Correct : A. are formal statements that describe what an organization expects of its employees.
2. Which of the following is NOT one of the primary elements of a strong organizational compliance program?
Correct : C. Significant financial expenditures
3. ______________ are standards of behaviour that groups expect of their members.
Correct : C. Group norms.
4. In a ______________ organization, decision making is delegated as far down the chain
of command as possible.
Correct : D. Centralized
5. ____________ refers to a strategic process involving stakeholder assessment to create long-term relationships with customers, while maintaining, supporting, and enhancing the natural environment.
Correct : B. Green marketing
6. The hand-of-government refers to the
Correct : B. role of corporations to be profitable within the law
7. An organisation's obligation to act to protect and improve society's welfare as well as
its own interests is referred to as
Correct : A. organisational social responsibility
8. The view that business exists at society's pleasure and businesses should meet public expectations of social responsibility is the
Correct : B. enlightened self-interest argument
9. Managerial ethics can be characterised by all of the following levels except
Correct : C. demoral management
10. Which of the following is not one the underlying principles of the corporate governance Combined Code of Practice?
Correct : D. acceptability
11. External audit of the accounts of a limited company is required
Correct : B. by the Companies Act 2006
12. Directors’ responsibilities are unlikely to include.
Correct : C. a duty to propose high dividends for shareholders
13. A company may become insolvent if it
Correct : D. cannot pay creditors in full after realisation of its assets
14. A director of a limited company may not be liable for wrongful trading if he or she
Correct : A. took every step to minimise the potential loss to creditors
15. Fraudulent trading may be
Correct : D. a civil and a criminal offence committed by any employee
16. Disqualification of directors may result from breaches under the
Correct : C. Companies Act 2006 and Insolvency Act 1986
17. Directors may not be disqualified for
Correct : D. being convicted of drunken driving
18. Which of the following actions will not help directors to protect themselves from noncompliance with their obligations and responsibilities?
Correct : D. including a disclaimer clause in their service contracts
19. Co-ording to Cadbury (2002), corporate governance is an issue of power and:
Correct : B. Accountability
20. The OECD argues that corporate governance problems arise because:
Correct : A. Ownership and control is separated
21. The Institute of Chartered Accountants in England and Wales considers argue that one particular stakeholder group should have primacy over all other groups. Which stakeholder group are they referring to?
Correct : C. Shareholders
22. An organization that is owned by shareholders but managed by agents on their behalf
is conventionally known as the modern:
Correct : B. Corporation
23. The modern corporation has four characteristics. These are limited liability, legal personality, centralized management and:
Correct : D. Transferability
24. What makes a corporation distinct from a partnership?
Correct : A. If the members of a corporation die, the corporation remains in existence providing it has capital
25. The term 'asymmetry of information' means information in a corporation is:
Correct : C. Not equally transparent to all stakeholders
26. The view that sees profit maximization as the main objective is known as:
Correct : C. Stakeholder theory
27. Where an organization takes into account the effect its strategic decisions have on society, this is known as:
Correct : D. Corporate social responsibility
28. Which intervention resulted from the Enron scandal?
Correct : B. The Sarbannes-Oxley Act
29. Executive pay in the UK was reviewed by:
Correct : A. The Greenbury Committee
30. In Japan, some corporations operate within the philosophy of 'kyosei'. The term 'kyosei' means:
Correct : C. Living and working for the common good
31. When managerial self-dealings are excessive and left unchecked,
Correct : D. all of the above
32. Corporate governance structure
Correct : A. varies a great deal across countries.
33. In a public company with diffused ownership, the board of directors is entrusted with
Correct : C. monitoring the management and safeguarding the interests of shareholders.
34. The key weakness of the public corporation is
Correct : C. conflicts of interest between managers and shareholders.
35. When company ownership is diffuse,
Correct : D. both a) and c) are correct
36. In many countries with concentrated ownership
Correct : B. the conflicts of interest are greater between large controlling shareholders and small outside shareholders than between managers and shareholders.
37. In what country do the three largest shareholders control, on average, about 60 percent of the shares of a public company?
