OpenStax Business Ethics Test Bank
Chapter 7: What Employees Owe Employers
Chapter 7: What Employees Owe Employers
* = Correct answer
Multiple Choice/Fill in the Blank
1. When an employee has extensive authority or access to confidential information, a legal duty
(under law or regulation) that rises to a highest level and is owed by that employee to the
employer or clients is which of the following?
A. duty of confidentiality
B. fiduciary duty*
C. legal duty
D. duty of loyalty
Difficulty: Moderate
Blooms: Analyze
AACSB: Analytical
2. According to PayScale’s Compensation Best Practices Report, which are the two leading
motivators (in order by first and second leading motivator) that employees give for leaving
their job?
A. first: personal reasons; second: higher pay
B. first: higher pay; second: personal reasons*
C. first: a retirement plan; second: benefits
D. first: benefits; second: a retirement plan
Difficulty: Easy
Blooms: Remember
AACSB: Interpersonal
3. Which generation is most likely to change jobs four times within the first ten years of their
career?
A. Gen Z
B. millennials*
C. baby boomers
D. Gen X
Difficulty: Easy
Blooms: Remember
AACSB: Interpersonal
4. In the new “gig” economy, people who work for themselves are known as which of the
following?
A. freelance workers*
B. employees
C. subordinates
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, OpenStax Business Ethics Test Bank
Chapter 7: What Employees Owe Employers
D. at-will employees
Difficulty: Easy
Blooms: Remember
AACSB: Understand
5. Employers are well within their rights to have policies indicating employees are expected to
honor and maintain the secrecy of proprietary material. What is this known as?
A. common law of agency
B. duty of private information
C. duty of loyalty
D. duty of confidentiality*
Difficulty: Moderate
Blooms: Evaluate
AACSB: Reflection
6. Nondisclosure agreements most often used for which of the following reasons?
A. to protect the company’s intellectual property
B. to protect against the theft of trade secrets*
C. to protect HR information
D. to protect employees as well as employers
Difficulty: Difficult
Blooms: Evaluate
AACSB: Analytical
7. If an employee signs a contract agreeing that for a period of time (typically one or two years
after the employee no longer works for the company), the employee will not engage in the
same or similar activities within a particular distance from the company, the employee has
signed a ________.
A. non-compete clause*
B. nondisclosure clause
C. nonsolicitation clause
D. confidentiality clause
Difficulty: Moderate
Blooms: Understand
AACSB: Reflection
8. Which of the following is one of the most important ways to build company value, sell
products and services, and expand corporate goodwill?
A. logos
B. branding*
C. internal marketing
D. taglines
Page 2 of 12
Chapter 7: What Employees Owe Employers
Chapter 7: What Employees Owe Employers
* = Correct answer
Multiple Choice/Fill in the Blank
1. When an employee has extensive authority or access to confidential information, a legal duty
(under law or regulation) that rises to a highest level and is owed by that employee to the
employer or clients is which of the following?
A. duty of confidentiality
B. fiduciary duty*
C. legal duty
D. duty of loyalty
Difficulty: Moderate
Blooms: Analyze
AACSB: Analytical
2. According to PayScale’s Compensation Best Practices Report, which are the two leading
motivators (in order by first and second leading motivator) that employees give for leaving
their job?
A. first: personal reasons; second: higher pay
B. first: higher pay; second: personal reasons*
C. first: a retirement plan; second: benefits
D. first: benefits; second: a retirement plan
Difficulty: Easy
Blooms: Remember
AACSB: Interpersonal
3. Which generation is most likely to change jobs four times within the first ten years of their
career?
A. Gen Z
B. millennials*
C. baby boomers
D. Gen X
Difficulty: Easy
Blooms: Remember
AACSB: Interpersonal
4. In the new “gig” economy, people who work for themselves are known as which of the
following?
A. freelance workers*
B. employees
C. subordinates
Page 1 of 12
, OpenStax Business Ethics Test Bank
Chapter 7: What Employees Owe Employers
D. at-will employees
Difficulty: Easy
Blooms: Remember
AACSB: Understand
5. Employers are well within their rights to have policies indicating employees are expected to
honor and maintain the secrecy of proprietary material. What is this known as?
A. common law of agency
B. duty of private information
C. duty of loyalty
D. duty of confidentiality*
Difficulty: Moderate
Blooms: Evaluate
AACSB: Reflection
6. Nondisclosure agreements most often used for which of the following reasons?
A. to protect the company’s intellectual property
B. to protect against the theft of trade secrets*
C. to protect HR information
D. to protect employees as well as employers
Difficulty: Difficult
Blooms: Evaluate
AACSB: Analytical
7. If an employee signs a contract agreeing that for a period of time (typically one or two years
after the employee no longer works for the company), the employee will not engage in the
same or similar activities within a particular distance from the company, the employee has
signed a ________.
A. non-compete clause*
B. nondisclosure clause
C. nonsolicitation clause
D. confidentiality clause
Difficulty: Moderate
Blooms: Understand
AACSB: Reflection
8. Which of the following is one of the most important ways to build company value, sell
products and services, and expand corporate goodwill?
A. logos
B. branding*
C. internal marketing
D. taglines
Page 2 of 12
