325MidTermpracticesp2012 Key – Flashcards
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(p. 165) Egoism states that all people should uphold certain values, such as honesty, that society needs to function.
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FALSE (AACSB: Ethics Bateman - Chapter 05 #8 Blooms: Knowledge Learning Objective: 05-01 Describe how different ethical perspectives guide decision making. Level of Difficulty: Easy Topic: Ethics)
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(p. 165) Two basic ethical ideals underpin the Caux Principles: honesty and integrity.
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FALSE Two basic ethical ideals underpin the Caux Principles: kyosei and human dignity. Kyosei means living and working together for the common good, allowing cooperation and mutual prosperity to coexist with healthy and fair competition. (AACSB: Ethics Bateman - Chapter 05 #9 Blooms: Comprehension Learning Objective: 05-01 Describe how different ethical perspectives guide decision making. Level of Difficulty: Medium Topic: Ethics)
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(p. 165) Egoism is a preferred ethical stance from a societal perspective, compared to utilitarianism.
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FALSE (AACSB: Ethics Bateman - Chapter 05 #10 Blooms: Knowledge Learning Objective: 05-01 Describe how different ethical perspectives guide decision making. Level of Difficulty: Easy Topic: Ethics)
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. (p. 166) Virtue ethics goes beyond the conventional rules of society.
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TRUE Virtue ethics is a perspective that goes beyond the conventional rules of society by suggesting that what is moral must also come from what a mature person with good "moral character" would deem right. (AACSB: Ethics Bateman - Chapter 05 #14 Blooms: Comprehension Learning Objective: 05-01 Describe how different ethical perspectives guide decision making. Level of Difficulty: Medium Topic: Ethics)
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(p. 167) People in the conventional stage of Kohlberg's model of cognitive moral development conform to the expectations of ethical behavior held by groups or institutions such as society, family or peers.
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TRUE (AACSB: Ethics Bateman - Chapter 05 #15 Blooms: Knowledge Learning Objective: 05-01 Describe how different ethical perspectives guide decision making. Level of Difficulty: Easy Topic: Ethics)
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. (p. 175) It is easy to be a whistleblower since there are few consequences for it.
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FALSE Most whistleblowers suffer consequences such as being ostracized, treated rudely, or given undesirable assignments. (AACSB: Ethics Bateman - Chapter 05 #25 Blooms: Comprehension Learning Objective: 05-03 Outline a process for making ethical decisions. Level of Difficulty: Medium Topic: Ethics)
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(p. 176) The economic responsibility of a business includes satisfying its obligations to investors.
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TRUE (AACSB: Ethics Bateman - Chapter 05 #26 Blooms: Knowledge Learning Objective: 05-04 Summarize the important issues surrounding corporate social responsibility. Level of Difficulty: Easy Topic: Corporate Social Responsibility)
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. (p. 182) Sustainability is not compatible with the natural ecosystems that generate and preserve life.
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FALSE (AACSB: Ethics Bateman - Chapter 05 #34 Blooms: Knowledge Learning Objective: 05-06 Identify actions managers can take to manage with the environment in mind. Level of Difficulty: Easy Topic: The Natural Environment)
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(p. 182) Life-cycle analysis (LCA) quantifies the total use of resources and the releases into the air, water and land.
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TRUE (AACSB: Ethics Bateman - Chapter 05 #36 Blooms: Knowledge Learning Objective: 05-06 Identify actions managers can take to manage with the environment in mind. Level of Difficulty: Easy Topic: The Natural Environment)
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(p. 164) Honesty, caring, loyalty, fairness and integrity are all examples of
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C. values. Values are principles of conduct such as caring, being honest, keeping promises, pursuing excellence, showing loyalty, being fair, acting with integrity, respecting others, and being a responsible citizen. Ethical decisions are guided by the underlying values of the individual. (AACSB: Ethics Bateman - Chapter 05 #40 Blooms: Comprehension Learning Objective: 05-01 Describe how different ethical perspectives guide decision making. Level of Difficulty: Medium Topic: Ethics)
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(p. 164) A situation, problem, or opportunity in which an individual must choose among several actions that must be evaluated as morally right or wrong is called a(n)
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B. ethical issue. (AACSB: Ethics Bateman - Chapter 05 #41 Blooms: Knowledge Learning Objective: 05-01 Describe how different ethical perspectives guide decision making. Level of Difficulty: Easy Topic: Ethics)
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(p. 165) Han believes in fairness and kyosei and uses these principles to make decisions of right and wrong in his daily life. These principles are part of his
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A. moral philosophy. Moral philosophy refers to the principles, rules, and values people use in deciding what is right or wrong. (AACSB: Ethics Bateman - Chapter 05 #46 Blooms: Application Learning Objective: 05-01 Describe how different ethical perspectives guide decision making. Level of Difficulty: Hard Topic: Ethics)
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(p. 165) ___________ considers acceptable behavior as that which maximizes benefits for the individual.
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A. Egoism (AACSB: Ethics Bateman - Chapter 05 #48 Blooms: Knowledge Learning Objective: 05-01 Describe how different ethical perspectives guide decision making. Level of Difficulty: Easy Topic: Ethics)
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(p. 171) The __________ principle encourages employees to consider first if they would like to see their actions displayed on the front page of the newspaper. If yes, then it is likely an appropriate course of action.
