Test Bank For Future of Business Canadian 5th Edition by Althouse

1. In the PEST model of the business environment, the “S” represents which of the following concepts? a. stability b. standards c. stakeholders d. social ANSWER: d 2. A set of moral standards for judging whether something is right or wrong is referred to as which of the following? a. beliefs b. ideals c. standards d. ethics ANSWER: d 3. Which of the following environmental factors is the most difficult for owners and managers to forecast, influence, or integrate into business plans? a. social change b. political change c. legal change d. economic change ANSWER: a 4. Which of the following is considered a social factor? a. ideals b. values c. beliefs d. standards ANSWER: b 5. Which of the following is considered a value? a. simplicity b. complexity c. drive d. intelligence ANSWER: a 6. Which of the following represents the buying pattern of those with a simple lifestyle? a. They will buy when the mood strikes them. b. It is not an important factor in their buying behaviour. c. They will buy less. d. They will buy more. ANSWER: c 7. Social factors are closely tied to which of the following? a. race b. gender c. demographics d. income ANSWER: c 8. Component lifestyle is a term that is described by which of the following behaviours? a. choosing to consider work, family, and leisure as equally important b. having a complex set of interests and choices c. choosing to live near employment during the week, and in cottage country on weekends d. having several careers that are varied in nature over several years ANSWER: b 9. Component lifestyles are important for businesses to consider for which of the following reasons? a. They indicate consumer income. b. They are important in domestic markets. c. They increase the complexity of consumer buying habits. d. They are constantly changing. ANSWER: c 10. Today, a person could be a banker, vegetarian, mountain banker, single father, and rock music fan; this is an example of which of the following? a. growing consumer advocate b. complex lifestyle c. personal transition d. component lifestyle ANSWER: d 11. Amra Singh was walking through the mall near her home and found an expensive watch lying on the ground. The decision that Singh must make—to keep the watch for herself, or turn it in to the mall’s lost-and-found counter—involves which of the following? a. consumerism b. cultural awareness c. ethics d. social reciprocity ANSWER: c 12. What is the greatest social change that has impacted business in Canada over the past three decades? a. globalization b. the phenomenon of working women c. a better educated workforce d. greater commuting distances for employees ANSWER: b 13. Women account for what percentage of consumer purchases? a. 95% b. 85% c. 75% d. 65% ANSWER: b 14. Which of the following is the study of people’s vital statistics, such as their age, race and ethnicity, and location? a. democracy b. demographics c. marketing d. consumerism ANSWER: b 15. Which of the following describes what demographics helps companies do? a. isolate a target market b. define the markets for their products c. analyze trends in the marketplace d. look at consumer purchasing power ANSWER: b 16. According to your text, which of the following demographic groups are described as “the most ethnically and socially diverse generation in history”? a. the baby boomers b. the mature market c. Generation Y d. Generation X ANSWER: c 17. Which of the following were born between 1995 and the present? a. the baby boomers b. Generation Z c. Generation Y d. Generation X ANSWER: b 18. Which of the following are also known as the generation M (multitasking) or the iGeneration? a. the baby boomers b. Generation Z c. Generation Y d. Generation X ANSWER: b 19. If companies want to attract employees from the Z generation, they must have which of the following? a. flexible hours b. a work-from-home policy c. a good benefits plan d. a social media presence ANSWER: d 20. The characteristics of being the first-generation of “latch-key” children (with working parents away all day), entering the job market during a period of economic recession or downsizing, and being cynical consumers who have had considerable exposure to media advertising, best represents which of the following groups? a. Generation Y b. Generation X c. the baby boomers d. the mature market ANSWER: b 21. Canada’s population is 35.5 million people. Almost 10 million of them, or 28 percent, belong to which generation? a. Generation Y b. Generation X c. GI Joe Generation d. Generation Z ANSWER: a 22. According to one market researcher, which generation will be the first to not live as well as their parents? a. Generation Y b. Generation X c. the baby boomers d. Generation Z ANSWER: b 23. Baby boomers were born in the period from the late 1940s to the mid-1960s. This group is best characterized by which of the following? a. They are committed to the idea of building up their personal savings. b. They created a strong ethic of volunteerism for themselves. c. They value