Question 1

What is using confidential information to gain from the purchase of a stock is called?
A)Insider trading
B)Stock scam
C)Pump and dump
D)Market manipulation
E)Improper profiting

Accepted Answer

Insider trading refers to the illegal practice of trading on the stock exchange to one's own advantage through having access to confidential information.

Question 2

Who are groups,individuals and organizations that are directly affected by the practices of an organization and that therefore have an interest in its performance?
A)Company shareholders
B)Community groups
C)Organizational stakeholders
D)Local government associations
E)Vested interested parties

Accepted Answer

Organizational stakeholders are groups, individuals, and organizations directly affected by an organization's practices and have an interest in its performance.

Question 3

Which of the following is a systematic analysis of how a firm is using funds earmarked for social-responsibility and how effective these expenditures have been?
A)Social audit
B)Environmental examination
C)Green investigation
D)Sustainability review
E)Charitable verification

Accepted Answer

A social audit is a systematic analysis of how a firm is using funds earmarked for social responsibility and how effective these expenditures have been.

Question 4

When companies get together to fix prices,this is illegal and is called which of the following?
A)Bait and switch
B)Collusion
C)Shell game
D)Price deception
E)Conspiracy

Accepted Answer

Collusion is an illegal agreement between companies to fix prices.

Question 5

Which of the following is the reconversion of waste materials into useful products?
A)Recycling
B)Salvaging
C)Reclamation
D)Restoration
E)Recovering

Accepted Answer

Recycling is the process of converting waste materials into new, useful products, thereby reducing the consumption of fresh raw materials and minimizing waste.

Question 6

Which of the following is not one of the forms of financial mismanagement?
A)Insider trading
B)Cheque kiting
C)Misrepresentation of finances
D)Improper financial management
E)Expense account abuse

Accepted Answer

The answer of Which of the following is not one...

Question 7

What is the stance of businesses that do as little as possible to solve social or environmental problems?
A)Minimalist stance
B)Defensive stance
C)Accommodative stance
D)Proactive stance
E)Obstructionist stance

Accepted Answer

Businesses that do as little as possible to solve social or environmental problems are taking an obstructionist stance. They are not actively trying to solve these problems, and they may even be making them worse.

Question 8

What are dangerous chemical and/or radioactive by-products of various manufacturing processes that are harmful to humans and animals called?
A)Deadly disposals
B)Infectious garbage
C)Septic runoff
D)Toxic wastes
E)Harmful contaminants

Accepted Answer

Toxic wastes are dangerous chemical and/or radioactive by-products of manufacturing processes that are harmful to humans and animals.

Question 9

What is the introduction of harmful substances into the environment called?
A)Pollution
B)Dumping
C)Environmental spoiling
D)Contamination
E)Runoff

Accepted Answer

Pollution is the introduction of harmful substances into the environment.

Question 10

Steve Beatty is the head salesperson of a computer company that has a contract with a supplier to provide technical equipment and support.Just before the winter holiday,a greeting card comes to his home address from the president of the supplier.In it,he finds a Best Buy gift card worth $500,with a note that says,"Go buy some toys for the kids." His children are excited,because they had been looking forward to getting some newly released game console. Beatty looks at his firm's formal code of ethics and finds that employees are cautioned not to accept gifts from suppliers for their own personal use.It does not specifically say that gifts for family members are included.He decides to keep the card.
Which of the following,if true,strengthens Beatty's ethical position?
A)The gift card has no expiration date,so he can wait to use it later,when he has moved to another position in his company where no conflict of interest exists.
B)The greeting and the gift card were received at his home residence,not at his place of work.
C)The salesman has just spent $500 of his own money on video game equipment for his children at Best Buy,so he has no immediate reason to use the gift card.
D)The president of the supplier is Beatty's father-in-law,so the gift is a personal one for his grandchildren.
E)On checking,Beatty learns that the supplier sent gift cards of lower value to other salespersons in his company.

Accepted Answer

If the president of the supplier is Beatty's father-in-law, the gift can be considered a personal family gift rather than a professional one, which may not violate the company's code of ethics.

Question 11

What are activities that meet current needs,but will not put future generations at a disadvantage when they try to meet their needs?
A)Continuous improvement
B)Ethical growth
C)Sustainable development
D)Environmental awareness
E)Greening process

Accepted Answer

Sustainable development is defined as development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

Question 12

Which of the following is not one of the rights that consumers have?
A)Right to safe products
B)Right to be heard
C)Right to fair pricing
D)Right to courteous service
E)Right to choose what they buy

Accepted Answer

The right to fair pricing is not traditionally listed among the basic consumer rights, which typically include safety, being informed, choice, and being heard.

Question 13

Which of the following is not an organizational stakeholder?
A)Suppliers
B)Employees
C)Customers
D)Investors
E)Competitors

Accepted Answer

Competitors are not considered organizational stakeholders as they do not have a direct interest or investment in the organization. Stakeholders typically include parties like suppliers, employees, customers, and investors who have a direct or indirect stake in the organization's success.

