Question 1

Which of the following groups is not a group that receives special legal protections?

Accepted Answer

A)  The elderly
B)  Children
C)  Senior citizens
D)  The highly educated
E)  Young consumersF) B) and C)
G) A) and C)

Question 2

Investigations into the financial rating industry after the financial meltdown of 2008 found all of the following except

Accepted Answer

A)  analysts cut corners when faced with less time to perform due diligence.
B)  analysts' ratings were inaccurate.
C)  many high ratings were based on inadequate historical data.
D)  analysts were overwhelmed with the volume and complexity of trades.
E)  most analysts were completely untrained and unprepared to do their jobs.F) A) and E)
G) B) and E)

Question 3

Which of the following is not a provision of the Sarbanes-Oxley Act?

Accepted Answer

A)  Strengthens penalties for corporate fraud
B)  Discourages the creation of ethical and legal compliance programs
C)  Requires codes of ethics for financial reporting in corporations
D)  Makes fraudulent financial reporting a criminal offense
E)  Requires greater transparency in financial reportingF) A) and C)
G) B) and C)

Question 4

Which of the following is not one of the seven steps that the U.S.Sentencing Commission requires for an effective compliance program?

Accepted Answer

A)  Develop a code of conduct
B)  Provide oversight by high-ranking personnel
C)  Create a communication system for disseminating standards and procedures
D)  Monitor and audit systems designed to detect misconduct
E)  Comply with ISO 14000 guidelinesF) B) and D)
G) B) and E)

Question 5

Part of the reason why credit ratings firms did not catch major problems prior to the global financial meltdown of 2008 was because they were paid by the firms that they rank,which creates

Accepted Answer

A)  economies of scale.
B)  synergy.
C)  a conflict of interest.
D)  cooperation.
E)  efficiency.F) C) and D)
G) None of the above

Question 6

focus(es) on developing sound organizational practices and integrity for financial and nonfinancial performance measures,rather than on an individual's morals.

Accepted Answer

A)  The Dodd-Frank Wall Street Reform and Consumer Protection Act
B)  Compliance
C)  Organizational ethics
D)  Core practices
E)  The Sarbanes Oxley ActF) A) and B)
G) A) and E)

Question 7

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

Accepted Answer

A)  Department of Justice and Open Compliance Ethics Group
B)  Department of Justice and the Sarbanes-Oxley Act
C)  Federal Sentencing Guidelines for Organizations and the Sarbanes-Oxley Act
D)  Food and Drug Administration and the Sarbanes-Oxley Act
E)  Securities and Exchange Commission and the Sarbanes-Oxley ActF) B) and E)
G) A) and D)

Question 8

Who provides information to managers,investors,tax authorities,and other stakeholders who make resource allocation decisions for corporations?

Accepted Answer

A)  Accountants
B)  Federal regulators
C)  The Securities and Exchange Commission
D)  The Department of Justice
E)  Human Resources departmentsF) None of the above
G) C) and D)

Question 9

Which of the following is not a benefit to businesses of engaging in voluntary responsibilities?

Accepted Answer

A)  Help create an ethical culture and values that can act as a buffer to organizational misconduct
B)  Reduce government involvement by providing assistance to stakeholders
C)  Develop employee leadership skills
D)  Improve employee compensation and retention
E)  Improve the quality of life in communitiesF) B) and E)
G) A) and B)

Question 10

Which of the forces of the business environment involves the rivalry among businesses for customers and profits?

Accepted Answer

A)  The economic dimension
B)  The legal dimension
C)  The competitive dimension
D)  The technological dimension
E)  The voluntary responsibilities dimensionF) D) and E)
G) B) and E)

Question 11

Anticompetitive strategies that focus on weakening or destroying a competitor have spurred antitrust legislation and include all of the following except

Accepted Answer

A)  sustained price cuts.
B)  free samples.
C)  discriminatory pricing.
D)  price collusion.
E)  corporate espionage.F) B) and E)
G) B) and C)

Question 12

Society often expects a lot from business.Do you think that it is possible to balance profit and other business objectives with the goals and desires of society? Why or why not?

Accepted Answer

Students can draw fr...

Question 13

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?

