Test Bank For Business Ethics Ethical Decision Making & Cases 10th Edition by O. C. Ferrell

1. Principles are a. laws and regulations that guide behavior in the world of business. b. mores, values, and customs that guide behavior in general. c. specific and pervasive boundaries for behavior that are universal and absolute. d. the obligations businesses assume to maximize their positive impact and minimize their negative impact on stakeholders. e. the mores, values, and customs that parents teach their children. ANSWER: POINTS: DIFFICULTY: REFERENCES: LEARNING OBJECTIVES: NATIONAL STANDARDS: STATE STANDARDS: KEYWORDS: c 1 Easy p.5 LO: 1-1 - Explore conceptualizations of business ethics from an organizational perspective. United States - BUSPROG: Ethics United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities Blooms: Comprehension 2. Social responsibility is a. an organization's obligation to maximize its positive effects and minimize its negative effects on stakeholders. b. principles and standards that guide behavior in the world of business. c. a business's responsibility not to pollute the environment. d. a business's responsibility to manufacture products that function properly. e. charitable contributions made by a business to enhance its image. ANSWER: POINTS: DIFFICULTY: REFERENCES: LEARNING OBJECTIVES: NATIONAL STANDARDS: STATE STANDARDS: KEYWORDS: a 1 Easy p. 23 LO: 1-4 - Gain insight into the extent of ethical misconduct in the workplace and the pressures for unethical behavior. United States - BUSPROG: Ethics United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities Blooms: Knowledge 3. The was/were enacted to restore confidence in financial reporting and business ethics after the accounting scandals of the early 2000s. a. Defense Industry Initiative on Business Ethics and Conduct b. Sarbanes-Oxley Act c. Federal Sentencing Guidelines for Organizations d. Foreign Corrupt Practices Act e. Dodd-Frank Wall Street Reform and Consumer Protection Act ANSWER: POINTS: DIFFICULTY: REFERENCES: LEARNING OBJECTIVES: NATIONAL STANDARDS: STATE STANDARDS: KEYWORDS: b 1 Moderate p. 13 LO: 1-2 - Examine the historical foundations and evolution of business ethics. United States - BUSPROG: Ethics United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities Blooms: Knowledge 4. The term business ethics is best described by the following statement: a. It is the study and philosophy of human conduct, with an emphasis on determining right and wrong. b. It is an "inquiry into the nature and grounds of morality where the term morality is taken to mean moral judgments, standards and rules of conduct." c. It is the "study of the general nature of morals and of specific moral choices; moral philosophy; and the rules or standards governing the conduct of the members of a profession." d. It is an organization's obligation to maximize its positive effects and minimize its negative effects on stakeholders. e. It comprises the principles, values, and standards that guide behavior in the world of business. ANSWER: POINTS: DIFFICULTY: REFERENCES: LEARNING OBJECTIVES: NATIONAL STANDARDS: STATE STANDARDS: KEYWORDS: e 1 Moderate p. 5 LO: 1-1 - Explore conceptualizations of business ethics from an organizational perspective. United States - BUSPROG: Ethics United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities Blooms: Knowledge 5. Which of the following is not one of the rights spelled out by John F. Kennedy in his "Consumers' Bill of Rights"? a. The right to choose b. The right to safety c. The right to be informed d. The right to be ethical e. The right to be heard ANSWER: POINTS: DIFFICULTY: REFERENCES: LEARNING OBJECTIVES: NATIONAL STANDARDS: STATE STANDARDS: KEYWORDS: d 1 Easy p. 10 LO: 1-2 - Examine the historical foundations and evolution of business ethics. United States - BUSPROG: Ethics United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities Blooms: Knowledge 6. During the 1990s the institutionalization of business ethics was largely driven by which piece of legislation? a. Sarbanes-Oxley Act b. Federal Sentencing Guidelines for Organizations c. Dodd-Frank Wall Street Reform and Consumer Protection Act d. Foreign Corrupt Practices e. Global Sullivan