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B. sunshine (AACSB: Ethics Bateman - Chapter 05 #68 Blooms: Knowledge Learning Objective: 05-02 Explain how companies influence their ethics environment. Level of Difficulty: Easy Topic: Ethics)
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(p. 171) An ethics program that is designed by lawyers to detect, prevent and punish legal violations is called a(n) _________ ethics program.
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B. compliance-based (AACSB: Ethics Bateman - Chapter 05 #69 Blooms: Knowledge Learning Objective: 05-02 Explain how companies influence their ethics environment. Level of Difficulty: Easy Topic: Ethics)
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(p. 171) Compliance-based ethics programs are typically designed by
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A. lawyers (AACSB: Ethics Bateman - Chapter 05 #71 Blooms: Knowledge Learning Objective: 05-02 Explain how companies influence their ethics environment. Level of Difficulty: Easy Topic: Ethics)
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(p. 171) Compliance-based ethics programs ensure
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B. moral mediocrity. Compliance-based ethics programs should reduce illegal behavior and help a company stay out of court. But they do not create a moral commitment to ethical conduct; they merely ensure moral mediocrity. (AACSB: Ethics Bateman - Chapter 05 #72 Blooms: Comprehension Learning Objective: 05-02 Explain how companies influence their ethics environment. Level of Difficulty: Medium Topic: Ethics)
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(p. 172) Ethical programs tend to be better integrated into operations, thinking and behavior when
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B. top management has a personal commitment to responsible ethical behavior. When top management has a personal commitment to responsible ethical behavior, programs tend to be better integrated into operations, thinking, and behavior. Ethics should be a thoroughly integrated aspect of the way the company and its people do business. (AACSB: Ethics Bateman - Chapter 05 #74 Blooms: Comprehension Learning Objective: 05-02 Explain how companies influence their ethics environment. Level of Difficulty: Medium Topic: Ethics)
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(p. 172) Going beyond legal compliance with ADA standards and training people to understand that individuals with disabilities also have valued abilities is an example of
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B. integrity-based programs. Integrity-based ethics programs would go further by training people to understand and perhaps change attitudes toward people with disabilities and sending clear signals that people with disabilities also have valued abilities. This effort goes far beyond taking action to stay out of trouble with the law. (AACSB: Ethics Bateman - Chapter 05 #75 Blooms: Comprehension Learning Objective: 05-02 Explain how companies influence their ethics environment. Level of Difficulty: Medium Topic: Ethics)
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. (p. 173) John Rawls maintained that only a person ignorant of his own identity can make a truly ethical decision. This thought process is based on the
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C. veil of ignorance. The philosopher John Rawls created a thought experiment based on the "veil of ignorance." A decision maker can tactically apply the veil of ignorance to help minimize personal bias. (AACSB: Ethics Bateman - Chapter 05 #77 Blooms: Comprehension Learning Objective: 05-03 Outline a process for making ethical decisions. Level of Difficulty: Medium Topic: Ethics)
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(p. 173; Figure 5.1) The process for ethical decision making begins with .
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C. understanding all moral standards and recognizing all moral impacts. (AACSB: Ethics Bateman - Chapter 05 #78 Blooms: Knowledge Learning Objective: 05-03 Outline a process for making ethical decisions. Level of Difficulty: Easy Topic: Ethics)
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(p. 174; Figure 5.2) Level 1 business costs of ethical failures include
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A. government fines and penalties. (AACSB: Ethics Bateman - Chapter 05 #81 Blooms: Knowledge Learning Objective: 05-03 Outline a process for making ethical decisions. Level of Difficulty: Easy Topic: Ethics)
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(p. 174; Figure 5.2) Which of the following is a Level 2 cost of ethical failure?
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B. Remedial education (AACSB: Ethics Bateman - Chapter 05 #82 Blooms: Knowledge Learning Objective: 05-03 Outline a process for making ethical decisions. Level of Difficulty: Easy Topic: Ethics)
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(p. 175) Telling others, inside or outside the organization, of wrongdoing is called
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B. whistleblowing. (AACSB: Ethics Bateman - Chapter 05 #83 Blooms: Knowledge Learning Objective: 05-03 Outline a process for making ethical decisions. Level of Difficulty: Easy Topic: Ethics)
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(p. 176) Corporate social responsibility is the
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B. obligation toward society assumed by business. (AACSB: Ethics Bateman - Chapter 05 #88 Blooms: Knowledge Learning Objective: 05-04 Summarize the important issues surrounding corporate social responsibility. Level of Difficulty: Easy Topic: Corporate Social Responsibility)
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(p. 176) Computer Geeks believes in and engages in meeting societal expectations whether or not written as law. The business serves as a drop-off location for recycling old computers and other electronic devices to do its part in keeping poisonous materials out of the landfills. Computer Geeks can be described as operating at which level of the pyramid of corporate social responsibility?
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C. Ethical Ethical responsibilities include meeting other societal expectations, not written as law such as serving as a drop-off point for recycling computers. (AACSB: Ethics Bateman - Chapter 05 #89 Blooms: Application Learning Objective: 05-04 Summarize the important issues surrounding corporate social responsibility. Level of Difficulty: Hard Topic: Corporate Social Responsibility)
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(p. 176; Figure 5.3) The order of the levels in the pyramid of global corporate social responsibility and performance are (from bottom to top)
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C. economic, legal, ethical, philanthropic (AACSB: Ethics Bateman - Chapter 05 #92 Blooms: Knowledge Learning Objective: 05-04 Summarize the important issues surrounding corporate social responsibility. Level of Difficulty: Easy Topic: Corporate Social Responsibility)
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(p. 177) Speaking out against unethical actions is called
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E. intolerance of ineffective humanity. (AACSB: Ethics Bateman - Chapter 05 #98 Blooms: Knowledge Learning Objective: 05-04 Summarize the important issues surrounding corporate social responsibility. Level of Difficulty: Easy Topic: Corporate Social Responsibility)
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(p. 177) Who wrote The social responsibility of business is to increase profits?"
