QUESTION The Public Company Accounting Oversight Board created by the Sarbanes-Oxley Act is granted authority under what government entity? A) Department of Commerce B) Securities and Exchange Commission C) Department of Homeland Security D) Consumer Protection and Safety Commission E) Department of the Treasury ANSWER Answer: B Explanation: B) The commission is charged with […]
QUESTION Business ethics do not impact investor behavior. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: One survey found that 74 percent of people said their perception about a company’s honesty influenced their decision to buy its stock.
QUESTION Jiao found a competitor’s proposal for a project her company is also bidding on. She knows using the information can help her team develop a winning proposal, and her company needs the project to avoid staff layoffs. What situation is Jiao facing? A) insider trading B) devil’s bargain C) ethical dilemma D) economic responsibility […]
QUESTION Stockholders who resent a company’s social responsibility activities are logically focused on maximizing their profits. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: Studies show that profitability is enhanced by a company’s reputation for honesty and corporate citizenship.
QUESTION Tim works at a fast-food restaurant and suspects that a coworker may be misreporting his hours worked. Yet one of the stated values of the company is team unity and cohesion, and Tim is afraid that reporting the misreported hours may cause his coworkers to have a poor opinion of him. What is this […]
QUESTION Which of the following is NOT a component of business-ethics scholar Archie B. Carroll’s global social responsibility pyramid? A) to obey the law B) to honor competitors C) to make a profit D) to be ethical E) to be a good global corporate citizen ANSWER Answer: B Explanation: B) Carroll’s pyramid does not […]
QUESTION Which of the following is NOT one of the primary strategies that organizations can use to foster high ethical standards? A) encourage an ethical climate through top management staff B) place covert whistleblowers on staff C) develop stringent codes for ethical behavior D) hire trustworthy, responsible employees E) provide training in ethical conduct […]
QUESTION Participating in community activities offers no marketing or promotional value for a business. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: Donations of branded products, employee teams wearing company logos, and similar activities all offer promotional value while benefitting the community.
QUESTION The Global Compact promoting social and environmental practices for business was established by the United Nations. Indicate whether the statement is true or false. ANSWER Answer: TRUE Explanation: The Global Compact has ten principles addressing human rights, labor standards, anti-corruption, and the environment.
QUESTION Global climate change has no impact on economic development. Indicate whether the statement is true or false. ANSWER Answer: FALSE Explanation: One economist reported that potential costs and risks of climate change are equivalent to losing at least 5 percent of global gross domestic product annually.
