Question 1

The moderate view of assessing corporate citizenship holds that:

Accepted Answer

A)  corporate officers and boards of directors should provide the exclusive view of corporate responsibility. 
B)  corporate employees below the senior executive level should provide the exclusive view of corporate responsibility. 
C)  community groups where the corporation is located should provide the exclusive view of corporate responsibility. 
D)  the government should provide the exclusive view of corporate responsibility. 
A)  corporate officers and boards of directors should provide the exclusive view of corporate responsibility. 
B)  corporate employees below the senior executive level should provide the exclusive view of corporate responsibility. 
C)  community groups where the corporation is located should provide the exclusive view of corporate responsibility. 
D)  the government should provide the exclusive view of corporate responsibility.

Question 2

People and companies that are directly and indirectly affected by another company's decisions are called _______.

Accepted Answer

The answer of People and companies that are directly and...

Question 3

Harry seeks to implement a policy of enhanced values management in his office. Which of the following is not a direct outcome of values management in the workplace that Harry can expect?

Accepted Answer

A)  Managing values in Harry's workplace will legitimize managerial actions. 
B)  Managing values in Harry's workplace will strengthen the cohesiveness and balance of his organization's culture. 
C)  Managing values in Harry's workplace will enhance profit and profitability. 
D)  Managing values in Harry's workplace will cultivate greater sensitivity to the impact of the company's values and messages. 
A)  Managing values in Harry's workplace will legitimize managerial actions. 
B)  Managing values in Harry's workplace will strengthen the cohesiveness and balance of his organization's culture. 
C)  Managing values in Harry's workplace will enhance profit and profitability. 
D)  Managing values in Harry's workplace will cultivate greater sensitivity to the impact of the company's values and messages.

Question 4

Honoring ethical values and respecting communities and the environment while recognizing the interests of shareholders are elements of corporate citizenship.

Accepted Answer

A) True 
 B)False

Question 5

Generally accepted standards of right and wrong in a given society are called _______.

Accepted Answer

The answer of Generally accepted standards of right and wrong...

Question 6

When a company is developing a code of ethics, what are the four key points that must be followed to create a usable and effective document?

Accepted Answer

A company should consider the following:

Question 7

When Enron's top executives were subpoenaed to testify before Congress, all of them exercised their constitutional right against self-incrimination except:

Accepted Answer

A)  Kenneth Lay, founder and chief executive officer. 
B)  Jeffrey Skilling, chief operating officer. 
C)  Andrew Fastow, chief financial officer. 
D)  Rick Clausey, chief accounting officer. 
A)  Kenneth Lay, founder and chief executive officer. 
B)  Jeffrey Skilling, chief operating officer. 
C)  Andrew Fastow, chief financial officer. 
D)  Rick Clausey, chief accounting officer.

Question 8

Linda's company has a code of ethics and a separate code of conduct. If she wants to be sure that she complies with the company dress code, she would reference the code of ethics.

Accepted Answer

A) True 
 B)False

Question 9

Name the five-step process that a manager should use for ethical decision making.

Accepted Answer

The five steps are (1) the manager must

Question 10

Enron Corporation was a multinational conglomerate with a core business of:

Accepted Answer

A)  oil and gas exploration and production. 
B)  energy trading. 
C)  insurance and stock speculation. 
D)  banking and mortgage lending. 
A)  oil and gas exploration and production. 
B)  energy trading. 
C)  insurance and stock speculation. 
D)  banking and mortgage lending.

Question 11

Assume that you have money you'd like to invest in stock. Would you prefer to invest in a company that evidences values based on the invisible hand theory, the government's hand theory, or the management's hand theory of operations? Explain reasons for your choice, and indicate why the rejected choices were not chosen.

Accepted Answer

The choices that students make can vary;

Question 12

You are the CEO of a major corporation that is suffering financially in the current economy. Your board has tasked you with cutting employee-related costs by 5 percent. Recognizing and referencing the pros and cons of alternative approaches you could take and the ethical theories that apply, what would you do?

Accepted Answer

Student answers will vary. However, the

Question 13

Prioritizing moral values for an organization and ensuring that behaviors are aligned with those values is known as _______.

Accepted Answer

The answer of Prioritizing moral values for an organization and...

Question 14

Shelly is a state legislator. A bill to legalize gambling has been introduced in her state, and she is deciding how to vote on it. Shelly owns 10,000 shares of stock in a company that manufactures slot machines. She wants to remain ethical and is not sure if she should disclose her holdings and disqualify herself from the vote.

Accepted Answer

A)  Shelly need not disclose her holdings and disqualify herself if her vote is based on what is best for the state and not for her. 
B)  Shelly need not disclose her holdings and disqualify herself from voting as long as she has nothing to do with negotiating the contract for the slot machine provider. 
C)  Shelly should disclose her holdings but not disqualify herself from voting because as long as she doesn't hide anything she can't be faulted. 
D)  Shelly should disclose her holdings and disqualify herself from voting because her potential conflict of interest, real or not, would make her actions ethically questionable. 
A)  Shelly need not disclose her holdings and disqualify herself if her vote is based on what is best for the state and not for her. 
B)  Shelly need not disclose her holdings and disqualify herself from voting as long as she has nothing to do with negotiating the contract for the slot machine provider. 
C)  Shelly should disclose her holdings but not disqualify herself from voting because as long as she doesn't hide anything she can't be faulted. 
D)  Shelly should disclose her holdings and disqualify herself from voting because her potential conflict of interest, real or not, would make her actions ethically questionable.

