Question 1

A major way technology affects land pollution is the potential for

Accepted Answer

A)  worsening the problem. 
B)  creating resource scarcity. 
C)  decreasing pollution problems. 
D)  exploitation. 
E)  increasing pollution control. 
A)  worsening the problem. 
B)  creating resource scarcity. 
C)  decreasing pollution problems. 
D)  exploitation. 
E)  increasing pollution control. A

Question 2

What is probably the most effective way for a company to encourage ethical behavior?

Accepted Answer

A)  Hire employees who are ethical and in agreement with the company's views. 
B)  Have ethics training sessions for interested employees. 
C)  Threaten employees with immediate termination for unethical behavior. 
D)  Post signs discouraging sexual harassment and discrimination. 
E)  Develop and enforce a written code of ethics for the organization. 
A)  Hire employees who are ethical and in agreement with the company's views. 
B)  Have ethics training sessions for interested employees. 
C)  Threaten employees with immediate termination for unethical behavior. 
D)  Post signs discouraging sexual harassment and discrimination. 
E)  Develop and enforce a written code of ethics for the organization. E

Question 3

Product labels on detergent that indicate ingredients and laundering methods are examples of which provision of Kennedy's consumer bill of rights?

Accepted Answer

A)  The right to be heard 
B)  The right to choose 
C)  The right to purchase 
D)  The right to be informed 
E)  The right to safety 
A)  The right to be heard 
B)  The right to choose 
C)  The right to purchase 
D)  The right to be informed 
E)  The right to safety D

Question 4

A large computer manufacturer forbids its executives and managers from serving as directors or officers for Intel Corporation or any other corporation from which it might purchase component parts. The company is trying to prevent

Accepted Answer

A)  their employees from having other jobs. 
B)  a conflict of interest. 
C)  trade secrets from being revealed. 
D)  losing its executives to other organizations. 
E)  fairness and honesty. 
A)  their employees from having other jobs. 
B)  a conflict of interest. 
C)  trade secrets from being revealed. 
D)  losing its executives to other organizations. 
E)  fairness and honesty.

Question 5

Employees of Copley Pharmaceutical, Inc., falsified drug manufacturers' reports to the FDA. These actions taken by Copley's employees were

Accepted Answer

A)  moral. 
B)  normal. 
C)  in the best interests of the shareholders. 
D)  unethical. 
E)  in the best interests of the employees. 
A)  moral. 
B)  normal. 
C)  in the best interests of the shareholders. 
D)  unethical. 
E)  in the best interests of the employees.

Question 6

Residents living near Los Angeles International Airport complained to the city that the airport was guilty of ____ pollution.

Accepted Answer

A)  land 
B)  noise 
C)  air 
D)  water 
E)  business 
A)  land 
B)  noise 
C)  air 
D)  water 
E)  business

Question 7

Which of the following best describes the trend in social responsibility models used by companies?

Accepted Answer

A)  Most companies are changing from a socioeconomic approach to an economic approach to social responsibility. 
B)  There has really been no pattern of change over the last century because most companies take a socioeconomic approach. 
C)  There has been a sporadic shift back and forth between the economic and socioeconomic model as the best business solution. 
D)  Relatively little transformation has left the economic model as the philosophy for most businesses. 
E)  More companies have been bypassing the economic model in favor of the socioeconomic model in recent years. 
A)  Most companies are changing from a socioeconomic approach to an economic approach to social responsibility. 
B)  There has really been no pattern of change over the last century because most companies take a socioeconomic approach. 
C)  There has been a sporadic shift back and forth between the economic and socioeconomic model as the best business solution. 
D)  Relatively little transformation has left the economic model as the philosophy for most businesses. 
E)  More companies have been bypassing the economic model in favor of the socioeconomic model in recent years.

Question 8

Wonder Bread advertised that its bread "builds strong bodies." This claim was considered deceptive and thus a violation of the consumer's right to ____. The claim was a violation not because it was untrue but because the same claim was true of other breads, and people seeing the advertisement might have thought that Wonder Bread was unique.

Accepted Answer

A)  safety 
B)  be heard 
C)  be informed 
D)  choose 
E)  life 
A)  safety 
B)  be heard 
C)  be informed 
D)  choose 
E)  life

Question 9

The agency charged with protecting our environment is the

Accepted Answer

A)  National Alliance of Business. 
B)  Interstate Commerce Commission. 
C)  National Recovery Administration. 
D)  Environmental Protection Agency. 
E)  Civilian Conservation Corps. 
A)  National Alliance of Business. 
B)  Interstate Commerce Commission. 
C)  National Recovery Administration. 
D)  Environmental Protection Agency. 
E)  Civilian Conservation Corps.

