question

A global company can be headquartered anywhere, but all employees come from the organization's home country.

answer

False

question

The most precious resources of an organization are people's expertise, skills, wisdom, and relationships.

answer

True

question

Innovation is the introduction of new goods and services.

answer

True

question

The need for innovation is driven in part by globalization.

answer

True

question

An approach to achieving total quality includes preventing defects before they occur.

answer

True

question

Aesthetics, while important to customers, are not considered an aspect of quality.

answer

True

question

Service is the speed and dependability with which an organization delivers what customers want.

answer

True

question

Corporate speed means being fast to respond to both your customers and the competition.

answer

True

question

The organizing function of management is more dynamically described as delivering strategic value.

answer

False

question

Emotional intelligence involves the skills of understanding and managing oneself, and dealing effectively with others.

answer

True

question

Which of the following is one of the ongoing challenges that characterize the current business landscape? A. Uniformity of offerings B. Technological change C. Quality D. Cost competitiveness E. Speed

answer

B. Technological change

question

The change from a local to a global marketplace is: A. irrelevant to today's business environment. B. irreversible. C. not necessary to remain competitive. D. slowing down. E. no different than it has been over the last three decades.

answer

B. irreversible.

question

Which of the following is true of globalization? A. Only small companies are affected by it. B. Only large companies are affected by it. C. A company's talent should come only from within the country. D. A company's talent can come from anywhere. E. The global marketplace is stable and unchanging.

answer

D. A company's talent can come from anywhere.

question

Which of the following statements is true about the Internet? A. It has reduced threats to most businesses. B. It drives down costs. C. It does not influence globalization. D. It slows down globalization. E. It slows down decision making because large amounts of information are available.

answer

B. It drives down costs.

question

Which of the following statements is true of collaboration? A. Collaboration occurs only within the boundaries of an organization. B. A sole focus on unit performance spurs collaboration. C. It is unrealistic to think that a company can collaborate with its customers. D. Companies should capitalize on ideas generated within the organization alone. E. Collaboration is an important process of knowledge management.

answer

E. Collaboration is an important process of knowledge management.

question

_____ allows people to live and work in ways that can be maintained over the long term without depleting or harming the environmental and economic resources. A. Sustainability B. Total quality C. Innovation D. Collaboration E. Cost competitiveness

answer

A. Sustainability

question

Which of the following statements is true of the sources of competitive advantage? A. The best companies choose one source of competitive advantage and perfect it. B. Managing the sources of competitive advantage is a zero-sum game where one source suffers at the expense of the other. C. It is possible to improve quality and also enhance speed. D. Trade-offs do not occur among the six sources of competitive advantage. E. Sustainability is the speed and dependability with which an organization delivers what customers want.

answer

C. It is possible to improve quality and also enhance speed.

question

Biomark Software Inc. has recently started operations as a business. The managers have already determined their objectives and have decided on the field of activity they will be dealing in. They have now started to attract people to work for them and have started determining the responsibilities of workers. Which of the following management functions are Biomark's managers performing? A. Planning B. Organizing C. Leading D. Optimizing E. Budgeting

answer

B. Organizing

question

Lorenzo is a general manager for Perry Corp., a mechanical engineering firm. He is considering some changes to the production floor which include layout adjustments and the purchase of new equipment to improve efficiency. He also wants to promote one of his employees to a higher post of assistant manager. Which of the following functions of management is Lorenzo performing? A. Planning B. Training C. Leading D. Organizing E. Budgeting

answer

D. Organizing

question

As one of the key management functions, leading focuses on a manager's efforts to: A. mobilize people to contribute their ideas. B. build organizations that are flexible and adaptive. C. make sure goals are met. D. identify opportunities for sustainable advantage. E. build a dynamic organization.

answer

A. mobilize people to contribute their ideas.

question

The three levels of managers within large organizations are: A. authoritative, permissive, and submissive. B. managerial, functional, and direct. C. technical, functional, and departmental. D. upper level, top management, and functional. E. top, middle, and frontline.

answer

E. top, middle, and frontline.

question

As a manager at Prescott Fine Jewelry, Jerald Walker spends most of his time training new sales managers and making sure that information coming from headquarters reaches the company's branches. In this case, Jerald would best be described as a(n) _____ manager. A. frontline B. tactical C. operational D. top-level E. strategic

answer

B. tactical

question

Lower-level managers who supervise the operational activities of an organization are known as: A. frontline managers. B. middle managers. C. top-level managers. D. tactical managers. E. strategic managers.

