CH9&12&13&11&14 – Flashcards

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International markets must be pursued if firms want to remain
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competitive
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Peter Drucker has labeled the expanded global marketplace the
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transnational economy
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Which of the following is not a feature of the global economy?
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international laws governing fair trade
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The process by which firms increase their awareness of the influence of international activities on their future and establish and conduct transactions with firms from other countries is known as
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internationalization
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Economic integration of many formerly national economies into one worldwide economy is called
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globalization
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The center of the controversy that aligns rich nations against poor nations is
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what the trade rules will be, and who will write the rules
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Moving jobs that have historically resided in the home country to a lower-cost host country is called
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offshoring
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Which of the following countries was not an original participant in the NAFTA agreement?
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Puerto Rico
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The most challenging situation for an MNC to face is
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operating is less-developed countries.
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To be viewed as legitimate in their host countries, MNCs must fulfill their social responsibilities, including all of the following except
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Technological functions
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Which of the following is not a factor in a host country's perception of the legitimacy of an MNC?
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profitability of the firm
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The requirement for an MNC to take on local partners is referred to as
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creeping expropriation.
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Which of the following is not one the broad issues facing MNCs in their relationships with host countries?
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religious and other traditional holidays
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The main two factors of concern in management and control of global operations are
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organizational structure/design and human resource management.
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Richard Robinson suggests three levels of sensitivity that MNCs should exhibit for the long-run national interests of less-developed countries. All of the following are levels of sensitivity except
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the need to modify marketing efforts to conform to local custom.
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To resolve the infant formula controversy, Nestlè agreed to do all of the following except
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providing purified water with the formula
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Which of the following is not a characteristic of sweatshops?
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forced prostitution
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All of the following groups have criticized MNC labor practices except
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church groups.
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Which of the following is not an SA8000 standard proposed to improve sweatshop conditions?
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provision of educational opportunities for workers
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All of the following are proposed standards for the SA8000 program, to improve sweatshop conditions, except
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providing retirement benefits.
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The Alien Tort Claims Act allows
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foreign individuals to sue U.S. firms in American courts for their actions abroad.
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U.S. based MNCs are increasingly interested in cases brought under the Alien Tort Claims Act because
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they are increasingly being named as defendants in tort cases for doing business in countries with repressive governments.
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Which of the following is not an example of corruption?
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negotiating for the lowest price on a contract
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All of the following are arguments in support of bribery except
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it is a way of providing needy foreigners with money they need.
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Which of the following is not an argument commonly used against bribery?
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Bribes are unfair because foreigners can get them, while U.S. citizens cannot
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The Foreign Corrupt Practices Act
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makes it illegal for the representative of an American corporation to offer or pay officials of foreign governments for the purpose of getting or maintaining business.
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The Foreign Corrupt Practices Act allows
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grease payments.
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Payment of a bribe implies some type of
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quid pro quo.
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Which of the following is not part of the anticorruption movement?
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World Trade Organization
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The United States' rank in the Corruption Perception Index is
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somewhere in the middle.
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Recent instability and violence in certain foreign markets will result in all of the following effects except
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abandonment of existing operations
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The position that advocates that an MNC should continue to follow its home country's ethical standards even while operating in another country is known as
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ethical imperialism.
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The position that advocates that an MNC follow the host country's ethical standards is called
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ethical relativism.
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Which of the following is not one of George Enderle's types of global firms with respect to their use of home versus host country ethical standards?
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imperial
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Values that are acceptable to all cultures and organizations are called
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hypernorms
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A country's ethical norms that are inconsistent with at least some other countries' legitimate norms are called
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moral free space.
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Which of the following is not a strategy for improving global business ethics?
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imposing the home country's ethical standards on the host country
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The ethics and global strategy plan for improving global business ethics has as its central idea
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utilizing ethical standards as significant inputs into top-level strategy formulation and implementation
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An attempt to assess the underlying moral justifications for corporate actions and the consequent results of those actions are contained in
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ethical impact statements
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Richard DeGeorge's seven moral guidelines for global business are similar to
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hypernorms
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Which of the following is not a driver of the quest to improve product and service quality?
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legislation and regulation
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The two central issues of goods and services are
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quality and safety.
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All of the following are reasons given for the current obsession with quality except
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employee satisfaction
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Which of the following is not a dimension of quality listed in the textbook?
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status
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All of the following are dimensions of quality except
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objectivity
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The ethical theory based on the concept of duty that states that firms have a responsibility to comply with the terms of the sale, inform the customer about the product, not misrepresent anything, and not coerce the customer is
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contractual theory.
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The ethical theory based on the concept of duty that focuses on the relative vulnerability of the customer is
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due care theory.
