Q8. Transactional leadership a. creates employee satisfaction by negotiating for levels of performance or 'bartering' for desired behaviors. b. is practiced by middle managers who are striving to become top managers. c. cannot be implemented for quickly changing ethical climates or reacting to ethical problems or issues. d. promotes workplace activities and behaviors through a shared vision and sense of mission. e. is least effective in firms with an emphasis on manufacturing and industrial products. Q9. Toll-free hotlines that companies set up to give employees a place to report misconduct are associated with which aspect of ethics programs? a. Communicating standards and procedures via ethics training programs b. Consistently enforcing standards, codes, and punishments c. Establishing systems to monitor and enforce ethical standards d. Continuously improving the program e. Establishing codes of conduct that are reasonably capable of detecting and preventing misconduct Q12. Shareholder resolutions a. may prompt a company to change its practices. b. are regulated by the Federal Trade Commission. c. can only be developed by large, institutional investors. d. may be brought to a proxy vote by any stakeholder. e. are the least effective type of shareholder activism.

Q14. Business ethics refers to

a. unique industry and professional factors that influence employees. b. principles and standards that guide behavior in the business world. c. companies refraining from forming monopolies or restricting competition in any way. d. regulations and laws that guide companies in their business decisions. e. the percentage of after-tax profits given to non-profit and community groups. Q15. Perhaps the strongest argument against high levels of compensation for CEOs is a. the discrepancy between the highest paid executives and the median employee wages. b. that the CEO has very little affect on the company's performance. c. that the CEO is usually just a figurehead, and the board of directors makes the decisions. d. that the job is relatively simple because most duties are delegated to other managers. e. the high turnover of executives throughout most large corporations.

Q16. Which of the following is least likely to be a use of internal controls in an organization? a. Safeguarding corporate assets and resources b. Protecting the reliability of organizational information c. Measuring the effects of advertising on sales d. Allowing comparisons between actual and planned performance e. Ensuring compliance with laws

Q18. Which of the following internal control mechanisms would be the most difficult for a small company to implement? a. Requiring all employees to take one week of vacation a year b. Limiting access to valuable inventory to as few employees as possible c. Having several employees involved with each transaction, decision, or organizational issue d. Screening potential employees before hiring e. Developing a code of conduct addressing ethical and legal issues Q19. A behavioral simulation, or role play exercise, is a relatively new ethics training device that a. has been found less effective than traditional lecture training methods. b. recreates the complexities of organizational relationships and aids the development of analytical skills for resolving ethical issues. c. requires the use of technology, including video and the computer. d. can only be used in small organizations. e. focuses on legal issues in the workplace and the skills that employees need to resolve legal concerns. Q20. Which moral classification considers a decision right or acceptable if it accomplishes a desired result such as pleasure, knowledge, career growth, or utility? a. Ethical formalism b. Consequentialism c. Justice d. Egoism e. Results theory Q21. In the long run, the success of a company is built on a. a company's ability to negotiate with suppliers and vendors. b. long-term relationships with customers built on mutual respect and cooperation that leads to repeat purchasing. c. innovative integrated marketing communications programs. d. a company's commitment to be on the leading edge of technology. e. its efficiency in operations. Q22. About how many consumers said they would be likely to switch to brands associated with a good cause, if price and quality were equal? a. Less than 5 percent b. 20 percent c. 40 percent d. 50 percent e. 80 percent Q23. One of most common fraudulent activities reported by employees about their coworkers is a. lowering quality standards to cut costs. b. giving bribes to foreign officials. c. using dishonest messages in advertising campaigns. d. discriminating in the hiring process. e. claiming to have worked extra hours. Q24. Groups that are fundamental to a company's operations and survival are collectively called a. VIPs. b. critical stakeholders. c. shareholders. d. top stakeholders. e. primary stakeholders. Q25. Communication is important in keeping a firm on its ethical course because a. top executives must enforce overall ethical standards within the organization. b. issues such as price collusion and bribery must be decided on a decentralized basis. c. employees must learn when unethical behavior is appropriate to maximize profits. d. the moral philosophies of employees are always consistent with the moral philosophies of top management. e. centralization may reduce the opportunity for unethical conduct. Q26. Which of the following best describes the stakeholder model of corporate governance? a. The primary focus of this model is social welfare, to the exclusion of economic welfare. b. A company has responsibilities to many stakeholders including investors, employees, suppliers, government agencies, and the community. c. A company's primary responsibility is to maximize the wealth of its most important stakeholder, the owners. d. The stakeholder model is a more restrictive approach than the shareholder model approach to corporate governance. e. Because corporations have many managers and resources, it is possible to equally and fully address the needs of all stakeholders.