Business Ethics and Society

Question 1

Which of the following companies was NOT implicated in a scandal in the early 2000s?

A) Enron

B) Coca-Cola

C) Tyco International

D) All of the above were implicated in scandals

Answer 1

The correct answer is D:) All of the above were implicated in scandals. Due to the various different scandals occurring in the early 2000s, federal regulations concerning businesses were tightened. One example of this is the Sarbanes-Oxley Act.

Question 2

Command and control regulations

A) Prevent a person in a position of power from exploiting their power for their own benefit.

B) Allow a lawyer to withdraw legal representation for their client.

C) Regulate how a company should manage certain processes that pollute the environment.

D) Make it illegal for any person to bribe a foreign official.

Answer 2

The correct answer is C:) Regulate how a company should manage certain processes that pollute the environment.

Question 3

The purpose of the International Monetary Fund is to

A) Help developing countries strengthen their economies.

B) Prevent international trade crises.

C) Loan money to individual banks so that they don’t go bankrupt.

D) Meticulously track the flow of currency from country to country.

Answer 3

The correct answer is B:) Prevent international trade crises. It regulates the trade deficits of countries, and can loan them money if it is necessary.

Question 4

Considered from an ethical standpoint, MNCs should

A) Conform to the labor standards of the country in which the particular business operates.

B) Conform to the highest standards in all businesses whether overseas or not.

C) Pick and choose with its businesses which laws to conform to.

D) Refuse to engage in outsourcing as it can only be harmful to the origin country’s economy.

Answer 4

The correct answer is B:) Conform to the highest standards in all businesses whether overseas or not. However, this can be expensive and hinder the business’ effectiveness. Therefore, the ethical and financial interests are at odds.

Question 5

Which of the following describes a type of conflict of interest where a broker owns securities and spreads rumors about them to make the price go up, then sells them before the price goes back down?

A) Pump and dump

B) Family interest

C) Self-dealing

D) Outside employment

Answer 5

The correct answer is A:) Pump and dump.

Question 6

Which of the following is true about spam?

A) It is messages sent electronically to a large number of people.

B) It is unsolicited.

C) It can be send through email, instant messaging, blogs or other electronic methods.

D) All of the above

Answer 6

The correct answer is D:) All of the above.

Question 7

Business ethics is

A) A highly specialized brand of ethics which focuses on the correctness of businesses contributing to political campaigns.

B) A branch within most companies which works to ensure that employees are not cheating the business in any way.

C) An attempt to apply moral and ethical principles to business actions.

D) None of the above

Answer 7

The correct answer is C:) An attempt to apply moral and ethical principles to business actions. Although answer A may be one area to which business ethics could be applied, answer C is the most correct.

Question 8

A noisy withdrawal would be done by which of the following?

A) Lawyers

B) Police officers

C) Managers

D) All of the above

Answer 8

The correct answer is A:) Lawyers. A noisy withdrawal is when a lawyer becomes aware of frauds committed by their client and withdraws legal representation for their client.

Question 9

Noisy withdrawal is

A) The study of designing more comfortably or easily used equipment.

B) When a person is in a position to exploit their power for their own benefit.

C) A moral theory which claims that the morality of an action is determined by the morality of the action itself – regardless of the consequence.

D) When a lawyer withdraws legal representation for their client and notifies the proper authorities.

Answer 9

The correct answer is D:) When a lawyer withdraws legal representation for their client and notifies the proper authorities.

Question 10

What is environmental justice?

A) When companies consider environmental issues when they make business decisions.

B) When issues are brought before a court which involve environmental factors.

C) A move toward equality among all races in issues relating to environmental hazards.

D) A collective movement by governments worldwide to decrease the emission of greenhouse gases.

Answer 10

The correct answer is C:) A move toward equality among all races in issues relating to environmental hazards.

Question 11

A conflict of interest is

A) The study of designing more comfortably or easily used equipment.

B) When a person is in a position to exploit their power for their own benefit.

C) A moral theory which claims that the morality of an action is determined by the morality of the action itself – regardless of the consequence.

D) When a lawyer withdraws legal representation for their client and notifies the proper authorities.

Answer 11

The correct answer is B:) When a person is in a position to exploit their power for their own benefit.

Question 12

A software designer knows that there are some minor problems with the software they are developing. However, if they wait to declare the product finished, it will not be released before another similar product, which would be highly damaging to its success. From the standpoint of an act utilitarian, the person would most likely

A) Consider the people that will be using the software and wait to release it because it would not be fair to them to sell a damaged product.

B) Decide that the benefits of releasing the software now outweigh the costs, and present the product as finished.

C) Release the software even with its flaws because their good intentions of protecting the products popularity absolve them of any feeling of dishonesty.

D) None of the above

Answer 12

The correct answer is B:) Decide that the benefits of releasing the software now outweigh the costs, and present the product as finished.

Question 13

The CEO of a company works to raise stock prices because they will get a bonus if stock prices increase by a certain percentage. Which of Kohlberg’s stages are they in?

A) Stage 2

B) Stage 3

C) Stage 4

D) Stage 6

Answer 13

The correct answer is A:) Stage 2. In this stage, people are most concerned with obtaining rewards, such as a bonus because of a rise in stock prices.

Question 14

If a person owns a cupcake business and works in a cupcake factory, what type of conflict of interest is it considered?

A) Pump and dump

B) Family interest

C) Self-dealing

D) Outside employment

Answer 14

The correct answer is D:) Outside employment. This is when a person has two jobs which conflict with each other.

Question 15

Which of the following terms describes a moral theory which derives morality from actions?

A) Teleological ethics

B) Consequentialism

C) Deontological ethics

D) None of the above

Answer 15

The correct answer is C:) Deontological ethics. Deontological ethics claims that the morality of an action is determined by the morality of the action itself – regardless of the consequence.

Question 16

Which of the following statements is TRUE?

A) According to teleological ethics an action’s morality is determined based on its consequence.

B) According to Kantian ethics an action’s morality is determined based on its consequence.

C) According to deontological ethics an action’s morality is independent of its consequence.

D) According to consequentialism an action’s morality is independent of its consequence.

Answer 16

The correct answer is A:) According to teleological ethics an action’s morality is determined based on its consequence. Teleology is a type of consequentialism.

Question 17

Which of the following best describes soft money?

A) Money that is donated to political parties for the purpose of party building activities.

B) Money that the government injects into the economy for a short time to stimulate investment.

C) Money that is donated to political candidates to help fund their campaigns.

D) Money that is not based on the gold standard, but rather holds its value on the faith of citizens.

Answer 17

The correct answer is A:) Money that is donated to political parties for the purpose of party building activities. It used to be that soft money was not regulated as strictly and it was an easy way for wealthy individuals and corporations to get around hard money contribution limits.

Question 18

Which of the following situations would be considered moral under Kantian theory?

A) Studying for a test because you know that if you do, then you will do well on the test.

B) Stealing from a store because you know that if you do then you will have nicer things and be happier.

C) Helping an elderly neighbor because you feel sorry that they have no one to help them.

D) Telling the truth because you think that it is the right thing to do.

Answer 18

The correct answer is D:) Telling the truth because you think that it is the right thing to do. Kant believed that emotions and consequences were irrelevant to morality.

Question 19

The president of a company must decide whether to continue to sell textbooks that he knows have incorrect information in them or not. Considered from the standpoint of Kantian ethics, the president would most likely

A) Discontinue the sale of the textbooks because of a perceived responsibility to society.

B) Continue the sale of the textbooks because as a general rule the practice is not unconditional.

C) Discontinue the sale of the textbooks because as a general rule the practice is not unconditional.

D) Continue the sale of the textbooks because it would be detrimental to the company to cease sales.

Answer 19

The correct answer is C:) Discontinue the sale of the textbooks because as a general rule the practice is not unconditional.

Question 20

A manager implements new safety procedures because they feel obligated to protect the safety of their employees. Which of Kohlberg’s stages does this describe?

A) Stage 3

B) Stage 4

C) Stage 5

D) Stage 6

Answer 20

The correct answer is C:) Stage 5. In this stage, people act because they feel an obligation to society, like the manager feels an obligation to protect their workers.

Question 21

Which of the following is a standard which aids companies in improving their environmental practices?

A) ISO 14001

B) ISO 2052

C) Clean Air and Water Act

D) Both A and B

Answer 21

The correct answer is A:) ISO 14001. ISO 14001 is a voluntary standard which attempts to aid companies in creating continually improving practices.

Question 22

Hiring family members would be considered which type of conflict of interest?

A) Pump and dump

B) Nepotism

C) Outside employment

D) Self-dealing

Answer 22

The correct answer is B:) Nepotism. Nepotism, or family interest, refers to considering the interests of family ahead of what is truly best for the business. It can occur in terms of hiring, firing, promoting, employment benefits or other factors.

Question 23

The Alien Tort Claims Act

A) Regulates the marketing and sale of potentially dangerous products.

B) Prevents U.S. citizens from exercising legal rights in foreign countries.

C) Creates equal trade of agricultural products among all nations.

D) Allows foreign citizens to bring a citizen of the United States to trial in the United States.

