CH. 4, 10, 16 Flashcards
What are beliefs about what is right and what is wrong is called?
ethics
When you are faced with options which all have negative consequences, what you are experiencing?
an ethical dilemma
What is a code of ethics?
a formal written document defining the ethical standards of an organization
The obligation of a business to contribute to society is referred to as
social responsibility
Consumerism focuses on all of the following rights except:
a. the right to choose.
b. the right to be heard.
c. the right to be safe.
d. the right to privacy.
d. the right to privacy.
What is the piece of legislation that set higher ethical standards for public corporations and accounting firms?
Sarbanes–Oxley Act
Sustainable development
means doing business to meet the needs of the current generation without harming the ability of future generations to meet their needs
Stakeholders of a business include all of the following except:
a. employees.
b. investors.
c. regulators.
d. customers.
c. regulators
Companies offer bribes overseas even though it is illegal because it is an accepted practice in foreign countries.
True
What is a systematic evaluation of how well a firm is meeting its ethics and social responsibility goals?
a social audit
Financial institutions accept money in the form of deposits (from individuals and businesses) and then loan them out to borrowers
True
What type of depository institution is a cooperative owned by its members, and is a nonprofit organization?
a. investment bank
b. savings and loan association
c. commercial bank
d. credit union
d. credit union
The Banking Act of 1933 established the
Federal Deposit Insurance Corporation (FDIC)
FDIC
Federal Deposit Insurance Corporation
The Securities and Exchange Commission was created by the
Securities Act of 1934
Purchasing common stock is a way to loan money to a corporation.
False
The rights of common stockholders include all of the following except:
a. rights to manage.
b. preemptive rights.
c. rights to dividends.
d. voting rights.
a. rights to manage.
An initial public offering (IPO) is offered through the secondary market.
False
All of the following are questions you should ask yourself before investing except:
a. How much money can you make?
b. How long can you leave your money invested?
c. How much tolerance do you have for risk?
d. How much are you able to invest?
a. How much money can you make?
The investment strategy of buying and holding means
purchasing a diversified set of securities and then holding them for a long period of time
Two of the best known market indices are the Dow Jones Industrial Average and the S&P 500.
True
The Internet2 is a noncommercial network that uses high–speed connectivity to improve education, research, and collaboration among member organizations.
True
refers to using Internet–based storage capacity, applications and processing power to replace internally owned computer resources.
Cloud computing
A _______ gives managers access to large amounts of data and the processing power to convert these data into high–quality information.
decision support system
An Internet–based firm that specializes in the secure electronic transfer of funds is known as a(n) _______.
cybermediary
When you purchase songs from iTunes, you are participating in a _______ e–commerce transaction.
B2C
Which of the following refers to an Internet marketing strategy that tries to involve customers and others not employed by the seller in activities that help promote the product?
a. Idea marketing
b. Neuromarketing
c. Viral marketing
d. Permission marketing
c. Viral marketing
Radio frequency identification (RFI)
uses technology that stores information on a microchip and transmits it to a reader when the product is within a specific range.
is a scam in which official–looking emails are sent to individuals in an attempt to get them to divulge private information such as passwords, usernames, and account numbers.
Phishing
A virus is malicious computer software that can spread on its own without being attached to other files
False
A hacker is a skilled computer user who uses his/her expertise to gain unauthorized access to the computer (or computer system) of others, sometimes with malicious intent
True
