Question 1

Some of the problems raised by corporate reward structures include:

Accepted Answer

A)  focusing on long-term rather than short-term profitability.
B)  the interests of managers always being aligned with the long-range interests of the company.
C)  managers being inclined sometimes to act irresponsibly and/or illegally without an eye to legal trouble that may occur in the future.
D)  firms sacrificing the present to the future thereby promoting long-term allocational inefficiency.E) All of the above
F) A) and B)

Question 2

Market forces serve as a sufficient control on corporate behavior because the market always reveals social and environmental harm.

Accepted Answer

A) True 
 B)False

Question 3

Many corporations initiate legislation in order to:

Accepted Answer

A)  head off the risk of future unpredictable lawsuits.
B)  ensure that their competitors are subject to more rigid constraints than is applicable to them.
C)  enhance the community in which the company is located.
D)  maximize the risk of more costly regulations for competitors.E) B) and D)
F) B) and C)

Question 4

The problem with the view that a corporation should attempt to act in the best interests of all of its various constituencies is that:

Accepted Answer

A)  this tactic ignores the bottom line.
B)  corporate managers often have a better sense of what is right.
C)  the values of these constituencies may conflict.
D)  local communities will not benefit from these values.E) None of the above
F) A) and C)

Question 5

According to the Foreign Corrupt Practices Act (FCPA),a U.S.firm is not liable for bribes made by its foreign agents under any circumstances.

Accepted Answer

A) True 
 B)False

Question 6

Law may not be up to the task of forcing corporations to engage in ethical behavior for a number of reasons,including that:

Accepted Answer

A)  it is not clear that all corporations will respond to the threat of financial penalties imposed by law.
B)  judges are likely to be sympathetic to corporations.
C)  Sarbanes-Oxley decreases the likelihood that illegal behavior will be detected.
D)  corporations voluntarily elect to pursue ethical ends.E) A) and C)
F) B) and D)

Question 7

A corporate manager looking for ethical guidance that neither the law nor social norms accounts for must rely on:

Accepted Answer

A)  a strategy that will maximize profits.
B)  his/her individual conscience.
C)  the advice of other managers.
D)  his/her system of delegation to subordinates.E) B) and D)
F) All of the above

Question 8

Corporations sometimes consciously choose to break the law if it poses acceptable risks such as relatively light penalties for violation,if the benefits gained by doing so are great.

Accepted Answer

A) True 
 B)False

Question 9

There is no guarantee that the values of "ethical" shareholders would be representative of society as a whole.

Accepted Answer

A) True 
 B)False

Question 10

A group of people who must reach a consensus on an acceptable level of risk often decide on a level of risk lower than the risk they would accept as individuals is known as risky shift.

Accepted Answer

A) True 
 B)False

Exam 3: Business Ethics and Corporate Social Responsibility

Market forces serve as a sufficient control on corporate behavior because the market always reveals social and environmental harm.

Correct Answer
verified

According to the Foreign Corrupt Practices Act (FCPA),a U.S.firm is not liable for bribes made by its foreign agents under any circumstances.

Correct Answer
verified

The problem with the view that a corporation should attempt to act in the best interests of all of its various constituencies is that:

Correct Answer
verified

A group of people who must reach a consensus on an acceptable level of risk often decide on a level of risk lower than the risk they would accept as individuals is known as risky shift.

Correct Answer
verified

Law may not be up to the task of forcing corporations to engage in ethical behavior for a number of reasons,including that:

Correct Answer
verified

Some of the problems raised by corporate reward structures include:

Correct Answer
verified

A corporate manager looking for ethical guidance that neither the law nor social norms accounts for must rely on:

Correct Answer
verified

Corporations sometimes consciously choose to break the law if it poses acceptable risks such as relatively light penalties for violation,if the benefits gained by doing so are great.

Correct Answer
verified

There is no guarantee that the values of "ethical" shareholders would be representative of society as a whole.

Correct Answer
verified

Many corporations initiate legislation in order to:

Correct Answer
verified

Exam 3: Business Ethics and Corporate Social Responsibility

Market forces serve as a sufficient control on corporate behavior because the market always reveals social and environmental harm.

Correct AnswerverifiedShow Answer

According to the Foreign Corrupt Practices Act (FCPA),a U.S.firm is not liable for bribes made by its foreign agents under any circumstances.

Correct AnswerverifiedShow Answer

The problem with the view that a corporation should attempt to act in the best interests of all of its various constituencies is that:

Correct AnswerverifiedShow Answer

A group of people who must reach a consensus on an acceptable level of risk often decide on a level of risk lower than the risk they would accept as individuals is known as risky shift.

Correct AnswerverifiedShow Answer

Law may not be up to the task of forcing corporations to engage in ethical behavior for a number of reasons,including that:

Correct AnswerverifiedShow Answer

Some of the problems raised by corporate reward structures include:

Correct AnswerverifiedShow Answer

A corporate manager looking for ethical guidance that neither the law nor social norms accounts for must rely on:

Correct AnswerverifiedShow Answer

Corporations sometimes consciously choose to break the law if it poses acceptable risks such as relatively light penalties for violation,if the benefits gained by doing so are great.

Correct AnswerverifiedShow Answer

There is no guarantee that the values of "ethical" shareholders would be representative of society as a whole.

Correct AnswerverifiedShow Answer

Many corporations initiate legislation in order to:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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