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The ethical theory based on the concept of duty that suggests that if a product causes harm, the firm should pay the costs of any injury is
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social costs view.
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The legal view of "let the buyer beware" that prevailed in the 1800s was
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caveat emptor.
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The current legal view of "let the seller take care" is
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caveat vendor.
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Which of the following is not one of the top ten list of safety principles?
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Allow a margin of error for the consumer.
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All of the following are in the top ten principles of safety except
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encourage customers to try out the product before purchasing it.
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Which of the following is not an allegation commonly made in product liability suits?
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The product was produced under inhumane conditions.
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The primary responsibility for product safety lies with the
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producer.
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Which of the following is not one of the top consumer product categories most frequently associated with injuries requiring hospital treatment?
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automobiles
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Reasons to be concerned about product liability include all of the following except
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the number of trial attorneys being licensed.
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The legal principle that anyone in the value chain of a product is liable for harm caused to the user if the product as sold was unreasonably dangerous is
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strict liability.
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Due diligence means that a company
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has taken every possible precautionary step possible and followed all industry standards.
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The fact that a company is responsible for the harm done to customers by its product even if it can show that it did its best according to the state of the art in the industry at that time is called
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absolute liability.
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A company that is held responsible for the damage caused by its product in proportion to its percentage of industry sales is subject to
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market share liability.
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The Tylenol case in the 1980s, in which capsules were injected with cyanide, is an example of
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product tampering.
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Business claims that current product liability law suffers from all of the following problems except
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bias
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Which of the following is not a way in which the Consumer Product Safety Commission works to reduce the risk of harm from consumer products?
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lobbying Congress to pass new consumer protection laws
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The Consumer Product Safety Commission works to reduce the risk of harm from consumer products in all of the following ways except
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passing legislation outlawing products
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Early research conducted in the organization later known as the Food and Drug Administration fed small doses of poison to
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the "Poison Squad."
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The Food and Drug Administration regulates all of the following except
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personal care products.
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Which of the following is not part of the FDA's mission?
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to help identify and develop new foods and drugs
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The Food and Drug Administration is part of
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the Health and Human Services Department
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Which of the following is not an activity engaged in by the Food and Drug Administration?
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promotion
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Some people are trying to get the Food and Drug Administration involved in the regulation of
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dietary supplements
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Business's response to consumerism over time has been one of
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ineffective action, followed by improved responses.
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Today's consumers exhibit all of the following characteristics in dealing with business except
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forgiveness
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Businesses have responded to consumer activism with all of the following efforts except
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rebate and discount programs.
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Programs that attempt to blend all of the functions of a business into a holistic, integrated philosophy built around teamwork, productivity, and customer satisfaction are called
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total quality management programs.
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The focus of total quality management programs is
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the customer.
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The initial part of the total quality management process is to
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define quality in terms of customer expectations.
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An important criticism of total quality management is that it
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never did anything to define quality.
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The body of methodologies and techniques for achieving quality that focuses on the number of defects is called
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Six Sigma.
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One of the strengths of Six Sigma program's has been its
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clarity of process and the steps companies must take to adopt it.
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Six Sigma practitioners believe in fixing the ____ rather than the ____.
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process; product
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Anything that is internal or external to an entity is its
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environment
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The volume and intensity of use that can be sustained in a particular place and time is called
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carrying capacity.
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A measure of disorder of energy, indicating its unavailability for recycling for the same use, is
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entropy.
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All living and nonliving substances present in a particular place is a(n)
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ecosystem
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The role an organism plays in its natural community is its
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niche
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The continuous looplike movement of water, air, and various nutrients is a(n)
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cycle
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The point at which a particular phenomenon suddenly begins to be activated is the
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threshold
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Material or energy that has gone through a transformation process and is perceived as unwanted or devalued is
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pollution
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The inability of humans and nature to restore environmental conditions to a previous state within a relevant time frame is
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irreversibility
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The characteristic of an entity that is related to its ability to exist and flourish over an extended period of time is
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sustainability
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Which of the following is not commonly viewed as an existing natural environment problem
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light pollution
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All of the following issues are current environmental problems except
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volcanic activity.
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Human denial of responsibility for the misuse of the environment is reflected by:
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NIMBY
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The prevention of solar heat absorbed by our atmosphere from returning to space is known as
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the greenhouse effect.
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The secondary reason for the greenhouse effect is
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deforestation
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In the United States, the average weight of waste produced per person per day is about
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4.4 pounds.
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Which country releases 3.3 billion tons of carbon dioxide each year due to deforestation?
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Indonesia
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Problems made worse by deforestation include
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soil erosion. the greenhouse effect. moisture and nutrient ecosystem cycles.
