Quiz Questions: Chapter Eight
1. The traditional, “rational” model of the business organization is defined it as a structure
of formal relationships, which are designed to achieve a goal efficiently.
a. True
2. A firm’s organizational chart, identifying the formal and informal hierarchies of authority,
exemplifies the fundamental reality of the organization.
a. True
3. In this view, the employee’s main moral duty is to work toward the goals of the firm.
This view is referred to as:
a. Law of Legitimacy
b. Law of Structure
c. Law of Agency
4. Conflicts of interest arise when employees have a private interest in the outcome of a
task in which they are engaged in that is possibly antagonistic to the firm’s interests and
substantial enough that it might affect the employee’s independent judgment on the
firm’s behalf.
a. True
5. Potential conflicts of interest may or may not be ethical, depending on the probability
that the employee’s judgment will affected by the conflict of interest.
a. True
6. A firm’s main moral duty to its employees is to provide them with:
a. Clean working environment
b. Friendly supervisors
c. Medical and dental insurance
7. Each year, __________ percent of the job force suffers a job-related injury or illness
each year.
a. 5
b. 10
c. 15
d. 20
© 2012 Pearson Education, Inc. All Rights Reserved.
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© 2012 Pearson Education, Inc. All Rights Reserved.
119
8. Risks are sometimes unavoidable and acceptable, as long as:
a. Employees are not coerced
b. Employees are fully compensated for assuming them and they do so freely and
knowingly
c. No one else has the expertise to do the work
9. Employees’ rights to privacy must be balanced against employers’ rights to know certain
information about their activities.
a. True
10. Whistle blowing–the attempt by an employee to disclose wrongdoing in an organization–
can take two forms.
a. True
11. Whistle blowing seldom has heavy personal costs to the whistleblower because it is
justified when there is clear evidence that the firm’s activity is seriously harming others
and reasonable attempts to prevent it by informing management have failed.
a. True
12. Skills that an employee acquires by working for a company can be and usually are
considered part of her or her person and are not property of the employer.
a. True
13. Workers risks on the job in less developed countries are affected by:
a. Labor markets that are not competitive or job risks not yet known.
b. Workers might accept risks unknowingly because the worker doesn’t have
access to the risk information.
c. Workers might knowingly accept risks because they lack mobility to enter less
risky industries.
14. Being that the United States is a developed and sophisticated country, there are no
sweatshops within its boundaries.
a. True
15. Immanuel Kant’s argument about moral rights supports the employee’s right to give or
withhold their consent before the private aspects of their lives are investigated.
a. True