MAN3065 Final exam practice test

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The first step toward understanding business ethics is to Answer- develop ethical-issue awareness. The originator of the idea of the invisible hand, which is a fundamental concept in free market ca... pitalism, was Answer- Adam Smith. Through _______________, it is possible to quantify the trade-offs to determine whether to accept or reject environmentally-related activities and programs. Answer- risk management Which of the following acts exempted the insurance industry from antitrust legislation? Answer- McCarran-Ferguson Act of 1944 Fostering ethical decision making within an organization requires improving the firm's ethical standards and Answer- terminating the "bad apples" in the organization. Which of the following is not associated with the stakeholder interaction model? Answer- Identifies the mass media, special interest groups, competitors, and trade associations as primary stakeholders _____ allows for private ownership of property and features a large government equipped to offer such services as education and health care to its citizens Answer- Social democracy. These leaders are passionate about the company, live out corporate values daily in their behavior in the workplace, and form long-term relationships with employees and other stakeholders. Answer- Transactional When we discuss _____ approaches, we are talking about how organizational decision makers should approach an issue. Answer- Normative Retaliation against employees that report misconduct is a problem in _____ cultures. Answer- weak ethical Which is not considered a white collar crime? Answer- Mugging someone Critics of nuclear power are concerned about all of the following, except: Answer- Reduced emissions The four categories of communication include all of the following except Answer- Reporting Mr. Smith told his client, Mr. Jabar, who was not an IT expert, that the new software systems were much better than his existing ones. To convince Mr. Jabar, Mr. Smith used a great deal of technical jargon that his client did not really understand. Mr. Smith did this intentionally to confuse Mr. Jabar. This is an example of Answer- noise. Affirmative action programs Answer- involve the recruitment, hiring, promotion, and training of qualified individuals. The relationship between business ethics and age Answer- is complex, although experience helps older employees make ethical decisions Following the ethical directives of a superior relates to Answer- obedience to authority Ethics is a part of decision making Answer- at all levels of work and management. The process of verifying the results of an audit should involve standard procedures that control the _____ of the information. Answer- reliability and validity When in Rome, do as the Romans do, or you must adapt to the cultural practices of the country in which you are operating are rationalizations business people sometimes offer for straying from their own ethical values when doing business abroad. This practice is called Answer- cultural relativism _____ occurs when one or more group members feel pressured to conform to the group's decision even if they personally disagree Answer- Groupthink Which of the following statements about multinational corporations (MNCs) is false? Answer- MNCs are inherently unethical and always do harm in the countries in which they operate. A _____-based culture encourages employees to express concerns, bring up ethical issues, and take a proactive approach toward resolving conflicts. Answer- Values _____ involves tricking individuals into revealing their passwords or other valuable corporate information. Answer- Social engineering All of the following are true regarding institutions except Answer- There is no clear link between institutional theory and the stakeholder orientation of management. The _____ was/were enacted to restore confidence in financial reporting and business ethics after the accounting scandals of the early 2000s. Answer- Sarbanes-Oxley Act The _______________ focuses on reducing pollution through cost-effective changes in production, operation, and raw materials use. Answer- Pollution Prevention Act Which of the following is not a benefit to businesses of engaging in voluntary responsibilities? Answer- Improve employee compensation and retention _____ is based upon the assumption that people are predictable and will maximize the utility of their choices relative to their needs and wants. Answer- Rational economics This occurs when leaders and followers share the same vision, ethical expectations, and objectives for the company. Answer- Leader-follower congruence No formal dress codes, working late, participation in extracurricular activities, gestures, and legends represent Answer- informal expressions of an organization's culture. Although limiting urban sprawl creates disadvantages for ____________, many businesses can benefit from urban renewal movements that reduce sprawl. Answer- car and oil companies Through time an act can come to be viewed as unethical under which of the following philosophies and perspectives? Answer- The relativist perspective ___ law defines the rights and duties of individuals and organizations (including businesses). Answer- Civil Strong ethical leaders have a passion for all of the following except to Answer- satisfy shareholders before other stakeholder groups What concept refers to economic theories advocating the creation of a society where wealth and power are distributed evenly, relative to the amount of work expended in production? Answer- Socialism Which moral philosophy evaluates the morality of an action on the basis of its conformity to general moral principles and respect for individual rights? Answer- Rule deontology _____ focus(es) on developing sound organizational practices and integrity for financial and nonfinancial performance measures, rather than on an individual's morals. Answer- Core practices Which of the following is a major ethical concern among corporate boards of directors? Answer- Compensation Which of the following strives to create order by requiring that employees identify with and commit to specific required conduct? Answer- Compliance orientation _____ are used to obtain or retain business and are not generally considered illegal in the U.S. Answer- Facilitation payments _____ justice is based on the evaluation of outcomes or results of the business relationship. Answer- Distributive Some economists believe that if companies address economic and legal issues, they are satisfying the demands of society, and that trying to anticipate and meet additional needs would be almost impossible. Which economist's theory are they following most closely with this belief? Answer- Milton Friedman Because top managers may be more insensitive to ethical issues due to their focus on financial performance, the FSGO guidelines suggest that ethics officers report to the _____ instead. Answer- board of directors Business ethics, as a field, has passed through which of the following states? Answer- Theological discussion to recognition of social issues to a field of study External and internal rewards relate to which part of the ethical decision-making framework? Answer- Opportunity _____ occurs when the middle class shrinks, resulting in highly concentrated wealth amongst the rich and a large number of poor people with very few resources. Answer- Bimodal wealth distribution A code of ethics that does not address specific high-risk activities within the scope of daily activities is Answer- inadequate Shareholders provide resources to an organization that are critical to long term success. Which of the following does the book suggest that suppliers offer? Answer- Material resources and/or intangible knowledge _____ is an organizational factor that gives a company specific characteristics. Over time, stakeholders begin to see the company as like a living organism with a mind and will of its own. Answer- Corporate culture Which of the following statements about codes of conduct is false? Answer- They guarantee an ethical business climate. A fundamental problem in traditional personal character development is that specific vales are used to teach about a philosophy, which may be inappropriate where cultural diversity and privacy must be respected. A solution is Answer- to teach individuals intellectual skills that address the complexities of ethical issues in business. While social reports often discuss issues related to a firm's performance in the four dimensions of social responsibility, as well as to specific social responsibility and ethical issues, ethics audits have a narrower focus on assessing and reporting on a firm's performance in terms Answer- ethical and legal conduct The _____ leader can create a negative climate because of the high standards that he or she sets. This style works best for attaining quick results from highly motivated individuals who value achievement and take initiative. Answer- pacesetting [Show More]

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