Accepted Answer

A)  Civil Rights Act of 1964
B)  Sherman Antitrust Act of 1890
C)  Magnuson-Moss Warranty Act of 1974
D)  Consumer Product Safety Act of 1972
E)  Pure Food and Drug Act of 1906F) D) and E)
G) A) and E) E

Question 14

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

Accepted Answer

A)  Because the large size creates economies of scale and they can charge lower prices
B)  Because the selection in the stores is too large
C)  Because large retailers attract crime to neighborhoods in which they are based
D)  Because community leaders do not like the top management
E)  Because large retailers almost never hire local workers as employeesF) A) and C)
G) C) and D)

Question 15

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

Accepted Answer

A)  conflicts of interest.
B)  cronyism.
C)  reporting transparency.
D)  corporate espionage.
E)  dual reporting.F) A) and D)
G) A) and C)

Question 16

According to the text,the opinions of society,as expressed through legislation,can change over time and different courts and government legislatures may take different views about the acceptability of specific business activities.Why is this so?

Accepted Answer

The role of laws is not so much to deter...

Question 17

Which of the following is not a provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act?

Accepted Answer

A)  Increases the accountability and transparency of financial institutions
B)  Creates a bureau to educate consumers in financial literacy
C)  Creates an organization to pay the bills of low-income consumers
D)  Create incentives for whistle-blowers to come forward
E)  Increases oversight of the financial industryF) A) and E)
G) None of the above C

Question 18

responsibilities relate to a business's contributions to stakeholders.

Accepted Answer

A)  Economic
B)  Legal
C)  Ethical
D)  Voluntary
E)  Social responsivenessF) A) and D)
G) C) and E) D

Question 19

Which of the following is not an aspect of the institutionalization of social responsibility?

Accepted Answer

A)  Voluntary practices
B)  Legal responsibilities
C)  Core practices
D)  Familial responsibilities
E)  Strategic philanthropyF) B) and E)
G) All of the above

Question 20

Which is not one of the four sources of criminal and civil laws?

Accepted Answer

A)  Judicial law
B)  Common law
C)  Constitutional law
D)  Administrative law
E)  Statutory lawF) A) and B)
G) A) and D)

Exam 4: The Institutionalization of Business Ethics

Which of the following groups is not a group that receives special legal protections?

Correct AnswerverifiedShow Answer

Investigations into the financial rating industry after the financial meltdown of 2008 found all of the following except

Correct AnswerverifiedShow Answer

Which of the following is not a provision of the Sarbanes-Oxley Act?

Correct AnswerverifiedShow Answer

Which of the following is not one of the seven steps that the U.S.Sentencing Commission requires for an effective compliance program?

Correct AnswerverifiedShow Answer

Part of the reason why credit ratings firms did not catch major problems prior to the global financial meltdown of 2008 was because they were paid by the firms that they rank,which creates

Correct AnswerverifiedShow Answer

focus(es) on developing sound organizational practices and integrity for financial and nonfinancial performance measures,rather than on an individual's morals.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Who provides information to managers,investors,tax authorities,and other stakeholders who make resource allocation decisions for corporations?

Correct AnswerverifiedShow Answer

Which of the following is not a benefit to businesses of engaging in voluntary responsibilities?

Correct AnswerverifiedShow Answer

Which of the forces of the business environment involves the rivalry among businesses for customers and profits?

Correct AnswerverifiedShow Answer

Anticompetitive strategies that focus on weakening or destroying a competitor have spurred antitrust legislation and include all of the following except

Correct AnswerverifiedShow Answer

Society often expects a lot from business.Do you think that it is possible to balance profit and other business objectives with the goals and desires of society? Why or why not?

Correct AnswerverifiedStudents can draw fr...View AnswerShow Answer

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?

Correct AnswerverifiedE

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

According to the text,the opinions of society,as expressed through legislation,can change over time and different courts and government legislatures may take different views about the acceptability of specific business activities.Why is this so?

Correct AnswerverifiedThe role of laws is not so much to deter...View AnswerShow Answer

Which of the following is not a provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act?

Correct AnswerverifiedC

responsibilities relate to a business's contributions to stakeholders.

Correct AnswerverifiedD

Which of the following is not an aspect of the institutionalization of social responsibility?

Correct AnswerverifiedShow Answer

Which is not one of the four sources of criminal and civil laws?

Correct AnswerverifiedShow Answer

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Students can draw fr...
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E

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The role of laws is not so much to deter...
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C

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D

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