Question 1

How do issues of social responsibility and ethics affect small business?

Accepted Answer

Small businesses must address

Question 2

The International Chamber of Commerce estimated that the global trade in fake goods in 2014 was worth

Accepted Answer

A)  $200 million. 
B)  $500 million. 
C)  $30.5 billion. 
D)  $300.8 billion. 
E)  $1.7 trillion. 
A)  $200 million. 
B)  $500 million. 
C)  $30.5 billion. 
D)  $300.8 billion. 
E)  $1.7 trillion.

Question 3

With regard to the "cap and trade" system for trading carbon credits, it is correct to say that

Accepted Answer

A)  very little fraud has been uncovered in the system. 
B)  the system has proven to be very effective. 
C)  studies show that countries in Asia are not interested in the system. 
D)  companies in developing countries buy credits which they sell to companies in industrialized countries. 
E)  carbon credits essentially give companies the right to pollute the environment. 
A)  very little fraud has been uncovered in the system. 
B)  the system has proven to be very effective. 
C)  studies show that countries in Asia are not interested in the system. 
D)  companies in developing countries buy credits which they sell to companies in industrialized countries. 
E)  carbon credits essentially give companies the right to pollute the environment.

Question 4

When Procter & Gamble claimed that its Pantene shampoo made hair "10 times stronger," the Chinese government decided that this constituted

Accepted Answer

A)  advertising of a counterfeit brand. 
B)  morally objectionable advertising. 
C)  lack of truth-in-advertising. 
D)  misleading price advertising. 
E)  stealth advertising. 
A)  advertising of a counterfeit brand. 
B)  morally objectionable advertising. 
C)  lack of truth-in-advertising. 
D)  misleading price advertising. 
E)  stealth advertising.

Question 5

Bob Crawford sold his shares in Texon Company after finding out from Texon's CEO that its stock was about to drop in price because its soon-to-be-released quarterly financial update was going to show that earnings were lower than expected. Bob engaged in

Accepted Answer

A)  whistle-blowing. 
B)  misrepresentation of finances. 
C)  insider trading. 
D)  an obstructionist stance to social responsibility. 
E)  cheque kiting. 
A)  whistle-blowing. 
B)  misrepresentation of finances. 
C)  insider trading. 
D)  an obstructionist stance to social responsibility. 
E)  cheque kiting.

Question 6

Individuals can rationalize almost any behaviour as ethical.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following illustrates consumers' rights to safe products?

Accepted Answer

A)  Food products must list their ingredients 
B)  Open competition in the marketplace 
C)  A new vacuum cleaner must be free of electrical hazards 
D)  Procter & Gamble provides a toll-free telephone number for consumers to use for complaints or questions 
E)  Clothing must be labelled with information about its proper care 
A)  Food products must list their ingredients 
B)  Open competition in the marketplace 
C)  A new vacuum cleaner must be free of electrical hazards 
D)  Procter & Gamble provides a toll-free telephone number for consumers to use for complaints or questions 
E)  Clothing must be labelled with information about its proper care

Question 8

Consumerism is

Accepted Answer

A)  the group of laws dealing with retail commercial transactions. 
B)  the movement that seeks to protect and expand the rights of consumers in their dealings with businesses. 
C)  the right to be informed about all aspects of a product. 
D)  the right to choose the product. 
E)  the right to safe products. 
A)  the group of laws dealing with retail commercial transactions. 
B)  the movement that seeks to protect and expand the rights of consumers in their dealings with businesses. 
C)  the right to be informed about all aspects of a product. 
D)  the right to choose the product. 
E)  the right to safe products.

Question 9

Breaking the law in a totalitarian regime in order to carry out humanitarian efforts would probably be seen by most people as

Accepted Answer

A)  ethical but illegal. 
B)  ethical and illegal. 
C)  unethical but legal. 
D)  unethical and illegal. 
E)  there is no consensus on how this behaviour should be classified. 
A)  ethical but illegal. 
B)  ethical and illegal. 
C)  unethical but legal. 
D)  unethical and illegal. 
E)  there is no consensus on how this behaviour should be classified.

Question 10

Which of the following is the best means of showing responsibility toward employees?

Accepted Answer

A)  Provide employees with equal opportunities without regard to race, sex, or other irrelevant factors 
B)  Provide rewards for employees who go beyond the call of duty 
C)  Provide a stock ownership plan for employees 
D)  Provide a grievance system for employees 
E)  Recruit employees from minority groups 
A)  Provide employees with equal opportunities without regard to race, sex, or other irrelevant factors 
B)  Provide rewards for employees who go beyond the call of duty 
C)  Provide a stock ownership plan for employees 
D)  Provide a grievance system for employees 
E)  Recruit employees from minority groups

Question 11

Which consumer right is violated by a company that restricts and interferes with competition?

