Question 1

If Floyd elects to monitor the personal email accounts of his employees at work, he should:

Accepted Answer

A)   install screening software to avoid hiring another IT employee.
B)   first develop a carefully worded and legally sound policy and make sure all employees are aware of it.
C)   consult an attorney before terminating an employee for viewing personal email at work.
D)   block access to all personal email servers from company computers. B

Question 2

A code of ethics becomes increasingly appropriate and necessary as a small business

Accepted Answer

A)   expands its credit sales and acquires more customers who buy on credit.
B)   begins to market products in other countries.
C)   grows larger, with a consequent lessening of the owner's personal influence.
D)   increases borrowing to the extent that one-third of its assets are financed by borrowing. C

Question 3

Sometimes Vincent doesn't have enough cash on hand to send in the monthly taxes withheld from his employees' paychecks. This could be the result of a single-minded focus on production or because of a casual ____________ ___________.

Accepted Answer

accounting system

Question 4

Annabelle often shops for clothing and household goods online while at work. Which of the following best describes this situation?

Accepted Answer

A)   Abusive behavior
B)   Lying to employees
C)   Improper use of company resources
D)   Inappropriate Internet use at work

Question 5

The purpose of the ___________ _________ _________ is to promote ethical conduct on the part of all businesses in a region.

Accepted Answer

The answer of The purpose of the ___________ _________ _________...

Question 6

Using examples discussed in the book, discuss how sustainability has resulted in different goals for small businesses.

Accepted Answer

The answer of Using examples discussed in the book, discuss...

Question 7

When a company delivers an excellent product with excellent service, ______________ are likely to follow.

Accepted Answer

A)   profits and a good reputation
B)   customer satisfaction and profits
C)   healthy sales and profits
D)   customer satisfaction and healthy sales

Question 8

Entrepreneurs should think carefully about their community commitments because charitable acts may be a _________ to the organization.

Accepted Answer

The answer of Entrepreneurs should think carefully about their community...

Question 9

Malcolm is careful to share with his employees information about customer orders, financial performance, and quality concerns. Malcolm is exercising _________ __________.

Accepted Answer

The answer of Malcolm is careful to share with his...

Question 10

A U.S. manager is upset with the company's overseas representative for paying a small "access fee" to a local customs official to ensure the expedited release of a customer order. The manager's belief such payments are wrong reflects a sense of _____.

Accepted Answer

A)   cultural insensitivity
B)   ethical elitism
C)   ethical imperialism
D)   cultural integrity

Question 11

Discuss the issues related to Internet usage and personal privacy from both a business perspective and employee standpoint. What should a small business do to decrease conflict?

Accepted Answer

The answer of Discuss the issues related to Internet usage...

Question 12

Ethical issues

Accepted Answer

A)   seldom involve legal issues.
B)   are questions of right and wrong.
C)   are always clearly defined.
D)   often resolve themselves.

Question 13

Franco treats his customers with respect. He is always truthful, even if it means losing a sale. He uses high quality materials and careful craftsmanship. If he can't meet a customer's deadline, he says so. His customers appreciate his integrity, which has helped to build ________ between them and Franco.

Accepted Answer

The answer of Franco treats his customers with respect. He...

Question 14

While unethical practices do exist, it is good that the great majority of small firms strive to achieve the highest standards of ____ in their quest for profits.

Accepted Answer

A)   integrity
B)   relativism
C)   synchronous behavior
D)   congruity

Question 15

The type of tax most likely to be a problem for entrepreneurs is:

Accepted Answer

A)   federal income tax.
B)   employee payroll taxes.
C)   state withholding tax.
D)   state sales tax.

Question 16

William wants everyone to think his business is growing faster than it actually is so he built an impressive website with an exaggerated company history. His efforts to mislead are known as ____________ ______.

Accepted Answer

The answer of William wants everyone to think his business...

Question 17

Match the term with its definition.
-A profitable company that responds to customers' needs while showing reasonable concern for the environment

Accepted Answer

A)  code of ethics
B)  environmentalism
C)  ethical imperialism
D)  ethical relativism
E)  integrityF) intellectual propertyG) social responsibilitiesH) skimmingI) stakeholdersJ) sustainable small businessK) underlying values

Question 18

Entrepreneurs would do well to remember that customers who have questions about the ________ ____________ (products, representatives, or the organization) are less likely to make purchases.

Accepted Answer

The answer of Entrepreneurs would do well to remember that...

Question 19

In a small business, the most important key to ethical performance is

Accepted Answer

A)   a code of ethics.
B)   the personal integrity of the founder or owner.
C)   a training program based on the code of ethics.
D)   the amount of legislation affecting the organization.

Question 20

PortionPac Chemical's dedication to its customers, employees, and the environment is an example of:

Accepted Answer

A)   a sustainable small business.
B)   ethical relativism.
C)   social entrepreneurship.
D)   ethical imperialism.

Exam 2: Integrity and Ethics: Foundations for Success in Small Business

If Floyd elects to monitor the personal email accounts of his employees at work, he should:

A code of ethics becomes increasingly appropriate and necessary as a small business

Sometimes Vincent doesn't have enough cash on hand to send in the monthly taxes withheld from his employees' paychecks. This could be the result of a single-minded focus on production or because of a casual __ _.

Annabelle often shops for clothing and household goods online while at work. Which of the following best describes this situation?

The purpose of the _______ _ _____ is to promote ethical conduct on the part of all businesses in a region.