Question 1

A code of ethics becomes increasingly appropriate and necessary as a small business

Accepted Answer

A)  expands its credit sales and acquires more customers who buy on credit. 
B)  begins to market products in other countries. 
C)  grows with a consequent lessening of personal interactions between the owner and employees. 
D)  increases borrowing to the extent that one third of its assets are financed by borrowing. 
A)  expands its credit sales and acquires more customers who buy on credit. 
B)  begins to market products in other countries. 
C)  grows with a consequent lessening of personal interactions between the owner and employees. 
D)  increases borrowing to the extent that one third of its assets are financed by borrowing.

Question 2

The triple bottom line sought by the social entrepreneur includes three outcomes of interest: people, profits, and the _____.

Accepted Answer

The answer of The triple bottom line sought by the...

Question 3

When a company delivers an excellent product with first-rate service, _____ and _____ are likely to follow.

Accepted Answer

A)  profits; a good reputation 
B)  customer satisfaction; profits 
C)  healthy sales; profits 
D)  customer satisfaction; healthy sales 
A)  profits; a good reputation 
B)  customer satisfaction; profits 
C)  healthy sales; profits 
D)  customer satisfaction; healthy sales

Question 4

Because a firm has considerable discretion when revealing performance results, financial reports can sometimes be _____ without technically being illegal.

Accepted Answer

A)  inaccurate 
B)  misleading 
C)  unreliable 
D)  bellicose 
A)  inaccurate 
B)  misleading 
C)  unreliable 
D)  bellicose

Question 5

An eBay retailer selling counterfeit Gucci and Louis Vuitton handbags is in violation of laws related to

Accepted Answer

A)  Internet fraud. 
B)  intellectual property. 
C)  bait-and-switch marketing. 
D)  ethical imperialism. 
A)  Internet fraud. 
B)  intellectual property. 
C)  bait-and-switch marketing. 
D)  ethical imperialism.

Question 6

Candace sells the muffins in her bakery at a higher price than the big-box grocery, but she has a steady stream of customers willing to pay what she asks. Candace also supports local charities. What would likely happen if she lowered her prices and stopped her charitable contributions?

Accepted Answer

A)  Income taxes would decrease. 
B)  Customers would go elsewhere. 
C)  Business would increase. 
D)  None of these are correct. 
A)  Income taxes would decrease. 
B)  Customers would go elsewhere. 
C)  Business would increase. 
D)  None of these are correct.

Question 7

Match the term with its definition.
-A profitable company that responds to customers' needs while showing reasonable concern for the environment

Accepted Answer

A) code of ethics 
B) environmentalism 
C) ethical imperialism 
D) ethical relativism 
E) integrity
F)intellectual property
G)social entrepreneurship
H)social responsibilities
I)stakeholders
J)sustainable small business
K)underlying values 
A) code of ethics 
B) environmentalism 
C) ethical imperialism 
D) ethical relativism 
E) integrity
F)intellectual property
G)social entrepreneurship
H)social responsibilities
I)stakeholders
J)sustainable small business
K)underlying values

Question 8

An example of a business adversely affected by environmental protection laws would be a

Accepted Answer

A)  glass manufacturer. 
B)  military contractor. 
C)  fast-food restaurant. 
D)  fast lube and oil change center. 
A)  glass manufacturer. 
B)  military contractor. 
C)  fast-food restaurant. 
D)  fast lube and oil change center.

Question 9

Entrepreneurs would do well to remember that customers who have questions about the _____ (products, representatives, and the organization) are less likely to make purchases.

Accepted Answer

The answer of Entrepreneurs would do well to remember that...

Question 10

The saying "When in Rome, do as the Romans do" reflects a philosophy of ethical

Accepted Answer

A)  insensitivity 
B)  elitism 
C)  imperialism 
D)  relativism 
A)  insensitivity 
B)  elitism 
C)  imperialism 
D)  relativism

Question 11

Match the term with its definition.
-A general sense of honesty and reliability that is expressed in a strong commitment to doing the right thing, regardless of the circumstances

Accepted Answer

A) code of ethics 
B) environmentalism 
C) ethical imperialism 
D) ethical relativism 
E) integrity
F)intellectual property
G)social entrepreneurship
H)social responsibilities
I)stakeholders
J)sustainable small business
K)underlying values 
A) code of ethics 
B) environmentalism 
C) ethical imperialism 
D) ethical relativism 
E) integrity
F)intellectual property
G)social entrepreneurship
H)social responsibilities
I)stakeholders
J)sustainable small business
K)underlying values

Question 12

A small computer retailer makes every effort to satisfy customer needs both before and after the sale. However, this retailer regards social problems as being beyond the scope of his business. This firm's management has recognized

Accepted Answer

A)  some degree of social responsibility in its commitment to customers. 
B)  the existence of social responsibilities but having failed to do anything about them. 
C)  ethical obligations to customers but not social responsibilities. 
D)  social responsibility as the domain of big business. 
A)  some degree of social responsibility in its commitment to customers. 
B)  the existence of social responsibilities but having failed to do anything about them. 
C)  ethical obligations to customers but not social responsibilities. 
D)  social responsibility as the domain of big business.

Question 13

Research suggests that entrepreneurs who head small, growth-oriented companies may be _____ than CEOs of large corporations.

