Business Ethics 2

Which of the following acts exempted the insurance industry from antitrust legislation?

McCarran-Ferguson Act of 1944

The Dodd-Frank Act established which of the following as an independent agency within the Federal Reserve System?

Consumer Financial Protection Bureau

Donation of computer equipment to schools by Toshiba would be associated with which type of responsibility?

Voluntary

Which law not only prohibits specific actions in business such as fraud, theft, or securities trading violations, but also imposes fines or imprisonment as punishment for breaking the law?

Criminal

Mandated boundaries of conduct are imposed by which of the following?

Laws, rules, regulations, and other requirements

Cause-related marketing is the synergistic and mutually beneficial use of an organization's core competencies and resources to deal with key stakeholders so as to bring about organizational and societal benefits.

False

How do violations of the law usually begin?

When businesspeople stretch the limits of ethical standards

If consumers are sympathetic to the cause and the brand and cause are seen as a good fit, cause-related marketing can affect consumer _.

buying patterns

Which of the following is an example of special legal protections for groups of people with specific vulnerabilities?

Children's Online Privacy Protection Act

Anticompetitive strategies that focus on weakening or destroying a competitor have spurred which of the following?

Antitrust legislation

Which of the following is an independent agency within the Federal Reserve System that "regulate[s] the offering and provision of consumer financial products or services under the Federal consumer financial laws"?

Consumer Financial Protection Bureau

What does the Occupational Safety and Health Administration (OSHA) enforce?

The Occupational Safety and Health Act

A major purpose of the Federal Sentencing Guidelines for Organizations, the Sarbanes-Oxley Act, and the Dodd-Frank Act is to _.

encourage ethical conduct

By prohibiting accounting firms from providing both auditing and consulting services to the same corporate clients without permission, the Sarbanes-Oxley Act is attempting to eliminate _.

conflicts of interest

Which of the following protects consumers against unfair, deceptive, or fraudulent practices?

Bureau of Consumer Protection

The primary method for resolving conflicts and serious business disputes is through the use of self-regulation.

False

Passed by Congress in 1991, which of the following created incentives for organizations to develop and implement ethical compliance programs?

Federal Sentencing Guidelines for Organizations

Laws and regulations change over time; however, in the United States the thrust of most business legislation can be summed by which of the following statements?

Any practice is permitted that does not substantially reduce competition and harm consumers or society.

Which of the following acts, passed in response to public outrage over conditions described in Upton Sinclair's The Jungle, was the first consumer protection legislation?

Pure Food and Drug Act of 1906

Which of the following laws instituted a whistle-blower bounty program in which whistle-blowers are eligible to receive 10 to 30 percent of fines if their reports result in convictions of more than $1 million in penalties?

The Dodd-Frank Act

Which of the following provide incentives for developing core practices within a firm that could help ensure ethical and legal compliance?

Federal Sentencing Guidelines for Organizations and Sarbanes-Oxley Act

Which of the following was created by the Sarbanes-Oxley Act to oversee the accounting firms that audit public corporations and to establish rules and standards for auditing?

Public Company Accounting Oversight Board

Which of the following is a leading self-regulatory body that provides directions for managing customer disputes and reviews advertising cases?

Better Business Bureau

Which of the following is a provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act?

Creation of a bureau to educate consumers in financial literacy

Sarbanes-Oxley is considered to be the most sweeping financial overhaul of the regulatory system since the Great Depression.

False

One of the steps the U.S. Sentencing Commission delineated that companies must implement to demonstrate due diligence is that a firm must develop and disseminate a code of conduct that communicates required standards and identifies key risk areas for the organization.

True

The Sarbanes-Oxley (SOX) Act raised a number of concerns. Critics of the legislation believe SOX is _.

complex and imposes additional costs on executives

Which of the following has contributed to the progression of the institutionalization of business ethics in recent decades?

Legislation has attempted to develop and enforce ethical practices.

The rights and duties of individuals and organizations (including businesses) are defined by _ law.

civil

What is a primary reason why some small businesses resist the opening of large chain retailers like Walmart or Home Depot?

Because their large size creates economies of scale that allow them to put smaller firms out of business

Title VII of the Civil Rights Act of 1964 _.

prohibits discrimination on the basis of race, color, sex, religion, or national origin

Which of the following refers to when an organization's product(s) is tied directly to a social concern through a marketing program?

Cause-related marketing

The desire to find a solution to a social problem rather than to simply earn profits is a characteristic of which of the following?

Social entrepreneurs

An ethical organizational culture creates an environment to structure behavior that is then evaluated by stakeholders. A key element of an organizational culture that refers to the visible, tangible external symbols of values and norms is known as an organization's _.

artifacts

Which of the following acts can be classified as procompetitive legislation?

Sherman Antitrust Act of 1890

Which of the following was called "a sweeping overhaul of the financial regulatory system…on a scale not seen since the reforms that followed the Great Depression"?

Dodd-Frank Wall Street Reform and Consumer Protection Act

Regulation of tobacco, dietary supplements, vaccines, veterinary drugs, medical devices, cosmetics, products that give off radiation, and biological products is the responsibility of which of the following?

The Food and Drug Administration

The primary method of resolving conflicts and serious business ethics disputes is through _.

civil lawsuits

The primary objective of U.S. antitrust laws is to _.

distinguish competitive strategies that enhance consumer welfare from those that reduce it

The most common way businesses demonstrate their voluntary responsibilities is through _.

donations to local and national charitable organizations

Which action will most likely be found in violation of procompetitive legislation?

