True/False Questions - Chapter 1

	1.	A stakeholder is defined by anyone who owns a piece, or stake, of the company 
	A)	True
	B)	False

	2.	AT&T has been called the “template for 21st century capitalism.” 
	A)	True
	B)	False
	
3.	General Systems theory was first introduced in the 1940s. 
	A)	True
	B)	False

	4.	The instrumental argument in the stakeholder theory says that companies perform better if they consider the rights and concerns of multiple groups in society. 
	A)	True
	B)	False

	5.	A fiduciary exercises power for the good of another 
	A)	True
	B)	False

	6.	Because they are more important, market stakeholders are sometimes called primary stakeholders. 
	A)	True
	B)	False

	7.	Stakeholders can exercise direct political power by urging elected officials to pass legislation. 
	A)	True
	B)	False

	8.	Each stakeholder group has one source of power in relation to a firm. 
	A)	True
	B)	False

	9.	In 2000, the Peruvian government listened to stakeholders and cancelled plans for a salt mine off the Pacific Coast.		
	A)	True
	B)	False

	10.	In order to develop a stakeholder map, managers should consider, in order, urgency, legitimacy and saliency.
	A)	True
	B)	False

	11.	Creditors generally have high stakeholder salience and little concern over a company’s position on an issue. 
	A)	True
	B)	False

	12.	The world economy is increasingly interactive
	A)	True
	B)	False

	13.	Over the last 30 years, Government has consistently tightened business regulations
	A)	True
	B)	False

	14.	In 2007, The Walt Disney Company earned slightly less than $27 billion dollars.  
	A)	True
	B)	False

	15.	Affordable housing is difficult to find around Disneyland for many of the park’s employees
	A)	True
	B)	False


Multiple Choice Questions

	16.	What movie featured a former Miss America speaking out against Walmart. 
	A)	One born every minute.   
	B)	Walmart: The High Cost of low prices 
	C)	Walmart Nation. 
	D)	None of the above. 

	17.	In 2008. Lee Scott was the CEO of  
	A)	Walmart
	B)	Target 
	C)	Dell 
	D)	Sun 

	18.	Ownership theory of the firm is also called 			. 
	A)	Shareholder theory 
	B)	Property theory 
	C)	Expansive theory 
	D)	Brick and mortar theory

	19.	Which of the following statements is not true about the interactive social system? 
	A)	Business and society need, as well as influence, each other. 
	B)	The boundary line between business and society is clear and distinct. 
	C)	Business is a part of society, and society penetrates far and often into the business. 
	D)	Business and society are both separate and connected. 

	20.	A firm subscribing to the ownership theory, would be concerned with providing value for its: 
	A)	Shareholders. 
	B)	Customers. 
	C)	Board of Directors. 
	D)	Community. 

	21.	Corporations who model their operations according to the stakeholder theory create value by: 
	A)	Innovating new products. 
	B)	Increasing their stock price. 
	C)	Developing their employees' professional skills. 
	D)	All of the above. 

	22.	The 			 argument says that stakeholder view is simply a more realistic description of how companies work.
	A)	Descriptive 
	B)	Instrumental 
	C)	Normative 
	D)	Fiduciary 

	23.	The instrumental argument says stakeholder management is: 
	A)	A more realistic description of how companies really work. 
	B)	More effective as a corporate strategy. 
	C)	Simply the right thing to do. 
	D)	Determined by the amount of stock owned in the firm. 

	24.	Under U.S. law, the fiduciary duty of managers must benefit a firm's 
	A)	Stockholders. 
	B)	Customers. 
	C)	Employees. 
	D)	All of the above. 

	25.	Stakeholder groups can include: 
	A)	Stockholders. 
	B)	The Media. 
	C)	Environmental activists. 
	D)	All of the above. 

	26.	Which of the following statements most accurately describes a firm's responsibility to market stakeholders? 
	A)	It is a relationship with political and cultural influences. 
	B)	It must provide stakeholders with goods and services. 
	C)	It is more important to the survival of business than nonmarket relationships. 
	D)	It mostly occurs at a broad conceptual level. 

	27.	Which of the following is not considered to be a nonmarket stakeholder? 
	A)	Government agencies. 
	B)	The natural environment. 
	C)	Activist groups. 
	D)	Nongovermental organizations. 

	28.	A stakeholder analysis: 
	A)	Creates equality among all stakeholder interests. 
	B)	Allows managers to review media coverage on the company.
	C)	Involves understanding the nature of stakeholder interests. 
	D)	All of the above. 

	29.	The four types of stakeholders' power recognized by most experts are: 
	A)	Voting, economic, political, and legal power. 
	B)	Social, legal, environmental, and political power. 
	C)	Social, regulatory, voting, and media power. 
	D)	Economic, media, legal, and political power. 

	30.	Which of the following statements is (are) correct about stakeholder' power? 
	A)	Different stakeholders have different types and degrees of power. 
	B)	Stockholders' power is limited to the percentage of voting stock owned by the stockholder. 
	C)	It uses resources to achieve a desired decision or outcome. 
	D)	All of the above. 

	31.	Customers can exercise economic stakeholder power by: 
	A)	Voting on a proposed merger for the company and a competitor. 
	B)	Boycotting products if they believe the goods are too expensive. 
	C)	Attending the company's annual meeting. 
	D)	Applying for a job with the company. 

	32.	Which of the following is not an example of stakeholders' economic power? 
	A)	A toy manufacturer halts supplies to a distributor asking higher than fair prices. 
	B)	A social group protests a government's decision to raise taxes. 
	C)	A local community boycotts a grocery store suspected of inaccurate weight scales. 
	D)	A social organization demands the closure of a store that has a discriminatory hiring policy. 

	33.	When a customer sues a company for physical and mental hard caused by unsafe toxic chemicals disposal, it is an exercise of a stakeholders': 
	A)	Political power. 
	B)	Legal power. 
	C)	Economic power. 
	D)	Media power. 

	34.	What stakeholder group(s) can exercise legal power? 
	A)	Employees. 
	B)	Customers. 
	C)	Shareholders 
	D)	All of the above. 

	35.	What kind of power might the local community use to influence a company's decisions? 
	A)	Publicizing an issue. 
	B)	Lobbying government for regulation. 
	C)	Challenging whether a business activity should continue to operate. 
	D)	All of the above. 

	36.	Stakeholders have been able to form international coalitions more successfully through use of: 
	A)	Government regulation. 
	B)	Community involvement. 
	C)	Communications technology. 
	D)	Unions. 

	37.	When something stands out and is seen as important it is defined as   
	A)	Normative
	B)	Salient
	C)	Urgent
	D)	Legitimate 

	38.	Proactive companies anticipate stakeholder concerns by: 
	A)	Forming specialized departments to handle the needs of stakeholders. 
	B)	Responding to concerns when a crisis occurs. 
	C)	Signing contracts with stakeholder groups to avoid potential lawsuits. 
	D)	A and B, but not C. 

	39.			 are departments within an organization which which reach across dividing lines which separate the company from society. 
	A)	Human Resources
	B)	Harmonization departments
	C)	International lobbying guilds 
	D)	Boundary-spanning departments

	40.	A stakeholder map is: 
	A)	 A graphic representation of the relationship of stakeholder salience on an issue.
	B)	Developed to deal with issues once a company has hit “crisis mode”. 
	C)	Used to split negative stakeholders on salient issues. 
	D)	All of the above. 

	41.	Per the textbook, which of the following does not shape the business and societal relationship: 
	A)	Globalization.
	B)	Technology. 
	C)	Changing societal expectations.
	D)	All of the above shape the business and societal relationship. 

	
42.	Organized labor, church groups and community groups all opposed the following:
	A)	A Walmart in Inglewood. 
	B)	A Nike plant in La Paz
	C)	A bull fighting ring in Tempe. 
	D)	Legalized, unlicensed prostitution in Key West. 


True/False Questions Chapter 2

	1.	A public issue exists when there is agreement between the stakeholders' expectations of what an institution should do and the actual performance of those businesses. 
	A)	True
	B)	False

	2.	Managing public issues is a challenging task for managers. 
	A)	True
	B)	False

	3.	Emerging public issues are both a risk and an opportunity.
	A)	True
	B)	False

	4.	Monsanto’s modified foods were well accepted in the United States, but not in Europe. 
	A)	True
	B)	False

	5.	In 2009, Toyota sold its one millionth Prius
	A)	True
	B)	False

	6.	Privacy laws are more stringent in the U.S. than the U.K. 
	A)	True				
	B)	False

	7.	The Gallup corporation tracks the opinions of top business executives from around the world. 
	A)	True
	B)	False

	8.	Environmental analysis is a method managers use to gather information about internal issues and trends.
	A)	True
	B)	False

	9.	The Internet has enabled the growth of stakeholder organizations. 
	A)	True
	B)	False

	10.	The first step in the issue management process is to identify the issue 
	A)	True
	B)	False

	11.	McDonald’s was only able to resolve their differences with PETA regarding slaughterhouses by filing an expensive lawsuit. 
	A)	True
	B)	False

	12.	Tony Jacque believes that companies underemphasize creative problem solving. 
	A)	True
	B)	False

	13.	Issue management is a structured and systematic process to aid organizations in identifying, monitoring, and selecting public issues that warrant organizational action. 
	A)	True
	B)	False

	14.	Stakeholder engagement is at its core, a relationship.
	A)	True
	B)	False

	15.	In the early 21st century, more than one billion people worldwide lacked access to safe drinking water. 
	A)	True
	B)	False

Multiple Choice Questions

	16.			 has donated over $180 million to UNICEF in over a decade: 
	A)	IKEA 
	B)	Walmart
	C)	Unilever. 
	D)	Nike. 

	17.	Failure to understand the beliefs and expectations of stakeholders: 
	A)	Causes company's profits to increase in the short run. 
	B)	Causes company's profits to decrease in the short run. 
	C)	Causes the performance-expectations gap to grow larger. 
	D)	Increases the chance of a corporate buy-out. 

	18.	Examples of companies successfully managing public issues include:
	A)	Monsanto, which received worldwide acclaim for genetically modified foods.
	B)	Toyota, for their creation of the Prius. 
	C)	Both A and B. 
	D)	B, but not A. 

	19.	LaFarge promised to experiment with reducing carbon dioxide emissions in this region:
	A)	Latin America. 
	B)	East Africa. 
	C)	The Pyrennes. 
	D)  	Saharan desert. 

	20.	Reaction to bonuses issued to executives from this company almost led Congress to pass a ninety percent tax on said bonuses. 
	A)	Price-Waterhouse. 
	B)	Anderson Group. 
	C)	AIG. 
	D)	None of the above. 

	21.	At Unilever, who has over-all responsibility fomanaging external relations at the Corporate level: 
	A)	A coalition of management and rank and file workers. 
	B)	An Executive committee
	C)	The Chief Executive Officer. 
	D)	The Chairman and the Board of Directors. 

	22.	Customer Environment includes
	A)	patents and copyrights.
	B)	information on competitors. 
	C) 	the graying of america. 
	D)	geophysical issues. 

	23.	Karl Albrecht refers believes environmental intelligence should focus on eight 				: 
	A)	Pressure points. 
	B)	Radar screens. 
	C)	Hyper-priorities. 
	D)	None of the above. 

	24.	Joya Williams received what sentence for attempting to steal trade secrets. 
	A)	$80,000 fine. 
	B)	Six months. 
	C)	Eighteen months. 
	D)	Eight years. 

	25.	Temple Grandin 				.
	A)	is a former Coca-Cola CEO. 
	B)	is a renowned economic expert. 
	C)	sued McDonald’s on behalf of animal right activists. 
	D)	None of the above. 

	26.	Gender, age and marital status are all examples of: 
	A)	Competitor Environment. 
	B)	Customer Environment. 
	C)	Both A and B. 
	D)	Neither A or B. 

    	27.  What business was forced to dramatically change its business model in the early 2000s because of technological changes: 
	A)	Music industry. 
	B)  Insurance Industry. 
	C)	Legal Industry. 
	D)	Advertising Industry. 

	28.  Being disappointed in a movie because it was not as good as the trailers is an example of 
	A)	Reality fantasy pendulum.
	B)	Media over-hype phenomena (Mop).
	C)	Poor environmental analysis.
	D)	Performance expectation gap.

    29.	Awareness of the physical surroundings of the facilities and operations is known as
	A)  Social environment.
	B)  Technological environment.
	C)  Geophysical environment.
	D)  None of the above.

	30.	The issues management process is: 
	A)	A beneficial tool used only to maximize the positive effects of a public issue for the organization's advantage. 
	B)	A beneficial tool used only to minimize the negative effects of a public issue for the organization's advantage. 
	C)	A systematic process companies use when responding to public issues that are of greatest importance to the business. 
	D)	A confusing process that is rarely used to help top management within an organization. 

	31.	Public affairs managers conduct a competitor environmental analysis to: 
	A)	Enable an organization to minimize threats and take advantage of new opportunities. 
	B)	Provide managers with information about external issues and trends. 
	C)	Both A and B. 
	D)	None of the above. 

	32.	Customer environmental intelligence includes: 
	A)	Demographic factors. 
	B)	An analysis of the firm's competitors. 
	C)	New technological applications. 
	D)	The cost of producing consumer goods. 
         
 33.  	An analysis of the stability or instability of a government is an example of scanning the: 
	A)	Social environment. 
	B)	Legal environment. 
	C)	Geophysical environment. 
	D)	Political environment. 

	34.	Legal environmental intelligence includes: 
	A)	Patterns of aggressive growth versus static maintenance. 
	B)	Analysis of local, state, national, and international politics. 
	C)	Considerations of patents, copyrights, or trademarks. 
	D)	Information regarding costs, prices, and international trade. 

	35.	An effective way to learn what issues are important to people outside of the organization is through: 
	A)	Building ongoing, positive relationships with stakeholders. 
	B)	Conducting public opinion polls. 
	C)	Hiring individuals from outside the company for available positions rather than promoting from within the organization. 
	D)	All of the above. 

	36.	Public affairs managers can identify issues in the issues management process through: 
	A)	Scanning newspapers and other media. 
	B)	Use of electronic databases, including the Internet. 
	C)	Both A and B. 
	D)	None of the above. 

	37.	The components of a typical issues management system include: 
	A)	Issues identification and research. 
	B)	Policy options, selection and strategy. 
	C)	Program design and implementation. 
	D)	All of the above. 