Answer 23

The correct answer is D:) Allows foreign citizens to bring a citizen of the United States to trial in the United States. This is useful for preventing multinational corporations for engaged in illegal business practices in countries outside the United States.

Question 24

Which of the following is NOT a type of loophole that developed in response to limitations placed on hard money contributions?

A) Issue ads

B) Non-point source contributions

C) PACs

D) Independent expenditures

Answer 24

The correct answer is B:) Non-point source contributions. The correct term is nonpoint source pollution and it is not related to campaign contributions.

Question 25

The purpose of the World Bank is to A) Help developing countries strengthen their economies. B) Prevent international trade crises. C) Loan money to individual banks so that they don’t go bankrupt. D) Monitor the flow of valuable materials from country to country.

Answer 25

The correct answer is A:) Help developing countries strengthen their economies. The World Bank has the responsibility of fostering economic development. It loans with the purpose of the countries using that money to grow economically and then be able to pay back the loan.

Question 26

A person helps an old lady across the street because they think that it is the right thing to do, and makes them feel useful and happy. Which of Kohlberg’s stages are they in? A) Pre-conventional B) Conventional C) Nominal D) Post conventional

Answer 26

The correct answer is D:) Post conventional. In the post conventional stage, a person is ruled by conscience instead of society.

Question 27

A child cleans their room so that they will be allowed to go to a friend’s house. Which of Kohlberg’s stages are they in? A) Pre-conventional B) Conventional C) Post conventional D) Nominal

Answer 27

The correct answer is A:) Pre-conventional. In the pre-conventional stage the main goal of a person is survival. The justification of actions comes from a simple understanding of punishment and reward systems.

Question 28

Which of the following is NOT related to the interactions that occur between government and businesses? A) Bipartisan Campaign Reform Act B) Federal Election Campaign Act C) Truth in Advertising regulations D) All of the above are related to government and business interactions

Answer 28

The correct answer is D:) All of the above are related to government interactions. The laws named in answers A and B relate to how businesses can donate to political campaigns. Truth in advertising regulations are a way that governments regulate businesses.

Question 29

Which of the following statements is NOT true? A) The debate over the ethics of bluffing is ongoing. B) It is only logical that a businessperson would feel obliged to in many cases to not share all of the information available to them, and to bluff where necessary to achieve the best outcome for the company. C) Any company that is caught bluffing in negotiations for government contracts is immediately brought under investigation by the SEC and those involved may face criminal charges. D) In many cases bluffing and deception can be a large hindrance to the progression of negotiations and just make it more difficult for all involved. It can also cause a bad reputation to be formed of an executive or company that would be detrimental.

Answer 29

The correct answer is C:) Any company that is caught bluffing in negotiations for government contracts is immediately brought under investigation by the SEC and those involved may face criminal charges.

Question 30

Which of the following moral theories considers the action resulting in the greatest benefit to all people as the most moral action? A) Act utilitarianism B) Rule utilitarianism C) Relativism D) Deontology

Answer 30

The correct answer is A:) Act utilitarianism. This practice is called maximizing utility.

Question 31

Cost benefit considerations would be most typical of which of type of ethics? A) Consequentialism B) Egoism C) Kantian D) Utilitarianism

Answer 31

The correct answer is D:) Utilitarianism. The idea behind utilitarianism is to “maximize utility.” In other words the focus is on considering the benefits and costs and if the benefits are greater than the costs then the action is moral.

Question 32

Which of the following acts conflict with the Privacy Act of 1974? A) Patriot Act B) US Foreign Corrupt Practices Act C) Sarbanes-Oxley Act D) Bipartisan Campaign Reform Act

Answer 32

The correct answer is A:) Patriot Act.

Question 33

Which of the following is NOT a responsibility that should be considered by businesses? A) Economic B) Fiduciary C) Philanthropic D) Legal

Answer 33

The correct answer is B:) Fiduciary. The four types of responsibility are economic, legal, ethical and philanthropic.

Question 34

Which of the following statements is FALSE about the merger between Delta Air Lines and Northwest Airlines in 2008? A) The merge brought into question whether or not the new airline would have market power because it was the largest airline in the world. B) It was determined that the merge did not create a monopolistic situation because the two airlines were focused in different areas. C) Because Delta and Northwest are not the only two airlines there is no way that the merge could be considered anticompetitive. D) All of the above statements are true.

Answer 34

The correct answer is C:) Because Delta and Northwest are not the only two airlines there is no way that the merge could have been considered anticompetitive. If the merge had created a monopolistic situation, such as if Delta and Northwest were the only two airlines which had flights to New York (or another city), than the merge would have been anticompetitive.

Question 35

Which of the following is NOT an example of how corporate espionage can occur? A) Hacking into a company’s computer systems B) Bugging a competitor’s office C) Digging through a competitor’s trash cans D) All of the above are examples of corporate espionage

Answer 35

The correct answer is D:) All of the above are examples of corporate espionage.

Question 36

Which type of responsibility is the LEAST regulated? A) Economic B) Legal C) Ethical D) Philanthropic

Answer 36

The correct answer is D:) Philanthropic. Because philanthropic responsibilities are essentially charitable acts, it is fundamentally impossible for there to be any sort of requirements or regulations surrounding them.

Question 37

Corporate citizenship is A) A policy which demands that a company “gives back” to the communities in which it operates. B) The responsibility of a business to ensure the maximum returns to its investors. C) A system of accountability, oversight and control within the company. D) The consideration of large companies about the well-being of society when they make business decisions.

Answer 37

The correct answer is D:) The consideration of large companies about the well-being of society when they make business decisions. Corporate citizenship is also referred to as corporate social responsibility (CSR).

Question 38

Which of the following statements about Corporate Social Responsibility is FALSE? A) It describes the consideration of large companies about the well being of society when they make business decisions. B) It is unanimously agreed that there is a dire need for it in today’s society. C) It requires that companies consider people and the environment along with their own profit. D) All of the above statements are true.

Answer 38

The correct answer is B:) It is unanimously agreed that there is a dire need for it in today’s society. Some feel that CSR disrupts the normal function of an economy and over regulates business practices. Others feel that this fact outweighs the negative impacts caused by irresponsible business practices.

Question 39

Businesses with a mindset of “the customer is always right” often find themselves subject to more of which type of fraud? A) Consumer B) Accounting C) Marketing D) More than one of the above

Answer 39

The correct answer is A:) Consumer. A mindset of “the customer is always right” denotes that a company works to please and cater to its customers. This gives customers more room to manipulate or deceive the business.

Question 40

Fossil fuels are a A) Renewable resource B) Non-point source pollutant C) Non-renewable resource D) Threat to environmental justice

Answer 40

The correct answer is C:) Non-renewable resource. Non-renewable resources are resources which either cannot be replenished, or which, like fossil fuels, take millions of years to do so.

Question 41

The merger between Delta Air Lines and Northwest Airlines raised concerns about which of the following? A) Monopolies B) Government intervention in the economy C) Tariffs D) Subsidies

Answer 41

The correct answer is A:) Monopolies. The merger resulted in Delta becoming the largest airline in the world, and it had to be determined whether it would give them market power.

Question 42

Ethical and philanthropic responsibilities are important in building A) Reputation B) Gross profit margins C) Corporate governance D) None of the above

Answer 42

The correct answer is A:) Reputation. Good ethics and philanthropic actions help a business in developing its reputation. A good reputation can take decades to develop, and can really make a difference in the success of a business. Reputation affects everyone from employees to investors to consumers. In a very real sense, a business’s reputation can be what gives it its value.

Question 43

If a resource is used at the same rate at which it can be replenished it is described as A) Environmental degradation B) Environmental neutralization C) Environmental equilibrium D) Environmental renewal

Answer 43

The correct answer is C:) Environmental equilibrium. Although this is obviously preferable to environmental degradation, it is a fairly precarious balance.

Question 44

Which of the following is NOT a reason that President Clinton’s attempt at health care reform in the early 1990s failed? A) Poor timing. The proposal took so long to complete that people weren’t worried anymore. B) Ethics. Most people felt that the program (which charged more for middle class people) was highly unethical and would not support it. C) Politics. Congress members were annoyed that they had little involvement in its creation. D) All of the above are correct reasons for the failure.

Answer 44

The correct answer is B:) Ethics. Most people felt that the program (which charged more for middle class people) was highly unethical and would not support it. Timing and political reasons, along with the role of insurance corporations in criticizing it, played the largest role in the failure of the bill.

Question 45

Which of the following is NOT an attempt at creating a universal ethical standard? A) Global Sullivan Principles B) United Nations Global Compact C) Caux Round Table D) Universal Ethics Protocol Organization

Answer 45

The correct answer is D:) Universal Ethics Protocol Organization. Principles of the Global Sullivan Principles include promoting equality and respect for human rights, refusing to accept bribes and ensuring employee safety. The GSP has been accepted by over 30 large companies. The UN’s Global Compact similarly is signed by many large companies and focuses on protecting the environment, abolishing child labor and permitting unions to form. The Caux Round Table is an independent organization which works to teach and spread ethical practices to companies throughout the world.

