1. A prime social responsibility of business is to safeguard consumers:

A. While continuing to supply them with goods and services they want.

 

B. While maintaining high profit margins.

 

C. By supplying consumers with products at the lowest possible cost.

 

D. By providing new technology.

 

2. Which of the following is (are) core rights of consumers?

A. The right to safety.

 

B. The right to be represented.

 

C. The right to purchase.

 

D. All of the above.

 

3. The “right to be heard” assures that consumers’ interests will:

A. Receive full and sympathetic consideration.

 

B. Be protected against fraudulent or misleading information.

 

C. Be assured satisfactory quality and service at a fair price.

 

D. Be given all the facts to make an informed choice.

 

4. Consumers have become more dependent on businesses for product quality because:

A. The complexity of products makes choices complicated for consumers.

 

B. Instructions for use or care of product are provided in clear and simple language.

 

C. Their technical competence allows them to inspect the products thoroughly.

 

D. Competition has forced manufacturers to market lower-quality goods.

 

5. Which organization brings together 250 nonprofit groups to espouse the consumer viewpoint?

A. Consumers Union.

 

B. Consumer Federation of America.

 

C. National Consumer League.

 

D. Public Citizen.

 

6. Which of the following statements is not true about the organization Consumer Reports?

A. It is involved in activities promoting the interests of consumers.

 

B. It conducts extensive tests on selected consumer products and services.

 

C. It is supported by the federal government.

 

D. It publishes the results of tests online, with ratings on a brand-name basis.

 

7. Which of the following describe why the consumer movement exists?

A. Services have become less specialized.

 

B. Some product advertising claims have been inflated.

 

C. Some businesses have violated the public’s privacy.

 

D. Both B and C, but not A.

 

8. The act that requires lenders to inform borrowers of the annual rate of interest to be charged, plus related fees and services charges is called:

A. The Consumer Protection Act.

 

B. The Product Safety Act.

 

C. The Predatory Mortgage Act.

 

D. The Truth in Lending Act.

 

9. In the United States, which of the following agencies enforces the laws prohibiting deceptive advertising?

A. Congress.

 

B. Consumer Product Safety Commission.

 

C. Federal Trade Commission.

 

D. Department of Justice.

 

10. The law requiring that toys and infant products be tested before sale is called the:

A. Child Safety Act.

 

B. Strong Product Safety Bill.

 

C. Consumer Product Safety Improvement Act.

 

D. Uniform Safety Testing Bill.

 

11. Which of the following is not a goal of consumer protection laws?

A. Encourage competitive pricing.

 

B. Facilitate consumers’ getting extended credit when making purchases.

 

C. Provide consumers with better information when making purchases.

 

D. Protect consumers against possible hazards from products purchased.

 

12. Warning consumers about the possible side effects of pharmaceutical drugs is an example of consumer protection against:

A. Predatory pricing.

 

B. Incomplete information disclosure.

 

C. Hazardous products.

 

D. Violations of individual privacy.

 

13. Before deregulation, government agencies frequently:

A. Held prices artificially high, shielding businesses from competition.

 

B. Held prices artificially low, shielding consumers from selection.

 

C. Encouraged overseas trade, shielding businesses from competition.

 

D. Discouraged overseas trade, shielding consumers from selection.

 

14. Which of these is not a current consumer law that protects individual privacy?

A. Internet “do not track” rules.

 

B. The FTC’s “do not call” list to avoid unwanted telemarketing calls.

 

C. Unwanted calls to a person’s mobile phone.

 

D. Children’s Online Privacy Protection Action of 2000.

 

15. Which part of the Department of Justice protects the public from being charged excess fees based on one’s race?

A. Consumer Product Safety Commission.

 

B. Civil Rights Division.

 

C. Consumer Financial Protection Bureau.

 

D. Federal Trade Commission.

 

16. The main responsibility of the National Highway Traffic Safety Administration is to:

A. Set a uniform national speed limit.

 

B. Set airline safety standards.

 

C. Set motor vehicle safety standards.

 

D. Safeguard consumers from altered odometers.

 

17. The primary goal(s) of the Food and Drug Administration include:

A. Ensuring the safety and effectiveness of a wide range of consumer products.

 

B. Prohibiting unfair or deceptive advertising.

 

C. Reviewing and approving new products before they are released to consumers.

 

D. Both A and C, but not B.

 

 

 

18. The major federal consumer protection agencies are authorized by law to:

A. Intervene directly into the very center of free market activities, if that is considered necessary to protect consumers.

 

B. Substitute government-mandated standards for decision making by private buyers and sellers.

 

C. Substitute private manufacturing standards for government-mandated standards.

 

D. Both A and B, but not C.

 

19. An identifying marker placed on a user’s computer hard drive during visits in order to identify the user during each subsequent visit and to build profiles of their behavior over time is called a:

A. Web beacon.

 

B. Deep packet.

 

C. Cookie.

 

D. Firewall.

 

20. Groups that collect and combine data from various sources into individual profiles that are sold to retailers and advertisers are called:

A. Flash cookies.

 

B. Data aggregators.

 

C. Internet marketers.

 

D. 360-degree viewers.

 

21. Online shoppers always run the risk that:

A. They might have to pay state and local taxes on goods purchased.

 

B. Their favorite Web sites provide a large variety of products and services.

 

C. The government might become overly involved in protecting consumer privacy.

 

D. Information they reveal in the course of a sales transaction might be misused.

 

22. Advertising that is targeted to particular customers, based on their observed online behavior, is called:

A. Targeted advertising.

 

B. Tracking advertising.

 

C. Behavioral advertising.

 

D. Online advertising.

 

23. When businesses adopt voluntary policies for protecting the privacy of individuals’ information disclosed during electronic transactions, this is an example of:

A. Industry self-regulation.

 

B. Privacy legislation.

 

C. Consumer self-help.

 

D. Business privacy regulation.

 

24. Under what legal doctrine does a firm bear legal responsibility for injuries caused by something it made or sold, whether or not it was negligent or breached a warranty?

A. Strict liability.

 

B. Product liability.

 

C. Consumer liability.

 

D. Supplier liability.

 

25. Many companies have argued that the evolution of strict liability has:

A. Unfairly burdened them with excess costs.

 

B. Decreased liability insurance rates.

 

C. Increased corporate revenues and dividends.

 

D. Changed top management’s attitude about the consumer.

 

26. Which of these statements is true regarding the Class Action Fairness Act of 2005?

A. Lawyers were restricted from shopping for friendly venues to try interstate cases.

 

B. Excessive attorney compensation was limited.

 

C. The burden of proof was shifted to government.

 

D. Both A and B, but not C.

 

27. Consumer groups have generally opposed the idea of product liability reform using which of the following arguments?

A. Punitive damages should be limited.

 

B. Strict liability should be retained.

 

C. The burden of proof should be shifted to consumers.

 

D. Losers should be made to pay some of the other side’s legal bills.

 

28. One alternative to product liability lawsuits is called:

A. Limited resolution.

 

B. Punitive damages reform.

 

C. Alternative dispute resolution.

 

D. Consumerism.

 

29. In some cases, businesses have banded together to agree on how they will treat their customers. This is called:

A. Code of regulation.

 

B. Consumer affairs doctrine.

 

C. Voluntary industry codes of conduct.

 

D. Industry action standards.

 

30. Businesses can take a number of measures to respond voluntarily to consumer demands. Which of the following is an example of such a measure?

A. Product liability law reform.

 

B. Customer call centers.

 

C. Consumer advocacy groups.

 

D. Alternative dispute resolution policies.

 

31. Global market channels involve a firm producing goods in:

A. Their home country and exporting them to other countries.

 

B. Their home country to sell at home.

 

C. A foreign country to sell at home.

 

D. A foreign country to sell abroad.

 

32. A firm that has global operations has:

A. All of their manufacturing and service operations abroad.

 

B. Some or all of their manufacturing or service operations abroad.

 

C. Manufacturing but not service operations abroad.

 

D. Service but not manufacturing operations abroad.

 

33. A firm that would like to develop a global supply chain would:

A. Manufacture components or supplies in other countries.

 

B. Sell raw materials, components or supplies produced at home abroad.

 

C. Purchase raw materials, components, or supplies from sellers in other countries.

 

D. Check products that were manufactured abroad for defects in their home country.

 

34. The three strategies of globalization can be summarized using what three words?

A. Channels, operations, and chains.

 

B. Export, locate, and purchase.

 

C. Sell, make, and buy.

 

D. Ethics, import, and sell.

 

 

35. Which of the following statements accurately describe the practice of tax inversion?

A. A company shifts their headquarters to a foreign country.

 

B. A company decreases cash holdings in a foreign country.

 

C. A company increases debt in their home country.

 

D. Both A and C, but not B.

 

36. Microfinance refers to:

A. Banks lending money to a very small number of businesses.

 

B. Banks lending money to low-income businesses.

 

C. Banks lending very small amounts of money to wealthy businesses.

 

D. Banks charging low fees for all business loans.

 

37. An example of an international financial and trade institution is:

A. World Bank.

 

B. International Monetary Fund.

 

C. World Trade Organization.

 

D. All of the above.

 

38. Representation on the World Bank’s board of directors is based on:

A. The size of the member nation’s population.

 

B. The size of the member nation’s economy.

 

C. The size of the member nation’s land mass.

 

D. Equal representation of all member nations.

 

39. The primary goal of a “vulture fund” is to:

A. Provide countries with debt-relief.

 

B. Pay back loans in default.

 

C. Increase global financial stability.

 

D. Make a profit.

 

40. The primary purpose of the International Monetary Fund is to:

A. Lend foreign currency to member countries.

 

B. Exchange one currency for another.

 

C. Consolidate the debt facing third world nations.

 

D. Collect the interest on loans made by the World Bank to third-world nations.

 

41. The purpose of the World Trade Organization is to:

A. Impose barriers to free trade among nations.

 

B. Eliminate barriers to free trade among nations.

 

C. Develop trading partnerships between rich and poor nations.

 

D. Decrease globalization and free trade.

 

42. Under the World Trade Organization’s most-favored nation rule:

A. All import restrictions imposed by other nations on their goods are illegal unless a cultural waiver is issued.

 

B. All import restrictions are illegal unless proven scientifically.

 

C. Most-favored nations can impose heavy tariffs on other nations.

 

D. Most-favored nations can oppose the dumping of goods by any nation in their home market.

 

43. The theory of comparative advantage states that:

A. Productivity rises more quickly when countries produce goods and services for which they have a natural talent.

 

B. Productivity decreases when countries produce goods and services based on their natural resources.

 

C. All countries start out on an equal playing field.

 

D. Countries that operate under a policy of isolationism have a comparative advantage.

 

44. An individual who is a supporter of globalization would argue that it helps the developing world by:

A. Giving entrepreneurs access to foreign investment funds to support economic development.

 

B. Allowing new ideas and technological innovations to spread quickly.

 

