Lessons 5-6

Question 1

Much of the blame for corporate scandals like Enron and WorldCom can be placed on the audit committees of the boards of directors

Answer 1

False

Question 2

Best World resources Inc. is a big gaming company with Stanley Ho as major stakeholder from Taiwan.

Answer 2

False

Question 3

The BW Resources Inc. scandal was the stock manipulation of PSE for the benefit of Joseph Estrada

Answer 3

True

Question 4

SEC Memorandum Circular No. 19 Series of 2016, covers all private corporations in the Philippines under supervision of the SEC

Answer 4

False

Question 5

Both board director, officers, including the top managements of corporations are fiduciaries (persons placed in positions of trust) for the shareholders.

Answer 5

False

Question 6

The public’s view of business ethics has always been very high until the recent scandals.

Answer 6

False

Question 7

The major questions related to the conventional approach to business ethics are “Whose norms do we use?” and “What norms are prevailing?”

Answer 7

True

Question 8

The best reason to base one’s ethics on societal norms is that the norms do not conflict; thus they provide clear guidance to “right” and “wrong.”

Answer 8

False

Question 9

Ethical behavior is generally considered to be on a higher plane than legal behavior.

Answer 9

True

Question 10

In business decisions ethics, the environment and the law are not factors.

Answer 10

False

Question 11

Ethics refers to issues of right and wrong, fairness, and justice.

Answer 11

True

Question 12

The principal internal stakeholders of a corporation are its customers and employees.

Answer 12

False

Question 13

Immoral management implies that decision makers know right from wrong, but choose to do wrong.

Answer 13

True

Question 14

The relationship between government and business has become adversarial, but is improving.

Answer 14

False

Question 15

In many ways the most controversial aspect of the government/business relationship is deregulation.

Answer 15

False

Question 16

Government regulation generally arises out of some type of market failure.

Answer 16

True

Question 17

Keeping people informed is an important social goal of government.

Answer 17

True

Question 18

Government regulation of business through the control of economic or market variables is a form of social regulation.

Answer 18

False

Question 19

DTI is the government agency that is responsible for the country’s competitiveness and innovativeness contributing to inclusive growth and employment generation.

Answer 19

True

Question 20

At least 5, but not more than 13 members of Board of Directors should be elected by stockholders.

Answer 20

False

Question 21

The method by which a firm is being governed, directed, administered, or controlled is

management by objectives
management by crisis
corporate governance
management by decree

Answer 21

corporate governance

Question 22

The group that is elected by shareholders to govern and oversee management is the

board of directors
investment council
top management
governing board

Answer 22

board of directors

Question 23

The people hired by the board to run the company and operate it on a daily basis is

the administration
employee council
the management
the executive team

Answer 23

the management

Question 24

Boards have recently improved in all of the following ways except

more directors own stock in the company
more directors are independent
more boards are likely to demand change
reducing executive pay

Answer 24

reducing executive pay

Question 25

Directors who have some sort of ties to the firm are termed dependent directors outside directors inside directors independent directors

Answer 25

inside directors

Question 26

The discipline that deals with what is good and bad and with moral duty and obligation is values morality ethics business ethics

Answer 26

ethics

Question 27

Which of the following is not one of the major approaches to thinking about business ethics? coventional approach principles approach ethical tests approach rights and duties approach

Answer 27

rights and duties approach

Question 28

The approach to business ethics in which we compare a decision or practice to prevailing norms of acceptability is the virtue approach ethical tests approach conventional approach principles approach

Answer 28

conventional approach

Question 29

The minimum standard of ethical behavior can be thought of as avoiding punishment living according to religious principles adhering to the law following the Golden Rule

Answer 29

adhering to the law

Question 30

The challenge in all managerial situations is take what can be done and what should be done and find the least coastly approach a balance the more practical solution the most effective action

Answer 30

a balance

Question 31

Modern goals for business include all of the following except fair pay promoting the social welfare a safe working environments the equal employment opportunities

Answer 31

promoting the social welfare

Question 32

Which of the following is not a method that government uses to influence business? regulation taxation lobbying industrial policy

Answer 32

lobbying

Question 33

Government regulations have been criticized for all the following reasons except being ineffective being burdensome to business being too extensive being too costly

Answer 33

being ineffective

Question 34

The act of controlling business through laws passed by the government is called reregulation central planning regulation deregulation

Answer 34

regulation

Question 35

Which of the following is not a major reason given for governmental regulation? controlling natural monopolies maintaining trade surplus with foreign countries controlling negative externalities achieving social goals

Answer 35

maintaining trade surplus with foreign countries

Question 36

Method of ethical reasoning where benefits and costs are fairly distributed.

Answer 36

justice

Question 37

A cyber-crime where a branch manager siphoned almost a billion pesos.

Answer 37

Metro Bank

Question 38

Transfer of millions of $ from Bangladesh CB to a bogus local account

Answer 38

RCBC

Question 39

It seeks to preserve competition in the marketplace, thereby protecting consumers

Answer 39

antitrust laws

Question 40

Method of ethical reasoning where it aligns with good character.

Answer 40

virtues