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B. Milton Friedman (AACSB: Ethics Bateman - Chapter 05 #99 Blooms: Knowledge Learning Objective: 05-04 Summarize the important issues surrounding corporate social responsibility. Level of Difficulty: Easy Topic: Corporate Social Responsibility)
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(p. 180) Under a business initiative called Ecomagination, GE is looking for business opportunities from
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E. solving environmental problems. Under a business initiative called Ecomagination, GE is looking for business opportunities from solving environmental problems. Ecomagination solutions already include wind turbines, materials for solar energy cells, and energy-efficient home appliances. (AACSB: Ethics Bateman - Chapter 05 #101 Blooms: Comprehension Learning Objective: 05-05 Discuss reasons for businesses growing interest in the natural environment. Level of Difficulty: Medium Topic: The Natural Environment) Scenario A. Your organization faces an ethical question. There has been a problem with your accounting process that has resulted in lower profits being reported than were actually earned. You are attending a meeting where senior management is deciding how to handle the situation. The people at the table have varying views of what action to take and why. John wants to report the error immediately because he believes that it is the right thing to do and that will keep them all out of jail. Bruce wants to report the error because it is the honest thing to do. After hearing his colleagues' opinions, Carlos says he wants to report the error as well because he believes the group is right. (Bateman - Chapter 05)
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(p. 165-166) Bruce is using which ethical system for his decision making?
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A. Universalism Universalism states that all people should uphold certain values, such as honesty, that society needs to function. (AACSB: Ethics Bateman - Chapter 05 #117 Blooms: Application Learning Objective: 05-01 Describe how different ethical perspectives guide decision making. Level of Difficulty: Hard Topic: Ethics)
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(p. 166) Carlos is using which ethical system for his decision making?
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D. Relativism Relativism defines ethical behavior based on the opinions and behaviors of relevant other people. (AACSB: Ethics Bateman - Chapter 05 #118 Blooms: Application Learning Objective: 05-01 Describe how different ethical perspectives guide decision making. Level of Difficulty: Hard Topic: Ethics) Scenario C. Two managers at RW Oil, Inc. are discussing the latest e-mail they have received from headquarters. Jimmy Joe's reaction is simply to say: "All this thing needs to say, as far as I'm concerned is if you don't get busted for it, you're innocent. If you do get caught, you pay the price." His friend, Eddie, has a very different idea. His response is: "I believe, however, that every individual should take personal responsibility for their behavior. I would like for our organization to integrate that idea into everything we do here at work." The email they are reading concerns how decisions are evaluated on the basis of right and wrong at their company. (Bateman - Chapter 05)
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(p. 171) Jimmy Joe seems to prefer which type of ethics program for the company?
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B. Compliance-based Compliance-based ethics programs are designed by corporate counsel to prevent, detect, and punish legal violations. These types of programs merely ensure moral mediocrity as Jimmy Joe is exhibiting. (AACSB: Ethics Bateman - Chapter 05 #123 Blooms: Application Learning Objective: 05-02 Explain how companies influence their ethics environment. Level of Difficulty: Hard Topic: Ethics) Scenario D. Eagle Manufacturing, Inc. is in the middle of its first day of the senior management retreat. The topic on the agenda is corporate social responsibility (CSR). Most of the group has seen this brought up before and then shot down because it generally costs Eagle's shareholders in the form of a lower stock price. But the new VP of Ethics, Gloria Wright, is about to explain why she believes CSR will actually benefit the shareholders and Eagle management alike. Her team begins the presentation with a discussion of CSR—its current definition and reconciliation of past views. Jeremiah then discusses the importance of being a good global corporate citizen by supporting the local school system. Ellen takes the floor to make the case for doing what is expected by global stakeholders even though there are no laws requiring those actions. Finally Gloria wraps the discussion up with why Eagle should take legal and economic responsibility for the firm's performance. To Gloria's team's credit, senior management does appear to buy into the pyramid of global corporate social responsibility and performance that her team just presented. (Bateman - Chapter 05)
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(p. 176) Ellen's presentation most likely focused on the __________ responsibility of the firm.
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Ethical responsibilities include meeting other societal expectations, not written as law. (AACSB: Ethics Bateman - Chapter 05 #126 Blooms: Application Learning Objective: 05-04 Summarize the important issues surrounding corporate social responsibility. Level of Difficulty: Hard Topic: Corporate Social Responsibility)
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(p. 176) Gloria's presentation most likely centered on the decision to take which of the following actions?
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A. Production of goods and services that society wants at a price that perpetuates the business and satisfies its obligations to investors Economic responsibilities of business are to produce goods and services that society wants at a price that perpetuates the business and satisfies its obligations to investors. (AACSB: Ethics Bateman - Chapter 05 #127 Blooms: Application Learning Objective: 05-04 Summarize the important issues surrounding corporate social responsibility. Level of Difficulty: Hard Topic: Corporate Social Responsibility)
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(p. 162) According to public opinion polls, only 31 percent of employees said they trust their own CEO.
