Question 1

A company's obligations to society,including the welfare of people and places affected by company activities is called _____.

Accepted Answer

A)   utilitarianism
B)   corporate social responsibility
C)   ethics
D)   integrity
E)   the moral imperative B

Question 2

Of the following,which is NOT true of the Enron financial scandal?

Accepted Answer

A)   It was a key event leading the U.S.Congress to pass the Sarbanes-Oxley Act of 2002.
B)   The scandal surprised no one because Enron was always regarded as an unethical company.
C)   In 2000,corporate revenues exceeded $100 billion.
D)   The company's former president,Jeffrey Skilling,led Enron to abuse an accounting practice known as mark to market accounting.
E)   The truth about Enron was revealed in 2001. B

Question 3

Internal auditing is an example of a(n)_____ control.

Accepted Answer

A)   feedforward
B)   feedback
C)   vertical
D)   horizontal
E)   identical B

Question 4

He perpetrated a financial scandal in the 1920s by using money received from later investors to provide early investors with returns on their investment.

Accepted Answer

A)   Warren G.Harding
B)   Kenneth Lay
C)   Charles Ponzi
D)   Bernard Madoff
E)   Albert Fall

Question 5

Adherence to moral and ethical principles; soundness of moral character; and honesty demonstrates _________.

Accepted Answer

The answer of Adherence to moral and ethical principles; soundness...

Question 6

SOX requires that the CEO and the CFO of a publicly traded corporation must certify in each periodic report containing financial statements that the report fully complies with the Securities Exchange Act of 1934 and that the information fairly represents the company's financial condition and results of operations.

Accepted Answer

A) True 
 B)False

Question 7

The four basic steps in ethical decision making are: define all the facts and circumstances,identify the people affected,determine the alternative decisions and consequences,and make the decision and carry it out.

Accepted Answer

A) True 
 B)False

Question 8

A person of integrity has two essential characteristics: (1)knowledge about what morally constitutes the right thing to do and (2)_____.

Accepted Answer

A)   follows the steps of ethical decision making
B)   the ability to solve an ethical dilemma
C)   the courage to do what is right
D)   the ability to evaluate goals and objectives
E)   the ability to think cognitively

Question 9

The Sarbanes-Oxley Act increased the potential prison sentence for fraud to _____ years.

Accepted Answer

A)   5
B)   10
C)   15
D)   25
E)   50

Question 10

Of the following statements,which is NOT true about ethics and integrity?

Accepted Answer

A)   A person of integrity has knowledge about what morally constitutes the right things to do.
B)   A person of integrity has the courage to do what is right.
C)   Ethical situations are always black and white.
D)   There are four basic steps in ethical decision making.
E)   An ethical dilemma occurs when one must make a choice among alternative actions and the right choice is not absolutely clear.

Question 11

The Foreign _______ Practices Act is a U.S.federal law that consists of two parts: an anti-bribery provision and a requirement to maintain an adequate internal control system over financial books and records

Accepted Answer

The answer of The Foreign _______ Practices Act is a...

Question 12

Vivendi,a French-based multination corporation,gained international scorn when it was discovered they cooked their books to make their performance appear better than it actually was for the purpose of making a number of acquisitions.

Accepted Answer

A) True 
 B)False

Question 13

The Corruption ________ Index is a report published each year by Transparency International,providing metrics to the potential corruption risk for 174 countries.

Accepted Answer

The answer of The Corruption ________ Index is a report...

Question 14

_________ are a system of rules and procedures within a business designed to ensure the accuracy and reliability of financial and accounting information

Accepted Answer

The answer of _________ are a system of rules and...

Question 15

Of the following,which is NOT a mandate that companies with corporate social responsibility strive to do?

Accepted Answer

A)   Provide a quality product or service to its customers
B)   Treat its employees with dignity and respect
C)   Do whatever it takes to be profitable
D)   Meet its legal obligations
E)   Fairly deal with suppliers

Question 16

In 2005,Bernie Ebbers of WorldCom was recognized by the Better Business Bureau for his company being a leader in social responsibility.

