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QUESTION

HRM 522 Week 5 Midterm Exam Part 1

Question 1 

Principles are

Answer 

laws and regulations that guide behavior in the world of business.

mores, values, and customs that guide behavior in general.

specific and pervasive boundaries for behavior that are universal and absolute.

the obligations businesses assume to maximize their positive impact and minimize their negative impact on stakeholders.

the mores, values, and customs that parents teach their children.

Question 2 

Ethics is a part of decision making

Answer 

at all levels of work and management.

primarily at the upper management levels of an organization.

mostly for policy makers.

that is less important than other decision making processes.

only at that lower levels of organizational management

Question 3 

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

Answer 

Employee ethics training

Hiring a compliance officer

Ignoring potential ethical issues

Writing a code of ethics

Conducting an ethics and compliance audit

Question 4 

During the 1990s the institutionalization of business ethics was largely driven by which piece of legislation?

Answer 

Sarbanes-Oxley Act

Federal Sentencing Guidelines for Organizations

Dodd-Frank Wall Street Reform and Consumer Protection Act

Foreign Corrupt Practices Act

Global Sullivan Principles

Question 5 

Having acceptable personal ethics is probably not going to be sufficient to handle complex business ethical issues when an individual has

Answer 

family concerns.

an unethical boss.

limited business experience.

financial training.

a marketing background

Question 6 

Which of the following is generally not considered a business ethics issue?

Answer 

Harassment

Accounting fraud

Employee theft

Misuse of organizational resources

Corporate hierarchy

Question 7 

Social responsibility is

Answer 

an organization's obligation to maximize its positive effects and minimize its negative effects on stakeholders.

principles and standards that guide behavior in the world of business.

a business's responsibility not to pollute the environment.

a business's responsibility to manufacture products that function properly.

charitable contributions made by a business to enhance its image

Question 8 

Investors are concerned about business ethics because they know that misconduct can

Answer 

foster stability.

improve employee commitment.

improve customer loyalty.

lower stock value and prices.

complicate business financial reporting

Question 9 

Which of the following industries tends to generate a high level of trust from consumers and stakeholders?

Answer 

Insurance

Technology

Banks

Mortgage lenders

Financial services

Question 10 

Stakeholders' power over businesses stems from their

Answer 

ability to withdraw or withhold resources.

ability to generate profits.

media impact.

political influence.

stock ownership

Question 11 

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

Answer 

It is too expensive for the organization.

It could cause conflicts of interest between the directors and the organization.

It is not fair to poorly compensated employees.

High pay will render the board less complacent.

Board of director compensation is not a major issue

Question 12 

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

Answer 

Surveys

Focus groups

Internet searches

Press reviews

Guessing

Question 13 

The degree to which a firm understands and addresses stakeholder demands can be referred to as

Answer 

a stakeholder orientation.

a shareholder orientation.

the stakeholder interaction model. d. a two-way street.

e. a continuum.

Question 14 

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

Answer 

there should be no limit on what top executives can earn.

managers should earn no more than twenty times the pay of other employees.

top managers should make the same amount as other employees.

employees can determine how much managers make.

the government should determine the worth of each manager’s service

Question 15 

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

Answer 

Investors

Community

Suppliers

Customers

Employees

Question 16 

The originator of the idea of the invisible hand, which is a fundamental concept in free market capitalism, was

Answer 

Adam Smith.

Theodore Levitt.

Norman Bowie.

Herman Miller

Milton Friedman

Question 17 

________ is defined as any purposeful communication that deceives, manipulates, or conceals facts in order to create a false impression.

Answer 

Stealing

Lying

Fraud

Misappropriation

Accounting fraud

Question 18 

Among retail stores, ________ is a larger problem than customer shoplifting.

Answer 

poor stock performance

weak leadership

internal employee theft

misuse of merchandise

employee dissatisfaction

Question 19 

________ are used to obtain or retain business and are not generally considered illegal in the U.S.

Answer 

Facilitation payments

Bribes

Gifts

Coercive techniques

Threats

Question 20 

What type of fraudulent activity could involve a consumer staging an accident to seek damages?

Answer 

Whacking

Duplicity

Guile

Defamation

Collusion

Question 21 

Abusive or intimidating behavior is the most common ethical problem for employees. Which of the following is not related to this concept?

Answer 

Physical threats

False accusations

Being annoying

Profanity

Performance probation

Question 22 

Which of the following is not a consequence of ethical misconduct?

Answer 

Decreased reputation

Shaken customer loyalty

Reduced investor confidence

Increased sales

Legal actions by wronged parties

Question 23 

Optimization is defined as

Answer 

the quality of being just, equitable, and impartial.

a trade-off between equity and efficiency.

an interchange of giving and receiving in social relationships.

how wealth or income is distributed between employees within a company.

a lack of integrity, incomplete disclosure, and an unwillingness to tell the truth

Question 24 

Which of the following is not a side-effect of being the victim of workplace bullying?

Answer 

Increased productivity

Sleep disturbance

Depression

Increased sick days

Stomach problems

Question 25 

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

Answer 

Conflict of interest

Honesty

Communications

Discrimination

Intellectual property rights

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Question 8

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Question 10

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******** 13

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Answer

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Question ***

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Question 17

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Answer

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Answer

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