Question 1

_________ are a system of rules and procedures within a business designed to ensure the accuracy and reliability of financial and accounting information

Accepted Answer

The answer of _________ are a system of rules and...

Question 2

________ is a report published each year by Transparency International, providing metrics to the potential corruption risk for 180 countries.

Accepted Answer

The answer of ________ is a report published each year...

Question 3

Which of the following is not a fundamentals of ethics education suggested by AACSB?

Accepted Answer

Emotional intelligence is not listed as a fundamental of ethics education by AACSB, which focuses more on personal integrity, ethical leadership, corporate governance, and the responsibility of business in society.

Question 4

A type of fraud, in which money received from later investors is used to provide returns to earlier investors, thus giving an appearance of a profitable investment is called a ______ scheme.

Accepted Answer

The answer of A type of fraud, in which money...

Question 5

The _______ is a U.S. federal law that consists of two parts: an anti-bribery provision and a requirement to maintain an adequate internal control system over financial books and records

Accepted Answer

The answer of The _______ is a U.S. federal law...

Question 6

Scenario - Bradley Corporation
The Bradley Corporation manufactures packaged food items that are sold around the globe. Baby food is the prominent product line currently produced by the corporation. Many of the customers for these products are located in third world countries where infant nutrition is a serious problem.
Bradley has recently decided to change its internal management structure. New managers for the corporation are now in place; however these new leaders do not appear to have the same value system as the former leaders. The former leaders embraced the idea of product safety and exhibited integrity in the production of the corporation's product lines. While the new managers claim these are important to them also, it seems the bottom line profit has precedent with them.
These changes have created concern in the company. There is strong disapproval for the way the company is conducting its business at the present time. The Board of Directors for Bradley is facing the serious question of whether profit is the only thing that matters now to the corporation.
-There is a distinct difference in the value systems between the original and new managers of the Bradley Corporation. All of the following except which one represents a key issue in ethics education, which if reinforced to the new managers, could strengthen their current value systems?

Accepted Answer

Option D, "Recognition for the necessity of vast profits" does not represent a key issue in ethics education as it suggests that profit is the only thing that matters. The other options, A, B, C, and E, all relate to reinforcing ethical values and decision-making, and promoting responsible business practices.

Question 7

Accounting practices that update the value of an asset to its current market levels are referred to as ______.

Accepted Answer

The answer of Accounting practices that update the value of...

Question 8

Employees of ABC International generally describe their CEO, Mr. James Duncan, as a man of moral and ethical principles, sound moral character, and honest. Mr. Duncan can be described as an individual with ______.

Accepted Answer

The description of Mr. James Duncan as a man of moral and ethical principles, sound moral character, and honest, indicates that he has integrity. Choice A (CSR) refers to Corporate Social Responsibility, which is not mentioned in the description. Choice C (loyalty) is not supported by the given information. Choice D (Ponzi scheme) and E (control issues) are not relevant to the description of Mr. Duncan's character.

Question 9

Act according to absolute moral rules represent the _____ argument.

Accepted Answer

The term "imperative" in this context refers to "categorical imperative," a concept developed by philosopher Immanuel Kant, which suggests that actions should be based on absolute moral rules.

Question 10

Adherence to moral and ethical principles; soundness of moral character; and honesty demonstrates _________.

Accepted Answer

The answer of Adherence to moral and ethical principles; soundness...

Question 11

Imperative principle suggests which of the following?

Accepted Answer

The imperative principle suggests that one should do what is right or ethical. This principle places emphasis on moral duty and responsibility rather than personal gain or benefit. Therefore, option B is the best choice. Options A, C, D, and E do not align with the imperative principle as they promote utilitarianism, profit maximization, government interference, and performance-based compensation respectively.

Question 12

Which of the following is NOT true regarding the Foreign Corrupt Practices Act?

Accepted Answer

The Foreign Corrupt Practices Act was actually passed in 1977, not 1952.

Question 13

Scenario - Bradley Corporation
The Bradley Corporation manufactures packaged food items that are sold around the globe. Baby food is the prominent product line currently produced by the corporation. Many of the customers for these products are located in third world countries where infant nutrition is a serious problem.
Bradley has recently decided to change its internal management structure. New managers for the corporation are now in place; however these new leaders do not appear to have the same value system as the former leaders. The former leaders embraced the idea of product safety and exhibited integrity in the production of the corporation's product lines. While the new managers claim these are important to them also, it seems the bottom line profit has precedent with them.
These changes have created concern in the company. There is strong disapproval for the way the company is conducting its business at the present time. The Board of Directors for Bradley is facing the serious question of whether profit is the only thing that matters now to the corporation.
-The Bradley Corporation is faced with a decision that involves selling an outdated product such as baby food to foreign markets to make a large profit versus losing money by destroying outdated products. Which of the following best identifies what the Bradley Corporation is experiencing?

Accepted Answer

The Bradley Corporation is facing an ethical dilemma as they have to choose between making a large profit by selling outdated and potentially unsafe baby food to third world countries or losing money by destroying the outdated products. The new managers' focus on profit over product safety and integrity is creating concern among employees and stakeholders, and the Board of Directors is struggling with the question of whether profit is the only thing that matters to the corporation now. Therefore, the best choice would be E - an ethical dilemma.

