CHAP2 -2

Which of the following represents a conflict of interest?

• An employee having a side business that provides services to the company.

• A business selling its products at a competitive price.

• A company maximizing profits for its shareholders.

• An employee making a decision that favors one customer over another.

• A manager implementing cost-cutting measures to improve profits.

Which of the following is a formal statement of an organization’s values, ethics, and rules?

• Code of ethics

• Code of conduct.

• Mission statement.

• Statement of values.

• Company values.

A document that outlines the ethical guidelines and expectations for employees within an organization is known as a(n)

• code of ethics.

• code of conduct.

• ethical standard.

• organizational charter.

• professional code.

Which of the following entities is responsible for overseeing the strategic direction of a corporation?

• Management team

• Employees

• Regulatory agency

• the board of directors.

• The stockholders

The _____ was enacted to protect investors by improving the accuracy and reliability of corporate disclosures.

• Sarbanes-Oxley Act of 2002

• Dodd-Frank Act of 2010.

• Securities Exchange Act of 1934.

• Glass-Steagall Act of 1933.

• Business Ethics Act of 2020.

In considering a firm's social responsibility, managers will face numerous challenges. Which of the following words best describes this responsibility?

• Economic

• ethical

• legal

• discretionary

• operational

A common argument for social responsibility states that

• businesses often have the resources necessary to solve problems.

• businesses are not equipped to solve social problems.

• it is the government's responsibility to address social issues.

• profit generation should be the sole focus of businesses.

• customers will not support businesses that engage in social responsibility.

The statement 'Profit generation, for the owners, is the purpose of business in U.S. society' reflects which perspective on business ethics?

• Ethical

• Legal

• Economic

• Philanthropic

• Societal

In the context of social responsibility, which of the following is an example of legal compliance?

• A company engages in sustainable practices beyond regulatory requirements.

• A company does not pollute the environment.

• A company provides employees with fair wages.

• Legal compliance

• A company engages in charitable donations.

Which of the following is an example of ethical compliance?

• Making human resource managers responsible for complying with the Equal Employment Opportunity Commission (EEOC) standards

• Establishing a whistle-blowing hotline.

• Training employees on workplace ethics.

• Conducting annual ethics audits.

• Implementing a code of conduct.