travel and independence more than the other groups. d. They experienced postwar affluence that influenced the importance of material goods and improvement of social status. ANSWER: d 24. Older consumers are best described by which of the following? a. They have part-time employment to add to their incomes. b. They are the most significant group with respect to their consumerism. c. They enjoy spending freely in their retirement years. d. They are reluctant to spend money unless they can make cash purchases. ANSWER: a 25. What is the most important contributing factor to the required increase in Canada’s population? a. immigration b. higher life expectancy c. higher fertility rate d. healthier life style ANSWER: a 26. Canada was the first country in the world to enact an official policy about which of the following? a. immigration b. multiculturalism c. gay marriage d. euthanasia ANSWER: b 27. Which of the following is the concern of businesses for the welfare of society? a. social responsibility b. consumer protection c. the marketing concept d. business ethics ANSWER: a 28. The president of a company that manufactures plastic pipes for transporting crude oil considers how the company’s decisions will affect the welfare of society. He is expressing which of the following? a. macroeconomics b. social responsibility c. consumerism d. business ethics ANSWER: b 29. The Toronto District School Board has established an employee assistance program for its employees. This program helps employees deal with personal issues, such as daycare, elder care, substance abuse, financial difficulties, and the need for marital and personal counselling. As an employer, what is the school board practising? a. social responsibility b. employee services c. stakeholder satisfaction d. macroeconomics ANSWER: a 30. Walmart ran a series of advertisements in trade journals with the headline “We’re Looking for Quality Products That Are Guaranteed Not to Last,” meaning products that can be reused or recycled. This concern for the environment is one way that Walmart demonstrates which of the following? a. macroeconomics b. social responsibility c. the marketing concept d. environmental services ANSWER: b 31. Social responsibility goes beyond obligations provided by law or union contract. Which of the following represents two important aspects of social responsibility? a. provincial and federal b. voluntary and broad c. open and lawful d. public and private ANSWER: b 32. The vast majority of businesses exhibit which two dimensions of social responsibility? a. illegal and responsible b. illegal and irresponsible c. legal and irresponsible d. legal and responsible ANSWER: d 33. A set of economic policies that believes that the economy should be market-driven, not government-driven is referred to as which of the following? a. conservatism b. neoliberalism c. socialism d. fascism ANSWER: b 34. When asked about an idea for a new product, a socially responsible manager in the 21st century might say which of the following? a. “If it’s profitable, let’s make it.” b. “We can make the product, but what about the social effects?” c. “What are the tax implications if we make this product?” d. “How many do we have to sell to make a profit?” ANSWER: b 35. Which of the following statements best describes social responsibility? a. The federal government has written laws that require businesses to act in a socially responsible way. b. Companies that exhibit corporate philanthropy are not acting in a socially responsible way. c. The four components of the social responsibility pyramid model are equally important. d. The obligation that a business has to act in a socially responsible way extends beyond shareholders, to include employees, suppliers, consumers, and the community. ANSWER: d 36. A company can be concerned about which of the following types of responsibilities after it has met its economic and legal responsibilities? a. societal b. stakeholder c. ethical d. cultural ANSWER: c 37. A homebuilder who disposed of asbestos shingles by burying them on the buyer’s property may please the home buyer because it is a less expensive means of disposal but will be punished by various legal agencies if any become aware of the crime. At which stage of the social responsibility pyramid is the builder most likely operating? a. ethical b. economic c. stakeholder d. legal ANSWER: b 38. A company has achieved which level of responsibility when it has met its ethical, legal, and economic responsibilities? a. global b. altruistic c. societal d. philanthropic ANSWER: d 39. Many weight-loss programs advertise that they can help individuals lose a great deal of weight without any changes in the individual’s lifestyle. Typically when a person who has lost the weight leaves the program, he or she regains the weight. This phenomenon is almost as unhealthy for the body as the excess weight. Businesses operating these kinds of weight-loss programs are engaged in which type of behaviour? a. illegal and irresponsible b. legal and irresponsible c. legal and