ch 5 Flashcards
Insider trading can be defined as which of the following?
a. The practice of offering something (often money) in order to gain an illicit advantage from someone in
authority
b. The collection and analysis of information on markets, technologies, customers, and competitors, as well as on
socioeconomic and external political trend
c. The process of dishonestly creating, distributing, promoting, and pricing products
d. Exaggerated advertising, blustering, and boasting upon which no reasonable buyer would rely
e. The buying or selling of stocks by insiders who possess information that is not yet public
e. The buying or selling of stocks by insiders who possess information that is not yet public
An ethical issue is defined as a problem, situation, or opportunity that _______.
a. has no correct answer
b. harms the environment
c. requires society as a whole to choose among several actions that must be evaluated as right or wrong
d. requires an individual, group, or organization to choose among several actions that must be evaluated as right or wrong, ethical or unethical
e. is a trade-off between equity and efficiency
d. requires an individual, group, or organization to choose among several actions that must be evaluated as right
or wrong, ethical or unethical
is an important element of virtue and is defined as being whole, sound, and in an unimpaired
condition?
Integrity
A secret agreement between two or more parties for a fraudulent, illegal, or deceitful purpose is known as
collusion
When an employee sorts through a competing business’s trash to see if there are any documents that could reveal secret
information, this is an example of a misuse
Corporate intelligence
Issues related to fairness and honesty may arise because business is often regarded as which of the following?
a. A legal case where everything must be done to the letter of the law
b. A contest with the most ethical firm “winning”
c. A guerilla war where businesses seek to destroy each other
d. A game governed by its own rules rather than those of society
e. A game governed by social values
d. A game governed by its own rules rather than those of society
War metaphors are common in business. Why can this kind of mindset be dangerous for business leaders?
Because it may foster the idea that anything is acceptable in business
Conflicts of interest arise when an individual must choose between which of the following?
a. To advance their own personal interests, those of the organization, or those of some other group
b. To advance the interests of the organization or those of society
c. To communicate in ways that deceive, manipulate, or conceal facts in order to harm others or to be honest
d. To carry out an assignment they perceive to be unethical or to act ethically
e. To report an unethical coworker to internal leadership or outside authorities
a. To advance their own personal interests, those of the organization, or those of some other group
The offering of something of value in order to gain an illicit advantage is known as
bribery
respond to potential damage is known as
Crisis management
Any purposeful communication that deceives, manipulates, or conceals facts in order to create a false impression is known as
Fraud
If a message has a tendency to mislead, confuse, or deceive the public, it is considered
an implied falsity
When a restaurant claims that it sells the world’s best cup of coffee, it could be accused of
Puffery
Optimization is defined as which of the following?
a. The quality of being just, equitable, and impartial
b. A trade-off between equity and efficiency
c. An interchange of giving and receiving in social relationships
d. How wealth or income is distributed between employees within a company
e. A lack of integrity, incomplete disclosure, and an unwillingness to tell the truth
b. A trade-off between equity and efficiency
types of misconduct is personal in nature but is generally committed in the belief that the
action is furthering organization goals
Lying to employees
An activity is probably ethical if which of the following is true?
a. It is approved of by most members of an organization and is customary in the industry.
b. It is approved of by no one in the organization, but has been carried out in the industry before.
c. It is customary in the industry.
d. It does not violate any laws.
e. It does not make consumers feel cheated, deceived, or manipulated.
a. It is approved of by most members of an organization and is customary in the industry.
What is the first step toward understanding business ethics?
Develop ethical issue awareness.
is associated with a person who understands right/wrong behavior but uses tricks to obtain an
unfair advantage?
Guile
When does the ethical decision-making process begin?
a. With a conflict of interest
b. When an individual experiences a conflict between his or her values and those of his or her firm
c. When stakeholders trigger ethical issue awareness and individuals openly discuss it with others
d. With a conflict in values
e. When an individual experiences a conflict between his or her values and those of society
c. When stakeholders trigger ethical issue awareness and individuals openly discuss it with others
Twenty-seven states have introduced the Healthy Workplace Bill to consider ways to combat
Bullying
Accountants must abide by a strict code of ethics that defines their responsibilities to
Both their clients and the public interest
Which of the following statements best describes affirmative action programs?
a. Affirmative action programs require quotas to govern employment decisions.
b. Affirmative action programs have eliminated discrimination in employment.
c. Affirmative action programs are required in all organizations by law.
d. Affirmative action programs involve efforts to recruit, hire, train, and promote qualified individuals from
groups that have traditionally been discriminated against on the basis of race, gender, or other characteristics.
e. Affirmative action programs have fallen out of favor because they have been proven to result in reverse
discrimination against nonminorities who are the most qualified for the position.
d. Affirmative action programs involve efforts to recruit, hire, train, and promote qualified individuals from
groups that have traditionally been discriminated against on the basis of race, gender, or other characteristics.