Question 46

Which of the following is NOT an example of social engineering? A) Dumpster diving B) Shoulder surfing C) Password guessing D) Phone eavesdropping

Answer 46

The correct answer is A:) Dumpster diving. Dumpster diving is a form of corporate espionage, but is not a form of social engineering. Shoulder surfing, password guessing and eavesdropping on phones are all common ways of social engineering however. Social engineering is using, tricking or deceiving individuals in an attempt to gain access to private information about a company.

Question 47

Which of the following groups would not be considered a stakeholder? A) Customers B) Employees C) Management D) All of the above are stakeholders

Answer 47

The correct answer is D:) All of the above are stakeholders. Stakeholders are people who are affected by the decisions that the company makes. This can include not only the shareholders, but also the managers and other employees, people who reside in the area and customers of the company.

Question 48

Which of the following is TRUE? A) PACs are organized by SIGs B) PACs and SIGs are organized by political parties C) SIGs are organized by PACs D) None of the above

Answer 48

The correct answer is A:) PACs are organized by SIGs. A special interest group (SIG) is any group which uses involvement in politics to further their beliefs and positions. Special interest groups do this by organizing political action committees (PACs).

Question 49

Who has legal responsibility for a company’s actions in a corporation? A) Chief Executive Officer B) Board of Directors C) Stakeholders D) Shareholders

Answer 49

The correct answer is B:) Board of Directors. The board of directors holds legal responsibility for the success of the firm and use of its assets, however they rarely control the day to day management of the firm. Rather, the board meets a few times a year and the managers and corporate officers oversee the actual day to day workings of the business.

Question 50

Which of the following is the best example of point source pollution? A) An oil spill B) Fertilizer runoff C) Smoke stacks D) Smog

Answer 50

The correct answer is A:) An oil spill. Point-source pollution is a term relating to water pollution that has a specific and identifiable source. Answer C is specific and identifiable, but it is a form of air pollution.

Question 51

Which of the following terms is most synonymous with philanthropy? A) Implied falsity B) Reciprocity C) Altruism D) Egoism

Answer 51

The correct answer is C:) Altruism. Altruism refers to placing the needs of another above oneself, such as through philanthropic acts. Reciprocity is the idea of treating others how you would wish to be treated.

Question 52

Which of the following statements is TRUE? A) Trade secrets are new, non-obvious things that a company produces. B) Trademarks are information that a company wishes to keep private. C) Logos, jingles and brand names can all be examples of trademarks. D) Patents can be obtained for written materials.

Answer 52

The correct answer is C:) Logos, jingles and brand names can all be examples of trademarks. A trademark is anything which can be used to identify a specific product.

Question 53

Which of the following is NOT a regulation for insiders trading stock? A) They must report stock trades within two business days of the trade B) They cannot buy and sell within a six month time frame C) They can only sell stock amounting to a 10 million dollar value at a time D) All of the above are regulations over insider trading

Answer 53

The correct answer is C:) They can only sell stock amounting to a 10 million dollar value at a time. Answers A and B are required for insiders legally trading stock.

Question 54

Which of the following is NOT a conflict of interest? A) When a detective is involved with a case in which a close friend is a suspect. B) When a Congressman votes on a bill which benefits them financially. C) When a manager hires an employee who is also a close friend. D) All of the above are conflicts of interest.

Answer 54

The correct answer is D:) All of the above are conflicts of interest.

Question 55

The fact that in many cases a company’s worth is greater than the value of its tangible assets is referred to as A) Corporate value B) Social value C) Goodwill D) Equity

Answer 55

The correct answer is C:) Goodwill. There are intangible benefits which come as a result of having a good reputation and the intangible benefit that makes a company worth more when it is purchased by another company is referred to as goodwill.

Question 56

Which of the following best describes rule utilitarianism? A) A person considers an action independently of a situation and determines whether it is more often moral or immoral to determine how to classify it in all situations. B) A person considers a situation and decides upon the easiest course of action. C) A person considers an action and determines whether it would end favorably for them. D) A person examines a situation, considers all possible actions they could take and decides which one would end most favorably for all involved.

Answer 56

The correct answer is A:) A person considers an action independently of a situation and determines whether it is more often moral or immoral to determine how to classify it in all situations.

Question 57

A person is given the opportunity to volunteer at a local food bank. They consider the other things they could do at that time, such as cleaning and watching TV. They know that the work that they do could really benefit people at the food bank, whereas the other activities only benefit themselves. They decide that the service is the best decision for them. What type of ethical theory does their thought process and decision follow? A) Rule utilitarianism B) Act utilitarianism C) Deontological theory D) Ethical egoism

Answer 57

The correct answer is B:) Act utilitarianism. A person examines a situation, considers all possible actions they could take and decides which one would end most favorably for all involved.

Question 58

Which of the following statements is TRUE? A) A grease payment involves relatively large amounts of money in comparison to bribes. B) A bribe involves extremely low level officials whereas a grease payment involves higher officials. C) A grease payment makes things that would normally occur happen at a faster rate. D) All of the above statements are incorrect.

Answer 58

The correct answer is C:) A grease payment makes things that would normally occur happen at a faster rate. In comparison, a bribe is an attempt to influence someone to act in a way that they normally would not. Therefore, bribes are illegal and grease payments are not.

Question 59

If people object to something being built near their homes it is referred to as A) NIMBY B) NIMHS C) NIMN D) Residential objectivity

Answer 59

The correct answer is A:) NIMBY. This stands for “not in my backyard.”

Question 60

Which of the following statements is TRUE? A) Taxes have only positive impacts on the economy because they increase the amount of money that people spend which is healthy for the economy. B) Taxes are universally bad. They are unethical, unnecessary and harmful to efficient market operations. C) Taxes negatively impact efficient economic operations by driving a wedge between businesses and customers. However, they are often necessary. D) None of the above statements are true.

Answer 60

The correct answer is C:) Taxes negatively impact efficient economic operations by driving a wedge between businesses and customers. However, they are often necessary. Taxes make it so the price that customers pay is higher than the revenue that the company receives. The mismatch makes the economy run less efficiently.

Question 61

Arable land is used for A) Farming B) Home development C) Business purposes D) Landfills

Answer 61

The correct answer is A:) Farming. Arable land is suitable for agricultural uses, i.e., farming.

Question 62

Which of the following is **NOT** a concern relative to outsourcing? A) Language and cultural barriers B) Security C) Long distance management difficulties D) All of the above are concerns about outsourcing

Answer 62

The correct answer is D:) All of the above are concerns about outsourcing. Other problems that arise are fraud, the qualifications of employees and questions about the responsibility of a company that outsources for the actions of the company it hires.

Question 63

Which of the following moral theories is **NOT** consequentialist? A) Teleology B) Act utilitarianism C) Egoism D) Kantian ethics

Answer 63

The correct answer is D:) Kantian ethics. Kantian ethics determines morality based on the morality of the action itself, not its consequences. It is deontological.

Question 64

Which of the following statements is TRUE? A) Sustainable development requires that all people be prevented from overusing resources through government regulations. B) Sustainable development emphasizes the development of new and innovative technologies to reduce the overuse of natural resources. C) Sustainable development describes a tenuous state in which resource use is equal to consumption. While it can be sustained, it is not optimal. D) None of the above

Answer 64

The correct answer is B:) Sustainable development emphasizes the development of new and innovative technologies to reduce the overuse of natural resources. Through developing new technologies that are more energy efficient, people can continue to operate as they had previously without having to sacrifice the health of the environment.

Question 65

Which of the following lists the four P’s of advertising? A) Product, Place, Promotion, Price B) Protocols, Product, Place, Process C) Place, Promotion, Product, Protocols D) None of the above

Answer 65

The correct answer is A:) Product, Place, Promotion, Price. Each of these advertising factors has a number of ethical concerns involved with it.

Question 66

Which of the following is **NOT** an unethical pricing strategy? A) Dumping B) Price cancellation C) Price discrimination D) Predatory pricing

Answer 66

The correct answer is B:) Price cancellation. Dumping, price discrimination and predatory pricing are all types of unethical pricing strategies.

Question 67

Which of the following is **NOT** a rule for creating maxims under Kantian ethics? A) A maxim must be unconditional B) A maxim must be specific C) A maxim must be universal D) All of the above are rules for creating maxims

Answer 67

The correct answer is B:) The maxim must be specific. Maxims used in Kantian ethics are supposed to generalized.

Question 68

Who is best known for creating the categorical imperative? A) Lawrence Kohlberg B) Jean Piaget C) Immanuel Kant D) John Stuart Mill

Answer 68

The correct answer is C:) Immanuel Kant. The categorical imperative is used to create the maxims which Kant believed morality should be determined using.

Question 69

Which of the following statements would be most correct under a classical view of business? A) Government regulations are useful in helping the economy run more efficiently. B) Government regulations should be considered on a cost-benefit analysis. C) Government regulations are always detrimental because the economy is selfcorrecting. D) None of the above

Answer 69

The correct answer is C:) Government regulations are always detrimental because the economy is self-correcting.