C. Providing people in developing countries with more jobs.

 

D. All of the above.

 

45. What U.S. company is the best example of using globalization to reduce the price of its products?

A. K-Mart.

 

B. Toys R Us.

 

C. Walmart.

 

D. Macy’s.

 

46. A critic of globalization might argue that companies decide to manufacture in China mainly because of China’s:

A. Strict law enforcement.

 

B. High environmental standards.

 

C. Weak health and safety regulations.

 

D. Strong worker unions.

 

47. The term “race to the bottom” refers to:

A. Seeking to mine valuable minerals from the bottom of the ocean.

 

B. Moving production jobs to the country with the lowest labor cost.

 

C. Efforts to deconstruct the assembly process in manufacturing industries.

 

D. An old concept of globalization that is no longer relevant.

 

48. According to the United Nations, a feature of democracy is:

A. Fair elections.

 

B. An independent media.

 

C. A government with power balanced among executive, legislative, and judicial branches.

 

D. All of the above.

 

49. Single-party rule by communist parties still remains in:

A. Lithuania.

 

B. Vietnam.

 

C. Thailand.

 

D. Russia.

 

50. The most important agreement which codifies human rights is the:

A. The American Civil Liberties Act.

 

B. The Versailles Treaty.

 

C. The Universal Declaration of Human Rights.

 

D. The U.S. Declaration of Independence.

 

51. A society where economic power is concentrated in the hands of government officials and political authorities is called:

A. A central state control system.

 

B. A social democracy.

 

C. A political control system.

 

D. A military dictatorship.

 

52. A free enterprise system refers to:

A. Economic assets that are privately owned and exchanged in an open market.

 

B. Property ownership by a centralized government.

 

C. A mix of privately owned and government controlled economic assets.

 

D. An index of economic freedom.

 

54. Assets that a person accumulates and owns at a certain point in time are called:

A. Income.

 

B. Equity.

 

C. Wealth.

 

D. Microfinance.

 

 

55. Which statement(s) below are true about global income?

A. Income is how much one earns in a day or a year.

 

B. Income at the bottom of the pyramid varies from place to place.

 

C. Around 400 billion people globally sit at the bottom of the pyramid.

 

D. Both A and B, but not C.

 

56. Experts attribute the growth of nongovernmental organizations to:

A. The creation of global stock exchanges and enhanced currency transactions.

 

B. The globalization of marketing and converging consumer preferences.

 

C. Greater openness in many societies.

 

D. All of the above.

 

57. Government has distinctive resources and competencies including:

A. Knowledge of public policy.

 

B. Ability to enforce the rules.

 

C. Revenue from taxation.

 

D. All of the above.

 

59. If someone is entitled to be treated in a certain way, this refers to a(n):

A. Relationship.

 

B. Obligation.

 

C. Duty.

 

D. Right.

 

60. Employees in the United States have a legal right to:

A. Organize and bargain collectively.

 

B. A safe and healthy workplace.

 

C. A job.

 

D. Both A and B, but not C.

 

61. Where are workers not permitted to form independent unions?

A. Europe.

 

B. Some communist countries.

 

C. Some military dictatorships.

 

D. Both B and C, but not A.

 

62. Under U.S. laws:

A. Only private workers have the right to hold an election to choose what union they want to represent them, if any.

 

B. Only public workers have the right to hold an election to choose what union they want to represent them, if any.

 

C. Most private and public workers have the right to hold an election to choose what union they want to represent them, if any.

 

D. Only the employer has the right to hold an election to choose what unions they want to represent the workers within the organization, if any.

 

63. As shown in Figure 2, in 2013 the countries with the highest and lowest percentages of unionized labor, respectively, were:

A. Sweden, United States.

 

B. Japan, Mexico.

 

C. Norway, Austria.

 

D. United States, Denmark.

 

64. States that have adopted right-to-work laws:

A. Barred companies from forming unions to represent their employees.

 

B. Prevented unions from requiring all workers they represent to pay fees or dues.

 

C. Required the formation of unions in all manufacturing organizations.

 

D. Took away the rights of workers in the public sector to form unions.

 

65. Since the mid-1950s the proportion of American workers represented by unions has:

A. Decreased.

 

B. Increased.

 

C. Remained about the same.

 

D. Grown only in the manufacturing sector.

 

66. Which of the following statements are not true about the right to a safe and healthy workplace?

A. Over recent years no new categories of accidents or illnesses have emerged.

 

B. Extensive training and careful precautions are necessary to avoid accidents, injuries, and illness.

 

C. Many jobs are potentially hazardous to workers’ safety and health.

 

D. Some occupations, such as drilling and mining, are particularly dangerous.

 

67. According to the U.S Department of Labor:

A. Annually, more than 3 million workers in the private sector are hurt or become ill on the job.

 

B. Annually, more than 3 million workers in the public sector are hurt or become ill on the job.

 

C. Three out of every 100 workers are hurt or become ill on the job annually.

 

D. Both A and C, not B.

 

68. The practice of adapting the job to the worker is called:

A. Social contracts.

 

B. Living wages.

 

C. Electronic monitoring.

 

D. Ergonomics.

 

69. The leading cause of death on the job is due to:

A. Falls.

 

B. Vehicle accidents.

 

C. Contact with equipment.

 

D. Murder.

 

27. The Occupational Safety and Health Act gives workers the right to a job:

A. With equal wages for similar kinds of work.

 

B. With wages that enable an employee to enjoy a decent standard of living.

 

C. That is free from recognized hazards that are likely to cause death or serious injury.

 

D. That does not require them to lift, bend, or move items at any time on the job.

 

28. Some studies have shown that the burden of complying with safety regulations falls hardest on:

A. The government.

 

B. Large businesses.

 

C. Small businesses.

 

D. The manufacturing sector only.

 

29. According to the new social contract:

A. The employer is obligated to provide long-term job security.

 

B. Companies try to attract workers by giving them interesting and challenging work.

 

C. Job security is based on seniority, but salaries may be lowered for poor performance.

 

D. The employer is without any responsibilities toward employees.

 

30. One important aspect of the new social contract is:

A. Fixed pension benefits have increased significantly.

 

B. Fixed pension benefits have remained a solid incentive for workers.

 

C. Fixed pension benefits have been eliminated in the U.S. by around 90 percent.

 

D. Defined contribution plans provide more returns and less risk.

 

31. Which of these statements accurately describe(s) the “gig” (or sharing) economy?

A. Many companies have become more cost-efficient.

 

B. Risk has shifted from the worker to the company.

 

C. In many cases, income has decreased.

 

D. Both A and C, but not B.

 

32. A strong employer-employee relationship is central to:

A. Achieving a corporation’s economic goals.

 

B. Satisfying the wishes of those who contribute their skills and talents to the company.

 

C. Increasing the gross domestic product of a nation.

 

D. Both A and B, but not C.

 

33. Which of these actions can businesses take to reduce income inequality?

A. Adjust minimum wage laws to increase worker pay.

 

B. Implement new tax policy that benefits employees.

 

C. Provide very high executive compensation.

 

D. Commit to paying a living wage to all employees.

 

34. A living wage has been defined as a wage that:

A. Equals or exceeds the minimum wage established by law.

 

B. Equals or exceeds one-and-a-half times the minimum wage established by law.

 

C. Support the basic needs of an average-sized family, based on local prices.

 

D. Support half the basic needs of an average-sized family, based on local prices.

 

35. A reason for an increase in employee monitoring does not include:

A. To achieve greater efficiency at work.

 

B. To avoid lawsuits if employees act in inappropriate ways.

 

C. To make sure employees do not disclose confidential information.

 

D. To reduce the employer’s health insurance premiums.

 

36. Which of the following is true about romantic relationships in the workplace?

A. Most businesses have strict policies forbidding all romantic relationships in the workplace.

 

B. OSHA requires businesses to forbid workplace romantic relationships.

 

C. Many companies allow managers to become romantically involved with subordinates, so long as they do not supervise them directly.

 

D. Almost all businesses ban romantic relationships between employees in the different departments.

 

37. Which of the following is true about random drug testing of employees?

A. It screens randomly-selected employees at various times through the year.

 

B. It randomly tests selected applicants before hiring, as a part of a physical examination.

 

C. It tests an employee believed to be impaired by drugs and unfit for work.

 

D. It regularly tests employees from randomly-selected job categories or job levels.

 

38. Which of the following is (are) true about Employee Assistance Programs (EAPs)?

A. They offer counseling and follow-up to alcohol and drug abusers.

 

B. Almost all employers with 1,000 or more workers offer EAPs.

 

C. Nearly three-quarters of small companies with 50 to 99 employees offer EAPs.

 

D. All of the above.

 

39. Which of the following is not true about employee theft?

A. Almost half of all inventory losses are due to employee theft in the U.S.

 

B. It is a significant economic, social, and ethical problem in the workplace.

 

C. Almost half of all employees have stolen from an employer at least once in his or her career.

 

D. Employees damage coworkers and their employers by stealing from the company.

 

40. Polygraph testing:

A. Is encouraged by the Employee Polygraph Protection Act of 1988.

 

B. Is used by 85 percent of U.S. companies as a pre-employment screening procedure.

 

C. Has been replaced by written psychological tests.

 

D. Is used by 85 percent of U.S. companies to discover employee theft.

 

41. The right to free speech is protected in the United States by the:

A. Constitution.

 

B. Patriot Act.

 

C. False Claims Act.

 

D. Fair Labor Standards Act.

 

42. When an employee believes their employer has done something that is wrong or harmful to the public, and he or she reports alleged organizational misconduct to the media, government, or high-level company officials, what has occurred?

A. Insider trading.

 

B. Hot-lining.

 

C. Whistle-blowing.

 

D. Snitching.

 

43. The Sarbanes-Oxley Act makes it illegal for employers to:

A. Sue federal contractors for fraud.

 

B. Retaliate against whistle-blowers who report information that could have an impact on the value of a company’s shares.

 

C. Hire employees who have a prior record of accounting fraud.

 

D. Both B and C, but not A.

 

44. Which law allows individuals who sue federal contractors for fraud to receive up to 30 percent of any amount recovered by the government?

