Deck 5: Ethical, social, and Legal Responsibilities of Management

Question 1

The Sherman Antitrust Act of 1890 permits employers to charge different prices to different wholesale customers.

Answer 1

False

Question 2

The role of ethics in management decisions is simple and easy.

Answer 2

False

Question 3

The Toxic Substances Control Act of 1976 bans the sale of impure,improperly labeled,falsely guaranteed,and unhealthful foods,drugs,and cosmetics.

Answer 3

False

Question 4

The most popular and the latest school of thought among businesses today is the trusteeship management philosophy.

Question 5

It is considered a normal practice for managers to invite clients to play golf with them.

Question 6

Financial performance is the sole concern in sustainability.

Question 7

The OSHA allows employees to file a case if they have been retaliated against by their employer for reporting any suspected corporate fraud.

Question 8

The intellectual property rights ensure that only the creators of intellectual property profit from their work.

Question 9

Ethics training is ineffective because it involves more of discussions on real-life ethical issues than lecturing.

Question 10

Sending expensive gifts to a client before finalizing a business deal is an acceptable practice.

Question 11

The Equal Credit Opportunity Act of 1975 ensures that no public company makes,extends,modifies,or renews any personal loan to its executive officers or directors.

Question 12

Providing flexible work hours to employees and on-site day care centers for employees' children are examples of corporate philanthropy.

Question 13

The biggest obstacle to organizations assuming more social responsibility is pressure by stockholders who push for steady increases in earnings per share on a quarterly basis.

Question 14

Managing an environmentally and a socially responsible business and maintaining high levels of performance do not have to work against each other.

Question 15

Codes of ethics are particularly helpful when an individual's self-interest is incompatible with acting in accordance with his or her ethical standards.

Question 16

Trusteeship management believed that corporations should solely focus on maximizing profits.

Question 17

Business practices that are acceptable in one country may be considered unethical in others.

Question 18

The Antitrust Division of the Justice Department is responsible for the enforcement of laws put in place by the government to prevent anticompetitive behavior.

Question 19

Establishing a code of ethics guarantees the prevention of unethical behavior.

Question 20

The EPA is given the ability to track 75,000 industrial chemicals currently produced in or imported into the United States,by the Federal Food,Drug,and Cosmetic Act of 1938.

Question 21

The simplest kind of business is a corporation.

Question 22

Decision-making in sole proprietorship is quick.

Question 23

The Sarbanes-Oxley Act (SOX)primarily deals with _____.

A) environmental protection
B) consumer protection
C) protection against false advertising
D) whistle-blower protection
E) protection against trade monopoly

Question 24

Which of the following acts bans the practice of requiring a customer to purchase a second good?

A) The Sarbanes-Oxley Act
B) The Norris-LaGuardia Act
C) The Clayton Act
D) The Robinson-Patman Act
E) The Sherman Antitrust Act

Question 25

A government affairs manager ensures that businesses which do not comply with the laws are subjected to legal sanctions.

Question 26

Which of the following statements is true about ethical issues?

A) Academic selling or purchasing dissertations, essays, book reports, and research papers is an ethical practice.
B) It is unethical for a business to withhold income taxes from an employee's earnings and send them to the federal government.
C) Codes of ethics help employers anticipate every situation that arises in the organization.
D) Unethical behavior can be prevented by merely establishing a code of ethics.
E) Ethics training is "perishable" because individual and organizational memories are imperfect.

Question 27

Under the law,a "person" can be a corporation or another organization as well as an individual.

Question 28

Commercial law regulates how much money businesses must pay the government to help provide services for the public.

Question 29

A partnership may have an easier time getting a loan than a sole proprietorship.

Question 30

The Public Company Accounting Reform and Investor Protection Act is also known as the _____.

A) Equal Credit Opportunity Act
B) Sherman Antitrust Act
C) Sarbanes-Oxley Act
D) Wheeler-Lea Act
E) Clayton Act

Question 31

Which of the following acts makes it illegal for companies to charge different prices to different wholesale customers?

A) Robinson-Patman Act
B) Adamson Act
C) Clayton Act
D) Norris-LaGuardia Act
E) Wheeler-Lea Act

Question 32

Which of the following statements is true of the Wheeler-Lea Act of 1938?

A) It makes it mandatory for businesses to inform consumers of possible negative consequences of using their products.
B) It provides organizations with guidelines on the type of gifts that are considered acceptable.
C) It bans the sale of impure, improperly labeled, falsely guaranteed, and unhealthful foods, drugs, and cosmetics.
D) It ensures that creditors let consumers know how much they are paying in finance charges and interest.
E) It sets a deadline for insiders to report any trading in their companies' securities to within two business days after the execution date of the transaction.

Question 33

Which of the following statements is true of the Equal Credit Opportunity Act of 1975?