Principles ANSWER: POINTS: DIFFICULTY: REFERENCES: LEARNING OBJECTIVES: NATIONAL STANDARDS: STATE STANDARDS: KEYWORDS: Act b 1 Easy p. 12 LO: 1-2 - Examine the historical foundations and evolution of business ethics. United States - BUSPROG: Ethics United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities Blooms: Knowledge 7. Business ethics, as a field, has passed through which of the following states? a. A field of study to theological discussion to recognition of social issues b. Recognition of social issues to a field of study to theological discussion c. A field of study to recognition of social issues to theological discussion d. Recognition of social issues to theological discussion to a field of study e. Theological discussion to recognition of social issues to a field of study ANSWER: POINTS: DIFFICULTY: REFERENCES: LEARNING OBJECTIVES: NATIONAL STANDARDS: STATE STANDARDS: KEYWORDS: e 1 Moderate p. 9-12 LO: 1-2 - Examine the historical foundations and evolution of business ethics. United States - BUSPROG: Ethics United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities Blooms: Comprehension 8. The 1960s saw a rise of consumerism. What is consumerism? a. An increase in consumer rights by organizations and governments b. The growth of international retail chain stores c. Activities undertaken by independent individuals, and groups to protect their rights as consumers d. The widespread adoption of consumer oriented marketing strategies among businesses e. Organizations’ tendency to seek ways to take advantage of consumers ANSWER: POINTS: DIFFICULTY: REFERENCES: LEARNING OBJECTIVES: NATIONAL STANDARDS: STATE STANDARDS: KEYWORDS: c 1 Easy p. 10 LO: 1-2 - Examine the historical foundations and evolution of business ethics. United States - BUSPROG: Ethics United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities Blooms: Knowledge 9. Ethics is a part of decision making a. at all levels of work and management. b. primarily at the upper management levels of an organization. c. mostly for policy makers. d. that is less important than other decision making processes. e. only at that lower levels of organizational management. ANSWER: POINTS: DIFFICULTY: REFERENCES: LEARNING OBJECTIVES: NATIONAL STANDARDS: STATE STANDARDS: KEYWORDS: a 1 Easy p. 3 LO: 1-1 - Explore conceptualizations of business ethics from an organizational perspective. United States - BUSPROG: Ethics United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities Blooms: Knowledge 10. Which of the following was developed in the 1980s to guide corporate support for ethical conduct by establishing a method for discussing best practices? a. Federal Sentencing Guidelines for Organizations b. Defense Industry Initiative on Business Ethics and Conduct c. Corporate codes of conduct d. United States Sentencing Commission e. MERCOSUR ANSWER: POINTS: DIFFICULTY: REFERENCES: LEARNING OBJECTIVES: NATIONAL STANDARDS: STATE STANDARDS: KEYWORDS: b 1 Moderate p. 12 LO: 1-2 - Examine the historical foundations and evolution of business ethics. United States - BUSPROG: Ethics United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities Blooms: Knowledge 11. The focus(es) on firms taking action to prevent and detect business misconduct in cooperation with government regulation. a. United States Sentencing Commission b. Defense Industry Initiative on Business Ethics and Conduct c. World Trade Organization d. United Nations Global Compact e. Federal Sentencing Guidelines for Organizations ANSWER: POINTS: DIFFICULTY: REFERENCES: LEARNING OBJECTIVES: NATIONAL STANDARDS: STATE STANDARDS: KEYWORDS: e 1 Easy p. 12 LO: 1-2 - Examine the historical foundations and evolution of business ethics. United States - BUSPROG: Ethics United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities Blooms: Knowledge 12. The study of business ethics is important to better understand all of the following except a. that a person's own moral philosophies and decision-making experience may not be sufficient to guide him or her in the business world. b. how and why people make ethical or unethical decisions. c. how to cope with conflicts between a person's own values and those of the organization in which he or she works. d. that