eliminating the equivalent sum of those emissions from another source are known as
carbon:
A.footprints.
B.sequestrations.
C.offsets.
D.management systems.
In theory, _____ is a scientific process leading to an objective, quantitative measure of
the risks posed by a substance.
A.contingent valuation
B.risk assessment
C.risk management
D.cost-benefit analysis
The clause in Article I, Section 8 of the Constitution that gives the Congress the power
to regulate business is called the:
A.Commerce Clause.
B.Contract Clause.
C.Establishment Clause.
D.Vesting Clause.
The most widely used index measure of a corporation’s “multinationality” is called the:
A.LDC.
B.TNI.
C.FDI.
D.TNC.
Which of the following is NOT a part of the principles of good regulation set forth by
the World Bank?
A.Increase court involvement in business matters.
B.Focus on enhancing property rights.
C.Expand the use of technology.
D.Make reform a continuous process.
Brain research into neural sensitivity affirms this ethic if it is defined as moral intuition
enlightened by experience and ethical education.
A.The intuition ethic
B.The rights ethic
C.The equal freedom ethic
D.The virtue ethic
The purpose of this concept is to appraise the overall impact of a firm’s operations by
adding non-financial measures to traditional financial results.
A.Triple bottom line
B.Traditional business model
C.Progressive business model
D.Code of conduct
Which legal doctrine, created by the Supreme Court in 1909, states that corporations are
liable for the actions of employees who commit a crime in the course of their
employment when their act was for the benefit of the company?
A.Res judicata
B.Res ipsa loquitur
C.Respondeat superior
D.Quid pro quo
When the Department of Agriculture sets standards for and inspects foods entering the
production process, it is:
A.regulating socially desirable goods and services.
B.resolving national and global problems.
C.regulating to protect special interests.
D.regulating socially desirable production methods.
_____ occurs when a lawmaker or official seeks or receives anything of value because
of an official action taken in the past or to be performed in the future.
A.Illegal gratuity
B.Rigging
C.Bribery
D.Lobbying
A support network formed by employees who personify an attribute associated with
discrimination, stereotyping, or social isolation is known as a(n) _____ group.
A.personal union
B.affinity
C.hierarchical
D.citizen
Contingent valuation is the method of:
A.assigning a price to ecological goods that are not traded in markets.
B.calculating the dollar amount that people exposed to a risk are willing to pay to
reduce the risk of premature death.
C.estimating economic values for ecosystem services that directly affect market prices.
D.harnessing market forces to motivate compliance with regulatory goals.
Systematic efforts made by a company to recruit from different groups, promote
tolerance, and modify corporate cultures to include nonmainstream employees are
known as:
A.tokenism.
B.diversity management.
C.ethnic nepotism.
D.meritocracy.
Most companies, including nearly all of the largest multinationals, vary in their reaction
to pressures in the operating environment across a spectrum from reluctance to
enthusiasm. At the right of this spectrum:
A.the extent of companies’ citizenship is determined by the power of stakeholders over
their behavior.
B.companies accept social obligations and may work to mitigate adverse impacts on
society before regulations can be passed.
C.companies focus on making a profit and resist demands to go beyond the minimum
duty of obeying the law.
D.companies seek to be proactive by anticipating demands and resolving problems
before they arise.
Which of the following is an assumption of the market capitalism model?
A.Government intervention in economic life is significant.
B.Individuals can own private property and freely risk investments.
C.Consumers have limited knowledge about products and prices.
D.Limited information prevents individuals from making completely rational decisions.
A set of economic policies prescribed to correct flaws in a national economy is known
as:
A.the Washington Consensus.
B.a structural adjustment program.
C.autarky.
D.liberalization.
Which of the following statements about the requirements of proxy statements is true?
A.The proposed resolution must be presented to the company for approval at least 100
days before the annual meeting.
B.Stockholders must own $3,000 or more shares for at least one year.
C.The proposal cannot exceed 1,000 words.
D.A shareholder may submit only one proposal for a particular shareholder meeting.
Which of the following situations contributed to the Industrial Revolution?
A.Society that was low on capital and labor
B.Closed society
C.Society that encouraged individual initiative
D.Inadequate transportation
Kinds of decisions made form a part of:
A.assumptive values.
B.tacit underlying values.
C.espoused values.
D.artifacts.
Which of the following ethical principles is primarily a perfectionist rule for
interpersonal relations?
A.The Golden Rule
B.The organization ethic
C.The Doctrine of the Mean
D.The principle of equal freedom
Which of the following social movements attacked business for contributing to a range
of social ills including racism and sexism, consumer fraud, dangerous and alienating
work, political corruption, and war profiteering?
A.Movements for civil rights, euthanasia, and the environment and against the
Vietnamese War.
B.Movements for civil rights, consumer rights, euthanasia and against the Vietnamese
War.
C.Movements for civil rights, Protestant ethics, and the environment and against the
Vietnamese War.
D.Movements for civil rights, consumer rights, and the environment and against the
Vietnamese War.
_____ occurs when networks of economic, political, social, military, scientific, and
environmental interdependence grow to span worldwide distances.
A.Globalization
B.Sovereignty
C.Socialism
D.Protectionism
Define bluewashing.
Distinguish between the progressive business model and the traditional model as they
relate to corporate responsibility.
What changes were brought about by the Civil Rights Act of 1964?
Discuss the stakeholder model of the BGS relationship.
Briefly explain international codes of conduct with reference to the Sullivan Principles.
What does hazard assessment do?
Poorer countries generally have heavier regulation. How does this impact business?
Discuss the importance of the BGS field.
To complete the cycle of CSR implementation, companies can assess and report
information about their social performance. What are the two main purposes that
companies achieve by publishing such reports?
What is a business process?
Define warranty. What are the different types of warranties?
Discuss the ancient agrarian societies of Greece and Rome.
Discuss the negative economic and social effects of FDI.
What conclusions can be drawn from the countervailing forces model in the BGS
relationship?
What is a proxy card?
What is an employment contract?
What are the basic reasons for protectionism existing in the trade histories of all
nations?
Explain the difference between a civil court awarding compensatory damages and
punitive damages to a plaintiff.