MAN3065 Final exam practice test
The first step toward understanding business ethics is to Correct Answer: develop ethical-issue
awareness.
The originator of the idea of the invisible hand, which is a fundamental concept in free market
capitalism, was Correct Answer: Adam Smith.
Through _______________, it is possible to quantify the trade-offs to determine whether to accept or
reject environmentally-related activities and programs. Correct Answer: risk management
Which of the following acts exempted the insurance industry from antitrust legislation? Correct Answer:
McCarran-Ferguson Act of 1944
Fostering ethical decision making within an organization requires improving the firm's ethical standards
and Correct Answer: terminating the "bad apples" in the organization.
Which of the following is not associated with the stakeholder interaction model? Correct Answer:
Identifies the mass media, special interest groups, competitors, and trade associations as primary
stakeholders
_____ allows for private ownership of property and features a large government equipped to offer such
services as education and health care to its citizens Correct Answer: Social democracy.
These leaders are passionate about the company, live out corporate values daily in their behavior in the
workplace, and form long-term relationships with employees and other stakeholders. Correct Answer:
Transactional
When we discuss _____ approaches, we are talking about how organizational decision makers should
approach an issue. Correct Answer: Normative
Retaliation against employees that report misconduct is a problem in _____ cultures. Correct Answer:
weak ethical
Which is not considered a white collar crime? Correct Answer: Mugging someone
Critics of nuclear power are concerned about all of the following, except: Correct Answer: Reduced
emissions
The four categories of communication include all of the following except Correct Answer: Reporting
Mr. Smith told his client, Mr. Jabar, who was not an IT expert, that the new software systems were much
better than his existing ones. To convince Mr. Jabar, Mr. Smith used a great deal of technical jargon that
his client did not really understand. Mr. Smith did this intentionally to confuse Mr. Jabar. This is an
example of Correct Answer: noise.
,Affirmative action programs Correct Answer: involve the recruitment, hiring, promotion, and training of
qualified individuals.
The relationship between business ethics and age Correct Answer: is complex, although experience
helps older employees make ethical decisions
Following the ethical directives of a superior relates to Correct Answer: obedience to authority
Ethics is a part of decision making Correct Answer: at all levels of work and management.
The process of verifying the results of an audit should involve standard procedures that control the
_____ of the information. Correct Answer: reliability and validity
When in Rome, do as the Romans do, or you must adapt to the cultural practices of the country in which
you are operating are rationalizations business people sometimes offer for straying from their own
ethical values when doing business abroad. This practice is called Correct Answer: cultural relativism
_____ occurs when one or more group members feel pressured to conform to the group's decision even
if they personally disagree Correct Answer: Groupthink
Which of the following statements about multinational corporations (MNCs) is false? Correct Answer:
MNCs are inherently unethical and always do harm in the countries in which they operate.
A _____-based culture encourages employees to express concerns, bring up ethical issues, and take a
proactive approach toward resolving conflicts. Correct Answer: Values
_____ involves tricking individuals into revealing their passwords or other valuable corporate
information. Correct Answer: Social engineering
All of the following are true regarding institutions except Correct Answer: There is no clear link between
institutional theory and the stakeholder orientation of management.
The _____ was/were enacted to restore confidence in financial reporting and business ethics after the
accounting scandals of the early 2000s. Correct Answer: Sarbanes-Oxley Act
The _______________ focuses on reducing pollution through cost-effective changes in production,
operation, and raw materials use. Correct Answer: Pollution Prevention Act
Which of the following is not a benefit to businesses of engaging in voluntary responsibilities? Correct
Answer: Improve employee compensation and retention
_____ is based upon the assumption that people are predictable and will maximize the utility of their
choices relative to their needs and wants. Correct Answer: Rational economics
This occurs when leaders and followers share the same vision, ethical expectations, and objectives for
the company. Correct Answer: Leader-follower congruence
, No formal dress codes, working late, participation in extracurricular activities, gestures, and legends
represent Correct Answer: informal expressions of an organization's culture.
