Bus 101 CH 3 & 4 – Flashcards
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One example of a business opportunity created by a concern for ethics and human rights is a company that created a technology to access Internet sites that have been censored by the Chinese government.
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True
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Legal compliance refers to conducting a business within the boundaries of all the legal regulations of that industry.
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True
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Situational ethics encourages people to ________.
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make ethical decisions based upon the circumstances of a particular experience, not upon fixed laws
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Which of the following is NOT a legal right under the Consumer Bill of Rights?
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the right to bear witness
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Value-based recruiting and hiring ________.
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involves attracting and employing people who match the company's corporate values
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If you are developing your own personal ethical system, which of the following would NOT be appropriate to include in your evaluation?
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your age
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Companies with a strong sense of corporate social responsibility are obligated to understand the ethical standards of their suppliers.
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True
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Sergeant Joseph Darby, who sent information to the U.S. Army Criminal Investigation Command that sparked an investigation that eventually revealed to the public the abuses at Abu Ghraib prison in Iraq, was immediately lauded as a hero and universally celebrated for his good deeds
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False
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When the wife of Mark Whitacre, who was involved in illegal activities at Archer Daniels Midland (ADM), threatened to divorce him if he did not end his involvement with the price fixing, she demonstrated an example of ________.
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strong personal ethics
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According to moral relativism ________.
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no single view is more valid than any other
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A company's track record of legal compliance can be used to evaluate a company's ethical conduct.
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True
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Low-level employees at companies that have ongoing ethics training programs learn how to decide whether to follow the advice of their leaders.
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True
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Actions like purchasing energy from wind farms and choosing suppliers that are ecologically friendly to balance out the necessary carbon dioxide produced in other stages of manufacturing are examples of how socially responsible practices can threaten the profitability of a company.
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False
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Consumers have only a given company's code of ethics and mission statement to evaluate the acts of the company and its potential legal violations.
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False
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The Equal Employment Opportunity Commission (EEOC) makes sure that all investors are treated fairly and have equal access to information about companies.
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False
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It is ethically unadvisable to create a hotline for employees to anonymously report violations of the ethics code and make sure the allegations are followed up on.
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False
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Milton Friedman is a proponent of the need for corporate social responsibility.
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False
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Corporate social responsibility is mainly concerned with how a company affects the ________.
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community
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The production of toxic materials is moving at an even pace with the growth of proper storage facilities and techniques, so disposal is well in hand and is becoming less expensive.
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False
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In business relations all of the following are influenced by our personal ethics EXCEPT ________.
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job titles
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At the Kaplan Thaler advertising agency, one of the firm's ethical principles is that their employees be empathetic.
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True
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Companies must uphold their moral and ethical obligations to consumers above their need to respond to investors.
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False
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Which of the following is an internal examination by a company to measure its performance in relation to corporate social responsibility?
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a social audit
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The Sarbanes-Oxley Act requires that ________.
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CEOs verify their companies' financial statements and vouch for their accuracy with the SEC
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When a community gives Walmart subsidies to attract them to the area and then the workers are paid so poorly that they have to apply for public assistance, this is an example of the failure of which of the pillars of corporate social responsibility?
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community and "good neighbor" policies
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When a magazine refuses to accept advertisements featuring "size zero" models on the grounds that it could encourage eating disorders in young women, this is an example of paying attention to which pillar of corporate social responsibility?
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marketing and consumer issues
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How do companies conduct a social audit?
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They conduct an internal systematic examination that measures and monitors the progress of the company in meeting its corporate social responsibility goals.
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Corporate social responsibility can be defined as a company's obligation to ________.
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conduct its activities with the aim of achieving social, environmental, and economic development
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In business relations all of the following are influenced by our personal ethics EXCEPT ________
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job titles
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When enough people feel that a particular ethical standard is important, it eventually becomes law.
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True
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Which of the following companies, formerly in the top 25 of Fortune magazine's 100 Best Companies to Work For, is no longer in business as the result of flagrant legal and ethical violations?
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Enron
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The Calvert Company assigns companies scores based on their performance in which of the following categories?