A. False Standards Act.

 

B. Economic Priorities Act (as amended in 1999).

 

C. U.S. False Claims Act (as amended in 1986).

 

D. Fair Labor Standards Act.

 

45. Only after which of the following conditions is (are) met, should the whistle-blower go public?

A. The unreported act would do serious and considerable harm to the public.

 

B. The employee has tried and failed to resolve the issue internally.

 

C. Reporting the problem publicly probably will not resolve the issue.

 

D. Both A and B, but not C.

 

16. Variation in the important human characteristics that distinguish people from one another is called:

A. Workforce variability.

 

B. Diversity.

 

C. Difference.

 

D. Affirmative action.

 

17. Age, ethnicity, gender, mental or physical abilities, race, and sexual orientation are what dimensions of diversity?

A. Primary.

 

B. Secondary.

 

C. Tertiary.

 

D. Legal.

 

18. The growing diversity in the U.S. workforce is due to:

A. Millennials entering the workforce.

 

B. Immigration from other countries.

 

C. Shifting patterns of work and retirement.

 

D. All of the above.

 

19. Which ethnic group, as defined by the U.S. Census, represents the fastest-growing segment of the labor force?

A. African-Americans.

 

B. Hispanics.

 

C. Asians.

 

D. Native Americans.

 

20. A survey of hiring managers indicated that millennials were:

A. More technologically adept than their seniors.

 

B. Narcissistic and hard to retain.

 

C. Expected to stay in their jobs less than three years.

 

D. All of the above.

 

21. Which of these statements is true regarding women in the United States workforce?

A. The percentage of working women declined slightly in 2013.

 

B. A lack of family-friendly business policies has made it difficult for working mothers.

 

C. The participation rates of women and men in the workforce have diverged.

 

D. Both A and B, but not C.

 

22. As of 2013, which of the following accurately describe(s) the pay gap for full-time working women and minorities in the United States, as compared to white men?

A. On average, women and persons of color earn lower pay.

 

B. Overall, black men earn about 75 percent more pay.

 

C. The pay gap has decreased by about 5 percent for both Hispanic men and women.

 

D. Both A and C, but not B.

 

23. Which of the following is not true about occupational segregation?

A. It concentrates women in traditionally female-dominated jobs.

 

B. The pay gap in American businesses persists, in part, because of it.

 

C. It means that women cannot get the jobs that could break the cycle of relatively low pay.

 

D. The large pay gap for Hispanic workers partly reflects their concentration in several high-paying occupations.

 

24. Why does the inclusion of women on corporate boards improve company performance?

A. Alternative courses of action are more realistically considered.

 

B. Women bring different life experiences to discussions.

 

C. Women are more likely to raise multiple stakeholder concerns.

 

D. All of the above.

 

25. The term “Glass walls” refers to:

A. Fewer opportunities for direct upward advancement.

 

B. Fewer opportunities to move sideways into jobs that lead to the top.

 

C. Reliance on word of mouth by recruiters for top positions — “the old boys’ network” from which women are excluded.

 

D. A company’s lack of commitment to diversity.

 

26. Recently released workplace statistics for high tech companies reveal:

A. A majority of their workers are white or Asian.

 

B. Women are more likely to be in technical roles.

 

C. Pinterest is the only high tech company surveyed with a majority female workforce.

 

D. No high tech company surveyed had a female CEO or COO.

 

27. Among minority-owned firms in the mid-2010s, the most numerous were those owned by:

A. Asians.

 

B. African-Americans.

 

C. Hispanics.

 

D. Native Americans.

 

28. Which of the following government rules on equal treatment of employees does not apply to businesses?

A. Discrimination on the basis of race, color, religion, sex, national origin, disability or age is prohibited in all employment practices.

 

B. Government contractors must have written positive affirmative action plans to overcome the past and present effects of discrimination in their work force.

 

C. Women and men must receive equal pay for performing equal work.

 

D. Affirmative action plans must be permanent.

 

29. Executive Order 11246, established in 1965, mandates:

A. Affirmative action for all government employees.

 

B. Affirmative action for all federal contractors and subcontractors.

 

C. Equal pay for equal work for all federal contractors and subcontractors.

 

D. Family and medical leave for all federal employees for illness, or the birth of a child.

 

30. Which law eliminated certain time restrictions for filing pay discrimination lawsuits?

A. Lilly Ledbetter Fair Pay Act of 2009.

 

B. Family and Medical Leave Act of 1993.

 

C. Equal Opportunity Employment Act of 1972.

 

D. Equal Pay Act of 1963.

 

31. Which of the following is an argument against affirmative action?

A. It costs American businesses too much money.

 

B. There are no mechanisms in place to verify that it is actually taking place.

 

C. It is inconsistent with the principles of fairness and equality.

 

D. It violates individuals’ basic human rights.

 

32. Sexual harassment applies to:

A. Only men who are being harassed.

 

B. Only women who are being harassed.

 

C. Either men or women who are being harassed.

 

D. Only attractive employees who are being harassed.

 

33. Racial harassment is illegal under:

A. Title VII of the Civil Rights Act.

 

B. The Third Amendment to the Constitution.

 

C. The Equal Pay Act.

 

D. The Family Medical Leave Act.

 

34. Which of these statements is (are) true regarding sexual harassment?

A. Most sexual harassment incidents target women.

 

B. Sexual harassment is illegal in the United States.

 

C. The United States Equal Employment Opportunity Commission is empowered to sue on behalf of victims.

 

D. All of the above.

 

35. Companies can combat sexual and racial harassment—and protect themselves from expensive lawsuits—by:

A. Developing a zero-tolerance policy on harassment and communicate it clearly to employees.

 

B. Establishing a complaint procedure and act quickly to resolve any problems.

 

C. Bribing employees with money to avoid a lawsuit.

 

D. Both A and B, but not C.

 

36. Which of the following is not a benefit of managing diversity and inclusion effectively?

A. These businesses get tax breaks from the federal government.

 

B. These businesses can often more effectively serve customers.

 

C. These businesses are better able to attract and retain workers from a variety of backgrounds.

 

D. Businesses with a diverse workforce boost innovation for the firm.

 

37. According to a Forbes study, what percentage of executives agreed that diversity encourages innovation?

A. 10 percent.

 

B. 50 percent.

 

C. 68 percent.

 

D. 85 percent.

 

38. Why does a diverse and inclusive workforce benefit a firm supporting a global market?

A. A variety of language skills serves the global customer base well.

 

B. Cultural insensitivity helps to retain customers.

 

C. Understanding differences across markets restricts innovation.

 

D. Both A and C, but not B.

 

39. How do effective diversity and inclusion programs typically impact a firm’s reputation?

A. The reputation is damaged.

 

B. The reputation is not affected.

 

C. The number of discrimination lawsuits increases.

 

D. The number of discrimination lawsuits decreases.

 

40. Which of the following actions can a company take to effectively manage diversity and inclusion?

A. Do not actively recruit ethnic minority workers.

 

B. Set up a diversity council to monitor the company’s goals.

 

C. Fire existing workers and replace them with ethnically diverse workers.

 

D. All of the above.

 

41. A company can increase diversity and inclusion in the workforce by:

A. Accommodating family needs outside of work.

 

B. Moving all operations overseas.

 

C. Hiring only foreign-born managers.

 

D. Showing foreign films weekly.

 

42. Which of the following is (are) true about child care assistance in the workplace?

A. It helps reduce employee absenteeism and tardiness.

 

B. It aids in recruiting workers by making the company more attractive to parents.

 

C. It helps retain talented employees.

 

D. All of the above.

 

43. When a mother or father is granted time off when children are born or adopted and during the early months of a child’s development, this is called:

A. The parent track.

 

B. Baby care.

 

C. Parental leave.

 

D. Family leave.

 

44. Under the Family and Medical Leave Act (FMLA), passed in 1993:

A. Companies that employ 100 or more people must grant unpaid, job protected leaves of up to 12 weeks to employees faced with serious family needs.

 

B. Companies that employ 50 or more people must grant unpaid, job protected leaves of up to 36 weeks to employees faced with serious family needs.

 

C. Companies that employ 50 or more people must grant unpaid, job protected leaves of up to 12 weeks to employees faced with serious family needs.

 

D. Companies that employ 50 or less people are required to do more for expectant and new parents.

 

45. The current trend in the United States of firms’ eliminating domestic partner benefits is largely due to:

A. The legalization of same-sex marriage in 2015.

 

B. The costs became prohibitive.

 

C. State laws banned domestic partner insurance coverage.

 

D. Insurance companies refused to provide coverage.

 

16. Both large and small businesses have adopted sustainable practices to what advantage:

A. Cost savings from operational efficiency.

 

B. Opportunity to serve emerging economies.

 

C. Reduction of regulatory risk.

 

D. All of the above.

 

17. Natural capital refers to the world’s:

A. Supply of geology, soil, air, water and all living things.

 

B. Combined stock ownership.

 

C. Combined capital investments.

 

D. Supply of sustainable developers.

 

18. Sustainable development:

A. Meets the needs of the present while compromising the ability of future generations to meet their own needs.

 

B. Gives precedence to environmental over economic considerations.

 

C. Balances economic and environmental considerations.

 

D. Gives precedence to present needs over future needs.

 

19. The core idea(s) of sustainable development is(are):

A. Economic development must be accomplished sustainably.

 

B. Poverty is an underlying cause of environmental degradation.

 

C. Affluence is an underlying cause of environmental degradation.

 

D. Both A and B, but not C.

 

20. Which of these factors has accelerated the current ecological crisis?

A. Population reduction.

 

B. World income equality.

 

C. Rapid industrialization.

 

D. All of the above.

 

21. Which of the following statements is not true about the population?

A. Over the next century, population growth is expected to be greatest in developed nations.

 

B. For many thousands of years, population growth was gradual.

 

C. Industrial production would have to quintuple over the next 40 years in order to maintain the same living standard that people have now, given expected population growth.

 

D. Just 10,000 years ago, the earth was home to no more than 10 million humans, scattered in small settlements.

 

22. Why is income inequality an environmental problem?

A. People in the richest countries consume many natural resources.

 

B. People in the poorest countries often misuse natural resources.

 

C. People in the richest countries have strong environmental values.

 

D. Both A and B, but not C.

 

23. Rapid economic development is often accompanied by:

A. Increasing population growth.

 

B. Greatly decreased crop yields.

 

C. Rising incomes, bringing higher rates of both consumption and waste.

 

D. Decreasing incomes, bringing rates of both consumption and waste.

 

24. The amount of land and water a human population needs to produce the resources it consumes and to absorb its wastes given prevailing technology is called:

A. Ecological footprint.

 

B. Technological innovation.

 

C. Sustainable development.

 

D. Consumption footprint.

 

25. Which pattern of consumption is recommended to reduce humanity’s global footprint?

A. Buying goods from firms that always seek to maximize their profits.

 

B. Choosing less harmful products.

 

C. Building more transit stops on the outskirts of town.

 

D. Eating more beef.

 

26. A shared resource, such as land, air, or water, that a group of people uses collectively is a(n):

A. Economic village.

 

B. Collective resource.

 

C. Global unification.

 

D. Commons.

 

27. Which of the following statements is(are) true about global warming?

A. The earth has already warmed by between 0.7 and 1.1 degrees Celsius over the past century.

 

B. Burning fossil fuels is the leading contributor of global warming.

 

C. The amount of greenhouse gases in the atmosphere has increased by as much as 40 percent since the Industrial Revolution.