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TRUE According to a survey by Edelman, people are often suspicious of their own company's management; only 31 percent said they trust their own CEO. (AACSB: Ethics Bateman - Chapter 05 #1 Blooms: Comprehension Learning Objective: 05-01 Describe how different ethical perspectives guide decision making. Level of Difficulty: Medium Topic: Management Close-Up)
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(p. 165) Moral philosophy refers to the principles, rules, and values people use in deciding what is right or wrong.
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TRUE (AACSB: Ethics Bateman - Chapter 05 #7 Blooms: Knowledge Learning Objective: 05-01 Describe how different ethical perspectives guide decision making. Level of Difficulty: Easy Topic: Ethics)
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(p. 165) Two basic ethical ideals underpin the Caux Principles: honesty and integrity.
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FALSE Two basic ethical ideals underpin the Caux Principles: kyosei and human dignity. Kyosei means living and working together for the common good, allowing cooperation and mutual prosperity to coexist with healthy and fair competition. (AACSB: Ethics Bateman - Chapter 05 #9 Blooms: Comprehension Learning Objective: 05-01 Describe how different ethical perspectives guide decision making. Level of Difficulty: Medium Topic: Ethics)
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(p. 166) Utilitarianism is an ethical system stating that the greatest good for the greatest number should be the overriding concern of decision makers.
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TRUE (AACSB: Ethics Bateman - Chapter 05 #12 Blooms: Knowledge Learning Objective: 05-01 Describe how different ethical perspectives guide decision making. Level of Difficulty: Easy Topic: Ethics)
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(p. 166) Virtue ethics goes beyond the conventional rules of society.
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TRUE Virtue ethics is a perspective that goes beyond the conventional rules of society by suggesting that what is moral must also come from what a mature person with good "moral character" would deem right. (AACSB: Ethics Bateman - Chapter 05 #14 Blooms: Comprehension Learning Objective: 05-01 Describe how different ethical perspectives guide decision making. Level of Difficulty: Medium Topic: Ethics)
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(p. 168) The ethical climate of an organization refers to the processes by which decisions are evaluated and made on the basis of right and wrong.
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TRUE (AACSB: Ethics Bateman - Chapter 05 #18 Blooms: Knowledge Learning Objective: 05-02 Explain how companies influence their ethics environment. Level of Difficulty: Easy Topic: Ethics)
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(p. 169) Excessive emphasis on long-term revenues over shorter-term considerations is one of the factors that is conducive to unethical behavior.
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TRUE Many factors create a climate conducive to unethical behavior including excessive emphasis on short-term revenues over longer-term considerations. (AACSB: Ethics Bateman - Chapter 05 #19 Blooms: Comprehension Learning Objective: 05-02 Explain how companies influence their ethics environment. Level of Difficulty: Medium Topic: Ethics)
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(p. 170) An ethical leader is one who is both a moral person and a moral manager influencing others to behave ethically.
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TRUE (AACSB: Ethics Bateman - Chapter 05 #20 Blooms: Knowledge Learning Objective: 05-02 Explain how companies influence their ethics environment. Level of Difficulty: Easy Topic: Ethics)
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(p. 171) A compliance-based ethics program creates a moral commitment to ethical conduct. FALSE
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A compliance-based ethics program does not create a moral commitment to ethical conduct; it merely ensures moral mediocrity. (AACSB: Ethics Bateman - Chapter 05 #21 Blooms: Comprehension Learning Objective: 05-02 Explain how companies influence their ethics environment. Level of Difficulty: Medium Topic: Ethics)
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(p. 172) An integrity-based ethics program instills in people a personal responsibility for ethical behavior.
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TRUE (AACSB: Ethics Bateman - Chapter 05 #22 Blooms: Knowledge Learning Objective: 05-02 Explain how companies influence their ethics environment. Level of Difficulty: Easy Topic: Ethics)
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(p. 176) The economic responsibility of a business includes satisfying its obligations to investors.
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TRUE (AACSB: Ethics Bateman - Chapter 05 #26 Blooms: Knowledge Learning Objective: 05-04 Summarize the important issues surrounding corporate social responsibility. Level of Difficulty: Easy Topic: Corporate Social Responsibility)
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(p. 180) GE management sees environmentally friendly technologies as one of the global economy's most significant business opportunities.
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TRUE Under a business initiative called Ecomagination, GE is looking for business opportunities from solving environmental problems. (AACSB: Ethics Bateman - Chapter 05 #32 Blooms: Comprehension Learning Objective: 05-05 Discuss reasons for businesses growing interest in the natural environment. Level of Difficulty: Medium Topic: The Natural Environment)
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(p. 182) Sustainability is not compatible with the natural ecosystems that generate and preserve life.
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FALSE (AACSB: Ethics Bateman - Chapter 05 #34 Blooms: Knowledge Learning Objective: 05-06 Identify actions managers can take to manage with the environment in mind. Level of Difficulty: Easy Topic: The Natural Environment)
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(p. 165) The Caux Principles are based on two ethical ideals:
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D. kyosei and human dignity. (AACSB: Ethics Bateman - Chapter 05 #47 Blooms: Knowledge Learning Objective: 05-01 Describe how different ethical perspectives guide decision making. Level of Difficulty: Easy Topic: Ethics)
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(p. 166) Utilitarianism states that
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E. The greatest good for the greatest number should be the overriding concern of decision makers.
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(p. 166) Tarissa typically makes a decision about what she will or won't do based on what her friends think she should do. Tarissa is using which ethical system for her decisions?