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community relations
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The practice of providing information to stockholders about corporate social responsibility and the ethical advances of a company is known as ________.
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self-reporting
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A business can improve its culture of ethics by ensuring that a strict code of ethics and a meaningful and current mission statement is in place and that both are clearly communicated to employees when they start working at an organization.
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True
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"Nice guys finish last." and "We must stand for right against wrong." are examples of ________.
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beliefs
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If a restaurant chain sells the use of its brand name to a Singaporean investor in exchange for a fee and a percentage of sales, the restaurant is entering a foreign market through exporting.
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False
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The U.S. total ban on importing Cuban cigars is an example of an embargo.
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True
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If the value of the nation of Nu's exports is greater than the value of its imports, Nu has a trade ________.
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surplus
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Cooperative arrangements between actual or potential competitors in which each partner retains its business independence are known as ________.
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strategic alliances
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Which of the following BEST demonstrates that different countries have different attitudes toward work?
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different vacation policies
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According to the theory of comparative advantage, if the United States and Mexico increase their trade with each other, the two countries will experience ________ standards of living.
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higher
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Global companies can still do business with countries that have nonconvertible currencies through the use of ________.
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countertrade
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Brazil has experienced rapid economic growth and increased sales of its products to other countries. This is an example of a(n) ________.
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growing role for developing nations
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An example of currency ________ would be if the value of the U.S dollar rises against the Malagasy ariary (the currency of Madagascar).
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appreciation
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A free trade area is a compact abolishing trade barriers among member countries.
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true
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________ is relatively easy and inexpensive compared with establishing a physical presence in a market, but it is not economical for heavy or bulky products with high transportation costs.
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Exporting
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A consumer products company competes around the world primarily by customizing or differentiating its products to meet unique local needs, tastes, or preferences. The company is using a ________ strategy
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multidomestic
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All of the following are legal challenges to conducting business in a foreign country EXCEPT ________.
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cross-cultural awareness
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Apple's selling iPhones to customers in Africa, Asia, and Europe is an example of the globalization of ________.
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markets
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A local content requirement is an example of an administrative trade barrier.
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True
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An American businessperson who demonstrates sensitivity to and appreciation for Chilean culture possesses ________.
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cross-cultural awareness
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If the nation of Epsilon places a tax on all grapes imported from the nation of Zeta, Epsilon has imposed a(n) ________.
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tariff
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The country of Kappa sells pizza for $1.00 each within its borders. But Kappa exports pizzas at a price of $0.30. This is an example of ________.
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dumping
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Which of the following is contributing to the acceleration of globalization?
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increasing democratization
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The cheap foreign labor argument for protectionism refers to ________.
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a lower wage often earned by many foreign workers
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Bribery is illegal all around the world.
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False
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International businesses prefer ________ economies to ________ economies because the bureaucratic hassles associated with government intervention drive costs up.
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free market; state-run
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A free trade area that includes Canada and the United States, but not Japan, is the ________.
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North American Free Trade Agreement (NAFTA)
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An agreement in which a domestic company's intangible property may be sold or made available to a foreign company in exchange for a royalty fee is called a ________.
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license
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U.S. exporters prefer a(n) ________ dollar.
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weak
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The oldest and largest free trade area in the world is ________.
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the European Union (EU)
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When the value of a country's imports exceeds the value of its exports, the country is said to have a trade deficit.
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True
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GATT stands for ________ on Tariffs and Trade.
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General Agreement
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The link between labor costs in China and the price of MP3 music players in the United States is an example of ________.
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globalization
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The purchasing of property and businesses in foreign nations is called globalization of markets.
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False
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The nation of South Pi is experiencing rapid increases in business activity, but still lacks sufficient infrastructure and modern communication systems. Which challenge to conducting international business is the PRIMARY one faced by exporters to Pi?
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economic growth and development
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Socioeconomic factors that must be considered by international companies include all of the following EXCEPT ________.
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unit labor cost
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When Mu Manufacturing Co. exports their technological know-how in exchange for a fee, they are entering foreign markets through a ________.
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turnkey project
