Q1) A code of business ethics is:
sorely needed in light of a new wave of ethical issues including product safety, employee health, and sexual harassment
concerned with what responsibilities the firm has to employees, consumers, environmentalists, minorities, communities, and other groups
a report that reveals how the firm's operations impact the natural environment
a set of strict regulations requiring firms to conserve energy
a series of voluntary standards in the environmental field
Q2) Simply having a code of ethics:
will ensure ethical business behavior
eliminates the need for periodic ethics workshops
is all that is necessary to sensitize people to workplace circumstances in which ethics issues may arise
is insufficient to guarantee that employees behave in an ethical manner
secures an ethics culture in the workplace
Q3) Which of the following is NOT a way that companies can help create an ethical culture in their organization?
outlining ethical expectations
giving examples of ethical situations that commonly occur in their businesses
providing code-of-conduct manuals
creating interactive exercises that pose hypothetical ethical dilemmas
discouraging whistle-blowing
Q4) ________ refers to policies that require employees to report any unethical violations they discover or see in the firm.
whistle-blowing
bribery
adultery
sustainability
stewardship
Q5) Responsibility for encouraging ethical decision making and ensuring ethical behavior in a firm lies with:
only a firm's strategists
only a firm's managers
only a firm's shareholders
both a firm's strategists and its managers
neither a firm's strategists nor its managers
Q6) More and more firms believe that ethics training and an ethics culture:
are socially irresponsible
are admirable but damage a firm's competitive positioning
are costly and provide no practical benefit to the company
create strategic advantage
can tarnish the reputation of a firm
Q7) Ethics training programs should contain which of the following?
messages from the CEO or business owner emphasizing ethical business practices
the development and discussion of codes of ethics
rocedures for discussing unethical behavior
procedures for reporting unethical behavior
all of the above
Q8) Firms can align ethical and strategic decision making by:
omitting ethical considerations from long-term planning
excluding ethical decision making from the performance appraisal process
discouraging whistle-blowing
monitoring departmental and corporate performance regarding ethical issues
all of the above
Q9) Bribery involves:
bestowing a gift to influence the recipient's conduct
requiring employees to report any unethical violations they discover or see in the firm
prohibiting love affairs between bosses and their subordinates
encouraging firms to play a role in curing society of its ills
forcing companies to take responsibility for the impact their actions have on society
Q10) The U.S. Foreign Corrupt Practices Act and a new provision in the Dodd-Frank financial regulation-law allows company employees who bring cases of financial fraud, such as bribery, to the government's attention to receive ________ percent of any sum recovered.
less than 10
exactly 20
up to 30
about 40
at least 50
Q11) The United Kingdom's new bribery law:
is less stringent than the similar U.S. FCPA
carries a minimum 10-year prison sentence for those convicted of bribery
allows foreign companies doing business in the UK to bribe officials if that is their national convention
stipulates that failure to prevent bribery is an offense
all of the above
Q12) According to a recent Wall Street Journal article, ________ percent of all firms sampled had no restrictions on boss-subordinate love affairs at work.
5
13
24
39
80
Q13) According to the text, the first social responsibility of any business is to:
make enough profit to cover the costs of the future, because if this is not achieved then no other social responsibility can be met
avoid laying off employees so as to protect the employees' livelihood, even if that decision may force the firm to liquidate
engage in social activities that have no economic benefits, to avoid the appearance of a public relations gimmick
offer courses and training in environmental management
none of the above
Q14) Social policy can best be defined as:
The responsibilities a firm has to employees, consumers, environmentalists, minorities, communities, shareholders, and other groups.
A document providing behavioral guidelines that cover daily activities and decisions within a firm.
An SEC mandate to report any unethical behavior.
The legal requirement to reveal how a firm's operations impact the natural environment.
Mandatory technical standards that result in an environmental management system.
Q15) Which of the following was among the most admired companies for social responsibility in 2012 according to Fortune magazine?
GDF Suez
China Railway Group
China Railway Construction
China State Construction Engineering
Kirin Holdings
Q16) ________ was socially responsible in the wake of the earthquake and tsunami that devastated Japan in 2011; it also was able to get supplies to people who needed them following Hurricane Katrina.
China Railway Group
GDF Suez
Walmart
RWE
Marquard & Bahls
Q17) Firms should strive to engage in social activities that:
have economic benefits
have no economic benefits
are detrimental to economic growth
drain financial resources
garner goodwill only, not profits
Q18) The U.S. government's OPIC
offers insurance to offset some risks of doing business internationally
provides insurance to eliminate all of the risks of doing business internationally
gives informational seminars about the risks associated with doing business internationally
requires that paperwork be filed by U.S. companies desiring to do business internationally
discourages foreign companies from doing business in the United States
Q19) All of the following are potential advantages to initiating, continuing, and/or expanding international operations EXCEPT:
firms can gain new customers for their products
foreign operations can absorb excess capacity, reduce unit costs, and spread economic risks over a wider number of markets
foreign operations can allow firms to establish low-cost production facilities in locations close to raw materials and/or cheap labor
foreign operations could be seized by nationalistic factions
foreign operations may result in reduced tariffs, lower taxes, and favorable political treatment
Q20) Which of the following is a potential advantage of conducting international operations?
competitors in foreign markets may not exist, or competition may be less intense than in domestic markets
dealing with two or more monetary systems can complicate international business operations
differing language, culture, and value systems can make communication difficult
gaining an understanding of regional organizations is difficult but is often required in doing business internationally
all of the above
Q21) ________ can enable firms to learn the technology, culture, and business practices of other people and to make contacts with potential customers, suppliers, creditors, and distributors in foreign countries.
economies of scale
joint ventures
low-cost production facilities
reduced tariffs
domestic operations
Q22) A firm's power and prestige in domestic markets may be significantly enhanced if the firm competes globally:
which can translate into improved negotiating power among important groups
though this rarely results in a practical advantage
but this can hurt its bargaining power with suppliers and distributors
yet this does nothing to improve its position with creditors
which can alienate the firm from its domestic creditors, suppliers, and distributors
Q23) All of the following are potential disadvantages to initiating, continuing, or expanding business across national borders EXCEPT:
Firms confront different social, cultural, and political forces when doing business internationally, which can make communication in the firm difficult.
Keeping informed about the number and nature of competitors is more difficult when doing business internationally.
Foreign operations can absorb excess capacity, reduce unit costs, and spread economic risks over a wider number of markets.
Dealing with two or more monetary systems can complicate international business operations.
Foreign operations could be seized by nationalistic forces.e.
Q24) Strengths of competitors in foreign lands are often ________, and weaknesses are often ________.
overestimated; overestimated
overestimated; underestimated
underestimated; underestimated
underestimated; overestimated
none of the above
Q25) In 2012, ________ African countries held democratic elections.
3
13
23
31
43
