Question 1

What is it called when two or more firms agree to collaborate on wrongful acts?

Accepted Answer

A)  monopolizing 
B)  consumerism 
C)  collusion 
D)  brokering 
E)  business as usual

Question 2

If MKD adopts a defensive stance,how will the company respond to this situation?

Accepted Answer

The answer of If MKD adopts a defensive stance,how will...

Question 3

A husband and wife have just opened a gymnastics center,with the hope of training future Olympians.They desire to run their center in a socially responsible way.Which of the following should they certainly avoid?

Accepted Answer

A)  purchase of substandard gym equipment 
B)  advertising methods intended to profit the center 
C)  initiatives that decrease the satisfaction of investors 
D)  doubling of enrollment fees for the program 
E)  provision of attractive salaries for employees

Question 4

SeaBreeze Sailing Company manufactures sailboats for personal pleasure use.Which of the following would suggest that SeaBreeze Sailing Company is NOT committed to corporate social responsibility?

Accepted Answer

A)  Sailboats are available for customer rental only when weather conditions are safe. 
B)  The boats are constructed from scarce or nonrenewable natural resources. 
C)  Employees are provided with excellent vacation packages. 
D)  The company engages in practices that benefit local investors. 
E)  Advertisements for sailboat rentals contain correct pricing information.

Question 5

Tiffany's Taffy Shop is known for its commitment to corporate social responsibility.However,the owner,Mrs.Wu,has learned that an employee has been unknowingly ordering candy wrappers that are harmful to the environment.How could Mrs.Wu BEST recover from this ethical lapse?

Accepted Answer

A)  by firing the employee immediately 
B)  by seeking ways to remedy any harm that may have been caused 
C)  by considering ethics training for all employees 
D)  by ordering candy wrappers that are less expensive 
E)  by decreasing the amount of taffy sold

Question 6

How did the downturn in the economy from 2008 to 2010 affect organizations such as the American Red Cross,the Salvation Army,and the United Way?

Accepted Answer

The answer of How did the downturn in the economy...

Question 7

Ethical values do not vary from person to person.

Accepted Answer

A) True 
 B)False

Question 8

Some ethical and unethical behaviors fall into gray areas,while others are widely agreed upon.

Accepted Answer

A) True 
 B)False

Question 9

The mission statement of Coco's Chocolate & Confectioners reveals a primary emphasis on ethical sourcing and procurement.Which action below would the company MOST likely seek to avoid?

Accepted Answer

A)  neglecting the welfare of the region from which it imports cacao beans 
B)  reducing the size of their marketing department 
C)  adding a new line of fat-free confections 
D)  splurging on a company-wide holiday party 
E)  decreasing health care benefits for employees

Question 10

Which of the following would NOT be included among the primary agents of interest with regard to a company's ethical behavior?

Accepted Answer

A)  stockholders 
B)  unions 
C)  bloggers 
D)  customers 
E)  competitors

Question 11

What term refers to the way in which a business tries to balance its commitments to groups and individuals in its social environment?

Accepted Answer

A)  business ethics 
B)  socialization 
C)  stakeholder consciousness 
D)  social responsibility 
E)  corporatization

Question 12

Dara's Dress Shop was honored last year for its strong commitment to corporate social responsibility.Which of the following would MOST likely decrease the shop's chances of being recognized again this year?

Accepted Answer

A)  The shop has laid off two employees during the past six months. 
B)  Fewer clearance sales have been offered to the public this year. 
C)  An experienced ethics professional has been added to the Board of Directors. 
D)  Many of the dresses are made from fabrics spun by unprotected child laborers. 
E)  The shop has reduced its line of designer merchandise.

Question 13

Aligning the Pandora brand with a national nonprofit has many benefits.However,the CEO is still not convinced.Which of the following statements,if true,would support the argument made by the CEO to NOT tie sales of Pandora's breakfast oatmeal to the American Heart Association?

Accepted Answer

A)  The move might inspire competitors to seek similar such associations. 
B)  Federal regulation of health-related claims has decreased in recent years. 
C)  Pandora would garner public goodwill for the future. 
D)  Associating with a nonprofit would lead to better relations with governmental agencies. 
E)  If the nonprofit received negative publicity over something, the consumer reaction could have a spillover effect on Pandora.

Question 14

Which of the following,if true,strengthens Beatty's ethical position?