Although limiting urban sprawl creates disadvantages for ____________, many businesses can benefit
from urban renewal movements that reduce sprawl. Correct Answer: car and oil companies
Through time an act can come to be viewed as unethical under which of the following philosophies and
perspectives? Correct Answer: The relativist perspective
___ law defines the rights and duties of individuals and organizations (including businesses). Correct
Answer: Civil
Strong ethical leaders have a passion for all of the following except to Correct Answer: satisfy
shareholders before other stakeholder groups
What concept refers to economic theories advocating the creation of a society where wealth and power
are distributed evenly, relative to the amount of work expended in production? Correct Answer:
Socialism
Which moral philosophy evaluates the morality of an action on the basis of its conformity to general
moral principles and respect for individual rights? Correct Answer: Rule deontology
_____ focus(es) on developing sound organizational practices and integrity for financial and nonfinancial
performance measures, rather than on an individual's morals. Correct Answer: Core practices
Which of the following is a major ethical concern among corporate boards of directors? Correct Answer:
Compensation
Which of the following strives to create order by requiring that employees identify with and commit to
specific required conduct? Correct Answer: Compliance orientation
_____ are used to obtain or retain business and are not generally considered illegal in the U.S. Correct
Answer: Facilitation payments
_____ justice is based on the evaluation of outcomes or results of the business relationship. Correct
Answer: Distributive
Some economists believe that if companies address economic and legal issues, they are satisfying the
demands of society, and that trying to anticipate and meet additional needs would be almost
impossible. Which economist's theory are they following most closely with this belief? Correct Answer:
Milton Friedman
Because top managers may be more insensitive to ethical issues due to their focus on financial
performance, the FSGO guidelines suggest that ethics officers report to the _____ instead. Correct
Answer: board of directors
Business ethics, as a field, has passed through which of the following states? Correct Answer:
Theological discussion to recognition of social issues to a field of study
The first step toward understanding business ethics is to Correct Answer: develop ethical-issue
awareness.
The originator of the idea of the invisible hand, which is a fundamental concept in free market
capitalism, was Correct Answer: Adam Smith.
Through _______________, it is possible to quantify the trade-offs to determine whether to accept or
reject environmentally-related activities and programs. Correct Answer: risk management
Which of the following acts exempted the insurance industry from antitrust legislation? Correct Answer:
McCarran-Ferguson Act of 1944
Fostering ethical decision making within an organization requires improving the firm's ethical standards
and Correct Answer: terminating the "bad apples" in the organization.
Which of the following is not associated with the stakeholder interaction model? Correct Answer:
Identifies the mass media, special interest groups, competitors, and trade associations as primary
stakeholders
_____ allows for private ownership of property and features a large government equipped to offer such
services as education and health care to its citizens Correct Answer: Social democracy.
These leaders are passionate about the company, live out corporate values daily in their behavior in the
workplace, and form long-term relationships with employees and other stakeholders. Correct Answer:
Transactional
When we discuss _____ approaches, we are talking about how organizational decision makers should
approach an issue. Correct Answer: Normative
Retaliation against employees that report misconduct is a problem in _____ cultures. Correct Answer:
weak ethical
Which is not considered a white collar crime? Correct Answer: Mugging someone
Critics of nuclear power are concerned about all of the following, except: Correct Answer: Reduced
emissions
The four categories of communication include all of the following except Correct Answer: Reporting
Mr. Smith told his client, Mr. Jabar, who was not an IT expert, that the new software systems were much
better than his existing ones. To convince Mr. Jabar, Mr. Smith used a great deal of technical jargon that
his client did not really understand. Mr. Smith did this intentionally to confuse Mr. Jabar. This is an
example of Correct Answer: noise.
,Affirmative action programs Correct Answer: involve the recruitment, hiring, promotion, and training of
qualified individuals.