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C. Relativism Relativism defines ethical behavior based on the opinions and behaviors of relevant other people such as Tarissa's friends. (AACSB: Ethics Bateman - Chapter 05 #53 Blooms: Application Learning Objective: 05-01 Describe how different ethical perspectives guide decision making. Level of Difficulty: Hard Topic: Ethics)
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(p. 173) Knowing what actions are morally defensible is referred to as
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B. moral judgment. (AACSB: Ethics Bateman - Chapter 05 #76 Blooms: Knowledge Learning Objective: 05-03 Outline a process for making ethical decisions. Level of Difficulty: Easy Topic: Ethics)
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(p. 173) John Rawls maintained that only a person ignorant of his own identity can make a truly ethical decision. This thought process is based on the
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C. veil of ignorance. The philosopher John Rawls created a thought experiment based on the "veil of ignorance." A decision maker can tactically apply the veil of ignorance to help minimize personal bias. (AACSB: Ethics Bateman - Chapter 05 #77 Blooms: Comprehension Learning Objective: 05-03 Outline a process for making ethical decisions. Level of Difficulty: Medium Topic: Ethics)
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(p. 173; Figure 5.1) The process for ethical decision making begins with
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C. understanding all moral standards and recognizing all moral impacts. (AACSB: Ethics Bateman - Chapter 05 #78 Blooms: Knowledge Learning Objective: 05-03 Outline a process for making ethical decisions. Level of Difficulty: Easy Topic: Ethics)
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(p. 174; Figure 5.2) Level 1 business costs of ethical failures include
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A. government fines and penalties. (AACSB: Ethics Bateman - Chapter 05 #81 Blooms: Knowledge Learning Objective: 05-03 Outline a process for making ethical decisions. Level of Difficulty: Easy Topic: Ethics)
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(p. 176) McDonalds has changed the packaging of their sandwiches so that less waste is produced. They additionally use recycled paper to bag their products. McDonalds states that they are doing these types of things in order to make the earth a "nicer place to eat." From this information, we can conclude that McDonalds believes in
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D. corporate social responsibility. Corporate social responsibility is the obligation toward society assumed by business. It consists broadly of policies and practices that reflect business responsibility for some of the wider societal good. (AACSB: Ethics Bateman - Chapter 05 #84 Blooms: Application Learning Objective: 05-04 Summarize the important issues surrounding corporate social responsibility. Level of Difficulty: Hard Topic: Corporate Social Responsibility)
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(p. 176) To obey local, state, federal and relevant international laws defines ________ responsibility.
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B. legal (AACSB: Ethics Bateman - Chapter 05 #85 Blooms: Knowledge Learning Objective: 05-04 Summarize the important issues surrounding corporate social responsibility. Level of Difficulty: Easy Topic: Corporate Social Responsibility)
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(p. 176) Computer Geeks believes in and engages in meeting societal expectations whether or not written as law. The business serves as a drop-off location for recycling old computers and other electronic devices to do its part in keeping poisonous materials out of the landfills. Computer Geeks can be described as operating at which level of the pyramid of corporate social responsibility?
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C. Ethical Ethical responsibilities include meeting other societal expectations, not written as law such as serving as a drop-off point for recycling computers. (AACSB: Ethics Bateman - Chapter 05 #89 Blooms: Application Learning Objective: 05-04 Summarize the important issues surrounding corporate social responsibility. Level of Difficulty: Hard Topic: Corporate Social Responsibility)
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(p. 176; Figure 5.3) Which of the following is the "lowest" level of the pyramid of global corporate social responsibility and performance?
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A. Economic responsibility (AACSB: Ethics Bateman - Chapter 05 #91 Blooms: Knowledge Learning Objective: 05-04 Summarize the important issues surrounding corporate social responsibility. Level of Difficulty: Easy Topic: Corporate Social Responsibility)
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(p. 177) Office Depot gives a portion of their sales on school supplies to the customer's designated school. This donation to a community organization is an example of
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E. philanthropic responsibility Philanthropic responsibilities are additional behaviors and activities that society finds desirable and that the values of the business support. Examples include supporting community projects and making charitable contributions. (AACSB: Ethics Bateman - Chapter 05 #93 Blooms: Application Learning Objective: 05-04 Summarize the important issues surrounding corporate social responsibility. Level of Difficulty: Hard Topic: Corporate Social Responsibility)
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(p. 177) The goals of a transcendent education include which of the following?
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E. All of the above are goals of a transcendent education. A transcendent education has five higher goals that balance self-interest with responsibility to others: empathy, generativity, mutuality, civil aspiration, intolerance of ineffective humanity. (AACSB: Ethics Bateman - Chapter 05 #96 Blooms: Comprehension Learning Objective: 05-04 Summarize the important issues surrounding corporate social responsibility. Level of Difficulty: Medium Topic: Corporate Social Responsibility)
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(p. 177) Who wrote "The social responsibility of business is to increase profits?"
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B. Milton Friedman (AACSB: Ethics Bateman - Chapter 05 #99 Blooms: Knowledge Learning Objective: 05-04 Summarize the important issues surrounding corporate social responsibility. Level of Difficulty: Easy Topic: Corporate Social Responsibility)
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(p. 181) Some of the world's worst environmental problems are in
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E. China. Some of the world's worst environmental problems are in China, because of its rapid industrialization and its huge population and size.
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64. (p. 181) __________ has as its goal the creation of sustainable economic development and improvement of quality of life worldwide for all organizational stakeholders.