answer

A. frontline managers.

question

Titles such as sales manager and supervisor typically belong to the _____ level of management. A. strategic B. middle C. primary D. operational E. tactical

answer

D. operational

question

A(n) _____ skill is the ability to perform a specialized task that involves a certain method or process. A. conceptual B. administration C. interpersonal D. communication E. technical

answer

E. technical

question

Which of the following roles involves performing symbolic duties for an organization, like attending ceremonies? A. Disseminator B. Spokesperson C. Liaison D. Figurehead E. Disturbance handler

answer

D. Figurehead

question

Which of the following roles is performed by a customer service manager who works to defuse a situation with an angry customer? A. Liaison B. Disturbance handler C. Negotiator D. Disseminator E. Figurehead

answer

B. Disturbance handler

question

Which of the following skills are more important during the beginning of a person's career? A. Conceptual skills B. Decision skills C. Technical skills D. Entrepreneurial skills E. Statistical skills

answer

C. Technical skills

question

Individuals' conceptual and decision-making skills: A. are most important early in their career. B. involve the ability to perform a specialized task using a specific method. C. are often referred to as people skills. D. become less important to them as they rise higher in the company. E. become more important to them as they grow in the company.

answer

E. become more important to them as they grow in the company.

question

A common complaint about leaders, especially those who are newly appointed, is that they lack: A. self-acceptance. B. empathy. C. the ability to receive feedback from subordinates. D. decision-making skills. E. self-control.

answer

B. empathy.

question

Being self-reliant means individuals should: A. take full responsibility for themselves and their actions. B. be open minded and responsive when others have innovative ideas. C. always wait for orders from higher management in the organization. D. trust that the organization will manage their career. E. respond to the environment before orders come from higher management in the organization.

answer

A. take full responsibility for themselves and their actions.

question

Goodwill stemming from social relationships is called: A. social empathy. B. social capital. C. emotional intelligence. D. emotional capital. E. social value.

answer

B. social capital.

question

Scenario A. Mensfield is a longstanding men's clothing line manufacturer. The company has been operating for the past decade and is well known. When interviewed by a local newspaper who asked her what her secret of success was, the CEO, Jessica, stated that she made sure that she always introduced new styles of clothing lines to suit the changes in the market and stay a step ahead from her competitors. She offers the best to her customers by using the best fabric that she can get. Jessica also stated that the salespersons cater to every customer individually and help them with purchasing what suits them best. She said that Mensfield also has its own exclusive website which can be accessed anywhere in the world and that customers get their order in 36 hours no matter where they are. In addition to all this, Jessica is personally responsible for keeping in touch with the suppliers and managing and acquiring new business deals for the company. Which of the following success drivers of performance is Jessica using by constantly changing and introducing new styled clothing lines to match the changing trends in the market and staying a step ahead of competitors? A. Speed B. Innovation C. Quality D. Service E. Cost competitiveness

answer

B. Innovation

question

Scenario D. Chromatic Corp. is a leather manufacturing company. Chris, the CEO, makes all the business deals for the company. He negotiates with clients and gets new clients and business for the company. Chris communicates his vision for the company and what he would like to achieve to David, who lays out plans to make possible the execution of that vision. David delegates the work accordingly by communicating to the sales and accounting managers the vision of their CEO and what is required of them. Mark, a floor manager, makes sure that the workers do their work at the required pace to meet the targets and goals of the company. By creating objectives and communicating them to the rest of the organization, David is performing the function of a _____ manager. A. strategic B. operations C. frontline D. tactical E. top-level

answer

D. tactical

question

In Scenario D, Mark, the floor manager, is a _____ manager. A. strategic B. tactical C. middle D. top-level E. frontline

answer

E. frontline

question

An organization's macroenvironment includes its customers and suppliers.

answer

False

question

When investors bid up stock prices, companies have less capital to fuel their strategies.

answer

False

question

Population growth is unrelated to the size and composition of the labor force.

answer

False

question

Family leave, flexible working hours, and child care assistance have been introduced as a result of the evolving societal trends.

answer

True

question

Environmental uncertainty refers to the lack of information needed to understand or predict the future.

answer

True

question

Organizations are _____ systems, which means that they are affected by and in turn affect their external environments. A. input B. output C. open D. closed E. social

answer

C. open

question

The immediate environment surrounding a firm is known as its: A. macroenvironment. B. demographic environment. C. competitive environment. D. internal environment. E. economic environment.