responsible d. illegal and responsible ANSWER: b 40. The highest level of the corporate social responsibility pyramid is represented by which of the following? a. philanthropic (charitable) responsibilities b. economic responsibilities c. responsibilities to stakeholders d. legal responsibilities ANSWER: a 41. The base of the corporate social responsibility pyramid is represented by which of the following? a. responsibilities to stakeholders b. economic responsibility c. legal responsibility d. philanthropic responsibility ANSWER: b 42. Peter Drucker, a well-known management scholar, has said that companies should be evaluated on which two basic dimensions? a. profitability and philanthropy b. customer satisfaction and profitability c. legality and profitability d. legality and responsibility ANSWER: d 43. Which term represents all of the individuals or groups to whom a business has a responsibility? a. stakeholders b. lobby groups c. shareholders d. consumers ANSWER: a 44. Which of the following would be stakeholders for a manufacturer of agricultural pesticides? a. people who work for the competitor in the United States b. the farmers who buy the products c. truckers who pass the plant on the highway d. government officials who set income tax rates ANSWER: b 45. The employees, the wood suppliers, the customers, and the government inspectors in a company that manufactures fine wooden office furniture are described as being which of the following? a. partners b. shareholders c. investors d. stakeholders ANSWER: d 46. As part of their responsibility to their employees a company must provide which of the following? a. a safe working environment b. competitive wages c. good benefits d. potential for advancement ANSWER: a 47. As part of their responsibility to their customers a company must do which of the following? a. deliver what it promises b. respond to all customer complaints c. have a generous returns policy d. have safe facilities ANSWER: a 48. As part of their responsibility to society a company must do which of the following? a. sponsor children’s sports teams b. be active with at least one charity c. be good stewards of the environment d. hire local workers ANSWER: c 49. A retailer allows its employees to handle customer complaints without having to ask for permission or directions from management. Which of the following activities would this policy encourage? a. employees feeling empowered to help customers b. employees ignoring the rights of customers c. employees actively helping customers d. employees avoiding customers ANSWER: a 50. Which of the following is the practice of limiting investments to companies that behave in accordance with the investor’s beliefs about ethical and social issues? a. strategic giving b. social investing c. investor paternalism d. corporate philanthropy ANSWER: b 51. Martin’s stock portfolio includes only companies using recycled components in their manufacturing process. He is a strong believer in environmental protection, and his way of expressing that belief is by which of the following? a. ethical giving b. strategic giving c. social investing d. social paternalism ANSWER: c 52. Which of the following best describes social investing? a. It has little impact on whether a company chooses to operate in a socially responsible way. b. It is the practice of limiting investments to companies that have the ethical policies that match those of the investor. c. It was more popular in the 1960s than it is today. d. It is a type of corporate philanthropy. ANSWER: b 53. Which of the following is the practice of charitable giving by corporations? a. financial empowerment b. ethical responsibility c. economic responsibility d. corporate philanthropy ANSWER: d 54. Royal Bank gives money to support performing arts presentations in schools. This is an example of which of the following behaviours? a. corporate philanthropy b. ethical responsibility c. financial empowerment d. economic responsibility ANSWER: a 55. Corporate philanthropy is best described by which of the following? a. It is defined as the corporation’s responsibility to satisfy the needs of its investors. b. It can be either a cash or noncash donation. c. It is not a way that most companies express their social responsibilities. d. It is the practice of limiting investments to companies that behave in accordance with the investor’s code of ethics. ANSWER: b 56. Cash donations of equipment and products and support for volunteer efforts of employees are all aspects of which of the following? a. corporate philanthropy b. whistle-blowing c. social contract d. social responsibility ANSWER: a 57. The way in which an organization is governed, directed, and administered is referred to as which of the following? a. corporate governance b. organizational behaviour c. management structure d. institutional leadership ANSWER: a 58. Who is responsible for the organization being managed in the best interest of the corporation? a. executives b. corporate officers c. board of directors d. shareholders ANSWER: c 