CBA 400 Exam 1 Vocab and Questions UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS
35. A major purpose of the Federal Sentencing A: Guard against anticompetitive business to improve the economy.
Guidelines for Organzations, the Sarbanes-Oxley Act, B: Create synergy among business to improve the economy.
and the Dodd-Frank Act is to: C: Encourage ethical conduct.
D: Discourage businesses from taking risks.
E: Mandate that companies engage in self-regulation
Answer: C/ Encourage ethical conduct
36. Which of the following laws instituted a whistle- A: Title VII of the Civil Rights Act
blower bounty program in which whistle-blowers are B: The Sherman Antitrust Act
eligible to receive 10 to 30 percent of fines if their reports C: The Federal Sentencing Guidelines for Organizations
result in convictions of more than $1 million in penalties? D: The Sarbanes-Oxley Act
E: The Dodd-Frank Act
Answer: E/ The Dodd-Frank Act
37. The Sarbanes-Oxley (SOX) Act raised a number of A: Complex and imposes additional costs on executives.
concerns. Critics of the legislation believe SOX is: B: not necessary
C: Fair to all firms
D: Harmful because it reduces restatements of financial reports.
E: Unconstitutional
Answer: A/ Complex and imposes additional costs on executives.
, 38. An ethical organizational culture creates an A: Values
environment in which to structure behavior that is then B: Norms
evaluated by stakeholders.A key element of an C: Artifacts
organizational culture that refers to the visible, tangible D: Behavior
external symbols of values and norms is known as an E: Employee Compensation
organization's:
Answer: C/ Artifacts
39. Which of the following provide incentives for A: Department of Justice, Sarbanes-Oxley Act, and Open Compliance Ethics
developing core practices within a firm that could help Group
ensure ethical and legal compliance? B: Department of Justice, Dodd-Frank Act, and Sarbanes-Oxley Act
C: Federal Sentencing Guidelines for Organizations and Sarbanes-Oxley Act
D: Food and Drug Administration, Federal Sentencing Guidelines for
Organizations, and Sarbanes-Oxley Act
E: Securities and Exchange Commission and Sarbanes-Oxley Act
Answer: C/ Federal Sentencing Guidelines for Organizations and Sarbanes-Oxley
Act
40. Laws and regulations change over time; however, in A: Any practice is permitted.
the United States the thrust of most business legislation B: Any practice is permitted that does not substantially reduce competition and
can be summed by which of the following statements? harm consumers or society.
C: Any practice is permitted that does not substantially harm consumers or
society, but this applies only within the United States.
D: Any practice is permitted that does not harm the environment.
E: Any practice is permitted that does not break the law.
Answer: B/ Any practice is permitted that does not substantially reduce
competition and harm consumers or society.
Morals Refer to a person's personal philosophies about what is right or wrong.
Business Ethics Comprises organizational principles, values, and norms that may originate from
individuals, organizational statements, or from the legal system that primarily
guide individual and group behavior in business.
Principles Specific and pervasive boundaries for behavior that should not be violated.
Values Enduring beliefs and ideals that are socially enforced.
Ethics Behavior or decisions made within a groups' values.
Workplace Integrity The pressure to compromise organizational standards, observed misconduct,
reporting of misconduct when observed, and retaliation against reports.
Moral Dilemma A situation where the person is faced with multiple choices, all of which are
undesirable as defined by the person.
Value Dilemma The same, only that the individual's beliefs are grounded in societal norms.
CORRECT ANSWERS
35. A major purpose of the Federal Sentencing A: Guard against anticompetitive business to improve the economy.
Guidelines for Organzations, the Sarbanes-Oxley Act, B: Create synergy among business to improve the economy.
and the Dodd-Frank Act is to: C: Encourage ethical conduct.
D: Discourage businesses from taking risks.
E: Mandate that companies engage in self-regulation
Answer: C/ Encourage ethical conduct
36. Which of the following laws instituted a whistle- A: Title VII of the Civil Rights Act
blower bounty program in which whistle-blowers are B: The Sherman Antitrust Act
eligible to receive 10 to 30 percent of fines if their reports C: The Federal Sentencing Guidelines for Organizations
result in convictions of more than $1 million in penalties? D: The Sarbanes-Oxley Act
E: The Dodd-Frank Act
Answer: E/ The Dodd-Frank Act
37. The Sarbanes-Oxley (SOX) Act raised a number of A: Complex and imposes additional costs on executives.
concerns. Critics of the legislation believe SOX is: B: not necessary
C: Fair to all firms
D: Harmful because it reduces restatements of financial reports.
E: Unconstitutional
Answer: A/ Complex and imposes additional costs on executives.
, 38. An ethical organizational culture creates an A: Values
environment in which to structure behavior that is then B: Norms
evaluated by stakeholders.A key element of an C: Artifacts
organizational culture that refers to the visible, tangible D: Behavior
external symbols of values and norms is known as an E: Employee Compensation
organization's:
Answer: C/ Artifacts
39. Which of the following provide incentives for A: Department of Justice, Sarbanes-Oxley Act, and Open Compliance Ethics
developing core practices within a firm that could help Group
ensure ethical and legal compliance? B: Department of Justice, Dodd-Frank Act, and Sarbanes-Oxley Act
C: Federal Sentencing Guidelines for Organizations and Sarbanes-Oxley Act
D: Food and Drug Administration, Federal Sentencing Guidelines for
Organizations, and Sarbanes-Oxley Act
E: Securities and Exchange Commission and Sarbanes-Oxley Act
Answer: C/ Federal Sentencing Guidelines for Organizations and Sarbanes-Oxley
Act
40. Laws and regulations change over time; however, in A: Any practice is permitted.
the United States the thrust of most business legislation B: Any practice is permitted that does not substantially reduce competition and
can be summed by which of the following statements? harm consumers or society.
C: Any practice is permitted that does not substantially harm consumers or
society, but this applies only within the United States.
D: Any practice is permitted that does not harm the environment.
E: Any practice is permitted that does not break the law.
Answer: B/ Any practice is permitted that does not substantially reduce
competition and harm consumers or society.
Morals Refer to a person's personal philosophies about what is right or wrong.
Business Ethics Comprises organizational principles, values, and norms that may originate from
individuals, organizational statements, or from the legal system that primarily
guide individual and group behavior in business.
Principles Specific and pervasive boundaries for behavior that should not be violated.
Values Enduring beliefs and ideals that are socially enforced.
Ethics Behavior or decisions made within a groups' values.
Workplace Integrity The pressure to compromise organizational standards, observed misconduct,
reporting of misconduct when observed, and retaliation against reports.
Moral Dilemma A situation where the person is faced with multiple choices, all of which are
undesirable as defined by the person.
Value Dilemma The same, only that the individual's beliefs are grounded in societal norms.