Accepted Answer

A)  Right to be heard 
B)  Right to choose what they buy 
C)  Right to good prices 
D)  Right to safe products 
E)  Right to be informed 
A)  Right to be heard 
B)  Right to choose what they buy 
C)  Right to good prices 
D)  Right to safe products 
E)  Right to be informed

Question 12

In one sentence, summarize the debate about global warming.

Accepted Answer

There is a fairly strong conse

Question 13

Smooth is a bar soap for women that is produced by Beautymax Products. Smooth has recently been reformulated because previous product ingredients had become quite expensive. However, the reformulation has caused some major problems, as some 12 percent of the recent consumers have reported developing a rash accompanied by itching and peeling skin. Beautymax's in-house public relations department has been given the task of crisis management for the negative publicity resulting from the skin rashes. The PR department is advocating using impression management strategies to protect the company's image. However, the CEO is arguing for an apology strategy. Which of the following statements, if true, would support the CEO's argument?

Accepted Answer

A)  An expression of innocence, such as "someone else added something to our soap" would be believed by 16 percent of the consumers. 
B)  An excuse, such as "this was a random act committed by a disgruntled employee," would be believed by 32 percent of the consumers. 
C)  "We assume full responsibility and will change our soap formula immediately" would be believed by 34 percent of the consumers. 
D)  "These rashes are exceptions to our high quality standards" would be believed by 21 percent of the consumers. 
E)  A justification, such as "the rashes are minor and resulted from a new addition to our product," would be believed by 17 percent of the consumers. 
A)  An expression of innocence, such as "someone else added something to our soap" would be believed by 16 percent of the consumers. 
B)  An excuse, such as "this was a random act committed by a disgruntled employee," would be believed by 32 percent of the consumers. 
C)  "We assume full responsibility and will change our soap formula immediately" would be believed by 34 percent of the consumers. 
D)  "These rashes are exceptions to our high quality standards" would be believed by 21 percent of the consumers. 
E)  A justification, such as "the rashes are minor and resulted from a new addition to our product," would be believed by 17 percent of the consumers.

Question 14

Brandon Ltd. is accused of paying excessive salaries and providing excessive "perks" to top managers. The company may be engaging in

Accepted Answer

A)  insider trading. 
B)  collusion. 
C)  cheque kiting. 
D)  improper financial management. 
E)  price fixing 
A)  insider trading. 
B)  collusion. 
C)  cheque kiting. 
D)  improper financial management. 
E)  price fixing

Question 15

If we apply the ethical standard of utility, it may be acceptable to allow inflated expense reports.

Accepted Answer

A) True 
 B)False

Question 16

Why did the fair trade movement develop?

Accepted Answer

A)  Because large industrialized countries were using unfair trading practices with developing countries 
B)  Because pollution was increasing too rapidly in developing countries as a result of excessive investment in mining operations 
C)  Because workers involved in producing commodities like coffee were not receiving fair payment for their products 
D)  Because free trade agreements were hurting smaller producers 
E)  Because there was a surplus of cotton as a result of highly efficient U.S. production 
A)  Because large industrialized countries were using unfair trading practices with developing countries 
B)  Because pollution was increasing too rapidly in developing countries as a result of excessive investment in mining operations 
C)  Because workers involved in producing commodities like coffee were not receiving fair payment for their products 
D)  Because free trade agreements were hurting smaller producers 
E)  Because there was a surplus of cotton as a result of highly efficient U.S. production

Question 17

When Sony Ericsson hired models to pose as "tourists" who asked real tourists if they would take their picture with Sony's new camera cellphone, this was an example of

Accepted Answer

A)  advertising of a counterfeit brand. 
B)  morally objectionable advertising. 
C)  lack of truth-in-advertising. 
D)  misleading price advertising. 
E)  stealth advertising. 
A)  advertising of a counterfeit brand. 
B)  morally objectionable advertising. 
C)  lack of truth-in-advertising. 
D)  misleading price advertising. 
E)  stealth advertising.

Question 18

John wants his employees to be aware that they should act ethically. He should

Accepted Answer

A)  fire anyone who behaves unethically. 
B)  not draw public attention to any employee's unethical behaviour, but instead deal with it privately. 
C)  publicly reward ethical behaviour and ignore unethical behaviour. 
D)  publicly discipline employees who behave unethically, but don't fire them. 
E)  adopt a written code of ethics. 
A)  fire anyone who behaves unethically. 
B)  not draw public attention to any employee's unethical behaviour, but instead deal with it privately. 
C)  publicly reward ethical behaviour and ignore unethical behaviour. 
D)  publicly discipline employees who behave unethically, but don't fire them. 
E)  adopt a written code of ethics.

