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MGMT 487 Multiple Choice Questions
Terms in this set (75)
An employee who discovers a coworker is embezzling from the company is faced with the question, "What do I do?" This situation is an example of the __________ level of decision-making.
What is the role of the individual in organizational decision making?
The individual acts on behalf of the organization.
A recent study reveals that African Americans earn 58 percent of the salary of their white counterparts. This issue is best examined at the _______ level of decision making.
Who is commonly seen as responsible for regulating the activities of companies?
Aidan experiences great pleasure from the new video game he has just purchased. This situation is an example of economic
According to Adam Smith, what is the relationship between capitalism and society?
Capitalism contributes to a healthy society.
At HealthyYou Pharmaceuticals, the CEO, Mark Smith, takes credit for the development of a new drug designed to treat stroke victims. While upset, the actual developer, Dr. Lindstrom, feels like she has no legal options for redress. This situation is an example of which ethical consideration?
The law is inappropriate for regulating certain aspects of business activity.
What is a key difference between ethical management and the management of ethics?
Ethical management involves a manager doing the right thing, while the management of ethics involves acting effectively in situations that involve ethics.
Why do managers who work in global organizations need intensive training to ensure ethical decision making?
Countries vary greatly in terms of ethics, laws, and regulations.
Consumers, managers, purchasing agents, and auditors are all examples of
The CEO of PepsU-UP Cola decides to create a high school internship program to help increase the graduation rates of the local vocational school. This decision is an example of which role of managers?
Managers as community leaders
What is true about a great deal of business decision making in organizations?
It is a collaborative effort
Sam is a new employee at an auditing firm who has been told to round up certain figures. When he questions the order, he is told to just do as he is told. This situation is an example of an employee
lacking strong guidance.
Jose, who has excellent computer skills, finds a way for his small company to conceal some profits from the government, thus saving thousands of dollars in taxes. He is certain that his computer program will avoid any auditing. This situation is an example of which rationalization?
A belief that the activity is "safe" because it will never be found out or publicized
A news report reveals that a particular laptop computer model is overheating and has caused fires in at least 50 homes. The sales representatives for the laptops claim no knowledge of the defect, as they assumed that the developers had created safe products. The developers claim they had no knowledge of the defect, and that the problem probably came from a hardware malfunction over which they had no control. In the end, the CEO takes responsibility and the company recalls the laptops. This situation is an example of which feature of organizational decision making?
The fragmentation of responsibility when people focus on their own task
What are decisions in a market primarily based upon?
Suzanne buys a textbook over the Internet. She sends payment, but the book never arrives. This situation is an example of
Breach of Contract
What is a key similarity between the element of harm and the element of reliance when considering fraud?
Both are relevant to possible compensation.
______ law is the law of wrongful harms.
Which of the following is an example of a negative externality?
Sam drives an SUV that gets 8 miles to the gallon, and because gas prices are low, he drives more than he used to.
An Internet start-up company hires a public relations firm to help build its image and attract investors. The public relations firm is known as a(n)
Mr. Schmitz is an attorney for GamersRUs, a gaming company. He learns that a competitor is about to release a similar game to GamersRUs's top seller, but keeps quiet about it. This situation is an example of violating which element of fiduciary duty?
What is the relationship between individuals and firms in terms of market ethics?
Both individuals and firms have a responsibility to act ethically in markets.
What was the primary outcome of Dartmouth College v. Woodward?
Corporations were recognized as legal persons.
Ms. Patel, the owner of a local toy store, encourages her employees to volunteer their time at community organizations. From a sociological perspective, Ms. Patel is exemplifying a good organizational
What are the key elements of the moral point of view?
The willingness to seek out and act on reasons, and also act impartially
What can be inferred from the moral feature of impartiality?
Everyone's interests deserve consideration.
Despite being late to her job as an emergency room nurse, Lucinda refuses to speed and follows all of the traffic rules. She knows people are counting on her at work, but she believes the law is more important. This situation is an example of which of Kohlberg's levels of development?
Luis is a human resources manager who has been tasked with laying off 15 people. He is very stressed about it, and tries to pick people he knows will be the least affected by losing their jobs. This situation is an example of which value in ethical reasoning?
Diane discovers that she is turned down for a job because she is African American. This situation is a violation of which value in ethical reasoning?
Nondisclosure and noncompetition agreements are two documents designed to protect
Faced with a lawsuit, Shannon retains an attorney to represent her. She reveals important information to her attorney, knowing that the information is safe because the attorney has a
duty of confidentiality.
Which of the following is an example of an ethical way a company can protect confidential information?
At ABC Tech, each team involved in developing a new cell phone is provided only with the information required for its task.
For which person could a noncompete agreement be justified?
Trina, a high-level executive
Why do noncompetition agreements require justification?
They limit employment options.
Patents, trade secrets, and copyrights are examples of _______ property.
Peps-U-UP Cola Company creates a secret recipe for a new soft drink that is clear, yet caffeinated. Identifying this recipe as ________ distinguishes it from all other kinds of proprietary information.
Marcus is a food developer for Tacos, Taco! At work, he comes up with a creative new taco using potato chips as the shell. He tests the product out with some friends, who declare it a hit. Marcus sells the product concept to a competitor for a great deal of money, but then Tacos, Taco! files a lawsuit against Marcus. What is the basis for the lawsuit?
