Question 1

Even if management is behaving irresponsibly toward investors, stockholders may be reluctant to take action because

Accepted Answer

A)  a management change may drive the stock price down. 
B)  it's too much trouble. 
C)  the creditors probably wouldn't support them. 
D)  the board of directors will overrule them. 
E)  company management will retaliate. 
A)  a management change may drive the stock price down. 
B)  it's too much trouble. 
C)  the creditors probably wouldn't support them. 
D)  the board of directors will overrule them. 
E)  company management will retaliate.

Question 2

Which of the following questions would a company dedicated to increasing its level of corporate social responsibility be least likely to ask?

Accepted Answer

A)  "How can we afford to pay our employees more?" 
B)  "Should we offer more sales in order to better serve our customers?" 
C)  "Can we purchase better quality ingredients while still making a profit?" 
D)  "Which charitable donations will make our investors most happy?" 
E)  "If our profits go up, can we lay off some of our employees?" 
A)  "How can we afford to pay our employees more?" 
B)  "Should we offer more sales in order to better serve our customers?" 
C)  "Can we purchase better quality ingredients while still making a profit?" 
D)  "Which charitable donations will make our investors most happy?" 
E)  "If our profits go up, can we lay off some of our employees?"

Question 3

The proactive social responsibility stance is used by firms who actively seek opportunities to contribute to the well-being of society.

Accepted Answer

A) True 
 B)False

Question 4

Steve Beatty, the head salesperson of a computer company, contracts with a supplier for technical equipment. Just before the winter holiday, a greeting card comes to his home address from the president of the supplier. In it, he finds a Best Buy gift card worth $500, with a note that says, "Go buy some toys for the kids." His children are excited, because they had been looking forward to getting some newly released video game equipment. Beatty looks at his firm's formal code of ethics and finds that employees are cautioned not to accept gifts from suppliers for their own personal use. It does not specifically say that gifts for family members are included. He decides to keep the card.
Which of the following, if true, strengthens Beatty's ethical position?

Accepted Answer

A)  The gift card has no expiration date, so he can wait to use it later, when he has moved to another position in his company where no conflict of interest exists. 
B)  The greeting and the gift card were received at his home residence, not at his place of work. 
C)  The salesman has just spent $500 of his own money on video game equipment for his children at Best Buy, so he has no immediate reason to use the gift card. 
D)  The president of the supplier is Beatty's father-in-law, so the gift is a personal one for his grandchildren. 
E)  On checking, Beatty learns that the supplier sent gift cards of lower value to other salespersons in his company. 
A)  The gift card has no expiration date, so he can wait to use it later, when he has moved to another position in his company where no conflict of interest exists. 
B)  The greeting and the gift card were received at his home residence, not at his place of work. 
C)  The salesman has just spent $500 of his own money on video game equipment for his children at Best Buy, so he has no immediate reason to use the gift card. 
D)  The president of the supplier is Beatty's father-in-law, so the gift is a personal one for his grandchildren. 
E)  On checking, Beatty learns that the supplier sent gift cards of lower value to other salespersons in his company.

Question 5

What would constitute a conflict of interest in a business setting?

Accepted Answer

A conflict of interest occurs

Question 6

Wilson Products installed a low-quality fire alarm in its facility in compliance with local regulations. The owner stated, "We've never had a fire and we don't actually need such a system, but I am forced to install it because of local regulations. I therefore didn't want to pay too much for the system." Which of the following stances toward social responsibility is evident here?

Accepted Answer

A)  Obstructionist 
B)  Accommodative 
C)  Defensive 
D)  Proactive 
E)  Conservative financial management 
A)  Obstructionist 
B)  Accommodative 
C)  Defensive 
D)  Proactive 
E)  Conservative financial management

Question 7

There are four areas of concern regarding ethics in advertising. They are

Accepted Answer

A)  truth-in-advertising, misleading pricing, bait-and-switch advertising, stealth advertising. 
B)  advertising of counterfeit brands, stealth advertising, morally objectionable advertising, and truth-in-advertising. 
C)  bait-and-switch advertising, advertising of counterfeit brands, stealth advertising, and morally objectionable advertising. 
D)  truth-in-advertising, misleading price advertising, celebrity advertising, and morally objectionable advertising. 
E)  misleading price advertising, truth-in-advertising, celebrity advertising, and advertising claims about product performance that are not true. 
A)  truth-in-advertising, misleading pricing, bait-and-switch advertising, stealth advertising. 
B)  advertising of counterfeit brands, stealth advertising, morally objectionable advertising, and truth-in-advertising. 
C)  bait-and-switch advertising, advertising of counterfeit brands, stealth advertising, and morally objectionable advertising. 
D)  truth-in-advertising, misleading price advertising, celebrity advertising, and morally objectionable advertising. 
E)  misleading price advertising, truth-in-advertising, celebrity advertising, and advertising claims about product performance that are not true.