 

D. All of the above.

 

28. By promoting the use of clean cookstoves in developing nations, a global alliance hopes to reduce:

A. Deforestation.

 

B. The burning of fossil fuels.

 

C. Black carbon.

 

D. Methane.

 

29. A thin layer of gas that protects the earth from excessive ultraviolet radiation from the sun is:

A. Ozone.

 

B. Carbon dioxide.

 

C. Methane.

 

D. Oxygen.

 

30. Scientists believe that if the Montreal Protocol is honored the ozone layer will recover by:

A. 2015.

 

B. 2035.

 

C. 2050.

 

D. Never.

 

31. The beverage industry’s partnership Refrigerants Naturally! is attempting to:

A. Reduce water usage.

 

B. Increase the amount of arable land in use.

 

C. Reduce the use of ozone-depleting chemicals.

 

D. Increase the consumption of natural beverages.

 

32. With respect to fresh water, according to one estimate, if it were possible to eliminate pollution, capture all available fresh water, and distribute fresh water equitably:

A. Demand would exceed supply within a hundred years.

 

B. There would be a balance between demand and supply within a hundred years.

 

C. Supply would exceed demand within a hundred years.

 

D. None of the above.

 

33. Which of the following statements is not true about arable land?

A. It is a nonrenewable resource.

 

B. Over 20 percent of the irrigated lands in developing countries have been salinized.

 

C. Poor farming practices have caused arable lands to turn into deserts.

 

D. Soil erosion has threatened many of the arable lands.

 

34. Which of the following is not true about rain forests?

A. They are the planet’s richest areas in terms of biological diversity.

 

B. They will be severely depleted within the next eight years.

 

C. They account for about seven percent of the earth’s surface.

 

D. They account for somewhere between 40 to 75 percent of the earth’s species.

 

35. Reasons for the destruction of rain forests include:

A. Commercial logging.

 

B. Cattle ranching.

 

C. Conversion of forests to plantations.

 

D. All of the above.

 

36. The commitments of the Convention on Biological Diversity include:

A. Developing national conservation strategies.

 

B. Eliminating CFC production.

 

C. Population control education.

 

D. Massive irrigation projects in developing countries.

 

37. Which of these activities is not considered to be a marine ecosystem threat?

A. Overfishing.

 

B. Ocean pollution.

 

C. Coastal development.

 

D. Ocean alkalinity.

 

38. Life-cycle analysis involves:

A. Accurately recording the production costs at each stage of a product’s life cycle.

 

B. Collecting information regarding the lifelong environmental impact of a product, from extraction to disposal.

 

C. Reducing recycling costs for disposable products.

 

D. Increasing productivity while improving the environment.

 

39. The Sustainability Consortium organized to advance life-cycle analysis for thousands of products includes all of the following companies except:

A. Walmart.

 

B. SAP.

 

C. Alcoa.

 

D. Google.

 

40. Which of the following is an example of industrial ecology in practice?

A. Developing a paper recycling program in business offices.

 

B. Using wastes from one process as raw materials for another process.

 

C. Manufacturing recyclable containers for products.

 

D. All of the above.

 

41. The idea that companies have a continuing responsibility for the environmental impact of their products or services, even after they are sold is called:

A. Life-cycle analysis.

 

B. Product life responsibility.

 

C. Extended product responsibility.

 

D. Extended product commitment.

 

42. An organization that produces net zero emissions of greenhouse gases is achieving:

A. Carbon offsets.

 

B. Carbon credits.

 

C. Carbon neutrality.

 

D. Black carbon.

 

43. Which of the following illustrates the idea of sustainable development through technology cooperation?

A. Worldwide conferences to encourage developing countries to invest in technological joint ventures with other developing countries.

 

B. The development of long-term partnerships between companies in developed and developing countries to transfer environmental technologies.

 

C. Advanced countries developing and selling at a profit environment technologies to developing countries.

 

D. All countries developing their own environmental technology in order to solve their own problems.

 

44. An example of codes of environmental conduct that have been developed by and for specific industries include:

A. The Equator Principles.

 

B. The Forest Stewardship Principles.

 

C. The Greenhouse Gas Protocol.

 

D. A and B but not C.

 

45. The most successful global businesses in coming years will be those companies that:

A. Develop short-term partnerships between companies in developing countries to transfer environmental technologies.

 

B. Recognize the imperative for sustainable development as an opportunity both for competitive advantage and ethical action.

 

C. Avoid fully accounting for environmental costs in calculating measures of production such as the gross domestic product (GDP).

 

D. Produce products with a limited useful life.

 

16. Which of these statements is true regarding lead firms and their suppliers in the wake of the global financial crisis?

A. The number of widely used suppliers decreased.

 

B. Lead firms preferred larger suppliers.

 

C. Lead firms sought ongoing strategic relationships.

 

D. All of the above.

 

17. Which type of supplier is hired to provide products or services directly to a lead firm?

A. Tier-1.

 

B. Tier-2.

 

C. Subcontractors.

 

D. Networks.

 

18. As a stakeholder, suppliers’ interests include:

A. Earning income.

 

B. Utilizing productive capacity efficiently.

 

C. Building short-term, but profitable, business relationships.

 

D. Both A and B, but not C.

 

19. A supplier that controls critical worker skills and technical know-how holds which type of power over their lead firm?

A. Economic.

 

B. Informational.

 

C. Legal.

 

D. Voting.

 

20. A visual representation of the many links between a lead firm and its suppliers, superimposed on a geographical map is called a:

A. Linked list.

 

B. Supply chain map.

 

C. Supply web.

 

D. Network map.

 

21. Social impacts of global supply chains include:

A. Wages.

 

B. Working conditions.

 

C. Employee health.

 

D. All of the above.

 

22. The International Labor Organization (ILO) identifies child labor by which factors?

A. A child’s age.

 

B. The work hours.

 

C. The child’s work experience.

 

D. Both A and B, but not C.

 

23. About 80 percent of human trafficking victims are:

A. Women and girls forced into prostitution.

 

B. Men enslaved into farming.

 

C. Men and women involuntarily placed in textile factories.

 

D. Low-paid hospitality workers.

 

24. Which of these conditions raise environmental concerns for supply chain managers?

A. The distance of transporting goods from their source to the consumer.

 

B. Efficiency within the supply chain.

 

C. The consolidation of carbon emissions.

 

D. Both A and B, but not C.

 

25. According to a recent survey of supply chain managers, which of these social and environmental issues was the most important?

A. Supplier diversity.

 

B. Energy efficiency.

 

C. Ethical issues.

 

D. Health and safety.

 

26. Which of these statements is not true about supply chain transparency?

A. A firm’s social, ethical, and environmental responsibility is revealed.

 

B. Technology is enhancing supplier transparency.

 

C. Brand loyalty among consumers is reduced by a firm’s revelations.

 

D. Recent audits and certifications are publicized.

 

27. The lack of jurisdiction of home country governments over supplier behavior is exemplified by:

A. The United States Department of Labor having no control over safety in Indonesia.

 

B. OSHA being unable to enforce laws in Alabama.

 

C. Business elites in developing countries effectively blocking regulation.

 

D. The Global Compact having moral authority but no enforcement power.

 

28. Under which of these conditions is private governance most likely to emerge?

A. Small lead firms have leverage over larger suppliers.

 

B. Large lead firms have leverage over larger suppliers.

 

C. The public is totally satisfied with a firm’s social and environmental performance.

 

D. Firms with highly visible brands are more vulnerable to reputational damage.

 

29. Which of these statements accurately describe codes of conduct?

A. Most early codes of conduct were developed by individual companies.

 

B. The adoption rate of industry-specific codes of conduct is currently decreasing.

 

C. Standard-setting organizations have failed to influence industries and individual firms.

 

D. The costs of building common industry standards have become prohibitive.

 

30. Which groups often collaborate when developing industry-wide codes of conduct?

A. Government officials.

 

B. Employees.

 

C. Consumer representatives.

 

D. All of the above.

 

31. According to a 2013 survey of senior supply chain managers, what is the leading reason to invest in supplier social responsibility?

A. To reduce costs.

 

B. To satisfy government regulations.

 

C. To create a positive image and enhance brand equity.

 

D. To avoid disruptions of product supply.

 

32. Richard M. Locke argues that global supply chains are best managed through a combination of public and private governance because:

A. Government-enforced laws give legitimacy to demands for workplace changes.

 

B. Regulators benefit from record-keeping required by private companies’ codes of conduct.

 

C. Public and private organizations are able to share the enforcement workload.

 

D. All of the above.

 

33. Which type of supplier audit is being used when a company hires and trains its own staff of auditors?

A. External.

 

B. Third-party.

 

C. Factory.

 

D. Internal.

 

34. This type of audit is perceived by stakeholders as more objective and reliable:

A. Internal.

 

B. Third-party.

 

C. Government.

 

D. Crowd-pleasing.

 

35. What is one drawback of conducting supplier audits?

A. Workers trust the auditors to the point of giving away company secrets.

 

B. Audits scale so well across the supply chain that only general averages can be collected.

 

C. On-site inspections are expensive.

 

D. On-site inspections are so fast that teams must conduct hundreds of them in a single day.

 

36. When suppliers endure audit after audit by different lead firms, this is called:

A. Crowd-sourced auditing.

 

B. Third-party auditing.

 

C. Audit chaos.

 

D. Audit fatigue.

 

37. Which of these programs offer a common auditing tool for sharing data on the labor, environmental and ethical practices of suppliers?

A. Sustainable Compliance Initiative.

 

B. Federal Trade Commission.

 

C. Sedex Global.

 

D. Both A and C, but not B.

 

38. According to a recent survey, what percentage of firms would terminate a supplier if serious violations were found?

A. 7 percent.

 

B. 26 percent.

 

C. 48 percent.

 

D. 97 percent.

 

39. When a lead firm invests in supplier resources or offers training, this is an example of:

A. Root cause analysis.

 

B. Supplier development.

 

C. Supply chain auditing.

 

D. Shared value.

 

40. How can a lead firm improve a supplier’s performance when the cost to replace the supplier is high?

A. Engage the supplier in capability-building.

 

B. Fire the supplier.

 

C. Report the supplier to the Better Business Bureau.

 

D. Build the supplier’s products internally.

 

41. Studying the underlying cause of repeated supplier violations is called:

A. Capability-building.

 

B. Supplier scoring.

 

C. Root cause analysis.

 

D. Supply chain auditing.

 

42. Which of these measures is (are) frequently used to rate suppliers when using an integrated supplier scorecard?

A. Environmental performance.

 

B. Product quality.

 

C. Number of employees.

 

D. Both A and B, but not C.

 

43. When firms invest in suppliers to exchange knowledge and collaborate on improvements, they create shared value for:

A. The supplier only.

 

B. The lead firm only.

 

C. Both the supplier and the lead firm.

 

D. The public.

 

44. When lead firms work with suppliers they can create shared value such as:

A. Higher income for the supplier.

 

B. Higher quality products for customers.

 

C. A more stable supply of products.

 

D. All of the above.

 

45. What is the first step that lead firms take to develop their suppliers?

A. Creating shared value.

 

B. Capability building.

 

C. Supplier monitoring.

 