	38.	An issue’s public profile indicated to managers:
	A)	the significance of an issue. 
	B)	what to do. 
	C)	what to avoid doing. 
	D)	all of the above. 

    39.  In 2000, McDonald’s convened a panel of experts to discuss what topic:
	A)  Animal welfare in slaughterhouses.
	B)  Treatment of foreign employees and subcontractors.	 
	C)  Fat and sodium content of their product.
	D)  Children issues.

	40.	Once an organization has implemented the issue management program, it must: 
	A)	Use trade associations or consultants to follow high priority issues. 
	B)	Study the results and make necessary adjustments. 
	C)	Not limit the number of public issues the firm can address. 
	D)	Pick a selected number of issues to address immediately. 

    41.  Tony Jacques, of Dow chemical, believes:
	A)  Techniques for problem solving are underemphasized.
	B)  There is seldom a right answer in issue management. 
	C)  Issue management is primarily a science, not an art.
	D)  In the long run, the process is more important than the outcome.

	42.	Crisis management is a process enabling companies to: 
	A)	Encourage employees to address inner-city problems. 
	B)	Respond to short-term and immediate shocks. 
	C)	Allocate budget surpluses to guard against possible catastrophes. 
	D)	Legally protect the firm against disgruntled ex-workers. 
   
	43.	Stakeholder dialogue refers to:
	A)	Dialogue between stakeholders. 
	B)	Dialogue between stakeholders and businesses.
	C)	Dialogue between stakeholders and government. 
	D)	All of the above. 


True/False Questions Chapter 3

	1.	Corporate social responsibility implies that harm to people and society should be acknowledged and corrected if possible. 
	A)	True
	B)	False

	2.	Pfizer pledged approximately $1.4 million for earthquake relief in China. 
	A)	True
	B)	False
     
	3.	Through the Microsoft Unlimited Potential Program, people living in developing countries can receive a stripped down version of Windows for free.  
	A)	True
	B)	False

	4.	Walmart had more profits in 2009 than any other company 
	A)	True
	B)	False

	5.	The charity principle is a relatively new notion. 
	A)	True
	B)	False

	6.	According to the stewardship principle, professional managers are supposed to, but are not obliged to, see that everyone benefits from the company's action. 
	A)	True
	B)	False

	7.	According to the stewardship principle, businesses act as trustees and should consider the interests of all who are affected by business decisions and policies. 
	A)	True
	B)	False

	8.	A positive reputation allows a firm to attract a loyal customer base. 
	A)	True
	B)	False

9.  A primary benefit of enlightened self interest is an enhanced reputation.
A)  True
B)  False

	10.	One reason for a corporation to behave responsible is to discourage government regulation.
	A)	True
	B)	False

	11.	Enlightened self-interest means that companies are socially aware without giving up their own economic self-interest. 
	A)	True
	B)	False

	12.	Accompanying a firm's economic responsibility to its stakeholders are its legal obligations. 
	A)	True
	B)	False

	13.	Laws and regulations help create an unleveled playing field for businesses that compete against one another. 
	A)	True
	B)	False

	14.	Putting all the emphasis on short-run maximum profits for stockholders can lead to policies that overlook the interests and needs of other stakeholders. 
	A)	True
	B)	False

	15.	The Center for Corporate Responsibility is based at Boston College  
	A)	True
	B)	False

Multiple Choice Questions


	16.	According to David Korten: 
	A)	Business has become most powerful entity on the planet. 
	B)	Businesses should need to secure stockholder approval to engage in philanthropic practices.
	C)	The iron law of responsibility is not valid. 
	D)	Coca-cola has failed to protect the environment of Brazil. 

	17.	Which of the following is true of General Motors in 2009. 
	A)	They were not a top 10 company with regard to revenue. 
	B)	They were a top 10 in profits.
	C)	They were a top 10 company in revenue even though they lost money.
	D)	None of the above

	18.	The revenues of Toyota Motors in 2009 was roughly equal to the entire economic output of: 
	A)	Venezuela
	B)	Peru 
	C)	Spain 
	D)  	Colorado

	19.	According to a Harris Interactive poll 		 of people think business has too much power. 
	A)   	55%	 
	B)	65%
	C)	75%. 
	D)	85%

	20.	Corporations have a role in establishing their community's: 
	A)	Tax base. 
	B)	Safety. 
	C)	Economic growth. 
	D)	All of the above. 

	21.	Modern corporations should be socially responsible because: 
	A)	They are responsible to the stockholders of the company. 
	B)	They create jobs, influencing the lives of employees. 
	C)	They are highly profitable. 
	D)	All of the above. 

	22.	The iron law of responsibility says that: 
	A)	In the long run, those who do not use power responsibly will lose it. 
	B)	In the short run, sacrifice social goals for economic goals. 
	C)	Law is most important, more than social or economic responsibility. 
	D)	In the long run, economic responsibility leads to social responsibility. 

	23.	A modern day expression of the charity principle does not include: 
	A)	Balancing the interests and needs of many diverse groups in society. 
	B)	Expressions of corporate philanthropy. 
	C)	Voluntary actions to promote the social good. 
	D)	Taking a paternalistic approach to community affairs. 

	24.	According to a modern day expression of the stewardship principle: 
	A)	Corporate managers should acknowledge business and society interdependence. 
	B)	Corporate managers should balance the interests and needs of many diverse groups in society. 
	C)	Voluntary actions should be taken to promote the social good. 
	D)	Both A. and B., but not C. 

	25.	Examples of modern day stewardship do not include: 
	A)	A stakeholder approach to strategic corporate planning. 
	B)	An attitude of enlightened self-interest. 
	C)	Developing social partnerships with needy groups. 
	D)	Both A. and B., but not C. 

	26.	Which of the following is not an example of the charity principle? 
	A)	Endowing public libraries. 
	B)	Supporting settlement houses for the poor. 
	C)	Supporting a governmental protection agency. 
	D)	Donating money to a family-counseling center. 

	27.	Which of the following was not a reason for the wealthy to be philanthropic in the early 20th century: 
	A)	Good publicity. 
	B)	Serving as “my brother’s keepers”. 
	C)	Tax provision. 
	D)	Well publicized contest between the super wealthy. 

	28.	Which phrase of corporate responsibility occurred in the 1950-1960s?
	A)	Corporate Social Stewardship. 
	B)   	Corporate Social Responsiveness. 
	C)	Corporate/Business Ethics. 
	D)	A, B and C are all false. 

	29.	HP Brazil, a subsidiary of Hewlett-Packard, developed the Digital Garage project to: 
	A)	Promote the sale of PCs and notebook computers in the Brazilian consumer market. 
	B)	Assist with natural resource conservation and recycling programs in their plant. 
	C)	Empower less privileged Brazilian youth with leadership, teamwork, IT and other skills to participate in the growing technological society. 
	D)	All of the above. 

	30.	Which of the following is not an argument in favor of corporate social responsibility? 
	A)	Discourages governmental regulation. 
	B)	It balances businesses' power with their responsibility to act. 
	C)	Improves Business value.
	D)	Promotes short-term profitability for businesses. 

	31.	According to Barlow v. A.P. Smith Manufacturing: 
	A)	The law prohibited charitable contributions, at that time. 
	B)	Socially responsible actions are an investment in the future, thus an allowable expense. 
	C)	Socially responsible actions must be approved by a majority of the firm's stockholders. 
	D)	Charitable contributions were bad corporate investments for the short term. 

	32.	Positive reputation can be valued as an intangible corporate: 
	A)	Asset. 
	B)	Liability. 
	C)	Charity. 
	D)	Expense. 

	33.	Which of the following is not an argument in favor of corporate social responsibility? 
	A)	Imposes unequal costs among competitors. 
	B)	Responds to changing stakeholders' demands. 
	C)	Corrects social problems caused by business. 
	D)	Discourages government regulation. 

	34.	Which of the following are arguments against corporate social responsibility? 
	A)	Lowers economic efficiency and profits. 
	B)	Imposes unequal costs among competitors. 
	C)	Requires social skills business may lack. 
	D)	All of the above are arguments against corporate social responsibility. 

	35.	The costs of corporate social responsibility may ultimately be passed on to the: 
	A)	Employees through fewer health benefits. 
	B)	Consumer through high prices. 
	C)	Investor through lower dividends. 
	D)	All of the above. 

	36.	Proponents against corporate social responsibility feel that public officials, not business people, should solve societal problems because: 
	A)	Business people do not have the skill-set to solve societal problems. 
	B)	The private sector is not mandated to solve these issues. 
	C)	Both A. and B. 
	D)	None of the above. 

	37.	Which company was not recognized as a best corporate citizen in every year since 2009. 
	A)	Starbucks. 
	B)	Whole Foods. 
	C)	Intel. 
	D)	Cisco Systems. 

	38.	Johnson and Johnson’s response to the Tylenol incident in the 1980s is an example of: 
	A)	Maximizing short term profits. 
	B)	Taking a short term loss for a long run benefit. 
	C)	Poor uses of charitable resources. 
	D)	Poor crisis management. 

	39.	What company took responsibility to dredge the New York Harbor in 2002?
	A)	General Electric. 
	B)	Merck. 
	C)	Pfizer. 
	D)	New York Power. 

	40.	Odwalla began pasteurizing juices in order to: 
	A)	Prevent the need for governmental regulation
	B)   Build good will through advertising
	C)	Comply with disputed United Nations mandates
	D)	Prevent Minute Maid for consolidating an important issue

	41.	What was Fortune Magazine’s 2009 America’s Most Admired company? 
	A)	Whole Foods. 
	B)	Pfizer. 
	C)	Apple. 
	D)	Sun Microsystems. 

	42.	What company installed a wind turbine in the Dominican Republic?
	A)	LaPlata. 
	B)	Timberland. 
	C)	Microsoft. 
	D)	Constellation Energy. 

True/False Questions - Chapter 4

	1.	Bernie Madoff cost his victims approximately $65 billion. 
	A)	True
	B)	False
	
	2.	Ethics is a concepion of right or wrong conduct. 
	A)	True
	B)	False

	3.	The percent of employees observing misconduct at work consistently increased from 2000 to 2007. 
	A)	True
	B)	False

	4.	About three quarters of employees surveyed in 2007 believed that their companies were considering the environment.
	A)	True
	B)	False

	5.	A New Zealand study found a positive correlation between corporate financial performance and ethical performance. 
	A)	True
	B)	False

	6.	In 2006, General Motors began the “Award for Ethcial Courage” program. 
	A)	True
	B)	False

	7.	The Sarbanes-Oxley Act was passed in 2004. 
	A)	True
	B)	False

	8.	A primary reason to for businesses to be ethical is to meet demands of business stakeholders. 
	A)	True
	B)	False

	9.	U.S. Corporate Sentencing Guidelines provide strong incentive for businesses to promote ethics at work. 
	A)	True
	B)	False

	10.	An ethical egoist acts for the benefit of others and sacrifices self-interest. 
	A)	True
	B)	False


	11.	In 1976, scholars found a positive relationship between economic performance and attention to spiritual values
	A) 	True
	B)	False

	12.	Ethics are always based on religious beliefs.
	A)	True
	B)	False

	13.	With ethical relativism in practice, there would be no universal ethical standards on which people around the globe could agree. 
	A)	True
	B)	False

	14.	It is generally believed that Ancient Romans developed the first ethical theory. 
	A)	True
	B)	False

	15.	Virtue ethics focuses on character traits that a good person should have
	A)	True
	B)	False

Multiple Choice Questions

	16.	What company has a slogan of “Customer led, ethically guided”. 
	A)	Citizen’s Bank. 
	B)	Patrimonio Hoy. 
	C)	Co-operative Bank. 
	D)	Whole Fodds. 

	17.	Which of the following is NOT a method of ethical reasoning: 
	A)	Utilitarian. 
	B)	Rights. 
	C)	Law and Order. 
	D)	Justice. 

	18.	People's ethical beliefs come from: 
	A)	Legislative action and judicial decisions. 
	B)	Reading the company's profit and loss statements. 
	C)	Their religious background, family, and education. 
	D)	The organization's code of ethics. 

	19.	People everywhere depend on ethical systems to tell them whether their actions are: 
	A)	Legal or illegal. 
	B)	Right or wrong. 
	C)	Financially attainable or not. 
	D)	Logical and in sound judgment. 

	20.	Businesses are expected to be ethical in their relationships with: 
	A)	Stockholders. 
	B)	Customers. 
	C)	Competitors. 
	D)	All of the above. 

	21.	Why should business be ethical? 
	A)	Most people want to act in ways that are consistent with their own sense of right and wrong. 
	B)	Ethical behavior protects business firms from abuse by unethical employees and competitors. 
	C)	Society's stakeholders expect it from businesses. 
	D)	All of the above. 
	D

	22.	Under the U.S. Corporate Sentencing Guidelines, if a firm has developed a strong ethics program, corporate executives found guilty of criminal activity may have their sentence: 
	A)	Increased. 
	B)	Reduced. 
	C)	Unaffected. 
	D)	Decided by the company. 

	23.	Under the Sarbanes-Oxley Act, corporations are required to: 
	A)	Have their CEO and CFO sign off on financial statements as accurate and fair. 
	B)	Have their audit committee comprised of only executives employed by the firm. 
	C)	Collect reimbursements from the U.S. government if financial restatements occur. 
	D)	All of the above. 
 
	24.	Which of the following is true regarding personal spirituality? 
	A)	Fortune magazine published a 1953 article claiming that American businessmen were becoming more spiritual. 
	B)	Eighty eight percent of Americans polled claim that they have occasion to discuss their religious beliefs in the workplace on a daily basis. 
	C)	Since 1976, Fortune and Business Week magazines have documented a resurgence of workplace spirituality. 
	D)	There are slightly less than 900,000 Bible and prayer groups that regularly meet at the workplace, according to the Fellowship for Companies for Christ International. 

	25.	The Basis of Ethics reasoning for mature adults is: 
	A)   Ego-Centered Reasoning. 
	B)	Law-Centered Reasoning. 
	C)	Principle-Centered Reasoning. 
	D)	Society Centered Reasoning. 

	26.  The critical factor in Utilitarian ethical reasoning is: 
	A)	Respecting entitlements. 
	B)	Comparing costs and benefits. 
	C)	Distributing Fair Shares. 
	D)	Protecting Human rights. 