Establishment of monopolies

Externally imposed boundaries of conduct, such as laws, rules, regulations, and other requirements, are known as _.

mandated boundaries

Developing structurally sound organizational practices and integrity for financial and nonfinancial performance measures, rather than concentrating on an individual's morals, is the focus of which of the following?

Core practices

The synergistic and mutually beneficial use of an organization's core competencies and resources to deal with key stakeholders so as to bring about organizational and societal benefits is known as _.

strategic philanthropy

Which of the following is one of the seven steps that the U.S. Sentencing Commission requires for an effective compliance program?

Provide oversight by high-ranking personnel

The embedding of values, norms, and artifacts in organizations, industries, and society is referred to as _.

institutionalization

Those who must trust and be trusted to make business work properly are known as _.

gatekeepers

Which of the following is a provision of the Sarbanes-Oxley Act?

Requires greater transparency in financial reporting

Documented best practices that are not enforced but carry consequences for misconduct that results from ignoring them are known as _.

core practices

In 2005, the Supreme Court ruled that the federal sentencing guidelines were not mandatory but should serve only as recommendations judges should use in their decisions.

True

When an employee sorts through a competing business's trash to see if there are any documents that could reveal secret information, this is an example of a misuse of which of the following?

Corporate intelligence

When someone looks over an employee's shoulder while the employee types a password, they are engaging in a behavior known as _.

shoulder surfing

Which of the following types of misconduct involves a corporation's financial reports, in which companies provide important information on which investors and others base decisions involving millions of dollars?

Accounting fraud

Which of the following refers to the process of dishonestly creating, distributing, promoting, and pricing products?

Marketing fraud

Twenty-seven states have introduced the Healthy Workplace Bill to consider ways to combat which of the following?

Bullying

The offering of something of value in order to gain an illicit advantage is known as _.

bribery

Conflicts of interest arise when an individual must choose between which of the following?

To advance their own personal interests, those of the organization, or those of some other group

Which of the following is one of the three criteria that must be met to constitute a hostile work environment?

The conduct was unwelcome

A secret agreement between two or more parties for a fraudulent, illegal, or deceitful purpose is known as _.

collusion

Which type of fraudulent activity involves an employee who assists a consumer in committing the fraud?

Collusion

What is the first step toward understanding business ethics?

Develop ethical issue awareness.

A salesperson told a client who was not an IT expert that the new software systems were much better than the client's existing ones. To be convincing, the salesperson used a great deal of technical jargon that the client did not really understand. The salesperson did this intentionally to confuse the client. This example illustrates which of the following concepts?

Noise

War metaphors are common in business. Why can this kind of mindset be dangerous for business leaders?

Because it may foster the idea that anything is acceptable in business

Which of the following statements best describes affirmative action programs?

Affirmative action programs involve efforts to recruit, hire, train, and promote qualified individuals from groups that have traditionally been discriminated against on the basis of race, gender, or other characteristics.

An interchange of giving and receiving in social relationships is known as _.

reciprocity

Which of the following best describes a dual relationship?

A personal, loving, and/or sexual relationship with someone with whom you share professional responsibilities

A company can be sued for discrimination if it does which of the following?

Discharges a minority individual, but has a just cause for doing so

Which of the following are used to obtain or retain business and are not generally considered illegal in the United States?

Facilitation payments

An activity is probably ethical if which of the following is true?

It is approved of by most members of an organization and is customary in the industry.

Insider trading can be defined as which of the following?

The buying or selling of stocks by insiders who possess information that is not yet public

Which type of fraud involves intentional deception on the part of an individual or group in order to derive an unfair economic advantage over an organization?

Consumer

Which of the following is a question you need to ask when you suspect that workplace bullying has occurred?

Is your supervisor requiring impossible things from you without training?

An ethical issue is defined as a problem, situation, or opportunity that _.

requires an individual, group, or organization to choose among several actions that must be evaluated as right or wrong, ethical or unethical

Accountants must abide by a strict code of ethics that defines their responsibilities to which of the following?

Both their clients and the public interest

Any purposeful communication that deceives, manipulates, or conceals facts in order to create a false impression is known as which of the following?

Fraud

The process of handling a high-impact event characterized by ambiguity and the need for swift action to assess and respond to potential damage is known as which of the following?

Crisis management

Which of the following is the most common ethical problem for employees?

Abusive or intimidating behavior

Optimization is defined as which of the following?

A trade-off between equity and efficiency

The Age Discrimination in Employment Act specifically outlaws hiring practices that discriminate against people who are _.

aged 40 and older

When does the ethical decision-making process begin?

When stakeholders trigger ethical issue awareness and individuals openly discuss it with others

Which of the following methods of corporate espionage involves tricking individuals into revealing their passwords or other valuable corporate information?

Social engineering

Which of the following is an important element of virtue and is defined as being whole, sound, and in an unimpaired condition?

Integrity

Issues related to fairness and honesty may arise because business is often regarded as which of the following?

A game governed by its own rules rather than those of society

Which of the following statements regarding abusive and intimidating behavior is true?

Not everyone agrees on what constitutes abusive behavior.

If a message has a tendency to mislead, confuse, or deceive the public, it is considered _.

an implied falsity

Which of the following requires an individual to choose among several actions that have negative outcomes?

An ethical dilemma

Which of the following types of misconduct is personal in nature but is generally committed in the belief that the action is furthering organization goals?

Lying to employees

In the past, bond ratings agencies were paid by the organizations that they rated, so organizations would shop around for the agency that gave them the best rating. This led to the agencies being accused of having which of the following?

Conflicts of interest

Which type of fraudulent activity could involve a consumer staging an accident in order to seek damages?

Duplicity

Creating a perception or belief by words that intentionally deceives someone is related to which of the following?

Lying by commission