D. Publicizing the results.

 

 

 

16. Which civic need(s) does a community depend on businesses to provide through taxes and monetary donations?

A. Schools.

 

B. Health care.

 

C. The arts.

 

D. All of the above.

 

17. Business depends on the community for:

A. Education.

 

B. Public services.

 

C. Transportation systems.

 

D. All of the above.

 

18. Which type of business community consists of people who work near the company?

A. Site community.

 

B. Virtual community.

 

C. Community of interest.

 

D. Employee community.

 

19. Which of the following statements is true about the relationship between business and the community?

A. It is one of mutual interdependence.

 

B. Business has more responsibility towards community than the community does towards business.

 

C. Communities possess more social power than businesses do.

 

D. All of the above statements are true.

 

20. The term civic engagement describes:

A. The active involvement of businesses and individuals in improving communities.

 

B. A competitive, free market environment.

 

C. Strong governmental regulation to control businesses at the municipal level.

 

D. A close and collaborative business-government relationship.

 

16. Bill Joy, Sun Microsystems’ chief scientist, warned that the rapid advances of technology:

A. Solve every insurmountable problem in no time flat.

 

B. Move too fast, and can take on a life of its own.

 

C. Are the safest and most human friendly known to civilization.

 

D. Must be controlled by the companies that invest in them to protect society.

 

17. How has the increase in information technology affected criminal activities globally?

A. Crime has remained about the same.

 

B. Crime has decreased due to better monitoring efforts.

 

C. The need for government cooperation has been reduced.

 

D. New mechanisms for stealing data, trafficking contraband and laundering money have emerged.

 

18. The primary reason that governments try to keep pace with technology is to:

A. Control the speed of innovation.

 

B. Manage the cost of technology.

 

C. Ensure that the public is protected.

 

D. Avoid threats to individuals.

 

19. Which country recently required all video-streaming sites to be approved by the government or risk having their content banned?

A. Iran.

 

B. Pakistan.

 

C. North Korea.

 

D. China.

 

20. In 2013, North Korea opened Internet access to which group of people?

A. All of its natural citizens.

 

B. South Korean residents.

 

C. Foreigners using mobile devices and laptops.

 

D. Investors of Koryolink, a state-owned telecommunications company.

 

21. Restrictive governments often reduce or eliminate citizen access to the Internet and social media sites in order to?

A. Suppress political dissent.

 

B. Impose religious or ideological views.

 

C. Increase bandwidth for government usage.

 

D. A and B, but not C.

 

22. Which of these actions have Western nations taken to fight cybercrime?

A. Protected only the individual’s intellectual property.

 

B. Guaranteed only personal information privacy.

 

C. Accessed public information strictly for the private good.

 

D. Some nations protected personal privacy and others accessed private information for the public good.

 

23. Which of the following is true about the U.S. government’s PRISM program?

A. Technology companies could voluntarily turn over individual private communications.

 

B. The clandestine program was hidden by Edward Snowden.

 

C. Critics of the program called it an unwarranted intrusion by Big Brother.

 

D. Google challenged the program rules and won.

 

24. The purpose of the right to be forgotten is to:

A. Increase protection of privacy and personal information.

 

B. Protect property rights.

 

C. Protect intellectual property.

 

D. Prevent software privacy.

 

25. Intellectual property refers to:

A. Protecting one’s ideas, concepts, and symbolic creations.

 

B. Special laws protecting copyrights, patents, and trademarks.

 

C. Prohibiting the downloading of commercial software or videogames.

 

D. All of the above.

 

26. Software piracy is a major problem in which part of the world?

A. Globally.

 

B. North America only.

 

C. Asia only.

 

D. North America and Asia.

 

27. This Act makes it a crime to circumvent antipiracy measures built into most commercial software agreements between the manufactures and their users:

A. Software Business Piracy Act.

 

B. Digital Millennium Copyright Act.

 

C. Intellectual Property Millennium Act.

 

D. Copyright Act of 1998.

 

28. Most U.S. state laws permit the monitoring of employees through:

A. Tracking software.

 

B. Eavesdropping on phone calls.

 

C. Recording computer keystrokes.

 

D. All of the above.

 

29. MIT researchers determined that 90 percent of shopper’s credit-card transactions could be used to:

A. Uniquely identify an individual’s shopping habits and preferences.

 

B. Collect individual social security numbers.

 

C. Identify an individual shopper using only four bits of secondary information.

 

D. Both A and C, but not B.

 

30. Supporters of digitized medical records claim that:

A. The number of common medical errors has remained constant.

 

B. Computerized prescription-ordering systems avoided over seven million mistakes.

 

C. Electronic alerts prevented dangerous drug combinations from being prescribed.

 

D. Both B and C, but not A.

 

31. Downloading illegal files, spreading computer viruses, and stealing from online bank accounts is collectively referred to as:

A. Hacking.

 

B. Software piracy.

 

C. Cybercrime.

 

D. Internet censorship.

 

32. These individuals hack into government or corporate computer networks and then release information to try to embarrass those organizations or gain leverage against these organizations:

A. Software pirates.

 

B. Comodohackers.

 

C. Hacktivists.

 

D. Data trafficking groups.

 

33. Which of these statements is (are) true about the group known as Anonymous?

A. They are a tightly bonded group of hacktivists.

 

B. They are distinguished by masks with an over-sized smile and red cheeks.

 

C. They supported WikiLeaks and the Occupy movement.

 

D. Both B and C, but not A.

 

34. Hackers who intend to profit from their actions are motived by:

A. The need for media attention.

 

B. A desire to retaliate against the government.

 

C. The thrill of it.

 

D. Financial incentives.

 

35. Which website received a favorable review because they limited the ability of hackers to take advantage of one another?

A. Hackers for Hire.

 

B. Hacker’s List.

 

C. Facebook.

 

D. ISIS.

 

36. Hackers employed by businesses or governments to intentionally discover weaknesses in information systems are called:

A. Grey hatters.

 

B. Black hatters.

 

C. White hatters.

 

D. Mad hatters.

 

37. Which of these statements accurately describe hacktivists known as grey hatters?

A. They always work in tight-knit groups.

 

B. They are highly welcomed by businesses.

 

C. They seek retaliation on businesses.

 

D. They seek media attention and profits.

 

38. Cybersecurity experts recommend including which essential elements for an incident-response plan for cyberattacks?

A. Support from executive leadership.

 

B. Involvement by all functional departments.

 

C. Focus on how to respond to a breach.

 

D. All of the above.

 

39. A CIO is the company’s:

A. Chief intelligence officer.

 

B. Chief information officer.

 

C. Coordinator of international operations.

 

D. Controller of internal overhead.

 

40. In a study of CIOs from around the world, McKinsey & Company found that most CIOs reported to their:

A. Chief executive officer.

 

B. Chief financial officer.

 

C. Chief operating officer.

 

D. Managing supervisor.

 

41. Over time the role of the CIO:

A. Has remained the same.

 

B. Has decreased in level of responsibility.

 

C. Has changed dramatically, superseding the role of the chief executive officer.

 

D. Has changed dramatically, becoming more integrated into the overall strategic direction of the firm.

 

42. Which of the following is not a role of the CIO?

A. Acting as lead security officer.

 

B. Educating the organization about technology initiatives.

 

C. Marketing technology projects to stakeholders.

 

D. Monitoring the appropriate level of employee headcount.

 

43. This international gathering brought together leaders from the United States and dozens of European countries to address the global nature of cyberattacks:

A. Cyberattack Awareness Day.

 

B. Anti-cyber International.

 

C. International Defense Against Web Attacks (IDAWA).

 

D. Data Privacy Day.

 

44. Increased cyber activity by which country prompted NATO officials to brand them as “patriotic hackers”?

A. Russia.

 

B. Iran.

 

C. Iraq.

 

D. Mexico.

 

45. Which of these steps has the U.S. recently taken to counter cybercrime?

A. Setup a system of voluntary cybersecurity standards.

 

B. Opened a new center dedicated to managing cyber activities.

 

C. Passed sweeping new legislation that required Internet providers to guarantee security.

 

D. Both A and B, but not C.

 

 

 

 

21. Which of the following is a good way for a business to express its commitment to corporate citizenship?

A. By establishing community relations programs.

 

B. By behaving responsibly toward all its stakeholders.

 

C. By correcting problems associated with its operations.

 

D. All of the above.

 

22. Which of the following is a reason for businesses to get involved in the community?

A. To win local support for business activity.

 

B. To build social capital.

 

C. To meet stakeholder demands.

 

D. All of the above.

 

23. Social capital is a phrase that refers to all of the following, except:

A. The goodwill that is engendered by the fabric of social relations.

 

B. A close relationship between companies and groups in the community.

 

C. The norms and networks that enable collective action.

 

D. Funds set aside for company events.

 

24. What is the primary goal of a community relations department?

A. To improve the financial bottom line.

 

B. To build relationships with important community groups.

 

C. To collaborate with other company teams to create policy.

 

D. Both B and C, but not A.

 

25. Which of the following is not a reason for businesses to establish community relations departments?

A. Working with local governments.

 

B. Managing donations of goods and services.

 

C. Encouraging employee volunteerism.

 

D. Managing international relations projects for economic development.

 

26. According to a survey of community relations managers, what is the most important social issue facing communities today?

A. Education.

 

B. Health care.

 

C. Public safety.

 

D. Housing.

 

27. What is one reason that firms partner with communities to increase economic development?

A. To expand environmental sustainability.

 

B. To develop workplace skills.

 

C. To control the rate of entrepreneurship.

 

D. To avoid paying higher taxes.

 

28. Which organization(s) have taken the lead in revitalizing neighborhoods?

A. Construction companies.

 

B. Life insurance firms.

 

C. Health insurance companies.

 

D. Both B and C, but not A.

 

29. Habitat for Humanity is considered a:

A. Corporation.

 

B. Government division.

 

C. Nongovernmental organization.

 

D. Program for the homeless.

 

30. Minority enterprises often do business in locations with:

A. High crime rates.

 

B. Poor transportation.

 

C. Low-quality public services.

 

D. All of the above.

 

31. Which of these statements is (are) true regarding minority, women and disabled veteran-owned firms?

A. They often operate at an economic disadvantage.

 

B. They have a high rate of business failure.

 

C. They face competition from more established firms.

 

D. All of the above.

 

32. As communications improve and people around the world are able to witness the horrors of natural disasters, terrorism, and war, international relief efforts by corporations are becoming:

A. Less important.

 

B. More important.

 

C. Obsolete because of social media.

 

D. A liability because of negative media.

 

33. Another term for corporate giving is corporate:

A. Welfare.

 

B. Goodwill.

 

C. Philanthropy.

 

D. Citizenship.

 

34. In 2014, the smallest source of philanthropic contributions in the United States came from which organization?

A. Individuals.

 

B. Foundations.

 

C. Corporations.

 

D. Bequests.

 

35. Average corporate giving in the Unites States:

A. Was lower in the 1980s than it is now.

 

B. Is far below the 10 percent tax deduction now permitted.

 

C. Has increased steadily in the past decade.

 

D. All of the above.

 

16. Since 2000, most changes to federal regulatory oversight of environmental protection have been due to:

A. Supreme Court rulings.

 

B. Agency rulemaking.

 

C. Executive action.

 

D. Both B and C, but not A.

 

17. In the United States, the federal government regulates which of the following major areas of environmental protection?

