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What led most directly to increased government involvement with regulating business and its dealings with society?


A) The Industrial Revolution
B) President Kennedy's consumer bill of rights
C) The collapse of the oil industry
D) The Great Depression
E) The end of World War I

F) D) and E)
G) B) and E)

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What are the two major problems that affirmative action programs have faced?


A) Quotas and lack of acceptance by some businesspeople
B) Unrealistic expectations and strict enforcement
C) Lack of enforcement and lack of acceptance
D) Reverse discrimination and lawsuits
E) Quotas and the EEOC

F) None of the above
G) C) and E)

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Whirlpool fails to provide an instruction manual with a certain type of new washing machine. Which basic consumer right does Whirlpool's action violate?


A) The right to convenience
B) The right to choose
C) The right to be heard
D) The right to safety
E) The right to courteous service

F) A) and E)
G) B) and D)

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What would proponents of the socioeconomic model argue to support their position?

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Proponents of the socioeconomic model, a...

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What specific area of business communications presents ethical questions by sometimes containing false and misleading messages for adults and especially children?


A) Press releases
B) Newspaper articles
C) Consumer Reports' rankings
D) Advertising
E) Audited financial reports

F) B) and D)
G) A) and B)

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HGR Chemical Company believes the environmental regulations for its industry are much more stringent than necessary, which likely means


A) they are impossible to comply with.
B) they will not improve the quality of the drinking water.
C) they are unfair to chemical plants.
D) they are too expensive to comply with.
E) HGR is not concerned with the environment.

F) A) and D)
G) B) and D)

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The human resources manager at Swingline, Inc., a manufacturer of office staplers, wants to encourage a more ethical climate in the organization. A likely way for Swingline to do this is to


A) make certain that Swingline has a company code of ethics that is enforced.
B) add an ethics department whose job is to constantly watch employees to be certain they behave.
C) develop a system of security cameras, telephone monitoring, and one-way mirrors to be certain that employees behave appropriately.
D) avoid any mention of ethics to employees so that they will not think unethical thoughts.
E) do none of the above. All of these practices are illegal because they take away an employee's constitutional right of free choice.

F) B) and E)
G) A) and E)

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What are the three major sets of factors believed to affect ethical behavior in an organization?

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The three major sets of factors believed...

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Define business ethics.

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Business ethics refers to the principles...

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The right to be heard implies that companies should listen to consumer complaints and


A) thank them for their time.
B) give them a full refund.
C) do whatever the consumer requests.
D) do nothing―just listening is enough.
E) take appropriate action.

F) A) and E)
G) C) and E)

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The federal agency charged with enforcing laws to protect the environment is the


A) National Environmental Commission.
B) Resource Recovery Alliance.
C) Pollution Control Committee.
D) Environmental Protection Agency.
E) Clean Air Agency.

F) A) and E)
G) None of the above

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Early government regulations prior to 1920 that affected American business include all of the following except the


A) Interstate Commerce Act.
B) Sherman Antitrust Act.
C) Federal Trade Commission Act.
D) Clayton Antitrust Act.
E) Sarbanes-Oxley Act.

F) B) and C)
G) A) and B)

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Metabo-Miracle offers a guaranteed weight loss of 10 pounds in one week without dieting or exercise. Thousands of customers purchase the products and about 200 call in with complaints that the product was ineffective. What action should Metabo-Miracle take?


A) It should immediately remove its products from the market, fully refund the thousands of customers' money, and close its business.
B) It should use persuasive techniques to get the 200 disappointed customers to try the product again each time it fails in order to decrease refunds.
C) It should explain to the customers that they misused the product and try to sell them more of the product.
D) It should discuss the product failure with the customers and then provide them with a full refund of their purchase price.
E) It should ignore the customers' complaints and hope they will tire of calling and writing letters.

F) B) and C)
G) All of the above

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Publix, a southeastern grocery store chain, has signs saying that tips are not accepted and employees are all informed of this policy. However, many of the baggers commonly accept tips from customers anyway and they often compare to see who makes the most. The factor affecting the ethical behavior of Publix's employees is


A) individual.
B) social.
C) opportunity.
D) demographic.
E) internal code.

F) A) and D)
G) A) and C)

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Which of the following is not one of the steps in developing and implementing a program of social responsibility?


A) Planning
B) The social audit
C) Commitment of employees
D) Appointment of a director
E) Commitment of top executives

F) B) and D)
G) A) and C)

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Define the doctrine of caveat emptor.

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The doctrine of caveat emptor is a legal...

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What is the major source of human emissions of air pollution in the upper atmosphere?


A) Aircraft
B) Automobiles
C) Acid rain
D) Volcanoes
E) Factories

F) A) and C)
G) B) and C)

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Excellent Air Inc. (EAI) Excellent Air Inc. is a well-known establishment in the airline business. It is currently one of the top firms in the industry. The company prides itself on good customer service and being concerned with the broader societal good. EAI management is concerned not only with doing things right, but also with doing the right things. Many of its decisions reflect this philosophy. Initially, the company had a problem with employees reporting their suspicions about unethical behavior to the press instead of to EAI management. As a result, the company made sure its employees knew the firm’s guidelines on fixing ethical issues. EAI also developed a code of conduct based on standards that continue to be upheld within the company. Since the code of conduct has been put in place, there have been much fewer ethical violations. Although employee salaries at EAI are not as high as those at competing firms, the company experiences very low employee turnover. The firm has created a corporate culture that not only makes its employees want to stay, but that also results in higher profits. If EAI can maintain the relationship it has built with its employees and customers, it will have little difficulty keeping up its remarkable success. -Refer to Excellent Air Inc. The principles that EAI chooses to pride itself on show that the company has


A) a moral minority.
B) cultural diversity.
C) social responsibility.
D) caveat emptor.
E) a social audit.

F) A) and B)
G) D) and E)

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An instruction pamphlet detailing steps for the care and use of a new electric appliance would fulfill which provisions of Kennedy's consumer bill of rights?


A) The right to safety and the right to be informed
B) The right to be instructed and the right to safety
C) The right to be aware and the right to choose
D) The right to choose and the right to vote
E) The right to be heard and the right to sue

F) B) and D)
G) A) and B)

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Excellent Air Inc. (EAI) Excellent Air Inc. is a well-known establishment in the airline business. It is currently one of the top firms in the industry. The company prides itself on good customer service and being concerned with the broader societal good. EAI management is concerned not only with doing things right, but also with doing the right things. Many of its decisions reflect this philosophy. Initially, the company had a problem with employees reporting their suspicions about unethical behavior to the press instead of to EAI management. As a result, the company made sure its employees knew the firm’s guidelines on fixing ethical issues. EAI also developed a code of conduct based on standards that continue to be upheld within the company. Since the code of conduct has been put in place, there have been much fewer ethical violations. Although employee salaries at EAI are not as high as those at competing firms, the company experiences very low employee turnover. The firm has created a corporate culture that not only makes its employees want to stay, but that also results in higher profits. If EAI can maintain the relationship it has built with its employees and customers, it will have little difficulty keeping up its remarkable success. -Refer to Excellent Air Inc. Since the company created its code of conduct, employees have limited ____, or amount of freedom to perform an unethical act.


A) time
B) responsibility
C) moral dilemmas
D) unethical options
E) opportunity

F) B) and D)
G) B) and E)

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