Question 1

Adherence to moral and ethical principles; soundness of moral character; and honesty demonstrates _________.

Accepted Answer

integrity

Question 2

A type of fraud, in which money received from later investors is used to provide returns to earlier investors, thus giving an appearance of a profitable investment is called a ______ scheme.

Accepted Answer

Ponzi

Question 3

Imperative principle suggests which of the following?

Accepted Answer

A)   Do what produces the greatest good
B)   Do what is right
C)   Make the most money
D)   Develop an eminent domain
E)   Match rewards with performance B

Question 4

_____ refers to a system of rules and procedures designed to ensure the accuracy and reliability of financial and accounting information.

Accepted Answer

A)   Internal controls
B)   External controls
C)   Environmental controls
D)   Global controls
E)   Legal controls

Question 5

Employees of ABC International generally describe their CEO, Mr. James Duncan, as a man of moral and ethical principles, sound moral character, and honest. Mr. Duncan can be described as an individual with ______.

Accepted Answer

A)   CSR
B)   integrity
C)   loyalty
D)   Ponzi scheme
E)   control issues

Question 6

_____ is considered by many to be the most infamous financial scandal in United States history.

Accepted Answer

A)   Bank of America
B)   Enron
C)   Vivendi
D)   Parmalat
E)   Teapot Dome

Question 7

The four basic steps in ethical decision making are: define all the facts and circumstances, identify the people affected, determine the alternative decisions and consequences, and make the decision and carry it out.

Accepted Answer

A) True 
 B)False

Question 8

One way to resolve an ethical question is to apply the formal policies of your company or code of conduct to help determine the ethical course of action.

Accepted Answer

A) True 
 B)False

Question 9

A person of integrity has two essential characteristics:
1)knowledge about what morally constitutes the right thing to do, and 2)_____.

Accepted Answer

A)   follows the steps of ethical decision making
B)   the ability to solve an ethical dilemma
C)   the courage to do what is right
D)   the ability to evaluate goals and objectives
E)   the ability to think cognitively

Question 10

Which of the following is NOT a value described in the BBB Code of Business Practices?

Accepted Answer

A)   Build trust
B)   Make the decision
C)   Define all the facts and circumstances
D)   Identify the people affected by the situation
E)   Determine that a decision needs to be made

Question 11

Scenario - Bradley Corporation
The Bradley Corporation manufactures packaged food items that are sold around the globe. Baby food is the prominent product line currently produced by the corporation. Many of the customers for these products are located in third world countries where infant nutrition is a serious problem.
Bradley has recently decided to change its internal management structure. New managers for the corporation are now in place; however these new leaders do not appear to have the same value system as the former leaders. The former leaders embraced the idea of product safety and exhibited integrity in the production of the corporation's product lines. While the new managers claim these are important to them also, it seems the bottom line profit has precedent with them.
These changes have created concern in the company. There is strong disapproval for the way the company is conducting its business at the present time. The Board of Directors for Bradley is facing the serious question of whether profit is the only thing that matters now to the corporation.
-The Bradley Corporation is faced with a decision that involves selling an outdated product such as baby food to foreign markets to make a large profit versus losing money by destroying outdated products. Which of the following best identifies what the Bradley Corporation is experiencing?

Accepted Answer

A)   A financial predicament
B)   An ineffective board
C)   The actions of a profitable business
D)   A matter for internal decision making
E)   An ethical dilemma

Question 12

______ is the branch of philosophy that addresses the values pertaining to human behavior, with specific regard to the "rightness" and "wrongness" of actions and to the "goodness" and "badness" of the intent and results of such actions.

Accepted Answer

The answer of ______ is the branch of philosophy that...

Question 13

The fourth step of ethical decision making is to _____.

Accepted Answer

A)   identify the alternative decisions and consequences
B)   make the decision
C)   define all the facts and circumstances
D)   identify the people affected by the situation
E)   determine that a decision needs to be made

Question 14

The _____ is a report published each year by Transparency International, providing metrics to the potential corruption risk for 180 countries.

Accepted Answer

A)   Corruption Perceptions Index
B)   Social Responsibility Report
C)   Ponzi Scheme
D)   Integrity Perceptions Report
E)   Ethical Violations Index

Question 15

According to the text, what question ought to be asked when acting upon high ethical standards in business?

Accepted Answer

A)   If everyone else is cheating, then how can an ethical person possibly succeed?
B)   How do you measure success?
C)   What would others in my situation do?
D)   What would my family think?
E)   Will I regret this decision?

Question 16

The global slave trade that exists today is referred to as human trafficking.

Accepted Answer

A) True 
 B)False

Question 17

Of the following statements about Vivendi, which is NOT true?

Accepted Answer

A)   It is a Swiss-based corporation.
B)   Between October 2000 and April 2002, the company cooked its books to make its financial performance appear better than it was.
C)   Vivendi agreed to pay a fine of $50 million.
D)   Company CEO Jean Merrier was required to pay a fine of $1 million.
E)   Company CEO Jean Merrier was required to forfeit his $25 million severance package.

Question 18

WorldCom is a perfect example of effective social and ethical responsibility in the financial sector.

Accepted Answer

A) True 
 B)False

Question 19

Who said, "To educate a person in mind and not in morals is to educate a menace to society"?

Accepted Answer

A)   George Bush
B)   Henry Ford
C)   Theodore Roosevelt
D)   George Washington
E)   Erin Brockovich

Question 20

Of the following, which is NOT true of the Enron financial scandal?

Accepted Answer

A)   It was a key event leading the U.S. Congress to pass the Sarbanes-Oxley Act of 2002.
B)   Unfortunately, it was always regarded as an unethical company.
C)   In 2000, corporate revenues exceeded $100 billion.
D)   The company's former president, Jeffrey Skilling, led Enron to abuse an accounting practice known as mark to market accounting.
E)   The truth about Enron was revealed in 2001.

Exam 7: Corruption and Ethics in Global Business

Adherence to moral and ethical principles; soundness of moral character; and honesty demonstrates _________.

A type of fraud, in which money received from later investors is used to provide returns to earlier investors, thus giving an appearance of a profitable investment is called a ______ scheme.

Imperative principle suggests which of the following?

_____ refers to a system of rules and procedures designed to ensure the accuracy and reliability of financial and accounting information.

Employees of ABC International generally describe their CEO, Mr. James Duncan, as a man of moral and ethical principles, sound moral character, and honest. Mr. Duncan can be described as an individual with ______.

_____ is considered by many to be the most infamous financial scandal in United States history.

The four basic steps in ethical decision making are: define all the facts and circumstances, identify the people affected, determine the alternative decisions and consequences, and make the decision and carry it out.

One way to resolve an ethical question is to apply the formal policies of your company or code of conduct to help determine the ethical course of action.

A person of integrity has two essential characteristics: 1) knowledge about what morally constitutes the right thing to do, and 2) _____.

Which of the following is NOT a value described in the BBB Code of Business Practices?

______ is the branch of philosophy that addresses the values pertaining to human behavior, with specific regard to the "rightness" and "wrongness" of actions and to the "goodness" and "badness" of the intent and results of such actions.

The fourth step of ethical decision making is to _____.

The _____ is a report published each year by Transparency International, providing metrics to the potential corruption risk for 180 countries.

According to the text, what question ought to be asked when acting upon high ethical standards in business?

The global slave trade that exists today is referred to as human trafficking.

Of the following statements about Vivendi, which is NOT true?

WorldCom is a perfect example of effective social and ethical responsibility in the financial sector.

Who said, "To educate a person in mind and not in morals is to educate a menace to society"?

Of the following, which is NOT true of the Enron financial scandal?