	27.	Under utilitarian reasoning, the action is ethical if: 
	A)	Basic human rights are respected. 
	B)	Benefits and costs are fairly distributed. 
	C)	Net benefits exceed net costs. 
	D)	There is no net job loss. 
	
28.	Per the text, which of these was NOT considered a moral value in 4th B.C.
A)	Honesty
B)	Courage
C)	Gentleness
D)	Wittiness

 	29. 	Per the text, Benjamin Franklin considered which of these a moral value 
	A)	Silence
	B)	Toughness
	C)	Friendliness
	D)	Truthfulness

29.	Which of these is not a potential conflict of interest
A)	Doctor ordering tests from a lab he owns.
B)	Mechanic ordering parts and marking up price.
C)	Lawyer representing defendant she believes is guilty.
D)	Auditor analyzing a company who hired her.

	30.	Cross-cultural contradictions arise due to: 
	A)	The emergence of a developing country's economic power. 
	B)	Religious differences practiced by business executives. 
	C)	Differences between home and host countries' ethical standards. 
	D)	All of the above. 

	31.	Which of the following examples best illustrate an ethics issue based on cross-cultural contradictions? 
	A)	Legally marketing a pesticide abroad that has been banned in the U.S. 
	B)	Circumventing government regulations to ensure company profits. 
	C)	Hiring child workers in violation of civil law. 
	D)	False and misleading advertising claims. 
  
32.	What video screen manufacture pleaded guilty to price fixing and paid a $585 million fine.
A)	Vizio
B)	Sony
C)	Sharp
D)	RCS
 
	33.  The basis of ethics reasoning for early adulthood adolescence is 				.  
	A)	Law-centered reasoning
	B)	Group centered reasoning
	C)	Precision centered reasoning
	D)	None of the above

34.	Robert Solomon 		.
	A)	is a philosopher
	B)	was convicted of selling trade secrets.
	C)	was a Senator from Ohio who opposed The Sarbanes-Oxley Act.
	D)	was CEO of the LRN Corporation
		
	35.	Dennis Kozlowski 			. 
	A)	is a former Wal-Mart vice chairman
	B)	is a former Comcast CEO
	C)	is a former TYCO CEO
	D)	is a former Healthsouth CEO

	36. 	Managers’ Values 		.
	A)	are easily influenced by underlings.
	B)	are key in determining the ethical direction of a company.
	C)	are inflexible.
	D)	are always ego driven

	37.	A limitation in rights reasoning is 			.
	A)	incomplete set of virtues.
	B)	difficult to measure social costs.
	C)	difficult to balance conflicting rights.
	D)	none of the above.

	38.	St. Thomas Aquinis lived in the 		.
	A)	1100s
	B)	1200s
	C)	1300s
	D)	1400s
 	
True/False Questions - Chapter 5

	1.	Corporate culture is a blend of ideas, customs, traditional practices, company values, and shared meanings that help define normal behavior for everyone who works in a company
	A)	True
	B)	False


	2.	Ethical Climate helps set the ethical tone for a company. 
	A)	True
	B)	False

	3.	The Satyam fraud has been referred to as Pakistan’s Enron. 
	A)	True
	B)	False

	4.	In most companies, a moral atmosphere can be detected.
	A)	True
	B)	False

	5.	European regulators responded strongly to the U.S. accounting scandals
	A)	True
	B)	False

	6.	Although it is a crime, as of February, 2009 no one has ever gone to prison for backdating stock options. 
	A)	True
	B)	False

	7.	Mike Brady is the former CEO of Nestle. 
	A)	True
	B)	False

	8.  	After lowering the price of their iphone, Apple offered a $50 store credit to anyone who paid the original, higher price. 
	A)	True
	B)	False

	9.	Jason Smathers was arrested for stealing 92 million e-mail addresses. 
	A)	True
	B)	False

	10.	The AICPA requires CPAs to act as whistle blowers when detecting material misstatements in financial statements. 
	A)	True
	B)	False

	11.	Christopher Cox is a former Chairman of the SEC. 
	A)	True
	B)	False

	12.	When Shell Oil first opened its employee help line, it only averaged 32 calls per year. 
	A)	True
	B)	False

	13.	Ethics audits are exclusively done by outside consultants or entities. 
	A)	True
	B)	False

	14.	The F.C.P.A. forbids U.S. based companies from paying bribes to foreign officials. 
	A)	True
	B)	False

	15.	Fraud is generally not considered white collar crime. 
	A)	True
	B)	False

Multiple Choice Questions

	16.	Which of the following is not an example of an ethical climate criteria? 
	A)	Egoism. 
	B)	Benevolence. 
	C)	Principle. 
	D)	Corporate driven.
 
	17.	 If a manger approaches ethics with benevolence in mind, he or she would stress what? 
	A)	Friendly relations and team interest. 
	B)	Company rules and procedures. 
	C)	Laws and professional codes. 
	D)	Economic efficiency.  

	18.	From 2002 to 2006: 
	A)	Siemens was fined by the U.S. government 13 times for bribing foreign officials. 
	B)	Siemens paid approximately $20 million in bribes. 
	C)	Siemens paid over $40 million in bribes annually. 
	D)	Siemens paid $14 million to South Korea. 

	19.	The primary issue in accounting ethics is? 
	A)	Privacy. 
	B)	Conflict of Interest. 
	C)	Bribery. 
	D)	Puffery. 

	20.	What rogue trader cost Societe Genarale approximately $8 billion dollars 
	A)	Hans Kohl. 
	B)	Freidrich Schmidt. 
	C)	Steffen Smeling. 
	D)	Jerome Kerviel. 

	21.	The explosion of information technology 
	A)	Has raised substantial conflict of interest issues. 
	B)	Has created privacy problems primarily for the United States. 
	C)	Has raised serious trust questions between the consumer and businesses. 
	D)	All of these are true. 

	22.	Ghostnet focused mainly on: 
	A)	The United States Military. 
	B)	Asian governments. 
	C)	British banks. 
	D)	Colombia drug cartels. 

	23.	Which of the following is not considered part of marketing ethics: 
	A)	Selling. 
	B)	Advertising. 
	C)	Distributing. 
	D)	All are part of marketing ethics. 

	24.	What steps helped Shell Oil increase traffic on their hot line. 
	A)	Expanded the hours. 
	B)	Changed the name to help line. 
	C)	Changed who staffed the call line. 
	D)	All of the above are true. 

	25.	Accountants are governed by which code: 
	A)	AAAA. 
	B)	AICPA. 
	C)	CPALE. 
	D)	AMCPAM. 

	26.	What company was accused of overstating its commitment to the “fair trade” product movement with regard to coffee sales? 
	A)	Starbucks. 
	B)	Walmart. 
	C)	Nestle. 
	D)	Folgers. 

	27.	Ehics and Compliance officers first became prevalent in the:
	A)   	1960s. 
	B)	1970s. 
	C)	1980s. 
	D)	1990s. 

	28.	Per Lynn Paine, which of the following is an approach to an ethics program?
	A)	Compliance-based approach. 
	B)	Justice-based approach. 
	C)	Both A and B. 
	D)	Neither A or B. 

	29.	What Philadelphia based company won an award for paying all employees living wages: 
	A)	Genos. 
	B)	The White Dog Cafe. 
	C)	The Port Hole. 
	D)	Lerner & Timpson. 

	30.	The most expensive element of an ethics program is usually: 
	A)	Help line costs. 
	B)	Training. 
	C)	Recruiting and staffing compliance offices. 
	D)	Networking. 

	31.	Transparency International is based in: 
	A)	Brussels. 
	B)	Berlin. 
	C)	Boston. 
	D)	The Hague. 

	32.	What Asian country was noted by Daniel Kaufman of the World Bank for seeing economic benefits when they cracked down on corruption: 
	A)	North Korea. 
	B)	South Korea. 
	C)	Singapore. 
	D)	Thialand. 

	33.	A study indicated that the amount of bribes paid to government officials was roughly equal to what percentage of the nation’s entire revenue? 
	A)	35%. 
	B)	65%. 
	C)	80%. 
	D)	100%. 

	34.	The purpose of the U.S. Foreign Corrupt Practices Act's requirement of full disclosure of the company's relations with sales agents and government officials is: 
	A)	To prevent bribery and other legally questionable payments. 
	B)	To prevent exports of U.S.-made goods. 
	C)	To boost exports of U.S.-made goods. 
	D)	To prevent piracy of copyrights

	35.	Which of the following is a typical practice in an ethics audits procedure? 
	A)	The auditor notes any deviations from the company's ethics standards that become evident during the ethics audit. 
	B)	The auditor brings deviations to the attention of the audit supervisor. 
	C)	Department managers are required to file a report with the auditor on the written procedures they established for informing new employees of ethical standards 
	D)	All of the above. 

	36.	Bribery is: 
	A)	A questionable payment to a government official to ensure a business transaction. 
	B)	An unethical activity. 
	C)	Found in nearly every sector of the global marketplace. 
	D)	All of the above. 

	37.	The FBI estimates white collar crime costs at approximately $			 annually 
	A)	100 billion. 
	B)	200 billion. 
	C)	300 billion. 
	D)	400 billion. 

	38.	Who was a former investment banker who, though jailed was allowed to keep most of the money he made off of allegedly questionable public offerings: 
	A)	Gary Winnick. 
	B)	Frank Quattrone. 
	C)	Andrew Wiedenhorn. 
	D)	Bradley Nowell. 

	39.	Alcoa was originally named: 
	A)	Aluminum Co-op of America. 
	B)	Cleaning of America. 
	C)	A to Z Inc. 
	D)	Pittsburgh Reduction Company. 
 
40.	According to the Justice Department, the most feared punishment for white-collar criminals is being: 
	A)	Economically sanctioned. 
	B)	Losing their reputation in the corporate community. 
	C)	Fined hefty financial penalties. 
	D)	Sentenced to prison. 

True/False Questions - Chapter 6

	1.	Globalization directly and indirectly influences the politics, environment, geopolitics, and economics of virtually every country in the world. 
	A)	True
	B)	False

	2.	The United Nations believes there are approximately 109,000 TNCs. 
	A)	True
	B)	False

	3.	The three strategies of globalization can be summarized by sell, buy and ship. 
	A)	True
	B)	False

	4.	The World Bank makes currency exchange easier for member countries so that they can participate in global trade. 
	A)	True
	B)	False

	5.	The World Bank allows two representatives from each member nation on the WB's governing board. 
	A)	True
	B)	False

	6.	The WTO conducts negotiations, called “cycles”, on various topics, rotating its meetings among different cities. 
	A)	True
	B)	False

	7.	The WTO lent over 2 billion dollars in 2002. 
	A)	True
	B)	False

	8.	Globalization is accepted worldwide and creates little controversy. 
	A)	True
	B)	False

	9.	Futurist, Allen Hammond, argues that globalization helps to support the spread of democracy and freedom. 
	A)	True
	B)	False

	10.	Only manufacturing jobs are being lost through globalization. 
	A)	True
	B)	False

	11.	Critics of globalization support the spread of American ideals and culture throughout the rest of the world. 
	A)	True
	B)	False

	12.	Most nations in the world share similar political, social and economic beliefs. 
	A)	True
	B)	False

	13.	According to the Heritage Foundation, the least economically free nation in 2009 was Cuba. 
	A)	True
	B)	False

	14.	As the world has become freer politically and economically, the gaps between the richest and poorest countries have risen. 
	A)	True
	B)	False

	15.	Gemstones which are mined or stolen by rebels fighting recognized governments are known as conflict diamonds.
	A)	True
	B)	False

Multiple Choice Questions

	16.	Global market channels involve: 
	A)	A firm producing goods in their home country and exporting them to other countries. 
	B)	A firm producing goods in their home country to sell at home. 
	C)	A firm producing goods in a foreign country to sell at home. 
	D)	A firm producing goods in a foreign country to sell abroad. 

	17.	A firm that has global operations has: 
	A)	All of their manufacturing and service operations abroad. 
	B)	Some or all of their manufacturing or service operations abroad. 
	C)	Manufacturing but not service operations abroad. 
	D)	Service but not manufacturing operations abroad. 

	18.	A firm that would like to develop a global supply chain would: 
	A)	Run a manufacturing plant for raw materials, components or supplies in other countries. 
	B)	Sell raw materials, components or supplies produced at home abroad. 
	C)	Purchase raw materials, components, or supplies from sellers in other countries. 
	D)	Check products that were manufactured abroad for defects in their home country. 

	19.	According to the United Nations, how many transnational corporations operate in the global economy? 
	A)	48,000 corporations. 
	B)	79,000 corporations. 
	C)	114,000 corporations. 
	D)	156,000 corporations. 

	20.	Vodafone is headquartered in: 
	A)	United States. 
	B)	United Kingdom. 
	C)	Germany. 
	D)	Finland. 

	21.	The acceleration of globalization has been driven by: 
	A)	Communications technology. 
	B)	Transportation systems. 
	C)	Social and political reforms. 
	D)	All of the above. 

	22.	Thomas Friedman believes the world is becoming increasingly: 
	A)	flat. 
	B)	tall. 
	C)	quick. 
	D)	irresponsible. 

	23.	Which transportation system improvement has aided the acceleration of globalization? 
	A)	Airfreight. 
	B)	High-speed rail. 
	C)	New oceangoing vessels. 
	D)	All of the above. 

	24.	Which is an example of a social and political reform that has lead to the acceleration of globalization? 
	A)	Economic sanctions against North Korea. 
	B)	Efforts to deter drug trafficking from Columbia. 
	C)	The fall of the Soviet Union. 
	D)	The European Union's penalties against Microsoft for unfair competition. 

	25.	An example of an international financial and trade institution (IFTI) is: 
	A)	World Bank. 
	B)	International Monetary Fund. 
	C)	World Trade Organization. 
	D)	All of the above. 

	26.	Representation on the World Bank's board of directors is based on 
	A)	The size of the member nation's population. 
	B)	The size of the member nation's economy. 
	C)	The size of the member nation's land mass. 
	D)	Equal representation of all member nations. 

	27.	The loan policies of the World Bank: 
	A)	Are generous to developing countries seeking to expand their educational systems. 
	B)	Impose strict restrictions on debtor countries which can sometimes lead to hardship. 
	C)	strictly forbid any debt relief. 
	D)	Are open to any company conducting business abroad. 

