QUESTION 1
1. Accountants must abide by a strict code of ethics that defines their responsibilities to
their clients only.
their clients and the public interest.
the public only.
their investors and shareholders.
government regulators.
2 points
QUESTION 2
1. Which of the following has been identified by the Ethics Resource Center as the leading form of observed misconduct in organizations?
Discrimination
Bullying
Lying
Misuse of company resources
Sexual harassment
2 points
QUESTION 3
1. ________ is the offering of something of value in order to gain an illicit advantage.
Shoulder surfing
Hacking
Gift exchange
Conflicts of interest
Bribery
2 points
QUESTION 4
1. What type of fraudulent activity involves an employee who assists a consumer in fraud?
Whacking
Duplicity
Guile
Defamation
Collusion
2 points
QUESTION 5
1. The ________ makes it illegal for individuals, firms, or third parties doing business in American markets to “make payments to foreign government officials to assist in obtaining or retaining business.”
U.S. Foreign Corrupt Practices Act (FCPA)
Kyoto Protocol
World Trade Organization (WTO)
Consumer Protection Act
Gramm-Leach-Bliley Act
2 points
QUESTION 6
1. Issues related to fairness and honesty may arise because business is sometimes regarded as a
legal case, where everything must be done to the letter of the law.
contest, with the most ethical firm "winning."
guerilla war where anything goes in the fight for consumers' dollars.
game governed by its own rules rather than those of society.
game governed by the rules of society.
2 points
QUESTION 7
1. A company can be sued for discrimination if it
hires minorities.
maintains reasonable minority standards.
discharges a minority individual, but has a just cause for doing so.
uses age as a hiring or firing criterion.
has more men than women on staff.
2 points
QUESTION 8
1. Concerns involving copyright infringement on books, movies and music, and other illegally produced goods relate to which type of ethical issue?
Conflict of interest
Honesty
Communications
Discrimination
Intellectual property rights
2 points
QUESTION 9
1. Affirmative action programs
involve the promotion of unqualified employees.
are not imposed by federal law on employers.
are not very commonly used anymore because there is no need to protect minorities.
only involve the training of individuals.
involve the recruitment, hiring, promotion, and training of qualified individuals.
2 points
QUESTION 10
1. The six principles of the Defense Industry Initiative on Business Ethics and Conduct became the foundation for
Better Business Bureau ethical guidelines.
the Federal Sentencing Guidelines for Organizations.
the Ethical Trading Initiative.
the Federal Trade Commission compliance requirements.
the Sarbanes-Oxley Act.
2 points
QUESTION 11
1. The 1960s saw a rise of consumerism. What is consumerism?
An increase in consumer rights by organizations and governments
The growth of international retail chain stores
Activities undertaken by independent individuals, and groups to protect their rights as consumers
The widespread adoption of consumer oriented marketing strategies among businesses
Organizations’ tendency to seek ways to take advantage of consumers
2 points
QUESTION 12
1. Which of the following is not one of the benefits of being ethical and socially responsible in business?
Greater employee commitment
A high degree of employee dissent
Improved customer trust and satisfaction
Increased investor loyalty
Better financial performance
2 points
QUESTION 13
1. Which of the following is not something a firm might do to encourage organizational ethics and compliance?
Employee ethics training
Hiring a compliance officer
Ignoring potential ethical issues
Writing a code of ethics
Conducting an ethics and compliance audit.
2 points
QUESTION 14
1. Which of the following was developed in the 1980s to guide corporate support for ethical conduct by establishing a method for discussing best practices?
Federal Sentencing Guidelines for Organizations
Defense Industry Initiative on Business Ethics and Conduct
Corporate codes of conduct
United States Sentencing Commission
MERCOSUR
2 points
QUESTION 15
1. ________ is essential in building long-term relationships between businesses and consumers.
Profits
Dividends
Trust
Hubris
Codes of ethics
2 points
QUESTION 16
1. More than a compliance program, business ethics is becoming
a management issue to achieve competitive advantage.
less accepted by society.
mainly a government regulatory issue.
an initiative led by nonprofit organizations.
a program that decreases profits but increases societal benefits.
2 points
QUESTION 17
1. In the Reagan/Bush eras, the major focus of the business world was on
self-regulation rather than regulation by government.
decreasing the number of mergers.
decreasing the multinational presence in the U.S. marketplace.
increasing government influence on the economic arena.
improving business ethics.
2 points
QUESTION 18
1. Public health and safety and support of local organizations are issues most relevant to which stakeholder group?
Investors
Community
Suppliers
Customers
Employees
2 points
QUESTION 19
1. Which of the following do not typically engage in transactions with a company and thus are not essential for its survival?
Employees
Secondary stakeholders
Primary stakeholders
Investors
Customers
2 points
QUESTION 20
1. Why do critics argue that high compensation for boards of directors is a bad thing?
It is too expensive for the organization.
It could cause conflicts of interest between the directors and the organization.
It is not fair to poorly compensated employees.
High pay will render the board less complacent.
Board of director compensation is not a major issue.
2 points
QUESTION 21
1. Which of the following is a major ethical concern among corporate boards of directors?
Compensation
The non-traditional directorship approach
Dividend reporting
Corporate social audits
Debt swaps
2 points
QUESTION 22
1. Stakeholders' power over businesses stems from their
ability to withdraw or withhold resources.
ability to generate profits.
media impact.
political influence.
stock ownership.
2 points
QUESTION 23
1. The specific steps for implementing the stakeholder perspective do not include which of the following?
Identifying stakeholder groups
Identifying stakeholder issues
Identifying and gaining stakeholder feedback
Identifying and gaining government feedback
Assessing organizational commitment to social responsibility groups
2 points
QUESTION 24
1. One policy to address the issue of executive pay was implemented by J.P. Morgan, it stated that ________.
there should be no limit on what top executives can earn.
managers should earn no more than twenty times the pay of other employees.
top managers should make the same amount as other employees.
employees can determine how much managers make.
the government should determine the worth of each manager’s service.
2 points
QUESTION 25
1. Which of the following is not a method typically employed by firms when researching relevant stakeholder groups?
Surveys
Focus groups
Internet searches
Press reviews
Guessing
2 points
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