Business Ethics Practice Quizzes (7-12)

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The caring culture exhibits high concern for people but minimal concern for performance issues.
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Which of the following statements is correct?
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Culture can be changed easily and quickly.
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Which is NOT a characteristic of culture?
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Centralized
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A _____ organizational structure is best for organizations in which processes are routine and the division of labor is very well-defined. These organizations have a lot of formal rules, policies, and procedures.
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Legitimate Power
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What kind of power stems from a belief that a certain person has the right to exert power over others?
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Exacting
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What type of culture shows little concern for individual people, but a high concern for performance?
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The shared beliefs top managers in a company have about how they should manage themselves and other employees, and how they should conduct their business.
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What is the definition of corporate culture?
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Few and informal rules
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Which of the following is NOT a characteristic of a centralized organization?
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Referent power
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Which of these powers may exist when a person believes that his/her goals are similar to another’s?
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Apathetic
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Which type of culture shows minimal concern for either people or performance?
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Integrative
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A(n) _____ culture combines a high concern for people with a high concern for performance.
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False
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Unfortunately, in today’s competitive world, a company’s history and unwritten rules are not part of its corporate culture.
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True
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Corporate culture is exhibited through the behavioral patterns, concepts, documents such as codes of ethics, and rituals that emerge in an organization.
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Compliance
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Which of the following utilizes a legalistic approach to ethics and uses laws and regulations to create its codes and requirements?
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Coercive
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_____ power is essentially the opposite of reward power in that it penalizes actions or behavior instead of rewards it.
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Decentralized
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In which type of organization is decision making delegated as far down the chain of command as possible?
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A code of ethics
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To be effective, ethics training first must start with a foundation that includes
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Leaving clear opportunities for employees to engage in unethical behaviors.
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Keys to successful ethics training include all but:
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Transferring their “American” programs to the firm’s international operations
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A common mistake that U.S.-based multinational firms make when developing an ethics and compliance program for international offices is:
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Organizations can influence ethical behavior by hiring people with high ethical standards and developing an ethical corporate culture.
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Which of the following statements best describes the primary implication of “bad apple-bad barrel” theory?
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Financial reporting
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What did the Sarbanes-Oxley Act put more pressure on ethics officers to monitor?
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Making government laws related to business ethics
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All of the following are responsibilities of an ethics officer EXCEPT:
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Improving the firm’s ethical standards.
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Fostering ethical decisions within an organization requires eliminating unethical persons and
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True
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Programs designed to foster ethical behavior are more controversial today because unethical and illegal business conduct continues to occur, even in organizations that have implemented the programs.
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Making ethical decisions on behalf of managers and the board of directors so that they do not have to think about ethical issues.
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All of the following are responsibilities of ethics officers EXCEPT:
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Shared values
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What do values orientation strives to develop?
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While having a latte at Starbucks, you run into a friend who works as a salesperson at a competing firm. Your friend winds up chatting about how there is going to be a change in management at her firm. When you get back to your office, you tell your supervisor what you heard.
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Which of the following scenarios is unethical but not illegal?
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False
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Software is becoming popular in helping to prevent misconduct because it provides reports of employee concerns, complaints, or observations of misconduct that can then be tracked and managed.
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are formal statements that describe what an organization expects of its employees.
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Codes of conduct and codes of ethics
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False
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Companies that experience ethical misconduct disasters almost never recover from them.
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Customers
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Which of the following is NOT an aspect of the Open Compliance Ethics Group (OCEG) framework?
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Improved relationships with stakeholders who desire transparency.
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What is one of the greatest organizational benefits of conducting an ethics audit?
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Securing the commitment of the firm’s top management and board of directors.
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What is the first step in conducting an ethics audit?
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Companies with fewer resources
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The Better Business Bureau’s International Torch Award for Marketplace Ethics may be useful to help what type of companies with their ethics audit?
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Verify the results yourself or by a co-worker
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Which of the following is not part of the framework for an ethics audit?
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Objective reporting
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Both ethics auditing and financial auditing employ:
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Regularly
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When should ethics audits and financial audits be conducted?
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True
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Employee turnover is a useful indicator for assessing employee issues.
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The content of the code of ethics
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Which of the following items do NOT have a strong impact on whether an ethics program is successful?
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Systematic evaluation of an organization’s ethics program and/or performance to determine its effectiveness.
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An ethics audit is a:
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Six sigma
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Which of the following is a means of measuring process variations that cause defects considered unacceptable deviations from the mean or target?
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Avoidance of fines in case of an infraction.
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The strategic importance of ethics auditing includes all of the following EXCEPT
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Help desk
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Which of the following reporting methods is a point of contact within an organization where employees and managers can voice their concerns and receive assistance from the most appropriate person in the firm to handle the situation?
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Bimodal wealth distribution
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What results when the middle class shrinks, leaving a nation with its wealth concentrated among the very rich and with large numbers of poor people?
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risk compartmentalization
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When various profit centers within corporations become unaware of the overall consequences of their actions on the firm as a whole it is called:
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John Maynard Keynes
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Who was one of the fathers of capitalism that believed the state could stimulate economic growth and improve stability in the private sector through such measures as controlling interest rates, taxation, and public projects?
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Global Compact
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Which organization was developed by the UN and asks businesses to adhere to human rights and labor standards defined in international treaties?
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False
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Laissez-faire capitalism occurs when various profit centers within corporations are unaware of the consequences of their actions on the firm as a whole.