Question 8

Which of the following is not an argument against a socially responsible role by a business firm?

Accepted Answer

A)  Some individuals believe that business involvement will increase business control and power in addressing solutions for problems. 
B)  Business should help solve the problems because business contributed to the problem. 
C)  Some people oppose any business activity that cuts into profits to investors. 
D)  Companies lack the expertise to deal with many of the problems in society; therefore, business should let experts handle those matters. 
E)  Many businesses have been able to influence government agencies that are supposed to regulate their industries. 
A)  Some individuals believe that business involvement will increase business control and power in addressing solutions for problems. 
B)  Business should help solve the problems because business contributed to the problem. 
C)  Some people oppose any business activity that cuts into profits to investors. 
D)  Companies lack the expertise to deal with many of the problems in society; therefore, business should let experts handle those matters. 
E)  Many businesses have been able to influence government agencies that are supposed to regulate their industries.

Question 9

Yorkton Electric has taken an accommodative stance towards social responsibility. This means that

Accepted Answer

A)  it will focus only on its profitability, even if it means breaking the law. 
B)  it will seek out opportunities to contribute to the well-being of society. 
C)  it will take a proactive position on social issues. 
D)  it will respond to social concerns beyond the bare minimum if specifically asked. 
E)  it will take on only the minimal amount of responsibility required by law and standard business practice. 
A)  it will focus only on its profitability, even if it means breaking the law. 
B)  it will seek out opportunities to contribute to the well-being of society. 
C)  it will take a proactive position on social issues. 
D)  it will respond to social concerns beyond the bare minimum if specifically asked. 
E)  it will take on only the minimal amount of responsibility required by law and standard business practice.

Question 10

Counterfeit goods are harmful to companies that have spent a lot of time and money developing brand name goods for sale, but counterfeit products are beneficial for consumers because they get lower prices for expensive products like counterfeit motorcycles and pharmaceuticals.

Accepted Answer

A) True 
 B)False

Question 11

What are the six major areas of social responsibility? Provide an example of each.

Accepted Answer

The six areas of social responsibility a

Question 12

MKD Transportation operates a fleet of container ships and tankers that transport goods around the globe. Company executives have just been contacted by the media with a credible report that one of their ships is leaking an oily substance off the coast of Belize, but the captain of the ship in question has not notified the company of any problem. Environmental groups and the government of Belize have demanded that the company admit responsibility and immediately begin cleanup. Managers at MKD claim to treat their employees in an ethical fashion. What matters might this behaviour cover?

Accepted Answer

Issues such as hiring, firing,

Question 13

What is a social audit?

Accepted Answer

A social audit is a systematic

Question 14

All things considered, the utility norm is probably the best one to use when making decisions about ethics.

Accepted Answer

A) True 
 B)False

Question 15

All of the following are functions of codes of ethics except

Accepted Answer

A)  they increase public confidence in a firm or its industry. 
B)  they ensure that unethical behaviour will not occur in the firm. 
C)  they may help stem the tide of government regulation. 
D)  they improve internal operations by providing consistent ethical standards. 
E)  they help management respond to problems that arise as a result of unethical behaviour. 
A)  they increase public confidence in a firm or its industry. 
B)  they ensure that unethical behaviour will not occur in the firm. 
C)  they may help stem the tide of government regulation. 
D)  they improve internal operations by providing consistent ethical standards. 
E)  they help management respond to problems that arise as a result of unethical behaviour.

Question 16

The United Nations "cap and trade" system gives certain companies (i.e., those that have bought carbon credits) the right to pollute the atmosphere.

Accepted Answer

A) True 
 B)False

Question 17

A poll of 12 000 people in 11 different countries revealed that ________ percent of those polled were willing to spend extra money to fight climate change.

Accepted Answer

A)  90 
B)  75 
C)  65 
D)  45 
E)  20 
A)  90 
B)  75 
C)  65 
D)  45 
E)  20

Question 18

Due to his formal position, John has access to certain information. If John uses this information to facilitate unethical behaviour and to keep it secret, he is illustrating which of the following reasons for unethical behaviour?