	28.	The primary purpose of the International Monetary Fund (IMF) is: 
	A)	To lend foreign currency to member countries. 
	B)	To make currency exchange easier. 
	C)	To consolidate the debt facing third world nations. 
	D)	To collect the principal and interest on loans made by The World Bank to third world nations. 

	29.	The amount owed to the World Bank in the mid 2000s was: 
	A)	$11 million. 
	B)	$314 million. 
	C)	$3 billion. 
	D)	$22 billion. 

	30.	The purpose of the World Trade Organization (WTO) is: 
	A)	To impose barriers to free trade among nations. 
	B)	To eliminate barriers to free trade among nations. 
	C)	To develop trading partnerships between rich and poor nations. 
	D)	To decrease globalization and free trade. 

	31.	Under the World Trade Organization's most-favored nation rule: 
	A)	All import restrictions imposed by other nations on their goods are illegal unless a cultural waiver is issued. 
	B)	All import restrictions are illegal unless the item is proven scientifically unsafe. 
	C)	Most-favored nations can impose heavy tariffs on other nations. 
	D)	Most-favored nations can oppose the dumping of goods by any nation in their home market. 

	32.	The theory of comparative advantage states that: 
	A)	Productivity rises more quickly when countries produce goods and services for which they have a natural talent. 
	B)	Countries that produce guns have an advantage over countries that produce butter. 
	C)	All countries start out on an equal playing field. 
	D)	Countries that operate under a policy of isolationism have a comparative advantage. 

	33.	Which of the following is not part of the G-8? 
	A)	Russia. 
	B)	France. 
	C)	China. 
	D)	European Union. 

	34.	An individual who is a supporter of globalization would argue that it helps the developing world by: 
	A)	Giving entrepreneurs access to foreign investment funds to support economic development. 
	B)	Allowing new ideas and technological innovations to spread quickly. 
	C)	Providing people in developing countries with more jobs. 
	D)	All of the above. 

	35.	Arguments against globalization state that companies decide to manufacture in China because of China's: 
	A)	Strict law enforcement. 
	B)	High environmental standards. 
	C)	Weak health and safety regulations. 
	D)	Strong worker unions. 

	36.	According to the United Nations, a feature of democracy is: 
	A)	Fair elections. 
	B)	An independent media. 
	C)	A government with power balanced among executive, legislative, and judicial branches. 
	D)	All of the above. 

	37.	A society where economic power is concentrated in the hands of government officials and political authorities is called: 
	A)	A central state control system. 
	B)	A social democracy. 
	C)	A political control system. 
	D)	A military dictatorship. 

	38.	When a corporation becomes a strong force for change in other nations where they operate, this is known as:
	A)	Feeding the beast
	B)	Raising the bottom. 
	C)	Comparative advantage. 
	D)	Constructive Engagement. 

	39.	Which of the following is not part of the three sector world referenced in the text: 
	A)	Media. 
	B)	Business. 
	C)	Government. 
	D)	Civil Society. 

	40.	A Governments primary goal is: 
	A)	Safeguard freedoms. 
	B)	Wealth creation. 
	C)	Societal order. 
	D)	Retain heirarchy. 

	41.	Collaborative partnerships: 
	A)	Combine the strengths of business, government and NGOs. 
	B)	Allow the private sector to improve global conditions without the inefficiency of government. 
	C)	Are amateurish and lack financial resources. 
	D)	Are short-term focused. 

Chapter 7 _True False

1.	Nova Nordisk is a Denmark based health care company dedicated to the treatment of cancer. 
	A)	True
	B)	False

	2.	CEMEX lends money to Mexicans living in The United States. 
	A)	True
	B)	False

	3.	C.K. Pralahad believes that the poorest people in the world represent an incredible business opportunity. 
	A)	True
	B)	False

	4.	In South Africa, Dannon has tapped into the poorer markets by selling yogurt for about 1 rand, or fourteen cents
	A)	True
	B)	False

	5.	When businesses invest time, money and effort in citizenship activities they often reap rewards in the form of enhanced reputation 
	A)	True
	B)	False

	6.	Corporate giving is an important way for a business to express its commitment to corporate citizenship. 
	A)	True
	B)	False

	7.	New York based pharmaceutical company Merck set up a Corporate Citizenship Department. 
	A)	True
	B)	False

	8.	In Stage 1 of global citizenship, a company’s primary strategic intent is legal compliance. 
	A)	True
	B)	False

	9.	In the elementary stage of global corporate citizenship, companies tend to be defensive. 
	A)	True
	B)	False

	10.	Per the five-stage model of corporate citizenship contained in the book, the final stage is known as the fully integrated stage.
	A)	True
	B)	False

	11.	Companies in Asia are more likely to have written policies on bribery than companies in the United States.
	A)	True
	B)	False

	12.	SA 8000, a social audit standard, originated in 2002
	A)	True
	B)	False

	13.	The balanced scorecard auditing system focuses on financial and nonfinancial indicators. 
	A)	True
	B)	False

	14.	The triple bottom line approach requires financial, social and labor results to be examined 
	A)	True
	B)	False

	15.	In a business context, transparency is defined as clear public reporting of an organization’s performance to various stakeholders.  
	A)	True
	B)	False

Multiple Choice Questions

	16.	Who defined global corporate citizenship as capitalism with a social conscience.
	A)	Melinda Gates. 
	B)	Bill Gates. 
	C)	Robert Civita. 
	D)	Fransisco Cervantes. 

	17.	Developing products that meet the needs of the world poor is also know as			.
	A)	bottom feeding. 
	B)	third world trolling. 
	C)	selling to the bottom of the period. 
	D)	minnow selling. 

	18.	Approximately how many people earn less than $1,500 a year: 
	A)	3 billion. 
	B)	3.5 billion 
	C)	4 billion. 
	D)	4.5 billion 

	19.	Casas Bahia requires all of the following to credit customers EXCEPT: 
	A)	The customers must pass a careful screening process. 
	B)	They must mail in the payment no later than the fifteenth of each month. 
	C)	A and B are true. 
	D)	Neither A nor b is true. 

	20.	Which of the following is not an intangible asset: 
	A)	Good reputation. 
	B)	Trusting relationships. 
	C)	Customer loyalty. 
	D)	All of the above. 

	21.	The acceleration of globalization has been driven by: 
	A)	Communications technology. 
	B)	Transportation systems. 
	C)	Social and political reforms. 
	D)	All of the above. 

	22.	A license to operate is: 
	A)	Another name for goodwill. 
	B)	Another name for social capital. 
	C)	An informal right to do business.
	D)	Another name for the myriad of licenses legally required to do business.

	23.	As of 2008, what percentage of Fortune 250 companies had department of corporate citizenship or something similar? 
	A)	94%. 
	B)	82%. 
	C)	71%. 
	D)	63. 

	24.	Where is Business for Social Responsibility based? 
	A)	Washington D.C. 
	B)	London. 
	C)	Ottawa. 
	D)	San Fransisco. 

	25.	Per the five-stage model of global corporate citizenship in the text what is the stakeholder relationship at the elementary level: 
	A)	Bilateral. 
	B)	Reactive. 
	C)	Unilateral. 
	D)	Influenced. 

	26.	Per the five-stage model of global corporate citizenship in the text, at what stage does a government often step up its philanthropic giving?
	A)	Stage 1. 
	B)	Stage 2. 
	C)	Stage 3. 
	D)	Stage 4. 

	27.	As of 2009, Stuart Rose was the CEO of: 
	A)	Marks & Spencer. 
	B)	Harris & Teeter. 
	C)	Smith and Wesson. 
	D)	The Worthington Group. 

	28.	Which of the following is true:
	A)	A United States Company is more likely to have a written policy on bribery than an Asian Company. 
	B)	There is a huge gap between the corporate citizenship practices of Canada and the United States. 
	C)	Petrobas, the state-run oil company of Venezuela, has exemplary citizienship practices. 
	D)	None of the above are true. 

	29.	Which of the following is NOT part of a social performance audit: 
	A)	Economic performance. 
	B)	Environmental performance. 
	C)	Social Performance. 
	D)	Ethical Performance. 

	30.	As of 2001, what country required all businesses listed on their stock exchange to assess the sustainability impact of their social performance? 
	A)	France. 
	B)	India. 
	C)	Portugal. 
	D)	Netherlands. 

	31.	In a social audit commissioned by The Body Shop, the company received poor marks in which of the following: 
	A)	Quality of Mission Statement. 
	B)	Relationship with the media. 
	C)	Corporate Philanthropy. 
	D)	Animal Welfare. 

	32.	Chronologically, which was the first Social Audit listed in the book: 
	A)	ISO 6000. 
	B)	ISEA 9000. 
	C)	ISO 14001. 
	D)	MITPEP 500. 

	33.	Which of the following is NOT true of Novartis? 
	A)	It is based in Sweden. 
	B)	It is a pharmaceutical company. 
	C)	It was an early endorser of the United Nations Global Compact. 
	D)	All of the above are true. 

	34.	From 2005 to 2008, social reporting in Italy: 
	A)	Increased slightly. 
	B)	Increased dramatically. 
	C)	Decreased slightly. 
	D)	Stayed the same. 

	35.	In 2009, this country mandated social reporting 
	A)	Sweden. 
	B)	Belgium. 
	C)	Switzerland. 
	D)	Canada. 

	36.	The balanced scorecard system: 
	A)	Is focused on financial indicators only. 
	B)	Is focused on non financial indicators only. 
	C)	Is focused on financial and non financial indicators. 
	D)	Is a way for a company to assess their success in dealing with a crisis after the fact. 

	37.	Which of the following is NOT part of a triple bottom line approach: 
	A)	Employee relations. 
	B)	Financial Results. 
	C)	Environmental Impact. 
	D)	Social Impact. 

	



True/False Questions - Chapter 8

	1.	In December of 2008, Canada authorized emergency loans for automotive companies.
	A)	True
	B)	False

	2.	The “Group of 7” met in April 2009 and committed $1.1 dollars to loans in an attempt to stave off a world depression  
	A)	True
	B)	False

	3.	A cooperative government-business relationship on one issue does not guarantee cooperation on another issue. 
	A)	True
	B)	False

	4.	Public policy is a plan of action undertaken by business to influence the government. 
	A)	True
	B)	False

	5.	Public Policy Inputs are external pressures which shape governmental policy decisions and strategies to address problems. 
	A)	True
	B)	False

	6.	Governments use public policy tools to achieve public policy goals.
	A)	True
	B)	False

	7.	Monetary policies refer to policies that affect the supply, demand and value of the nation's currency. 
	A)	True
	B)	False
	
8.	A national health care policy is an example of an economic policy. 
	A)	True
	B)	False

	9.	Economic regulations aim at modifying the normal operations of the free market and the forces of supply and demand. 
	A)	True
	B)	False

	10.	An example of a market failure is when a company fails to incorporate the cost of a side effect which is borne by someone else. 
	A)	True
	B)	False

	11.	A negative externality is the same as a spillover affect. 
	A)	True
	B)	False

	12.	Natural monopolies generally occur because of heavy initial government regulation
	A)	True
	B)	False

	13.	The oldest regulations generally deal with safety in the workplace. 
	A)	True
	B)	False

	14.	BATF is generally considered to deal with social regulation, not economic regulation.
	A)	True
	B)	False

	15.	According to blogger Michael Hodges, we spend almost $5,000 per person annually in regulatory costs  in the United States. 
	A)	True
	B)	False

Multiple Choice Questions

	16.	Which of the following is not a public good?
	A)	police protection. 
	B)	homeland security. 
	C)	public libraries. 
	D)	police protection. 

	17.	Who described public policy as what government chooses to do or not to do: 
	A)	Bill Clinton. 
	B)	George Bush. 
	C)	Sam Walton. 
	D)	Patrick Moynahan. 

	18.	Government: 
	A)	Tends to cooperate with business. 
	B)	Tends to be in conflict with business. 
	C)	Sometimes cooperates and sometimes is in conflict with business. 
	D)	Tends to be controlled by business. 

	19.	Cooperation between business and government often occurs when: 
	A)	They encounter a common problem or enemy. 
	B)	Business can afford it. 
	C)	Business is required by law to cooperate. 
	D)	Government has the support of the people. 

	20.	An example of an illegitimate government can be seen in: 
	A)	Burma. 
	B)	Russia. 
	C)	The United States. 
	D)	Spain. 

	21.	Public policy is a basic set of goals, plans and actions undertaken by: 
	A)	Political lobbyists. 
	B)	A government. 
	C)	Business advocacy groups. 
	D)	Police and fire departments. 

	22.	Which of the following is NOT an example of a public policy input: 
	A)	Foreign policy concerns. 
	B)	Media attention. 
	C)	Economic pressures. 
	D)	All are examples of public policy inputs. 

	23.	Public policy tools involve a combination of: 
	A)	Incentives and political favors. 
	B)	Penalties and prison terms. 
	C)	Incentives and penalties. 
	D)	Political favors and prison terms. 

	24.	Public policy effects are: 
	A)	Invariably please more people than they displease. 
	B)	generally easy to predict. 
	C)	Only know ten years after the public policy is enacted. 
	D)	Sometimes intended and sometimes unintended. 

	25.	Economic policies include: 
	A)	Fiscal and monetary policies. 
	B)	Monetary and social assistance policies. 
	C)	Fiscal and social assistance policies. 
	D)	Policies initiated by the Federal Reserve System. 

	26.	Which of the following is NOT considered an economic policy: 
	A)	Trade policy. 
	B)	Taxation policy. 
	C)	Industrial policy. 
	D)	All of the above are considered economic policies. 
   
	27.	The primary way of accomplishing public policy is through: 
	A)	Wait for businesses to act. 
	B)	Lobbying Congress. 
	C)	Regulation. 
	D)	Writing your politician. 

	28.	A spillover effect is also known as: 
	A)	Negative externality. 
	B)	Unplanned cost. 
	C)	Unintended cost. 
	D)	All of the above. 

	29.	Which of the following is not a natural monopoly: 
	A)	The NFL. 
	B)	Railroads. 
	C)	Software. 
	D)	Cable tv. 

	30.	Which of the following is NOT an example of a social regulatory agency? 
	A)	Consumer Product Safety Commission. 
	B)	The Environmental Protection Agency. 
	C)	National Highway Traffic Safety Administration. 
	D)	National Labor Relations Board. 

	31.	FRB is an abbreviation for what regulatory agency? 
	A)	Federal Reserve Board. 
	B)	Fiscal Responsibility Bureau. 
	C)	Federal Recycling Bureau. 
	D)	Foreign Relations Board. 

