1|Page
MGMT 643 Exam 1 (Hailey) Questions and 100%
Correct Answers UPDATED!!!
ethics - ANSWER the study of what constitutes right or wrong
behavior. it is a branch of philosophy focusing on morality and
the way moral principles are derived and implemented. has to
do with the fairness, justness, rightness or wrongness of an
action
business ethics - ANSWER what constitutes right and wrong
behavior in the world of business and how moral and ethical
principles are applied by business people to situations that arise
in their daily work lives
corporations should evaluate each decision on the basis of... -
ANSWER 1. the legal implications
2. the public relations impact
3. the safety risks for consumers and employees
4. the financial implications
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attitude of top management - ANSWER one of the most
important ways to create and maintain an ethical workplace is
for top management to demonstrate their commitment to
ethical decision making
behavior of owners and managers - ANSWER certain types of
behavior on the part of managers and owners can contribute to
unethical behavior among employees. ex: setting unrealistic
production or sales goals
fiducairy - ANSWER heart of agency law
a person having a duty created by his or her undertaking to act
primarily for anothers benefit in matters connected with the
undertaking
fiduciary relationship - ANSWER means that the relationship
involves trust and confidence
agent - ANSWER a person who agrees to act on behalf of or
represent another
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principal - ANSWER the person whom the agent represents or
acts on behalf of
independent contractor - ANSWER a person who contracts with
another to do something for him/her but who is not controlled
by the other nor subject to the other's right to control with
respect to his/her physical conduct in the performance of the
undertaking. he/she may or may not be an agent
"works for hire" - ANSWER if a person creates a copyrighted
work, the general rule is it is owned by the copyright holder,
unless it is a work for hire. so if an employer has an employee
create a sculpture (or any copyrighted work), then the employer
owns the copyright.
agency by agreement - ANSWER may be an expressed (written
or orally) or implied agreement (implied from conduct/way the
principal and agent act)
agency by ratification - ANSWER principal accepts agents
actions without a true agreement
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agency by estoppel - ANSWER 1. the PRINCIPAL'S action creates
the appearance of an agency that does not actually exist
2. a third person reasonably believed that the agency existed
agency by operation of law - ANSWER usually when there is an
emergency situation and when there is no power of attorney
equal dignity rule - ANSWER if the contract being executed is or
must be in writing, then the agent's authority must be in writing
also
exceptions:
1. executive officer in a corporation when acting for the
corporation in an ordinary business situation
2. when the agent acts in the principals presence
3. when the agent's act of signing is merely perfunctory (carried
out with a minimum of effort or reflection)
power of attorney - ANSWER gives express authority to the
agent and is written and is usually notarized
MGMT 643 Exam 1 (Hailey) Questions and 100%
Correct Answers UPDATED!!!
ethics - ANSWER the study of what constitutes right or wrong
behavior. it is a branch of philosophy focusing on morality and
the way moral principles are derived and implemented. has to
do with the fairness, justness, rightness or wrongness of an
action
business ethics - ANSWER what constitutes right and wrong
behavior in the world of business and how moral and ethical
principles are applied by business people to situations that arise
in their daily work lives
corporations should evaluate each decision on the basis of... -
ANSWER 1. the legal implications
2. the public relations impact
3. the safety risks for consumers and employees
4. the financial implications
,2|Page
attitude of top management - ANSWER one of the most
important ways to create and maintain an ethical workplace is
for top management to demonstrate their commitment to
ethical decision making
behavior of owners and managers - ANSWER certain types of
behavior on the part of managers and owners can contribute to
unethical behavior among employees. ex: setting unrealistic
production or sales goals
fiducairy - ANSWER heart of agency law
a person having a duty created by his or her undertaking to act
primarily for anothers benefit in matters connected with the
undertaking
fiduciary relationship - ANSWER means that the relationship
involves trust and confidence
agent - ANSWER a person who agrees to act on behalf of or
represent another
,3|Page
principal - ANSWER the person whom the agent represents or
acts on behalf of
independent contractor - ANSWER a person who contracts with
another to do something for him/her but who is not controlled
by the other nor subject to the other's right to control with
respect to his/her physical conduct in the performance of the
undertaking. he/she may or may not be an agent
"works for hire" - ANSWER if a person creates a copyrighted
work, the general rule is it is owned by the copyright holder,
unless it is a work for hire. so if an employer has an employee
create a sculpture (or any copyrighted work), then the employer
owns the copyright.
agency by agreement - ANSWER may be an expressed (written
or orally) or implied agreement (implied from conduct/way the
principal and agent act)
agency by ratification - ANSWER principal accepts agents
actions without a true agreement
, 4|Page
agency by estoppel - ANSWER 1. the PRINCIPAL'S action creates
the appearance of an agency that does not actually exist
2. a third person reasonably believed that the agency existed
agency by operation of law - ANSWER usually when there is an
emergency situation and when there is no power of attorney
equal dignity rule - ANSWER if the contract being executed is or
must be in writing, then the agent's authority must be in writing
also
exceptions:
1. executive officer in a corporation when acting for the
corporation in an ordinary business situation
2. when the agent acts in the principals presence
3. when the agent's act of signing is merely perfunctory (carried
out with a minimum of effort or reflection)
power of attorney - ANSWER gives express authority to the
agent and is written and is usually notarized
