Social Impact of Business MCQs

People’s ethical beliefs come from:

A. legislative action and judicial decisions.

B. reading the company’s profit and loss statements.

C. their religious background, family, and education.

D. the organization’s code of ethics.

Question 2 of 20

People everywhere depend on ethical systems to tell them whether their actions are:

A. legal or illegal.

B. right or wrong.

C. financially attainable or not.

D. logical and in sound judgment.

Question 3 of 20

Under the Sarbanes-Oxley Act, corporations are required to:

A. have their CEO and CFO sign off on financial statements as accurate and fair.

B. have their audit committee comprised of only executives employed by the firm.

C. collect reimbursements from the U.S. government if financial restatements occur.

D. All of the above

Question 4 of 20
Cross-cultural contradictions arise due to:

A. the emergence of a developing country’s economic power.

B. religious differences practiced by business executives.

C. differences between home and host countries’ ethical standards.

D. All of the above

Question 5 of 20
As business becomes increasingly global:

A. it must turn to national laws for guidance.

B. ethical issues become issues of free trade.

C. a global code of conduct will emerge for businesses.

D. cross-cultural contradictions will increase.

Question 6 of 20
Which of the following was NOT a moral value acknowledged by Aristotle?

A. Temperance

B. Charity

C. Justice

D. Prudence

Question 7 of 20
According to Clarence Walton, the key to ethical standards in business is:

A. personal character.

B. highly paid executives.

C. clear governmental directives.

D. an ethics professor on the board of directors.

Question 8 of 20

Business managers need a set of ethical guidelines to help them:

A. understand the changing customs throughout the world.

B. justify the resolution which best helps themselves.

C. identify and analyze the nature of ethical problems.

D. None of the above

Question 9 of 20

According to the utilitarian reasoning, if the benefits outweigh the costs, then the action is ethical because it produces:

A. the greatest good for the greatest number of people.

B. an equal amount of good for an equal number of people.

C. the greatest good for a select number of people.

D. an equal amount of good for the greatest number of people.

Question 10 of 20

A just or fair ethical decision occurs when:

A. the rights of all affected are considered.

B. the greatest good for those with power is achieved.

C. benefits and burdens are distributed equally.

D. All of the above

Question 11 of 20

Whistle-blowing occurs when:

A. a company president calls on employees in the organization to observe the firm’s code of ethics.

B. an employee goes public with a complaint after failing to convince the company to correct an alleged abuse.

C. a consumer group calls for a boycott of a firm’s product due to questionable advertisements.

D. an employee is found guilty of criminal wrongdoing by a government agency.

Question 12 of 20
The core components upon which a company’s ethical performance depends include:

A. the values and virtues of the managers.

B. the personal character of the managers and employees.

C. the traditions, attitudes, and business practices built into a company’s culture.

D. All of the above

Question 13 of 20
Which of the following is NOT one of the five core values developed by the Holt Company?

A. Efficiency

B. Dynamic

C. Success

D. Ethics

Question 14 of 20
If a manager approaches ethics with benevolence in mind, he or she would stress what?

A. Friendly relations with an employee

B. Company rules and procedures

C. Laws and professional codes

D. Economic efficiency

Question 15 of 20
The Kanebo Limited scandal is an example of a lapse in:

A. information technology ethics.

B. marketing ethics.

C. finance ethics.

D. accounting ethics.

Question 16 of 20
A giant step is taken toward improving ethical performance throughout the company when:

A. the firm hires a university ethics professor to lecture employees on moral philosophy.

B. the Justice Department launches an investigation of the firm’s pricing practices.

C. senior-level managers signal to employees that they believe ethics is a high priority.

D. a consumer hot line is created and staffed 24 hours a day.

Question 17 of 20
Which of the following statements is true?

A. In Japan, most codes were found to be a mixture of legal compliance and statements of mission.

B. The rationale underlying corporate codes of ethics are the same from country to country.

C. The values and mission codes are least popular with European and Canadian companies.

D. Codes of ethics in Latin America primarily focus on guidelines for accepting or refusing gifts.

Question 18 of 20
The Institute for Corporate Ethics was created to:

A. guide managers when an ethical dilemma arises.

B. provide assistance for developing ethics policies for organizations.

C. develop and conduct training programs for senior managers.

D. oversee ethics audits.

Question 19 of 20
The critical component in installing an effective ethics program is:

A. to allow all employees the freedom to act as they wish.

B. in hiring an expensive ethics consultant.

C. the integration of various ethics safeguards into a comprehensive program.

D. maintaining the position as the industry sales leader.

Question 20 of 20
One of the most widespread and potentially powerful efforts to combat bribery was initiated by:

A. the Global Forum on Fighting Corruption.

B. the Organization for Economic Cooperation and Development.

C. International Labour Organization.

D. the U.S. Foreign Corrupt Policy Act.