	32.	A regulatory agency charged with enforcing social regulation: 
	A)	Federal Trade Commission. 
	B)	Federal Aviation Administration. 
	C)	Federal Communications Commission. 
	D)	Internal Revenue Service. 

	33.	Total social regulation costs are: 
	A)	Slightly higher than total economic regulation costs. 
	B)	Slightly less than total economic regulation costs. 
	C)	Significantly higher than total economic regulation costs. 
	D)	Equal to total economic regulation costs. 

	34.	Since the 1980s, staffing for regulation enforcement has: 
	A)	Slightly increased. 
	B)	Slightly decreased. 
	C)	Dramatically increased. 
	D)	Been about the same. 

	35.	Deregulation is often: 
	A)	A politically popular idea. 
	B)	A politically unpopular idea. 
	C)	Seen during a Democratic federal administration. 
	D)	Found in European countries but not in the United States. 

	36.	Reregulation is: 
	A)	The adoption of regulation in another country to promote trade. 
	B)	Necessary since all regulation has a time limit. 
	C)	The increase or expansion of government regulation. 
	D)	The shifting of regulation to the state level from the national level. 

	37.	Deregulation has NOT occurred in which industry: 
	A)	Commercial airlines. 
	B)	Railroads. 
	C)	Electronics. 
	D)	Financial institutions. 

	38.	Deregulation in Europe usually occurs in the area of:
	A)	Social Regulation. 
	B)	Fiscal Regulation. 
	C)	Health Care Regulation. 
	D)	Economic Regulation.  

	39.	As of 2009, what percentage of Americans smoked:
	A)	8%. 
	B)	15%. 
	C)	20%. 
	D)	26%. 

	40.	In what year did the U.S. Surgeon General declare cigarettes a health hazard: 
	A)	1959. 
	B)	1964. 
	C)	1973. 
	D)	1979. 

	41.	Who was the leading Senate Sponsor of the Family Smoking Prevention and Tobacco Control Act.
	A)	Ted Kennedy. 
	B)	Charles Grassley. 
	C)	Barack Obama. 
	D)	Barbara Mikulski. 
 

True/False - Chapter 9

1.   Despite substantial opposition, Google and Yahoo joined in an advertising venture in 2008. 
	A)	True
	B)	False

	2.	Using political means, Merck was able to legally sell Manicil to girls as young as 12 years old.
	A)	True
	B)	False

	3.	Opponents of business's involvement in the political process argue that businesses risk their credibility by becoming involved in partisan politics.
	A)	True
	B)	False

	4.	In a 2009 Harris Poll, approximately 85% of those surveyed believed that big business has too much political power.
	A)	True
	B)	False

	5.	The AFL-CIO supported the 2008 Republican ticket by establishing a website entitled McCain revealed. 
	A)	True
	B)	False

	6.	In 2008, President Bush signed a law which changed the date of daylight savings time.
	A)	True
	B)	False

	7.	Chemical firms generally have a sophisticated political strategy. 
	A)	True
	B)	False

	8.	Since 1998, the number of lobbyists has almost tripled. 
	A)	True
	B)	False

	9.	Under U.S. law, lobbying activities must be disclosed publicly. 
	A)	True
	B)	False

	10.	Lobbying firms must register with the Government, though this action is not required by in house lobbyists.
	A)	True
	B)	False

	11.	Expert witnesses provide information to legislators for businesses or business groups. 
	A)	True
	B)	False

	12.	Companies that have organized PACs can only donate $4,000 per election cycle to these organizations.
	A)	True
	B)	False

	13.	2008 was the first time that Presidential candidates raised over one billion dollars. 
	A)	True
	B)	False

	14.	Barack Obama raised slightly less money than John McCain for the 2008 Presidential election. 
	A)	True
	B)	False

	15.	Advocacy ads have been legal in the United States since 1978.
	A)	True
	B)	False

Multiple Choice Questions

	16.	The solar polar industry: 
	A)	is dominated by three large companies which are very active politically. 
	B)	has eschewed political donations, and has subsequently suffered under the Obama administration. 
	C)	was able to have legislation passed in Hawaii which requires solar water heaters in all new construction by 2010. 
	D)	has approximately 2,900 companies in the United States. 

	17.	Proponents of business as a political participant argue: 
	A)	A pluralistic system invites many participants. 
	B)	It is business's constitutional right to be involved. 
	C)	Business is a vital stakeholder of government. 
	D)	A and C, but not B. 

	18.	An ad hoc coalition
	A)	brings together groups in the same or a similar industry to attempt to pass legislation. 
	B)	Must register prior to engaging in direct lobbying. 
	C)	formed to change daylight savings time. 
	D)	None of the above. 

	19.	In a 200 Harris poll, what percentage of people polled believed that small business had too much political power? 
	A)	5 percent. 
	B)	76 percent. 
	C)	44 percent. 
	D)	19 percent. 

	20.	Which of the following is not part of a corporation’s information strategy?
	A)	Public Relations
	B)	Lobbying
	C)	Direct Communication
	D)	Expert Witness testimony

	21.	Global Crossing: 
	A)	failed despite being well connected politically. 
	B)	exposed the hypocrisy of the NPA and deep water drilling. 
	C)	became the first organization to bundle at least $50 million in an electoral cycle. 
	D)	Succesfully lobbied to be exempt from solar panel legislation. 

	22.	To influence government policymakers' actions, an information strategy involves: 
	A)	Business providing government policymakers with information through direct communications.
	B)	Government policymakers hiring special interest groups for fact-finding projects. 
	C)	Businesses listening to government policymakers in order to develop a corporate strategy. 
	D)	Gaining support from other affected organizations. 

	23.	A common tactic in a financial-incentive political strategy is: 
	A)	Lobbying. 
	B)	Legal challenges. 
	C)	Expert witness testimony. 
	D)	Political contributions. 

	24.	Which of the following is NOT a constituency-building strategy tool? 
	A)	Expert witness testimony. 
	B)	Advocacy advertising. 
	C)	Public relations. 
	D)	Legal challenges. 

	25.	Which group spent the most on lobbying in 2008? 
	A)	AARP. 
	B)	PG & E. 
	C)	Exxon/Mobil. 
	D)	The U.S. Chamber of Commerce. 

	26.	Lobbyists, under U.S. law, must disclose their: 
	A)	Earnings. 
	B)	Expenses. 
	C)	Earnings and expenses. 
	D)	Political affiliation. 

	27.	Which of the following is NOT true about Jack Abromoff: 
	A)	He was a former lobbyist. 
	B)	He received a six year prison sentence. 
	C)	He received a harsh sentence to serve as a deterrent for would be lawbreakers. 
	D)	All of the above are true. 
    
	28.	What prominent lobbyist pleaded guilty to fraud in 2006: 
	A)	Bruce Bereano. 
	B)	Fred Simmons. 
	C)	Jack Abramoff. 
	D)	Dennis DeYoung. 

	29.	Which of the following is not true about “temptation laws”  
	A)	It was passed at least partly in response to the Abramoff scandal
	B)	Lawmakers are barred from receiving gifts. 
	C)	Common cause celebrated the law as “the first successful attempt at a lobbying law to close meaningful loopholes”. 
	D)	All of the above are true. 

	30.	Expert witness testimony is often provided: 
	A)	Through company newsletters. 
	B)	On the steps of the White House. 
	C)	In Congressional hearings. 
	D)	In the Wall Street Journal. 

	31.	This group, founded in 1972, consists of CEOs of major corporations: 
	A)	Better Business Bureau. 
	B)	League of Businessmen. 
	C)	Civic League. 
	D)	Business Roundtable. 

	32.	Which of the following is true of the 2008 Presidential election: 
	A)	Barack Obama did not receive federal funds. 
	B)	Barack Obama raised more slightly less than double what John McCain raised. 
	C)	Ralph Nader was not eligible for federal funds. 
	D)	All of the above are true. 

	33.	Which of the following is true regarding Ford Motors and the 2008 bailout: 
	A)	Ford was deemed ineligible for the bailout. 
	B)	Ford rejected bailout funds. 
	C)	The CEO of Ford refused to testify in front of Congress. 
	D)	Prior to the bailout, Ford was in worse shape than Chrysler or General Motors. 

	34.	Vernon Jackson 				. 
	A)	is a former Louisiana Congressman who was convicted of taking a bribe.
	B)	was found guilty in 2009 of multiple charges, including money laundering.
	C)	was the CEO of General Motors during the bail out period.
	D)	was the highest paid lobbyist in 2008.

	35.	What PAC raised the most in 2001-2002 and 2007-2008
	A)	National Association of Realtors
	B)	American Trial Lawyers Associations.
	C)	American Medical Association. 
	D)	National Association of Auto Dealers.

	36.	Which of the following is NOT true about advocacy advertising:
	A)	They have been legal in the United States since 2008. 
	B)	Merck pioneered the use of issue advertising. 
	C)	It is also referred to as issue advertising. 
	D)	They generally focus on political issues as opposed to products. 

	37.	Who or what generally leads a large company’s public affairs department: 
	A)	The CIO (Chief Information Officer). 
	B)	An appointed Senior Committee. 
	C)	A Senior Executive or V.P. 
	D)	A Deputy CEO. 

	38.	Which of the following was used to circumvent the soft money ban in the McCain-Feingold bill: 
	A)	323c corps. 
	B)	527 organizations. 
	C)	C-24s. 
	D)	Cipics. 

	39.	Which leader was NOT fingered by Transparency International for stealing from their country: 
	A)	Pol Pot. 
	B)	Ferdinand Marcos. 
	C)	Mohammed Soharto. 
	D)	Mobuto Seeko. 

	40.	What former New Jersey Senator stopped his campaign re-election bid in 2002 and subsequently became a lobbyist: 
	A)	Frank Lautenberg. 
	B)	Christine Todd Whitman. 
	C)	Robert Torricelli. 
	D)	Neal Peart. 

	 
	FIRST EXAM

True/False Questions - Chapter 10

	1.	Ecology is the study of how living things--plants and animals--interact with one another in an ecosystem. 
	A)	True
	B)	False

	2.	A commons is a shared resource, such as land, air or water that a group of people uses collectively. 
	A)	True
	B)	False

	3.	The paradox of the commons is that if all individuals attempt to maximize their own private advantage in the short term, the commons will still be plentiful in the long run. 
	A)	True
	B)	False

	4.	Sustainable development is an appealing idea but also a very controversial one. 
	A)	True
	B)	False

	5.	Sustainable development would require sacrifice from developed AND developing countries. 
	A)	True
	B)	False

	6.	Overly intensive farming can turn what was once arable land into a desert. 
	A) True
	B) False

	7.	About 30% of the world’s population lives below the international poverty line. 
	A)	True
	B)	False

	8.	Ikea is an example of a country that has followed The Natural Step system 
	A)	True
	B)	False

	9.	Although large, the gap between the richest and poorest countries is holding steady. 
	A)	True
	B)	False

	10.	World population more than tripled between 1950 and 2000.
	A)	True
	B)	False

	11.	The IPCC is a group of international scientists which believes global warning does not exist. 
	A)	True
	B)	False

	12.	Black carbon is the second largest contributor to climate change. 
	A)	True
	B)	False

	13.	According to the Food and Agriculture Organization of the United Nations, livestock are responsible for eighteen percent of carbon gas emissions.  
	A)	True
	B)	False

	14.	Life cycle analysis involves collecting information on the lifelong environmental impact of a product, all the way from extraction of raw material, to manufacturing, to its distribution, use and ultimate disposal. 
	A)	True
	B)	False

	15.	The Chicago Carbon Exchange was started in 2003 by a group of large companies to facilitate the exchange of carbon emission credits.  
	A)	True
	B)	False


Multiple Choice Questions

	16.	Which country is the largest emitter of greenhouse gasses.   
	A)	United States 
	B)	India 
	C)	China 
	D)	Russia 

	17.	The first World Summit on Sustainable development 		. 
	A)	took place in 2007. 
	B)	was held in Mexico City. 
	C)	created goals which have generally been met. 
	D)	none of the above are true. 

	18.	A shared resource, such as land, air, or water, that a group of people uses collectively is a(n): 
	A)	Economic village. 
	B)	Collective resource. 
	C)	Global unification. 
	D)	Commons. 

	19.	The only solution to protecting commons (also known as the paradox of the commons) is 
	A)	Restraint. 
	B)	Technology. 
	C)	Population control. 
	D)	Growth. 

	20.	Who was quoted as saying, “We now face the ultimate management challenge, that of managing our own future as a species?” 
	A)	Clarence Thomas. 
	B)	Maurice Strong. 
	C)	Strom Thurmond. 
	D)	Bill Clinton. 

	21.	Sustainable development: 
	A)	Meets the needs of the present while compromising the ability of future generations to meet their own needs. 
	B)	Gives precedence to environmental over economic considerations. 
	C)	Balances economic and environmental considerations. 
	D)	Sacrifices less important immediate needs in order to fulfill important future needs. 

	22.	The core idea(s) of sustainable development is (are): 
	A)	Protecting the environment will require economic development
	B)	Economic development must occur in a way that protects resources for future generations. 
	C)	Both A and B. 
	D)	Neither A or B. 

	23.	Which of the following is an example of a nonrenewable resource? 
	A)	Coal. 
	B)	Fresh water. 
	C)	Timber. 
	D)	Fish. 

	24.	Which of the following is NOT true regarding population growth: 
	A)	World population crossed 6 billion people in 1999. 
	B)	Over the next forty years roughly half of all population growth will occur in less develop countries. 
	C)	The world’s total industrial production will have to quintuple over the next forty years to maintain the same standard of living people currently have. 
	D)	All of the above are true. 

	25.	The Ganges river: 
	A)	Is becoming more polluted. 
	B)	Was cleaned up at a cost of three billions dollars.  
	C)	Is the longest river in China. 
	D)	None of the above are true. 

	26.	The international poverty line is 	 per day. 
	A)	$2 
	B)	$11 
	C)	$18
	D)	$23 

	27.	The top twenty percent of the world’s people have what percent of the world’s income:  
	A)	47
	B)	67
	C)	89 
	D)	73 

	28.	Which of the following is true about ecological footprint: 
	A)	Generally speaking, all industrialized countries have the same ecological footprint. 
	B)	The United Arab Emirates has the largest per capita ecological footprint. 
	C)	Per capita, Panama has a similar ecological footprint to the United States. 
	D)	Historical data has established that human society first exceeded world ecological capacity in the mid 1990s.