Accepted Answer

A)  The gift card has no expiration date, so he can wait to use it later, when he has moved to another position in his company where no conflict of interest exists. 
B)  The greeting and the gift card were received at his home residence, not at his place of work. 
C)  The salesman has just spent $500 of his own money on video game equipment for his children at Best Buy, so he has no immediate reason to use the gift card. 
D)  The president of the supplier is Beatty's father-in-law, so the gift is a personal one for his grandchildren. 
E)  On checking, Beatty learns that the supplier sent gift cards of lower value to other salespersons in his company.

Question 15

Which of the following is NOT an element of green marketing?

Accepted Answer

A)  profitability 
B)  sustainability 
C)  production processes 
D)  product modification 
E)  packaging reduction

Question 16

Most companies have concluded that ethics training programs are not worthwhile.

Accepted Answer

A) True 
 B)False

Question 17

What act was passed in 2002 as a response to a number of highly publicized accounting scandals?

Accepted Answer

A)  Sarbanes-Oxley Act 
B)  McCain-Feingold Act 
C)  Securities and Exchange Act 
D)  Accounting Standards Act 
E)  Dodd-Frank Act

Question 18

Pamela is the manager of a local eyewear store.She wants to ensure that the ethical conduct of her employees is above reproach.Which of the following should Pamela avoid doing?

Accepted Answer

A)  underscoring the importance of ethics to all employees 
B)  encouraging and equipping employees to follow the company's ethical standards 
C)  modeling behavior that employees should adopt 
D)  relying on management alone to report ethics violations 
E)  ensuring that a strict code of ethics is in place

Question 19

If MKD adopts an obstructionist stance,how will the company respond to this media report?

Accepted Answer

The answer of If MKD adopts an obstructionist stance,how will...

Question 20

What does the Sarbanes-Oxley Act of 2002 require a chief financial officer to do?

Accepted Answer

A)  prevent insider trading 
B)  engage in strategic management 
C)  guarantee the accuracy of financial reporting 
D)  hire a forensic accountant 
E)  oversee the implementation of ethical standards

Exam 2: Understanding Business Ethics and Social Responsibility

What is it called when two or more firms agree to collaborate on wrongful acts?

If MKD adopts a defensive stance,how will the company respond to this situation?

A husband and wife have just opened a gymnastics center,with the hope of training future Olympians.They desire to run their center in a socially responsible way.Which of the following should they certainly avoid?

SeaBreeze Sailing Company manufactures sailboats for personal pleasure use.Which of the following would suggest that SeaBreeze Sailing Company is NOT committed to corporate social responsibility?

Tiffany's Taffy Shop is known for its commitment to corporate social responsibility.However,the owner,Mrs.Wu,has learned that an employee has been unknowingly ordering candy wrappers that are harmful to the environment.How could Mrs.Wu BEST recover from this ethical lapse?

How did the downturn in the economy from 2008 to 2010 affect organizations such as the American Red Cross,the Salvation Army,and the United Way?

Ethical values do not vary from person to person.

Some ethical and unethical behaviors fall into gray areas,while others are widely agreed upon.

The mission statement of Coco's Chocolate & Confectioners reveals a primary emphasis on ethical sourcing and procurement.Which action below would the company MOST likely seek to avoid?

Which of the following would NOT be included among the primary agents of interest with regard to a company's ethical behavior?

What term refers to the way in which a business tries to balance its commitments to groups and individuals in its social environment?

Dara's Dress Shop was honored last year for its strong commitment to corporate social responsibility.Which of the following would MOST likely decrease the shop's chances of being recognized again this year?

Aligning the Pandora brand with a national nonprofit has many benefits.However,the CEO is still not convinced.Which of the following statements,if true,would support the argument made by the CEO to NOT tie sales of Pandora's breakfast oatmeal to the American Heart Association?

Which of the following,if true,strengthens Beatty's ethical position?

Which of the following is NOT an element of green marketing?

Most companies have concluded that ethics training programs are not worthwhile.

What act was passed in 2002 as a response to a number of highly publicized accounting scandals?

Pamela is the manager of a local eyewear store.She wants to ensure that the ethical conduct of her employees is above reproach.Which of the following should Pamela avoid doing?

If MKD adopts an obstructionist stance,how will the company respond to this media report?

What does the Sarbanes-Oxley Act of 2002 require a chief financial officer to do?