Question 1

The _____ was called "a sweeping overhaul of the financial regulatory system…on a scale not seen since the reforms that followed the Great Depression."

Accepted Answer

A)  Equal Pay Act 
B)  Americans with Disabilities Act 
C)  Dodd-Frank Wall Street Reform and Consumer Protection Act 
D)  Age Discrimination in Employment Act 
E)  VII of the Civil Rights Act

Question 2

The primary objective of U.S. antitrust laws is to

Accepted Answer

A)  protect consumers from high prices and foreign products. 
B)  protect domestic businesses. 
C)  protect employees. 
D)  promote strategies that enhance business welfare over consumer welfare. 
E)  distinguish competitive strategies that enhance consumer welfare from those that reduce it.

Question 3

Which of the following is not one of the seven steps that the U.S. Sentencing Commission requires for an effective compliance program?

Accepted Answer

A)  Develop a code of conduct 
B)  Provide oversight by high-ranking personnel 
C)  Create a communication system for disseminating standards and procedures 
D)  Monitor and audit systems designed to detect misconduct 
E)  Comply with ISO 14000 guidelines

Question 4

Cause related marketing can affect consumer _____, if consumers are sympathetic to the cause and the brand and cause are seen as a good fit.

Accepted Answer

A)  individual ethics 
B)  tastes 
C)  perceptions 
D)  budgets 
E)  buying patterns

Question 5

Which is not one of the four sources of criminal and civil laws?

Accepted Answer

A)  Judicial law 
B)  Common law 
C)  Constitutional law 
D)  Administrative law 
E)  Statutory law

Question 6

Who provides information to managers, investors, tax authorities, and other stakeholders who make resource allocation decisions for corporations?

Accepted Answer

A)  Accountants 
B)  Federal regulators 
C)  The Securities and Exchange Commission 
D)  The Department of Justice 
E)  Human Resources departments

Question 7

Passed by Congress in 1991, the _____ created incentives for organizations to develop and implement ethical compliance programs.

Accepted Answer

A)  Sarbanes-Oxley Act 
B)  U.S. Sentencing Commission's Guidelines for Ethical Compliance 
C)  Ethical Compliance Act 
D)  Social Responsiveness Compliance Act 
E)  Federal Sentencing Guidelines for Organizations

Question 8

Society often expects a lot from business. Do you think that it is possible to balance profit and other business objectives with the goals and desires of society? Why or why not?

Accepted Answer

The answer of Society often expects a lot from business....

Question 9

_____ tie(s) an organization's product(s) directly to a social concern through a marketing program.

Accepted Answer

A)  Voluntary contributions 
B)  Cause-related marketing 
C)  Strategic philanthropy 
D)  Corporate giving 
E)  Employee benefits

Question 10

Which of the following acts exempted the insurance industry from antitrust legislation?

Accepted Answer

A)  Equal Pay Act of 1963 
B)  Civil Rights Act of 1964 
C)  McCarran-Ferguson Act of 1944 
D)  Sherman Antitrust Act of 1890 
E)  Occupational Safety and Health Act of 1970

Question 11

The Sarbanes-Oxley Act created the _____ to oversee the accounting firms that audit public corporations and to establish rules and standards for auditing.

Accepted Answer

A)  Public Company Accounting Oversight Board 
B)  Corporate Accounting Oversight Commission 
C)  Enron Accounting Fraud Administration 
D)  Occupational Health and Safety Administration 
E)  Equal Employment Opportunity Commission

Question 12

Which of the forces of the business environment involves the rivalry among businesses for customers and profits?

Accepted Answer

A)  The economic dimension 
B)  The legal dimension 
C)  The competitive dimension 
D)  The technological dimension 
E)  The voluntary responsibilities dimension

Question 13

Which of the following acts, passed in response to public outrage over conditions described in Upton Sinclair's The Jungle, was the first consumer protection legislation?

Accepted Answer

A)  Civil Rights Act of 1964 
B)  Sherman Antitrust Act of 1890 
C)  Magnuson-Moss Warranty Act of 1974 
D)  Consumer Product Safety Act of 1972 
E)  Pure Food and Drug Act of 1906

Question 14

Why do you think the costs of compliance with Sarbanes Oxley go down over time?

Accepted Answer

The answer of Why do you think the costs of...

Question 15

By prohibiting accounting firms from providing both auditing and consulting services to the same corporate clients without permission, the Sarbanes-Oxley Act is attempting to eliminate

Accepted Answer

A)  conflicts of interest. 
B)  cronyism. 
C)  reporting transparency. 
D)  corporate espionage. 
E)  dual reporting.

Question 16

An ethical organizational culture creates an environment in which to structure behavior that is then evaluated by stakeholders. The key elements of an organizational culture include all of the following except

Accepted Answer

A)  values. 
B)  norms. 
C)  artifacts. 
D)  legal compliance. 
E)  employee compensation

Question 17

Which of the following is not a provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act?

Accepted Answer

A)  Increases the accountability and transparency of financial institutions 
B)  Creates a bureau to educate consumers in financial literacy 
C)  Creates an organization to pay the bills of low-income consumers 
D)  Create incentives for whistle-blowers to come forward 
E)  Increases oversight of the financial industry

Question 18

The _____ was established after the latest financial crisis, in response to a situation that caused many consumers to lose their homes.

Accepted Answer

A)  Environmental Protection Agency 
B)  World Bank 
C)  Consumer Financial Protection Agency 
D)  World Trade Organization 
E)  Sarbanes-Oxley Act

Question 19

_____ law defines the rights and duties of individuals and organizations (including businesses).

Accepted Answer

A)  Civil 
B)  Criminal 
C)  Competitive 
D)  Administrative 
E)  Regulatory

Question 20

What ethical issues affecting consumers and society as a whole are created by unfair competition?

Accepted Answer

The answer of What ethical issues affecting consumers and society...

Exam 4: The Institutionalization of Business Ethics