	29.	Which of the following is not advanced by the text as part of a solution to lower our global footprint: 
	A)	“Getting the prices right”. 
	B)	Technological innovation. 
	C)	Changing consumption pattern. 
	D)	Limiting development. 

	30.	A thin layer of gas that protects the earth from excessive ultraviolet radiation from the sun is: 
	A)	Ozone. 
	B)	Carbon dioxide. 
	C)	Methane. 
	D)	Oxygen. 

	31.	Which of the following statements is true about the Montreal Protocol? 
	A)	It is an agreement among nations to cut CFC production and use by fifty percent by 1996. 
	B)	The agreement was originally drafted to ban CFCs. 
	C)	The deadline for banning CFCs in developing countries was 2010. 
	D)	As of 2009, 120 countries had signed the protocol. 

	32.	Which of the following statements is (are) true? 
	A)	The earth has already warmed by between one-half and one degree Celsius over the past century. 
	B)	Deforestation increases carbon dioxide. 
	C)	Meat consumption is expected to remain constant or slightly decrease by 2050. 
	D)	All of the above are true. 

33.	Some scientists believe the earth's atmosphere is gradually warming, a trend that may lead to rising sea levels, drought, and dramatic changes in weather patterns. Although some disagree, most scientists argue that the primary cause of the current period of atmospheric warming is: 
	A)	The burning of fossil fuels. 
	B)	Deforestation. 
	C)	Volcanic activity. 
	D)	Methane gas released by farm animals. 

	34.	Which of the following countries has not ratified the Kyoto Protocol to reduce greenhouse gas emissions more than 5% below 1990 levels? 
	A)	Germany. 
	B)	France. 
	C)	United States. 
	D)	United Kingdom. 

	35.	According to eminent biologist Edward O. Wilson, the costs of decreasing biodiversity include: 
	A)	Every species extinction diminishes humanity. 
	B)	Species diversity is one of the planet's most important and irreplaceable resources. 
	C)	The capacity for natural genetic regeneration reduces with extermination of species. 
	D)	All of the above. 

	36.	Which of the following is not true about rain forests? 
	A)	They are the planet's richest areas in terms of biological diversity. 
	B)	To be characterized a rain forest, an area must receive at least 120 inches of rain a year. 
	C)	They account for about 7 percent of the earth's surface. 
	D)	They account for somewhere between 40 to 75 percent of the earth's species. 

	37.	Reasons for the destruction of rain forests include: 
	A)	Commercial logging. 
	B)	Cattle ranching. 
	C)	Conversion of forests to plantations. 
	D)	All of the above. 

	    38.   A goal of the World Business Council for Sustainable Development is to encourage: 
	A)	high standards of economic management. 
	B)	more companies to take advantage of carbon trading markets. 
	C)	a reduction in meat consumption. 
	D)	countries to save the rain forest. 

	39.	Life-cycle analysis involves: 
	A)	Accurately recording the production at ecological costs at each stage of a product's life cycle. 
	B)	Collecting information regarding the lifelong environmental impact of a product, from extraction to disposal. 
	C)	Reducing recycling costs for disposable products. 
	D)	Increasing productivity while improving the environment. 

	40.	Which of the following offers free recycling to its customers? 
	A)	Dell
	B)	Samsung
	C)	Sun Microsystems 
	D)	Laplata Technologies
 
	41.	Which of the following is an example of industrial ecology in practice? 
	A)	Using recycle bin. 
	B)	Using wastes from one process as raw materials for another process. 
	C)	Manufacturing recyclable containers for products. 
	D)	All of the above. 

	42.	Which of the following illustrates the idea of sustainable development through technological cooperation? 
	A)	Worldwide conferences to encourage developing countries to invest in technological joint ventures with other developing countries. 
	B)	The development of long-term partnerships between companies in developed and developing countries to transfer environmental technologies. 
	C)	Advanced countries developing and selling at a profit environment technologies to developing countries. 
	D)	All countries developing their own environmental technology in order to solve their own problems. 

43.	Which company became carbon neutral in 2008:
A)	Microsoft
B)	Dell
C)	Toshiba
D)	Pfizer

True/False Questions - Chapter 11

		1.	 FedEx rolled out its first hybrid truck in 2001. 
	A)	True
	B)	False
  
	2.	The first United States federal laws to protect the environment involved protecting navigable waterways. 
	A)	True
	B)	False

	3.	The EU has yet to adopt global warming initiatives. 
	A)	True
	B)	False

	4.	All air pollution is caused by man 
	A)	True
	B)	False

	5.	The United Sates produces almost five pounds of solid waste per person per day. 
	A)	True
	B)	False

	6.	Germany has had success in limiting waste by charging for trash pick up and picking up recyclables for free. 
	A)	True
	B)	False

	7.	CERCLA has been regarded as a public policy triumph in the clean up of toxic waste. 
	A)	True
	B)	False

	8.	The Clean Air Act of 1990 incorporated the concept of tradable permits as a key part of its approach to pollution reduction. 
	A)	True
	B)	False

	9.	Cap-and-trade is an example of a market based mechanism to control pollution. 
	A)	True
	B)	False

	10.	 In recent years, regulators have begun moving away from market based regulation.
	A)	True
	B)	False

	11.	Since 1989, about 1,000 individuals and companies have been found guilty of environmental crimes each year. 
	A)	True
	B)	False

	12.	Since the passage of the Clean Air Act amendments in 1990, nearly all major air pollutants in the United States has dropped substantially.
	A)	True
	B)	False

	13.	In 2007, Interface became the first ecologically sustainable organization. 
	A)	True
	B)	False

	14.	Greenwashing refers to misleading consumers about the ecological benefits of a product or service. 
	A)	True
	B)	False

	15.	Gold mining is one of the most environmentally destructive industries in the world.
	A)	True
	B)	False

Multiple Choice Questions

	16.	The Environmental Protection Agency (EPA) was: 
	A)	Created to monitor and regulate nuclear activity. 
	B)	Created in 1970 to coordinate most of the government's efforts to protect the environment. 
	C)	The final major piece of legislation dealing with environmental issues until 2003. 
	D)	All of the above. 

	17.	In the United States, the federal government regulates which of the following major areas of environmental protection? 
	A)	Air pollution. 
	B)	Water pollution. 
	C)	Land pollution. 
	D)	All of the above. 

	18.	Which of the following statements is true of air pollution? 
	A)	Air pollution occurs when more pollutants are emitted into the atmosphere than can be safely absorbed and diluted by natural processes. 
	B)	A quarter of the people in the U.S. were breathing unsafe air for at least part of the year. 
	C)	Ozone gas at the ground level helps reduce pollution. 
	D)	Benzene is only hazardous in large concentration. 

	19.	Which of the following statements is not true with respect to acid rain? 
	A)	In the United States, acid rain is prevalent in the Southeast. 
	B)	Acid rain occurs when carbon dioxide combines with water vapor in the atmosphere. 
	C)	Acid rain can reduce crop yields.
	D)	Acid rain degrades buildings. 

	20.	Which of the following is not true about water pollution? 
	A)	It can lead to the spread of the e coli virus. 
	B)	It can be caused by pesticides and herbicides. 
	C)	It can be caused by biodegradable products. 
	D)	The Water Pollution Control Act aims to maintain the integrity of all surface water in the United States. 

	21.	Which country has made the greatest progress in reducing its solid waste stream? 
	A)	United Kingdom 
	B)	Germany. 
	C)	Japan. 
	D)	United States. 

	22.	Which of the following is true about the Toxic Substances Control Act? 
	A)	It required cuts in urban smog, acid rain, and Greenhouse gas emissions. 
	B)	It allows the EPA to restrict, and, if necessary, ban toxic chemicals. 
	C)	It promoted nontoxic chemicals and fuels for business use. 
	D)	It authorized funds for treatment plants and toxic waste cleanup. 

	23.	 The Resource Conservation and Recovery Act of 1976 (amended in 1984) does not require: 
	A)	Toxic waste generators to have a permit. 
	B)	Transports to maintain careful records. 
	C)	Treatment of hazardous waste before disposal in landfills. 
	D)	All hazardous waste to be incinerated. 

	24.	Environmental justice is a movement to: 
	A)	Prevent inequitable exposure to risk, such as from hazardous waste. 
	B)	Identify polluters and require them to pay for the cleanup of their toxic waste. 
	C)	Reduce pollution at the source, rather than treat and dispose of waste at the “end of the pipe.” 
	D)	Specifically restrict the use of dangerous pesticides which can pollute groundwater. 

	25.	Which of the following statements is (are) true about the Comprehensive Environmental Response Compensation and Liability Act (CERCLA)? 
	A)	It established a fund supported primarily by a tax on the petroleum and chemical companies. 
	B)	It is regarded as one of the most successful environmental laws. 
	C)	The funds collected are used to clean up sites where the original polluter cannot be identified. 
	D)	Both A and C, but not B. 

	26.	Approximately what percentage of Americans live within four miles of a Superfund site? 
	A)	25%. 
	B)	33%. 
	C)	50%. 
	D)	67%. 

	27.	The environmental standards of pollution control is also called 			? 
	A)	Cap and trade. 
	B)	Emissions fee. 
	C)	Disclosure. 
	D)	Command and Control regulations. 

	28.	Which of the following is a market based mechanism for dealing with pollution? 
	A)	Command and control regulation. 
	B)	Source reduction. 
	C)	Emissions fee. 
	D)	None of the above are market based mechanisms. 

	29.	Which of the following is a disadvantage of the emissions fees and taxes approach of reducing pollution? 
	A)	Taxes may be too high to allow businesses to remain profitable. 
	B)	Taxes may be too low to curb pollution. 
	C)	Taxes will reduce competition among businesses. 
	D)	All of the above. 

	30.	Which of the following is not a cost of environmental regulation? 
	A)	Unemployment. 
	B)	Reduced capital investment. 
	C)	Corporate restructuring. 
	D)	Lowered productivity. 

	31.	Environmental regulations stimulate some sectors of the economy by: 
	A)	Creating jobs in industries like environmental consulting, asbestos abatement, and instrument manufacturing. 
	B)	Saving jobs in industries like fishing and tourism when natural areas are protected or restored. 
	C)	Compelling businesses to become more efficient by conserving energy, and less money is spent on treating health problems caused by pollution. 
	D)	All of the above. 

	32.	Which of the following is the primary disadvantage with the information disclosure system of reducing pollution: 
	A)	Business may not be honest 
	B)	The sanction may not motivate all companies. 
	C)	Enforcement is difficult. 
	D)	Can retard innovation.  

	33.	Which of the following is indicative of a firm in the pollution prevention stage of the corporate environmental responsibility model? 
	A)	Realizing that it would be less efficient and more expensive to prevent pollution before it is created. 
	B)	Focusing on all environmental impacts of the product life-cycle. 
	C)	Minimizing or eliminating waste before it is created. 
	D)	Incurring losses due to environmental costs. 

	34.	Which of the following is the most advanced stage of corporate environmental responsibility? 
	A)	Pollution prevention stage. 
	B)	Clean technology stage. 
	C)	Product stewardship stage. 
	D)	Green management stage. 

	35.	Businesses in the clean technology stage: 
	A)	Actively manage environmental issues. 
	B)	Have well-funded programs for environmental technology. 
	C)	Evaluate cyber technology-related risks. 
	D)	Develop innovative technologies that support sustainability. 

	36.	Companies in the United Kingdom and Japan are motivated to “go green” due to: 
	A)	The chance to gain competitive advantage. 
	B)	A desire to gain approval from the public sector or regulators. 
	C)	A moral commitment to ecological responsibility. 
	D)	All of the above. 

	37.	When businesses form voluntary, collaborative partnerships with environmental organizations and regulators to achieve specific objectives this is called: 
	A)	Interorganizational alliances. 
	B)	Environmental partnerships. 
	C)	Cross-functional teams. 
	D)	Command and control. 

	39.	Some researchers believe that business firms moving towards ecological sustainability results in: 
	A)	Competitive advantages. 
	B)	Decreased worker productivity. 
	C)	More government regulation. 
	D)	Less money for shareholders. 

	40.	Environmental staff experts are most effective 			.  
	A)	When they deal directly with the CEO. 
	B)	with “triple green” companies. 
	C)	when they work closely with people who carry out a company’s daily operations. 
	D)	when supervised directly by the Board of Directors. 

	41.	Creating and advertising ecological responsible goods and services is: 
	A)	Technological innovation. 
	B)	Product differentiation. 
	C)	Green marketing. 
	D)	Cost savings. 

	42.	Greenwashing is: 
	A)	Technology which allows water to be recycled after a product is cleaned. 
	B)	Misleading customers about the environmental benefits of a product. 
	C)	The final stage of corporate social responsibility. 
	D)	Ecological groups threatening to embarrass companies which they deem to be ecologically irresponsible. 

	43.	A solution of 			 is used to leach gold. 
	A)	Arsenic. 
	B)	Cyanide. 
	C)	Chlorine. 
	D)	Ammonia 


True/False Questions - Chapter 12

	1.	AT & T angered some customers by sending them unsolicited texts urging them to watch American Idol.
	A)	True
	B)	False

	2.	Per the text, the dominant feature of technology is ubiquity. 
	A)	True
	B)	False

	3.	Technology is self-reinforcing. 
	A)	True
	B)	False

	4.	Per the text, the industrial phrase of technology began approximately in year 1900. 
	A)	True
	B)	False

	5.	The current phase of technology is the service society. 
	A)	True
	B)	False

	6.	Government investment has helped launch many new technologies. 
	A)	True
	B)	False

	7.	As of 2008, the number of internet users in the United States and China is roughly the same.
	A)	True
	B)	False


8.	Commerce conducted by cell phone is also called C-commerce. 
	A)	True
	B)	False

	9.	MySpace’s growth peaked in 2005, and at its peak had slightly greater than 90 million members. 
	A)	True
	B)	False

	10.	The practice of duping computer users to reveal their passwords is known as phishing. 
	A)	True
	B)	False

	11.	By 2008, the ratio of students to computers was 1 to 1. 
	A)	True
	B)	False

	12.	The University of Phoenix is the largest for-profit education provider. 
	A)	True
	B)	False

	13.	By 2011, most experts believe that all medical records will be digitized. 
	A)	True
	B)	False

	14.	The gap between those who have technology and those who do not was called the digital divide. 
	A)	True
	B)	False

	15.	Due to technological development, it appears that the digital divide is widening. 
	A)	True
	B)	False

Multiple Choice Questions

	16.	Repeatedly technology has erupted and has: 
	A)	Exerted tremendous influence on business. 
	B)	Exerted tremendous influence on humankind. 
	C)	Exerted tremendous influence on the world. 
	D)	All of the above. 