A. Air pollution.

 

B. Water pollution.

 

C. Land pollution.

 

D. All of the above.

 

18. Which of the following statements is true of air pollution?

A. Air pollution occurs when more pollutants are emitted into the atmosphere than can be safely absorbed and diluted by natural processes.

 

B. A majority of the people in the U.S. breathe unsafe air for at least part of the year.

 

C. Air pollution caused by particulate matter is responsible for fewer than 600 premature or unnecessary deaths annually.

 

D. The EPA has identified hundreds of “criteria” pollutants, relatively common harmful substances that serve as indicators of overall levels of air pollution.

 

19. Which of the following statements is not true with respect to acid rain?

A. A primary source of acid rain is coal-fired utilities.

 

B. Acid rain occurs when carbon dioxide combines with water vapor in the atmosphere.

 

C. Acid rain is worse in some regions of the United States than others.

 

D. Acid rain degrades buildings.

 

20. Which of the following is not true about water pollution?

A. It affects crop yields.

 

B. It can be caused by pesticides and herbicides.

 

C. It can be caused by biodegradable products.

 

D. The Water Pollution Control Act maintains the integrity of all surface water in the United States.

 

21. In the U.S., most solid waste ends up:

A. Recycled.

 

B. Composted.

 

C. Incinerated.

 

D. In landfills.

 

22. Which country has made the greatest progress in reducing its solid waste stream?

A. United Kingdom.

 

B. Germany.

 

C. Sweden.

 

D. United States.

 

23. Which of the following is true about the Toxic Substances Control Act?

A. It required reductions in urban smog, acid rain, and greenhouse gas emissions.

 

B. It established a national policy to regulate, restrict, and, if necessary, ban toxic chemicals.

 

C. It promoted nontoxic chemicals and fuels for business use.

 

D. It authorized funds for treatment plans and toxic waste cleanup.

 

24. Environmental justice is a movement to:

A. Prevent inequitable exposure to risk, such as from hazardous waste.

 

B. Identify polluters and require them to pay for the cleanup of their toxic waste.

 

C. Reduce pollution at the source, rather than treat and dispose of waste at the “end of the pipe.”

 

D. Specifically restrict the use of dangerous pesticides which can pollute groundwater.

 

25. Which of the following statements is (are) true about the Comprehensive Environmental Response Compensation and Liability Act (CERCLA)?

A. It established a fund supported primarily by a tax on the petroleum and chemical companies.

 

B. It is regarded as one of the most successful environmental laws.

 

C. The funds collected are used to clean up sites where the original polluter cannot be identified.

 

D. Both A and C, but not B.

 

26. Which of the following statements is not true about environmental standards?

A. Regulatory agencies can establish standard allowable levels of pollutants.

 

B. The government has the power to command business firms to comply with certain standards.

 

C. The government rarely interferes in a business’s choice of pollution technology.

 

D. They are the most widely used methods of regulation.

 

27. The process of firms buying and selling the right to pollute is an example of which type of environmental regulation?

A. Command.

 

B. Control.

 

C. Market-based.

 

D. Emissions charges.

 

28. Which of the following is (are) true about emission fees?

A. Each business is charged for the undesirable pollution that it emits.

 

B. Companies emitting more pollutants end up paying more pollution taxes.

 

C. Revenues from emission fees can be used to support environmental efforts.

 

D. All of the above.

 

29. Which of the following is not true about the guidelines for sentencing environmental wrongdoers set by the U.S. Sentencing Commission in the event of a violation?

A. The penalties reflect the severity of the offense and the company’s demonstrated environmental commitment.

 

B. Businesses having an active compliance program would receive lighter sentences.

 

C. Businesses having no active compliance program would be granted an extension to develop a program.

 

D. Businesses that promptly assisted any victims would receive lighter sentences.

 

30. Which of the following is not a possible cost of environmental regulation?

A. Unemployment.

 

B. Reduced capital investment.

 

C. Corporate restructuring.

 

D. Lowered productivity.

 

31. Environmental regulations stimulate some sectors of the economy by:

A. Creating jobs in industries like environmental consulting, asbestos abatement, and instrument manufacturing.

 

B. Saving jobs in industries like fishing and tourism when natural areas are protected or restored.

 

C. Compelling businesses to become more efficient by conserving energy.

 

D. All of the above.

 

32. Which of the following is indicative of a firm in the pollution prevention stage of the corporate environmental responsibility model?

A. Realizing that it would be less efficient and more expensive to prevent pollution before it is created.

 

B. Focusing on all environmental impacts of the product life-cycle.

 

C. Minimizing or eliminating waste before it is created.

 

D. Incurring losses due to environmental costs.

 

33. General Electric’s “Ecomagination” effort to invest in clean technology is an example of:

A. Pollution prevention.

 

B. Product stewardship.

 

C. Clean technology.

 

D. None of the above.

 

34. Which stage of corporate environmental responsibility focuses on the full life cycle of a product?

A. Pollution prevention stage.

 

B. Clean technology stage.

 

C. Product stewardship stage.

 

D. Green management stage.

 

35. Being able to continue their activities indefinitely, without altering the carrying capacity of the earth’s ecosystem, is a characteristic of:

A. Ecologically sustainable organizations.

 

B. Concerned citizens.

 

C. Codes of environmental conduct.

 

D. Environmental regulations.

 

36. Which of these statements is true about ecologically sustainable organizations?

A. Making and transporting products using minimal energy.

 

B. Using more natural resources than they replenish.

 

C. Designing products with limited durability.

 

D. A and B, but not C.

 

37. Which of the following statements accurately describe the role of chief sustainability officer?

A. Typically reports to the CEO.

 

B. Supervises staff across functional areas.

 

C. Requires strong interpersonal skills.

 

D. All of the above.

 

38. Sustainability leaders have found that the most effective environmental management approach involves:

A. A team of line managers from across the business organization.

 

B. Leadership from top-level executives who make all corporate decisions.

 

C. Only shareholders.

 

D. An engaged board of directors that dictates strategy.

 

 

40. When businesses form voluntary, collaborative partnerships with environmental organizations and regulators to achieve specific objectives this is called:

A. Inter-organizational alliances.

 

B. Environmental partnerships.

 

C. Cross-functional teams.

 

D. Command and control.

 

41. Some researchers believe that business firms moving towards ecological sustainability results in:

A. Competitive advantages.

 

B. Decreased worker productivity.

 

C. More government regulation.

 

D. Less money for shareholders.

 

42. Companies that reduce pollution and hazardous waste, reuse or recycle materials, and operate with greater energy efficiency achieve a competitive advantage due to:

A. Technological innovation.

 

B. Product differentiation.

 

C. Green marketing.

 

D. Cost savings.

 

43. When companies develop a reputation for environmental excellence, and they produce and deliver products and services designed to attract environmentally aware customers, this is called:

A. Technological innovation.

 

B. Strategic planning.

 

C. Brand differentiation.

 

D. Cost savings.

 

44. When environmentally proactive companies seek out imaginative, innovative new methods for reducing pollution and increasing efficiency, they are adopting which strategy?

A. Technological innovation.

 

B. Product differentiation.

 

C. Brand differentiation.

 

D. Cost savings.

 

45. Companies that cultivate a vision of sustainability must adopt sophisticated strategic planning techniques to:

A. Increase the competitive advantage of other global organizations.

 

B. Detect the limited number of internal factors that influence the employee performance reviews.

 

C. Allow their top manager to assess the full range of the firm’s effects on the environment.

 

D. Increase the number of government regulations that are passed to reduce pollution.

 

 

 

 

36. Foreign-owned corporations use foundations:

A. More frequently than U.S. firms.

 

B. Less frequently than U.S. firms.

 

C. About as often as U.S. firms.

 

D. Only for setting up disaster relief.

 

37. The share of all giving made up by in-kind contributions of products and services has been:

A. Rising steadily over the past decade.

 

B. Declining steadily over the past decade.

 

C. Remaining relatively constant over the past decade.

 

D. Declining sharply over the past decade.

 

38. How do companies encourage their employees to volunteer their time?

A. By sponsoring specific projects.

 

B. By offering recognition for service.

 

C. By publicizing opportunities to serve.

 

D. All of the above.

 

39. Which of the following gives the most in-kind contributions?

A. Pharmaceutical companies.

 

B. High-technology companies.

 

C. Grocery retailers.

 

D. Publishing houses.

 

40. American Express established a consulting program that sent expert teams of employees into nonprofits to solve organizational problems. This can be considered an example of:

A. An in-kind contribution.

 

B. Skills-based volunteerism.

 

C. Community-based philanthropy.

 

D. Organizational support.

 

41. According to a Harvard Business Review study, which of the following is not an area in which corporate contributions are most likely to enhance a company’s competitiveness?

A. Context for strategy and rivalry.

 

B. Demand conditions.

 

C. Stakeholder management.

 

D. Factor conditions.

 

42. Factor conditions are strategic contributions focusing on:

A. The supply of trained workers, physical infrastructure, and natural resources.

 

B. Policies that create a more productive environment for competition.

 

C. The demand for a product or service.

 

D. All of the above.

 

43. Which of the following is not a strategy to help companies get the most benefit from their contributions?

A. Use targeted business methods to assess the impact of gifts.

 

B. Align priorities with employee interests.

 

C. Establish priorities even if they come into conflict with the firm’s core values.

 

D. Draw on unique competencies of the business.

 

44. A financial services firm decided to assess the return on its social investment in an educational program in local schools. As part of its assessment, it measured the improvement in learning among students who had participated in the program, compared with the learning of students who had not. Which of the following elements was assessed?

A. Inputs.

 

B. Outputs.

 

C. Impacts.

 

D. Value creation.

 

45. Which of the following is not a distinct period in corporate involvement in education reform from the 1980s to the present?