Accepted Answer

A)  more likely to take advantage of customers 
B)  more likely to display lapses in integrity 
C)  less socially sensitive 
D)  less narrowly focused on profits 
A)  more likely to take advantage of customers 
B)  more likely to display lapses in integrity 
C)  less socially sensitive 
D)  less narrowly focused on profits

Question 14

An effective way for an entrepreneur to establish legitimacy is to

Accepted Answer

A)  hire experienced employees from competitors. 
B)  insist on professional behavior from all employees. 
C)  communicate the company's mission clearly and frequently. 
D)  outperform the competition by underbidding and overpromising. 
A)  hire experienced employees from competitors. 
B)  insist on professional behavior from all employees. 
C)  communicate the company's mission clearly and frequently. 
D)  outperform the competition by underbidding and overpromising.

Question 15

Discuss the relationship between profits and social responsibility in the small firm.

Accepted Answer

Research suggests that entrepreneurs who

Question 16

Many entrepreneurs feel a duty to give back to the community in return for the local support they enjoy-and they usually benefit from increased _____ as a result.

Accepted Answer

A)  publicity 
B)  respect 
C)  goodwill 
D)  management expertise 
A)  publicity 
B)  respect 
C)  goodwill 
D)  management expertise

Question 17

The philosopher Immanuel Kant introduced the so-called _____, a sophisticated way of asking, "How would it be if everyone decided to do what you intend to do?"

Accepted Answer

categorica

Question 18

In their highly influential book The Power of Ethical Management, Kenneth Blanchard and Norman Vincent Peale suggest that an ethics policy be based on all of the following fundamental principles EXCEPT

Accepted Answer

A)  patience. 
B)  pride. 
C)  profit. 
D)  perspective. 
A)  patience. 
B)  pride. 
C)  profit. 
D)  perspective.

Question 19

Match the term with its definition.
-Beliefs that provide a foundation for ethical behavior in an individual or a firm

Accepted Answer

A) code of ethics 
B) environmentalism 
C) ethical imperialism 
D) ethical relativism 
E) integrity
F)intellectual property
G)social entrepreneurship
H)social responsibilities
I)stakeholders
J)sustainable small business
K)underlying values 
A) code of ethics 
B) environmentalism 
C) ethical imperialism 
D) ethical relativism 
E) integrity
F)intellectual property
G)social entrepreneurship
H)social responsibilities
I)stakeholders
J)sustainable small business
K)underlying values

Question 20

Tyrone gives 1 percent of the profits of his company to local organizations like the Little League and the Boys and Girls Club. In this way, Tyrone is fulfilling his _____.

Accepted Answer

social res

Exam 2: Integrity, Ethics, and Social Entrepreneurship

A code of ethics becomes increasingly appropriate and necessary as a small business

The triple bottom line sought by the social entrepreneur includes three outcomes of interest: people, profits, and the _____.

When a company delivers an excellent product with first-rate service, _____ and _____ are likely to follow.

Because a firm has considerable discretion when revealing performance results, financial reports can sometimes be _____ without technically being illegal.

An eBay retailer selling counterfeit Gucci and Louis Vuitton handbags is in violation of laws related to

Candace sells the muffins in her bakery at a higher price than the big-box grocery, but she has a steady stream of customers willing to pay what she asks. Candace also supports local charities. What would likely happen if she lowered her prices and stopped her charitable contributions?

Match the term with its definition. -A profitable company that responds to customers' needs while showing reasonable concern for the environment

An example of a business adversely affected by environmental protection laws would be a

Entrepreneurs would do well to remember that customers who have questions about the _____ (products, representatives, and the organization) are less likely to make purchases.

The saying "When in Rome, do as the Romans do" reflects a philosophy of ethical

Match the term with its definition. -A general sense of honesty and reliability that is expressed in a strong commitment to doing the right thing, regardless of the circumstances

A small computer retailer makes every effort to satisfy customer needs both before and after the sale. However, this retailer regards social problems as being beyond the scope of his business. This firm's management has recognized

Research suggests that entrepreneurs who head small, growth-oriented companies may be _____ than CEOs of large corporations.

An effective way for an entrepreneur to establish legitimacy is to

Discuss the relationship between profits and social responsibility in the small firm.

Many entrepreneurs feel a duty to give back to the community in return for the local support they enjoy-and they usually benefit from increased _____ as a result.

The philosopher Immanuel Kant introduced the so-called _____, a sophisticated way of asking, "How would it be if everyone decided to do what you intend to do?"

In their highly influential book The Power of Ethical Management, Kenneth Blanchard and Norman Vincent Peale suggest that an ethics policy be based on all of the following fundamental principles EXCEPT

Match the term with its definition. -Beliefs that provide a foundation for ethical behavior in an individual or a firm

Tyrone gives 1 percent of the profits of his company to local organizations like the Little League and the Boys and Girls Club. In this way, Tyrone is fulfilling his _____.

The Entrepreneurial Lifethe Entrepreneurial Life

Starting a Small Business

Franchises and Buyouts

The Family Business

The Business Plan: Visualizing the Dream

The Marketing Plan

The Organizational Plan: Teams, Legal Structures, Alliances, and Directors

The Location Plan

Understanding a Firms Financial Statements

Forecasting Financial Requirements

A Firms Sources of Financing

Planning for the Harvest

Building Customer Relationships

Product Development and Supply Chain Management

Pricing and Credit Decisions

Promotional Planning

Global Opportunities for Small Businesses

Professional Management and the Small Business

Managing Human Resources

Managing Small Business Operations

Managing the Firms Assets

Managing Risk

Filters

When a company delivers an excellent product with first-rate service, _ and _ are likely to follow.