Unit I Assessment – Flashcards

Which of the following is the objective of the Grayson-Himes Pay for Performance Act? a. to ban future "unreasonable and excessive" compensation at companies receiving federal bailout money b. to set up the Public Company Accounting Oversight Board in the wake of accounting scandals that rocked the private sector c. to outlaw the practice of backdating of stock options awarded to senior management d. to set upper limits on executive pay based on average employee salary in all private sector organizations

Which of the following statements is true about ethical decision making in business? a. ethical decision making is not limited to the type of major corporate decisions with dramatic social consequences b. every employee does not face an issue that requires ethical decision making c. all ethical decisions can be covered by economic, legal, or company rules and regulations d. ethical decision making should not rely on the personal values and principles of the individuals involved

In a general sense, a business _________________________ is anyone who affects or is affected by decisions made within the firm, for better or worse. a. nominee b. stakeholder c. stockholder d. watchdog

Telling organizations that their ethical responsibilities end with obedience to the law: a. is just inviting more legal regulation b. is enough to maintain an ethical business environment c. reduces the frequency of corporate scandals d. eliminates ambiguity while making personal ethics-related decisions

Which of the following is defined as a company's ultimate guide for decision making and includes the company's beliefs and principles? a. mission statement b. core values c. historical milestones d. vision statement