answer

C. competitive environment.

question

_____ are specific government organizations in a firm's more immediate task environment. A. Open systems B. Regulators C. Prospectors D. Stakeholders E. Defenders

answer

B. Regulators

question

Which of the following is an element of Michael Porter's model for analyzing the competitive environment of an organization? A. Substitutes B. Cost strategy C. Societal trends D. Regulatory forces E. Demographics

answer

A. Substitutes

question

Which of the following is an example of a potential substitute product? A. Hand sanitizer for soaps B. Ink cartridges for printers C. Mops for detergent D. iTunes for iPods E. Furniture for apartments

answer

A. Hand sanitizer for soaps

question

Which of the following combinations can result in a best-case scenario? A. Many competitors, high threat with few entry barriers, and few customers B. Many competitors, high threat with few entry barriers, and many customers C. Few entry barriers, many substitutes, many customers D. High industry growth, low threat with many entry barriers, and customers with low bargaining power E. Low industry growth, high threat with few entry barriers, and suppliers with low bargaining power

answer

D. High industry growth, low threat with many entry barriers, and customers with low bargaining power

question

The method for predicting how variables will change in the future is known as _____. A. budgeting B. buffering C. forecasting D. benchmarking E. scanning

answer

C. forecasting

question

Which of the following is true about using forecasts? A. Multiple forecasts are best, and their predictions can be averaged. B. Forecasts become more accurate while predicting further into the future. C. Forecasts are useless when the future will look radically different from the past. D. The more complex the forecast, the more accurate are the predictions. E. The accuracy of forecasts does not vary from one application to another.

answer

A. Multiple forecasts are best, and their predictions can be averaged.

question

To improve customer service in its overseas call center, Jansen Electronics decided to investigate the call center practices of competing companies. The team discovered that a smaller company, Gorilla Devices Inc., seemed to have outstanding customer service. The team then determined differences between the organizations and developed a plan to incorporate the best elements of Gorilla into Jansen. This illustrates _____. A. environmental dynamism B. benchmarking C. strategic maneuvering D. cooperative action E. forecasting

answer

B. benchmarking

question

Candace recently got promoted to a managerial role in a bureaucratic organization. The industry had been changing dramatically, and Candace suggested that the management team encourage employees to develop confidence by giving them some control and authority in order to create a more flexible, adaptable organization. Here, Candace is suggesting the use of _____ with employees. A. smoothing B. benchmarking C. empowerment D. cooptation E. coalition

answer

C. empowerment

question

Leveling normal fluctuations at the boundaries of the environment is called _____. A. buffering B. smoothing C. flexible processing D. empowerment E. coalition

answer

B. smoothing

question

The set of important assumptions about an organization and its goals and practices that members of the company share is called organization _____. A. culture B. design C. climate D. layout E. structure

answer

A. culture

question

Which of the following statements about organizational culture is true? A. Corporate mission statements are always a true expression of a firm's culture. B. Who is hired and fired and why indicate the firm's real value and are a clue to the culture. C. A firm with a strong culture will have different people holding different values. D. A culture that was advantageous in a prior era continues to be so in a new environment. E. It is unnecessary to consider culture when considering a merger.

answer

B. Who is hired and fired and why indicate the firm's real value and are a clue to the culture.

question

Scenario A. Connie's Collectibles is a small retail store that specializes in antique jewelry. In analyzing the environment, Connie has uncovered the following interesting findings: 1. Connie has recently purchased more inventory than in the past. The people from whom she buys are selling off more jewelry because their children are not interested in this type of jewelry and they would prefer to liquidate their jewelry to help them with their daily expenses since they no longer wear most of it. 2. Connie discovered that her business is in a historical preservation district. As she considers remodeling the shop, she realized that she must pay attention to the guidelines set forth in the governing laws. 3. Connie's buyer-customer base seems to be changing. The tastes of the younger generation near her shop are shifting to modern jewelry, so the customer base to which she sells is shrinking. 4. Connie has been told that she should consider selling her inventory via the Internet, but she does not own (or understand how to use) a computer. 5. In reading a survey of regional business, Connie discovered that there are no other antique jewelry stores within a 200-mile radius of hers. The information that Jack has collected in his competitive analysis can be referred to as _____. A. corporate espionage B. competitive intelligence C. domain selection D. strategic vision E. mission statement