Accepted Answer

A)  Pressure 
B)  Opportunity 
C)  Rationalization 
D)  Manipulation 
E)  None of these 
A)  Pressure 
B)  Opportunity 
C)  Rationalization 
D)  Manipulation 
E)  None of these

Question 19

Executives at MKD Transportation have just been contacted by the media with a report that one of their ships is leaking an oily substance off the coast of Belize. If MKD adopts an accommodative stance, how will the company respond to the media and demands by the government of Belize and environmental groups?

Accepted Answer

MKD will likely admit responsi

Question 20

You are managing a company that either has to cut the dividend or cut 10% of the company's workforce. What do you do? Why?

Accepted Answer

Answers will vary, depending on individu

Even if management is behaving irresponsibly toward investors, stockholders may be reluctant to take action because

Which of the following questions would a company dedicated to increasing its level of corporate social responsibility be least likely to ask?

The proactive social responsibility stance is used by firms who actively seek opportunities to contribute to the well-being of society.

What would constitute a conflict of interest in a business setting?

There are four areas of concern regarding ethics in advertising. They are

Which of the following is not an argument against a socially responsible role by a business firm?

Yorkton Electric has taken an accommodative stance towards social responsibility. This means that

Counterfeit goods are harmful to companies that have spent a lot of time and money developing brand name goods for sale, but counterfeit products are beneficial for consumers because they get lower prices for expensive products like counterfeit motorcycles and pharmaceuticals.

What are the six major areas of social responsibility? Provide an example of each.

What is a social audit?

All things considered, the utility norm is probably the best one to use when making decisions about ethics.

All of the following are functions of codes of ethics except

The United Nations "cap and trade" system gives certain companies (i.e., those that have bought carbon credits) the right to pollute the atmosphere.

A poll of 12 000 people in 11 different countries revealed that ________ percent of those polled were willing to spend extra money to fight climate change.

Due to his formal position, John has access to certain information. If John uses this information to facilitate unethical behaviour and to keep it secret, he is illustrating which of the following reasons for unethical behaviour?

You are managing a company that either has to cut the dividend or cut 10% of the company's workforce. What do you do? Why?

Understanding the Canadian Business System

The Environment of Business

Entrepreneurship, Small Business, and New Venture Creation

The Global Context of Business

Managing the Business Enterprise

Organizing the Business Enterprise

Managing Human Resources and Labour Relations

Motivating, Satisfying, and Leading Employees

Operations Management, Productivity, and Quality

Understanding Accounting

Understanding Marketing Principles and Developing Products

Pricing, Promotion, and Distributing Products

Money and Banking

Finacial Decisions and Risk Management

Filters

Exam 3: Conducting Business Ethically and Responsibly

Even if management is behaving irresponsibly toward investors, stockholders may be reluctant to take action because

Which of the following questions would a company dedicated to increasing its level of corporate social responsibility be least likely to ask?

The proactive social responsibility stance is used by firms who actively seek opportunities to contribute to the well-being of society.

What would constitute a conflict of interest in a business setting?

There are four areas of concern regarding ethics in advertising. They are

Which of the following is not an argument against a socially responsible role by a business firm?

Yorkton Electric has taken an accommodative stance towards social responsibility. This means that

Counterfeit goods are harmful to companies that have spent a lot of time and money developing brand name goods for sale, but counterfeit products are beneficial for consumers because they get lower prices for expensive products like counterfeit motorcycles and pharmaceuticals.

What are the six major areas of social responsibility? Provide an example of each.

What is a social audit?

All things considered, the utility norm is probably the best one to use when making decisions about ethics.

All of the following are functions of codes of ethics except

The United Nations "cap and trade" system gives certain companies (i.e., those that have bought carbon credits) the right to pollute the atmosphere.

A poll of 12 000 people in 11 different countries revealed that ________ percent of those polled were willing to spend extra money to fight climate change.

Due to his formal position, John has access to certain information. If John uses this information to facilitate unethical behaviour and to keep it secret, he is illustrating which of the following reasons for unethical behaviour?

You are managing a company that either has to cut the dividend or cut 10% of the company's workforce. What do you do? Why?

Understanding the Canadian Business System

The Environment of Business

Entrepreneurship, Small Business, and New Venture Creation

The Global Context of Business

Managing the Business Enterprise

Organizing the Business Enterprise

Managing Human Resources and Labour Relations

Motivating, Satisfying, and Leading Employees

Operations Management, Productivity, and Quality

Understanding Accounting

Understanding Marketing Principles and Developing Products

Pricing, Promotion, and Distributing Products

Money and Banking

Finacial Decisions and Risk Management

Filters