Question 1

Which of the following laws instituted a whistle-blower bounty program in which whistle-blowers are eligible to receive 10 to 30 percent of fines if their reports result in convictions of more than $1 million in penalties?

Accepted Answer

A)  Title VII of the Civil Rights Act.
B)  The Sherman Antitrust Act.
C)  The Federal Sentencing Guidelines for Organizations.
D)  The Sarbanes-Oxley Act.
E)  The Dodd-Frank Act. E

Question 2

Cause-related marketing is the synergistic and mutually beneficial use of an organization's core competencies and resources to deal with key stakeholders so as to bring about organizational and societal benefits. ​

Accepted Answer

A) True 
 B)False  False

Question 3

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)  attitudes
D)  budgets
E)  buying patterns E

Question 4

_____ responsibilities relate to a business's contributions to stakeholders.

Accepted Answer

A)  Economic
B)  Legal
C)  Ethical
D)  Voluntary
E)  Social responsiveness

Question 5

The _____ of ethics involves embedding values, norms, and artifacts in organizations, industries, and society.

Accepted Answer

A)  institutionalization
B)  rationalization
C)  commercialization
D)  mobilization
E)  enforcement

Question 6

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 7

Laws and regulations change over time; however, in the United States the thrust of most business legislation can be summed up as

Accepted Answer

A)  any practice is permitted.
B)  any practice is permitted that does not substantially reduce competition and harm consumers or society.
C)  any practice is permitted that does not substantially harm consumers or society, but this applies only within the United States.
D)  any practice is permitted that does not harm the environment.
E)  any practice is permitted that does not break the law.

Question 8

Donation of computer equipment to schools by Toshiba would be associated with _____ responsibilities.

Accepted Answer

A)  economic
B)  voluntary
C)  legal
D)  ethical
E)  minimum

Question 9

The _____ regulates tobacco, dietary supplements, vaccines, veterinary drugs, medical devices, cosmetics, products that give off radiation, and biological products.

Accepted Answer

A)  World Trade Organization
B)  Consumer Financial Protection Agency
C)  Department of Justice
D)  Environmental Protection Agency
E)  The Food and Drug Administration

Question 10

One of the steps the U.S. Sentencing Commission delineated companies must implement to demonstrate due diligence is that a firm must develop and disseminate a code of conduct that communicates required standards and identifies key risk areas for the organization. ​

Accepted Answer

A) True 
 B)False

Question 11

Sarbanes-Oxley is considered to be the most sweeping financial overhaul of the regulatory system since the Great Depression. ​

Accepted Answer

A) True 
 B)False

Question 12

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...

Question 13

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 14

Which of the following provide incentives for developing core practices within a firm that could help ensure ethical and legal compliance?

Accepted Answer

A)  Department of Justice, Sarbanes-Oxley Act, and Open Compliance Ethics Group
B)  Department of Justice, Dodd-Frank Act, and Sarbanes-Oxley Act
C)  Federal Sentencing Guidelines for Organizations, tSarbanes-Oxley Act, and Dodd-Frank Act
D)  Food and Drug Administration, Federal Sentencing Guidelines for Organizations, and Sarbanes-Oxley Act
E)  Securities and Exchange Commission and Sarbanes-Oxley Act

Question 15

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 16

Anticompetitive strategies that focus on weakening or destroying a competitor have spurred antitrust legislation and include all of the following except

Accepted Answer

A)  sustained price cuts.
B)  free samples.
C)  discriminatory pricing.
D)  price collusion.
E)  corporate espionage.

Question 17

_____ is the synergistic and mutually beneficial use of an organization's core competencies and resources to deal with key stakeholders so as to bring about organizational and societal benefits.

Accepted Answer

A)  Social responsibility
B)  Business ethics
C)  Corporate philanthropy
D)  Strategic philanthropy
E)  Cause-related marketing

Question 18

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 19

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 20

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)  Consumer Financial Protection Bureau
D)  Occupational Health and Safety Administration
E)  Equal Employment Opportunity Commission

Exam 4: The Institutionalization of Business Ethics