answer

B. competitive intelligence

question

Scenario D. Margarita works for a small company that deals with processed and canned tomatoes and other vegetables. She reports to the CFO. It is her job to predict the costs of raw materials for the next five years. She uses various research sources, including the news, to learn who the competitors are and what they have been doing. In fact, she subscribes to an analyst e-newsletter that tells her about crop availability and weather conditions all around the globe. Every month she develops a spreadsheet for her boss indicating the likely costs of vegetables given the type of weather conditions expected in each area of the world and thus the availability of particular crops. She is also involved in a team that is investigating how to cut canning costs. They have recently met with Good Cans, a company that manufactures and cans tennis balls. Good Cans is considered the top company in the canning industry, especially in canning process knowledge. Margarita's team is comparing their processes to those of Good Cans to see how they might improve. When predicting the costs for her company, Margarita is engaging in _____. A. forecasting B. competitive intelligence C. environmental scanning D. benchmarking E. scenario development

answer

A. forecasting

question

A firm's competitive environment includes new entrants, substitutes, and rivals.

answer

True

question

Regulatory agencies set rules but are typically weak institutions since they do not have the power to investigate company practices or to take legal action to ensure compliance with the law.

answer

False

question

A more diverse workforce presents managers with challenges as well as opportunities.

answer

True

question

As a first step in understanding their competitive environment, organizations must analyze how the competitors compete.

answer

False

question

A barrier to entry is a condition that prevents customers from using a firm's products or services.

answer

False

question

Organizations are at a disadvantage if they become overly dependent on any powerful supplier.

answer

True

question

Needing to learn a new software program as a result of changing suppliers is an example of a switching cost.

answer

True

question

Cognitive intelligence is the information that helps managers determine how to compete better.

answer

False

question

Benchmarking means identifying the best-in-class performance by a company in a given area and then comparing one's processes to theirs.

answer

True

question

In an organization, buffering refers to leveling normal fluctuations at the boundaries of the environment.

answer

False

question

Organizations are open systems that affect and are affected by their external environments.

answer

True

question

The external environment includes all relevant forces outside an organization's boundaries.

answer

True

question

Inputs are the goods and services organizations take in and use to create products or services.

answer

True

question

Firms that develop strategies that do not include technological advances run the risk of becoming obsolescent.

answer

True

question

According to Michael Porter's model, the competitive environment includes rivalry among current competitors and the impact of new entrants, substitute and complementary products, suppliers, and customers.

answer

True

question

Cost is often a major barrier to entry into the marketplace.

answer

True

question

Environmental scanning means searching for and sorting through information about the environment.

answer

True

question

A strong organization culture is one in which everyone understands and believes in the firm's goals, priorities, and practices.

answer

True

question

Which of the following is a characteristic of managerial decisions that contributes to the difficulty in making a decision? A. Guaranteed success B. Certainty C. Conflict D. Structure E. Speed

answer

C. Conflict

question

Which of the following decisions is likely to be a programmed decision? A. Decisions about diversification into new products and markets B. Decisions with uncertainty regarding cause-and-effect relationships C. Decisions about reorganization of state government agencies D. Decisions regarding periodic reorders of inventory E. Decisions involving the purchase of experimental equipment

answer

D. Decisions regarding periodic reorders of inventory

question

A firm's decision regarding diversification into new products and markets is a(n) example of a _____ decision. A. routine B. programmed C. cognitive D. nonprogrammed E. noncognitive

answer

D. nonprogrammed

question

In an ideal decision-making process, the initial step is to: A. select an alternative. B. evaluate the decision. C. challenge the status quo. D. generate alternatives. E. identify the problem.

answer

E. identify the problem.

question

Once a problem is identified and properly diagnosed, the next phase in the decision-making process involves _____. A. evaluating alternatives B. evaluating consequences C. generating information D. implementing the decision E. generating alternative solutions

answer

E. generating alternative solutions

question

When a solution is specifically designed for a particular problem or set of problems, it is referred to as _____. A. groupthink B. a programmed decision C. a ready-made solution D. a contingency plan E. a custom-made solution

answer

E. a custom-made solution

question

_____ requires searching thoroughly for a complete range of alternatives, carefully assessing each alternative, comparing one to another, and then choosing or creating the very best. A. Benchmarking B. Maximizing C. Framing D. Satisficing E. Optimizing

answer

B. Maximizing

question

Managers who optimize their decisions will attempt to: A. choose the first, minimally acceptable alternative. B. fix on the decision that is fastest to make. C. zero in on the least expensive option available in the market. D. decide on whatever produces the least challenge or conflict. E. achieve the best possible balance among several goals.