Which of the following is a question you need to ask when you suspect that workplace bullying has occurred?
a. Has your boss given you a raise within the last year?
b. Is your supervisor requiring impossible things from you without training?
c. Are you attending all meetings called by your supervisor?
d. Have you refused to work, talk, or socialize with others?
e. Do you interfere with other employees’ work?
b. Is your supervisor requiring impossible things from you without training?
is associated with a hostile workplace where someone considered a target is threatened,
harassed, belittled, or verbally abused?
Bullying
Which of the following statements regarding abusive and intimidating behavior is true?
a. Enduring abusive behavior is necessary to get ahead.
b. Most abusive or intimidating behavior constitutes sexual harassment.
c. An organization cannot grow if the manager is intimidating.
d. Not everyone agrees on what constitutes abusive behavior.
e. Abusive behavior like bullying is illegal in the workplace.
d. Not everyone agrees on what constitutes abusive behavior.
The Age Discrimination in Employment Act specifically outlaws hiring practices that discriminate against people who
are _______.
a. under the age of 18
b. between the ages of 16 and 20
c. aged 40 and older
d. between the ages of 39 and 69
e. younger than 18 and older than 39
c. aged 40 and older
the most common ethical problem for employees?
Abusive or intimidating behavior
makes it illegal for individuals, firms, or third parties doing business in American markets to
“make payments to foreign government officials to assist in obtaining or retaining business”?
Title VII of the Civil Rights Act
U.S. Foreign Corrupt Practices Act (FCPA)
A salesperson told a client who was not an IT expert that the new software systems were much better than the client’s
existing ones. To be convincing, the salesperson used a great deal of technical jargon that the client did not really
understand. The salesperson did this intentionally to confuse the client. This example illustrates
Noise
one of the three criteria that must be met to constitute a hostile work environment?
The conduct was unwelcome
An interchange of giving and receiving in social relationships is known as
reciprocity
A company can be sued for discrimination if it does which of the following?
a. Unilaterally abuses or intimidates its employees
b. Creates an anticompetitive corporate culture
c. Discharges a minority individual, but has a just cause for doing so
d. Uses age as a hiring or firing criterion
e. Has more men than women on staff
d. Uses age as a hiring or firing criterion
Which of the following is true of affirmative action programs?
a. They involve the promotion of unqualified employees.
b. They are not imposed by federal law on employers.
c. They are not very commonly used anymore because of reverse discrimination concerns.
d. They only involve the training of individuals.
e. They involve the recruitment, hiring, promotion, and training of qualified individuals.
e. They involve the recruitment, hiring, promotion, and training of qualified individuals.
Which type of fraud involves intentional deception on the part of an individual or group in order to derive an unfair
economic advantage over an organization?
Consumer
Which type of fraudulent activity could involve a consumer staging an accident in order to seek damages?
Duplicity
Which type of fraudulent activity involves an employee who assists a consumer in committing the fraud?
Collusion
In the past, bond ratings agencies were paid by the organizations that they rated, so organizations would shop around
for the agency that gave them the best rating. This led to the agencies being accused of having which of the following?
Conflicts of interest
are used to obtain or retain business and are not generally considered illegal in the United
States?
Facilitation payments
requires an individual to choose among several actions that have negative outcomes?
An ethical dilemma
Which of the following best describes a dual relationship?
a. Any repeated, unwanted behavior of a sexual nature perpetrated upon one individual by another
b. A sexual relationship between an employee and his or her immediate superior
c. A relationship in which both parties consented but then one party later claims sexual harassment
d. A situation in which a manager convinces his or her employee to engage in a sexual relationship in exchange
for incentives
e. A personal, loving, and/or sexual relationship with someone with whom you share professional responsibilities
e. A personal, loving, and/or sexual relationship with someone with whom you share professional responsibilities
An employee can only successfully accuse a co-worker of sexual harassment if it seriously affected their
psychological well-being or caused physical injury.
a. True
b. False
False
The three fundamental elements of honesty, integrity, and equality are ones that motivate people to be fair.
a. True
b. False
False
Omission lying is intentionally not informing others of any differences, problems, safety warnings, or negative issues
relating to a product or company that significantly affect awareness, intention, or behavior.
a. True
b. False
True
Examples of consumer fraud include shoplifting, collusion, guile, and duplicity.
a. True
b. False
True
Creating a perception or belief by words that intentionally deceives someone is related to
Lying by commission
Which of the following types of misconduct involves a corporation’s financial reports, in which companies provide
important information on which investors and others base decisions involving millions of dollars?
Accounting fraud
When someone looks over an employee’s shoulder while the employee types a password, they are engaging in a behavior known as
shoulder surfing
refers to the process of dishonestly creating, distributing, promoting, and pricing products?
Marketing fraud
Which of the following methods of corporate espionage involves tricking individuals into revealing their passwords or other valuable corporate information?
Social engineering