Question 10

One reason American business must be concerned about product safety is that

Accepted Answer

A)  labor unions will demand better contracts. 
B)  the government will increase its requirements for disclosure. 
C)  consumers demand safe products. 
D)  companies will be banned from competing. 
E)  limitations will be placed on the sale of products. 
A)  labor unions will demand better contracts. 
B)  the government will increase its requirements for disclosure. 
C)  consumers demand safe products. 
D)  companies will be banned from competing. 
E)  limitations will be placed on the sale of products.

Question 11

The National Alliance of Business is a combined effort between

Accepted Answer

A)  the EEOC and local government. 
B)  participating businesses and government. 
C)  government and all businesses. 
D)  businesses and the EEOC. 
E)  instructors and students. 
A)  the EEOC and local government. 
B)  participating businesses and government. 
C)  government and all businesses. 
D)  businesses and the EEOC. 
E)  instructors and students.

Question 12

Excellent Air Inc. (EAI)

Excellent Air Inc. is a well-known establishment in the airline business. It is currently one of the top firms in the industry. The company prides itself on good customer service and being concerned with the broader societal good. EAI management is concerned not only with doing things right, but also with doing the right things. Many of its decisions reflect this philosophy. Initially, the company had a problem with employees reporting their suspicions about unethical behavior to the press instead of to EAI management. As a result, the company made sure its employees knew the firm’s guidelines on fixing ethical issues. EAI also developed a code of conduct based on standards that continue to be upheld within the company. Since the code of conduct has been put in place, there have been much fewer ethical violations.

Although employee salaries at EAI are not as high as those at competing firms, the company experiences very low employee turnover. The firm has created a corporate culture that not only makes its employees want to stay, but that also results in higher profits. If EAI can maintain the relationship it has built with its employees and customers, it will have little difficulty keeping up its remarkable success.

-Refer to Excellent Air Inc. EAI's creation of its code of conduct demonstrated its application of moral standards to business situations, which is also known as

Accepted Answer

A)  moral responsibility. 
B)  social consciousness. 
C)  social responsibility. 
D)  moral consciousness. 
E)  business ethics. 
A)  moral responsibility. 
B)  social consciousness. 
C)  social responsibility. 
D)  moral consciousness. 
E)  business ethics.

Question 13

Ed works in a position where there is very little supervision. In fact, although he considers himself ethical, he figures he could go away for a week without anyone noticing. Which general set of factors is most likely to influence Ed's ethical behavior?

Accepted Answer

A)  Individual 
B)  Social 
C)  Moral 
D)  Circumstantial 
E)  Opportunity 
A)  Individual 
B)  Social 
C)  Moral 
D)  Circumstantial 
E)  Opportunity

Question 14

If Casio were to buy out all other calculator manufacturers, what consumer right would be at stake?

Accepted Answer

A)  The right to choose 
B)  The right to be heard 
C)  The right to safety 
D)  The right to service 
E)  The right to be informed 
A)  The right to choose 
B)  The right to be heard 
C)  The right to safety 
D)  The right to service 
E)  The right to be informed

Question 15

What are the four steps in developing a program of social responsibility?

Accepted Answer

The four steps in developing a program o

Question 16

Excellent Air Inc. (EAI)

Excellent Air Inc. is a well-known establishment in the airline business. It is currently one of the top firms in the industry. The company prides itself on good customer service and being concerned with the broader societal good. EAI management is concerned not only with doing things right, but also with doing the right things. Many of its decisions reflect this philosophy. Initially, the company had a problem with employees reporting their suspicions about unethical behavior to the press instead of to EAI management. As a result, the company made sure its employees knew the firm’s guidelines on fixing ethical issues. EAI also developed a code of conduct based on standards that continue to be upheld within the company. Since the code of conduct has been put in place, there have been much fewer ethical violations.

Although employee salaries at EAI are not as high as those at competing firms, the company experiences very low employee turnover. The firm has created a corporate culture that not only makes its employees want to stay, but that also results in higher profits. If EAI can maintain the relationship it has built with its employees and customers, it will have little difficulty keeping up its remarkable success.

-Refer to Excellent Air Inc. Initially, employees were not willing to go to EAI management with ethical issues but would instead report them to the press. This is an example of

Accepted Answer

A)  whistle-blowing. 
B)  a social audit. 
C)  poor employees. 
D)  opportunity emptor. 
E)  a narc. 
A)  whistle-blowing. 
B)  a social audit. 
C)  poor employees. 
D)  opportunity emptor. 
E)  a narc.

Question 17

If a company deals with violations of its ethical codes ____, the opportunity to be unethical will be reduced.