Question 14

Scenario - GCD Industries
GCD Industries is a multinational organization that produces heavy equipment. It supplies many foreign nations with the necessary equipment to conduct reconstruction after natural disasters. One of the company's largest sales resulted from the devastation that occurred in Japan after the tsunami hit that nation. GCD is committed to helping nations recover from destruction brought about by natural phenomenon.
GCD prides itself on conducting its business in an honest and ethical manner. It does not wish to deal with countries that engage in corrupt business practices, but realizes that all nations have differing business practices. When the need arises for its products, this company strives to impart integrity into all of its business deals with foreign nations regardless of that nation's accepted practices.
-GCD Industries acknowledges it is under the guidelines of the Foreign Corrupt Practices Act whenever it has dealings in the foreign marketplace. Which one of the following is not addressed by this Act?

Accepted Answer

The Foreign Corrupt Practices Act addresses bribes and corrupt practices when dealing with foreign officials, but it does not specifically address pay scales for employees working on foreign soil.

Question 15

______ is the branch of philosophy that addresses the values pertaining to human behavior, with specific regard to the "rightness" and "wrongness" of actions and to the "goodness" and "badness" of the intent and results of such actions.

Accepted Answer

The answer of ______ is the branch of philosophy that...

Question 16

Scenario - GCD Industries
GCD Industries is a multinational organization that produces heavy equipment. It supplies many foreign nations with the necessary equipment to conduct reconstruction after natural disasters. One of the company's largest sales resulted from the devastation that occurred in Japan after the tsunami hit that nation. GCD is committed to helping nations recover from destruction brought about by natural phenomenon.
GCD prides itself on conducting its business in an honest and ethical manner. It does not wish to deal with countries that engage in corrupt business practices, but realizes that all nations have differing business practices. When the need arises for its products, this company strives to impart integrity into all of its business deals with foreign nations regardless of that nation's accepted practices.
-GCD Industries attempts to always conduct its business in an ethical manner. It investigates the foreign nations in which it operates so it will be aware of any upcoming business practice differences such as corruption levels the company may face. Which one of the following is the most likely source of the information sought by GCD Industries?

Accepted Answer

GCD Industries is seeking information on corruption levels in foreign nations to ensure ethical business dealings. The Corruption Perceptions Index (CPI) ranks countries based on perceived levels of corruption in the public sector, making it the most likely source of information for GCD Industries' needs. The World Trade Organization (WTO) deals with regulations of trade between nations, Corporate Social Responsibility (CSR) pertains to ethical business practices within a company, the World Health Organization (WHO) focuses on global public health, and the Foreign Corrupt Practices Act (FCPA) is a US law prohibiting bribes to foreign officials. While all of these sources may provide some relevant information, the CPI is the most directly applicable to GCD Industries' needs.

Question 17

________ refers to a company's obligations to society, including the welfare of people and places affected by company activities

Accepted Answer

The answer of ________ refers to a company's obligations to...

Question 18

Scenario - Bradley Corporation
The Bradley Corporation manufactures packaged food items that are sold around the globe. Baby food is the prominent product line currently produced by the corporation. Many of the customers for these products are located in third world countries where infant nutrition is a serious problem.
Bradley has recently decided to change its internal management structure. New managers for the corporation are now in place; however these new leaders do not appear to have the same value system as the former leaders. The former leaders embraced the idea of product safety and exhibited integrity in the production of the corporation's product lines. While the new managers claim these are important to them also, it seems the bottom line profit has precedent with them.
These changes have created concern in the company. There is strong disapproval for the way the company is conducting its business at the present time. The Board of Directors for Bradley is facing the serious question of whether profit is the only thing that matters now to the corporation.
-Corporate social responsibility is defined as a company's obligations to society, including the welfare of people and places affected by the company's activities. Which one of the following would not demonstrate the Bradley Corporation's adherence to its corporate social responsibility?

Accepted Answer

Choice C goes against the concept of corporate social responsibility as it states that the corporation prioritizes the interests of its stockholders over anything else, even if it means sacrificing other aspects such as safety or integrity of their products. This goes against the idea of considering the welfare of people and places affected by the company's activities. Options A, B, D, and E demonstrate the corporation's adherence to its corporate social responsibility.

Question 19

Scenario - GCD Industries
GCD Industries is a multinational organization that produces heavy equipment. It supplies many foreign nations with the necessary equipment to conduct reconstruction after natural disasters. One of the company's largest sales resulted from the devastation that occurred in Japan after the tsunami hit that nation. GCD is committed to helping nations recover from destruction brought about by natural phenomenon.
GCD prides itself on conducting its business in an honest and ethical manner. It does not wish to deal with countries that engage in corrupt business practices, but realizes that all nations have differing business practices. When the need arises for its products, this company strives to impart integrity into all of its business deals with foreign nations regardless of that nation's accepted practices.
-GCD Industries employs a set of internal controls within its operations to help ensure ethical behavior and to help prevent financial impropriety. Which one of the following is least likely to be used as an internal control by this company?

Accepted Answer

All funds due the company and all checks for expenditures being handled by the same person is a clear violation of separation of duties, which is a key internal control measure. It increases the risk of financial impropriety and fraud. Therefore, it is least likely to be used as an internal control by GCD Industries.

Quiz 7: Corruption and Ethics in Global Business