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Endangered species are threatened with extinction due to all of the following reasons except
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drought
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A large number of children in developing countries suffer from chronic coughing due to
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air pollution.
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Precipitation containing harmful amounts of nitric and sulfuric acids
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is called acid rain.
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Indoor air pollution
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is becoming an increasing concern because most people spend the majority of their lives indoors.
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Energy inefficiency is a major concern
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in all countries.
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Chemicals or mixtures that may present unreasonable risks of injury to health or to the environment are called
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toxic substances.
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The number of oil spills reported worldwide in a typical year is
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around 14,000.
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Companies with strong environmental management are likely to outperform companies that have
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environmental liabilities.
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Reports of studies explaining and estimating the ecological ramifications of questionable practices and irreversible uses of resources and proposing detailed, reasonable alternatives to these practices and uses are
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environmental impact statements.
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One approach to resolving air pollution problems, intended to reduce a particular pollutant over an entire industrial region by treating all emission sources as if they were under one bubble is called
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emissions trading
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The purpose of Superfund legislation was to
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clean up hazardous waste dumps and spills.
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In the Montreal Protocol of 1987, most of the nations that produced or used CFCs agreed to
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a quick phase-out of CFCs
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Environmental interest groups and business have recently
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been reasonably cooperative with each other.
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Groups that employ violent acts that involve real or threatened damage to people or property in pursuit of environmental goals are called
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ecoterrorists
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Businesses are paying close attention to all of the following green groups except
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legislators
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Business that meets the need of the present without compromising the ability of future generations to meet their own needs is following principles of
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sustainability
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Which of the following is not a CERES principle
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cooperation with business and government
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CERES principles include all of the following except
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concentrate on industrialized countries
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Managers can use crisis management in the environmental area by focusing on:
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Prevention Contingency plans all of these
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Which of the following is not a principle of sustainable success?
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Your business should never use more than it can replace
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Paul Dolan formulated all of the following principles of sustainable success except
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Your business should never overextend in any area.
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A systematic approach to incorporating environmental issues into running a business is
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strategic environmental management.
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The ability of an organization to effectively identify, acquire, foster, and retain loyal profitable customers is
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customer relationship management.
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The one question that is the best measure of customer loyalty is
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would you recommend this product/service to a friend?
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Which of the following is not one of the rights in the consumer's Magna Carta?
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right to be protected
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A consumer's right to choose refers to
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the assurance that competition is working effectively.
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The right to be heard was listed as part of the consumer's Magna Carta because
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many consumers felt that they could not effectively communicate their desires and grievances to businesses
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The social movement that seeks to augment the rights and powers of buyers in relation to sellers is
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buyer beware. consumerism.
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Which of the following is not a lesson from the consumer movement?
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Consumers can force companies to change their behaviors through boycotts.
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The father of the consumer movement is
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Ralph Nader.
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Common consumer complaints include all of the following except
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lack of consumer credit
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The power held by consumers comes from
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grassroots involvement.
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The two major classifications of issues in the business/consumer relationship are
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product information and the product itself.
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Issues related to product information include all of the following except
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website design
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Which of the following is not a commonly recognized benefit of advertising?
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It lowers the price of goods and services.
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Information that is direct and straightforward, that is not deceptive or manipulative is
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clear.
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Information that communicates truths, and avoids exaggeration and innuendo is
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accurate
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Information that provides potential purchasers with enough information to make the best choice among the options available is
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adequate
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Advertising abuses include all of the following types except
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cynical depictions.
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Words that are inherently vague, without being misleading are referred to as
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weasel words.
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Use of plot placements involve
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placement of products part of the storyline of a television show.
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Advertising claims that cannot be substantiated by evidence are termed
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exaggerated claims.
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Puffery is another way of saying that a statement is an exaggeration that uses
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general superlatives.
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Which of the following is not a problem associated with exaggerated claims?
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They generally cost more to produce.
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Advertising that is designed to persuade on the basis of human emotions and emotional needs rather than reason relies on
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psychological appeals
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The practice of directly contrasting a firm's product with the product of a competitor is called
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comparative advertising.
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The fact that Abercrombie and Fitch terminated its sexually explicit catalogue is evidence that
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sex does not necessarily sell.
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The Children's Television Act was passed to
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prohibit the airing of commercials about products or characters during a show about those products or characters
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Which of the following is not part of CARU's guidelines for advertising directed toward children under the age of twelve
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consider the socioeconomic level of the audience
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CARU would object to tobacco ads directed toward children as a violation of which of its principles?
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products that are inappropriate for use by children should not be advertised to them
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The basic activity of CARU is
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to review and evaluate child-directed advertising in all media.
