Question 1

Platonic is evaluating the manner in which its products are being advertised and sold in a particular market.In the context of strategic planning,the company is in the stage of:

Accepted Answer

A)  planning. 
B)  control. 
C)  implementation. 
D)  initiation. 
E)  design.

Question 2

Lori exaggerates her firm's current earnings in the belief that revenue will increase in the next few months.Her exaggeration benefits herself,the company,and the employees in the short term but may have serious ethical and legal consequences for the company in the long term.In this scenario,Lori should:

Accepted Answer

A)  ethically evaluate the company's quarterly profit statements. 
B)  state the long-term goals in general terms so as to not interfere with her short-term goals. 
C)  get the management and the employees to put society's needs ahead of the needs of the company. 
D)  align the company's long-term goals with her short-term goals. 
E)  pass on the firm's competitive advantage to a competing firm.

Question 3

Celebrities stopped endorsing BodyShine Inc.'s products because the products were being manufactured using child labour in poor working conditions.The management at BodyShine needs to address whether it:

Accepted Answer

A)  should modify its systems used in the control phase according to changes in the external environment. 
B)  needs to adopt suitable marketing strategies for its target segment. 
C)  is willing to treat its employees with dignity and respect. 
D)  must allocate resources to the existing market or to more important social needs. 
E)  needs to include ethical precepts for shaping the organization in its mission statement.

Question 4

In which step of ethical decision making is it crucial for the management of a firm to investigate any potential issues associated with the various options available?

Accepted Answer

A)  Identifying issues 
B)  Promoting the firm's corporate social responsibility efforts 
C)  Gathering information and identifying stakeholders 
D)  Brainstorming and evaluating alternatives 
E)  Choosing a course of action

Question 5

Which of the following should be of paramount importance to marketers?

Accepted Answer

A)  Profitability in the long run 
B)  Maintaining consumer trust 
C)  Profitability in the short run 
D)  Meeting targets of unit sales 
E)  Interaction with the development team

Question 6

When companies embrace corporate social responsibility,their appeal is limited to their shareholders.

Accepted Answer

A) True 
 B)False

Question 7

Using profit as the sole guide for corporate action can lead to:

Accepted Answer

A)  increased short-run and long-run profitability. 
B)  short-term profits but long-term loss of customers. 
C)  long-term profitability but short-term losses. 
D)  increased corporate social responsibility. 
E)  an increased customer base in the long run.

Question 8

Which of the following is addressed by a company that undertakes corporate social responsibility?

Accepted Answer

A)  Its customer service responsibility 
B)  The ethics of its business operations 
C)  Its competitive advantage 
D)  The creation of business opportunities 
E)  The profitability of its business

Question 9

How is an ethical climate created in a workplace?

Accepted Answer

The answer of How is an ethical climate created in...

Question 10

It is possible to have more than one right answer to ethical dilemmas.

Accepted Answer

A) True 
 B)False

Question 11

DrinkUp Beverages Inc.was forced to withdraw the promotion of its alcoholic beverages after it was criticized for advertising the products to children younger than 18 years old.In this scenario,DrinkUp's ethical error was the failure to consider whether it:

Accepted Answer

A)  wanted to include its commitment to ethics in its mission statement. 
B)  should relocate its production to another country. 
C)  targeted the appropriate market segment. 
D)  priced the product at affordable rates. 
E)  was prepared to support the development of an ethical climate.

Question 12

Special duties or obligations that apply to persons engaged in commerce fall under:

Accepted Answer

A)  business ethics. 
B)  ethical climate. 
C)  corporate social responsibility. 
D)  consumerism. 
E)  moral mentor metric.

Question 13

When a firm decides to integrate ethical decision making into its strategic planning process,which of the following questions would most likely be asked at the planning phase?

Accepted Answer

A)  Did any of the firm's actions have a negative impact on any stakeholder group? 
B)  Does the firm want to include a commitment to ethics in its mission statement? 
C)  Is the product priced fairly? 
D)  Is the firm prepared in the event of an ethical lapse? 
E)  Should the firm be targeting this market segment with its product?

Question 14

What short-run versus long-run ethical dilemma do employees in a firm often face? How do they avoid it?

Accepted Answer

The answer of What short-run versus long-run ethical dilemma do...

Question 15

Lawrence has recently joined a publishing company.As part of his initial training,he attends a session on marketing ethics.Through the session he learns that the basic starting point for creating a strong ethical climate within a marketing firm is having a(n):

Accepted Answer

A)  ethical retreat seminar. 
B)  set of values that guides behaviour. 
C)  contractual system. 
D)  firm social commitment strategy. 
E)  set of explicit rules to guide its corporate social responsibility programs

Question 16

Jennifer,who was recently appointed as her firm's chief ethics officer,wants to make sure her company is making ethical decisions.What are the activities Jennifer is likely to engage in?

Accepted Answer

The answer of Jennifer,who was recently appointed as her firm's...

Question 17

In which stage of strategic planning are managers evaluated on their actions from an ethical perspective?

Accepted Answer

A)  Planning 
B)  Implementation 
C)  Control 
D)  Design 
E)  Initiation

Question 18

By hiring a team to investigate and report working and environmental conditions at its offshore contract manufacturing facility,SharpCut Knives Inc.has addressed the ethical question concerning whether the firm:

Accepted Answer

A)  should modify its systems used in the control phase according to changes in the external environment. 
B)  is responsible for ensuring workers are treated fairly and paid a living wage. 
C)  is choosing the suitable marketing strategy for its target market. 
D)  must allocate more resources to the existing market or to more important social needs. 
E)  needs to include ethical precepts for shaping the organization in its mission statement.

Question 19

SwiftWheels Inc.,a manufacturer of automobiles,is facing an ethical dilemma.It must decide between buying out a competing firm and maintaining one of its factories.The stakeholders have raised their concerns and all parties relevant to the decision-making process have engaged in a brainstorming session.After considering the various alternatives,the management has decided to buy out the competing firm.If the management is unsure about the action,it will most likely consider:

Accepted Answer

A)  lowering the product's price. 
B)  reviewing and refining the alternatives. 
C)  consulting customers for their opinions. 
D)  identifying the most important stakeholders. 
E)  avoiding risk by putting off decision making.

Question 20

Which of the following best exemplifies a clothing retailer that supports many local charities but occasionally engages in questionable pricing practices?

Accepted Answer

A)  Socially responsible firm involved in unethical practices 
B)  Neither ethical nor socially responsible 
C)  A firm with a strong focus on the triple bottom line 
D)  Both ethical and socially responsible 
E)  Ethical firm not involved with the larger community

Exam 18: Advertising, Public Relations, and Sales Promotions