1. Which of the following best exemplifies the trend toward the increased use of information technology?

A. High-tech companies have research labs, development centers, and call centers in emerging markets like China and India. These markets give them the benefit of cost-effective services, a qualified workforce, and competitive pricing.

B. Steps have been taken to enhance the interaction between shareholders and company managers so that managers work toward achieving the primary goal: maximize shareholder wealth.

C. Companies are benefiting from e-commerce by buying and selling their products and services to consumers online.

2. Which of the following is/are emphasized in business ethics? Check all that apply.

A. Labor policy

B. Community involvement

C. Marketing and selling practices

D. Investment appraisal

3. Most executives believe that they and their firms behave in an ethical manner and that it is in their best interests to do so. How can a firms ethical conduct increase its long-term profitability?

A. Good ethics programs are developed from the bottom of the organization up to the firms leadership. This is because lower-level workers do all the actual work and are in the best position to specify the rules of how the work should be conducted.

B. Ethical corporate behavior attracts customers, employees, and communities who appreciate and support being treated ethically.

4. Ethics deals with questions of right or wrong behavior. Which of the following behaviors involves ethicalas opposed to unethicaldecision making?

A. While interviewing prospective applicants for a manager-trainee position, the companys recruiter makes sexually suggestive remarks to the applicants and recommends hiring only the good-looking candidates.

B. While considering the purchase of an expensive piece of equipment, a firms purchasing manager recommends that the purchase be made from his cousins firm rather than from one of two other vendors offering the identical equipment at lower prices.

C. While planning for an upcoming company audit, a manager insists on hiring an external auditing firm to audit the companys financial statements.

D. While riding in a taxi, a loan officer with the Fifth County Bank finds a briefcase containing the confidential and proprietary lending policies of a competing bank. Instead of returning the briefcase, she keeps the competing banks information and distributes it at the next loan application review meeting.

5. In 2002, in response to an outbreak of corporate scandals and unethical financial and accounting behavior, Congress passed the Sarbanes-Oxley Act. Which of the following is a major provision of this legislation?

A. A publicly traded corporation must have a board of directors that includes outside directors to oversee the firms annual audit.

B. Publicly traded corporations with sales of at least $50 million or total assets of at least $100 million are exempt from possible prosecution for the preparation of fraudulent financial statements.