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The industry under the greatest attack for its marketing and advertising practices is
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cigarettes
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All of the following are significant issues in cigarette advertising except
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its aim at less-developed countries
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The fact that advertising can increasingly be found everywhere is referred to as
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ad creep
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Warranties were originally used by manufacturers to
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limit the length of time they were responsible for products.
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The traditional term that was used for advertising located in novel locations (now called ad creep) was
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ambient advertising
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An implied warranty is
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an unspoken promise that there is nothing significantly wrong with the product.
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A guarantee that is explicitly offered at the time of sale is called a(n)
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express warranty.
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The purpose of the Federal Packaging and Labeling Act of 1967 was to
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both prohibit deceptive labeling of certain consumer products and require disclosure of certain important information.
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The Federal Packaging and Labeling Act of 1967 is administered by the
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Federal Trade Commission.
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Which of the following is not a law that addresses information disclosure issues?
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Credit Collection Limitation Act
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The federal government's major body for ensuring that business lives up to its responsibilities is the
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Federal Trade Commission.
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Community involvement is most commonly manifested through
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donating the time and talents of its employees.
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Educational recipients of giving include each of the following except
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Student matching gifts
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The biggest change in corporate philanthropy since 2001 was its alignment with which of the following
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Each of these
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Companies can benefit from volunteer programs that they sponsor in all of the ways shown below except
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increasing productivity at work.
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Which of the following is not a way in which companies can benefit from volunteer programs?
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developing strong ties with local government officials
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Assessing a firm's competencies and determining where sharing them would accomplish the most good is an example of
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resource-based giving.
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Community involvement focuses on the contribution of
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employee time and talent.
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The central reason for community involvement is
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self-interest.
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Which of the following is not a reason commonly given for community involvement?
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a way to help employees build their resumès
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Being more systematic about the company's relationship with the community often results in developing a
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community action program.
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Steps in developing a community action program include all of the following except
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building bridges to the community.
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Selection of projects for a community action program grows out of
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matching community needs with company resources.
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Guidelines for developing a community involvement strategy include all of the following steps except
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decisions about which projects to undertake should take place at the highest levels of management.
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Which of the following is not a guideline for developing a community involvement strategy?
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The company should get involved in projects that will help it make more profit.
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Standards of excellence in corporate community involvement include all of the following except
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efficiency.
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Which of the following is not a standard of excellence by which corporate community involvement should be judged?
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crisis management
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In terms of community involvement, foreign direct investors have practices and viewpoints
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quite similar to those of U. S. firms
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Philanthropy, as it is used in the textbook, means
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business giving of financial resources.
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Which of the following is not a reason that some people want more transparency in corporate philanthropy
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to close tax loopholes
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The "third sector" is composed of
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non-profit organizations.
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Which of the following is not a category of corporate contributions programs?
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firms whose donations usually go to children's programs
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Of the portion of corporate philanthropy that goes to education, the majority of donations go to
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higher education.
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The primary reason given for support of higher education programs is
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to increase the pool of trained personnel.
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Fund-raising efforts by large non-profit organizations like United Way, who in turn donate funds to specific causes, are called
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federated drives
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Which of the following is not a category of recipient to whom corporations often give money?
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athletic teams
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Which of the following is a reason that corporate giving has slowed?
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all of these
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When a non-profit organization and a for-profit company join forces for their mutual advantages, they form a
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public purpose partnership
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An approach by which corporate giving is designed in a way that best fits with the firm's overall mission and goals is called
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strategic philanthropy.
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One way in which philanthropy can be made strategic is to
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bring contribution programs into sharper alignment with business endeavors.
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The direct linking of a business's product or service to a specified charity is
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cause-related marketing
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Cause branding is similar to cause-related marketing, but
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is a longer term commitment.
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Outsourcing refers to
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the use of outside resources to accomplish tasks that were once done in-house
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Employees might consider their roles in plant closings
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an extension of numerous employee rights issues.
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According to philosopher John Kavanagh, business's moral responsibility with a plant closing is to
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minimize negative externalities.
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Which of the following actions is not usually a viable alternative to closing a plant?
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seek tax breaks that will help profits
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Employee ownership of a business whose former owners were considering shutting it down
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is a difficult endeavor, with no assurance of success
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For employee ownership of a business to work
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employees must believe they have role to play in leading the company.
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After the decision to close a plant has been made, actions that management should take may include all of the following except
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announce the decision in the press before telling employees and community leaders.
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The Worker Adjustment and Retraining Notification Act (WARN) requires firms employing 100 or more workers to notify workers of a large layoff or shutdown at least ____ in advance
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sixty days
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Outplacement services seek to
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minimize cost and disruption to the company and maximize benefits to the displaced workers.
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