Question 70

Which act makes it illegal for US citizens to participate in bribes? A) Sarbanes-Oxley Act B) Anti-Bribery Act C) Foreign Corrupt Practices Act D) Whistleblower Act

Answer 70

The correct answer is C:) Foreign Corrupt Practices Act. The Foreign Corrupt Practice Act also makes it illegal for a person of any nationality to further a bribe while on United States soil.

Question 71

An employee of a donut shop does not steal donuts because they are afraid they would get fired if they did. Which of Kohlberg’s stages are they in? A) Stage 1 B) Stage 2 C) Stage 4 D) Stage 6

Answer 71

The correct answer is A:) Stage 1. In this stage a person is most concerned with avoiding punishment, such as getting fired.

Question 72

Does the Foreign Corrupt Practices Act include grease payments? A) Yes, grease payments are considered bribes and are therefore illegal under the FCPA. B) Yes, grease payments are not considered bribes and are therefore illegal under the FCPA. C) No, grease payments are considered bribes and are therefore not illegal under the FCPA. D) No, grease payments are not considered bribes and are therefore not illegal under the FCPA.

Answer 72

The correct answer is D:) No, grease payments are not considered bribes and are therefore not illegal under the FCPA.

Question 73

A stable state economy is in a state of A) Sustainable development B) Environmental renewal C) Efficient energy consumption D) Environmental equilibrium

Answer 73

The correct answer is D:) Environmental equilibrium.

Question 74

Which of the following is **NOT** regulated by the FDA? A) Blood transfusions B) Illegal drugs C) Vaccines D) Cosmetics

Answer 74

The correct answer is B:) Illegal drugs. Illegal drugs are monitored by the Drug Enforcement Agency (DEA).

Question 75

Which of the following is **NOT** a type of discrimination investigated by the EEOC? A) Gender B) Disability C) Education D) Religion

Answer 75

The correct answer is C:) Education. The EEOC investigates situations of discrimination based on age, gender, disability, race, color or religion.

Question 76

The EEOC investigates violations of the A) WARN Act B) Kyoto Protocol C) Sarbanes-Oxley Act D) Civil Rights Act of 1964

Answer 76

The correct answer is D:) Civil Rights Act of 1964.

Question 77

What does EEOC stand for? A) Equivalent Employment Opening Committee B) Equal Employment Opportunity Commission C) Equivalent Employment Opportunity Commission D) Equal Employment Opening Committee

Answer 77

The correct answer is B:) Equal Employment Opportunity Commission. The EEOC investigates discrimination based on age, gender, disability, race color and religion.

Question 78

A business practices underhanded accounting practices to raise stock prices and make money. Which type of ethics does this fall under? A) Social B) Economical C) Legal D) Both A and C

Answer 78

The correct answer is B:) Economical. Economic ethics have to do with business and money related issues.

Question 79

Which of the following describes in kind contributions? A) When a person contributes to a cause because they are in a good mood. B) When a person or company trades goods or services in place of money. C) When a company receives federal aid to implement a required environmental safety program. D) None of the above

Answer 79

The correct answer is B:) When a person or company trades goods or services in place of money. For example, donating lumber to an organization which builds homes for homeless people.

Question 80

Which of the following is NOT a benefit which can come to companies as a result of sustainable business practices? A) Assurance of the ability to operate in the future B) Lower energy costs and waste disposal costs in the long run C) Better relations with stakeholders D) All of the above are possible benefits

Answer 80

The correct answer is D:) All of the above are possible benefits. There are many benefits which come to companies as a result of safe and sustainable practices, of which answers A, B and C are all examples.

Question 81

What is the responsibility of the FDA? A) To regulate the marketing and sale of potentially dangerous products. B) To create regulations which limit the ability of grocery stores to advertise. C) To create equal trade of agricultural products among all nations. D) To ensure and protect public health and safety.

Answer 81

The correct answer is D:) To ensure and protect public health and safety. The FDA works to ensure that products are safe, sanitary and properly labeled.

Question 82

Which of the following is regulated by the FDA? A) Toys and appliances B) Alcohol C) Radioactive products D) Advertisement

Answer 82

The correct answer is C:) Radioactive products. Advertisement of most products is not regulated by the FDA, and neither are toys, appliances or alcohol. However, radioactive products are regulated by the FDA because they are a threat to public safety.

Question 83

The Kimberley Process Certification Scheme was created to stop the circulation of what? A) Rough diamonds B) Cut diamonds C) Conflict diamonds D) Uncertified diamonds

Answer 83

The correct answer is C:) Conflict diamonds. Conflict diamonds are also called war diamonds or blood diamonds.

Question 84

Which of the following is **NOT** an example of an in kind contribution? A) Donating lumber to an organization which builds homes for homeless people. B) Donating money to a humanitarian organization for the purchase of blankets. C) When two companies or people exchange services in place of paying each other. D) A broadcasting company airing a message for free instead of donating to a political campaign.

Answer 84

The correct answer is B:) Donating money to a humanitarian organization for the purchase of blankets. In kind contributions are when a person or company trades goods or services in place of money. In this example money is donated.

Question 85

The origins of the FDA can be traced to which of the following Acts? A) Pure Food and Drug Act B) Sarbanes-Oxley Act C) Sanitary Production Act D) Corporate Social Responsibilities Act

Answer 85

The correct answer is A:) Pure Food and Drug Act. The Pure Food and Drug Act was passed in 1906 to force food producing industries to practice sanitation.

Question 86

Which of the following is **NOT** a right outlined in the Privacy Act of 1974? A) A person has the right to request corrections to documents about them that are incomplete or incorrect. B) The act prevents unauthorized disclosure of information from systems of records to other people or government agencies. C) A person has the right to remove documents about themselves from government records. D) A person has the right to know of government records kept about them (in systems of records).

Answer 86

The correct answer is C:) A person has the right to remove documents about themselves from government records. A, B and D all correctly describe rights of the Privacy Act, however the act does not give a person the right to remove documents about themselves.

Question 87

Which of the following is **NOT** a way in which businesses are regulated? A) Protection of consumers B) Regulation of competition C) Ensure safety and equality D) All of the above are ways in which businesses are regulated

Answer 87

The correct answer is D:) All of the above are ways in which businesses are regulated. Business can regulated through actual laws (as in the three areas above) and through their own ethical codes.

Question 88

Which of the following is **NOT** a way that governments can influence businesses? A) Through PACs B) Taxes C) Procompetitive laws D) Tariffs

Answer 88

The correct answer is A:) Through PACs. PACs, or Political Action Committees are groups that work to campaign for a particular candidate. It is therefore a way that businesses can influence politics, not the other way around.

Question 89

OSHA was created to do which of the following? A) Protect consumers’ rights B) Ensure worker safety C) Ensure equality in the workplace D) Protect the market against monopolies

Answer 89

The correct answer is B:) Ensure worker safety. OSHA is the Occupational Safety and Health Administration and works to enforce safety laws and improve safety in the workplace.

Question 90

A virus is A) A piece of software which is able to delete information or damage programs on a computer. B) A piece of code which spreads from computer to computer and can disrupt computer functions. C) A piece of software which can send information over the internet to allow personalization. D) A type of message which is sent indiscriminately to a large number of people over the internet.

Answer 90

The correct answer is B:) A piece of code which spreads from computer to computer and can disrupt computer functions. For example, viruses can delete information, slow the computer down or damage software.

Question 91

What are conflict diamonds? A) Diamonds which are sold with the purpose of funding insurrection or war. B) Diamonds which different companies start a war over control for. C) Diamonds for which the country of origin is not known. D) None of the above

Answer 91

The correct answer is A:) Diamonds which are sold with the purpose of funding insurrection or war. For this reason they are also called war diamonds or blood diamonds.

Question 92

Which of the following is **NOT** an agency responsible for protecting worker’s health? A) OSHA B) EPA C) KPCS D) All of the above are responsible for protecting workers health

Answer 92

The correct answer is C:) KPCS. The Kimberly Protocol Certification Scheme (KPCS) works to reduce the circulation of conflict diamonds. OSHA and the EPA are responsible for protecting worker’s health.

Question 93

Protections for workers from workplace hazards are regulated and mandated by which agency? A) OSHA B) EPA C) KPCS D) Labor unions

Answer 93

The correct answer is A:) OSHA. OSHA stands for the Occupational Safety and Health Administration.

Question 94

Which of the following BEST describes affirmative action? A) Any program at a university which aims at increasing the presence of minority groups. B) A set of quotas that must be met by universities in admitting people of minority races. C) Any program which seeks to reverse the effects of any form of discrimination. D) A requirement under the ADA which forces employers to favor disabled workers.

Answer 94

The correct answer is C:) Any program which seeks to reverse the effects of any form of discrimination. The term affirmative action is most often used in terms of minority groups, though it technically applies to all forms of discrimination.

Question 95

Which of the following statements is TRUE? A) In almost every case, autocratic leadership has a negative impact on the workplace and should be substituted with either delegative or democratic styles. B) Although both compliance and values oriented ethical programs improve short run ethical practices in a workplace, in the long run values oriented programs show negative effects. C) The shareholder model of corporate governance is the precursor to the stakeholder model. D) An effective leader should be able to switch between transformational and transactional leadership styles.

