MGT 400 – Flashcards
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Principles are
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specific and pervasive boundaries for behavior that are universal and absolute.
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Social responsibility is
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an organization's obligation to maximize its positive effects and minimize its negative effects on stakeholders.
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What was enacted to restore confidence in financial reporting and business ethics after the accounting scandals of the early 2000s?
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Sarbanes-Oxley Act
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The term business ethics is best described by the following statement:
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It comprises the principles, values, and standards that guide behavior in the world of business.
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During the 1990s, the institutionalization of business ethics was largely driven by which piece of legislation.
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Federal Sentencing Guidelines for Organizations.
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Business ethics, as a field, has passed through which of the following states?
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Theological discussion to recognition of social issues to a field of study.
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Ethics is a part of decision making
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at all levels of work and management.
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What agency focuses on firms taking action to prevent and detect business misconduct in cooperation with government regulation?
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Federal Sentencing Guidelines for Organizations.
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Which of the following is generally not considered a business ethics issue?
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Type of government
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Which of the following was not a provision of the Sarbanes-Oxley Act?
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It outlawed bribery of officials in other countries.
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Stakeholders' power over businesses stems from their
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ability to withdraw or withhold resources.
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Those who have a claim in some aspect of a firm's products, operations, markets, industry, and outcomes are known as
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stakeholders
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Which of the following do not typically engage in transactions with a company and thus are not essential for its survival?
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Secondary Stakeholders
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A firm that makes use of a ______ recognizes other stakeholders beyond investors, employees, and suppliers, and explicitly acknowledges the two way dialog that exists between a firm's internal and external environments.
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Stakeholder interaction model
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The degree to which a firm understands and addresses stakeholder demands can be referred to as
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a stakeholder orientation.
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Which of the following industries tends to generate a high level of trust from consumers and stakeholders?
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Technology
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Which of the following is not a benefit that primary stakeholders tend to provide to organizations?
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Pro-bono bookeeping
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A stakeholder group that is absolutely necessary for a firm's survival is defined as
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primary
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When unethical acts are discovered in a firm, in most instances
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there was knowing cooperation of complicity from within the company.
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Which of the following is not a method typically employed by firms when researching relevant stakeholder groups?
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Guessing
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In marketing communications, lying causes predicaments for companies because it destroys
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trust
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When a commercial states that a product is superior to any other on the market, the marketer risks accusations of ?
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puffery
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Optimization is defined as
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a trade-off between equity and efficiency
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Which of the following has been identified by the Ethics Resource Center as the leading form of observed misconduct in organizations?
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Misuse of company resources
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An activity is probably ethical if it
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does not make consumers feel cheated, deceived, or manipulated.
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The first step toward understanding business ethics is to
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develop ethical-issue awareness.
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Among retail stores, ____ is a larger problem than customer shoplifting.
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internal employee theft.
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The ethical decision-making process begins when?
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stakeholders trigger ethical issue awareness and individuals openly discuss it with others.
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Which of the following is not a side-effect of being the victim of workplace bullying?
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increased productivity.
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_____ is defined as any purposeful communication that deceives, manipulates, or conceals facts in order to create a false impression.
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fraud.
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____ law defines the rights and duties of individuals and organizations (including businesses).
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Civil.
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____ law not only prohibits specific actions in business such as fraud, theft, or securities trading violations, but also imposes fines or imprisonment as punishment for breaking the law.
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Criminal
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Which of the following is not a provision of the Dodd-Frank Wall Street Reform and Consumer Protection Act?
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Creates an organization to pay the bills of low-income consumers.
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_____ ties giving to a business' overall strategy and objectives.
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Cause-related marketing
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Anticompetitive strategies that focus on weakening or destroying a competitor have spurred antitrust legislation and include all of the following except
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free samples.
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Which is not one of the four sources of criminal and civil laws?
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Judicial law
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The ____ is an independent agency within the Federal Reserve System that "regulates the offering and provision of consumer financial products or services under the Federal consumer financial laws.
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Consumer Financial Protection Bureau
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The primary objective of U.S. antitrust laws is to
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distinguish competitive strategies that enhance consumer welfare from those that reduce it.
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What is a primary reason why some small businesses resist the opening of large chain retailers like Walmart or Home Depot?
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Because the large size creates economies of scale and they can charge lower prices.
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____ focuses on developing sound organizational practices and integrity for financial and nonfinancial performance measures, rather than on an individual's morals.
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Core practices