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C. Ecocentric management (AACSB: Ethics Bateman - Chapter 05 #103 Blooms: Knowledge Learning Objective: 05-06 Identify actions managers can take to manage with the environment in mind. Level of Difficulty: Easy Topic: The Natural Environment)
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(p. 182) Economic growth and development that meets present needs without harming the needs of future generations is known as
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C. sustainable growth (AACSB: Ethics Bateman - Chapter 05 #104 Blooms: Knowledge Learning Objective: 05-06 Identify actions managers can take to manage with the environment in mind. Level of Difficulty: Easy Topic: The Natural Environment)
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(p. 182) __________ is a process of analyzing all inputs and outputs, through the entire "cradle-to-grave" life of a product, to determine the total environmental impact of the production and use of a product.
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B. LCA (AACSB: Ethics Bateman - Chapter 05 #105 Blooms: Knowledge Learning Objective: 05-06 Identify actions managers can take to manage with the environment in mind. Level of Difficulty: Easy Topic: The Natural Environment)
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(p. 165-166) Bruce is using which ethical system for his decision making?
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A. Universalism Universalism states that all people should uphold certain values, such as honesty, that society needs to function. (AACSB: Ethics Bateman - Chapter 05 #117 Blooms: Application Learning Objective: 05-01 Describe how different ethical perspectives guide decision making. Level of Difficulty: Hard Topic: Ethics)
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(p. 168) The assessment of how decisions are evaluated in the company refers to the organization's
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B. ethical climate. The ethical climate of an organization refers to the processes by which decisions are evaluated and made on the basis of right and wrong. (AACSB: Ethics Bateman - Chapter 05 #122 Blooms: Comprehension Learning Objective: 05-02 Explain how companies influence their ethics environment. Level of Difficulty: Medium Topic: Ethics)
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(p. 171) Jimmy Joe seems to prefer which type of ethics program for the company?
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B. Compliance-based Compliance-based ethics programs are designed by corporate counsel to prevent, detect, and punish legal violations. These types of programs merely ensure moral mediocrity as Jimmy Joe is exhibiting. (AACSB: Ethics Bateman - Chapter 05 #123 Blooms: Application Learning Objective: 05-02 Explain how companies influence their ethics environment. Level of Difficulty: Hard Topic: Ethics)
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(p. 176) Gloria's presentation most likely centered on the decision to take which of the following actions?
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A. Production of goods and services that society wants at a price that perpetuates the business and satisfies its obligations to investors. Economic responsibilities of business are to produce goods and services that society wants at a price that perpetuates the business and satisfies its obligations to investors. (AACSB: Ethics Bateman - Chapter 05 #127 Blooms: Application Learning Objective: 05-04 Summarize the important issues surrounding corporate social responsibility. Level of Difficulty: Hard Topic: Corporate Social Responsibility)
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(p. 238) There is a difference between a small business and an entrepreneurship venture.
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TRUE Entrepreneurship occurs when an enterprising individual pursues a lucrative opportunity. A small business is defined as having fewer than 100 employees, being independently owned and operated, not dominant in its field, and not characterized by many innovative practices. (AACSB: Analytic Bateman - Chapter 07 #3 Blooms: Comprehension Learning Objective: 07-01 Describe why people become entrepreneurs and what it takes; personally. Level of Difficulty: Medium Topic: Entrepreneurship)
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(p. 238) A small business is often defined as having fewer than 100 employees, as well as being independently owned and operated.
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TRUE (AACSB: Analytic Bateman - Chapter 07 #4 Blooms: Knowledge Learning Objective: 07-01 Describe why people become entrepreneurs and what it takes; personally. Level of Difficulty: Easy Topic: Entrepreneurship)
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(p. 245) A franchisor is an innovator who has created at least one successful store and seeks partners to operate the same concept in other local markets.
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TRUE (AACSB: Analytic Bateman - Chapter 07 #14 Blooms: Knowledge Learning Objective: 07-02 Summarize how to assess opportunities to start new businesses. Level of Difficulty: Easy Topic: Entrepreneurship)
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(p. 251) Successful entrepreneurs anticipate difficulties and cushion their business to help it weather setbacks.
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TRUE Entrepreneurs are realistic about risk. (AACSB: Analytic Bateman - Chapter 07 #26 Blooms: Comprehension Learning Objective: 07-03 Identify common causes of success and failure. Level of Difficulty: Medium Topic: Entrepreneurship)
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(p. 255) Initial public stock offerings offer a way to raise capital through federally registered and underwritten sales of shares in the company.
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TRUE (AACSB: Analytic Bateman - Chapter 07 #30 Blooms: Knowledge Learning Objective: 07-04 Discuss common management challenges. Level of Difficulty: Easy Topic: Entrepreneurship)
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(p. 259) Social capital is a competitive advantage in the form of relationships with other people and the image other people have of you.
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TRUE (AACSB: Analytic Bateman - Chapter 07 #34 Blooms: Knowledge Learning Objective: 07-05 Explain how to increase your chances of success; including good business planning. Level of Difficulty: Easy Topic: Entrepreneurship)
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(p. 260) Today's large corporations are passive bystanders in the entrepreneurial explosion.
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FALSE Large corporations are more than passive bystanders in the entrepreneurial explosion. Even established companies try to find and pursue new and profitable ideas. (AACSB: Analytic Bateman - Chapter 07 #35 Blooms: Comprehension Learning Objective: 07-06 Describe how managers of large companies can foster entrepreneurship. Level of Difficulty: Medium Topic: Corporate Entrepreneurship)
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(p. 262) Bootlegging refers to official job assignments in which employees work to create new products and processes of their own choosing.