59. a. b. c. d. ANSWER: c 60. In addition to individual ethics what else can be used as guideposts for choosing between right and wrong? a. advice of elders b. parents’ behaviour c. laws of our society d. company policies ANSWER: c 61. Which of the following is a philosophy that focuses on the consequences of an action to determine if it is right or wrong and expresses the idea that anything that negatively affects the majority of people in a situation is morally wrong? a. utilitarianism b. social responsibility c. preconventional morality d. distributive justice ANSWER: a 62. The notion that people should act so as to generate the greatest good for the greatest number is derived from which of the following? a. socialism b. conventional morality c. utilitarianism d. social responsibility ANSWER: c 63. In 1996, the Atlanta Olympic Committee designed and built a tall structure shaped like the Olympic Torch, for visitors to climb to get a view of the city. The design was not wheelchair accessible, as the required changes to the design would alter the structure’s appearance significantly. The decision was that no one would be allowed to climb to the top. This decision reflects which philosophy? a. preconventional morality b. social responsibility c. distributive justice d. utilitarianism ANSWER: d 64. Utilitarianism is best explained by which of the following? a. It creates the best situation for all individuals. b. It is difficult to implement because it is hard to predict how a decision will affect a large number of people. c. It states that any act that goes against the rights of an individual is wrong. d. It expresses the idea of fairness. ANSWER: b 65. Which of the following best reflects the Canadian Charter of Rights and Freedoms? a. It is effective for those working for federally incorporated companies. b. It is superordinate to any other laws that affect Canadians’ rights and freedoms. c. It applies only to employer–employee situations. d. It relates to what is considered fair by prevailing standards of society. ANSWER: b 66. Paul Thomas was going to leave the gas station without paying for the gas he had just put into his car when he noticed a police car pull up at one of the other pumps. Thomas went into the cashier and paid because he was afraid he would get caught if he tried to get away without paying. Thomas is in which of the following stages of ethical development? a. preconventional ethics b. self-defined ethics c. conventional ethics d. ego-centred development ANSWER: a 67. Which of the following statements best describes ethical development? a. A child who decides not to play with her mother’s jewellery because she is afraid she will be punished is in a state of ego-centred ethical development. b. An individual with conventional ethics is self-centred. c. An adult who refuses to visit his aunt in the hospital because the visit will cause him to miss Hockey Night in Canada on television is in the postconventional stage of ethical development. d. An individual in the preconventional stage of ethical development would be more concerned about rewards and punishment than about what is right or wrong. ANSWER: d 68. Individuals move from a self-centred viewpoint to consider the expectations of the society in which they live in which stage of ethical development? a. conventional b. self-defined c. preconventional d. societal ANSWER: a 69. Vonda Bao works for a furniture store that was near bankruptcy. Bao developed a marketing promotion where customers could buy one room of furnishings, and get a second room of equal value free. Her employer will be able to offer this promotion if, just prior to advertising, he doubles all of the prices. Bao knows that the advertising will make customers believe they are getting a good deal, and she thinks her employer should go ahead with the plan because it will allow the store to earn enough to stay in business. Bao is at which stage of ethical development? a. preconventional b. conventional c. societal d. self-defined ANSWER: a 70. Which stage of ethical development is most likely to be seen in mature adults? a. ego-centred b. postconventional c. conventional d. preconventional ANSWER: b 71. The chemical waste from a factory is at the legal limits that are allowed for disposal through drains and sewers on the factory property. Even though it is at legal limits, it could potentially harm wildlife along the nearby river, and could affect neighbouring farms and livestock through streams and ponds. The factory owners want to prevent this from happening, but it will mean that they need to spend nearly $3 million for new equipment, and this will mean eliminating 70 jobs. A company president who would implement the new equipment to reduce the chemical waste because it could harm the environment and surrounding community is in which stage of ethical development? a. preventional b. conventional c. preconventional d. postconventional ANSWER: d 72. Which approach to ethics has been evident when it comes to cyberspace? a. concentrated b. focused c. laissez-faire