Business Ethics

BBA 4751 Multiple Choice1.Which of the following is a traditional approach to corporate culture?a.Values-basedb.Integrity-basedc.Customer-basedd.Compliance-based2. Which of the following is true about corporate cultures?a. Corporate cultures are not influenced by the people comprising that organization.b. Corporate cultures are not subject to changes over time.c. Corporate cultures can hinder individuals in making the “right” decisions.d. Corporate cultures in a global firm differ significantly across different countries.3. Corporate culture:a. is fashioned by a shared pattern of beliefs, expectations, and meanings that influence and guide the thinking and behaviors of the members of that organization.B. shapes the people who are members of the organization, but it is not shaped by the people who comprise that organization.c. is not influenced by unspoken standards and expectations.d. is generally easy to modify.4. Which of the following statements is true of ethical cultures?a. Workplace ethical cultures have no impact on decision making.b. Subordinates are expected not to act unless directed by superior authorities.c. Decisions are expected to be taken based on laws and not on ethical values.d. Employees are expected to act in responsible ways, even if the law does not require it.5. Which of the following is an effective way of creating clear and successful reporting schemes?Answera. Leaders empowering subordinates to take decisions without providing guidanceb. Managers ignoring the risk and taking a wait-and-see attitudec. Consistent and continuous communication of the firm’s values to all stakeholdersd. Subordinates staying away from reporting unethical behaviors of superiors6. What is the term used to describe a potentially damaging or ethically challenged corporate culture?a. “Caustic” cultureb. “Pyrophoric” culturec. “Corrosive” cultured. “Toxic” culture7. Which of the following is true about an integrity-based culture?a. It reinforces a particular set of rules.b. It reinforces a particular set of values.c. It empowers legal bodies to monitor compliance.d. It emphasizes rules as the primary responsibility of ethics.8. Which of the following is emphasized by a compliance-based culture?a. Reliance on personal integrity of employees for decision makingb. Use of values as the principle for decision makingc. Obedience to rules as the primary responsibility of ethicsd. Reinforcement of a set of values rather than a set of rulesIV1.According to Donaldson and Dunfee, the right to __________ is an example of a hypernorm.a. a safe workplaceb. public informationc.voted. physical movement2. Values that are fundamental across culture and theory are calleda. authentic norms.b.hypernorms.c. ethnocentric norms.d. executive norms.3. An organization, in an attempt to avoid discrimination suits filed against it, intentionally hires a lot of African-American women, and a few disabled people. Which of the following is most likely to occur?a. The performance of the organization will increase.b. The organization will win an award for equity.c. There will be an increase in the number of diversity training sessions.d. A white man or a woman will file a reverse discrimination suit.4. Which of the following refers to a policy or a program that tries to respond to instances of past discrimination by implementing proactive measures to ensure equal opportunity today?a. Gentrificationb. Bully broadsc. Just caused. Affirmative action5.Which of the following is discrimination against those traditionally considered to be in power or the majority?a. Reverse discriminationb. Affirmative actionc. Inverse discriminationd. Backward discrimination6.Which of the following is an example of reverse discrimination in America?a. An African-American interviewer rejects another African-American based on ethnicity.b. A female interviewer rejects a male interviewee because of gender.c. A white interviewer rejects an African-American based on ethnicity.d. A female interviewer rejects another female interviewee because of gender.7.Some employers emphasize the rights and duties of all employees and treat employees well simply because “it is the right thing to do.” Identify the ethical approach for this perspective.a. Prescriptive ethicsb. Utilitarianismc. Deontological ethicsd. Classicism8.The desire to place workers in appropriate positions, to ensure compliance with affirmative action requirements, or to administer workplace benefits is sufficient reason for employers to undertake employee __________.a. trainingb. orientationc. monitoringd. drug testingV1. Which of the following terms refers to shortsightedness about values?a. Inattentional blindnessb. Normative myopiac. Change blindnessd. Descriptive ignorance2. Which of the following is true of excessive compensation packages?a. When executive compensation is tied to stock price, executives have a strong incentive to focus on long-term corporate interests rather than short-term stock value.b. When huge amounts of compensation depend on quarterly earnings reports, there is a strong incentive to manipulate those reports in order to achieve the money.c. Economic fairness and personal morality always exists in executives receiving lofty compensation packages.d. Excessive compensation packages serve corporate interests when they provide an incentive that is not based on executive performance or accomplishments.3. Which of the following is the final step in the ethical decision-making process?a. Identifying the ethical issues involvedb. Monitoring and learning from outcomesc. Considering how a decision affects stakeholdersd. Identifying key stakeholders4.Which of the following legal duties of board members suggests that a director does not need to be an expert or actually run the company?a. Duty of careb. Duty of good faithc.Duty of candord. Duty of loyalty5.Which omission occurs when decision makers fail to notice gradual variations over time?a. Inattentional blindnessb. Incremental blindnessc.Change blindnessd. Normative myopia6.When does issue identification become the first step in the ethical decision-making process?a. When you are not accountable for the decisionb. When you are solely responsible for a decisionc. When you are presented with an issue from the startd. Under all circumstances7.Which of the following board member duties suggests that conflicts of interest are always to be resolved in favor of the corporation?a. Duty of careb. Duty of good faithc. Duty of candord. Duty of loyalty8. If we are told specifically to pay attention to a particular element of a decision or event, we are likely to miss all of the surrounding details, no matter how obvious. According to Bazerman and Chugh, this phenomenon is known as __________.a. inattentional blindnessb. descriptive ignorancec. change blindnessd. normative myopiaVI1. Marketing practices targeted at elderly populations for goods, such as supplemental health insurance, funerals, etc. are subject to criticism because:a. that population is vulnerable.b. interest gained on such investments are not highly profitable.c. they target the considered and rational desires of the consumers.d. they do not abide by the principles of welfare economics.2.In selling a product, a business offers tacit assurances that the product is reasonably suitable for its purpose. The law refers to this as the:a. doctrine of caveat emptor.b. implied warranty of merchantability.c. doctrine of caveat lector.d. implied warranty of productivity.3.Which of the following statements is true about stealth marketing?a. It occurs when consumers are aware that they are subject to a marketing campaign.b. It refers to situations where consumers are subject to directed commercial activity without their knowledge.c. It occurs when consumers pay little or no attention to billboards while speeding past a highway.d. It is not an intentional effort to hide the true marketing element of the interaction.4. A consumer’s consent to purchase a product is not informed if that consumer is:a. unwilling to listen to the product details from the sales person.b. injured after using the product and filed a product liability suit.c. asked to buy a product without a warranty.d. being misled or deceived about the product.5. The __________ ethical tradition would take the two parties’ agreement as evidence that both are better off than they were prior to the exchange and thus concludes that overall happiness has been increased by any exchange freely entered into.a. utilitarianb. virtualc. Kantiand. deontological6. Greater consumption is likely to lead to unhappiness, a condition termed __________.a. affluenzab. caveat emptorc. influenzad. insomnia7. The legal doctrine of strict liability is ethically controversial because:a. it assumes informed consent of the buyer, and therefore, it is assumed to be ethically legitimate.b. it allows consumers to assume that products are safe for use.c. it holds that consumer demand depends upon what producers sell.d. it holds a business accountable for paying damages whether or not it was at fault.8. Society creates a strong incentive for businesses to produce safer goods and services by holding them responsible for any harm their products cause. This claim supports the:a. strict product liability standard.b. actual foreseeability standard.c. reasonable person standard.d. consent and informed decision standard.

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