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FALSE (AACSB: Analytic Bateman - Chapter 07 #37 Blooms: Knowledge Learning Objective: 07-06 Describe how managers of large companies can foster entrepreneurship. Level of Difficulty: Easy Topic: Entrepreneurship)
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(p. 263) Entrepreneurial orientation is the tendency of an organization to identify and capitalize successfully on opportunities to launch new ventures by entering new or established markets with new or existing goods or services.
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TRUE (AACSB: Analytic Bateman - Chapter 07 #39 Blooms: Knowledge Learning Objective: 07-06 Describe how managers of large companies can foster entrepreneurship. Level of Difficulty: Easy Topic: Entrepreneurship)
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(p. 238) Ed McAlister was a manager at DRA Corporation, a company that produced household appliances. Ed had many innovative ideas for the company. He became frustrated and left the corporation to pursue his own business. His new business venture could be considered
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A. entrepreneurship. Independent entrepreneurs are individuals who establish a new organization without the benefit of corporate support. (AACSB: Analytic Bateman - Chapter 07 #41 Blooms: Application Learning Objective: 07-01 Describe why people become entrepreneurs and what it takes; personally. Level of Difficulty: Hard Topic: Entrepreneurship)
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(p. 242) Lark recently started her own business. She has nearly recreated a company she worked for when she was in college, except that she has great business acumen and has been able to run the company much more efficiently and thus profitably. Lark would best be classified as a
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C. manager/administrator. According to Figure 7.1, successful entrepreneurs are innovators and also have good knowledge and skills in management, business, and networking. In contrast, manager-administrators may be great at ensuring efficient operations but aren't necessarily innovators. (AACSB: Analytic Bateman - Chapter 07 #53 Blooms: Application Learning Objective: 07-01 Describe why people become entrepreneurs and what it takes; personally. Level of Difficulty: Hard Topic: Entrepreneurship)
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(p. 243) When creating a new business one should start with
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Many entrepreneurs and observers say that in contemplating your business, you must start with a great idea. (AACSB: Analytic Bateman - Chapter 07 #54 Blooms: Comprehension Learning Objective: 07-02 Summarize how to assess opportunities to start new businesses. Level of Difficulty: Medium Topic: Entrepreneurship)
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(p. 244) Howard Berke started Konarka Technologies to create solar cells in response to rising oil prices, which is an example of what category of possibilities when spotting opportunities?
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A. Economic dislocations Rising oil prices, which would be considered an economic dislocation, have spurred a variety of developments related to alternative energy or energy efficiency. (AACSB: Analytic Bateman - Chapter 07 #56 Blooms: Comprehension Learning Objective: 07-02 Summarize how to assess opportunities to start new businesses. Level of Difficulty: Medium Topic: Entrepreneurship)
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(p. 245) Laura is interested in running a business and wants to open the same type of store her sister has in another town, a Massage Bliss, a popular new chain. Laura wants to become a(n)
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D. franchisee. A franchisee is a partner in an entrepreneurial alliance who manages a new store of the same type in a new location according to the terms of the alliance with the franchisor. (AACSB: Analytic Bateman - Chapter 07 #57 Blooms: Application Learning Objective: 07-02 Summarize how to assess opportunities to start new businesses. Level of Difficulty: Hard Topic: Entrepreneurship)
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(p. 247) Which of the following characteristic(s) contribute(s) to entrepreneurs' success?
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E. All of the above are characteristics that contribute to the entrepreneur's success. Successful entrepreneurs have the following characteristics: commitment and determination, leadership, opportunity obsession, tolerance of risk, ambiguity, and uncertainty, creativity, self-reliance, and ability to adapt, and motivation to excel. (AACSB: Analytic Bateman - Chapter 07 #65 Blooms: Comprehension Learning Objective: 07-02 Summarize how to assess opportunities to start new businesses. Level of Difficulty: Medium Topic: Entrepreneurship)
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(p. 249) A product that represents a novel idea requiring little financial investment would be displayed in the __________ of the entrepreneurial strategy matrix.
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A. upper-left quadrant According to Figure 7.2, in the upper-left quadrant, innovation is high (ventures are truly novel ideas), and there is little risk. (AACSB: Analytic Bateman - Chapter 07 #66 Blooms: Comprehension Learning Objective: 07-02 Summarize how to assess opportunities to start new businesses. Level of Difficulty: Medium Topic: Entrepreneurship)
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(p. 249) Based upon the Entrepreneurial Strategy Matrix, which of the following products is most likely to have the highest risks and returns?
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C. New pharmaceutical drug In the upper-right quadrant in Figure 7.2, novel product ideas (high innovation) are accompanied by high risk because the financial investments and competition are great. A new drug or a new automobile would likely fall into this category. The possible risks and returns are highest in the upper right quadrant. (AACSB: Analytic Bateman - Chapter 07 #70 Blooms: Comprehension Learning Objective: 07-02 Summarize how to assess opportunities to start new businesses. Level of Difficulty: Medium Topic: Entrepreneurship)
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(p. 250) Entrepreneurs face failure in which of the following situations?
