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Fairness and honesty in business are two important ethical concerns.

A) True
B) False

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When faced with an ethical conflict,a manager should always


A) ask the boss what to do,then do it without question.
B) consider only what is best for the company.
C) look at which decision will make the stockholder the most money today.
D) worry only about what the law has to say,then take legal action because it will produce the least public outcry.
E) think about his or her own ethics;the company's ethics;and the interest of employees,stockholders,and customers.

F) A) and E)
G) C) and D)

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Air and water quality may be improving,but land pollution is still a serious problem in many areas.

A) True
B) False

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The American Footwear and Apparel Group exerts pressure on its members to comply with the ethical standards of the industry and provides information and benefits for textile companies.This company is an example of a(n)


A) regulatory agency.
B) government agency.
C) trade association.
D) industry organization.
E) membership club.

F) B) and D)
G) A) and B)

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President Franklin D.Roosevelt declared that consumers are entitled to safety,to be informed,to choose,and to be heard.

A) True
B) False

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Businesspeople often face ethical issues every day,and some of these issues can be difficult to assess.

A) True
B) False

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Bill had a problem with a coffee maker he purchased recently.He has been trying for days to speak with the company by calling its toll-free number,but it rings forever or sends him through a long menu with no opportunity to speak to an individual or to leave a message.Steve feels his basic consumer right to ____ has been violated.


A) safety
B) be informed
C) be heard
D) choose
E) privacy

F) None of the above
G) C) and D)

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An effective program for social responsibility takes time,money,and organization.

A) True
B) False

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During the 1980s,very few organizations created and implemented ethics codes.

A) True
B) False

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The economic model of social responsibility emphasizes profits.

A) True
B) False

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What two additional rights have been added to Kennedy's original Consumer Bill of Rights?


A) Right to choose and right to satisfaction
B) Right to listen and right to education
C) Right to consumer education and right to service
D) Right to service and right to privacy
E) Right to reparation and right to privacy

F) A) and D)
G) A) and C)

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A program to implement social responsibility in business begins with


A) total commitment of top management.
B) careful planning.
C) appointment of a director.
D) a board of directors meeting.
E) conducting a social audit.

F) A) and E)
G) B) and D)

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The socioeconomic model of social responsibility places primary emphasis on


A) quality of life.
B) production.
C) economic return.
D) exploitation of natural resources.
E) profit.

F) D) and E)
G) None of the above

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One way a social responsibility program can be funded is by passing on the cost to the consumer in the form of higher prices.

A) True
B) False

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A large computer manufacturer forbids its executives and managers from serving as directors or officers for Hewlett-Packard or any other corporations from which it might purchase component parts.The company is trying to prevent


A) their employees from having other jobs.
B) a conflict of interest.
C) trade secrets from being revealed.
D) losing its executives to other organizations.
E) fairness and honesty.

F) A) and B)
G) C) and D)

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Which of the following scenarios provides the best example of whistle-blowing?


A) Henry fails to meet his sales quota for the month and is reported to the regional manager for special review.
B) Lysa tells her husband about illegal environmental dumping she suspects her company is doing.
C) James gives an interview on NBC's Dateline about the opportunities available at his company.
D) Jessamine speaks to her boss about how uncomfortable she is with the sexual jokes one of her coworkers frequently tells at the office.
E) Rachel has grown tired of her company's unsafe practices and reports them to OSHA,a governmental agency that regulates safety.

F) A) and B)
G) None of the above

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Early government regulations prior to 1920 that affected American business include all of the following except the


A) Interstate Commerce Act.
B) Sherman Antitrust Act.
C) Federal Trade Commission.
D) Clayton Antitrust Act.
E) Americans with Disabilities Act.

F) None of the above
G) All of the above

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A personnel manager of a large company would probably agree that the more ethical the company,the easier it is to attract good people.

A) True
B) False

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In the United States and many other countries,bribes are


A) unethical.
B) ethical only under certain circumstances.
C) uncommon in many foreign countries.
D) economic returns.
E) ethical.

F) A) and B)
G) None of the above

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The director of a company's social responsibility program should be a consumer advocate who can express the social issues facing the firm to the organization's management.

A) True
B) False

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