Question 19

Collusion occurs when two or more firms agree to collaborate on wrongful acts such as price fixing.

Accepted Answer

A) True 
 B)False

Question 20

A university has filed a formal complaint against a local hospital for failing to be socially responsible in its treatment of university students completing internships there. Which of the following would most likely be a valid response by a hospital that was not guilty of this charge?

Accepted Answer

A)  "The responsibility to take disciplinary action against the supervisor who physically threatened the student interns lies with someone else." 
B)  "Because sanitary conditions are very important, floors are mopped regularly and are sometimes left wet. We cannot be held responsible if student interns unfamiliar with this practice slip and injure themselves." 
C)  "All student interns are clearly instructed to wear gloves and protective covering when handling blood samples that may endanger the interns' health." 
D)  "We expect our student interns to work double shifts after a day of classes so that they will be well prepared for a career in the health professions." 
E)  "Unforeseen budget cuts have forced us to revoke our contracts with student interns regarding hourly compensation." 
A)  "The responsibility to take disciplinary action against the supervisor who physically threatened the student interns lies with someone else." 
B)  "Because sanitary conditions are very important, floors are mopped regularly and are sometimes left wet. We cannot be held responsible if student interns unfamiliar with this practice slip and injure themselves." 
C)  "All student interns are clearly instructed to wear gloves and protective covering when handling blood samples that may endanger the interns' health." 
D)  "We expect our student interns to work double shifts after a day of classes so that they will be well prepared for a career in the health professions." 
E)  "Unforeseen budget cuts have forced us to revoke our contracts with student interns regarding hourly compensation."

How do issues of social responsibility and ethics affect small business?

The International Chamber of Commerce estimated that the global trade in fake goods in 2014 was worth

With regard to the "cap and trade" system for trading carbon credits, it is correct to say that

When Procter & Gamble claimed that its Pantene shampoo made hair "10 times stronger," the Chinese government decided that this constituted

Bob Crawford sold his shares in Texon Company after finding out from Texon's CEO that its stock was about to drop in price because its soon-to-be-released quarterly financial update was going to show that earnings were lower than expected. Bob engaged in

Individuals can rationalize almost any behaviour as ethical.

Which of the following illustrates consumers' rights to safe products?

Consumerism is

Breaking the law in a totalitarian regime in order to carry out humanitarian efforts would probably be seen by most people as

Which of the following is the best means of showing responsibility toward employees?

Which consumer right is violated by a company that restricts and interferes with competition?

In one sentence, summarize the debate about global warming.

Brandon Ltd. is accused of paying excessive salaries and providing excessive "perks" to top managers. The company may be engaging in

If we apply the ethical standard of utility, it may be acceptable to allow inflated expense reports.

Why did the fair trade movement develop?

When Sony Ericsson hired models to pose as "tourists" who asked real tourists if they would take their picture with Sony's new camera cellphone, this was an example of

John wants his employees to be aware that they should act ethically. He should

Collusion occurs when two or more firms agree to collaborate on wrongful acts such as price fixing.

A university has filed a formal complaint against a local hospital for failing to be socially responsible in its treatment of university students completing internships there. Which of the following would most likely be a valid response by a hospital that was not guilty of this charge?

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

How do issues of social responsibility and ethics affect small business?

The International Chamber of Commerce estimated that the global trade in fake goods in 2014 was worth

With regard to the "cap and trade" system for trading carbon credits, it is correct to say that

When Procter & Gamble claimed that its Pantene shampoo made hair "10 times stronger," the Chinese government decided that this constituted

Bob Crawford sold his shares in Texon Company after finding out from Texon's CEO that its stock was about to drop in price because its soon-to-be-released quarterly financial update was going to show that earnings were lower than expected. Bob engaged in

Individuals can rationalize almost any behaviour as ethical.

Which of the following illustrates consumers' rights to safe products?

Consumerism is

Breaking the law in a totalitarian regime in order to carry out humanitarian efforts would probably be seen by most people as

Which of the following is the best means of showing responsibility toward employees?

Which consumer right is violated by a company that restricts and interferes with competition?

In one sentence, summarize the debate about global warming.

Brandon Ltd. is accused of paying excessive salaries and providing excessive "perks" to top managers. The company may be engaging in

If we apply the ethical standard of utility, it may be acceptable to allow inflated expense reports.

Why did the fair trade movement develop?

When Sony Ericsson hired models to pose as "tourists" who asked real tourists if they would take their picture with Sony's new camera cellphone, this was an example of

John wants his employees to be aware that they should act ethically. He should

Collusion occurs when two or more firms agree to collaborate on wrongful acts such as price fixing.

A university has filed a formal complaint against a local hospital for failing to be socially responsible in its treatment of university students completing internships there. Which of the following would most likely be a valid response by a hospital that was not guilty of this charge?

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