1. Week 4 Quiz
Question 1
The main drawback to utilitarian reasoning is that:
The majority may override the rights of those in the minority.
Managers using this reasoning process often fail to consider the means taken to reach the
end.
It is difficulty to accurately measure both costs and benefits.
Cost-benefit calculations can only be provided by accountants.
Question 2
Under the U.S. Corporate Sentencing Guidelines, if a firm has developed a strong ethics program,
corporate executives found guilty of criminal activity may have their sentence:
Increased.
Reduced.
Unaffected.
Decided by the company.
Question 3
The Sarbanes-Oxley Act:
Forces firms with inaccurate financial reporting into Chapter 11 bankruptcy.
Does not hold auditing firms liable for their client's inaccurate account reporting.
Requires executives to pay back bonuses based on earnings that are later proved
fraudulent.
Allows an auditing firm from providing the same client with non-auditing services.

2. Question 4
As an additional employee benefit to promote spirituality, companies have begun to provide employees
with the services of:
Philosophers.
Chaplains.
Financial advisors.
Ombudspersons.
Question 5
People everywhere depend on ethical systems to tell them whether their actions are:
Legal or illegal.
Right or wrong.
Financially attainable or not.
Logical and reasonable judgment.
Question 6
A bottom-line mentality in business is reflected in which statement?
"I want it."
"We have to beat the others at all costs."
"Help yourself and those closest to you."
"Foreigners have a funny notion of what's right and wrong."

3. Question 7
What percentage of American CEOs in a 2008 said that the Sarbanes-Oxley Act had done nothing to
improve ethical standards at their businesses?
12%
33%
55%
74%
Question 8
All of the following values are present in most ethical decisions except:
Be fair and just.
Be respectful.
Act responsibly.
Be honest.
Question 9
Business executives are finding that a trusting, ethical relationship with a business partner is:
Best left to not-for-profit companies.
Too costly to maintain.
Likely to cause legal problems.
Often essential in conducting business.

4. Question 10
Which of the following examples best illustrate an ethics issue based on cross-cultural contradictions?
Legally marketing a pesticide abroad that has been banned in the U.S.
Circumventing government regulations to ensure company profits.
Hiring child workers in violation of civil law.
False and misleading advertising claims.
Question 11
According to a 2009 opinion poll, Americans hold a dim view of:
Organized labor.
The Supreme Court.
Churches.
Wall Street executives.
Question 12
According to the utilitarian reasoning, if the benefits outweigh the costs, then the action is ethical
because it produces:
The greatest good for the greatest number of people.
An equal amount of good for an equal number of people.
The greatest good for a select number of people.
An equal amount of good for the greatest number of people.

5. Question 13
As business becomes increasingly global:
It must turn to national laws for guidance.
Ethical issues become issues of free trade.
A global code of conduct will emerge for businesses.
Cross-cultural contradictions will increase.
Question 14
At the core of rights reasoning is the belief that:
The company's right to a profit must be protected.
Respecting others is the essence of human rights.
The right to join a union is no longer universally accepted.
Economic and political powers determine who is right.
Question 15
Which statement characterizes the moral reasoning typically found in a child?
"When in Rome, do as the Romans do."
"I'll scratch your back, if you'll scratch mine."
"Seek the greatest good for the greatest number."
"Respect the rights of others."

6. Question 16
Building ethical safeguards into a company's everyday routines is called:
Change management.
Justifying ethics.
Institutionalizing ethics.
Ethical awareness.
Question 17
By law, the financial records of publicly held companies are required to be:
Managed by an accounting department of at least 5 CPAs.
Summarized in the employee manual for new hires.
Reviewed quarterly by the IRS.
Audited by a certified professional accounting firm.
Question 18
Which of the following is not an example of an ethical criterion?
Egoism.
Concern for others.
Principle.
Corporate driven.

7. Question 19
Which of the following is not a typical use of an ethics reporting mechanism?
To provide interpretations of proper ethical behavior involving conflicts of interest and the
appropriateness of gift giving.
To give employees an opportunity to discuss the appropriate rating on their annual
performance reviews without management's influence.
To create an avenue to make known to the proper authorities allegations of unethical
conduct.
To give employees and other corporate stakeholders a way to discover general information
about a wide range of work-related topics.
Question 20
If a manger approaches ethics with benevolence in mind, he or she would stress what?
Friendly relations with an employee.
Company rules and procedures.
Laws and professional codes.
Economic efficiency.
Question 21
Integrity-based ethics programs:
Seek to avoid legal sanctions.
Combines concern for the law with an emphasis on employee responsibility.
Threatens employees with punishment for non-compliance with the ethics program.
Are predominately implemented within the European Union.

8. Question 22
Which financial institution asked Wall Street finance companies to self-regulate?
The Federal Reserve Board.
Nasdaq.
The New York Stock Exchange.
The London Stock Exchange.
Question 23
Which ethical criterion is described by the idea that a company should strive for efficiency?
Egoism.
Benevolence.
Principle.
Business-centered.
Question 24
If a manager approaches ethical issues with a self-centered approach, emphasis will be on:
Integrity.
Social relationship.
Economic efficiency.
Laws.

9. Question 25
Which of the following is not an example of a white-collar crime?
Embezzlement.
Check fraud.
Theft.
Money laundering.
Question 26
A company that channels employee behavior in a lawful direction by emphasizing the threat of
detection and punishment is:
Operating under the compliance-based approach.
Practicing "tone at the top."
Operating under the integrity-based approach.
Operating under the instrumental policy approach.
Question 27
The unspoken understanding among employees of what is and is not acceptable behavior is called:
Ethical climate.
Efficiency.
Success.
Rites and rituals.

10. Question 28
One of the most widespread and potentially powerful efforts to combat bribery was initiated by:
The Global Forum on Fighting Corruption.
The Organization for Economic Cooperation and Development.
International Labour Organization.
The U.S. Foreign Corrupt Policy Act.
Question 29
Which of the following organization's code of ethics advocates "loyalty to your organization, justice to
those whom you deal and faith in your profession?"
Institute for Supply Management.
Institute of Certified Public Accountants.
Financial Accounting Standards Board.
Association for Computing Machinery.
Question 30
An ethics or compliance officer is generally entrusted to:
Act as a liaison between the company and the Securities and Exchange Commission.
Reduce the risks to the company of employee misconduct.
Distribute copies of the company's code of ethics to all interested stakeholders.
Arrange for ethics training for employees at a nearby university.