Question 14

Which of the following is the stance of a firm that meets their legal and ethical requirements and will go further in certain cases if they are asked?
A)Defensive stance
B)Obstructionist stance
C)Accommodative stance
D)Proactive stance
E)Minimalist stance

Accepted Answer

An accommodative stance is when a firm meets its legal and ethical requirements and goes beyond them in certain cases, often when requested.

Question 15

What is writing a cheque from one account,depositing it in a second account and then immediately spending money from the second account while the money from the first account is still in transit called?
A)Account manipulation
B)Cheque kiting
C)Deposit timing
D)Arbitrage
E)Withdrawal bridging

Accepted Answer

Cheque kiting is the practice of writing a cheque from one account, depositing it in another, and then using the funds before the cheque clears, exploiting the float time.

Question 16

Steve Beatty is the head salesperson of a computer company that has a contract with a supplier to provide technical equipment and support.Just before the winter holiday,a greeting card comes to his home address from the president of the supplier.In it,he finds a Best Buy gift card worth $500,with a note that says,"Go buy some toys for the kids." His children are excited,because they had been looking forward to getting some newly released game console. Beatty looks at his firm's formal code of ethics and finds that employees are cautioned not to accept gifts from suppliers for their own personal use.It does not specifically say that gifts for family members are included.He decides to keep the card.
Which of the following,if true,most clearly makes Beatty's action professionally unsupportable?
A)The supplier's low prices have helped the computer company remain competitive with rival companies in its local market.
B)The supplier needs continued business from the computer company to remain financially viable.
C)Beatty is not the only person responsible for recommending which bids to accept from suppliers.
D)Beatty's work contract states that employees must report all gifts from people associated with firms with which they do business.
E)Rumour has it that other employees also received similar gift cards from the supplier and did not report them.

Accepted Answer

Beatty's work contract explicitly requires employees to report all gifts from business associates, making his decision to keep the gift card without reporting it a violation of his professional obligations.

Question 17

The movement designed to help workers in developing countries receive fair payments for their work is referred to as which of the following?
A)Ethical sourcing
B)Crowd funding
C)Reciprocal trade
D)Fair-trade
E)Equitable development

Accepted Answer

Fair-trade is a movement aimed at ensuring that workers in developing countries receive fair payments and work under good conditions.

Question 18

Corporate social responsibility will not succeed without which of the following?
A)Adequate funding
B)Employee buy in
C)Support of top management
D)Board of directors' approval
E)Executive acknowledgement

Accepted Answer

Support of top management is crucial for the success of corporate social responsibility initiatives, as it provides the necessary authority and resources to implement and sustain these programs.

Question 19

Who is an individual who calls attention to an unethical,illegal and/or socially irresponsible practice on the part of a business or other organization?
A)Awareness advocate
B)Ethics referee
C)Whistle-blower
D)Corporate crusader
E)Outsider

Accepted Answer

A whistle-blower is someone who exposes unethical, illegal, or socially irresponsible practices within an organization.

Question 20

Which of the following is a social movement that seeks to protect and expand the rights of consumers in their dealings with businesses?
A)Consumerism
B)Purchasing protection
C)Customer awareness
D)Shopper activism
E)Buyer rights enlargement

Accepted Answer

Consumerism is a social movement aimed at protecting and expanding the rights of consumers in their dealings with businesses.

Quiz 3: Conducting Business Ethically and Responsibly

What is using confidential information to gain from the purchase of a stock is called?

Who are groups,individuals and organizations that are directly affected by the practices of an organization and that therefore have an interest in its performance?

Which of the following is a systematic analysis of how a firm is using funds earmarked for social-responsibility and how effective these expenditures have been?

When companies get together to fix prices,this is illegal and is called which of the following?

Which of the following is the reconversion of waste materials into useful products?

Which of the following is not one of the forms of financial mismanagement?

What is the stance of businesses that do as little as possible to solve social or environmental problems?

What are dangerous chemical and/or radioactive by-products of various manufacturing processes that are harmful to humans and animals called?

What is the introduction of harmful substances into the environment called?

What are activities that meet current needs,but will not put future generations at a disadvantage when they try to meet their needs?

Which of the following is not one of the rights that consumers have?

Which of the following is not an organizational stakeholder?

Which of the following is the stance of a firm that meets their legal and ethical requirements and will go further in certain cases if they are asked?

What is writing a cheque from one account,depositing it in a second account and then immediately spending money from the second account while the money from the first account is still in transit called?

The movement designed to help workers in developing countries receive fair payments for their work is referred to as which of the following?

Corporate social responsibility will not succeed without which of the following?

Who is an individual who calls attention to an unethical,illegal and/or socially irresponsible practice on the part of a business or other organization?

Which of the following is a social movement that seeks to protect and expand the rights of consumers in their dealings with businesses?