answer

E. achieve the best possible balance among several goals.

question

The final phase in the decision-making process is _____. A. anticipating the results B. implementing the solution C. diagnosing remaining issues D. criteria analysis E. evaluating the decision

answer

E. evaluating the decision

question

Each morning, OfficeMax's CEO has a computer-based conference with all store managers. The previous day's data and challenges are discussed so that problems can be quickly and effectively resolved or even avoided. In this case, OfficeMax is utilizing _____ to retain a competitive edge. A. social realities B. real-time information C. psychological biases D. framing effects E. nonprogrammed decisions

answer

B. real-time information

question

_____ is an advantage of using a group for decision making. A. Intellectual stimulation B. Domination by one member C. Groupthink D. Satisficing E. Goal displacement

answer

A. Intellectual stimulation

question

Jake Tree Farm in Kansas is looking for ways to be more environment-friendly. Managers interviewed frontline staff to get their opinions and ideas, and they invited everyone to participate in deciding which ideas to advance. Staff members were then aware of the various options and recognized the benefits and costs of each. In this scenario, involving the staff has helped the organization to _____. A. dominate the discussion and reinforce the organizational structure B. use groupthink to gain buy-in C. please everyone completely D. give the illusion of control E. understand the decisions and be more committed to them

answer

E. understand the decisions and be more committed to them

question

Nicole, a manager at Purple Lotus Inc., was disappointed with her team's discussion regarding next year's marketing campaign. Adam, a fellow manager, pushed all his ideas through; they were good, but nobody else got a word in or had the opportunity to share. This group experienced _____. A. vigilance B. individual dominance C. satisficing D. intellectual stimulation E. goal displacement

answer

B. individual dominance

question

A phenomenon that occurs in decision making when group members avoid disagreement as they strive for consensus is known as _____. A. goal displacement B. domination C. intuition D. groupthink E. satisficing

answer

D. groupthink

question

Groups that operate under a condition known as groupthink are likely to be _____. A. striving to stand out B. strongly supportive of their opinions in meetings C. ideal for brainstorming sessions D. concerned with maintaining a positive team spirit E. making better decisions than any other group

answer

D. concerned with maintaining a positive team spirit

question

Two employees in an organization constantly disagree with each other. Lately, the arguments have become personal, leading to anger and bitterness, and this has begun to impact the whole work group. Which of the following best describes the given scenario? A. Bounded rationality B. Affective conflict C. Garbage can model D. Individual dominance E. Groupthink

answer

B. Affective conflict

question

In trying to make a conflict between two employees less personal and emotional, their manager asks each of them to approach the problem from a different viewpoint than their original one. This is an example of encouraging the use of _____. A. cognitive conflict B. affective conflict C. psychological conflict D. custom-made solutions E. groupthink

answer

A. cognitive conflict

question

A process in which group members generate as many ideas about a problem as they can is called _____. A. brainstorming B. forecasting C. groupthink D. satisficing E. optimizing

answer

A. brainstorming

question

The _____ model of decision making arises when two or more groups form, each representing a different preference, and each tries to use power and negotiation to sway the decision. A. bounded rationality B. incremental C. garbage can D. coalitional E. affective rationality

answer

D. coalitional

question

_____ model of organizational decision making depicts a chaotic process and seemingly random decisions. A. Garbage can B. Contingency plans C. Incremental D. Coalitional E. Bounded rationality

answer

A. Garbage can

question

Which of the following statements about decision making in a crisis is true? A. In crises, managers should make decisions only after taking all of the details into account. B. An effective plan for crisis management should include strategic actions. C. In crises, managers should avoid making decisions under pressure. D. It is not imperative to include crisis management on the management's agenda. E. Crises can never provide benefits to a company.

