Question 1

A code of ethics becomes increasingly appropriate and necessary as a small business

Accepted Answer

As a small business grows larger, the owner's personal influence diminishes, making it more difficult to ensure that ethical standards are upheld throughout the organization. A code of ethics can help to ensure that employees understand the company's values and principles, and make ethical decisions even in the absence of direct supervision from the owner.

Question 2

The price of integrity is high, but the potential payoff is incalculable because it is impossible to compute

Accepted Answer

The sentence suggests that the potential payoff of integrity is related to having a clear conscience, which cannot be calculated in monetary terms. Therefore, option A is the best choice. Option B is mentioned, but it is not directly related to the potential payoff of integrity. Option C and D are not mentioned at all.

Question 3

A data file that is electronically sent to the customer's computer when other requested materials are downloaded from a Web site is known as

Accepted Answer

The data file electronically sent to the customer's computer when other materials are downloaded from a website is commonly known as a cookie. It is a small file that contains information about the user's activity on the website and is used to enhance the user's experience, such as saving login details or preferences. Option B, C, and D do not relate to this concept.

Question 4

The most important influence on ethics in a small business is

Accepted Answer

The founder or owner sets the tone for the company culture and values, which in turn influence the ethical behavior of employees and the decisions made by the company. While having an accountant or bookkeeper who keeps honest records and a written code of ethics are important, they may not have as much influence as the values and actions modeled by the leader of the business. The salesperson's integrity is also important, but their influence is more limited in comparison to the overall impact of the founder or owner's ethics.

Question 5

A recent National Federation of Independent Business study found that _____ percent of small businesses made contributions to their community in one form or another.

Accepted Answer

According to the National Federation of Independent Business study, 91 percent of small businesses made contributions to their community in some way.

Question 6

Entrepreneurs must reconcile their social obligations with _____.

Accepted Answer

Entrepreneurs have a social obligation to contribute to society and create positive impacts, but they also have the responsibility to earn profits and keep their business financially stable. These two obligations can sometimes conflict and entrepreneurs must find a way to balance them.

Question 7

The key to defining the problem, in order to make an ethical decision is to:

Accepted Answer

Identifying the root of the problem is crucial in making an ethical decision as it allows for a deeper understanding of the issue at hand and helps to determine the most appropriate course of action. Going with the obvious solution or only looking at the surface of the problem may not address the underlying ethical concerns. Cost-effectiveness may also not necessarily align with ethical decision-making.

Question 8

The ethical standards of entrepreneurs

Accepted Answer

The ethical standards of entrepreneurs can be influenced by the profit motives of their business ventures. While entrepreneurs are often motivated by more than just money, the desire for profit can create ethical dilemmas and temptations, such as cutting corners or acting unethically to boost the bottom line. Therefore, ethical standards can be impacted by profit motives, making option B the correct answer. Choices A, C, and D are incorrect because they do not accurately reflect the impact of profit motives on entrepreneurs' ethical standards.

Question 9

Environmentalism poses the greatest threat to small

Accepted Answer

The answer of Environmentalism poses the greatest threat to small
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Question 10

The John E. Long family was charged by the IRS with income tax fraud for failing to record the cash they collected for admission to their country folk art shows. This illegal practice is known as _____.

Accepted Answer

Skimming is the practice of collecting cash payments and not reporting them for tax purposes, which is exactly what the John E. Long family was charged with by the IRS. Cash diversion, gunkholing, and mattress-stuffing are not related to this specific case of tax fraud.

Question 11

In a recent survey what percent of respondents said they were "very or somewhat likely" to switch brands based on corporate citizenship commitments?

Accepted Answer

The answer of In a recent survey what percent of...

Question 12

The ethical influence of a leader of a small business is

Accepted Answer

The leader of a small business often has a greater impact on the ethical conduct of the organization than the leader of a large corporation. In a small business, the leader has more direct control and influence over the company culture and values. Additionally, small businesses are often more closely connected to their customers and community, which can make ethical behavior more important for maintaining trust and relationships.

Question 13

Which would be an example of an employee acting unethically towards employer?

Accepted Answer

Taking unjustified sick leave is an example of an employee acting unethically towards employer as it involves deception and causes loss to the employer.

Question 14

In drawing up a code of ethics, a small business owner should adopt a code

Accepted Answer

A code of ethics should outline ethical principles and give examples so that employees have a clear understanding of what is expected of them in terms of ethical behavior. While resources from organizations such as the Ethics Resource Center or Better Business Bureau may be helpful in developing a code, ultimately the code should be tailored to the specific needs and values of the small business.

Question 15

There is a limit to the possible social responsiveness of small businesses because they must

Accepted Answer

Small businesses operate with limited resources and must make a profit to survive. While being socially responsible is important, it cannot be the sole focus of the business. Making a profit allows the business to continue operating and serving their customers and community. However, being socially responsible can also lead to increased customer loyalty and positive reputation in the community, which can ultimately benefit the business financially.

Question 16

Social responsibilities go far beyond a firm's relationships with customers, and typically include diverse areas such as

Accepted Answer

Social responsibilities for firms extend beyond customers and include protecting the environment, which is crucial for the well-being of the community and the planet. While educational activism and protection of religious liberties are important issues, they may not be directly related to a firm's operations and customers. Consumer protection is important, but it is only one aspect of social responsibility, and it may be limited to the firm's specific industry or market. Therefore, option A is the best choice as it reflects a broader and more essential area of social responsibility.

Question 17

Showing proper appreciation for subordinates as valuable members of the team is an essential ingredient of _____ integrity

Accepted Answer

Managerial integrity refers to ethical behavior and leadership qualities that inspire and motivate subordinates. Showing proper appreciation is a key aspect of this, as it helps build trust, respect, and loyalty among team members. Environmental integrity pertains to ethical behavior and practices that support environmental sustainability, while educational integrity relates to academic and ethical standards in learning institutions. Relative integrity is not a recognized term in the field of ethics or leadership.

Question 18

A small computer retailer makes every effort to satisfy customer needs-both before and after the sale. However, this retailer regards social problems such as environmentalism and economic development as being beyond the scope of his business. We can correctly describe this firm's management as having recognized

Accepted Answer

The firm's management recognizes its ethical obligation to customers but believes that social problems such as environmentalism and economic development are beyond the scope of its business. Therefore, the management fails to acknowledge any social responsibility beyond its obligation to customers.

Question 19

In a small business, the most important key to ethical performance is

Accepted Answer

The personal integrity of the founder or owner is the most important key to ethical performance in a small business. It sets the tone and example for the rest of the organization. While a code of ethics and training program are important, they are only effective if the leader of the organization models ethical behavior. Legislation may also impact ethical performance, but it is not the most important factor in small businesses.

Question 20

The viewpoint expressed in the textbook is that social responsibility should be recognized by

Accepted Answer

The answer of The viewpoint expressed in the textbook is...

Quiz 2: Integrity and Ethics of Entrepreneurship