d. secret ANSWER: c 73. Taking your company’s trade secrets to a new place of employment constitutes which of the following ethical violations? a. hiding or divulging information b. violating rules c. taking unfair advantage d. permitting organizational abuse ANSWER: a 74. Which of the following is an example of an unethical business activity? a. The employee reports his employer for making several illegal deductions from his pay. b. The employee unknowingly gives out incorrect information. c. The sales representative allows the customer to believe that his purchase would be delivered on time, as he believed this to be true himself. d. The employee uses a company computer to check his results in an online betting transaction. ANSWER: d 75. Which of the following is an example of ethical business activity? a. The employee uses the company postage meter to put postage on personal letters. b. The employee regularly tells jokes that make fun of blonde women. c. The employee went to a movie one afternoon, telling others in the office that she had an appointment at a customer location. d. The employee reports to his supervisor that he has witnessed a coworker taking home expensive company supplies such as printer cartridges. ANSWER: d 76. People choose between right and wrong based on which of the following? a. what others are doing b. their desire to please the boss c. their fear of discovery d. their personal code of ethics ANSWER: d 77. Organizations can reduce the potential for bad business ethics within their organization by doing which of the following? a. have all employees help write the code of ethics b. educating their employees about ethical standards c. hire only ethical employees d. hire an ethics consultant ANSWER: b 78. The first step in making a good and ethical business decision is which of the following? a. Learn to recognize unethical business activities when they occur. b. Develop a business code of ethics. c. Hire an ethics consultant. d. Develop a personal code of ethics. ANSWER: a 79. One of the indications of ethical business behaviour is which of the following? a. the number of mature workers in the company b. the number of rules, regulations, and guidelines provided by the company c. the behaviour of the company’s senior management d. the perception of company rules by employees ANSWER: c 80. Which of the following statements best describes ethics training? a. The most effective ethics training begins with the development of a personal code of ethics. b. Ethics training is formal training to develop awareness of inappropriate behaviour and to practise appropriate responses. c. Ethics training is best done informally to allow employees to feel free to admit their mistakes. d. One of the purposes of ethics training is to get employees to admit when and where they have acted unethically. ANSWER: b 81. A code of ethics can best be characterized by which of the following? a. It can offer a lengthy and detailed set of guidelines to employees. b. It is considered a public relations tool. c. It provides employees with the knowledge of what their company expects with regard to their responsibilities and behaviour. d. It summarizes the company’s goals, policies, and priorities. ANSWER: c 82. Codes of ethics can have an impact in which of the following ways? a. They provide informal guidelines about dealing with ethical matters. b. They deal only with the employees’ relationships with customers. c. They describe common ethical decisions faced by employees. d. They may be influential in determining a person’s decision-making behaviour. ANSWER: d 83. Which of the following statements best describes whistle-blowing in Canada? a. The protection for whistle-blowers in Canada is primarily related to health and safety issues. b. A whistle-blower must be an employee of the organization. c. There have been very few reported instances of whistle-blowing in Canada. d. There is no protection for whistle-blowers in Canada. ANSWER: a 84. Home Depot, the building store company, supplies all the materials and the labour expertise for Habitat for Humanity, a charitable home-building program. Senior management believes that this type of philanthropy better reflects the company’s commitment to the community than simply donating money to charitable causes. This is an example of which of the following? a. social investing b. strategic giving c. social philanthropy d. strategic paternalism ANSWER: b 85. Which of the following is the practice of tying philanthropy to the corporate mission or goals, and targeting donations to regions where the company operates? a. social investing b. strategic paternalism c. strategic giving d. social philanthropy ANSWER: c 86. Which of the following are aspects of the new social contract trend between employer and employee? a. The employee will always have job security. b. The employee has the right to pay that reflects his or her contribution. c. The employee cannot demand interesting work. d. The employee is not responsible for finding ways to add value to the