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Question 1 The ________ formed in 1995 and administers its own trade agreements, facilitates future trade negotiations, settles trade disputes, and monitors the trade policies of member nations. Answer International Monetary Fund United Nations World Trade Organization North American Free Trade Act European Union Question 2 Who argued during the 1930s that the state could stimulate economic growth and improve stability in the private sector? Answer Adam Smith John Maynard Keynes Milton Friedman Herbert Hoover Geert Hofstede Question 3 Risk compartmentalization occurs when Answer companies place their most problematic employees into separate profit centers so that they cannot influence one another to act unethically. all profit centers within a corporation are aware of the code of ethics. all profit centers within an organization become aware of the consequences of competitors' actions. various profit centers within an organization become unaware of the consequences of their actions on the firm as a whole. ethics and compliance programs reduce the risk of misconduct Question 4 The growth of the Internet and differing security laws between countries has led to an increase in concern for the human right of Answer religion. a secure job. healthcare. privacy. freedom of speech Question 5 When in Rome, do as the Romans do, or you must adapt to the cultural practices of the country in which you are operating are rationalizations businesspeople sometimes offer for straying from their own ethical values when doing business abroad. This practice is called Answer self-reference criterion. country cultural values. consumerism. cultural relativism. dumping Question 6 ________ is a term used by Adam Smith to explain the inherent mechanisms at work in free market systems that keep commerce in equilibrium. It is also known as the “invisible hand.” Answer Consumerism Cultural relativism Social democracy Laissez-fair Bimodal wealth distribution Question 7 Which of the following has the power to enact legally binding ground rules for international commerce and trade policy? Answer Global Sullivan Principles World Trade Organization Global Sullivan Organization Federal Trade Commission Global Commerce Association Question 8 ________ involves transactions across national boundaries. It is a practice that brings together people who have different cultures, values, laws, and ethical standards. Answer Global business Country cultural values Social democracy Cultural relativism Bimodal wealth distribution Question 9 ________ is a two-way process in which the communicator communicates with superiors and subordinates. Answer Cooperation Transparency Leader-follower congruence Reporting Collaboration Question 10 Which type of leader relies on participation and teamwork to reach collaborative decisions? Answer Transformational Coercive Democratic Coaching Pacesetting Question 11 Which leadership type values people, their emotions, and their needs and relies on friendship and trust to promote flexibility, innovation, and risk taking? Answer Authoritative leadership Coaching leadership Pacesetting leadership Coercive leadership Affiliative leadership Question 12 ________ and reporting are two major dimensions of ethical communication. Answer Collaboration Transparency Recognition Listening Compromising Question 13 ________ are a primary influence on employee’s ethical behavior because they are role models for the organization’s values. Answer Friends Parents Peers Coworkers Leaders Question 14 These leaders are passionate about the company, live out corporate values daily in their behavior in the workplace, and form long-term relationships with employees and other stakeholders. Answer Transactional Compromising Transformational quantitative Authentic Question 15 ________ occurs when one or more group members feel pressured to conform to the group's decision even if they personally disagree. Answer Group polarization Leader-follower congruence Groupthink Competition Conflict Question 16 ________ leaders are passionate about the company, live out corporate values daily in their behavior in the workplace, and form long-term relationships with employees and other stakeholders. Answer Authentic Coaching Transformational Transactional Pacesetter Question 17 Although limiting urban sprawl creates disadvantages for ________, many businesses can benefit from urban renewal movements that reduce sprawl. Answer car and oil companies the airline industry the railroad industry service oriented companies humans and animals Question 18 Which industry invests the most in alternative clean energy sources? Answer The automobile industry The clothing industry The airline industry The federal government The oil and gas industry Question 19 The Clean Air Act: Answer Allowed the EPA to track industrial chemicals Focuses on promoting alternative forms of energy Established national air quality standards Provides tax benefits to consumers who purchase hybrid cars Focuses on reducing pollution through cost-effective change Question 20 Which option includes the assessment and improvement of business strategies, economic ectors, work practices, technologies, and lifestyles while maintaining the natural environment? Answer Competitive advantage Marketing Sustainability Greenwashing Risk analysis Question 21 Geothermal energy provides ________ and is a more dependable energy source than some other forms of alternative energy. Answer heat from the sun a radiated heat heat from steam a constant source of heat a dry heat Question 22 Stakeholder assessment is an important part of a ________approach to environmental issues. Answer low-commitment medium-commitment high-commitment hands-off hands-on Question 23 All of these are ways of reducing pollution, except: Answer Designing environmentally friendly buildings Recycling Greenwashing Source reduction Sustainable agriculture Question 24 The ________ focuses on reducing pollution through cost-effective changes in production, operation, and raw materials use. Answer Pollution Prevention Act Toxic Substances Control Act Clean Air Act Energy Policy Act Oil Pollution Act Question 25 The Clean Water Act makes it illegal for anyone to discharge any pollutant from a point source directly into navigable waters without a . Answer good reason direct order permit inspector present limit

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