BUS-115 Introduction to BusinessChapter 2 – Being Ethical and Socially Responsible25-pointsSelect the ONE best answer and record it on a Scantron answer sheetFor True and False questions, True=A and False=BTextbook and Lecture Questions1. The application of moral standards to business decisions and activities is calleda. regulatory action.b. social responsibility.c. affirmative action.d. business ethics.e. good business.2. Senator Theodore E. Korupt owns several large buildings in Casper, Wyoming. The Senator has recently proposed a bill to Congress that would move the nation's capital from Washington, D.C., to Casper. The bill also requires the government to lease all of the office space in his buildings for the next century. Senator Korupt's sponsorship of a law that would monetarily benefit him would beconsidered a(n)a. conflict of interest.b. ethical challenge.c. financial windfall.d. privilege of his position.e. ethical responsibility.3. True or False? Cultural norms and social factors have very little influence on a person's ethical behavior.4. At Barry's Burgers, the french fries are counted in when received, inventory is adjusted after each sale, and every spoiled fry is logged in the French Fry Journal. Barry felt he needed the extra procedures because employees were taking advantage of him and eating all of his french fry inventory. The strict accounting procedures for the french fries are designed to decrease the _____________ for employees to be unethical.a. needb. individual factorc. social factorsd. conflict of intereste. opportunityPage 1 of 55. You "blow the whistle," you area. engaging in a common form of noise pollution.b. deciding to ignore unethical practices in your firm.c. agreeing to conform to your firm's code of ethics.d. accepting bribes when doing business in other countries.e. informing the press or government officials about unethical behavior in your firm.6. Which of these does NOT describe business conditions in the early twentieth century?a. The average workweek was in excess of 60 hours.b. Government was regularly involved in day-to-day business activities.c. Industrial accidents were the rule rather than the exception.d. Workers organized labor unions in an effort to improve working conditions.e. Businesses were seldom held legally accountable for their actions.7. The Interstate Commerce Acta. regulated railroads and shipping rates.b. mandated meat inspection.c. eliminated price discrimination.d. established a commission to investigate illegal trade.e. attempted to prevent monopolies or mergers.8. Which statement best describes a company that has adopted the socioeconomic model of social responsibility?a. The company's main objective is to earn profits.b. The company emphasizes production over the quality of life.c. The company uses its resources to help resolve social issues.d. The company is unaffected by government intervention.e. The company leaves social issues to elected officials.9. Each of these is one of the six basic rights of consumers EXCEPT the right toa. voice complaints about products or companies and to be heard.b. complete information about a product.c. choose among competing products.d. clean land, air, and water.e. safe, reliable products.10.The purpose of an affirmative action program is toa. enforce laws designed to protect the environment.b. increase the number of minority employees at all levels within an organization.c. bring suit against firms that practice employment discrimination.d. train workers with little education and a long history of unemployment.e. force businesses that make defective products to take corrective actions.Page 2 of 511.Which of these subject areas would NOT be covered in a firm's social audit?a. Pollution control effortsb. Community involvementc. Product safetyd. Expense accountse. Hiring practices12.An employee’s decision to inform the press or government officials of his or her firm’s unethical practices is referred to asa. whistle-blowing.b. the corporate code of ethics.c. business ethics.d. the grapevine.e. tattling.13.One factor that influences ethical decision making is the __________ factor.a. businessb. consumerc. marketingd. opportunitye. Internal14.A guide to acceptable and ethical behavior is known as a. a code of ethics.b. business ethics.c. a social audit.d. consumerism.e. an ethical behavior guide.15.A government agency with the power to investigate complaints of discrimination and to sue firms that practice discrimination is thea. National Alliance of Business.b. Equal Employment Opportunity Commission.c. NAACP.d. Federal Trade Commission.e. Interstate Commerce Commission.16.A plan designed to increase the number of minority employees at all levels within an organization is calleda. the hard-core unemployed.b. an affirmative action program.c. the Equal Employment Opportunity Commission.d. the socioeconomic initiative.e. the right to work.17.True or False? In the early days, employees joined labor unions in an effort to improve working conditions.Page 3 of 518.True or False? Until the 1930s, most abuses were left for competition and marketactivities to correct.19.True or False? The economic model of social responsibility is being used when emphasis is placed on how business decisions affect society.Questions from Web-Readings20.Which of the following statements about China’s Next Boom Could be the Foul Air is FALSE?a. A top Chinese environmental official estimates that China’s pollution levelscould quadruple (4x) in the next 15-years.b. China is the world’s largest producer of CO2 (carbon dioxide), the major green house gas.c. About 400,000 people die prematurely in China each year due to diseaseslinked to air pollution.d. Almost 25% of Los Angeles’ particulate matter (air pollution) is thought to come from China.e. A ‘Green GDP’ law taking effect next year will require that China produce 10 percent of its energy from renewable sources by 202021.Which of the following statements is FALSE?a. Finland’s economy is ranked the most competitive in the world.b. Finland has best educated citizenry of all the industrialized countries.c. University education is free in Finland.d. Finland provides free universal health care. e. Finland is the world’s best example of a purely capitalistic country.22.Which of the following statements is TRUE?a. Finland’s income tax rates are lower than in the United States.b. The Finnish mindset is very