Question 1

Melissa purchases a DVR recorder at a store that sells refurbished merchandise. The store has a big sign stating "Caveat Emptor" posted out front and at the cash register. This sign most likely translates to a policy of

Accepted Answer

A)  refunds or exchanges at any time with a receipt. 
B)  100 percent satisfaction guaranteed with all merchandise. 
C)  all sales are final (no refunds or exchanges). 
D)  buying, selling, or trading electronic goods. 
E)  selling only French-manufactured products.

Question 2

Informing the press or government officials about unethical practices within one's organization is called

Accepted Answer

A)  unethical behavior. 
B)  whistling. 
C)  whistle-blowing. 
D)  trumpeting. 
E)  a company violation.

Question 3

What are the three sets of factors that influence the standards of behavior in an organization?

Accepted Answer

A)  Organizational norms, circumstances, morals 
B)  Peer pressure, attitudes, social factors 
C)  Historical factors, management attitudes, opportunity 
D)  Opportunity, individual factors, social factors 
E)  Financial factors, opportunity, morals

Question 4

Jennifer, a recent college graduate, has always been concerned about protecting the environment and now hopes to play a major role in seeing that legislation for protecting the environment is enforced. With whom should Jennifer seek employment?

Accepted Answer

A)  A large, environmentally friendly corporation 
B)  The Equal Employment Opportunity Commission 
C)  The Environmental Protection Agency 
D)  A recycling center 
E)  The Commission for Cleaner Air

Question 5

The economic model of social responsibility places primary emphasis on

Accepted Answer

A)  quality of life. 
B)  active government involvement. 
C)  conservation of natural resources. 
D)  economic return. 
E)  the balance of economic return and social return.

Question 6

When medical research indicated that a high-fiber diet might help reduce one's risk of colon cancer, a few producers of fiber cereals suggested in their advertisements that if you eat fiber cereal, you will not get cancer. This is an example of

Accepted Answer

A)  an unethical organizational relationship. 
B)  a conflict of interest. 
C)  social responsibility. 
D)  unethical communications. 
E)  ethical persuasion.

Question 7

After consulting his company's code of ethics, Mark is still unsure of whether or not the decision he is about to make is ethical. Which of the following actions would be most appropriate?

Accepted Answer

A)  Ask his wife what she would do in this situation. 
B)  Calculate the decision's bottom-line impact and do whatever increases profit the most. 
C)  Determine whether coworkers, suppliers, and customers would approve of the action. 
D)  Go with his gut feeling because Mark considers himself to be an ethical individual. 
E)  Avoid making the decision and any other decision with ethical implications.

Question 8

What does the government encourage in order to protect the consumer's right to choose?

Accepted Answer

A)  Competition 
B)  Monopolies 
C)  Trust laws 
D)  Divestitures 
E)  Cooperation

Question 9

A government agency with the power to investigate complaints of discrimination and to sue firms practicing employment discrimination is known as the

Accepted Answer

A)  Better Business Bureau. 
B)  National Alliance of Business. 
C)  Civil Service Commission. 
D)  Equal Employment Opportunity Commission. 
E)  Interstate Commerce Commission.

Question 10

Elizabeth believes her company has discriminated against her because her minority coworkers, who are less qualified, have been promoted ahead of her. Which agency should Elizabeth contact?

Accepted Answer

A)  National Alliance of Business 
B)  Affirmative Action Council 
C)  Equal Employment Opportunity Commission 
D)  Federal Trade Commission 
E)  Fair Employment Practices Agency

Question 11

The manager of a large chain recently spoke to a group of college students about being successful in the business world. He focused particularly on the importance of fulfilling the purpose of the business organization: that is, to produce and market profitable products needed by society. In so doing, he indicated that a stockholder, not the society as a whole, invests in a corporation to earn a return on his or her investment and that a firm is legally obligated to act in stockholders' interests. What concept do the manager's comments reveal?

Accepted Answer

A)  Socioeconomic model of social responsibility 
B)  Economic model of social responsibility 
C)  Strictest model of social responsibility 
D)  Consumerism 
E)  Rights of employees

Question 12

As far as business is concerned, six of the most important federal laws passed between 1887 and 1914 supported

Accepted Answer

A)  foreign trade. 
B)  increased production. 
C)  increased competition. 
D)  elimination of unions. 
E)  more social responsibility.

Question 13

Lisa buys a new pillow and rips off the manufacturer's tag. She then reads the tag and is amused at its warning that, under penalty of law, the tag should not be removed and the pillow could cause suffocation. What consumer right is the manufacturer guarding against?

Accepted Answer

A)  The right to consumer education 
B)  The right to choose 
C)  The right to be informed 
D)  The right to be heard 
E)  The right to courteous service

Question 14

Tony Shinn is applying for a mortgage to purchase his first home. His credit rating is mediocre due to several late payments on his credit cards and car loan. He is upset because his friend Jerry was offered an interest rate 3 percent less than what Tony was offered by the same mortgage company. This mortgage company's actions were

Accepted Answer

A)  unethical―both Tony and Jerry should have been charged the same interest rates, regardless of their credit histories. 
B)  ethical―this is just a part of doing business because credit history is an important indicator of future payments. 
C)  illegal―subjective factors may not be used when determining which credit offers may be extended to certain customers. 
D)  unethical if Tony is a minority and Jerry is not. 
E)  unethical and illegal―customers must all be treated the same.

Question 15

Over the past several decades, concern for the environment has

Accepted Answer

A)  been relatively steady because people expect to live in a clean and safe environment. 
B)  increased significantly because pollution became a threat to life and health. 
C)  been carefully handled by businesses because they are the primary source of pollutants. 
D)  become stronger in the United States but not yet in the rest of the world. 
E)  decreased because today's industrialized processes are naturally more environmentally friendly.

Question 16

The recognition that business activities affect society and the consideration of that impact when making business decisions is referred to as

Accepted Answer

A)  business ethics. 
B)  corporate ethics. 
C)  code of ethics. 
D)  community responsibility. 
E)  social responsibility.

Question 17

Why is it easier for managers to make ethical decisions when business is good and profits are high than when business is not so good and profits are in trouble?

Accepted Answer

The answer of Why is it easier for managers to...

Question 18

How does the economic model of social responsibility differ from the socioeconomic model of social responsibility?

Accepted Answer

The answer of How does the economic model of social...

Question 19

Joe, a restaurant supplies and equipment business manager, believes in the economic model of social responsibility. Which of the following would most likely be a quote from Joe in relation to social responsibility?

Accepted Answer

A)  "What a waste of time for everyone!" 
B)  "I fully support it." 
C)  "That is someone else's job." 
D)  "It's expensive, but worth it." 
E)  "Not in my line of work."

Question 20

At Victoria's Secret, managerial approval is required whenever an employee makes a purchase at the store using an employee discount. Which factor affecting ethical behavior is Victoria's Secret seeking to control?

Accepted Answer

A)  Individual 
B)  Social 
C)  Moral 
D)  Circumstantial 
E)  Opportunity

Exam 2: A: Being Ethical and Socially Responsible