QUESTION Brain Wing Inc. has won the bid to build airplanes for a host country government. However, the execution of the contract has been delayed due to certain unproductive, bureaucratic procedures in the less developed nation. In order to legally overcome this problem, Brain Wing Inc. could resort to the payment of: A. customs duties. […]
QUESTION The Foreign Corrupt Practices Act was subsequently amended to allow for speed money or grease payments, which are payments made to: A. secure contracts that would not otherwise be secured. B. obtain exclusive preferential treatment in a foreign market. C. influence foreign bureaucrats in the company’s favor. D. ensure a business receives the standard […]
QUESTION In order to build large production units and expedite certain routine government actions related to this, Scorpius Inc. made legal payments to the government officials of a host nation. Such payments are typically referred to as: A. bribes. B. speed money. C. customs duties. D. excise taxes. E. preferred dividends. ANSWER B
QUESTION Which of the following statements is true of facilitating payments? A. According to the Foreign Corrupt Practices Act, “facilitating payments” are as illegal as bribes. B. Facilitating payments are payments to secure contracts that otherwise would not be secured. C. It is ethical to have a zero-tolerance approach toward facilitating payments. D. Companies are […]
QUESTION Which of the following refers to the idea that businesspeople should consider the social consequences of economic actions when making business decisions, and that there should be a presumption in favor of decisions that have both good economic and social consequences? A. Corporate dissonance B. Class consciousness C. Corporate dynamism D. Social responsibility E. […]
QUESTION In a business setting, the term noblesse oblige refers to: A. a benevolent behavior that is considered the responsibility of successful enterprises. B. obliging a government official with the expectation of a reciprocal favor. C. rich corporations abusing their power for private gain. D. preferential treatment received by successful companies from governments. E. tax […]
QUESTION Which of the following refers to accepted principles of right or wrong that govern the conduct of a person, the members of a profession, or the actions of an organization. A. strategy B. goodwill C. ethics D. mission E. vision ANSWER C
QUESTION Which of the following best exemplifies noblesse oblige? A. Multinational corporations gaining monopoly rights in developing countries in order to weaken the local competition B. Multinational corporations funding schools, universities, and hospitals in developing countries C. Multinational corporations altering the laws of a host country to suit their businesses D. Multinational corporations bribing poorly […]
QUESTION The righteous moralist’s approach to ethics is typically associated with managers from developed nations. Indicate whether the statement is true or false. ANSWER TRUE A righteous moralist claims that a multinational’s home-country standards of ethics are the appropriate ones for companies to follow in foreign countries. This approach is typically associated with managers […]
QUESTION According to Friedman’s doctrine, the only social responsibility of business is to increase profits, so long as the company stays within the rules of law. Indicate whether the statement is true or false. ANSWER TRUE Milton Friedman’s basic position is that the only social responsibility of business is to increase profits, so long […]
