Chapter 1:Introducing Straight Talk about Managing Business Ethics: Where were Going and Why | Business/Accounting Test Bank

Test Bank

True/False

1. The interest in business ethics is just a fad that has only recently been created by popular scandals (i.e., Enron, WorldCom, etc.) reported in the news.

Ans: False
Response: See page 2.
Difficulty: Easy

2. Discarding the few bad apples will usually solve all of the ethical problems within an organization.

Ans: False
Response: See page 14.
Difficulty: Easy

3. Good character is the main factor determining whether an individual acts ethically within an organization.

Ans: False
Response: See page 16.
Difficulty: Moderate

4. Federal laws define what is ethical. Therefore, all unethical behavior is considered unlawful.

Ans: False
Response: See page 21. Some unethical behavior is not covered by law (for example, lying to a manager about the reason for taking a sick day).
Difficulty: Difficult

5. Both characteristics of the environment and the individual contribute to unethical behavior.

Ans: True
Response: See page 15.
Difficulty: Easy
6. When employees come to an organization, they have already developed into good or bad apples. Therefore, there is little a manager can do to impact an employees ethical behavior.

Ans: False
Response: See page 14.
Difficulty: Moderate

7. According to the authors, most people are guided by a strict internal moral compass and will not be swayed by organization factors.

Ans: False
Response: See page 15.
Difficulty: Moderate

8. By ignoring the topic of ethical behavior, an organization may actually be encouraging unethical behavior through benign neglect.

Ans: True
Response: See page 19.
Difficulty: Easy

9. It is unethical for managers to control employees ethical behavior through direct management and the organizations formal and informal cultural systems.

Ans: False
Response: See page 19.
Difficulty: Difficult
10. For individuals, values can be defined as ones core beliefs about what is important, what is valued, and how one should behave across a wide variety of situations..

Ans: True
Response: See page 30.
Difficulty: Moderate
Multiple Choice

11. Which of these is Adam Smiths first book?

a) Wealth of Nations
b) The Theory of Moral Sentiments
c) The Corporation
d) The Moral Dimension

Ans: b
Response: See page 3.
Difficulty: Moderate
12. The implosion of the financial markets in 2008 was largely the result of:

a) illegal behavior
b) the Federal government intervention
c) government regulation
d) unethical activities in that they ultimately produced great harm

Ans: d
Response: See page 4.
Difficulty: Moderate

13. According to the authors, all of these are factors that laid the groundwork for the disaster in the United States in 2008 EXCEPT:

a) borrowing was expensive
b) real estate became the investment of choice
c) mortgage originators peddled Liar Loans
d) banks securitized the poison and spread it around

Ans: a
Response: See page 4-9.
Difficulty: Difficult

14. According to the 2012 Edelman Trust Barometer, only _____ percent of Americans surveyed trust banks to be ethicala _____-point drop since 2008

a) 60; 20
b) 20; 40
c) 35; 34
d) 15; 28

Ans: c
Response: See page 10.
Difficulty: Difficult

15. The Ethics Resource Centers 2011 National Business Ethics Survey found that only _____ percent of employees of for-profit enterprises report feeling pressured to compromise their ethical standards.

a) 7
b) 13
c) 19
d) 23

Ans: b
Response: See page 12.
Difficulty: Difficult
16. Ethical behavior can be influenced by:

a) an individuals religion
b) an organizations culture
c) ethical training
d) an individuals personality
e) all of the above

Ans: e
Response: Pp. 14-16. Ethical behavior is influenced by both individual factors (such as personality, upbringing, etc.) and organization factors (such as culture, leadership, etc.).
Difficulty: Easy

17. Which of the following statements is true?

a) Bad apples are just a few individuals who spoil it for the rest of us.
b) Employees good behavior can be spoiled by a bad barrel.
c) Ethics cannot be taught because individuals come into an organization already as a bad apple.
d) Bad barrels are caused by bad apples in an organization.

Ans: b
Response: See page 15.
Difficulty: Difficult
18. _________ students may need more ethics training because research has found that they rank lower in moral reasoning than other students.

a) Philosophy
b) Political science
c) Business
d) Medicine

Ans: c
Response: See page 17.
Difficulty: Easy

19. Definition of ethicsthe principles, norms, and standards of conduct governing an individual or groupfocuses on _______.

a) organization
b) society
c) business
d) conduct

Ans: d
Response: See page 18.
Difficulty: Easy
20. According to the authors, ethical behavior is defined as:

a) a set of moral principles or values that guide an individual
b) rules of behavior set by the Federal government
c) principles, norms, and standards agreed upon by society
d) none of the above

Ans: c
Response: See page 20.
Difficulty: Moderate

21. In this book, the authors focus on _____________ factors because ____________:

a) individual; these factors are the main determinant of unethical behavior
b) organization; these factors can be directly controlled by managers
c) individual; a few bad apples spoil it for the rest of us
d) organization; these factors are particularly important in unambiguous situations

Ans: b
Response: See page 19.
Difficulty: Moderate

22. According to a national opinion survey, identify the goal that employees did not rank in the top five?

a) Honest company communications
b) Good pay
c) Respectful treatment
d) Ethical corporate behavior

Ans: b
Response: See page 24.
Difficulty: Moderate
23. The U.S. Chamber of Commerce estimates that workplace theft costs U.S. businesses between $20 billion and $40 billion each year, and ______ are thought to be responsible for much of it.

a) employees
b) customers
c) community members
d) government agencies

Ans: b
Response: See page 24.
Difficulty: Moderate
24. Parties who are affected by the business and its actions and who have an interest in what the business does and how it performs are called _______.

a) stakeholders
b) large customers
c) community committees
d) government parties

Ans: a
Response: See page 27.
Difficulty: Moderate