answer

B. An effective plan for crisis management should include strategic actions.

question

Which of the following is an element of an effective plan for crisis management? A. A communication plan that indicates that the company is in complete control B. Competitive actions to bounce back immediately C. Psychological and cultural actions for the human and emotional toll D. A template for a press statement, to be released before details are leaked E. A method to quickly distance the company from the crisis

answer

C. Psychological and cultural actions for the human and emotional toll

question

Scenario B: Mark works for a new start-up marketing consulting firm. There are five highly opinionated but very committed employees in his group. The owner of the firm, Phil, strongly believes that he should make every decision since he is the boss. But Phil often jumps to conclusions and doesn't even take time to diagnose the problem at hand because he does not like to ask any of the employees for suggestions. Moreover, Phil's decisions are usually focused on short-term benefits and costs rather than that of long-term. At this point, most people in the firm agree that the decision making of the owner is going to destroy the young firm before it really gets started. 113. Suppose the owner tells Mark that the reason he makes every decision himself is because he believes that he will be able to influence everything that happens in the business. This unrealistic view is called _____. A. optimizing B. discounting the future C. maximizing D. the illusion of control E. the garbage can model

answer

D. the illusion of control

question

Scenario C: Jeremy is the lead on a new project at work, and it is essential that he make a good impression on top management. He recently had his first staff meeting to solve a fairly large problem with the project, and it didn't go well. The whole staff of 10 was there, which he thought would lead to buy-in from the group. Instead the group didn't get much done in that meeting. 114. Jeremy opened the meeting by suggesting to the group that he had put a lot of thought into the problem and that perhaps they should use his ideas to solve the problem. He spent the meeting explaining why this should occur and went on to dismiss any alternatives. Jeremy was practicing _____. A. satisficing B. groupthink C. individual dominance D. goal displacement E. intellectual stimulation

answer

C. individual dominance

question

Scenario D: Effectively Organized Inc. has hired a consultant to help with organizational decision making. The consultant's first meeting is set up to describe to the managers of Effectively Organized Inc. the models of organizational decision processes. Each of the managers seems to prefer one of the models over the others. 115. The vice president of production tells the group that in his area of the company, many managers don't even agree about what their goals are and certainly cannot agree on what action to take. This situation best relates to _____. A. bounded rationality B. the incremental model C. the garbage can model D. the coalitional model E. the crisis model

answer

C. the garbage can model

question

Programmed decisions are useful when there is no predetermined structure on which to rely.

answer

False

question

Risk exists when the probability of an action being successful is less than 100 percent and losses may occur.

answer

True

question

Conflict exists when a manager must consider opposing pressures from different sources.

answer

True

question

The first stage of the decision-making process requires the decision maker to generate alternatives.

answer

False

question

The "problem" in decision making may actually be an opportunity that needs to be exploited.

answer

True

question

Sara, a warehouse manager, needed a fast solution when an employee asked for a day off for the following week when the whole crew was supposed to be doing inventory. For her, a ready-made alternative will be quicker than designing a custom-made solution.

answer

True

question

Decision makers should presume that with a carefully made decision, things will go smoothly during implementation.

answer

False

question

Evaluating the decision is always useful, whether the outcome is positive or negative.

answer

True

question

Framing effects refer to a decision bias influenced by the way in which a problem or decision alternative is phrased or presented.

answer

True

question

One advantage of using a group for decision making is groupthink.

answer

False

question

One potential advantage of using a group for decision making is that people are likely to be more committed to the decision.

answer

True

question

The three requirements for effective group decision making are an appropriate leadership style, the constructive use of disagreement and conflict, and the enhancement of creativity.

answer

True

question

Complimenting one another and telling stories are examples of behaviors that can make brainstorming less effective.

answer

True

question

Bounded rationality is a less-than-perfect form of rationality in which decision makers cannot be perfectly rational because decisions are complex and complete information is unavailable or cannot be fully processed.

answer

True

question

The confrontational model of decision making arises when people disagree on goals or compete with one another for resources.

answer

False

question

_____ is the system of rules that governs the ordering of values. A. Ethnocentrism B. Ethics C. Dynamics D. Legitimacy E. Dialectics

answer

B. Ethics

question

_____ refers to the principles, rules, and values people use in deciding what is right or wrong. A. Ethical issue B. Social capital C. Emotional intelligence D. Moral philosophy E. Legal positivism

answer

D. Moral philosophy

question

Ashleigh works as a receptionist for a law firm. Some of the lawyers have asked her to tell callers that they are in court when in fact they are playing golf. She wanted to quit the job because she hated to lie to people and believes that all people should uphold certain values that society needs to function. Which of the following best describes the ethical system used by Ashleigh to make the decision? A. Egoism B. Ethnocentrism C. Relativism D. Universalism E. Utilitarianism

answer

D. Universalism

question

The Caux Principles are based on two ethical ideals: A. fairness and equality. B. self-fulfillment and sharing. C. unity and respect. D. kyosei and human dignity. E. honesty and happiness.