Accepted Answer

A) True 
 B)False

Question 17

Scenario - Bradley Corporation
The Bradley Corporation manufactures packaged food items that are sold around the globe.Baby food is the prominent product line currently produced by the corporation.Many of the customers for these products are located in third world countries where infant nutrition is a serious problem.
Bradley has recently decided to change its internal management structure.New managers for the corporation are now in place; however these new leaders do not appear to have the same value system as the former leaders.The former leaders embraced the idea of product safety and exhibited integrity in the production of the corporation's product lines.While the new managers claim these are important to them also,it seems the bottom line profit has precedent with them.
These changes have created concern in the company.There is strong disapproval for the way the company is conducting its business at the present time.The Board of Directors for Bradley is facing the serious question of whether profit is the only thing that matters now to the corporation.
-The Bradley Corporation is faced with a decision that involves selling an outdated product such as baby food to foreign markets to make a large profit versus losing money by destroying outdated products.Which of the following best identifies what the Bradley Corporation is experiencing?

Accepted Answer

A)   A financial predicament
B)   An ineffective board
C)   The actions of a profitable business
D)   A matter for internal decision making
E)   An ethical dilemma

Question 18

The FIRST basic step in ethical decision-making is to

Accepted Answer

A)   identify who will be affected by the situation.
B)   determine how the decision will benefit you.
C)   define all the facts and circumstances.
D)   identify alternate decisions and consequences.
E)   carry out the decision.

Question 19

Which of the following is NOT true regarding the Foreign Corrupt Practices Act?

Accepted Answer

A)   It was passed in 1952.
B)   It is a U.S.federal law that contains two parts.
C)   It has an anti-bribery provision.
D)   It has a requirement to maintain an adequate internal control system over financial records.
E)   A few people complain that the FCPA puts American firms at a disadvantage against non-U.S.competitors.

Question 20

Scenario - Bradley Corporation
The Bradley Corporation manufactures packaged food items that are sold around the globe.Baby food is the prominent product line currently produced by the corporation.Many of the customers for these products are located in third world countries where infant nutrition is a serious problem.
Bradley has recently decided to change its internal management structure.New managers for the corporation are now in place; however these new leaders do not appear to have the same value system as the former leaders.The former leaders embraced the idea of product safety and exhibited integrity in the production of the corporation's product lines.While the new managers claim these are important to them also,it seems the bottom line profit has precedent with them.
These changes have created concern in the company.There is strong disapproval for the way the company is conducting its business at the present time.The Board of Directors for Bradley is facing the serious question of whether profit is the only thing that matters now to the corporation.
-There is a distinct difference in the value systems between the original and new managers of the Bradley Corporation.All of the following except which one represents a key issue in ethics education,which if reinforced to the new managers,could strengthen their current value systems?

Accepted Answer

A)   Reinforcement of corporate governance
B)   Reinforcement of ethical decision-making
C)   Identification of ethical leadership
D)   Recognition for the necessity of vast profits
E)   Fortifying information regarding the responsibility of business in society

Exam 8: Control of Global Business

A company's obligations to society,including the welfare of people and places affected by company activities is called _____.

Of the following,which is NOT true of the Enron financial scandal?

Internal auditing is an example of a(n) _____ control.

He perpetrated a financial scandal in the 1920s by using money received from later investors to provide early investors with returns on their investment.

Adherence to moral and ethical principles; soundness of moral character; and honesty demonstrates _________.

The four basic steps in ethical decision making are: define all the facts and circumstances,identify the people affected,determine the alternative decisions and consequences,and make the decision and carry it out.

A person of integrity has two essential characteristics: (1) knowledge about what morally constitutes the right thing to do and (2) _____.

The Sarbanes-Oxley Act increased the potential prison sentence for fraud to _____ years.

Of the following statements,which is NOT true about ethics and integrity?

The Foreign _______ Practices Act is a U.S.federal law that consists of two parts: an anti-bribery provision and a requirement to maintain an adequate internal control system over financial books and records

Vivendi,a French-based multination corporation,gained international scorn when it was discovered they cooked their books to make their performance appear better than it actually was for the purpose of making a number of acquisitions.

The Corruption ________ Index is a report published each year by Transparency International,providing metrics to the potential corruption risk for 174 countries.

_________ are a system of rules and procedures within a business designed to ensure the accuracy and reliability of financial and accounting information

Of the following,which is NOT a mandate that companies with corporate social responsibility strive to do?

In 2005,Bernie Ebbers of WorldCom was recognized by the Better Business Bureau for his company being a leader in social responsibility.

The FIRST basic step in ethical decision-making is to

Which of the following is NOT true regarding the Foreign Corrupt Practices Act?