Question 1

Do what is right,but filter the action by consideration of its consequences.Make a decision by considering the consequences if everyone made the same choice under similar circumstances.These statements refer to the _____ argument.

Accepted Answer

The generalization argument states that we should make decisions by considering the consequences if everyone made the same choice under similar circumstances.

Question 2

Corporate social responsibility refers only to the company's obligations to its stockholders and investors.

Accepted Answer

Corporate social responsibility refers to a broader concept that includes a company's obligation towards its stakeholders, such as employees, customers, suppliers, and the community at large, in addition to its obligations towards its stockholders and investors.

Question 3

The global slave trade that exists today is referred to as human trafficking.

Accepted Answer

Human trafficking involves the recruitment, transportation, transfer, harboring or receipt of persons through force, fraud or coercion for the purpose of exploitation. It is considered a modern form of slavery.

Question 4

Under the terms of the Foreign Corrupt Practices Act,it is illegal to give a bribe to a foreign official or foreign political party,but permissible to give a bribe to a businessperson if bribery is considered "an integral part of doing business in the country's environment."

Accepted Answer

It is illegal to give a bribe to anyone, regardless of whether they are a foreign official or businessperson, under the Foreign Corrupt Practices Act. There is no exception for bribery being considered an integral part of doing business in the country's environment.

Question 5

The Sarbanes-Oxley Act increased the potential prison sentence for fraud to _____ years.

Accepted Answer

The Sarbanes-Oxley Act increased the potential prison sentence for fraud to 25 years.

Question 6

The Sarbanes-Oxley Act of 2002 set "green" standards for companies.

Accepted Answer

The Sarbanes-Oxley Act of 2002 primarily aimed to improve corporate governance and financial transparency, but did not include any provisions related to environmental standards or sustainability.

Question 7

Corruption is unknown in countries with low CPI scores.

Accepted Answer

Corruption can still occur in countries with low CPI scores. A low CPI score indicates that corruption is perceived to be high in that country, but it does not necessarily mean that corruption is nonexistent.

Question 8

Internal control procedures fit into two categories: (1)preventing accidental errors and intentional misrepresentations and (2)identifying errors and irregularities after they occur so that corrective action may be taken.

Accepted Answer

This statement accurately describes the two main categories of internal control procedures. Preventative measures aim to stop errors and fraud before they occur, while detective measures help identify and correct errors and fraud after they have already happened.

Question 9

Well-designed corporate ethics codes guarantee that employees will always make the ethical choice.

Accepted Answer

While a well-designed corporate ethics code can provide guidance and set expectations for ethical behavior, employees ultimately make their own choices and may not always choose the ethical option. Factors such as personal values, individual biases, and situational pressures can influence decision-making. Therefore, ethical behavior requires continual reinforcement and a culture that values integrity and accountability.

Question 10

The FIRST basic step in ethical decision-making is to

Accepted Answer

Defining all the facts and circumstances is the first step in ethical decision-making. Without a clear understanding of the situation, it is impossible to make an informed and ethical decision. Identifying who will be affected, determining benefits, identifying alternate decisions and consequences, and carrying out the decision all come after defining the facts and circumstances.

Question 11

Enron Corporation is a perfect example of effective social and ethical responsibility in the financial sector.

Accepted Answer

Enron Corporation is actually a well-known example of a company failing to uphold social and ethical responsibility. The company was involved in fraudulent activities, accounting scandals, and bribery schemes, which led to its downfall and bankruptcy.

Question 12

The four basic steps in ethical decision making are: define all the facts and circumstances,identify the people affected,determine the alternative decisions and consequences,and make the decision and carry it out.

Accepted Answer

This statement accurately describes the four basic steps in ethical decision making.

Question 13

The five fundamentals of ethics education proposed by AACSB are: personal integrity,responsibility of business in society,ethical decision making,ethical leadership,and corporate governance.

Accepted Answer

The statement accurately represents the five fundamentals of ethics education proposed by AACSB.

Question 14

Production quality control and internal auditing are example of feedback controls.

Accepted Answer

Yes, production quality control and internal auditing are examples of feedback controls as they provide information about past performance, which can be used to adjust and improve current and future performance. Feedback controls involve monitoring and adjusting ongoing activities to ensure that they are achieving desired results.

Question 15

Vivendi,a French-based multination corporation,gained international scorn when it was discovered they cooked their books to make their performance appear better than it actually was for the purpose of making a number of acquisitions.

Accepted Answer

This statement is true. Vivendi was involved in an accounting scandal in the early 2000s where they inflated their financial performance.

Question 16

In 2005,Bernie Ebbers of WorldCom was recognized by the Better Business Bureau for his company being a leader in social responsibility.

Accepted Answer

Bernie Ebbers and WorldCom were not recognized by the Better Business Bureau for social responsibility. In fact, the company was involved in one of the largest accounting scandals in history and filed for bankruptcy in 2002.

Question 17

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 18

In the business world,the purpose of ethics is to direct business men and women to make as much money as they can any way possible.

Accepted Answer

The purpose of ethics in the business world is not solely to maximize profits, but also to consider moral and social responsibilities to stakeholders, employees, customers, and the environment. Business ethics involves balancing economic growth with social and ethical considerations.

Question 19

SOX requires that the CEO and the CFO of a publicly traded corporation must certify in each periodic report containing financial statements that the report fully complies with the Securities Exchange Act of 1934 and that the information fairly represents the company's financial condition and results of operations.

Accepted Answer

This statement is true as per the requirements of the Sarbanes-Oxley Act (SOX).

Question 20

Asking oneself "Would I want others to treat me this way?" is an application of the principle of _____.

Accepted Answer

The answer of Asking oneself "Would I want others to...

Quiz 8: Control of Global Business