A) Creditors are prohibited from making credit decisions on the basis of discriminatory practices.
B) Creditors are required to let consumers know how much they are paying in finance charges and interest.
C) No public company may make, extend, modify, or renew any personal loan to its executive officers or directors, with limited exceptions.
D) Destroying, altering, or falsifying records with the intent to impede or influence any federal investigation or bankruptcy proceeding is punishable.
E) Businesses are required to withhold income taxes from employees' earnings and send them to the federal government.

Question 34

Social responsibility cannot be an integral part of an organization's mission statement.

Question 35

A trademark is the protection provided to a literary work.

Question 36

The _____ has the authority to force the manufacturer to recall a defective product.

A) Occupational Safety and Health Administration
B) Consumer Product Safety Commission
C) Environmental Protection Agency
D) Federal Trade Commission
E) Product Liability Commission

Question 37

The Uniform Commercial Code regulates physical features or structures of buildings.

Question 38

Social audit is a method for measuring the success of a firm.

Question 39

_____ are situations in which the ethical course of action is not clear.

A) Ethical dilemmas
B) Ethical lapses
C) Meta ethics
D) Normative ethics
E) Ethical misconducts

Question 40

The _____ Act of 1938 bans unfair or deceptive acts or practices,including false advertising.

A) Sarbanes-Oxley
B) Wheeler-Lea
C) Sherman
D) Robinson-Patman
E) Clayton

Question 41

A patent for an invention is given for _____ years.

A) seventeen
B) fifteen
C) five
D) seven
E) eighteen

Question 42

Which of the following is true of a limited liability company (LLC)?

A) It is a relatively old business structure.
B) It fails to provide management flexibility.
C) Membership of LLCs is limited to individuals.
D) LLCs with only one owner are permitted in some states.
E) Banks and insurance companies can be LLCs.

Question 43

Which of the following is true of a corporation?

A) It has unlimited liability.
B) It cannot exist apart from its owners.
C) It cannot be taxed and sued like an individual.
D) It has a tougher time getting credit than any other type of business.
E) It pays more taxes than any other type of business.

Question 44

Which of the following statements is true about intellectual property rights?

A) Enforcing these laws for every industry in the United States is easy.
B) They are universal rights that remain constant for every country.
C) These rights are guaranteed through patent, trademark, and copyright laws.
D) It is not prominent in the American workplace.
E) It ensures that other users profit from the creator's work.

Question 45

_____ are rules that government agencies issue to implement laws.

A) Doctrines
B) Regulations
C) Licenses
D) Fundamental Rights
E) Provisions

Question 46

Which of the following can be protected under a trademark?

A) Computer programs
B) Plays
C) Dances
D) Slogans used by organizations
E) Movies

Question 47

A _____ allows management to evaluate the success or lack of success of programs designed to improve the social performance of the organization.

A) SWOT analysis
B) value chain analysis
C) BCG analysis
D) social audit
E) social scorecard

Question 48

Which of the following statements is true of the Toxic Substances Control Act of 1976?

A) It makes it illegal to discharge any pollutant into navigable waters unless a permit is obtained.
B) It sets maximum air pollution standards for each of the 50 states.
C) It gives the EPA the authority to set standards on the type and quantity of pollutants that industries can discharge into bodies of water.
D) It bans the sale of impure, improperly labeled, falsely guaranteed, and unhealthful foods, drugs, and cosmetics.
E) It gives the EPA the ability to track the 75,000 industrial chemicals currently produced in or imported into the United States.

Question 49

_____ law regulates how businesses can set themselves up to operate as companies.

A) Corporate
B) Tax
C) Commercial
D) Licensing
E) Zoning

Question 50

Which of the following laws regulates where businesses can establish operations?

A) Corporate law
B) Tax law
C) Consumer law
D) Zoning law
E) Licensing law

Question 51

Which of the following statements is true about ethical standards and culture around the world?

A) Corporate gift-giving customs are same around the world.
B) Standards of business ethics are identical around the world.
C) In the United States, government officials are allowed to accept expensive gifts from businesses.
D) American managers operating abroad must ignore the standards set in the United States and abide by the local standards.
E) Business managers working in foreign countries must set guidelines for their companies on how to operate both within their own culture and in other cultures.

Question 52

A _____ is the document the federal government issues to inventors and companies that give them the exclusive right to make,use,and sell their inventions for 17 years.

A) patent
B) trademark
C) copyright
D) franchise
E) code of ethics

Question 53

Which of the following is an example of corporate philanthropy?

A) Encouraging employees to carpool
B) Creating production processes that are environmentally friendly
C) Allowing workers to better meet their families' needs
D) Granting employees paid time off to participate in charitable activities
E) Creating an ethnically diverse work environment

Question 54

Which of the following is true of taxes?

