7 - Common Unethical Practices of Business Establishments Flashcards

1
Q

2 types of unethical problems of business establishments

A
  1. Misinterpretation
  2. Over-persuasion
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2
Q

Actively misrepresenting about the product or customers

A

Direct Misinterpretation

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3
Q

Placing the product in containers of exaggerated sizes to give false impression of its actual contents; only filled up to 85-95% of their capacity

A

Deceptive Packaging

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4
Q

Practice of making false statements on the label of a product making its container similar to a well-known product

A

Misbranding

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5
Q

Greatly exaggerates the virtues of a product and tells only half of the truth.

A

False Advertising

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6
Q

Useful purpose if it conveys the right information; principal means by which people are informed about the availability.

A

Advertising

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7
Q

Unethical practice of debasing a pure or genuine commodity by imitating or counterfeiting it.

A

Adulteration

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8
Q

Mechanism of the weighing scale is tampered so that the scale registers more than the actual weight.

A

Short weighing

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9
Q

Measurement is shorter than the real length or smaller in volume than the standard.

A

Short measurement

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10
Q

Seller gives customer less than the number ask or paid for

A

Short numbering

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11
Q

Omitting unfavorable information about the product or service

A

Indirect Misinterpretation

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12
Q

Means “let the buyer beware”

A

Caveat emptor

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13
Q

Seller is not obligated to reveal any defect in the product; it is the responsibility of the customer to determine for himself

A

Caveat emptor

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14
Q

Deliberate withholding of significant info; no business transaction is fair where one of the parties does not exactly know what he is giving away or receiving in return

A

Deliberate Withholding of Information

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15
Q

Contributes to the impression that businessmen are liars and are out to make a fast buck.

A

Passive deception

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16
Q

Unable to provide the customer with the complete information that they need to make a fair decision

A

Business ignorance

17
Q

Process of appealing to the emotions of a prospective customer and urging him to buy an item; necessary in the selling of goods if done in the interest of a buyer

A

Persuasion

18
Q

Persuasion used for the sole benefit of selling a product without considering the interest of the buyer is not ethical

A

Over-Persuasion

19
Q

2 types of unethical practices of corporate management

A
  1. practices of the BOD
  2. practices of executive officers
20
Q

BOD help themselves to the earnings that otherwise would go to other stockholders

A

Plain Graft

21
Q

Often practiced by a person who holds directorial positions in 2 or more corporation that do business with each other and may involve conflict or interest and can result to disloyal selling.

A

Interlocking Directorship

22
Q

Happens when this person is compelled to decide which of the two corporation’s interest should be protected or upheld.

A

Disloyal selling

23
Q

When they fail to attend board meetings regularly; non-attendance of board meetings could result to betrayal of trust of the parties who elected them to their positions

A

Negligence of Duty

24
Q

Involved trading in a public company’s stock by someone who has non-public material information

A

Insider Trading

25
Q

Insider trading is ____ if material information is still non-public

A

Illegal

26
Q

Any information that could substantially impact on investor’s decision to buy or sell the security

A

Material non-public information

27
Q

Insider trading is ____ when directors purchase or sell shares but disclose their transactions legally

A

Legal

28
Q

President or Vice President reports his personal vacation as a business trip so he can get reimbursement for his expenses

A

Claiming a vacation trip to be a business trip

29
Q

Ask company employees to do personal things for them on company time

A

Having employees do work unrelated to the business

30
Q

Managers do not provide adequate controls to discourage employees from engaging in unethical practices.

A

Loose or ineffective controls

31
Q

Unfair labor practices committed by employer

A

Unfair labor practices

32
Q

Employers claim non-existent losses so they can be exempted from paying minimum wage required by law.

A

Making false claims about losses to free themselves form paying the compensation and benefits provided by law.

33
Q

Committed by a person having authority over another

A

Sexual Harassment

34
Q

Arises when employee who is duty bound to protect interests of his employer violates this obligation by getting himself into situations where his decision is influenced by what he can gain personally from it.

A

Conflicts of Interest

35
Q

Dishonest acts

A

Dishonesty