Correct : D. Italy
38. The public corporation
Correct : D. all of the above
39. Periodic ethics audits
Correct : B. A method of fostering ethics
40. Political intrusion into business
Correct : A. May be desirable in some circumstances
41. The reach of codes is
Correct : A. Restricted to those obliged to conform by virtue of membership
42. East India Company
Correct : D. Largely set commercial and management practices for India
43. Quantification in ethics may be done by
Correct : C. Both A and B
44. When communicating a code of conduct
Correct : A. Focus on values that should guide decision making
45. The __________ approach to formal corporate ethics initiatives is proactive and
inspirational.
Correct : D. Values
46. The _________ approach to formal corporate ethics initiatives focuses on meeting required behavior norms or obeying the letter of the law
Correct : B. Compliance
47. Which of the following is associated with the classical view of social responsibility?
Correct : C. stockholder financial return
48. How many stages are in the model of an organization social responsibility progression?
Correct : B. 4
49. The belief that a firm pursuit of social goals would give them too much power is known as what argument in opposition to a firm being socially responsible?
Correct : D. too much power
50. Social obligation is the obligation of a business to meet its _______________.
Correct : B. economic and legal responsibilities
51. Under the concept of social obligation, the organization ________________.
Correct : C. does the minimum required by law
52. Social responsiveness refers to the capacity of a firm to adapt to changing _________________.
Correct : A. societal conditions
53. Applying social criteria to an investment decision refers to ________________.
Correct : D. social screening
54. Which of the following is a basic definition of ethics?
Correct : C. rules or principles that define right and wrong conduct
55. Reasoning at the ______________ level of moral development indicates that moral values reside in maintaining the conventional order and the expectations of others.
Correct : B. Conventional
56. A personality measure of person’s convictions is _______________.
Correct : B. ego strength
57. Which of the following organizational structural characteristics would most likely result in managerial ethical behavior?
Correct : B. formal rules
58. Global organizations must __________ their ethical guidelines so that employees know what is expected of them while working in a foreign location
Correct : A. Clarify
59. _____________ is a document that outlines principles for doing business globally in
the areas of human rights, labor, the environment, and anticorruption.
Correct : B. The Global Compact
60. A _____________ is a formal statement of an organization primary values and the
ethical rules it expects its employees to follow
Correct : C. code of ethics
61. CSR considers
Correct : A. Impact of the company’s actions on society.
62. CSR includes
Correct : A. Economic responsibilities.
63. Stakeholders are the individuals or groups that
Correct : A. Have an interest in and are affected by company’s actions.
64. Why, according to stakeholder theory, is it in companies' best interests to pay attention to their stakeholders?
Correct : D. If firms only act in their own self-interest and inflict harm on stakeholders then society might withdraw its support.
65. The ________ dimension of social responsibility refers to a business's societal contribution of time, money, and other resources.
Correct : B. Philanthropic
66. Better access to certain markets, differentiation of products, and the sale of pollution-control technology are ways in which better environmental performance can:
Correct : A. increase revenue
67. When a firm charges different prices to different groups of customers, it may be
accused of:
Correct : A. cultural relativism
68. The ability to interpret and adapt successfully to different national,
organizational, and professional cultures is called:
Correct : C. cultural intelligence.
69. In a ______________ organization, decision making is delegated as far down the chain of command as possible.
Correct : D. Centralized
70. An organisation's obligation to act to protect and improve society's welfare as well as its own interests is referred to as
Correct : A. organisational social responsibility
71. Which of the following actions will not help directors to protect themselves from non-compliance with their obligations and responsibilities?
Correct : D. including a disclaimer clause in their service contracts
72. An organization that is owned by shareholders but managed by agents on their behalf is conventionally known as the modern:
Correct : B. Corporation
73. The __________ approach to formal corporate ethics initiatives is proactive and inspirational.
Correct : D. Values
74. _____________ is a document that outlines principles for doing business globally in the areas of human rights, labor, the environment, and anticorruption.
Correct : B. The Global Compact
75. A _____________ is a formal statement of an organization primary values and the ethical rules it expects its employees to follow