A. Direct involvement with specific schools.

 

B. Public policy initiatives in education.

 

C. Collaboration for systemic reform.

 

D. Total quality management of the education system.

 

16. This term refers to the practical applications of science and knowledge to commercial and organizational activities.

A. Technology.

 

B. E-commerce.

 

C. Agrarian.

 

D. Semantic.

 

17. Which of these specializations was/were spurred by the rapid changes in technology over the past few decades?

A. Smart manufacturing.

 

B. Wireless networks.

 

C. Processing of enormous amounts of data.

 

D. All of the above.

 

18. The self-reinforcing feature of technology means that:

A. Civilization develops at an uncontrollable pace.

 

B. Developing economies demand newer and larger innovations.

 

C. Technology acts as a multiplier to encourage is own faster development.

 

D. An invention in one place is localized only.

 

19. In the nomadic-agrarian phase of technology in society, people:

A. Hunted wild animals for meat.

 

B. Gathered wild plants for food.

 

C. Provided services.

 

D. Both A and B, but not C.

 

20. The phase of technology that focuses on building material goods and manual labor is:

A. Agrarian.

 

B. Service.

 

C. Industrial.

 

D. Information.

 

21. The place where information is stored, ideas are described, and communication takes place in and through an electronic network of linked systems is called:

A. The personal computer.

 

B. Cyberspace.

 

C. Cloud computing.

 

D. Communication.

 

22. We are currently in which phase in the development of technology?

A. Industrial.

 

B. Service.

 

C. Information.

 

D. Semantic.

 

23. Which of the following is not true about the service phase of technology?

A. It was the fourth phase in the development of technology.

 

B. It emphasized providing services.

 

C. It required manual and intellectual skills.

 

D. It dominated from 1900 to 1960.

 

24. The information phase of technology primarily requires:

A. Providing services.

 

B. Intellectual and electronic skills.

 

C. Manual and machine skills.

 

D. The same skills as needed in previous phases.

 

25. A technological application that uses biological systems or living organisms to make or modify products or processes for specific use is called:

A. Biosphere outcome.

 

B. Metatechnology.

 

C. Biology.

 

D. Biotechnology.

 

26. Which of the following countries is not one of the top 15 Internet users?

A. Singapore.

 

B. United Kingdom.

 

C. China.

 

D. United States.

 

27. Another name for unsolicited commercial emails is:

A. Spam.

 

B. Junk e-mail.

 

C. UCE.

 

D. All of the above.

 

28. Anti-spam legislation was passed by which country making it a crime to send unsolicited e-mail messages to people’s private e-mail addresses or cell phones:

A. China.

 

B. Japan.

 

C. United Kingdom.

 

D. Germany.

 

29. The practice of using fake business emails in order to trick users into divulging personal data, such as usernames and passwords, is called:

A. Phishing.

 

B. Pharming.

 

C. Tweeting.

 

D. Censorship.

 

30. Malware that is designed to maliciously steal and compromise financial customers is called:

A. Trojans.

 

B. Crimeware.

 

C. Auto-replicating worms.

 

D. Phishing.

 

31. The digital divide describes the gap between those:

A. Individuals who have technology and those who do not.

 

B. Businesses who use e-business and those who do not.

 

C. Hospitals who use online information and those who do not.

 

D. Individuals who have broadband technology and those who do not.

 

32. M-Commerce is facilitated primarily by:

A. Lap-tops.

 

B. Personal computers.

 

C. Mobile or cell phones.

 

D. The government.

 

33. A pain or numbness in your thumbs caused by constant e-mailing, messaging, or Internet surfing on hand-held devices is called:

A. BlackBerry thumb.

 

B. Cell phone thumb.

 

C. PDA thumb.

 

D. None of the above.

 

34. Which condition below accurately describes a “web-junkie”?

A. Plays video games for hours on end without a break.

 

B. Views the real-world more realistically.

 

C. Learns faster overall.

 

D. Creates “mega-moments”.

 

 

36. In some economically developed countries and most developing countries around the world genetically modified food was:

A. Looked upon with caution but generally accepted.

 

B. Welcomed as a way to increase crop yields.

 

C. Rejected by most governments.

 

D. Viewed with extreme caution.

 

37. What are the benefits of sequencing the human genome?

A. Provides early diagnosis of diseases.

 

B. Allows the development of generic drug-therapies.

 

C. Spurs new ways to prevent illnesses.

 

D. A and C only, not B.

 

38. Some argue that publishing personal DNA sequencing results is unethical because:

A. The results could compromise one’s employment situation.

 

B. Life insurance could be denied.

 

C. The cost of health insurance could rise.

 

D. All of the above.

 

 

40. The buying and selling of goods and services electronically is called:

A. M-commerce.

 

B. E-business.

 

C. Telecommunications.

 

D. Software piracy.

 

41. Which sales channel is projected to top $450 billion within the next several years?

A. Online sales.

 

B. Mobile sales.

 

C. Brick and mortar stores.

 

D. Flea markets.

 

42. The idea that every distribution channel must work together to deliver a unified and consistent customer experience is called:

A. Multi-channel.

 

B. Cyber Monday.

 

C. Fulfillment center.

 

D. Omnichannel.

 

43. The use of robotics in the workplace has increased recently because:

A. The cost of robots has decreased.

 

B. Robots are more reliable than people.

 

C. New collaborative machines have been invented.

 

D. All of the above.

 

44. Which of the following is not a potential source of personal private data?

A. Smartphones.

 

B. Internet connections.

 

C. Automobiles.

 

D. Broadcast radio.

 

45. In the U.S., the right to free speech:

A. Is an absolute privilege to all citizens.

 

B. Is a constant threat to every business.

 

C. Must be weighed against the consequences for the community.

 

D. Depends on state law.
  1. According to the ownership theory of the firm, a business should mainly be concerned with providing value for its:
  2. Shareholders.
  3. Customers.
  4. Board of Directors.
  5. Community.
  6. The instrumental argument says stakeholder management is:
  7. A more realistic description of how companies really work.
  8. Enhances financial performance.
  9. Simply the right thing to do.
  10. Determined by the amount of stock owned in the firm.
  11. A number of European countries require public companies to include employee members on their boards of directors, so:
  12. The employees are available to answer questions.
  13. Management does not have to attend the meetings.
  14. That their interests will be explicitly represented.
  15. They have more power than any other stakeholder
  16. Which one of the following is considered to be a nonmarket stakeholder of business?
  17. Customers.
  18. Environmental activist group (pressure group).
  19. Creditors.
  20. Stockholders.
  21. All of the following are external stakeholders of the firm except:
  22. Employees.
  23. Customers.
  24. Stockholders.
  25. Suppliers.
  26. The five types of stakeholders’ power recognized by most experts are:
  27. Voting, economic, political, legal, and informational power.
  28. Social, legal, environmental, economic, and political power.
  29. Social, regulatory, voting, governance, and media power.
  30. Economic, media, legal, stockholder, and political power.
  31. Customers can exercise economic stakeholder power by:
  32. Voting on a proposed merger for the company and a competitor.
  33. Boycotting products.
  34. Attending the company’s annual meeting.
  35. Applying for a job with the company.
  36. When a community group sues a company for health effects caused by the unsafe disposal of toxic chemicals, this is an exercise of a stakeholder’s:
  37. Legal power.
  38. Voting power.
  39. Economic power.
  40. Political power.

The Corporation’s Social Responsibility

  1. The iron law of responsibility says that:
  2. In the long run, those who do not use power responsibly will lose it.
  3. In the short run, a business should sacrifice social goals for economic goals.
  4. Following the law is more important than meeting social or economic responsibility.
  5. In the long run, economic responsibility leads to social responsibility
  6. Corporate social responsibility (CSR) means that a corporation should:
  7. Always forgo profit for the sake of the environment.
  8. Be held accountable for any of its actions that affect people, their communities, and their environment.
  9. Abandon its other missions.
  10. Put social responsibilities ahead of economic or legal responsibilities.
  11. Modern corporations should be socially responsible because they:
  12. Are responsible to the stockholders of the company.
  13. Have great power and influence in society.
  14. Are highly profitable.
  15. Generate dividends for the company stockholders.
  16. Scholars have found:
  17. No relationship between social and financial performance.
  18. A negative relationship between social and financial performance.
  19. An inverse relationship between social and financial performance.
  20. A positive association between social and financial performance.
  21. When undertaking social initiatives, a company:
  22. Must take out social responsibility insurance.
  23. Will always receive long-term profits.
  24. May sacrifice short-term profits.
  25. Risks going bankrupt in nearly all cases.
  26. The costs of corporate social responsibility may ultimately be passed on to all of the following stakeholders EXCEPT
  27. Employees, through fewer health benefits, lower wages, or expectations of higher productivity.
  28. Consumers, through higher prices.
  29. Investors through lower dividends
  30. Taxpayers, through higher taxes to support more social welfare programs.
  31. When businesses bring products and services to the many people in the world who have traditionally been

beyond the reach of global commerce, they are said to be:

  1. Serving the top of the triangle.
  2. Reaching the bottom of the globe.
  3. Serving the bottom of the pyramid.
  4. Focusing on the ends of the supply chain.

Ethics and Ethical Reasoning

  1. People’s ethical beliefs come primarily from:
  2. Legislative action and judicial decisions.
  3. Reading the company’s profit and loss statements.
  4. Their culture, religious background, family, and education.
  5. The organization’s code of ethics.
  6. Business executives find that a trusting, ethical relationship with a business partner is:
  7. Best left to not-for-profit companies.
  8. Too costly to maintain.
  9. Likely to cause legal problems.
  10. Often essential in conducting business.
  11. Under the U.S. Corporate Sentencing Guidelines, if a firm has developed a strong ethics program, corporate executives found guilty of criminal activity may have their sentence:
  12. Increased.
  13. Reduced.
  14. Unaffected.
  15. Decided by the company.
  16. The Sarbanes-Oxley Act:
  17. Forces firms with inaccurate financial reporting into Chapter 11 bankruptcy.
  18. Does not hold auditing firms liable for their client’s inaccurate account reporting.
  19. Requires executives to pay back bonuses based on earnings that are later proved fraudulent.
  20. Prohibits an auditing firm from providing the same client with non-auditing services.
  21. A purchasing agent directing her company’s orders to a firm from which she received a valuable gift, is an

example of:

  1. Conflict of interest.
  2. Ethical relativism.
  3. Moral development.
  4. Egoism.
  5. Which of the following examples best illustrate an ethics issue based on cross-cultural contradictions?
  6. Legally marketing a pesticide abroad that has been banned in the U.S.
  7. Circumventing government regulations to ensure company profits.
  8. Hiring child workers in violation of civil law.
  9. False and misleading advertising claims.
  10. When the benefits of an action outweigh its costs, the action is considered ethically preferred according to:
  11. Utilitarian reasoning.
  12. Virtue ethics.
  13. Theological reasoning.
  14. Plato and Aristotle.
  15. A just or fair ethical decision occurs when:
  16. The rights of all affected are considered.
  17. The greatest good for those with power is achieved.
  18. Benefits and burdens are distributed equally.
  19. All of the above.