answer

D. kyosei and human dignity.

question

_____ considers acceptable behavior to be that which maximizes benefits for the individual. A. Egoism B. Ethnocentrism C. Relativism D. Universalism E. Utilitarianism

answer

A. Egoism

question

Bina downloaded music from the Internet on her office computer. As all of her colleagues did it, she thought it was fine to do so. In this scenario, which of the following ethical systems has Bina used to rationalize her decision? A. Egoism B. Virtue ethics C. Relativism D. Universalism E. Utilitarianism

answer

C. Relativism

question

Cassandra's behavior is typically guided by what she thinks would be acceptable to her parents. According to Kohlberg, which of the following stages of moral development does Cassandra's behavior exemplify? A. Utilitarian stage B. Conventional stage C. Principled stage D. Preconventional stage E. Conclusive stage

answer

B. Conventional stage

question

The _____ of an organization refers to the processes by which decisions are evaluated and made on the basis of right and wrong. A. corporate social responsibility B. ethical climate C. ecocentric management D. legal responsibility E. moral obligation

answer

B. ethical climate

question

Which of the following is a danger sign that organizations may be allowing or even encouraging unethical behavior? A. Excessive emphasis over long-term consideration over short-term revenues B. Failure to establish a written code of ethics C. An informal corporate structure D. Flexible timings that allow employees to choose their hours of work E. Multiple levels of supervision and monitoring

answer

B. Failure to establish a written code of ethics

question

The _____ ethical framework encourages employees to consider whether they would like to see their decisions displayed on the front page of the newspaper. A. Kohlberg B. sunshine C. Sarbanes-Oxley D. egoism E. utilitarian

answer

B. sunshine

question

An ethics program that is designed by corporate counsel to detect, prevent, and punish legal violations is called a _____ ethics program. A. life-cycle-based B. compliance-based C. competency-based D. relativism-based E. responsibility-based

answer

B. compliance-based

question

Compliance-based ethics programs are typically designed by _____. A. corporate counsel B. employees C. top executives D. stockholders/owners E. focus groups of customers

answer

A. corporate counsel

question

Making ethical decisions takes moral _____ which helps realize that an issue has ethical implications. A. certainty B. actionability C. awareness D. judgment E. character

answer

C. awareness

question

Which of the following plays a role in the moral awareness involved in identifying an act as unethical, the moral judgment to fully consider the repercussions, and the moral character to take the ethical action? A. Courage B. Legitimacy C. Intelligence D. Compliance E. Knowledge

answer

A. Courage

question

Telling others, inside or outside the organization, about wrongdoing is called _____. A. ethical shadowing B. whistleblowing C. egoism D. ethical interference E. moral consequences

answer

B. whistleblowing

question

Which of the following responsibilities lies at the base of the pyramid of global corporate social responsibility and performance? A. Legal B. Economic C. Moral D. Ethical E. Philanthropic

answer

B. Economic

question

Within the pyramid of global corporate social responsibility and performance, doing what is required by global stakeholders is categorized as a(n) _____ responsibility. A. economic B. legal C. financial D. philanthropic E. ethical

answer

B. legal

question

Which of the following levels of the pyramid of global corporate social responsibility and performance represents a company's requirement to be profitable? A. Economic responsibility B. Relative responsibility C. Ethical responsibility D. Philanthropic responsibility E. Legal responsibility

answer

A. Economic responsibility

question

Home Depot supports Habitat for Humanity, a nonprofit that builds affordable housing for those struggling with poverty, housing, or homelessness. Donation to such an organization is an example of _____ responsibility. A. economic B. legal C. conventional D. ethical E. philanthropic

answer

E. philanthropic

question

Which of the following is a goal of a transcendent education? A. Persuasion B. Independence C. Empathy D. Candidness E. Persistence

answer

C. Empathy

question

Scenario A: An organization faces an ethical dilemma. A problem with the accounting process has resulted in higher profits being reported than were actually earned. A meeting has been arranged where senior management would decide how to handle the situation. The people at the table have varying views of what action to take and why. Ethan wants to report the error immediately because he believes he could possibly go to jail if it isn't reported right away. Tripp wants to report the error because it is the honest thing to do, and therefore necessary. After hearing his colleagues' opinions, Carlos says he wants to report the error as well because he wants to go along with the more experienced managers in the group. Which of the following best describes the ethical system used by Tripp to make his decision? A. Universalism B. Egoism C. Utilitarianism D. Relativism E. Virtue ethics

