Question 1

Which of the following is created by the chemical or radioactive by-products of the manufacturing process?

Accepted Answer

Toxic waste is created by the chemical or radioactive by-products of the manufacturing process. Fracking and alternative sources of energy are methods of energy production, not waste products. Carbon dioxide is a greenhouse gas produced naturally and by human activities such as burning fossil fuels, but it is not necessarily a by-product of manufacturing. Landfill waste is a result of consumer waste disposal and not necessarily connected to manufacturing processes.

Question 2

The Consumer Bill of Rights is backed by numerous federal and state laws.

Accepted Answer

The Consumer Bill of Rights is supported by various federal and state laws such as the Federal Trade Commission Act, the Fair Credit Reporting Act, and the Consumer Product Safety Act.

Question 3

A company that does not act responsibly toward its customers may lose their trust and ultimately their business.

Accepted Answer

Customers expect companies to act responsibly and ethically. If a company fails to do so, customers may lose their trust and switch to a competitor.

Question 4

Which of the following includes provisions that control air pollution by members?

Accepted Answer

NAFTA, or the North American Free Trade Agreement, includes provisions that aim to control air pollution by its member countries. While primarily a trade agreement, NAFTA also addresses environmental concerns, including air pollution, through side agreements and provisions that encourage cooperation among member countries to reduce pollution.

Question 5

What is the result of two or more firms collaborating on a wrongful act,such as price fixing?

Accepted Answer

Collaboration between firms to engage in wrongful acts such as price fixing is called collusion. This behavior is illegal and can lead to antitrust lawsuits and penalties.

Question 6

When a firm modifies a production process to limit the consumption of valuable resources,and promotes the product produced as environmentally friendly,what business practice are they engaging in?

Accepted Answer

The firm is engaging in green marketing by promoting their product as environmentally friendly after modifying their production process to limit resource consumption.

Question 7

What do new forms of solid-waste disposal,such as repurposing combustible waste,help prevent?

Accepted Answer

Repurposing combustible waste helps prevent future contamination of land. By properly disposing of solid waste, we prevent it from leaching harmful chemicals and toxins into the soil and water sources, which can lead to contamination of the land.

Answer: B 
 Repurposing combustible waste also helps prevent toxins from entering the environment. When waste is burned, it can release harmful chemicals and pollutants into the air, contributing to pollution and potential health hazards. By repurposing combustible waste instead of burning it, we can reduce these risks.

Answer: E 
 Repurposing combustible waste can also help to support zero-landfill claims. By finding new uses for waste, we can reduce the amount of waste that ends up in landfills and increase the lifespan of existing landfill sites, leading us closer to achieving the goal of sending zero waste to landfills.

Question 8

Social activism dedicated to protecting the rights of consumers is the result of what?

Accepted Answer

Social activism dedicated to protecting the rights of consumers is a result of increased consumerism, which has led to a greater awareness of consumer rights and the need for protection. Consumerism is the idea that consumers should have a say in the products and services they purchase, and that businesses should be accountable for their actions and the impact they have on consumers and the environment. This has led to the development of consumer protection laws and regulations, as well as the emergence of consumer rights groups and activism.

Question 9

When a stakeholder uses confidential information to gain from the sale or purchase of a stock,what ethical violation are they engaging in?

Accepted Answer

The stakeholder is engaging in insider trading, which involves using confidential or non-public information to make stock transactions for personal gain. This is a violation of ethical principles as it gives the shareholder an unfair advantage and goes against the principles of transparency and fairness in the stock market. Whistle-blowing refers to exposing wrongdoings or unethical behavior, so this choice is not relevant in this scenario. Social accommodation, collusions, and gouging are also irrelevant in the context of this question.

Question 10

Describe the stakeholder model of social responsibility.

Accepted Answer

The answer of Describe the stakeholder model of social responsibility....

Question 11

When working to protect the environment,what type of pollution is created by carbon monoxide and other chemicals produced by manufacturing plants?

Accepted Answer

Carbon monoxide and other chemicals produced by manufacturing plants contribute to air pollution.

Question 12

What must every corporation do in maintaining and reporting its financial status?

Accepted Answer

Every corporation must conform to generally accepted accounting principles (GAAP) in order to maintain and report its financial status accurately and transparently. This includes using consistent accounting methods, disclosing all relevant information, and providing clear and understandable financial statements. Using creative accounting practices to manipulate financial results or artificially inflate stock prices is unethical and illegal, and could result in severe consequences for the company and its stakeholders. Similarly, purchasing stocks on margin and aiming to maximize predicted profit margins are not necessarily requirements for maintaining and reporting financial status, and may even be counterproductive or risky strategies depending on the specific circumstances.

Question 13

What does the Sarbanes-Oxley Act of 2002 require a chief financial officer to do?

Accepted Answer

The Sarbanes-Oxley Act of 2002 requires a chief financial officer to certify the accuracy of financial reporting and take responsibility for internal controls to prevent fraud.

Question 14

Explain the steps that an organization must take to foster a company-wide sense of social responsibility.

Accepted Answer

The answer of Explain the steps that an organization must...

Question 15

Which of the following occurs when someone uses confidential information to gain from the purchase or sale of stocks?

Accepted Answer

Insider trading is the use of confidential information to make a profit or avoid a loss in the stock market. It is illegal and unethical. Identity theft involves stealing personal information, a margin purchase involves borrowing money from a broker to invest in stocks, collusion involves secret cooperation to deceive others, and a guarantee is a promise of performance or satisfaction.

Question 16

What is the main cause of water pollution?

Accepted Answer

Chemical and waste dumping is the main cause of water pollution. Industrial and agricultural activities often release chemicals and waste into water bodies, contaminating them and causing harm to aquatic life and humans who consume the polluted water. Acid rain, landfill runoff, vehicle exhaust, and decomposition can also contribute to water pollution but they are not the main cause.

Question 17

What Act requires an organization's chief financial officer to personally guarantee the accuracy of all financial reporting?

Accepted Answer

The Sarbanes-Oxley Act (SOX) of 2002 requires the chief financial officer (CFO) to personally certify the accuracy of all financial reporting. This Act was passed in the aftermath of high-profile corporate accounting scandals and aims to improve corporate transparency and accountability.

Question 18

Which of the following regulates advertising and pricing practices to protect consumers?

Accepted Answer

The Federal Trade Commission (FTC) is responsible for regulating advertising and pricing practices to protect consumers. They ensure that companies are not engaging in deceptive or unfair practices in their advertising or pricing, and they have the power to take legal action against companies that violate these standards.

Question 19

What is the practice of injecting water and chemicals into underground rock in order to break the rock apart called?

Accepted Answer

The practice described is called fracking, or hydraulic fracturing, and involves injecting water and chemicals into underground rock formations to create cracks and release natural gas or oil.

Question 20

What is the term for an employee who discovers an illegal or unethical activity and tries to put an end to it by speaking up?

Accepted Answer

The term for an employee who discovers an illegal or unethical activity and tries to put an end to it by speaking up is a whistle-blower.

Quiz 2: Understanding Business Ethics and Social Responsibility