Answer 95

The correct answer is D:) An effective leader should be able to switch between transformational and transactional leadership styles. Neither transformational nor transactional leadership is considered to be outright better than the alternative, and most people believe that a truly effective leader should be able to use both styles as the situation may demand.

Question 96

Some people believe that women earn less than men because female held jobs have been historically devalued, and that women should be given equal pay for equal work. This belief is called A) Comparable worth B) Affirmative action C) Glass ceiling D) Absenteeism

Answer 96

The correct answer is A:) Comparable worth. The idea is that jobs typically held by women receive lower pay on average than jobs typically held by men. Advocates of comparable worth work to ensure that jobs typically held by women that require the same amount of effort and risk as jobs typically held by men (even though they may not be similar) receive equal pay.

Question 97

Which of the following statements best describes the difference between corporate intelligence and corporate espionage? A) There is no difference between corporate intelligence and corporate espionage. They are two terms for the same thing. B) Both are illegal forms of information gathering. Corporate espionage focuses on the social engineering and more personal aspect of gathering information and corporate intelligence involves hacking and other software based methods of information gathering. C) Corporate espionage involves legally gathering information about a company and corporate intelligence involves illegally gathering information about a company. D) Corporate intelligence involves legally gathering information about a company and corporate espionage involves illegally gathering information about a company.

Answer 97

The correct answer is D:) Corporate intelligence involves legally gathering information about a company and corporate espionage involves illegally gathering information about a company.

Question 98

If a person were to sue a company for not fulfilling a contractual obligation, it would be a A) Civil rights case B) Civil case C) Criminal case D) Affirmative action case

Answer 98

The correct answer is B:) Civil case. In civil cases on party (the person) sues another party (the company) because they feel like their rights have been violated, in this case because the company did not fulfill their obligations.

Question 99

Which of the following statements is FALSE? A) Criminal laws are enforced by the government. B) The only ethical regulations businesses follow are mandated by the government. C) The ADA requires that “reasonable accommodation” be given to disabled employees. D) All of the above are true statements.

Answer 99

The correct answer is B:) The only ethical regulations businesses follow are mandated by the government. This is incorrect because many businesses have their own ethical standards and ethics programs. Also, many are governed by core practices which are ethical codes that are inherent within the business (for example, quality checks on products).

Question 100

The perceived “us” versus “them” mentality that emerges when doing business with different cultures is referred to as A) Egoistic perception B) Self reference criterion C) Cultural displacement D) Relativism

Answer 100

The correct answer is B:) Self reference criterion.

Question 101

An ombudsman is A) A type of program that is used in cost-benefit analysis to help companies make decisions. B) A leader in a movement to establish a union in a workplace. C) An intermediary who investigates complaints against a group. D) None of the above

Answer 101

The correct answer is C:) An intermediary who investigates complaints against a group. An ombudsman is hired by the group about which they investigate complaints and can be very helpful in increasing workplace efficiency.

Question 102

Which of the following does not relate in some manner to international trade? A) Kyoto Protocol B) NAFTA C) EEOC D) WTO

Answer 102

The correct answer is C:) EEOC. The EEOC (Equal Employment Opportunities Commission) has to do with employment in the United States whereas NAFTA (North American Free Trade Agreement), WTO (World Trade Organization) and the Kyoto Protocol all relate to trade on a multinational level.

Question 103

Which of the following did the Bipartisan Campaign Reform Act NOT do? A) Prohibited non-partisan ads funded by corporations or unions near elections. B) Stated that contributions exceeding $10,000 must be disclosed. C) Raised the amount of hard money that could be raised. D) The act did all of the above.

Answer 103

The correct answer is D:) The act did all of the above.

Question 104

Oversight refers to A) Finding ways to ensure that the decisions of managers and employees are aligned with the ethical principles and goals of the company. B) Finding ways to eliminate the opportunities for employees to act unethically. C) The ability of the company to consider decisions and improve where necessary. D) An ineffective leadership style in which leaders are constantly checking on the performance of employees.

Answer 104

The correct answer is B:) Finding ways to eliminate the opportunities for employees to act unethically. Specifically, oversight refers to creating a set of checks and balances which prevent employees from making unethical decisions.

Question 105

The FTC was created to monitor which type of regulation? A) Laws regulating competition B) Laws regulating equality and safety C) Laws regulating consumer protection D) None of the above

Answer 105

The correct answer is C:) Laws regulating consumer protection. More specifically, the FTC’s Bureau of Consumer Protection more specifically works to protect consumers from unfair business practices by regulating advertising and marketing, finances and protecting privacy.

Question 106

Which of the following is NOT a type of imperative considered under Kantian ethics? A) Categorical imperative B) Universal imperative C) Hypothetical imperative D) Practical imperative

Answer 106

The correct answer is B:) Universal imperative. Universality is a condition of a good maxim, however Kantian ethics does not discuss an universal imperative.

Question 107

Fast food places do not pay their workers less than minimum wage because it is against the law. Which of Kohlberg’s stages does this describe? A) Stage 1 B) Stage 2 C) Stage 3 D) Stage 4

Answer 107

The correct answer is D:) Stage 4. In Stage 4, people are motivated primarily by authority, such as the law.

Question 108

Which of the following is more typical of a values oriented ethical program than a compliance oriented ethics program? A) A strong focus on developing core values B) Formal descriptions of ethical standards C) Specific punishments tied to ethical performance D) None of the above

Answer 108

The correct answer is A:) A strong focus on developing core values. A values oriented program would still set forth some standards and punishments for obvious ethical violations, but they focus more on ensuring that employees adhere to a set of core values.

Question 109

Utilitarianism is a type of A) Consequentialism B) Relativism C) Deontological ethics D) Egoism

Answer 109

The correct answer is A:) Consequentialism. Utilitarianism considers the consequences of an action and the extent to which they benefit society in determining morality, therefore it is consequential.

Question 110

Which of the following is the stakeholder model of corporate governance? A) A manager must focus solely on improving the returns to stockholders and pleasing them. B) A manager must ensure that workplace decisions are aligned with the ethical principles and goals of the company. C) A manager must focus specifically on improving customer relations because customers are the most important stakeholders. D) A manager must consider which group of stakeholders is most important to please and then work towards developing positive long term relationships with that group.

Answer 110

The correct answer is D:) A manager must consider which group of stakeholders is most important to please and then work towards developing positive long term relationships with that group.

Question 111

A lawyer knows that their client is guilty, but defends them anyways. This falls under which type of ethics? A) Social B) Economical C) Legal D) Both B and C

Answer 111

The correct answer is C:) Legal. Legal ethics has to do with the actions of lawyers.

Question 112

A cookie A) Infects the computer so that black patches appear across the screen. B) Allows an origin site to send information to a computer’s browser. C) Is a type of software used to send out large amounts of email indiscriminately. D) All of the above

Answer 112

The correct answer is B:) Allows an origin site to send information to a computer’s browser. This way web sites can be personalized and shopping carts can “hold” items in your cart from visit to visit.

Question 113

Which of the following statements is FALSE? A) Random drug testing of employees is allowed in all cases. B) An employer does not have the right to demand that an employee take a lie detector test. C) Employers should not ask employees about off duty behaviors unless they are damaging to the company. D) None of the above

Answer 113

The correct answer is A:) Random drug testing of employees is allowed in all cases. Although in some professions (those which are deemed to have safety concerns involved) random drug testing is allowed, in others, drug testing is allowed only upon application or with reasonable cause.

Question 114

Which of the following is NOT true of NAFTA? A) NAFTA stands for North American Free Trade Agreement. B) As a part of NAFTA, Canada and the United States agree to help Mexico in trade matters. C) NAFTA works to lower trade barriers between the United States, Canada and Mexico. D) NAFTA is responsible for dealing with trade disputes between the United States, Canada and Mexico.

Answer 114

The correct answer is B:) As a part of NAFTA, Canada and the United States agree to help Mexico in trade matters. Answers A, C and D all describe responsibilities of NAFTA.

Question 115

Which of the following types of contributions to a political campaign have donation limits imposed by law? A) Soft money B) Foreign currency C) Hard money D) All of the above

Answer 115

The correct answer is C:) Hard money. Hard money is donated to a specific candidate for the purpose of campaigning and there are legal limits to the amount of hard money which a person or business can donate to a campaign.

Question 116

Which of the following theories claims that a person should only act in their own best interest? A) Consequentialism B) Kantian ethics C) Ethical egoism D) Ethical relativism

Answer 116

The correct answer is C:) Ethical egoism. In other words, the theory states that if it benefits the person then it is the right thing for them to do.

Question 117

Lobbying is A) Raising large amounts of money for a certain political candidate. B) Meeting with senators, representatives, staff members or other important people to persuade them to vote how you wish them to. C) Running ads that promote a certain political candidate or viewpoint. D) None of the above

Answer 117

The correct answer is B:) Meeting with senators, representatives, staff members or other important people to persuade them to vote how you wish them to.

Question 118

Which of the following theories claims that ethical beliefs are determined by the society in which one lives? A) Teleological ethics B) Ethical relativism C) Consequentialism D) Ethical egoism

Answer 118

The correct answer is B:) Ethical relativism. In other words, the theory states that there really is no universal set of morals because they are determined by the state and opinion of the society in which one lives.