The relationship between business ethics and age Correct Answer: is complex, although experience
helps older employees make ethical decisions
Following the ethical directives of a superior relates to Correct Answer: obedience to authority
Ethics is a part of decision making Correct Answer: at all levels of work and management.
The process of verifying the results of an audit should involve standard procedures that control the
_____ of the information. Correct Answer: reliability and validity
When in Rome, do as the Romans do, or you must adapt to the cultural practices of the country in which
you are operating are rationalizations business people sometimes offer for straying from their own
ethical values when doing business abroad. This practice is called Correct Answer: cultural relativism
_____ occurs when one or more group members feel pressured to conform to the group's decision even
if they personally disagree Correct Answer: Groupthink
Which of the following statements about multinational corporations (MNCs) is false? Correct Answer:
MNCs are inherently unethical and always do harm in the countries in which they operate.
A _____-based culture encourages employees to express concerns, bring up ethical issues, and take a
proactive approach toward resolving conflicts. Correct Answer: Values
_____ involves tricking individuals into revealing their passwords or other valuable corporate
information. Correct Answer: Social engineering
All of the following are true regarding institutions except Correct Answer: There is no clear link between
institutional theory and the stakeholder orientation of management.
The _____ was/were enacted to restore confidence in financial reporting and business ethics after the
accounting scandals of the early 2000s. Correct Answer: Sarbanes-Oxley Act
The _______________ focuses on reducing pollution through cost-effective changes in production,
operation, and raw materials use. Correct Answer: Pollution Prevention Act
Which of the following is not a benefit to businesses of engaging in voluntary responsibilities? Correct
Answer: Improve employee compensation and retention
_____ is based upon the assumption that people are predictable and will maximize the utility of their
choices relative to their needs and wants. Correct Answer: Rational economics
This occurs when leaders and followers share the same vision, ethical expectations, and objectives for
the company. Correct Answer: Leader-follower congruence
, No formal dress codes, working late, participation in extracurricular activities, gestures, and legends
represent Correct Answer: informal expressions of an organization's culture.
Although limiting urban sprawl creates disadvantages for ____________, many businesses can benefit
from urban renewal movements that reduce sprawl. Correct Answer: car and oil companies
Through time an act can come to be viewed as unethical under which of the following philosophies and
perspectives? Correct Answer: The relativist perspective
___ law defines the rights and duties of individuals and organizations (including businesses). Correct
Answer: Civil
Strong ethical leaders have a passion for all of the following except to Correct Answer: satisfy
shareholders before other stakeholder groups
What concept refers to economic theories advocating the creation of a society where wealth and power
are distributed evenly, relative to the amount of work expended in production? Correct Answer:
Socialism
Which moral philosophy evaluates the morality of an action on the basis of its conformity to general
moral principles and respect for individual rights? Correct Answer: Rule deontology
_____ focus(es) on developing sound organizational practices and integrity for financial and nonfinancial
performance measures, rather than on an individual's morals. Correct Answer: Core practices
Which of the following is a major ethical concern among corporate boards of directors? Correct Answer:
Compensation
Which of the following strives to create order by requiring that employees identify with and commit to
specific required conduct? Correct Answer: Compliance orientation
_____ are used to obtain or retain business and are not generally considered illegal in the U.S. Correct
Answer: Facilitation payments
_____ justice is based on the evaluation of outcomes or results of the business relationship. Correct
Answer: Distributive
Some economists believe that if companies address economic and legal issues, they are satisfying the
demands of society, and that trying to anticipate and meet additional needs would be almost
impossible. Which economist's theory are they following most closely with this belief? Correct Answer:
Milton Friedman
Because top managers may be more insensitive to ethical issues due to their focus on financial
performance, the FSGO guidelines suggest that ethics officers report to the _____ instead. Correct
Answer: board of directors
Business ethics, as a field, has passed through which of the following states? Correct Answer:
Theological discussion to recognition of social issues to a field of study
