BUSINESS ETHICS EXAM 4

A prime social responsibility of business is to safeguard consumers:
While continuing to supply them with goods and services they want.
A goal of the consumer movement is to make consumer power:
An effective counterbalance to the rights and powers of firms that sell goods and services.
The act that requires lenders to inform borrowers of the annual rate of interest to be charged, plus related fees and services charges is called:
The Truth in Lending Act.
In the United States, which of the following agencies enforces the laws prohibiting deceptive advertising?
Federal Trade Commission.
The law requiring that toys and infant products be tested before sale is called the:
Consumer Product Safety Improvement Act.
Manufacturers making false or misleading claims about a competitor’s product is:
Illegal and unethical.
The main responsibility of the National Highway Traffic Safety Administration is to:
Set motor vehicle safety standards.
Under what legal doctrine does a firm bear legal responsibility for injuries caused by something it made or sold, whether or not it was negligent or breached a warranty?
Strict liability.
Under proposals to establish uniform federal standards for determining liability:
Companies would not have to go through repeated trials on the same charges in different states.
One alternative to product liability lawsuits is called:
Alternative dispute resolution.
Employees in the United States have a legal right to:
Both A and B, but not C.
Where are workers not permitted to form independent unions?
Both B and C, but not A.
During the 1930s, many workers in the United States joined unions, and the ranks of organized labor grew rapidly. This historical period was called:
The New Deal.
According to the US Department of Labor:
Both A and C, not B.
Which of the following led to significant corporate restructuring and downsizing?
Both A and B, but not C.
A reason for an increase in employee monitoring does not include:
To reduce the employer’s health insurance premiums.
Which of the following is not an argument favoring employee drug testing?
It is an intrusion on individual privacy.
The Sarbanes-Oxley Act makes it illegal for employers to:
Retaliate against whistle-blowers who report information that could have an impact on the value of a company’s shares.
Which law allows individuals who sue federal contractors for fraud to receive up to 30 percent of any amount recovered by the government?
U.S. False Claims Act (as amended in 1986).
Universal rules establishing a common set of labor standards worldwide are called:
Fair labor standards
Age, ethnicity, gender, mental or physical abilities, race, and sexual orientation are what dimensions of diversity?
Primary
By 2020, the Bureau of Labor Statistics estimates that what percentage of all workers will be women?
47 percent
The growing diversity in the U.S. workforce is due to:
All of the above
Women have entered the workforce:
All of the above
A study by Catalyst found that companies with three or more female directors had:
Significantly higher returns on equity than those with no female directors.
“Glass walls” refers to:
Fewer opportunities to move sideways into jobs that lead to the top.
The Equal Employment Opportunity Commission was created in:
1964
Racial harassment is illegal under:
Title VII of the Civil Rights Act.
Which of the following is not a benefit of managing diversity effectively?
These businesses get tax breaks from the federal government.
When a mother or father is granted time off when children are born or adopted and during the early months of a child’s development, this is called:
Parental leave
Business depends on the community for:
All of the above
Which of the following statements is true about the relationship between business and the community?
It is one of mutual interdependence.
Which of the following is a good way for a business to express its commitment to corporate citizenship?
All of the above.
Which of the following is a reason for businesses to get involved in the community?
All of the above
Which of the following statements is true about community relations?
About 80 percent of companies factor community involvement into their overall strategic plan.
What is the most important social issue facing communities, according to a survey of community relations managers?
education
As communications improve and people around the world are able to witness the horrors of natural disasters, terrorism, and war, international relief efforts by corporations are becoming:
More important
Another term for corporate giving is corporate:
philanthropy
How do companies encourage their employees to volunteer their time?
All of the above
The term civic engagement describes:
The active involvement of businesses and individuals in improving communities.