Question 1

Divisional managers will most likely report to which member of the top- management team?

Accepted Answer

A) Vice presidents 
B) Senior vice presidents 
C) Executive vice presidents 
D) The board of directors 
A) Vice presidents 
B) Senior vice presidents 
C) Executive vice presidents 
D) The board of directors C

Question 2

Which of the following is an outside stakeholder group?

Accepted Answer

A) The workforce 
B) Shareholders 
C) Managers 
D) Unions 
A) The workforce 
B) Shareholders 
C) Managers 
D) Unions D

Question 3

The Organizational Insight "Conflicting Interests in Health Care" discusses the relationship between doctors and pharmaceutical companies. The pharmaceutical companies entice doctors to prescribe their drugs through free samples, free meals, and entertainment. Using the three ethical models (utilitarian, moral rights and justice), discuss the thought process a doctor would have when faced with this situation.

Accepted Answer

This question is a good application of the ethics models. You might have them answer as phrases. Below are some examples:
Utilitarian: "Will more people be helped or harmed if I prescribe this drug?" Moral Rights: "Am I violating patient rights by prescribing this drug?"
Justice: "What is the fairest solution for all involved?"

Question 4

An organization's mission statement can be used to guide ethical behavior.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is not one of the benefits of the "Reputation Effect?"

Accepted Answer

A) It reduces transaction costs. 
B) It allows organizations to charge a higher price for their products. 
C) Customers have a positive view of the organization. 
D) It helps managers follow ethical rules and guidelines. 
E) All are benefits of the reputation effect. 
A) It reduces transaction costs. 
B) It allows organizations to charge a higher price for their products. 
C) Customers have a positive view of the organization. 
D) It helps managers follow ethical rules and guidelines. 
E) All are benefits of the reputation effect.

Question 6

A manager following the utilitarian model when faced with a moral decision would most likely examine the fundamental rights and privileges of the people affected by the decision.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following is an inducement?

Accepted Answer

A) High- quality inputs 
B) Social and economic infrastructure 
C) Stock appreciation 
D) Free and fair collective bargaining 
A) High- quality inputs 
B) Social and economic infrastructure 
C) Stock appreciation 
D) Free and fair collective bargaining

Question 8

A manager chooses to tell affected employees about an impending layoff, despite the damage this causes to the stock price of the organization. She did this because it was "the right thing to do." Which model of ethics is she using?

Accepted Answer

A) Utilitarian 
B) Justice 
C) Moral Rights 
D) None of the above 
A) Utilitarian 
B) Justice 
C) Moral Rights 
D) None of the above

Question 9

Which of the following are generally used to solve agency problems?

Accepted Answer

A) Principles not susceptible to moral hazard 
B) Ethics Credo's 
C) Governance mechanisms 
D) A more authoritarian management structure 
A) Principles not susceptible to moral hazard 
B) Ethics Credo's 
C) Governance mechanisms 
D) A more authoritarian management structure

Question 10

The rewards that stakeholders receive for participating in an organization are called _________.

Accepted Answer

A) payoffs 
B) kickbacks 
C) inducements 
D) contributions 
A) payoffs 
B) kickbacks 
C) inducements 
D) contributions

Question 11

Which of the following inside stakeholders contributes money and capital?

Accepted Answer

A) The workforce 
B) Shareholders 
C) Trade unions 
D) Managers 
A) The workforce 
B) Shareholders 
C) Trade unions 
D) Managers

Question 12

Customers are usually the largest outside stakeholder group.

Accepted Answer

A) True 
 B)False

Question 13

Who usually ensures that an organization's internal operations match strategic objectives?

Accepted Answer

A) The CEO 
B) The production manager 
C) The executive vice president of production 
D) The president 
A) The CEO 
B) The production manager 
C) The executive vice president of production 
D) The president

Question 14

The "Tragedy of the Commons" example refers to the ethical dilemmas faced when individuals pursue their own self interests.

Accepted Answer

A) True 
 B)False

Question 15

The chain of command in a large organization is as follows:

Accepted Answer

A) president, divisional managers, executive vice presidents, vice presidents 
B) CEO, president, executive vice presidents, vice presidents 
C) board, CEO, executive vice presidents, presidents 
D) CEO, president, senior vice presidents, executive vice presidents 
A) president, divisional managers, executive vice presidents, vice presidents 
B) CEO, president, executive vice presidents, vice presidents 
C) board, CEO, executive vice presidents, presidents 
D) CEO, president, senior vice presidents, executive vice presidents

Question 16

The board of directors selects the organization's top- management team.

Accepted Answer

A) True 
 B)False

Question 17

Roger observed his manager charging personal long distance calls to the company. Roger sent an anonymous letter about the incident to an outside board. Roger:

Accepted Answer

A) is an ethics officer. 
B) is on an ethics committee. 
C) was behaving unethically. 
D) is a whistle- blower. 
A) is an ethics officer. 
B) is on an ethics committee. 
C) was behaving unethically. 
D) is a whistle- blower.