Question 119

Which of the following aids employers in keeping information private? A) False Claims Act B) NDAs C) Civil Rights Act D) Fair Labor Standards Act

Answer 119

The correct answer is B:) NDAs. This stands for Non-Disclosure Agreements. They are legally binding and specify who isn’t allowed to share what information and for how long.

Question 120

Why did the Supreme Court rule in favor of Wal-Mart in the case of Dukes vs Wal-Mart? A) Because Dukes did not actually have any evidence showing discrimination. B) Because Dukes could not prove that all women employees faced discriminatory practices. C) Because Dukes consistently had negative performance reviews. D) None of the above

Answer 120

The correct answer is B:) Because Dukes could not prove that all women employees faced discriminatory practices. Dukes claimed to represent 1.6 million female employees of Wal-Mart.

Question 121

Which of the following is a way in which government interventions in the economy can be beneficial to consumers? A) Product safety regulations B) Import tariffs C) Taxes D) Both A and B

Answer 121

The correct answer is D:) Both A and B. Taxes make the economy operate less efficiently. Product safety regulations are beneficial to consumers by making products safer. Tariffs are not beneficial to consumers because it raises the price of imported goods allowing U.S. producers to charge more.

Question 122

Hard money is A) Donated to political parties B) Donated to a candidate’s campaign C) Donated specifically by a business D) All of the above

Answer 122

The correct answer is B:) Donated to a candidate’s campaign. Hard money is donated to a specific candidate for the purpose of campaigning and there are legal limits to the amount of hard money which a person or business can donate to a campaign.

Question 123

What is the purpose of the WARN Act? A) It requires employers to give workers notice before mass layoffs so that they can prepare. B) To stop the circulation of conflict diamonds by cautioning sellers that diamonds that are mined in areas where there are wars will not be purchased. C) To restore stakeholder confidence in securities markets by requiring that companies inform the public of their financial situation through general purpose financial statements. D) To lower greenhouse gas emissions. The act begins by acknowledging that there are serious possible consequences to not doing so.

Answer 123

The correct answer is A:) It requires employers to give workers notice before mass layoffs so that they can prepare. WARN stands for Workers Adjustment and Retraining Notification Act.

Question 124

Which of the following is **NOT** true of the WTO? A) The World Trade Organization deals with trade on a global level. B) One responsibility of the WTO is to help developing countries in trade matters. C) The WTO is responsible for overseeing trade disputes among its member countries. D) The WTO is governed by a conference of Secretariats with one Secretariat from each country.

Answer 124

The correct answer is D:) The WTO is governed by a conference of Secretariats with one Secretariat from each country. The WTO is governed via a Ministerial conference held every two years. NAFTA is governed by Secretariats.

Question 125

How many days of notice does the WARN Act require employers to give employees? A) 30 days B) 60 days C) 90 days D) 100 days

Answer 125

The correct answer is B:) 60 days. This allows the workers time to adjust their lives accordingly to an upcoming mass layoff or closure.

Question 126

Which of the following would **NOT** be illegal under the Foreign Corrupt Practices Act? A) If a company pays a low level official to ensure that their employees receive work visas more quickly than normal. B) If a company compensates an official in return for giving them preferential treatment in business contracts. C) If a company pays a building inspector to overlook certain regulations when considering whether their offices are built in line with safety regulations. D) All of the above are illegal under the Foreign Corrupt Practices Act.

Answer 126

The correct answer is A:) If a company pays a low level official to ensure that their employees receive work visas more quickly than normal. This would be a grease payment, which is not considered illegal under the Foreign Corrupt Practices Act.

Question 127

The Dukes vs. Wal-Mart case involves which issue? A) Illegal accounting practices B) Invasion of employee privacy C) Violation of an NDA D) Sexual discrimination

Answer 127

The correct answer is D:) Sexual discrimination. Dukes claimed that she was passed over for training that would have allowed her to advance to a salaried position because she was a woman.

Question 128

In the case of Watson vs. Fort Worth Bank and Trust the court ruled that A) It is always discriminatory for employers to hire on a basis of only subjective considerations. B) Employers always have the right to use whatever hiring practices they want, even if they may be inherently discriminatory. C) Employers may use subjective considerations for hiring as long as they do not produce a discriminatory environment. D) None of the above

Answer 128

The correct answer is C:) Employers may use subjective considerations for hiring as long as they do not produce a discriminatory environment. Although in Watson’s case the court did not find that there was significant evidence that this was the case.

Question 129

Which of the following is **NOT** true of sexual harassment? A) The claimant must be able to prove a hostile work environment was created. B) Sexual harassment is any repeated, unwanted behavior of a sexual nature. C) Sexual harassment can apply to physical actions, words, images and written material. D) The primary factor in sexual harassment cases is the intent of the action.

Answer 129

The correct answer is D:) The primary factor in sexual harassment cases is the intent of the action. On the contrary, the primary factor is the effect of the action, or how it is perceived, not the intent.

Question 130

Which of the following cases established that it was how actions were interpreted that matter in sexual harassment cases? A) Watson vs. Fort Worth Bank and Trust B) Harris vs. Forklift Systems, Inc. C) Dukes vs. Wal-Mart D) Roe vs. Wade

Answer 130

The correct answer is B:) Harris vs. Forklift Systems, Inc. It was determined that because a reasonable person would have been offended by the remarks made and would have interpreted them negatively it was a case of sexual harassment.

Question 131

Which of the following correctly describes the legality of camera surveillance methods in a workplace? A) All types of visual and audio surveillance are allowable in workplaces. B) Although audio surveillance is essentially unrestricted, there are limits to an employer’s use of video surveillance. C) Although video surveillance is essentially unrestricted, there are limits to an employer’s use of audio surveillance. D) No type of visual or audio surveillance is allowable in workplaces.

Answer 131

The correct answer is C:) Although video surveillance is essentially unrestricted, there are limits to an employer’s use of audio surveillance.

Question 132

A grease payment can also be called a A) Rush payment B) Facilitating payment C) Noisy withdrawal D) Bribe

Answer 132

The correct answer is B:) Facilitating payment. A grease payment is a bribe made to make something happen faster than it normally would.

Question 133

Which of the following would NOT be addressed in a Non-Disclosure Agreement? A) The time period in which the person may not discuss the confidential information B) Descriptions of the parties involved in the NDA C) Descriptions of the information which is to remain confidential D) All of the above would be addressed in an NDA

Answer 133

The correct answer is D:) All of the above would be addressed in an NDA.

Question 134

What is the purpose of the Kyoto Protocol? A) It requires employers to give workers notice before mass layoffs so that they can prepare. B) To stop the circulation of conflict diamonds. C) To restore stakeholder confidence in securities markets. D) To lower greenhouse gas emissions.

Answer 134

The correct answer is D:) To lower greenhouse gas emissions. The protocol aimed at lowering worldwide emissions by 5.2%, using 1990 as the benchmark year.

Question 135

Ergonomics is A) The study of designing more comfortably or easily used equipment. B) When a person is in a position to exploit their power for their own benefit. C) A moral theory which claims that the morality of an action is determined by the morality of the action itself – regardless of the consequence. D) When a lawyer withdraws legal representation for their client and notifies the proper authorities.

Answer 135

The correct answer is A:) The study of designing more comfortably or easily used equipment. With ergonomics, a person’s working environment is altered to suit them instead of the person having to adapt to their environment.

Question 136

In which of the following situations would an NDA **NOT** be used? A) When a potential investor wants access to proprietary information. B) When two companies are working together to develop a new product. C) When a company developing cutting edge technology hires a new employee. D) An NDA would be appropriate in all of the above situations.

Answer 136

The correct answer is D:) An NDA would be appropriate in all of the above situations. In each case described there will be information disclosed that the companies would want (and have a right) to keep confidential.

Question 137

Karen Silkwood is associated with which of the following? A) Kerr-McGee B) OSHA ) KPCS D) EEOC

Answer 137

The correct answer is A:) Kerr-McGee. Karen Silkwood was an employee of a plant, Kerr-McGee, which produced plutonium pellets to fuel nuclear reactors. She died suspiciously after investigating the plant’s inadequate safety measures.

Question 138

Which of the following is **NOT** illegal? A) Discrimination in general B) Statistical discrimination C) Unintentional discrimination D) Neither B nor C

Answer 138

The correct answer is D:) Neither B nor C. Statistical discrimination, also known as unintentional discrimination, is when numerically it appears that a certain group is being discriminated against, although it is a result of outside factors and not discrimination. It is therefore not illegal.

Question 139

The term glass ceiling relates to which of the following employer-employee relations issues? A) Wages B) Confidentiality C) Discrimination D) Labor union relations

Answer 139

The correct answer is C:) Discrimination. A glass ceiling is describes an invisible barrier to the advancement of a group. It is sometimes used to describe the fact that there are discriminatory practices facing certain groups.