Organizational Ethics and the Law

  1. The core components upon which a company’s ethical performance depends include:
  2. The values and virtues of the managers.
  3. The personal character of the managers and employees.
  4. The traditions, attitudes, and business practices built into a company’s culture.
  5. All of the above.
  6. All of the following are commitments of the Principles of the Code of Professional Conduct of the American

Institute of Certified Public Accountants except:

  1. The Public Interest.
  2. Objectivity and Independence.
  3. Due Process.
  4. Due Care.
  5. The most important step is taken toward improving ethical performance throughout the company when:
  6. The firm hires a university ethics professor to lecture employees on moral philosophy.
  7. Senior-level managers signal to employees that they believe ethics is a high priority.
  8. A consumer hot line is created and staffed 24 hours a day.
  9. The Justice Department launches an investigation of the firm’s pricing practices.
  10. The critical component in installing an effective ethics program is:
  11. To allow all employees the freedom to act as they wish.
  12. In hiring an expensive ethics consultant.
  13. The integration of various ethics safeguards into a comprehensive program.
  14. Maintaining the position as the industry sales leader.

The Challenges of Globalization

  1. A firm that would like to develop a global supply chain would:
  2. Manufacture components or supplies in other countries.
  3. Sell raw materials, components or supplies produced at home abroad.
  4. Purchase raw materials, components, or supplies from sellers in other countries.
  5. Check products that were manufactured abroad for defects in their home country.
  6. The acceleration of globalization has been driven by:
  7. Technological innovation.
  8. Transportation systems.
  9. Social and political reforms.
  10. All of the above.
  11. Technological innovation has aided the spread of globalization by:
  12. Building advanced technologies that can be sold in the global marketplace.
  13. Building advanced technologies that can be bought in the global marketplace.
  14. Leveling the playing field and allowing all to participate on an equal footing in global commerce.
  15. All of the above.
  16. The loan policies of the World Bank:
  17. Are generous to developing countries seeking to expand their educational systems.
  18. Impose strict restrictions on debtor countries which can sometimes lead to hardship.
  19. Are generally only available to rich nations.
  20. Are open to any company conducting business abroad.
  21. The primary purpose of the International Monetary Fund is to:
  22. Lend foreign currency to member countries.
  23. Exchange one currency for another.
  24. Consolidate the debt facing developing nations.
  25. Collect the interest on loans made by the World Bank to developing nations.
  26. The purpose of the World Trade Organization is to:
  27. Impose barriers to free trade among nations.
  28. Eliminate barriers to free trade among nations.
  29. Develop trading partnerships between rich and poor nations.
  30. Decrease globalization and free trade.
  31. The theory of comparative advantage states that:
  32. Productivity rises more quickly when countries produce goods and services for which they have a natural talent.
  33. Productivity decreases when countries produce goods and services based on their natural resources.
  34. All countries start out on an equal playing field.
  35. Countries that operate under a policy of isolationism have a comparative advantage.
  36. The term “race to the bottom” refers to:
  37. Seeking to mine rich minerals from the bottom of the ocean.
  38. Moving production jobs to the country with the lowest labor cost.
  39. Efforts to deconstruct the assembly process in manufacturing industries.
  40. An old concept of globalization that is no longer relevant.

Employees and the Corporation

  1. Labor standards are:
  2. the minimum requirements prescribed by existing laws governing labor.
  3. the realities of working conditions.
  4. minimum wages.
  5. levels of accountability for employers.
  6. The Occupational Safety and Health Act gives workers the right to a job:
  7. With equal wages for similar kinds of work.
  8. With wages that enable an employee to enjoy a decent standard of living.
  9. That is free from recognized hazards that are likely to cause death or serious injury.
  10. That does not require them to lift, bend, or move items at any time on the job.
  11. Since the mid-1950s the proportion of American workers represented by unions has:
  12. Decreased.
  13. Increased.
  14. Remained about the same.
  15. Grown in the manufacturing sector only.
  16. Employees in the United States have a legal right to all of the following except:
  17. A safe and healthy workplace.
  18. Organize and bargain collectively.
  19. Be fired with just cause.
  20. Freedom from discrimination and harassment at work.
  21. The Sarbanes-Oxley Act makes it illegal for employers to:
  22. Sue federal contractors for fraud.
  23. Retaliate against whistle-blowers who report information that could have an impact on the value of a company’s shares.
  24. Hire employees who have a prior record of accounting fraud.
  25. Use polygraph tests to discover employees involved in fraud.
  26. A strong employer-employee relationship is central to the following except:
  27. achieving a corporation’s economic goals.
  28. maintaining a strong and talented workforce.
  29. increasing the gross domestic product of a nation.
  30. maintaining a positive reputation.

Business-Government Relations

  1. Policies that affect the supply, demand, and value of a nation’s currency are:
  2. International standards policies.
  3. Social assistance policies.
  4. Fiscal policies.
  5. Monetary policies.
  6. Regulation is often justified based on:
  7. Collective market theory.
  8. Utilitarian and justice grounds.
  9. The life cycle of regulation.
  10. Tradition.
  11. Government regulation sometimes
  12. Prevents businesses from losing competitive position by imposing requirements equally on an entire industry
  13. Places disproportionate burdens on small businesses
  14. Diverts firm resources to compliance activities
  15. All of the above.

Technology, Organizations and Society

  1. The self-reinforcing feature of technology means that:
  2. Civilization develops at an uncontrollable pace.
  3. Developing economies demand newer and larger innovations.
  4. Technology acts as a multiplier to encourage is own faster development.
  5. An invention in one place is localized only.
  6. M-Commerce is facilitated primarily by:
  7. Lap-tops.
  8. Personal computers.
  9. Mobile or cell phones.
  10. The government.
  11. The practice of using fake business emails in order to trick users into divulging personal data, such as usernames and passwords, is called:
  12. Phishing.
  13. Pharming.
  14. Tweeting.
  15. Censorship.

Stockholder Rights and Corporate Governance

  1. Which if the following is not a legal right of stockholders?
  2. To vote on members for the board of directors.
  3. To vote on major mergers and acquisitions.
  4. To vote on changes in the corporate charter and proposals.
  5. To vote on who will become chief executive officer (CEO).
  6. The paramount duty of the board of directors of a public corporation is to:
  7. Ensure the company is profitable.
  8. Select and oversee competent and ethical management to run the company.
  9. Audit the firm’s financial statements for transparency.
  10. Make certain that employees are dealt with in a fair and equitable manner.
  11. A breach of fiduciary duty [called the “agency problem” in the text]occurs when:
  12. Owners manage the company on their own behalf.
  13. There is no separation of ownership and control in a company.
  14. Managers act in their own interest, rather than in the interest of shareholders.
  15. Shareholders act in their own interest, rather than in the interest of the board.
  16. Which of the following arguments opposes the idea of high executive pay?
  17. High salaries provide an incentive for innovation and risk taking.
  18. Not many individuals are capable of running today’s large, complex organizations.
  19. Top athletes and entertainers make a lot of money, so top executives should, too.
  20. High salaries divert resources that could be used to invest in the business.
  21. Social investors seek to eliminate from their investment portfolios companies that:
  22. Pollute the environment.
  23. Discriminate against employees.
  24. Make dangerous products like tobacco or weapons.
  25. All of the above.
  26. The Securities and Exchange Commission outlaws:
  27. Any manipulative or deceptive device used to trade stocks.
  28. Compensating company executives with stock options.
  29. Trading in stocks by institutions.
  30. Buying stock in a company for which you work.
  31. Stockholders can sue a corporate officer
  32. To enforce the payment of declared dividends, in a direct stockholder suit
  33. To enforce the right to review the corporate books, in a direct stockholder suit
  34. To enforce breach of the duty of care, when the Board refuses to do so, in a stockholder derivative suit
  35. All of the above.
  36. Which of the following are not institutional investors:
  37. Union health and welfare funds
  38. State Employees Pension funds
  39. Mutual Funds
  40. All of the above are institutional investors

Managing Technology and Innovation

  1. This term describes sensors and actuators that are embedded in physical objects – from roadways to pacemakers – and are linked through wired and wireless networks.
  2. Internet of Things.
  3. Information Super Highway.
  4. Mapping Network.
  5. Smartgrid.
  6. A hijacked computer that can be remote-controlled by the attacker to respond to the attacker’s commands

is called a:

  1. Ghost
  2. Zombie.
  3. Hacker.
  4. Worm.
  5. Over time the role of the Chief Information Officer (CIO):
  6. Has remained the same.
  7. Has decreased in level of responsibility.
  8. Has changed dramatically, superseding the role of the chief executive officer.
  9. Has changed dramatically, becoming more integrated into the overall strategic direction of the firm.
  10. The application of engineering to create materials on a molecular or atomic scale is:
  11. Micro-biology.
  12. Nanotechnology.
  13. Micro-engineering.
  14. Nano-atomic science.
  15. The identification of human genes is critical to:
  16. Early diagnosis of life-threatening diseases.
  17. New ways to prevent illnesses.
  18. Development of drug therapies.
  19. All of the above.
  20. Genetically Modified Foods
  21. Have increased crop yields, to help feed people.
  22. Create uncertainties as to their long range effects in the natural environments in which they are grown
  23. Have been generally approved for safe consumption by the Food and Drug Administration (FDA)
  24. All of the above
  25. The privacy of digital customer information
  26. Can be assured by new legislation.
  27. Can never be assured, as security measures can usually be overcome by motivated skilled hackers
  28. Was a concern fully foreseen and considered by those responsible for initiating the digital revolution.
  29. None of the above

Sustainable Development in Global Business

  1. Sustainable development:
  2. Meets the needs of the present while compromising the ability of future generations to meet their own needs.
  3. Gives precedence to environmental over economic considerations.
  4. Balances economic and environmental considerations.
  5. Gives precedence to present needs over future needs.
  6. Rapid economic development is often accompanied by:
  7. Increasing population growth.
  8. Greatly decreased crop yields.
  9. Rising incomes, bringing higher rates of both consumption and waste.
  10. Decreasing incomes, bringing higher rates of both consumption and waste.
  11. A new imperative for governments, businesses and society is to:
  12. Preserve the global commons and assure its continued use.
  13. Assure fair access to the global commons for all individuals.
  14. Equalize the usage of the global commons among all nations of the world.
  15. Avoid the use of the global commons in order to preserve it for future use.
  16. A thin layer of gas that protects the earth from excessive ultraviolet radiation from the sun is:
  17. Ozone.
  18. Carbon dioxide.
  19. Methane.
  20. Oxygen.
  21. Life-cycle analysis involves:
  22. Accurately recording the production costs at each stage of a product’s life cycle.
  23. Collecting information regarding the lifelong environmental impact of a product, from extraction to disposal.
  24. Reducing recycling costs for disposable products.
  25. Increasing productivity while improving the environment.
  26. The idea that companies have a continuing responsibility for the environmental impact of their products or

services, even after they are sold is called:

  1. Life-cycle analysis.
  2. Product life responsibility.
  3. Extended producer responsibility.
  4. Extended producer commitment.
  5. The most successful global businesses in coming years will be those companies that:
  6. Develop short-term partnerships between companies in developing countries to transfer environmental technologies.
  7. Recognize the imperative for sustainable development as an opportunity both for competitive advantage and ethical action.
  8. Avoid fully accounting environmental costs in calculating measures of production such as the gross domestic product (GDP).
  9. Produce products with a limited useful life.