answer

A. Universalism

question

Scenario B: Suppose a manager faces a question regarding how to handle a defective piece of equipment that his company sold. Telling the customer would cost him a substantial amount of money. At the same time, if the equipment fails, it could lead to serious injury of the customer. The manager is going to choose between three options presented by colleagues: Option 1: Keep quiet about the defect. Option 2: Talk to others and see what they would have done in the same situation. Option 3: Disclose the defect and suggest alternatives because it is the honest thing to do. Which of the following terms best describes the ethical approach used in option 1? A. Universalism B. Egoism C. Utilitarianism D. Relativism E. Virtue ethics

answer

B. Egoism

question

Which of the following options best describes the ethical approach used in option 3? A. Universalism B. Egoism C. Utilitarianism D. Relativism E. Virtue ethics

answer

A. Universalism

question

Scenario D: John and Mack are colleagues who witnessed one of their team members, Jake, using the office telephone to make an emergency personal call, which is prohibited in their company. The management had previously announced that those who report wrongdoing of fellow employees will be rewarded. John decided not to report Jake's act to the management since it involved an emergency situation. However, Mack decided to do so with the hope of being rewarded. In Scenario D, according to Kohlberg's model of cognitive moral development, John can be categorized as being in the _____ stage. A. preconventional B. conventional C. principled D. unconventional E. operational

answer

C. principled

question

Scenario E: Senior management at Valley Development is attending a corporate retreat, and the first item for discussion is corporate social responsibility (CSR). The group has discussed this before and then shot it down because it generally costs Valley's shareholders in the form of reduced distributions. But the new VP, Gita Halle, is about to explain why she believes CSR will actually benefit the shareholders and Valley management alike. Her team begins the presentation with a discussion of CSR, both its current definition and reconciliation of past views. Jeremiah then discusses the importance of being a good global corporate citizen by supporting the local school system. Ellen takes the floor to make the case for doing what is expected by global stakeholders even though there are no laws requiring those actions. Finally Gita wraps the discussion up by defining why Valley should take legal responsibility for the firm's performance. Gita's presentation most likely centered on taking which of the following actions? A. Production of goods and services that society wants at a price that perpetuates the business and satisfies its obligations to investors B. Obeying all laws that affect Valley's operations C. Doing the right thing regardless of what the law says D. Supporting Jeremiah's proposal E. Engaging in additional behaviors and activities that society finds desirable and that the values of the business support

answer

B. Obeying all laws that affect Valley's operations

question

Most people have unconscious biases that favor themselves and their own group.

answer

True

question

Astroturfing is considered a difficult but ethical practice.

answer

False

question

Universalism is an ethical system stating that the greatest good for the greatest number should be the overriding concern of decision makers.

answer

False

question

Utilitarianism directly seeks the greatest good for the greatest number of people.

answer

True

question

The Sarbanes-Oxley Act, passed in 2002, includes provisions for senior managers to personally sign off on financial results.

answer

True

question

The ethical climate of an organization refers to the processes by which decisions are evaluated and made on the basis of right and wrong.

answer

True

question

Individuals can be ethical leaders if they have a strong moral character, regardless of what issues actually get most of their attention.

answer

False

question

Compliance-based ethics programs are concerned with instilling in people a personal responsibility for ethical behavior.

answer

False

question

With an integrity-based ethics program, people govern themselves through a set of guiding principles that they embrace.

answer

True

question

Moral awareness means knowing what actions are morally defensible.

answer

False

question

Persuasion is one of the five higher goals in transcendent education that balances self-interest with responsibility to others.

answer

False

question

Profit maximization and corporate social responsibility necessarily lead to opposing corporate policies.

answer

False

question

Sustainable growth refers to growth in profitability that sustains the wealth of shareholders.

answer

False

question

Life-cycle analysis quantifies the total use of resources and the releases into the air, water, and land.

answer

True

question

Greenwashing refers to misleading marketing claims about the environmentally friendly nature of a product.

answer

True

MGMT 325 Test 1 – Flashcards

Unlock all answers in this set

Haven't found what you were looking for?

Search for samples, answers to your questions and flashcards