organization. ANSWER: b 87. A trend today is toward a new “social contract” or understanding between employer and employee. Which of the following aspects of job security is suggested by the contract? a. It is no longer possible. b. It is the responsibility of investors. c. It is the responsibility of the employer. d. It is practised only in large organizations. ANSWER: a 88. Computer companies that link their product donations to schools with their corporate goals are practising which of the following? a. a social contract b. strategic giving c. global ethics d. social investing ANSWER: b 89. Which of the following statements best describes how global ethics should be practised? a. A multinational corporation should involve stakeholders in the host country in decision making. b. Canadian businesses must adhere to the ethics of the host country. c. A multinational corporation should make only short-term commitments to the host country. d. The global standards of the company should override local practices and customs. ANSWER: a 90. A multinational company that implements ethical guidelines within the organization in the host country will foster which of the following behaviours? a. resentment in the host country b. resentment in the home office c. respect for local laws d. respect for both local and international laws ANSWER: d 91. In evaluating an ethical problem, managers can use which of the following tests to determine the most ethical response? a. three questions test b. whistle-blowing test c. social responsibility test d. social contract test ANSWER: a 92. Trends in the social environment are an aspect of the PEST model of the business environment. a. True b. False ANSWER: True 93. There is a strong business case for practising business integrity and behaving in a socially responsible manner. a. True b. False ANSWER: True 94. Component lifestyles refers to buying goods and services at different stages of life. a. True b. False ANSWER: False 95. Because social factors such as attitudes, values, and lifestyles influence consumers’ choices, it is difficult for business to predict what will appeal to a 34-year-old married woman, living in the suburbs, working in an urban downtown location, with 2 children who play soccer. a. True b. False ANSWER: True 96. Component lifestyles have evolved because consumers can choose from a growing number of goods and services, and most have the money to exercise more options. a. True b. False ANSWER: True 97. The impact of working women has been overestimated as a factor in social change. a. True b. False ANSWER: False 98. Working women respond to marketing approaches in the same way as working men do. a. True b. False ANSWER: False 99. Demographics is the study of people’s vital statistics, such as their age, race and ethnicity, and location. a. True b. False ANSWER: True 100. Demographics can be used to try to predict or forecast buying patterns among a population. a. True b. False ANSWER: True 101. Generation Z is also known as the iGeneration. a. True b. False ANSWER: True 102. If companies want to attract Generation Z employees they have to have a social media presence. a. True b. False ANSWER: True 103. Generation Y individuals tend to enjoy participating in high-action activities. a. True b. False ANSWER: False 104. Generation X refers to the demographic that began entering the workforce during an affluent period in the Canadian economic cycle. a. True b. False ANSWER: False 105. The size of the baby boomer population in Canada has encouraged businesses to try to cater to the individualized needs and interests of this demographic. a. True b. False ANSWER: True 106. Business people interested in selling more in the Canadian market have found no profit in diversifying product offerings to meet so many individualized tastes among the baby boomers. a. True b. False ANSWER: False 107. Over the next few decades, Canada will shift away from a society reflecting a dominant Western culture toward a society influenced by multiculturalism. a. True b. False ANSWER: True 108. Canada was the first country in the world to enact an official multiculturalism policy. a. True b. False ANSWER: True 109. Half the residents of Toronto and Montreal may be members of visible minorities by 2017. a. True b. False ANSWER: False 110. The greatest increase in the Canadian population over the next decade will come from the increased birth rate. a. True b. False ANSWER: False 111. Organizations can be evaluated on two basic dimensions with regard to social responsibility—legality and responsibility. a. True b. False ANSWER: True 112. Social responsibility is the concern of businesses for society as a whole, going beyond contractual obligations. a. True b. False ANSWER: True 113. In the pyramid of corporate social responsibility, economic performance is the foundation for legal responsibility. a. True b. False ANSWER: True 114. Producing a product using existing standards as a guideline, even though new information suggests those standards may be unsafe or in need of change for safety