BUS 101 Exam 1 – Flashcards
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In the U.S. economy,__________ are considered the reward for the risk of entering business.
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Profits
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The factors of production in an economic system are________.
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Natural Resources, human resources, and capital.
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If it is not illegal, it also must be ethical.
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False
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Outsourcing refers to________.
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Using outside vendors to produce goods or fulfill services that were previously done in house.
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Tanisha is a diabetes educator at a local clinic. Recently she was offered a lavish trip by a sales rep that has been pushing the clinic to use their diabetic supplies. Tanisha declined the gift. Which ethical challenge did she face?
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Conflict of interest
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Your supervisor asks you to conceal information from outside auditors examining the company's financial records. What is your ethical challenge?
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Loyalty vs. Truth
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"Is it legal?"
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The first step when facing an ethical problem is to ask:
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Their customers
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Business have a responsibility to ______which includes: the right to be safe, the right to be informed, the right to choose, and the right to be heard.
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The Securities and Exchange Commission
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Regulations on financial reporting for business generally come from...
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They saw a conflict of interest.
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Success Management, an advertising company, currently prepares advertising layouts and campaign slogans for Burger King. Recently, they have been approached by McDonalds to help build a new marketing strategy for that firm as well. The management of Success refused the offer because:
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Corporate philanthropy
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When a firm donates supplies to a not-for-profit organization or contributes to cultural organizations, this is referred to as...
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Honesty vs. Integrity
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Serena's boss tells her in confidence that Julie will be laid off when the company announces a round of job cuts next week. Afterward, Julie asks Serena if there is any truth to the rumor of impending job cuts and if she knows anything about her status. What is Serena's ethical challenge?
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Questioning accounting practices
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Which of the following is an ethical issue dealing with a company and its direct relations with investors and the financial community?
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businesses can be held liable for their negligence involving their products.
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Under tort law, product liability is an area where:
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monetary compensation
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The remedy for a tort is:
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Statutory Law
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Chicago's mayor has just signed legislation requiring fire sprinklers in every public school. This is an example of:
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False
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When each party to a contract provides something of value to the other party, the principle of competence has been satisfied.
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They taught us in Business School that this model of supply chain management is correct.
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Which of the following represents a statement from a "Confused Fact-Finder"?
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Tort Laws
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The type of law that recognizes the inherent duties in the world of commerce and provides a way to correct problems?
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Contract Laws
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When a business decision maker deals with Suppliers they are mostly governed by this type of law.
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False
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If Mary agrees to give Tom her used textbook at the end of the semester they have a contract?
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Tort Law
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Miguel Hernandez and his 5 year old daughter Amelia were shopping in Wal-Mart one day. Amelia was too big to fit in the baby seat, so crawled under the shopping cart to ride on the undercarriage. An employee rounded a corner too fast and banged into Miguel's cart. Amelia's hand got caught in the wheel was injured requiring stitches. This type of case is most likely to fall under:
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employee / employer
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Which of the following does NOT represent a principal/fiduciary relationship?
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reimbursement
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A fiduciary must abide by each of the following obligations EXCEPT __________.
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False
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The business decision maker has a fiduciary responsibility to society.
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Every stockholder is a stakeholder
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Which of the following statements is accurate?
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managerial view
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The view of the firm that recognizes suppliers, customers, employees, and owners as stakeholders is the
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Community, suppliers, Owners
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Which group is a stakeholder group we consider?
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True
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Not all stakeholder groups have a stake in each business decision.
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False
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In the Nike Case, Nike's Business practices were illegal.
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Biased jumper
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Most political speech is considered to be on what critical thinking level
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Is able to pick a plan from many, Is able understand that the plan may need to be changed, Understand the value of analysis
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A strategic revsioner:
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Understand the value of analysis
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A perpetual analyzer:
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Customers and Government
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What if the following is not a stakeholder group
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Maximizing profits
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The economic responsibility that firms owe to their stockholders refers to
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A separation of ownership from control
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The main reason that the production view of the firm evolved into the managerial view of the firm was
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Deep analysis of the an issue, looking at consequences, assumptions and implications of a problem, recognizing multiple perspectives of an issue
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Critical thinking requires....
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This is an example of a Perpetual Analyzer
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"It is possible that we will be out of oil in 20 years, but we should do more research before we make any policy decision..."
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The firm recognizes the importance of a wide variety of stakeholders, but has fiduciary responsibility only to shareholders.
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Which of the following describes the synthesis approach to stakeholder management?
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Hiring a firm to clean up your offices at night.
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Which of the following is an example of outsourcing?
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Community because the group had an interest in Nikes practices
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In the Nike Case which we discussed in class the AFL-CIO represented which group of stakeholders?
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False because there are a number of competing decision- making frameworks.
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Stakeholder theory is universally accepted as the model for business decision-making.
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Has an interest in many of the business decisions that are made making it a stakeholder.
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Customers as a group:
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None of the above...
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Which of the following is an example of the principle of Work-at-will?
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: )
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