Lessons 5-6 Flashcards
Much of the blame for corporate scandals like Enron and WorldCom can be placed on the audit committees of the boards of directors
False
Best World resources Inc. is a big gaming company with Stanley Ho as major stakeholder from Taiwan.
False
The BW Resources Inc. scandal was the stock manipulation of PSE for the benefit of Joseph Estrada
True
SEC Memorandum Circular No. 19 Series of 2016, covers all private corporations in the Philippines under supervision of the SEC
False
Both board director, officers, including the top managements of corporations are fiduciaries (persons placed in positions of trust) for the shareholders.
False
The public’s view of business ethics has always been very high until the recent scandals.
False
The major questions related to the conventional approach to business ethics are “Whose norms do we use?” and “What norms are prevailing?”
True
The best reason to base one’s ethics on societal norms is that the norms do not conflict; thus they provide clear guidance to “right” and “wrong.”
False
Ethical behavior is generally considered to be on a higher plane than legal behavior.
True
In business decisions ethics, the environment and the law are not factors.
False
Ethics refers to issues of right and wrong, fairness, and justice.
True
The principal internal stakeholders of a corporation are its customers and employees.
False
Immoral management implies that decision makers know right from wrong, but choose to do wrong.
True
The relationship between government and business has become adversarial, but is improving.
False
In many ways the most controversial aspect of the government/business relationship is deregulation.
False
Government regulation generally arises out of some type of market failure.
True
Keeping people informed is an important social goal of government.
True
Government regulation of business through the control of economic or market variables is a form of social regulation.
False
DTI is the government agency that is responsible for the country’s competitiveness and innovativeness contributing to inclusive growth and employment generation.
True
At least 5, but not more than 13 members of Board of Directors should be elected by stockholders.
False
The method by which a firm is being governed, directed, administered, or controlled is
management by objectives
management by crisis
corporate governance
management by decree
corporate governance
The group that is elected by shareholders to govern and oversee management is the
board of directors
investment council
top management
governing board
board of directors
The people hired by the board to run the company and operate it on a daily basis is
the administration
employee council
the management
the executive team
the management
Boards have recently improved in all of the following ways except
more directors own stock in the company
more directors are independent
more boards are likely to demand change
reducing executive pay
reducing executive pay
Directors who have some sort of ties to the firm are termed
dependent directors
outside directors
inside directors
independent directors
inside directors
The discipline that deals with what is good and bad and with moral duty and obligation is
values
morality
ethics
business ethics
ethics
Which of the following is not one of the major approaches to thinking about business ethics?
coventional approach
principles approach
ethical tests approach
rights and duties approach
rights and duties approach
The approach to business ethics in which we compare a decision or practice to prevailing norms of acceptability is the
virtue approach
ethical tests approach
conventional approach
principles approach
conventional approach
The minimum standard of ethical behavior can be thought of as
avoiding punishment
living according to religious principles
adhering to the law
following the Golden Rule
adhering to the law
The challenge in all managerial situations is take what can be done and what should be done and find
the least coastly approach
a balance
the more practical solution
the most effective action
a balance
Modern goals for business include all of the following except
fair pay
promoting the social welfare
a safe working environments
the equal employment opportunities
promoting the social welfare
Which of the following is not a method that government uses to influence business?
regulation
taxation
lobbying
industrial policy
lobbying
Government regulations have been criticized for all the following reasons except
being ineffective
being burdensome to business
being too extensive
being too costly
being ineffective
The act of controlling business through laws passed by the government is called
reregulation
central planning
regulation
deregulation
regulation
Which of the following is not a major reason given for governmental regulation?
controlling natural monopolies
maintaining trade surplus with foreign countries
controlling negative externalities
achieving social goals
maintaining trade surplus with foreign countries
Method of ethical reasoning where benefits and costs are fairly distributed.
justice
A cyber-crime where a branch manager siphoned almost a billion pesos.
Metro Bank
Transfer of millions of $ from Bangladesh CB to a bogus local account
RCBC
It seeks to preserve competition in the marketplace, thereby protecting consumers
antitrust laws
Method of ethical reasoning where it aligns with good character.
virtues
