1) The term “ethics” refers to
1. A) standards or moral values regarding what is right and wrong.
2. B) avoiding doing things that, if everyone did
... [Show More] it, we would have a real mess.
3. C) believing what’s right for one person is wrong for another.
4. D) conflicts of interest that develop between two co-workers.
5. E) bad behaviour by top managers in a company. Answer: A
Diff: 1 Type: MC Page Ref: 47 Skill: Knowledge
Objective: 3.1
2) What is the difference between “ethics” and “business ethics”?
1. A) The former refers to beliefs about what is right and wrong, while the latter doesn’t deal with right and wrong, only with economic issues.
2. B) The former refers to a restricted range of acceptable behaviours, while the latter refers to a much broader range of acceptable behaviours.
3. C) There are no differences between the two terms.
4. D) The former refers to beliefs about what is right or wrong, while the latter refers to behaviours by managers or employees.
5. E) The former refers to the actions of government employees, while the latter refers to the actions of employees in private-sector firms.
Answer: D
Diff: 2 Type: MC Page Ref: 47 Skill: Comprehension
Objective: 3.1
3) Behaviour that conforms to individual beliefs and social norms about what is right and good is referred to as
1. A) social reaction behaviour.
2. B) ethical behaviour.
3. C) generally accepted behaviour.
4. D) collusional behaviour.
5. E) motivational behaviour. Answer: B
Diff: 1 Type: MC Page Ref: 47 Skill: Knowledge
Objective: 3.1
4) refers to ethical or unethical behaviours by a manager or employee of an organization.
1. A) Social ethics
2. B) Social responsibility
3. C) Business ethics
4. D) Collusion
5. E) Cartelling Answer: C
Diff: 2 Type: MC Page Ref: 48 Skill: Knowledge
Objective: 3.1
5) Ethical and unethical behaviour is determined partly by the and partly by .
1. A) society; culture
2. B) society; values
3. C) individual; culture
4. D) person; religion
5. E) culture; society Answer: C
Diff: 2 Type: MC Page Ref: 48 Skill: Knowledge
Objective: 3.1
6) With regard to the distinction between unethical and illegal behaviour, it is correct to say that
1. A) something that is illegal is also unethical.
2. B) a given act can be ethical, yet illegal.
3. C) the distinction between unethical and illegal behaviour has no practical significance.
4. D) it is impossible for something to be unethical and legal at the same time.
5. E) all of these are correct. Answer: B
Diff: 2 Type: MC Page Ref: 47
Skill: Comprehension Objective: 3.1
7) “Cooking the books” to make a company’s financial situation look better than it really is illustrates a behaviour that is
1. A) ethical but illegal.
2. B) ethical and illegal.
3. C) unethical but legal.
4. D) unethical and illegal.
5. E) there is no consensus on how this behaviour should be classified. Answer: D
Diff: 2 Type: MC Page Ref: 47 Skill: Comprehension
Objective: 3.1
8) Breaking the law in a totalitarian regime in order to carry out humanitarian efforts would probably be seen by most people as
1. A) ethical but illegal.
2. B) ethical and illegal.
3. C) unethical but legal.
4. D) unethical and illegal.
5. E) there is no consensus on how this behaviour should be classified. Answer: A
Diff: 2 Type: MC Page Ref: 47 Skill: Comprehension
Objective: 3.1
9) John is a salesperson who feels that he is not paid nearly enough money for the work that he does. He therefore “pads” his expense account in order to receive increased financial benefits. John’s behaviour would be seen as ethical according to which criterion?
1. A) Rights
2. B) Justice
3. C) Utility
4. D) Caring
5. E) None of these Answer: E
Diff: 2 Type: MC Page Ref: 49 Skill: Comprehension
Objective: 3.1
10) The Personal Information Protection and Electronic Documents Act (PIPEDA)
1. A) is designed to protect electronic documents from computer hackers.
2. B) requires organizations to obtain consent before they collect, use, or disclose information about individuals.
3. C) has been declared unconstitutional.
4. D) prohibits organizations from using personal information about their employees.
5. E) applies almost exclusively to universities. Answer: B
Diff: 1 Type: MC Page Ref: 48 Skill: Comprehension
Objective: 3.1
11) Marlene is a shoe buyer for a large department store. Six months ago, she accepted a free trip to Barbados from one of the companies that she buys shoes from. Now, the company is strongly hinting that it wants Marlene to increase the size of her next order, and Marlene feels some obligation to do so because of the free trip she received. Marlene is involved in
1. A) illegal behaviour.
2. B) a conflict of interest.
3. C) collusion.
4. D) illegal and unethical behaviour.
5. E) unethical behaviour. Answer: B
Diff: 1 Type: MC Page Ref: 48 Skill: Comprehension
Objective: 3.1
12) A manager who discriminates against any ethnic minority in hiring exhibits behaviour that is
1. A) ethical but illegal.
2. B) ethical and illegal.
3. C) unethical but legal.
4. D) unethical and illegal.
5. E) there is no consensus on how this behaviour should be classified. Answer: D
Diff: 2 Type: MC Page Ref: 47 Skill: Comprehension
Objective: 3.1
13) The practice of jeitinho is an element of business activity in which country?
1. A) Canada
2. B) Japan
3. C) Indonesia
4. D) Brazil
5. E) Czech Republic Answer: D
Diff: 1 Type: MC Page Ref: 47 Skill: Knowledge
Objective: 3.1
14) Which of the following statements is correct with regard to the conflict of interest idea in business?
1. A) Conflicts of interest exist only in peoples’ minds.
2. B) A conflict of interest occurs when an activity benefits an individual at the expense of the employer.
3. C) A conflict of interest occurs when employees of equal rank have a disagreement.
4. D) A conflict of interest occurs when a boss and a subordinate have a disagreement.
5. E) All of the statements are correct. Answer: B
Diff: 2 Type: MC Page Ref: 48 Skill: Comprehension
Objective: 3.1
15) .If a politician sits on a board that grants money to companies and that executive owns a company that is applying for a grant from the board, he or she is most likely facing a(n)
1. A) ethical dilemma.
2. B) utility norm.
3. C) illegal situation.
4. D) conflict of interest.
5. E) justice norm. Answer: D
Diff: 1 Type: MC Page Ref: 48 Skill: Comprehension
Objective: 3.1
16) Air Canada sued WestJet, claiming that WestJet had accessed an Air Canada website which contained confidential information. What was the outcome of the lawsuit?
1. A) The court ruled that there was nothing unethical about a person from WestJet accessing the website if they could figure out how to do it.
2. B) WestJet admitted it had behaved in an unethical fashion, paid Air Canada $5 million dollars, and gave $10 million to children’s charities.
3. C) Air Canada was able to show that it had lost a lot of business because of the incident, and WestJet had to reimburse Air Canada for the lost business.
4. D) The court declined to rule on the case.
5. E) The court ruled that this was merely a competitive squabble between two companies and that no fine would be imposed.
Answer: B
Diff: 2 Type: MC Page Ref: 48 Skill: Knowledge
Objective: 3.1
17) A 2014 survey of global managers found that an average of percent of managers felt that corruption was widespread in their country.
1. A) 10
2. B) 30
3. C) 40
4. D) 60
5. E) 70
Answer: C
Diff: 2 Type: MC Page Ref: 48 Skill: Knowledge
Objective: 3.1
18) Which of the following behaviours is illegal?
1. A) Company executives encourage employees to invest in company stock while withholding information about financial problems.
2. B) An employee accepts a gift from a supplier in return for a large order.
3. C) A manager refuses to hire or promote a qualified visible minority in spite of company policy. [Show Less]