Graded Homework

Multiple Choice Questions

1. The concept of Corporate Social
Responsibility originated in which time period?
a. 1920’s and 1930’s
b. 19th Century
c. 1980’s and 1990’s
d. 1960’s and 1970’s

2. Worldwide, about ___________ percent of
businesses in the private sector are small or medium
sized.
a. 80
b. 85
c. 90
d. 99

3. The generally accepted definition of a small
business is one with ____________ or fewer
employees.
a. 10
b. 20
c. 25
d. 50

4. The generally accepted definition of a medium
business is one with _____________ or fewer
employees.
a. 50
b.100
c. 200
d. 250

5. In the United States, small or medium sized
businesses provide over ___________ percent of
total employment.
a. 25
b. 40
c. 50
d. 75

6. Owners of stock in a corporation are only
liable for ____________.
a. the amount they have invested in the
company’s stock
b. their personal assets
c. the amount they have invested in the
company’s stock and their personal assets
d. none of the above.

7. A ____________ of an issue consists of
weighing and balancing all of the competing demands on
a firm by each of those who have a claim on it.
a. stakeholder analysis
b. board of directors analysis
c. corporation analysis
d. management analysis

8. The ____________ that corporations must meet
is “do no harm”.
a. moral obligation
b. moral minimum
c. moral requirement
d. moral duty

9. In large corporations, the ____________
is/are the legal overseers of management.
a. CEO
b. shareholders
c. board members
d. none of the above

10. The ____________ position is that a
corporation can and should be evaluated not only in terms of its financial bottom
line, but also in terms of its environmental bottom line and its social/ethical
bottom line.
a. Bottom line
b. Double Bottom line
c. Triple Bottom line
d. Final line

11. Triple Bottom Line reporting refers to:
a. using a low, medium and high estimates for
profitability forecasts.
b. measuring the impact of the firm on
stockholders, customers and employees.
c. measuring the social, environmental, and
financial performance of the firm.
d. measuring the impact of local, state, and
federal governments on the firm.

12. Corporate governance can be defined as:
a. the system used by firms to control the
actions of their employees.
b. the election process used to vote in a new
Board of Director.
c. the corporate compliance system used by the
firm.
d. the system used by firms to identify who the
critical stakeholders are for the firm.

13. The system that is used by firms to control
and direct their operations and the operations of
their employees is called:
a. Corporate Compliance.
b. Corporate Governance.
c. Corporate Control.
d. Corporate Directive.

14. Which board of directors committee is
responsible for the guidelines on how the board of
directors should operate.
a. Operating
b. Corporate governance
c. Corporate compliance
d. Guiding

15. The Sarbanes-Oxley Act was a direct response
to which ethics scandals?
a. Tyco
b. WorldCom
c. Enron
d. None of the above.

16. What is the name of the process in which an
employee informs another responsible employee
in the company about potentially unethical
behavior?
a. Whistle-blowing
b. Purging and releasing
c. Identification
d, Information transfer

17. There are ___________ conditions that, if
satisfied, change the moral status of whistle blowing.
a. three
b. four
c. five
d. six

18. An example of a
whistle blower whose actions were a form of internal government whistle
blowing is:
a. Sherron Watkins.
b. Coleen Rowley.
c. Cynthia Cooper.
d. Lee Iacocca.

19. One whistle blower the text mentions is
Cynthia Cooper who was the vice president of
internal audit at ____________.
a. Enron
b. WorldCom
c. Tyco
d. none of the above

20. One classic example of whistle-blowing is
the:
a. Ford Pinto case.
b. Lincoln case.
c. Toyota case.
d. none of the above.

21. A whistle-blower:
a. doesn’t have to be a past or present member
of the organization.
b. doesn’t have to report activity that is
illegal, immoral, or harmful.
c. is any employer who spreads gossip.
d. far from being disloyal, may be acting in the
best interest of the organization.

22. The Sarbanes-Oxley Act:
a. makes it easier to fire whistle blowers.
b. reduces the law’s protection of employees who
disclose securities fraud.
c. makes it illegal for executives to retaliate against
employees who report possible
violations of federal law.
d. provides penalties for blowing the whistle
illegitimately or maliciously.

23. Inside traders ordinarily defend their
actions by claiming that they don’t injure:
a. their boss.
b. their family.
c. the government.
d. anyone.

24. Shareholders have
the right to know all except:
a. Information on the management of the
corporation
b. Trade secrets
c. The companies financial position
d. The companies general plans for the future.

25. Which act provides
sweeping new legal protection for employees who report possible securities
fraud making it unlawful for companies to
“discharge, demote, suspend, threaten, harass, or in
any other manner discriminate against” them?
a. Sarbanes-Oxley Act of 2002
b. Foreign Corruption Act
c. Economic Espionage Act
d. U.S. vs. O’Hagan