Stacey, a chemist, changes employment from Timbuktu Glass to Shine Glass. She suggests Shine Glass use a chemical composition for glass that improves on one she learned while working at Timbuktu Glass. Which argument for trade secret protection could Stacey use to defend this action?
What is the key distinction between ethical and unethical competitor intelligence gathering?
The method used to gather the information
Both Enron's executives and Arthur Andersen's executives had partnerships that introduced problems with
Conflict of interest
Stephan is accepting bids from contractors to build a new office building for his firm. He chooses the bid from his friend, Pete, who agrees to give Stephan a percentage of the bid. This situation is an example of
Conflict of interest
Luis is an attorney. Diana approaches him to represent her during a difficult divorce. Luis discovers that Diana's soon-to-be ex-husband is a member of his bowling team. This situation is an example of a(n) ________ conflict of interest.
Which method of managing conflict of interest relies upon the concept of transparency, or openness of information?
Lucy is a full-time instructor at the local community college. She needs money, so she agrees to also teach a class on the same subject for another college in the area. This situation is an example of which kind of conflict of interest?
What are the two main sources of challenges to privacy?
Business and Government
What is a key similarity between privacy in the workplace and privacy in the marketplace?
Both are challenged by the use of surveillance cameras to monitor behaviors.
What ultimately led the U.S. Supreme Court to recognize privacy as a constitutionally protected right?
A court case to prevent government interference with contraception
What is a key difference between defining privacy as the right to keep undocumented personal information unknown and the other two definitions: the right to control access to personal information and right to be left alone
The other two definitions confuse privacy with other values.
Martha is terminated from her job when her drug test comes back positive for marijuana. She argues that she is innocent and demands to see the drug test results, but the employer refuses. Martha's lack of access is a reflection of which theoretical argument for the right to privacy?
Utilitarian examples of possible harms
Enrique's employer offers a discount on its health insurance plan if he has a healthy body mass index (BMI), healthy cholesterol levels, and does not smoke. This situation is an example of
justifying monitoring to control the costs of doing business.
Cade is upset about his pay raise and posts complaints on Facebook. His employer learns about his complaints and terminates him. Is this legal, and why?
No, because Cade is protected by the National Labor Relations Act, which protects employee discussion of compensation.
When is an invasion of employee privacy justified concerning employee records?
When the information is used for the intended purpose
Mark wants to move into a particular building, but the landlord wants more information before offering a lease. The landlord contacts Mark's employer to ask for information from his personnel file. What should the employer do, and why?
Refuse to provide the information because it is only for employer-employee purposes.
What is a key similarity between polygraph testing and constant monitoring?
They both reveal unnecessary information.
Stavros creates an algorithm that can track women's buying history and predict when they are pregnant. Companies that specialize in maternity and baby gear are eager to purchase Stavros's invention. His algorithm is an example of
big data analytics.
Big data technology used to mine existing data and uncover new information without the knowledge of those most directly affected is criticized because those most directly affected
are not aware of it.
Which of the following plays the most important role in the collection and use of information through the Internet?
Site content providers
Lessig identifies two problems unique to computers and the Internet: confining profiles of individuals and the threat the collected information poses to equality. What is another key similarity between these problems?
Neither problem directly involves issues of privacy.
What two elements are needed for a business decision to be considered an instance of discrimination?
It involves personnel decisions and results from prejudice.
What is the difference between disparate treatment and disparate impact?
Disparate treatment is explicit, whereas disparate impact is neutral on its face.
Playtime Toys has a policy that gives hiring preference to married people; the owner says these employees are easier to manage than single people. Is this policy legal? Why or why not?
Yes, because Title VII allows for marriage preference in hiring if it does not distinguish between men and women.
Surveys by both Redbook and Harvard Business Review suggest that sexual harassment is about
Eleanor is offered a promotion, but only if she agrees to go out on a date with the owner of the company. This situation is an example of
quid pro quo harassment.
A pornographic calendar displayed in the breakroom of a company whose manager refuses to remove it is an example of a
hostile work environment.
Fuji Technologies has a history of choosing to hire only white males. As a result, its productivity is lower than that of its competitors that hire the most qualified individuals. This situation is an example of the ________ argument against discrimination.
Which type of objection to discrimination is based on the idea that it is wrong and against human dignity?
Sandra takes over the furniture business when her grandfather retires, and institutes a training program to ensure that all people have a fair chance of being hired. She argues that race and gender are completely irrelevant to working at her store. Sandra's view is an example of the _________ argument against discrimination.
principles of justice
What must be done to ensure that the best candidate is chosen for a job?
When Jon applies to be a typist for book publisher, he is required to take a typing test to measure his speed and accuracy. This situation is an example of a(n) ________ test.
In its employee handbook, DragonFlyBooks defines sexual harassment and its commitment to prevent it. It also directs people to speak with the Human Resources manager if a complaint needs to be filed. This situation is an example of which step of developing a sexual harassment prevention program?
Creating a sexual harassment policy
What is the goal of affirmative action?
To take active steps to ensure a balanced workforce
Margaret is a proponent of affirmative action. She argues that since minority groups have been held back in society, they are owed a bigger chance at opportunities than majority groups. Margaret's position that justice is due to these minority groups is an example of the ________ argument.
What is a key difference between the compensation argument and the utilitarian argument for affirmative action?
The compensation argument posits that affirmative action is morally required, while the utilitarian argument posits that affirmative action is morally permitted.
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