CH. 4, 10, 16

Question 1

What are beliefs about what is right and what is wrong is called?

Answer 1

ethics

Question 2

When you are faced with options which all have negative consequences, what you are experiencing?

Answer 2

an ethical dilemma

Question 3

What is a code of ethics?

Answer 3

a formal written document defining the ethical standards of an organization

Question 4

The obligation of a business to contribute to society is referred to as

Answer 4

social responsibility

Question 5

Consumerism focuses on all of the following rights except:

a. the right to choose.
b. the right to be heard.
c. the right to be safe.
d. the right to privacy.

Answer 5

d. the right to privacy.

Question 6

What is the piece of legislation that set higher ethical standards for public corporations and accounting firms?

Answer 6

Sarbanes–Oxley Act

Question 7

Sustainable development

Answer 7

means doing business to meet the needs of the current generation without harming the ability of future generations to meet their needs

Question 8

Stakeholders of a business include all of the following except:

a. employees.
b. investors.
c. regulators.
d. customers.

Answer 8

c. regulators

Question 9

Companies offer bribes overseas even though it is illegal because it is an accepted practice in foreign countries.

Answer 9

True

Question 10

What is a systematic evaluation of how well a firm is meeting its ethics and social responsibility goals?

Answer 10

a social audit

Question 11

Financial institutions accept money in the form of deposits (from individuals and businesses) and then loan them out to borrowers

Answer 11

True

Question 12

What type of depository institution is a cooperative owned by its members, and is a nonprofit organization?

a. investment bank
b. savings and loan association
c. commercial bank
d. credit union

Answer 12

d. credit union

Question 13

The Banking Act of 1933 established the

Answer 13

Federal Deposit Insurance Corporation (FDIC)

Question 14

FDIC

Answer 14

Federal Deposit Insurance Corporation

Question 15

The Securities and Exchange Commission was created by the

Answer 15

Securities Act of 1934

Question 16

Purchasing common stock is a way to loan money to a corporation.

Answer 16

False

Question 17

The rights of common stockholders include all of the following except:

a. rights to manage.
b. preemptive rights.
c. rights to dividends.
d. voting rights.

Answer 17

a. rights to manage.

Question 18

An initial public offering (IPO) is offered through the secondary market.

Answer 18

False

Question 19

All of the following are questions you should ask yourself before investing except:

a. How much money can you make?
b. How long can you leave your money invested?
c. How much tolerance do you have for risk?
d. How much are you able to invest?

Answer 19

a. How much money can you make?

Question 20

The investment strategy of buying and holding means

Answer 20

purchasing a diversified set of securities and then holding them for a long period of time

Question 21

Two of the best known market indices are the Dow Jones Industrial Average and the S&P 500.

Answer 21

True

Question 22

The Internet2 is a noncommercial network that uses high–speed connectivity to improve education, research, and collaboration among member organizations.

Answer 22

True

Question 23

refers to using Internet–based storage capacity, applications and processing power to replace internally owned computer resources.

Answer 23

Cloud computing

Question 24

A _______ gives managers access to large amounts of data and the processing power to convert these data into high–quality information.

Answer 24

decision support system

Question 25

An Internet–based firm that specializes in the secure electronic transfer of funds is known as a(n) _______.

Answer 25

cybermediary

Question 26

When you purchase songs from iTunes, you are participating in a _______ e–commerce transaction.

Answer 26

B2C

Question 27

Which of the following refers to an Internet marketing strategy that tries to involve customers and others not employed by the seller in activities that help promote the product? a. Idea marketing b. Neuromarketing c. Viral marketing d. Permission marketing

Answer 27

c. Viral marketing

Question 28

Radio frequency identification (RFI)

Answer 28

uses technology that stores information on a microchip and transmits it to a reader when the product is within a specific range.

Question 29

is a scam in which official–looking emails are sent to individuals in an attempt to get them to divulge private information such as passwords, usernames, and account numbers.

Answer 29

Phishing

Question 30

A virus is malicious computer software that can spread on its own without being attached to other files

Answer 30

False

Question 31

A hacker is a skilled computer user who uses his/her expertise to gain unauthorized access to the computer (or computer system) of others, sometimes with malicious intent

Answer 31

True