Question 140

Which of the following does **NOT** focus on increasing the ethical awareness of employees and strengthening the ethical culture of a workplace? A) Transformational leadership B) Democratic leadership style C) Values oriented ethical programs D) All of the above focus on increasing ethical standards of employees

Answer 140

The correct answer is B:) Democratic leadership style. The democratic leadership style is a leadership style which involves collaboration and communication among leaders and workers. It’s not really involved with the ethical awareness of employees.

Question 141

The term quid pro quo relates to which of the following issues? A) Discrimination B) Sexual harassment C) Wages D) Environmental justice

Answer 141

The correct answer is B:) Sexual harassment.

Question 142

Which of the following is **NOT** an illegal basis of discrimination? A) Race B) Age C) Education D) Gender

Answer 142

The correct answer is C:) Education. Education relates to job qualifications and therefore it is not illegal to consider it when dealing with hiring and firing practices.

Question 143

Which of the following is **NOT** a guideline set forth by the Supreme Court to be used in creating affirmative action programs? A) The program should apply only to qualified candidates. B) There must be a strong demonstrable need for the program. C) The program should be temporary and flexible. D) All of the above are correct guidelines.

Answer 143

The correct answer is D:) All of the above are correct guidelines. It is important to be careful when designing affirmative action programs to avoid creating a status of reverse-discrimination. Therefore the program should fulfill a demonstrated need, benefit only qualified candidates and should not be strict and rigidly defined.

Question 144

Which of the following is **NOT** legally required in management relations with labor unions? A) That management bargain in good faith with labor unions. B) That management agrees to terms set forth by labor unions. C) That management agrees to negotiate with labor unions. D) That management addresses certain subjects such as wages and hours in negotiations with labor union representatives.

Answer 144

The correct answer is B:) That management agrees to terms set forth by labor unions. Although A, C and D are required of management, they do not have to agree to the terms set forth by labor unions.

Question 145

Which of the following statements BEST describes attitudes toward outsourcing? A) It is universally accepted that outsourcing is an unethical practice that doesn’t provide benefits to anyone. B) Outsourcing is often criticized, however it can have many economic benefits because it allows companies to produce at a lower cost. C) Outsourcing is a highly supported practice and most people wish to see more of it because it reduces ethical concerns that face businesses. D) All of the above

Answer 145

The correct answer is B:) Outsourcing is often criticized, however it can have many economic benefits because it allows companies to produce at a lower cost. Although outsourcing can reduce production costs for a business (thus increasing returns to stockholders and reducing the end price to consumers) it is often criticized for moving jobs away from locals. It also brings a whole new set of difficult economic concerns.

Question 146

The Fair Labor Standards Act A) Prohibits minimum wages that are too high. B) Prohibits unethical dual relationships that alter the terms of employment for employees. C) Sets forth standards for management in relations with labor unions. D) Makes discrimination on a basis of prior employment illegal.

Answer 146

The correct answer is C:) Sets forth standards for management in relations with labor unions. The FLSR states that management must negotiate with labor union representatives, negotiate in good faith and address topics such as employment conditions, wages and hours.

Question 147

Which of the following BEST describes the “old” social contract? A) Workers could expect good benefits in any job they chose. and perhaps even advance over time. C) Workers had no expectations of their work environments. They could be fired or laid off at any time. D) Employees must work to the best of their ability, increase their knowledge, improve over time and be loyal and ethical in their work to keep their jobs.

Answer 147

The correct answer is B:) If workers were loyal, punctual and at least decently efficient they could expect to keep their jobs and perhaps even advance over time.

Question 148

Implied falsity is A) Advertising which involves unreasonable and purposefully misleading claims B) Advertising which involves technically true claims which are misleading by nature C) Advertising which is not true in any sense D) None of the above

Answer 148

The correct answer is B:) Advertising which involves technically true claims which are misleading by nature.

Question 149

What type of information is compiled to answer a specific question? A) Ad hoc B) Proprietary information C) Stakeholder information D) Trade secrets

Answer 149

The correct answer is A:) Ad hoc. Ad hoc is a Latin term which literally means “for this.”

Question 150

Which of the following is **NOT** a result of a shift to the “new” social contract? A) Downsizing B) Higher expectations of workers C) Pay raises D) All of the above are results of a “new” social contract

Answer 150

The correct answer is C:) Pay raises. The “new” social contract of the workplace requires an employee to work to the best of their ability, increase their knowledge, improve over time and be loyal and ethical in their work. Often downsizing occurs because certain positions are unnecessary.

Question 151

The intent of the Sarbanes-Oxley Act was to A) Help companies be better able to deal with the ethical problems raised by increased technology. B) Restore stakeholder confidence in the securities market after a series of scandals in the early 2000s. C) Create a commission that would monitor the accounting records of major businesses. D) Scare businesses into conforming with the GAAP standards in their accounting practices.

Answer 151

The correct answer is B:) Restore stakeholder confidence in the securities market after a series of scandals in the early 2000s.

Question 152

Which of the following statements is **NOT** true? A) Outsourcing is when a company moves part of its business to another location. B) Outsourcing can help companies save money and keep prices down. C) Outsourcing is unanimously agreed to be a beneficial process. D) All of the above statement are true

Answer 152

The correct answer is C:) Outsourcing is unanimously agreed to be a beneficial process. There are positive and negative aspects of outsourcing.

Question 153

Which of the following is **NOT** a form of marketing fraud? A) Predatory pricing B) Misstating financial statements C) Price discrimination D) Untruthful advertising

Answer 153

The correct answer is B:) Misstating financial statements. Altering or incorrectly reporting financial statements would be a form of accounting fraud, not a form of marketing fraud. Predatory pricing, price discrimination and untruthful advertising are all marketing schemes.

Question 154

Which of the following is **NOT** a legal way for employers to monitor employees? A) Placing video cameras in workplaces B) Enquiring about off duty activities C) Viewing messages sent over company networks D) Listening to phone conversations on company lines

Answer 154

The correct answer is B:) Enquiring about off duty activities. Employers have very few rights over their employee’s off duty actions unless they can show that those actions are impairing their ability to do their job.

Question 155

The Tyco scandal is associated with which of the following Acts? A) WARN B) Sarbanes-Oxley Act C) Foreign Corrupt Practices Act D) Privacy Act

Answer 155

The correct answer is B:) Sarbanes-Oxley Act. Tyco executives used the company’s employee loan program to take extravagant vacations and give themselves bonuses without ever paying back the money. It was one of the scandals which spurred the Sarbanes-Oxley Act.

Question 156

Corporate governance is A) A policy which demands that a company “gives back” to the communities in which it operates. B) The responsibility of a business to ensure maximum returns to its investors. C) A system of accountability, oversight and control within the company. D) The consideration of companies about the well-being of society when they make business decisions.

Answer 156

The correct answer is C:) A system of accountability, oversight and control within the company.

Question 157

An employer who posted a list of weekly responsibilities for employees to fulfill would best be described as following which leadership style? A) Transformational B) Democratic C) Authoritative D) Free reign

Answer 157

The correct answer is C:) Authoritative. The authoritative, or autocratic, leadership style involves a leader who makes decisions and tells employees what their responsibilities are.

Question 158

Absenteeism

Answer 158

When an employee is chronically absent from work.

Question 159

Act utilitarianism

Answer 159

A person examines a situation, considers all the possible actions they could take and decides which one would end most favorably for all involved.

Question 160

Affirmative action

Answer 160

Programs which seek to reduce or reverse the effects of past discrimination.

Question 161

Alien Tort Claims Act

Answer 161

Allows foreign citizens to bring a citizen of the United States to trial in the United States.

Question 162

Bipartisan Campaign Reform Act

Answer 162

(BCRA) Designed to limit the use of soft money in political campaigns.

Question 163

Body language

Answer 163

The way that people’s bodies are used in communication, such as through gestures, poses or facial expressions.

Question 164

Bribe

Answer 164

An attempt to influence someone to make a decision they wouldn’t normally make.

Question 165

Caux Round Table

Answer 165

A Swiss organization which works to create awareness in businesses and teaches strategies to maintain a minimum ethical standard.

Question 166

CEO

Answer 166

Chief Executive Officer. Responsible for running the company, but must report to a board of directors.

Question 167

CFO

Answer 167

Chief Financial Officer. Responsible for managing budgets, investments and financial goals.

Question 168

Child labor laws

Answer 168

Any law which regards the labor standards affecting persons under 18.

Question 169

CIO

Answer 169

Chief Information Officer. Responsible for managing a company’s information systems.

Question 170

Civil Rights Act

Answer 170

Act which provides protection against discrimination.

Question 171

Command and Control Regulation Conflict

Answer 171

Regulations which dictate how a company should manage certain processes that pollute the environment.

Question 172

Conflict diamonds

Answer 172

Diamonds which are mined and sold by groups or countries to fund insurrections.

Question 173

Conflict of interest

Answer 173

When a person has multiple roles or interests which influence each other.

Question 174

Consequentialism

Answer 174

A term encompassing any moral theory which bases morality on the consequence of an action.

Question 175

Conventional morality

Answer 175

A person’s main goal is conforming to societal norms and values and bases morality on what is expected of them.

Question 176

Cookie

Answer 176

Used to track a person’s information and preferences while they are on the internet.