A) Businesses cannot collect taxes from employees.
B) Taxes are not taken into account in managerial decision-making.
C) Businesses cannot pass on the burden of taxes by charging consumers more money for products.
D) Businesses are not liable to pay property taxes.
E) Businesses have to withhold income taxes from employees' earnings and send them to the federal government.

Question 55

Which of the following statements is true of stakeholders?

A) It includes only shareholders of the company.
B) It refers to those who are not affected by the actions of a business.
C) It excludes a company's employees.
D) It includes a company's suppliers and the community.
E) Businesses have no obligations toward them.

Question 56

Which of the following laws protect new ideas of businesses?

A) Intellectual property laws
B) Tax laws
C) Licensing laws
D) Zoning laws
E) Consumer laws

Question 57

Which of the following is true about general partnerships?

A) Partnerships can raise money by selling stock.
B) Partnerships have unlimited liability for business debts.
C) Partnerships pay more in taxes than a corporation.
D) Partnerships have a tougher time getting a loan than a sole proprietorship.
E) Partnerships must be owned by individuals and not corporations or organizations.

Question 58

Which of the following is an advantage of a corporation?

A) They pay lesser taxes as compared to any other type of business.
B) They offer stockholders limited liability.
C) A single person controls the entire business and keeps all the profits.
D) They need not comply with state and federal laws.
E) They can begin a business at any time.

Question 59

Which of the following is true of sole proprietorships?

A) The owner controls the entire business.
B) The owner has limited liability for all debts.
C) Decision-making is slow.
D) Profits have to be shared with the stockholders.
E) Money can be raised by selling stock.

Question 60

A(n)_____ is a tax levied against a business's profits.

A) property tax
B) income tax
C) deferred tax
D) sales tax
E) value added tax

Question 61

Local governments regulate where a building can be built through _____.

A) licensing
B) zoning ordinances and regulations
C) Uniform Commercial Code
D) social auditing
E) intellectual property laws

Question 62

Which of the following legislations is primarily concerned with consumer protection?

A) Taft-Hartley Act
B) Sarbanes- Oxley Act of 2002
C) The Clean Air Act of 1970
D) Fair Packaging and Labeling Act
E) Title VII of the Civil Rights Act

Question 63

Which of the following statements is true about consumers?

A) They are protected under intellectual property laws.
B) They are individuals who sell goods.
C) They can file complaints with the FDA about unfair treatment by companies.
D) They are protected under commercial law.
E) They should know their rights when dealing with businesses.

Question 64

Explain the various ways in which corporations demonstrate social responsibility.

Question 65

What information must be contained in a written contract and why is it important?

Question 66

Which of the following is true of contracts?

A) Contracts create an obligation between the parties.
B) They are not enforceable in the court of law.
C) Businesses enter into contracts rarely.
D) Contracts are easy to break.
E) Business sales contracts are implied or spoken and not written.

Question 67

What are the three primary types of intellectual property protections?

Question 68

To satisfy the _____,written contracts must contain certain information such as the quantity of goods involved in the business.

A) code of ethics
B) Uniform Commercial Code
C) Equal Credit Opportunity Act
D) standard trust code
E) building code

Question 69

Compare the advantages of sole proprietorships with the advantages of partnerships.

Question 70

Which of the following is covered under licensing laws?

A) Protection for creative work such as plays, dances, and so on
B) Regulations on physical features or structures of buildings
C) Regulations on storing foods properly
D) Protection for a business's symbol or slogan
E) Regulations on how businesses can enter into contracts with consumers

Question 71

State and local governments use _____ as a way to limit and control people who plan to enter certain types of businesses.

A) franchising
B) patenting
C) contracting
D) leasing
E) licensing

Question 72

What are LLCs?

Question 73

A _____ is an agreement between two parties to carry out a transaction,such as the sale of goods from a seller to buyer.

A) copyright
B) contract
C) trademark
D) legal tender
E) regulation

Question 74

Which of the following is true of trademarks?

A) Registered trademarks are good for 17 years.
B) They can be used to protect literary works, movies, and computer programs.
C) They are powerful selling tools.
D) Companies cannot renew trademarks.
E) A company's trademark can be used by other companies.

Question 75

Compare the trusteeship management and social involvement approaches to social responsibility.

Question 76

Suggest one method for accomplishing the social audit.

Question 77

The _____ approves all new drugs before they are sold.

A) Toxic Substance Control Agency
B) Federal Bureau of Investigation
C) Environmental Protection Agency
D) Food and Drug Administration
E) Consumer Product Safety Commission

Question 78

Discuss the collection of taxes from employees through businesses.

Question 79

List some of the areas codes of ethics cover.

Question 80

List the benefits of ethical training in an organization.