Question 15

Enron profits showed that first-quarter revenues rose from $12 billion in 2000 to $84 billion in 2001.

Accepted Answer

A) True 
 B)False

Question 16

Immanuel Kant is credited with developing the utilitarian stream of moral reasoning.

Accepted Answer

A) True 
 B)False

Question 17

AIG received a government bailout to save the company because:

Accepted Answer

A)  had the company gone bankrupt, too many employees would have become unemployed without sufficient unemployment insurance to aid them. 
B)  had the company gone bankrupt, the effect on New York City, where it was situated, would have been a catastrophe, so the bailout was actually in part to keep New York City solvent. 
C)  had the company gone bankrupt, money already owed to the U.S. government prior to the collapse would never have been recovered, so the bailout was necessary to keep AIG in operation until it was solvent enough to repay the government. 
D)  had the company gone bankrupt, the U.S. financial infrastructure would have been severely or even irreparably damaged. 
A)  had the company gone bankrupt, too many employees would have become unemployed without sufficient unemployment insurance to aid them. 
B)  had the company gone bankrupt, the effect on New York City, where it was situated, would have been a catastrophe, so the bailout was actually in part to keep New York City solvent. 
C)  had the company gone bankrupt, money already owed to the U.S. government prior to the collapse would never have been recovered, so the bailout was necessary to keep AIG in operation until it was solvent enough to repay the government. 
D)  had the company gone bankrupt, the U.S. financial infrastructure would have been severely or even irreparably damaged.

Question 18

Arthur Andersen was:

Accepted Answer

A)  Enron's largest customer. 
B)  Enron's largest supplier. 
C)  Enron's auditing firm. 
D)  Enron's largest competitor. 
A)  Enron's largest customer. 
B)  Enron's largest supplier. 
C)  Enron's auditing firm. 
D)  Enron's largest competitor.

Question 19

Sara is broke but needs a gown to go to a formal dance sponsored by her company. She goes to a local dress shop and purchases an expensive gown she cannot afford. She wears the gown to the event, tucking in and hiding the price tag rather than removing it. She dances all night and the next day goes back to the shop and returns the dress. The store's policy is that it will accept returns for 30 days as long as the price tag is still attached.

Accepted Answer

A)  Sara has not acted unethically because she complied with the store's policy. 
B)  Sara has not acted unethically because she got the idea from an article in a magazine that said that celebrities do things like this all the time. 
C)  Sara has not acted ethically because this is not an accepted act in the general society. 
D)  Sara has not acted ethically if she returns the dress without cleaning it but has acted ethically if it is cleaned and sanitized before returning it. 
A)  Sara has not acted unethically because she complied with the store's policy. 
B)  Sara has not acted unethically because she got the idea from an article in a magazine that said that celebrities do things like this all the time. 
C)  Sara has not acted ethically because this is not an accepted act in the general society. 
D)  Sara has not acted ethically if she returns the dress without cleaning it but has acted ethically if it is cleaned and sanitized before returning it.

Question 20

A particular act can be deemed unethical yet still be legal.

Accepted Answer

A) True 
 B)False

Exam 5: Business, Societal, and Ethical Contexts of Law

The moderate view of assessing corporate citizenship holds that:

People and companies that are directly and indirectly affected by another company's decisions are called _______.

Harry seeks to implement a policy of enhanced values management in his office. Which of the following is not a direct outcome of values management in the workplace that Harry can expect?

Honoring ethical values and respecting communities and the environment while recognizing the interests of shareholders are elements of corporate citizenship.

Generally accepted standards of right and wrong in a given society are called _______.

When a company is developing a code of ethics, what are the four key points that must be followed to create a usable and effective document?

When Enron's top executives were subpoenaed to testify before Congress, all of them exercised their constitutional right against self-incrimination except:

Linda's company has a code of ethics and a separate code of conduct. If she wants to be sure that she complies with the company dress code, she would reference the code of ethics.

Name the five-step process that a manager should use for ethical decision making.

Enron Corporation was a multinational conglomerate with a core business of:

Prioritizing moral values for an organization and ensuring that behaviors are aligned with those values is known as _______.

Enron profits showed that first-quarter revenues rose from $12 billion in 2000 to $84 billion in 2001.

Immanuel Kant is credited with developing the utilitarian stream of moral reasoning.

AIG received a government bailout to save the company because:

Arthur Andersen was:

A particular act can be deemed unethical yet still be legal.

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Business and the Constitution

The American Judicial System, Jurisdiction, and Venue

Resolving Disputes: Litigation and Alternative Dispute Resolution Options

Overview and Language of Contracts

Contract Formation

Contract Performance: Conditions, Breach, and Remedies

Contracts for the Sale of Goods

Torts and Products Liability

Agency

Employment Relationships and Labor Law

Employment Discrimination

Choice of Business Entity, Sole Proprietorships, and Partnerships

Limited Liability Companies and Limited Liability Partnerships

Corporations

Regulation of Securities, Corporate Governance, and Financial Markets

Administrative Law

Environmental Law and Policy

Antitrust and Regulation of Competition

Creditors Rights and Bankruptcy

Consumer Protection Law

Criminal Law and Procedure in Business

Personal Property, Real Property, and Land Use Law

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