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E. In any organization. Entrepreneurs succeed or fail in private, public, and not-for-profit sectors, as well as in nations at all stages of development and of all political types. (AACSB: Analytic Bateman - Chapter 07 #71 Blooms: Comprehension Learning Objective: 07-03 Identify common causes of success and failure. Level of Difficulty: Medium Topic: Entrepreneurship)
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(p. 250) Census Bureau statistics indicate that most start-up businesses with employees are financed through
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C. personal assets or those of family. Recent numbers from the Census Bureau say that more than three-fourths of startup companies with employees were financed by entrepreneurs' own assets or assets of their families. (AACSB: Analytic Bateman - Chapter 07 #72 Blooms: Comprehension Learning Objective: 07-03 Identify common causes of success and failure. Level of Difficulty: Medium Topic: Entrepreneurship)
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(p. 250) The odds of survival of a small business decrease if
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E. the economy is weak. The odds of survival for a new venture improve if the venture grows to at least 10 or 20 people, has revenues of $2 million or $3 million, and is pursuing opportunities with growth potential. Also, good economic times may make it easier to start a company and to survive. (AACSB: Analytic Bateman - Chapter 07 #73 Blooms: Comprehension Learning Objective: 07-03 Identify common causes of success and failure. Level of Difficulty: Medium Topic: Entrepreneurship)
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(p. 252) _____________ are protected environments for new, small businesses offering low rents and shared costs.
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B. Business incubators (AACSB: Analytic Bateman - Chapter 07 #75 Blooms: Knowledge Learning Objective: 07-03 Identify common causes of success and failure. Level of Difficulty: Easy Topic: Entrepreneurship)
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(p. 252) Benefits of business incubators include
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D. access to shared services. Incubators offer benefits such as low rents and shared costs. Shared staff costs, such as for receptionists and secretaries, avoid the expense of a fulltime employee but still provide convenient access to services. (AACSB: Analytic Bateman - Chapter 07 #76 Blooms: Comprehension Learning Objective: 07-03 Identify common causes of success and failure. Level of Difficulty: Medium Topic: Entrepreneurship)
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(p. 254) Many entrepreneurs choose to open their own business because they want to "call their own shots." This trait is also a common source of difficulty for entrepreneurs because they also
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C. fail to delegate. As the business grows, entrepreneurs often hesitate to delegate work they are used to doing. Leadership deteriorates into micromanagement. (AACSB: Analytic Bateman - Chapter 07 #77 Blooms: Comprehension Learning Objective: 07-04 Discuss common management challenges. Level of Difficulty: Medium Topic: Entrepreneurship)
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(p. 255) ___________ are a way for a business to raise capital through federally registered and underwritten sales of shares in the company.
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A. IPOs (AACSB: Analytic Bateman - Chapter 07 #80 Blooms: Knowledge Learning Objective: 07-04 Discuss common management challenges. Level of Difficulty: Easy Topic: Entrepreneurship)
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(p. 256) An essential process in pursuing an entrepreneurial venture is planning. The first formal step is
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C. conducting an opportunity analysis. The first formal planning step is to do an opportunity analysis. (AACSB: Analytic Bateman - Chapter 07 #84 Blooms: Comprehension Learning Objective: 07-05 Explain how to increase your chances of success; including good business planning. Level of Difficulty: Medium Topic: Entrepreneurship)
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(p. 256) Which of the following is the fundamental reason for creating an opportunity analysis?
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D. To analyze whether or not to proceed The opportunity analysis, or opportunity assessment plan, focuses on the opportunity, not the entire venture. It provides the basis for deciding whether to act. (AACSB: Analytic Bateman - Chapter 07 #86 Blooms: Comprehension Learning Objective: 07-05 Explain how to increase your chances of success; including good business planning. Level of Difficulty: Medium Topic: Entrepreneurship)
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(p. 256) A business plan does not
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D. assure the success of the business. The business plan (1) helps determine the viability of your enterprise, (2) guides you as you plan and organize, and (3) helps you obtain financing. (AACSB: Analytic Bateman - Chapter 07 #88 Blooms: Comprehension Learning Objective: 07-05 Explain how to increase your chances of success; including good business planning. Level of Difficulty: Medium Topic: Entrepreneurship)
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(p. 260) As an organization grows, the successful entrepreneur will
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D. develop an effective top management team. Crucial to the success of a new business are nonfinancial resources, including the top-management team. (AACSB: Analytic Bateman - Chapter 07 #93 Blooms: Comprehension Learning Objective: 07-05 Explain how to increase your chances of success; including good business planning. Level of Difficulty: Medium Topic: Entrepreneurship)
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(p. 261) Established organizations' reactions to the recent rise in entrepreneurial activity is often
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C. to try to find and pursue new and profitable ideas. Large corporations are more than passive bystanders in the entrepreneurial explosion. Established companies try to find and pursue profitable new ideas in-house. (AACSB: Analytic Bateman - Chapter 07 #94 Blooms: Comprehension Learning Objective: 07-06 Describe how managers of large companies can foster entrepreneurship. Level of Difficulty: Medium Topic: Corporate Entrepreneurship)
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(p. 262) Guaranteeing the project's technical and political feasibility, often with a formal presentation to higher management, refers to which of the following stages for building support for an idea?
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E. Getting the blessing As the last step in building support for a project idea, you should get the blessing of relevant higher-level officials. This usually involves a formal presentation. You will need to guarantee the project's technical and political feasibility. (AACSB: Analytic Bateman - Chapter 07 #96 Blooms: Comprehension Learning Objective: 07-06 Describe how managers of large companies can foster entrepreneurship. Level of Difficulty: Medium Topic: Corporate Entrepreneurship)