	17.	The semantic technology phase began in: 
	A)	1700. 
	B)	1800. 
	C)	1900. 
	D)	2000. 

	18.	Which of the following Technology phase was the first in time?
	A)	Semantic. 
	B)	Industrial. 
	C)	Service. 
	D)	Informational. 

	19.	Google was started primarily with 		. 
	A)	Government funding. 
	B)	Business investment. 
	C)	Private investment. 
	D)	University investment. 

	20.	As of 2008, what percentage of the Chinese population was an internet user: 
	A)	13%. 
	B)	19%. 
	C)	26%. 
	D)	41%. 

	21.	As of 2008, which of these four countries had the most internet users?
	A)	Brazil.	
	B)	Germany.
	C)	Russia.	
	D)	Spain.

	22.	Which of the following is not true about the service phase of technology? 
	A)	It dominated from 1900 to 1960. 
	B)	It emphasized providing services. 
	C)	It required manual and intellectual skills. 
	D)	It was the fourth phase in the development of technology. 

	23.	The phase of technology that focuses on building material goods: 
	A)	Agrarian. 
	B)	Service. 
	C)	Industrial. 
	D)	Information. 

	24.	The information phase of technology primarily requires: 
	A)	Providing services. 
	B)	Intellectual and electronic skills. 
	C)	Manual and machine skills. 
	D)	The same skills as needed in previous phases. 

	25.	Cyberspace, an electronic network of linked systems, is where: 
	A)	Old, deleted files are sent until the recycle bin is emptied. 
	B)	Business-to-business commerce is conducted. 
	C)	Government strategic plans are stored, safe from computer hackers. 
	D)	Information is stored, ideas are described, and communication takes place. 

     26.	The buying and selling of goods and services electronically is called: 
	A)	M-commerce. 
	B)	E-commerce. 
	C)	Telecommunications. 
	D)	Software piracy. 

	27.	As of 2008, it is estimated that 		 people worldwide had started a blog. 
	A)	106 million. 
	B)	152 million. 
	C)	186 million. 
	D)	204 million. 

	28.	A hacking technique that redirects a user’s computer from a legitimate website to another by altering the user’s router is known as: 
	A)	Phishing. 
	B)	Pharming. 
	C)	Site bombing
	D)	DDT

	29.	In 2009, China censored a youtube video which showed alleged police brutality in what city?
	A)	Peking. 
	B)	Beijing. 
	C)	Hanoi. 
	D)	Lhasa. 

	30.	By 2007, how many postsecondary students were taking at least on online case? 
	A)	2.6 million. 
	B)	3.1 million. 
	C)	3.5 million. 
	D)	3.9 million. 

	31.	Phishing is: 
	A)	Duping computer users into revealing their password. 
	B)	Has been eradicated due to filters. 
	C)	Is primarily organized by American gangs. 
	D)	All of the above. 

	32.	In a study which allowed cell phones in classrooms in Chicago, San Diego and Florida: 
	A)	The students with cell phones did roughly the same as student without cell phones.
	B)	Students with cell phones were twice as likely as students without cell phones to fail the final exam
	C)	Students with the phones did twenty five percent better on the final algebra exam.
	D   	Showed inconclusive results.

	33.	Cyberchondriacs is a term for: 
	A)	people who stay home from work, pretending to be ill but are actually playing games or interacting on social networking sites. 
	B)	people who leap to dreadful conclusions when researching health matters online. 
	C)	people who leave inappropriate remarks in comment sections of blogs. 
	D)	people who refuse to use the internet.
 
	34.	Which of the following has lead to an explosion in e-commerce: 
	A)	Ease of Access and affordability. 
	B)	Rise of China. 
	C)	Collapse of the Soviet Union. 
	D)	The United Nations taking control over the internet. 

	35.	The University of Phoenix: 
	A)	Was fined $17,000,000 for security breaches.
	B)	Declared bankruptcy in 2006.
	C)	Has over 300,000 online students.
	D)	Is the world’s largest non-profit education provider. 

	36.	The digital divide describes the gap between: 
	A)	Those individuals who have technology and those who do not. 
	B)	Those businesses who use e-business and those who do not. 
	C)	Those hospitals who use online information and those who do not. 
	D)	Those individuals who have broadband technology and those who do not. 

	37.	Businesses believe that the digital divide: 
	A)	Represents a business opportunity. 
	B)	Is not real and can be ignored. 
	C)	Has been eliminated by government programs. 
	D)	Will always be with us. 


True/False Questions - Chapter 13

	1.	NFL player Shawn Merriman was irate when a positive drug test was not destroyed after analysis as promised.   
	A)	True
	B)	False

	2.	In 2008, ABC learned while televising the Olympics that time-delayed broadcasts may be uncontrollable.  
	A)	True
	B)	False

	3.	The personal data of Minnesota driver license holder’s can be purchased. 
	A)	True
	B)	False

	4.	In 1988, there were 1,738 attacks on information security. 
	A)	True
	B)	False

	5.	P3P provides sellers with embedded spyware. 
	A)	True
	B)	False

	6.	COPPA is a public-private co-operative venture to protect privacy rights in Belgium 
	A)	True
	B)	False

	7.	Microsoft supported the “surf the net- think privacy” video competition
	A)	True
	B)	False

	8.	Honeypots are systems used by security professionals to trap group or individuals who create worms. 
	A)	True
	B)	False

	9.	There is pornography on the internet. (Easiest question ever) 
	A)	True
	B)	False

	10.	The Child Online Protection Act of 1998 specifically applies to children aged 14 to 17. 
	A)	True
	B)	False

	11.	Porn revenue is greater than the combined revenue of all professional baseball, football and basketball teams. 
	A)	True
	B)	False

	12.	Software piracy is a global problem. 
	A)	True
	B)	False

	13.	Streaming is illegal and in violation of The Digital Millennium Copyright Act of 1998. 
	A)	True
	B)	False

	14.	Tissue engineering is defined as the growth of tissue in a laboratory dish for experimental research
	A)	True
	B)	False

	15.	Genetic engineering allows scientists to insert virtually any gene into a plant to create a new crop or an entire new species. 
	A)	True
	B)	False

Multiple Choice Questions

	16.	Nanotechnology is the: 
	A)	Ability to create items on an atomic scale. 
	B)	More advanced form of E-commerce. 
	C)	Technological innovation developed by an entrepreneurial firm. 
	D)	All of the above. 

	17.	What Sun Microsystems’ scientist warned of the dangers of rapid technological advances: 
	A)	William Earnest
	B)	Bill Joy.
	C)	Fred Stevens. 
	D)	Bernard White. 

	18.	A privacy policy generally: 
	A)	Explains what use of the company’s technology is permissible.
	B)  	Explains how the business will monitor employee activity.
	C)	Explains the legal privacy rights employees have under federal law. 
	D)	A and B but not C. 

	19.	As of 2008, approximately how many attacks had there been on information security: 
	A)	1 million. 
	B)	4 million. 
	C)	8 million. 
	D)	20 million. 

	20.	In what year was Data Privacy day first recognized? 
	A)	2005. 
	B)	2006. 
	C)	2007. 
	D)	2008. 

	21.	Of these four possibilities, which is a CIO most likely to report to:
	A)	CEO. 
	B)	CFO. 
	C)	CMO. 
	D)	Board of Directors. 

     22.  “Bit” 
	A)	Is a Russian hacker. 
	B)	Anonymously posted the code for Microsoft’s operating system. 
	C)	Founded gigabit.com.
	D)	Was arrested in Manila in 2004.

	23.	Honeypots are: 
	A)	A series of Disney-created web sites for children. 
	B)	Adult web sites offering fee-for-service information. 
	C)	Government programs that profile computer hackers. 
	D)	Systems used to lure hackers into a fabricated web site. 

	24.	A CIO is the company's: 
	A)	Chief intelligence officer. 
	B)	Chief information officer. 
	C)	Coordinator of international operations. 
	D)	Controller of internal overhead. 

	25.	There are approximately 		 pornographic web sites: 
	A)	1.8 million 
	B)	4 million 
	C)	11 million 
	D)	17.3 million 

	26.	Which of the following is NOT a commercial porn-blocking software? 
	A)	Cyber Snoop. 
	B)	Child Safe. 
	C)	Stop Now. 
	D)	Net Nanny. 

	27.	GetNetWise, launched by several major Internet companies, provided: 
	A)	Reading material for parents on adult oriented sites. 
	B)	Downloadable software. 
	C)	Passwords that make accessing pornography impossible. 
	D)	A and B but not C. 

	28.	The Child Online Privacy Protection Act, 
	A)	Was struck down by a Federal Judge in 2007. 
	B)	Has settled the debate over protecting children from adult-oriented web sites. 
	C)	Is another name for COPPA. 
	D)	Was vetoed by President Bush as being too difficult and too costly to enforce. 

	31.	In the United States, intellectual property is protected by: 
	A)	Copyright laws. 
	B)	Trademark laws. 
	C)	Patent laws. 
	D)	All of the above. 

	32.	Loss of annual sales due to software piracy by software companies was estimated to be: 
	A)	$12 billion. 
	B)	$22 billion. 
	C)	$52 billion. 
	D)	1 trillion dollars. 

	33.	Per the text, how much has the motion picture industry lost to worldwide piracy: 
	A)	$3.2 billion 
	B)	$4.2 billion 
	C)	$6.1 billion 
	D)	$6.9 billion 

	34.	What company first sequenced the humane genome: 
	A)	Celera. 
	B)	Biodime. 
	C)	Philips. 
	D)	Centrex. 

	35.	According to Bill Joy, Sun Microsystems' chief scientist, the twenty-first century technologies: 
	A)	Are the safest and most human-friendly known to civilization. 
	B)	Must be controlled by the companies that invest them to protect society. 
	C)	Can be used for good if government and business work together. 
	D)	Are so powerful they can spawn whole new classes of accidents and abuses. 

	37.	In 2008, the annual budget for civil biodefense funding was: 
	A)	$4 billion. 
	B)	$8.1 billion. 
	C)	$7 billion. 
	D)	$5.5 billion 

	38.	Genetically modified foods were embraced in: 
	A)	France. 
	B)	Portugal. 
	C)	China. 
	D)	A and C but not B. 


True/False Questions - Chapter 14

	1.	The three types of stockholders who own shares of stock in United States corporations are individuals, institutions, and secular. 
	A)	True
	B)	False

	2.	The government is considered an institutional investor. 
	A)	True
	B)	False

	3.	Investors always choose to invest in the stock of companies that pay high dividends. 
	A)	True
	B)	False

	4.	African American households are more likely to own stock than Hispanic households 
	A)	True
	B)	False

	5.	Typically, Boards of Directors meet in full 8 times a year. 
	A)	True
	B)	False

	6.	The New York Stock Exchange requires listed companies to have a majority of outside directors on its Board of Directors. 
	A)	True
	B)	False

	7.	Executive compensation is set by the Board of Directors. 
	A)	True
	B)	False

	8.	Executive compensation is substantially higher in the United States than in Germany.
	A)	True
	B)	False

	9.	One study established that the higher the proportion of executive pay in stock options, the more likely a company must restate profits.
	A)	True
	B)	False

	10.	The influence of the institutional sector of the stock market has grown over the past two decades. 
	A)	True
	B)	False

	11.	Boards of Directors of large companies are careful to make sure that members of the Compensation committee have no relationship to the current CEO.  
	A)	True
	B)	False

	12.	In 2007, CEOs in the United States made 406 times what the average employee made.
	A)	True
	B)	False

	13.	The ratio of average employee pay to CEO pay peaked at 480 times in 1990.
	A)	True
	B)	False

	14.	In 2009, shareholders at Pfizer voted themselves an advisory vote on executive compensation. 
	A)	True
	B)	False

	15.	The second Bush administration cut staffing at the SEC. 
	A)	True
	B)	False

Multiple Choice Questions

	16.	The largest bailout in U.S. history was which company.
	A)	Enron. 
	B)  	AIG. 
	C)	Wells Fargo. 
	D)	General Motors. 

	17.	Which of the following is not true about institutional investors? 
	A)	Institutions invest the funds of individuals by purchasing shares of stock in corporations. 
	B)	The proportion of institutional ownership of stock in the U.S. has declined slowly since the 1960s. 
	C)	The government is an institutional investor. 
	D)	Institutions accounted for 75 percent of the value of all equities owned in the U.S. in 2007. 

	18.	Investors may receive an economic benefit from the ownership of stock by: 
	A)	Receiving federal reserve credits. 
	B)	Receiving dividends. 
	C)	Receiving interest. 
	D)	Both b and c, but not a. 

	19.	Which if the following is not a legal right of stockholders: 
	A)	To vote on members for the board of directors. 
	B)	To vote on major mergers and acquisitions. 
	C)	To vote on changes in the corporate charter. 
	D)	To vote on who will become chief executive officer (CEO). 

	20.	An individual who cannot attend an annual stockholder’s meeting can vote by: 
	A)	Marker. 
	B)	Proxy. 
	C)	Check. 
	D)	Que. 

	21.	The directors of a company are a central factor in corporate governance because: 
	A)	They establish corporate objectives and develop broad policies. 
	B)	They have the highest stake in the performance of the company. 
	C)	They have a moral responsibility to fulfill the needs of both the company's employees and customers. 
	D)	They inherited the business from their predecessors. 

	22.	Which of the following is true about corporate boards? 
	A)	Corporate boards average 10 members. 
	B)	About half of the directors are “outside” directors. 
	C)	Approximately one-third of all companies have at least one woman on their board. 
	D)	About half of all companies have at least one ethnic minority board member. 

	23.	In 2007, the median compensation of board members at the largest U.S. companies was approximately: 
	A)	$119,000. 
	B)	$185,000. 
	C)	$193,000. 
	D)	$205,000. 

