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QUESTION 1

1. Accountants must abide by a strict code of ethics that defines their responsibilities to

		their clients only.
		their clients and the public interest.
		the public only.
		their investors and shareholders.
		government regulators.

2 points

QUESTION 2

1. Which of the following has been identified by the Ethics Resource Center as the leading form of observed misconduct in organizations?

		Discrimination
		Bullying
		Lying
		Misuse of company resources
		Sexual harassment

2 points

QUESTION 3

1. ________ is the offering of something of value in order to gain an illicit advantage.

		Shoulder surfing
		Hacking
		Gift exchange
		Conflicts of interest
		Bribery

2 points

QUESTION 4

1. What type of fraudulent activity involves an employee who assists a consumer in fraud?

		Whacking
		Duplicity
		Guile
		Defamation
		Collusion

2 points

QUESTION 5

1. The ________ makes it illegal for individuals, firms, or third parties doing business in American markets to “make payments to foreign government officials to assist in obtaining or retaining business.”

		U.S. Foreign Corrupt Practices Act (FCPA)
		Kyoto Protocol
		World Trade Organization (WTO)
		Consumer Protection Act
		Gramm-Leach-Bliley Act

2 points

QUESTION 6

1. Issues related to fairness and honesty may arise because business is sometimes regarded as a

		legal case, where everything must be done to the letter of the law.
		contest, with the most ethical firm "winning."
		guerilla war where anything goes in the fight for consumers' dollars.
		game governed by its own rules rather than those of society.
		game governed by the rules of society.

2 points

QUESTION 7

1. A company can be sued for discrimination if it

		hires minorities.
		maintains reasonable minority standards.
		discharges a minority individual, but has a just cause for doing so.
		uses age as a hiring or firing criterion.
		has more men than women on staff.

2 points

QUESTION 8

1. Concerns involving copyright infringement on books, movies and music, and other illegally produced goods relate to which type of ethical issue?

		Conflict of interest
		Honesty
		Communications
		Discrimination
		Intellectual property rights

2 points

QUESTION 9

1. Affirmative action programs

		involve the promotion of unqualified employees.
		are not imposed by federal law on employers.
		are not very commonly used anymore because there is no need to protect minorities.
		only involve the training of individuals.
		involve the recruitment, hiring, promotion, and training of qualified individuals.

2 points

QUESTION 10

1. The six principles of the Defense Industry Initiative on Business Ethics and Conduct became the foundation for

		Better Business Bureau ethical guidelines.
		the Federal Sentencing Guidelines for Organizations.
		the Ethical Trading Initiative.
		the Federal Trade Commission compliance requirements.
		the Sarbanes-Oxley Act.

2 points

QUESTION 11

1. The 1960s saw a rise of consumerism. What is consumerism?

		An increase in consumer rights by organizations and governments
		The growth of international retail chain stores
		Activities undertaken by independent individuals, and groups to protect their rights as consumers
		The widespread adoption of consumer oriented marketing strategies among businesses
		Organizations’ tendency to seek ways to take advantage of consumers

2 points

QUESTION 12

1. Which of the following is not one of the benefits of being ethical and socially responsible in business?

		Greater employee commitment
		A high degree of employee dissent
		Improved customer trust and satisfaction
		Increased investor loyalty
		Better financial performance

2 points

QUESTION 13

1. Which of the following is not something a firm might do to encourage organizational ethics and compliance?

		Employee ethics training
		Hiring a compliance officer
		Ignoring potential ethical issues
		Writing a code of ethics
		Conducting an ethics and compliance audit.

2 points

QUESTION 14

1. Which of the following was developed in the 1980s to guide corporate support for ethical conduct by establishing a method for discussing best practices?

		Federal Sentencing Guidelines for Organizations
		Defense Industry Initiative on Business Ethics and Conduct
		Corporate codes of conduct
		United States Sentencing Commission
		MERCOSUR

2 points

QUESTION 15

1. ________ is essential in building long-term relationships between businesses and consumers.

		Profits
		Dividends
		Trust
		Hubris
		Codes of ethics

2 points

QUESTION 16

1. More than a compliance program, business ethics is becoming

		a management issue to achieve competitive advantage.
		less accepted by society.
		mainly a government regulatory issue.
		an initiative led by nonprofit organizations.
		a program that decreases profits but increases societal benefits.

2 points

QUESTION 17

1. In the Reagan/Bush eras, the major focus of the business world was on

		self-regulation rather than regulation by government.
		decreasing the number of mergers.
		decreasing the multinational presence in the U.S. marketplace.
		increasing government influence on the economic arena.
		improving business ethics.

2 points

QUESTION 18

1. Public health and safety and support of local organizations are issues most relevant to which stakeholder group?

		Investors
		Community
		Suppliers
		Customers
		Employees

2 points

QUESTION 19

1. Which of the following do not typically engage in transactions with a company and thus are not essential for its survival?

		Employees
		Secondary stakeholders
		Primary stakeholders
		Investors
		Customers

2 points

QUESTION 20

1. Why do critics argue that high compensation for boards of directors is a bad thing?

		It is too expensive for the organization.
		It could cause conflicts of interest between the directors and the organization.
		It is not fair to poorly compensated employees.
		High pay will render the board less complacent.
		Board of director compensation is not a major issue.

2 points

QUESTION 21

1. Which of the following is a major ethical concern among corporate boards of directors?

		Compensation
		The non-traditional directorship approach
		Dividend reporting
		Corporate social audits
		Debt swaps

2 points

QUESTION 22

1. Stakeholders' power over businesses stems from their

		ability to withdraw or withhold resources.
		ability to generate profits.
		media impact.
		political influence.
		stock ownership.

2 points

QUESTION 23

1. The specific steps for implementing the stakeholder perspective do not include which of the following?

		Identifying stakeholder groups
		Identifying stakeholder issues
		Identifying and gaining stakeholder feedback
		Identifying and gaining government feedback
		Assessing organizational commitment to social responsibility groups

2 points

QUESTION 24

1. One policy to address the issue of executive pay was implemented by J.P. Morgan, it stated that ________.

		there should be no limit on what top executives can earn.
		managers should earn no more than twenty times the pay of other employees.
		top managers should make the same amount as other employees.
		employees can determine how much managers make.
		the government should determine the worth of each manager’s service.

2 points

QUESTION 25

1. Which of the following is not a method typically employed by firms when researching relevant stakeholder groups?

		Surveys
		Focus groups
		Internet searches
		Press reviews
		Guessing

2 points

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