reasons, is irresponsible and illegal. a. True b. False ANSWER: False 115. Businesses engage in environmental protection activities to show their responsibility to their stakeholders in the general public. a. True b. False ANSWER: True 116. Corporate philanthropy is the practice of charitable giving by corporations including contributing cash, donating equipment and products, and supporting volunteer efforts of company employees. a. True b. False ANSWER: True 117. Corporate philanthropy excludes any noncash donations. a. True b. False ANSWER: False 118. The board of directors is responsible for the organization being managed in the best interest of the corporation. a. True b. False ANSWER: True 119. The philosophy of utilitarianism is used to explain why businesses should make themselves accessible to people with disabilities. a. True b. False ANSWER: False 120. The philosophy of utilitarianism is basically the greatest good for the greatest number. a. True b. False ANSWER: True 121. Human rights include an individual’s right to life, to freedom, and to equality. a. True b. False ANSWER: True 122. A television station that refused to sell advertising space to a company that sells child-oriented junk food would be in the postconventional stage of ethical development. a. True b. False ANSWER: True 123. When an employee takes home company stationery supplies such as pens and binders, to give to his children as school supplies, it is unethical. a. True b. False ANSWER: True 124. The first step in making ethical decisions is to learn to recognize unethical activities when they occur. a. True b. False ANSWER: True 125. One of the best ways to make sure an organization has ethical standards throughout is to have the leaders set a good example. a. True b. False ANSWER: True 126. To be useful, a code of ethics should provide broad policies and let individual employees decide what rules they should follow. a. True b. False ANSWER: False 127. IBM demonstrates strategic giving when the organization directs its charitable contributions to areas such as technological education when IBM needs to ensure a supply of well-educated employees in the future. a. True b. False ANSWER: True 128. Employees have the right to expect that employers bear the responsibility for ensuring job security. a. True b. False ANSWER: False 129. Multinational companies must balance the conflicting interests of stakeholders when making decisions regarding social responsibilities, especially in the area of human rights. a. True b. False ANSWER: True 130. What are ethics? ANSWER: a set of standards for judging whether something is right or wrong 131. Why are “component lifestyles” important for marketers to understand? ANSWER: They increase the complexity of consumer’s buying habits. 132. Why is the study of demography important? ANSWER: because it defines the basis for the market 133. Generation Y is driving the educational software and technology markets. They were raised in an era of affluence. Which group preceded them and what did they experience? ANSWER: Generation X preceded them. Gen X was the first group to experience both parents working, or a single working parent, and they received a lot of exposure to television and advertising. 134. Name the group that is the largest mass market demographic in Canada. ANSWER: baby boomers 135. Canada is shifting from a society dominated by British and Western European culture toward a society characterized by many racial and ethnic minorities. Name the term used to describe this new society. ANSWER: multiculturalism 136. According to management expert Peter Drucker, what are the basic dimensions of social responsibility? ANSWER: legality and responsibility 137. List the four levels of the social responsibility pyramid. ANSWER: economic responsibility, legal responsibility, ethical responsibility, and philanthropic responsibility 138. What is the term used to describe the group consisting of the employees, investors, suppliers, and consumers of a manufacturer of laboratory equipment? ANSWER: stakeholders 139. During what stage of ethical development would an individual most likely be described as childlike? ANSWER: preconventional 140. During which stage of ethical development would an individual most likely be described as “egocentric” or concerned only with himself? ANSWER: preconventional 141. What is the first step in learning to make good ethical decisions? ANSWER: learning to recognize unethical activities 142. A new trend in the form of a new social contract between employer and employee regarding job security is emerging. How is the responsibility for ensuring job security shared? ANSWER: Employees can ensure security of their jobs by continuing to add value to the organization. Employers can ensure job security by treating good performers fairly and with continued jobs. 143. What are the questions that a manager might ask herself about the ethics of a decision, if she is using the three question test? ANSWER: (1) Is it legal? (2) Is it balanced? (3) How does it make me feel?