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When companies charge high prices for products sold in their home markets while selling the same products in foreign markets at low prices that do not cover all the costs of exporting the products, the practice is known as dumping.
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Of the following statements, which is correct?
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Self-reference criterion.
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The unconscious reference to one’s own cultural values, experiences, and knowledge is called:
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Global business
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Which of the following brings together people with different cultures, values, laws, and ethical standards?
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International monetary fund.
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Which of the following is the international coordinator of regulatory policy for the world and makes short-term loans to member countries with deficits and provides foreign currencies to its members?
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Business for social responsibility
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Companies such as Coca-Cola, Hewlett-Packard, and Walmart support a globally based resource system called __________, which tracks emerging issues and trends, provides information on corporate leadership and best practices, conducts educational workshops and training, and assists organizations in developing practical business ethics tools.
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Global Compact
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Which organization was developed by the UN and asks businesses to adhere to human rights and labor standards defined in international treaties?
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Increasingly global affluence and consumer desire for quality products.
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All of the following are major global ethical risks EXCEPT:
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John Maynard Keynes
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Who was one of the fathers of capitalism that believed the state could stimulate economic growth and improve stability in the private sector through such measures as controlling interest rates, taxation, and public projects?
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WTO
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Which organization was established in 1995 at the Uruguay round of negotiations?
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Rational economics
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Which of the following is based on the assumption that people are predictable and will seek to maximize the utility of their choices relative to their needs and wants?
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True
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Wal-Mart’s annual revenues are greater than the GDPs of most of the countries in the world.
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Leadership
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The ability or authority to guide and direct others toward a goal is called:
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False
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Ethical leadership is possible without effective communication.
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Gain trust and commitment of organizational members.
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With regards to leadership styles that influence ethical decisions, the challenge for leaders is _______________________, which is essential if organizational leaders are to steer their companies toward success.
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Top management.
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_________ provide a blueprint for what a firm’s corporate culture should be.
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Realize.
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All of the following represent steps in the RADAR model EXCEPT:
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Employees.
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Many of the day-to-day decisions in a firm are made by:
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True
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Organizational culture emerges whether or not there is effective leadership.
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The authoritative leader
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Which type of leader inspires employees to follow a vision, facilitates change, and creates a strongly positive performance climate? This type of leader is considered to be the most effective.
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Working for a company with ethical leaders can raise costs for the firm as well as serve to decrease employee productivity
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With regards to benefits of ethical leadership, which statement is incorrect?
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Compliance, integrity.
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Ethical leaders generally adopt one of two approaches to leadership: a _________-based approach or a(n) ________-based approach
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Leader-follower congruence.
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_____________occurs when the leaders and followers share the same vision, ethical expectations, and objectives for the company.
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Experience
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Ethical leaders need both knowledge and ___________ to make the right decisions.
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working for a company with ethical leaders can raise costs for the firm as well as serve to decrease employee productivity.
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With regards to benefits of ethical leadership, which statement is incorrect?
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Authority
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Traits of strong leaders include all of the following EXCEPT:
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Guarding
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Conflict management styles include all of the following EXCEPT:
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Coercive communication
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Which of the following is not a category of communication?
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Deals with issues that could cause public relations problems.
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With regards to strategic approaches to environmental issues, all of the following relate to firms having a high commitment except which statement?
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Kyoto Protocol
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One attempt at addressing global warming was _______, created in 1997. It was an international treaty meant to curb global greenhouse gas emissions by having countries voluntarily reduce national outputs.
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Cancun package
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In 2010, most of the world’s nations agreed to a package of climate initiatives called ________. This agreement called for industrialized countries to cut their greenhouse gas emissions and pay into a $100 billion a year green fund to help poorer countries.
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All of these are common questions asked of companies.
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With regards to sustainability, which of the following is not a common question asked of companies?
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Water pollution
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____ is one of the biggest contributors to illnesses in developing countries.
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Gas power.
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Alternative sources of energy include all of the following EXCEPT:
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Deals with issues that could cause public relations problems
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With regards to strategic approaches to environmental issues, all of the following relate to firms having a high commitment except which statement?
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Reducing alternative energy sources.
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All of the following are sustainable business practices that show social commitment EXCEPT:
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Firms can focus more upon their own efforts as a distinct unit rather than on the entire supply chain
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Which is not a benefit of a firm “going green”?
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Pollution Prevention Act
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The _______ focuses on reducing pollution through cost-effective changes in production, operation, and raw materials use. Practices include recycling, source reduction, sustainable agriculture, and other practices that increase efficiency in the use of energy, water, or other natural resources and protect resources through conservation.
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False
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Environmental advocates ensure that shoppers are adequately informed about the environmental impact of the products they buy.
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Greenwashing
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__________ involves misleading a consumer into thinking that a product or service is more environmentally friendly than it really is. It can range from making environmental claims that are required by law and are therefore irrelevant (CFC-free) to puffery, or exaggerating environmental claims, to fraud.
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Sustainability
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___________ includes the assessment and improvement of business strategies, economic sectors, work practices, technologies, and lifestyles while maintaining the natural environment.
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Recycling
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____________ is the reprocessing of materials, especially steel, aluminum, paper, glass, rubber, and some plastics, for reuse.
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False
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Alternative energy sources have significantly increased the carbon footprint of communities, cities, and even countries.
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Biofuels
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The most controversial form of alternative energy is:

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