Question 177

Corporate social responsibility

Answer 177

The consideration of large companies about the well being of society when they make business decisions.

Question 178

Deontological ethics

Answer 178

Claims that the morality of an action is determined by the morality of the action itself – regardless of the consequence.

Question 179

Discrimination

Answer 179

Treating a person differently on a basis of race, color, religion, gender or other factors.

Question 180

Dukes vs Wal-Mart

Answer 180

Dukes unsuccessfully attempted to sue Wal-Mart for discrimination against women.

Question 181

Ecology

Answer 181

The interaction of people (and businesses) with the environment.

Question 182

Economical ethics

Answer 182

Ethics regarding business and money related issues.

Question 183

Economics

Answer 183

The study of all of the markets over a particular geographic area.

Question 184

Enron

Answer 184

Company which hid billions of dollars in debt through dishonest accounting practices.

Question 185

Environmental justice

Answer 185

A move toward equality among all races in issues relating to environmental hazards.

Question 186

Environmental Protection Agency

Answer 186

(EPA) Works to protect workers through regulating environmental factors.

Question 187

Environmental racism

Answer 187

When environmental hazards affect different races disproportionately.

Question 188

Equal Employment Opportunity Commission

Answer 188

A federal agency which investigates violations of the Civil Rights Act.

Question 189

Ergonomics

Answer 189

The study of designing more comfortably or easily used equipment.

Question 190

Espionage

Answer 190

When companies spy on each other.

Question 191

Ethical egoism

Answer 191

The belief that people should act only in their best interests.

Question 192

Ethical relativism

Answer 192

The belief that ethics are a product of society, and are therefore determined by it.

Question 193

Ethnicity

Answer 193

Cultural origin.

Question 194

Facilitating payment

Answer 194

Another name for a grease payment.

Question 195

False Claims Act

Answer 195

Law which encourages whistle blowing on companies committing fraud against the federal government.

Question 196

Family interest

Answer 196

When family interests come into play in business decisions. Such as hiring a family member.

Question 197

Federal Labor Standards Act

Answer 197

Dictates child labor standards on the federal level.

Question 198

Food and Drug Administration

Answer 198

(FDA) A regulatory agency which was created to ensure public health and safety.

Question 199

Foreign Corrupt Practices Act

Answer 199

Law which makes it illegal for any US company to bribe foreign officials.

Question 200

Glass ceiling

Answer 200

An invisible barrier to the progress of women and minority groups.

Question 201

Grease payment

Answer 201

When a person pays a low level official of a foreign country to make something happen faster than it normally would.

Question 202

Hard money

Answer 202

Money legally donated to a candidate used for the purpose of campaigning.

Question 203

Hostile work environment

Answer 203

Created in sexual harassment cases when an action is unwanted, severe and has an effect on the claimant’s ability to work.

Question 204

In kind contribution

Answer 204

When a person or company trades goods or services in place of money.

Question 205

Insider trading

Answer 205

When a person trades stock when they have information not available to the general public which influences their actions.

Question 206

International Monetary Fund

Answer 206

(IMF) An organization which has the responsibility of stabilizing international trade and preventing international trade crises.

Question 207

Kantian ethics

Answer 207

Determines the morality of an action based on the feasibility of applying it as a universal rule.

Question 208

Karen Silkwood

Answer 208

An employee of Kerr-McGee who died suspiciously after investigating the plant’s inadequate safety measures.

Question 209

Kerr-McGee

Answer 209

A plant which produced plutonium pellets to fuel nuclear reactors.

Question 210

Kimberly Process Certification Scheme

Answer 210

Regulates the sale of diamonds to decrease the circulation of conflict diamonds.

Question 211

Kohlberg’s Model of Cognitive Moral Development

Answer 211

A six step model which describes the stages of human moral development.

Question 212

Kyoto protocol

Answer 212

Legally binding agreement aimed at reducing worldwide greenhouse gas emissions.

Question 213

Labor unions

Answer 213

A legal entity which bargains on behalf of employees to improve working conditions.

Question 214

Legal ethics

Answer 214

Ethics regarding the actions of lawyers.

Question 215

Living wage

Answer 215

A wage that is sufficient to allow education, reaction, health and eventually retirement.

Question 216

Martha Stewart

Answer 216

Arrested in 2001 for insider trading.

Question 217

Minimum wage

Answer 217

A government mandated standard of the lowest pay an employer can give an employee.

Question 218

Ministerial conference

Answer 218

Conference held every two years which appoints a director of the WTO.

Question 219

MNC

Answer 219

Multinational Corporation.

Question 220

Morality

Answer 220

Used to describe a person’s character, beliefs and how they will act or respond to different situations.

Question 221

New social contract

Answer 221

Employees are expected to increase their knowledge, improve over time, work their hardest and be loyal and ethical.

Question 222

Noisy withdrawal

Answer 222

When a lawyer becomes aware of frauds committed by their client and withdraws legal representation for their client.

Question 223

Non-disclosure agreement

Answer 223

An agreement between two or more groups to keep information private.

Question 224

North American Free Trade Agreement

Answer 224

(NAFTA) An agreement signed between Canada, Mexico and the United States to lower trade barriers.

Question 225

Occupational Health and Safety Administration

Answer 225

(OSHA) Works to protect workers against workplace hazards.

Question 226

Outside employment

Answer 226

Conflict of interest in which a person has multiple jobs and their interests conflict.

Question 227

Outsourcing

Answer 227

Outsourcing is when a company moves part of their business to another location (typically in another country).

Question 228

Philanthropy

Answer 228

Giving back to the community.

Question 229

Political action committees

Answer 229

(PACs) Organized by special interest groups to raise money and support for political candidates or issues.

Question 230

Post conventional morality

Answer 230

A person’s main goal is survival and they consider morality in terms of rewards and consequence.

Question 231

Pre conventional morality

Answer 231

A person is ruled by their own conscience and is motivated by an obligation to society.

Question 232

Predatory pricing

Answer 232

Providing goods at lower prices to drive competitors out of business and then raising the price.

Question 233

Price discrimination

Answer 233

When a company charges different amounts for a product in different situations.

Question 234

Privacy Act 1974

Answer 234

Protects the privacy of individuals as it relates to the government’s ability to gather information.

Question 235

Proprietary information

Answer 235

Information which a business wants kept private.

Question 236

Pump and dump

Answer 236

When a broker owns securities, inflates the price and sells them before it goes back down.

Question 237

Pure Food and Drug Act

Answer 237

Worked to counter diseases and sickness caused by low sanitation in food producing industries in 1906.

Question 238

Quid Pro Quo

Answer 238

Literally “something for something.” When two groups or companies exchange things of value.

Question 239

Rule utilitarianism

Answer 239

A person considers an action independently of a situation and determines whether or not it is moral as a rule.

Question 240

Sarbanes-Oxley Act

Answer 240

Act passed in 2002 which tightened accounting and auditing regulations.

Question 241

Secretariats

Answer 241

Three representatives comprising the governing body of NAFTA.

Question 242

Self-dealing

Answer 242

Conflict of interest in which a person is part of both ends of a deal.

Question 243

Sexual harassment

Answer 243

Any repeated, unwanted behavior of a sexual nature.

Question 244

Shoulder surfing

Answer 244

When a person looks over a person’s shoulder to learn their passwords or other information.

Question 245

Social engineering

Answer 245

Similar to hacking, but with the focus on gaining information through interactions with people.

Question 246

Social ethics

Answer 246

Ethics regarding the ways that people interact with each other.

Question 247

Soft money

Answer 247

Money which is donated to political parties for party building purposes.

Question 248

Spam

Answer 248

When a person (or business) sends out large amounts of electronic messages indiscriminately.

Question 249

Special interest groups

Answer 249

(SIGs) Any group which uses involvement in politics to further their beliefs and positions.

Question 250

Sustainable development

Answer 250

Using resources responsibly so that current and future needs can be met.

Question 251

The customer is always right

Answer 251

A mentality in which the business puts the needs and wants of the customer first.

Question 252

Truth in advertising

Answer 252

Law stating that a company must have truthful advertisements.

Question 253

Truth in lending

Answer 253

Protects borrowers by requiring that certain information be disclosed when a person is applying for a loan.

Question 254

Tyco

Answer 254

Company whose CEO and CFO were discovered stealing millions of dollars from them.

Question 255

US Foreign Corrupt Practices Act

Answer 255

A law which makes it illegal to a person to bribe a foreign official, or to further bribes while on US soil.

Question 256

USA PATRIOT Act

Answer 256

Allows the government a wide license to gather information in an attempt to protect against terrorism.

Question 257

Virus

Answer 257

A piece of code which is used to disrupt computer function.

Question 258

WARN Act

Answer 258

Requires that employers give their employees 60 days notice before mass layoffs.

Question 259

Whistle blowing

Answer 259

Exposing one’s employer (or business) for willfully committing illegal or unethical acts.

Question 260

World Bank

Answer 260

Has the responsibility of fostering economic development.

Question 261

World Trade Organization

Answer 261

(WTO) Designed to eliminate barriers to trade on a global level and assist developing countries in their trade.