BMAL 590 BUSINESS ETHICS EXAM
REVIEW QUESTIONS WITH CORRECT
ANSWERS
Which of the following statements is false regarding strong ethical leaders? - Answer-
Strong ethical leaders are reactive
An unconscious reference to one's own cultural values, experiences, and knowledge is
referred to as the - Answer-Self-reference criterion
Cultural differences in ________ may result in international ethical issues if a
businessperson stands far away from a customer during a negotiations and customer
regards it as a personal insult - Answer-Body language
The defense of paying bribes and other questionable practices in other countries is
called - Answer-Cultural relativism
Which of the following created an international ethics code? - Answer-Caux Round
Table
Which of the following is not a criticism of or charge against multinational corporations?
- Answer-They pay high taxes everywhere
Discrimination in international business - Answer-Is often justified on the basis of local
cultural norms and values
Gouging is - Answer-A price increase that exceeds the costs of additional expenditures,
such as transportation and taxes
All of the following are listed as steps that companies can take to address discrimination
issues except - Answer-List all possible discrimination acts in the policy
Which of the following prohibits U.S. companies from offering or providing payments to
officials of foreign governments for the purpose of obtaining or retaining business
abroad? - Answer-Foreign Corrupt Practices Act
Traditionally safe and adequately tested products may still harm consumers and thus
create ethical issues because - Answer-Of illiteracy, unsanitary conditions, or cultural
values
, _________ means using or transferring illegally received funds in a financial transaction
to conceal their source or ownership or to facilitate an illegal activity - Answer-Money
laundering
Which of the following has the power to enact legally binding ground rules for
international commerce and trade policy? - Answer-World Trade Organization
The primary responsibility of ensuring that ethical, legal, and social standards are
adhered to within a business rests with - Answer-The management board
How can a company align the interests of its owner with those of its managers through
executive compensation? - Answer-By basing compensation on performance and
achievements of goals
The agency problem, wherein ownership and control of a corporation are separate, is
associated with - Answer-The shareholder model of corporate governance
Which of the following are typically not secondary stakeholders? - Answer-Customers
Assessment of corporate culture will help with all of the following except - Answer-
Determining the line of business
Those who have a claim on some aspects of a firm's products, operations, markets,
industry, or outcomes are known as - Answer-Stakeholders
A stakeholder orientation is not complete unless it includes - Answer-Activities that
actually address stakeholder issues
Which of the following are not one of the four hierarchical levels of social responsibility?
- Answer-Communal
The reputation of a company as a good corporate citizen is influenced by - Answer-The
attitude and behavior of the company toward the community of which the company is
part
Fiduciaries are persons in positions of ________ who use ________ and _________ in
acting on behalf of the best interests of the ________ - Answer-Trust; due care; loyalty;
organization
The three main components of corporate governance are - Answer-Accountability,
oversight, and control
Fostering ethical decision making within an organization requires improving the firm's
ethical standards and - Answer-Terminating unethical persons
REVIEW QUESTIONS WITH CORRECT
ANSWERS
Which of the following statements is false regarding strong ethical leaders? - Answer-
Strong ethical leaders are reactive
An unconscious reference to one's own cultural values, experiences, and knowledge is
referred to as the - Answer-Self-reference criterion
Cultural differences in ________ may result in international ethical issues if a
businessperson stands far away from a customer during a negotiations and customer
regards it as a personal insult - Answer-Body language
The defense of paying bribes and other questionable practices in other countries is
called - Answer-Cultural relativism
Which of the following created an international ethics code? - Answer-Caux Round
Table
Which of the following is not a criticism of or charge against multinational corporations?
- Answer-They pay high taxes everywhere
Discrimination in international business - Answer-Is often justified on the basis of local
cultural norms and values
Gouging is - Answer-A price increase that exceeds the costs of additional expenditures,
such as transportation and taxes
All of the following are listed as steps that companies can take to address discrimination
issues except - Answer-List all possible discrimination acts in the policy
Which of the following prohibits U.S. companies from offering or providing payments to
officials of foreign governments for the purpose of obtaining or retaining business
abroad? - Answer-Foreign Corrupt Practices Act
Traditionally safe and adequately tested products may still harm consumers and thus
create ethical issues because - Answer-Of illiteracy, unsanitary conditions, or cultural
values
, _________ means using or transferring illegally received funds in a financial transaction
to conceal their source or ownership or to facilitate an illegal activity - Answer-Money
laundering
Which of the following has the power to enact legally binding ground rules for
international commerce and trade policy? - Answer-World Trade Organization
The primary responsibility of ensuring that ethical, legal, and social standards are
adhered to within a business rests with - Answer-The management board
How can a company align the interests of its owner with those of its managers through
executive compensation? - Answer-By basing compensation on performance and
achievements of goals
The agency problem, wherein ownership and control of a corporation are separate, is
associated with - Answer-The shareholder model of corporate governance
Which of the following are typically not secondary stakeholders? - Answer-Customers
Assessment of corporate culture will help with all of the following except - Answer-
Determining the line of business
Those who have a claim on some aspects of a firm's products, operations, markets,
industry, or outcomes are known as - Answer-Stakeholders
A stakeholder orientation is not complete unless it includes - Answer-Activities that
actually address stakeholder issues
Which of the following are not one of the four hierarchical levels of social responsibility?
- Answer-Communal
The reputation of a company as a good corporate citizen is influenced by - Answer-The
attitude and behavior of the company toward the community of which the company is
part
Fiduciaries are persons in positions of ________ who use ________ and _________ in
acting on behalf of the best interests of the ________ - Answer-Trust; due care; loyalty;
organization
The three main components of corporate governance are - Answer-Accountability,
oversight, and control
Fostering ethical decision making within an organization requires improving the firm's
ethical standards and - Answer-Terminating unethical persons