Question 18

Shareholders are important inside stakeholders.

Accepted Answer

A) True 
 B)False

Question 19

Contributions are defined as what the organization gives back to society.

Accepted Answer

A) True 
 B)False

Question 20

Balancing short- term and long- term goals is hard because:

Accepted Answer

A) organizations do not place enough emphasis on operative goals. 
B) official goals focus on the long- term and operative goals focus on the short- term. 
C) stakeholder groups have different preferences for the time frame an organization should use to pursue goals. 
D) official goals focus on the short- term and operative goals focus on the long- term. 
A) organizations do not place enough emphasis on operative goals. 
B) official goals focus on the long- term and operative goals focus on the short- term. 
C) stakeholder groups have different preferences for the time frame an organization should use to pursue goals. 
D) official goals focus on the short- term and operative goals focus on the long- term.

Divisional managers will most likely report to which member of the top- management team?

Which of the following is an outside stakeholder group?

An organization's mission statement can be used to guide ethical behavior.

Which of the following is not one of the benefits of the "Reputation Effect?"

A manager following the utilitarian model when faced with a moral decision would most likely examine the fundamental rights and privileges of the people affected by the decision.

Which of the following is an inducement?

A manager chooses to tell affected employees about an impending layoff, despite the damage this causes to the stock price of the organization. She did this because it was "the right thing to do." Which model of ethics is she using?

Which of the following are generally used to solve agency problems?

The rewards that stakeholders receive for participating in an organization are called _________.

Which of the following inside stakeholders contributes money and capital?

Customers are usually the largest outside stakeholder group.

Who usually ensures that an organization's internal operations match strategic objectives?

The "Tragedy of the Commons" example refers to the ethical dilemmas faced when individuals pursue their own self interests.

The chain of command in a large organization is as follows:

The board of directors selects the organization's top- management team.

Roger observed his manager charging personal long distance calls to the company. Roger sent an anonymous letter about the incident to an outside board. Roger:

Shareholders are important inside stakeholders.

Contributions are defined as what the organization gives back to society.

Balancing short- term and long- term goals is hard because:

Organizations and Organizational Effectiveness

Managing in a Changing Global Environment

Basic Challenges of Organizational Design

Designing Organizational Structure: Coordination, Communication, and Control

Designing Organizational Structure: Specialization and Coordination

Creating and Managing Organizational Culture

Organizational Design and Strategy in a Changing Global Environment

Organizational Design, Competencies, and Technology

Types and Forms of Organizational Change

Organizational Transformations: Birth, Growth, Decline, and Death

Decision Making, Learning, Knowledge Management, and Information Technology

Innovation, Entrepreneurship, and Creativity

Managing Conflict, Power, and Politics

Filters

Exam 2: Organizational Stakeholders, Management, and Ethics

Divisional managers will most likely report to which member of the top- management team?

Which of the following is an outside stakeholder group?

An organization's mission statement can be used to guide ethical behavior.

Which of the following is not one of the benefits of the "Reputation Effect?"

A manager following the utilitarian model when faced with a moral decision would most likely examine the fundamental rights and privileges of the people affected by the decision.

Which of the following is an inducement?

A manager chooses to tell affected employees about an impending layoff, despite the damage this causes to the stock price of the organization. She did this because it was "the right thing to do." Which model of ethics is she using?

Which of the following are generally used to solve agency problems?

The rewards that stakeholders receive for participating in an organization are called _________.

Which of the following inside stakeholders contributes money and capital?

Customers are usually the largest outside stakeholder group.

Who usually ensures that an organization's internal operations match strategic objectives?

The "Tragedy of the Commons" example refers to the ethical dilemmas faced when individuals pursue their own self interests.

The chain of command in a large organization is as follows:

The board of directors selects the organization's top- management team.

Roger observed his manager charging personal long distance calls to the company. Roger sent an anonymous letter about the incident to an outside board. Roger:

Shareholders are important inside stakeholders.

Contributions are defined as what the organization gives back to society.

Balancing short- term and long- term goals is hard because:

Organizations and Organizational Effectiveness

Managing in a Changing Global Environment

Basic Challenges of Organizational Design

Designing Organizational Structure: Coordination, Communication, and Control

Designing Organizational Structure: Specialization and Coordination

Creating and Managing Organizational Culture

Organizational Design and Strategy in a Changing Global Environment

Organizational Design, Competencies, and Technology

Types and Forms of Organizational Change

Organizational Transformations: Birth, Growth, Decline, and Death

Decision Making, Learning, Knowledge Management, and Information Technology

Innovation, Entrepreneurship, and Creativity

Managing Conflict, Power, and Politics

Filters