Accepted Answer

A)  leisurely and lightly 
B)  firmly and consistently 
C)  on a case-by-case basis 
D)  quietly and erratically 
E)  frequently and severely 
A)  leisurely and lightly 
B)  firmly and consistently 
C)  on a case-by-case basis 
D)  quietly and erratically 
E)  frequently and severely

Question 18

The socioeconomic model of social responsibility

Accepted Answer

A)  holds that society will benefit most when business is left alone to produce and market profitable products. 
B)  emphasizes that social responsibility is someone else's responsibility. 
C)  holds that a firm is legally obligated to act in the economic interests of its stockholders. 
D)  states that managers who concentrate on profit indirectly fulfill their social responsibilities. 
E)  emphasizes profits as well as the effect of business decisions on society. 
A)  holds that society will benefit most when business is left alone to produce and market profitable products. 
B)  emphasizes that social responsibility is someone else's responsibility. 
C)  holds that a firm is legally obligated to act in the economic interests of its stockholders. 
D)  states that managers who concentrate on profit indirectly fulfill their social responsibilities. 
E)  emphasizes profits as well as the effect of business decisions on society.

Question 19

Ranee is a businessperson who works for a successful and admired Fortune 500 company. About how often is Ranee likely to encounter ethical issues in the workplace?

Accepted Answer

A)  Once or twice during her career 
B)  About two to three times per year 
C)  Approximately once a month 
D)  Almost every week 
E)  On a daily basis 
A)  Once or twice during her career 
B)  About two to three times per year 
C)  Approximately once a month 
D)  Almost every week 
E)  On a daily basis

Question 20

You have been asked to complete this year's social responsibility report for the insurance industry. Which of the following statements would you include as a valid indication of socially responsible activities in this industry?

Accepted Answer

A)  This year, we sold more insurance policies than in the previous two years. 
B)  This year marked a 200 percent increase in the number of new insurance products and services available to customers. 
C)  To date, few women and minorities hold management positions in the insurance industry. 
D)  This year, more than 300,000 volunteer hours were contributed by companies through loaned executives and release-time (time off) arrangements. 
E)  Fewer than one-eighth of the companies' charitable contributions go to people-related activities. 
A)  This year, we sold more insurance policies than in the previous two years. 
B)  This year marked a 200 percent increase in the number of new insurance products and services available to customers. 
C)  To date, few women and minorities hold management positions in the insurance industry. 
D)  This year, more than 300,000 volunteer hours were contributed by companies through loaned executives and release-time (time off) arrangements. 
E)  Fewer than one-eighth of the companies' charitable contributions go to people-related activities.

Exam 2: A: Being Ethical and Socially Responsible

A major way technology affects land pollution is the potential for

What is probably the most effective way for a company to encourage ethical behavior?

Product labels on detergent that indicate ingredients and laundering methods are examples of which provision of Kennedy's consumer bill of rights?

A large computer manufacturer forbids its executives and managers from serving as directors or officers for Intel Corporation or any other corporation from which it might purchase component parts. The company is trying to prevent

Employees of Copley Pharmaceutical, Inc., falsified drug manufacturers' reports to the FDA. These actions taken by Copley's employees were

Residents living near Los Angeles International Airport complained to the city that the airport was guilty of ____ pollution.

Which of the following best describes the trend in social responsibility models used by companies?

The agency charged with protecting our environment is the

One reason American business must be concerned about product safety is that

The National Alliance of Business is a combined effort between

Ed works in a position where there is very little supervision. In fact, although he considers himself ethical, he figures he could go away for a week without anyone noticing. Which general set of factors is most likely to influence Ed's ethical behavior?

If Casio were to buy out all other calculator manufacturers, what consumer right would be at stake?

What are the four steps in developing a program of social responsibility?

If a company deals with violations of its ethical codes ____, the opportunity to be unethical will be reduced.

The socioeconomic model of social responsibility

Ranee is a businessperson who works for a successful and admired Fortune 500 company. About how often is Ranee likely to encounter ethical issues in the workplace?

You have been asked to complete this year's social responsibility report for the insurance industry. Which of the following statements would you include as a valid indication of socially responsible activities in this industry?

Exploring the World of Business and Economics

B: Being Ethical and Socially Responsible

A: Exploring Global Business

B: Exploring Global Business

Choosing a Form of Business Ownership

Small Business, Entrepreneurship, and Franchises

Understanding the Management Process

Creating a Flexible Organization

Producing Quality Goods and Services

Attracting and Retaining the Best Employees

Motivating and Satisfying Employees and Teams

Enhancing Union-Management Relations

Building Customer Relationships Through Effective Marketing

A: Creating and Pricing Products That Satisfy Customers

B: Creating and Pricing Products That Satisfy Customers

Wholesaling, Retailing, and Physical Distribution

Developing Integrated Marketing Communications

Social Media, E-Business, and Accounting

Using Management and Accounting Information

Understanding Money, Banking, and Credit

Mastering Financial Management

A: Understanding Personal Finances and Investments

B: Understanding Personal Finances and Investments

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