business ethics is entirely an extension of an individual's own personal ethics. e. how to identify ethical issues arising in the business world. ANSWER: POINTS: DIFFICULTY: REFERENCES: LEARNING OBJECTIVES: NATIONAL STANDARDS: STATE STANDARDS: KEYWORDS: d 1 Moderate p. 8-9 LO: 1-1 - Explore conceptualizations of business ethics from an organizational perspective. United States - BUSPROG: Ethics United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities Blooms: Comprehension 13. According to the role of ethical culture in performance, all of these are drivers of profit except a. trust. b. investor loyalty. c. employee commitment. d. customer satisfaction. e. opportunity for misconduct. United States - BUSPROG: Ethics United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities Blooms: Knowledge ANSWER: POINTS: DIFFICULTY: REFERENCES: LEARNING OBJECTIVES: 1.3 NATIONAL STANDARDS: STATE STANDARDS: KEYWORDS: e 1 Easy p. 16 14. More than a compliance program, business ethics is becoming a. a management issue to achieve competitive advantage. b. less accepted by society. c. mainly a government regulatory issue. d. an initiative led by nonprofit organizations. e. a program that decreases profits but increases societal benefits. United States - BUSPROG: Ethics United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities Blooms: Knowledge ANSWER: POINTS: DIFFICULTY: REFERENCES: LEARNING OBJECTIVES: 1.3 NATIONAL STANDARDS: STATE STANDARDS: KEYWORDS: a 1 Easy p. 19 15. Having acceptable personal ethics is probably not going to be sufficient to handle complex business ethical issues when an individual has a. family concerns. b. an unethical boss. c. limited business experience. d. financial training. e. a marketing background. ANSWER: POINTS: DIFFICULTY: REFERENCES: LEARNING OBJECTIVES: NATIONAL STANDARDS: STATE STANDARDS: KEYWORDS: c 1 Easy p. 8 LO: 1-1 - Explore conceptualizations of business ethics from an organizational perspective. United States - BUSPROG: Ethics United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities Blooms: Knowledge 16. One of the major ethical issues President Obama’s administration focused on was a. decreasing environmental legislation. b. deregulation. c. tax decreases. d. incentives to oil companies. e. health care and consumer protection. United States - BUSPROG: Ethics United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities Blooms: Knowledge ANSWER: POINTS: DIFFICULTY: REFERENCES: LEARNING OBJECTIVES: 1.3 NATIONAL STANDARDS: STATE STANDARDS: KEYWORDS: e 1 Easy p. 14 17. Which of the following is generally not considered a business ethics issue? a. Harassment b. Accounting fraud c. Employee theft d. Misuse of organizational resources e. Corporate hierarchy ANSWER: POINTS: DIFFICULTY: REFERENCES: LEARNING OBJECTIVES: NATIONAL STANDARDS: STATE STANDARDS: KEYWORDS: e 1 Easy p. 7 LO: 1-1 - Explore conceptualizations of business ethics from an organizational perspective. United States - BUSPROG: Ethics United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities Blooms: Knowledge 18. Which represented a far-reaching change to organizational control and accounting systems, making securities fraud a criminal offense? a. Council on Economic Priorities and Social Accountability 8000. b. Sarbanes-Oxley Act. c. Consumer Protection Act. d. Defense Industry Initiative on Business Ethics and Conduct. e. Dodd-Frank Wall Street Reform and Consumer Protection Act. ANSWER: POINTS: DIFFICULTY: REFERENCES: LEARNING OBJECTIVES: NATIONAL STANDARDS: STATE STANDARDS: KEYWORDS: b 1 Easy p. 13 LO: 1-2 - Examine the historical foundations and evolution of business ethics. United States - BUSPROG: Ethics United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities Blooms: Knowledge 19. The Foreign Corrupt Practices Act outlawed a. accounting fraud. b. price collusion. c. corruption in government. d. bribery of officials in other countries. e. executive misconduct. ANSWER: POINTS: DIFFICULTY: REFERENCES: LEARNING OBJECTIVES: NATIONAL STANDARDS: STATE STANDARDS: KEYWORDS: d 1 Easy p. 11 LO: 1-2 - Examine the historical foundations and evolution of business ethics. United States - BUSPROG: Ethics United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities Blooms: Knowledge 20. Which of the following was not a provision of the Sarbanes-Oxley Act? a. It stiffened penalties for corporate fraud. b. It created an accounting oversight board that requires corporations to establish codes of ethics for financial reporting. c. It required top executives to sign off on their firms' financial statements. d. It outlawed bribery of officials in other countries. e. It made securities fraud a criminal offense. ANSWER: POINTS: DIFFICULTY: REFERENCES: LEARNING OBJECTIVES: NATIONAL STANDARDS: STATE STANDARDS: KEYWORDS: d 1 Moderate p. 13 LO: 1-2 - Examine the historical foundations and evolution of business ethics. United States - BUSPROG: Ethics United States - NONE - DISC: Ethical Responsibility - Ethical Responsibility Blooms: Knowledge 21. Which of the following is not cited as an example of a global collaborative effort to establish standards of business conduct? a. Council on Economic Priorities' Social Accountability 8000 b. Ethical Trading Initiative c. U.S. Apparel Industry Partnership d. United States Sentencing Commission e. World Trade Organization ANSWER: POINTS: DIFFICULTY: REFERENCES: LEARNING OBJECTIVES: 1.3 NATIONAL STANDARDS: STATE STANDARDS: KEYWORDS: United States - BUSPROG: Ethics United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities Blooms: Knowledge d 1 Moderate p. 15 22. Because of Sarbanes-Oxley, publicly traded companies must develop financial reporting. a. ethics officers b. ethics programs to assist in maintaining transparency in c. codes of ethics d. legal counsel e. accountants ANSWER: POINTS: DIFFICULTY: REFERENCES: LEARNING OBJECTIVES: NATIONAL STANDARDS: STATE STANDARDS: KEYWORDS: c 1 Easy p. 13 LO: 1-2 - Examine the historical foundations and evolution of business ethics. United States - BUSPROG: Ethics United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities Blooms: Knowledge 23. is essential in building long-term relationships between businesses and consumers. a. Profits b. Dividends c. Trust d. Hubris e. Codes of ethics ANSWER: POINTS: DIFFICULTY: REFERENCES: LEARNING OBJECTIVES: 1.3 NATIONAL STANDARDS: STATE STANDARDS: KEYWORDS: United States - BUSPROG: Ethics United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities Blooms: Knowledge c 1 Easy p. 18 24. The Dodd-Frank Wall Street Reform and Consumer Protection Act a. was very popular among Wall Street bankers. b. represented only modest reform. c. came out of theological discussions in the 1920s. d. was designed to make the financial services industry more responsible. e. made it mandatory for public corporations to hire ethics officers. ANSWER: POINTS: DIFFICULTY: REFERENCES: LEARNING OBJECTIVES: NATIONAL STANDARDS: STATE STANDARDS: KEYWORDS: d 1 Easy p. 14 LO: 1-2 - Examine the historical foundations and evolution of business ethics. United States - BUSPROG: Ethics United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities Blooms: Knowledge 25. In the Reagan/Bush eras, the major focus of the business world was on a. self-regulation rather than regulation by government. b. decreasing the number of mergers. c. decreasing the multinational presence in the U.S. marketplace. d. increasing government influence on the economic arena. e. improving business ethics. ANSWER: POINTS: DIFFICULTY: REFERENCES: LEARNING OBJECTIVES: NATIONAL STANDARDS: STATE STANDARDS: KEYWORDS: a 1 Easy p. 12 LO: 1-2 - Examine the historical foundations and evolution of business ethics. United States - BUSPROG: Ethics United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities Blooms: Knowledge 26. The six principles of the Defense Industry Initiative on Business Ethics and Conduct became the foundation for a. Better Business Bureau ethical guidelines. b. the Federal Sentencing Guidelines for Organizations. c. the Ethical Trading Initiative. d. the Federal Trade Commission compliance requirements. e. the Sarbanes-Oxley Act. ANSWER: POINTS: DIFFICULTY: REFERENCES: LEARNING OBJECTIVES: NATIONAL STANDARDS: STATE STANDARDS: KEYWORDS: b 1 Moderate p. 12 LO: 1-2 - Examine the historical foundations and evolution of business ethics. United States - BUSPROG: Ethics United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities Blooms: Knowledge