24.	In the United States, which committee is almost always comprised solely of outsiders
A)	Audit
B)	Procurement
C)	Standards and Practices
D)	Safety Compliance

	25.	Colin Carter was a co-author of:
	A)	Way too much!!! Executive compensation in the Western World
	B)	How to run an ethical business
	C)	Back to the Drawing Board 
	D)	What hath we wrought? Conflict of interest in 2000 and beyond

	26.	How are directors of boards selected? 
	A)	Shareholders elect the directors from a list of candidates. 
	B)	The company's CEO appoints the directors. 
	C)	The nominating committee elects the directors. 
	D)	Shareholders with the greatest share in the company become directors. 

	27.	The concept of recovering pay from executives with failing companies is also known as:
	A)	“off the top”
	B)	“clawback”
	C) 	 “return to sender.
	D)	None of the above. 

	28.	Who earned $686 million over 13 years at Exxon Mobil. 
	A)	Charles Smithson 
	B)	Lee Raymond 
	C)	Dennis Kozlowski
	D)	Frederick Thompson 

	29.	Which CEO of AIG earned $1 in 2008. 	
	A)	Edward Liddy 
	B)	Douglas Sandhaus 
	C)	Judith Smylie 
	D)	Paul Randazzo 

	30.	What is the primary organization which represents institutional and investment funds investors: 	
	A)	TIA. 
	B)	CII. 
	C)	LOP. 
	D)	TBI. 

	31.	According to Social investment forum, socially responsible investment grew more than 		% between 2005 and 2007. 
	A)	18 
	B)	7 
	C)	27 
	D)	11

	32.	Stock options can best be described as: 
	A)	The right to buy a company's stock at the price at incorporation. 
	B)	The right to buy a company's stock at a strike price for a certain period. 
	C)	The obligation to buy a company's stock at the price at incorporation. 
	D)	The obligation to buy a company's stock at a strike price for a certain period. 

	33.	Social responsibility shareholder resolutions generally garner approximately 		% of the vote? 
	A)	15
	B)	25 
	C)	33 
	D)	50 

	34.	The SEC was founded in:
	A)	1896 
	B)	1919 
	C)	1934 
	D)	1951 

	35.	In 2009, what company voted to give itself an advisory role in executively salary setting: 
	A)	Merck 
	B)	New Amsterdam 
	C)	Pfizer 
	D)	Smithson Enterprises 

	36.	The social objectives of investing in stocks include eliminating from investment portfolios companies that: 
	A)	Pollute the environment. 
	B)	Discriminate against employees. 
	C)	Make dangerous products like tobacco or weapons. 
	D)	All of the above. 

	37.	Which of the following is not an example of fulfilling social objectives through stock ownership? 
	A)	Selling stock of companies that did business in South Africa when it had a policy of racial discrimination. 
	B)	Divesting from Chinese companies that made products by forced labor. 
	C)	Selling stock of companies with a below-market rate of return. 
	D)	Not investing in Burmese companies that had been accused of human rights abuses. 

	38.	The mission of the Securities and Exchange Commission (SEC) is to: 
	A)	Protect shareholders' rights by making sure that stock markets are run fairly. 
	B)	Protect companies from hostile takeovers. 
	C)	Ensuring that institutional investors do not take control of company management. 
	D)	Ensuring that the federal treasury receives its share of the revenues from stock trading. 

	39.	In response to concerns about the lack of transparency in financial accounting, Congress passed a new law called: 
	A)	COT (Corporate Openness Now). 
	B)	Principles of Corporate Governance. 
	C)	Sarbanes-Oxley Act. 
	D)	Securities and Exchange Act. 

	40.	Which of the following is not an instance of “insider trading”? 
	A)	An auditor using nonpublic information about the company to invest in its stock. 
	B)	A marketing executive briefing stock analysts on the company's sales performance. 
	C)	The CEO's cousin buying stock after the CEO mentioned a pending offer to buy the company. 
	D)	A stock broker passing an “inside tip” to a client, but not trading for his or her own account. 

41.	Which of the following companies is NOT generally believed to have filed fraudulent financial statements in the early 2000s?
A)	Comcast
B)	Adelphi
C)	Enrom
D)	WorldCom

42.	Bernie Madoff’s victims lost approximately
A)	fifty billion dollars
B)	fifty five billion dollars
C)	sixty billion dollars
D)	sixty five billion dollars


True/False Questions - Chapter 15


	1.	In January, 2009, 19,000 people became ill by eating contaminated chicken. 
	A)	True
	B)	False

	2.	Companies such as MTV and McDonalds use “nueromarketing” to better understand how to boost the effectiveness of advertising. 
	A)	True
	B)	False

	3.	After the fall of Communism, a consumer movement has blossomed in Central Europe. 
	A)	True
	B)	False

	4.	Consumer advocacy groups in the United States actively promote and speak for the interests of millions of consumers. 
	A)	True
	B)	False

	5.	The right to satisfaction is generally considered the primary consumer right. 
	A)	True
	B)	False

	6.	In the U.S. The FCC enforces the law prohibiting deceptive advertising. 
	A)	True
	B)	False

	7.	Countrywide mortgage was the largest mortgage lender in The United States until it collapsed in July, 2008. 
	A)	True
	B)	False

	8.	The Federal Trade Commission's mission includes the safety and effectiveness of a wide range of consumer products, including pharmaceutical drugs, medical devices, foods and cosmetics. 
	A)	True
	B)	False

	9.	A “cookie” is an identifying mark placed on a user's computer hard drive during visits to some Web sites. 
	A)	True
	B)	False

	10.	Critics of consumer privacy self-regulation by the industry fear that the industry rules would be too weak.
	A)	True
	B)	False

	11.	In the United States, the legal system has generally looked unfavorably on consumer claims. 
	A)	True
	B)	False

	12.	The CAN-SPAM effect went into effect in 2007. 
	A)	True
	B)	False

	13.	Huge product liability verdicts, though often well publicized, are the exception not the rule.
	A)	True
	B)	False

	14.	In 2005, Congress passed a law which required most large class-action suits to be moved from federal to state court. 
	A)	True
	B)	False

	15.	Gun liability law suits have not fared well in Courts: 
	A)	True
	B)	False

Multiple Choice Questions

	16.	Which of the following is an NGO that represents over 220 consumer groups in 115 countries: 
	A)	Consumers Union. 
	B)	Consumers Abroad. 
	C)	Consumers International. 
	D)	Consumers Today. 

	17.	Which of the following is (are) provisions for consumers under the consumer bill of rights? 
	A)	The right to safety. 
	B)	The right to be represented. 
	C)	The right to purchase. 
	D)	All of the above. 

	18.	The “right to be heard” assures that: 
	A)	Consumers' interests will receive full and sympathetic consideration in the formulation of government policy. 
	B)	Consumers will be protected against fraudulent or misleading information. 
	C)	Consumers will be assured satisfactory quality and service at a fair price. 
	D)	Consumers will be given all the facts to make an informed choice. 

	19.	Which of the following consumer products is not a consumer right? 
	A)	The right to be protected. 
	B)	The right to be informed. 
	C)	The right to choose. 
	D)	The right to privacy. 

	20.	Which of the following is not a reason for the consumer movement? 
	A)	Unreliable and unsafe products. 
	B)	Promotion of harmful products. 
	C)	Increased competition among corporations. 
	D)	Misleading advertising claims for some goods and services. 

	21.	Consumers have become more dependent on businesses for product quality because: 
	A)	The complexity of products makes choices complicated for consumers. 
	B)	Instructions for use or care of product are provided in clear and simple language. 
	C)	Their technical competence allows them to inspect the products thoroughly. 
	D)	Competition has forced manufacturers to market lower-quality goods. 

	22.	Which of the following statements is not true about the organization Consumers Union (the publisher of Consumer Reports magazine)? 
	A)	It is involved in activities promoting the interests of consumers. 
	B)	It conducts extensive tests on selected consumer products and services. 
	C)	It is supported by the federal government. 
	D)	It publishes the results of tests, with ratings on brand-name basis, in magazines. 

	23.	Which of the following is true: 
	A)	Food manufacturers must list the number of calories in bottled foods. 
	B)	Labels may, but are not required, to list the amount of trans fat in foods. 
	C)	A food item must be deemed organic by the FDA to advertise itself as organic. 
	D)	A, B and C are all true. 

	24.	Which of the following is not a responsibility of the Federal Trade Commission:
	A)	Competitive pricing.
	B)	Online Privacy. 
	C)	Packaging and labeling.
	D)	Safety standards for consumer products.

	25.	Which of the following departments was established in 1914 and has been given additional powers to protect consumers over the years, including in the area of online privacy? 
	A)	Federal Trade Commission. 
	B)	Food and Drug Administration. 
	C)	Consumer Product Safety Commission. 
	D)	Antitrust Division of the Department of Justice.  

	26.	Which of the following is a mission of the Food and Drug Administration? 
	A)	To assure the safety and effectiveness of a wide range of consumer products. 
	B)	To prohibit unfair or deceptive advertising. 
	C)	Toxic chemicals research. 
	D)	Inspection of meat, poultry, seafood, and produce. 

	27.	An identifying marker placed on a user's computer hard drive during visits to some Web sites is called a: 
	A)	Spy. 
	B)	Virus. 
	C)	Cookie. 
	D)	Firewall. 

	28.	The burden of responsibility for product performance has shifted to the producer, under the legal doctrine of: 
	A)	Strict liability. 
	B)	Product liability. 
	C)	Consumer liability. 
	D)	Supplier liability. 

	29.	According to the doctrine of strict liability, which of the following statements is not true? 
	A)	It is not necessary for consumers to prove negligence or breach of warranty by the producer. 
	B)	The consumer's own negligence is not an acceptable defense by the manufacturer. 
	C)	Manufacturers can be held liable if a product is inherently dangerous. 
	D)	This doctrine extends only to those involved in supplying parts for the final product. 

	30.	Many companies have argued that the evolution of strict liability has: 
	A)	Unfairly burdened them with excess costs. 
	B)	Decreased liability insurance rates. 
	C)	Increased corporate revenues and dividends. 
	D)	Changed top management's attitude about the consumer. 

	31.	Which of the following was NOT part of the Class Action Fairness Act: 
	A)	The burden of proving liability was shifted to the consumer.
	B)	Uniform standards were set up to determine liability. 
	C)	Judges rather than juries would determine the original amount of punitive damages. 
	D)	Most large class action suits were moved from state to federal court. 

	32.	Which hotelier agreed in 2000 to pay $8 million dollars to settle a class-action racial discrimination lawsuit.
	A)	Hilton. 
	B)	Adam’s Mark. 
	C)	Sheraton. 
	D)	Ramada Inn.

    	33. 	I went to jail for violating the CAN-SPAM act.  Who am I? 
	A)	Sarah Moreland 
	B)	Scott Karp 
	C)	Adam Vitale 
	D)	Alan Sanders 

	34.	Businesses can take a number of measures to respond voluntarily to consumer demands.  Which of the following is an example of such a measure? 
	A)	Voluntary Product recalls
	B)	Industry codes of conduct 
	C)	Consumer advocacy groups 
	D)	Alternative dispute resolution policies 

35.	An acronym for a way to resolve lawsuits without going to court is
A)	COP
B)	ADR
C)	ALJ
D)	EDL

36.	What over the counter medicine is used to make methamphetamine
A)	Tylenol
B)	Nyquil
C)	Sudafed
D)	Nightall
	
37.	In 2000, how much did Americans spend on fast food?
A)	$6 billion
B)	19 billion
C)	$43 billion
D)	$110 billion

	38.	What was the nickname of the bill introduced in 2005 to limit the fast food industry’s liability?
A)	hamburger bill
B)	Cheeseburger bill
C)	McDonald’s protection act
D)	McCheese bill

38.	What company quickly removed an ad that referred to mothers who “wear their babies”.
A)	McDonalds
B)	Pfizer
C)	Merck
D)	Johnson & Johnson

39.	What company launched an advertising campaign in 2001 under the slogan “Live Richly”
E)	Citigroup
F)	Househould Financial Services
G)	JP Morgan
H)	EF Hutton


True/False -Chapter 16

	1.	The employment relationship confers rights and duties on both sides. 
	A)	True
	B)	False

	2.	OSHA is a private organization that represent workers on job safety issues.
	A)	True
	B)	False

	3.	Studies show that Union and non-union workers earn roughly the same amount of income and benefits. 
	A)	True
	B)	False

	4.	Some labor unions have departed from their traditional adversarial approach to work cooperatively with employers for their mutual benefit. 
	A)	True
	B)	False

	5.	Ergonomics is another name for adapting the worker to the job.
	A)	True
	B)	False

	6.	Employment-at-will is a legal doctrine that means employees are hired and retain their jobs at the sole discretion of the employer. 
	A)	True
	B)	False

	7.	The implied understanding between an organization and its stakeholder is sometimes referred to as a social contract. 
	A)	True
	B)	False

	8.	In a business context, “privacy rights” refers primarily to protecting an individual's personal life from unwarranted intrusion by his or her employer. 
	A)	True
	B)	False

	9.	For the most part, electronic monitoring of employees is legal.
	A)	True
	B)	False

	10.	According to a recent study, nearly ninety percent of all companies test employees or job applicants for drugs. 
	A)	True
	B)	False

	11.	Drug testing for cause is commonly used after an accident or some observable change in behavior. 
	A)	True
	B)	False

	12.	In general, employee assistance programs have been very cost effective. 
	A)	True
	B)	False

	13.	The American Psychological Association noted there is a significant potential for honesty tests to generate false negatives.
	A)	True
	B)	False

	14.	The term labor standards refers to the conditions under which a company's employees, or others in the commercial chain, work. 
	A)	True
	B)	False

	15.	In 2009, Merck paid $1.4 billion to settle charges it had illegally marketed Zyprexa. 
	A)	True
	B)	False

Multiple Choice Questions

	16.	If someone is entitled to be treated a certain way, this refers to a: 
	A)	Relationship. 
	B)	Obligation. 
	C)	Duty. 
	D)	Right. 

	17.	To which of the following does (do) most employees in the United States have a legal right? 
	A)	To organize and bargain collectively. 
	B)	To a safe and healthy workplace. 
	C)	To a job. 
	D)	A and B, but not C. 

	18.	An employee for which team was terminated for saying detrimental things about his employer on his Facebook page.
	A)	Los Angeles Raiders. 
	B)	Cleveland Browns. 
	C)	Detroit Lions. 
	D)	Philadelphia Eagles. 

	19.	Under U.S. laws: 
	A)	Only private workers have the right to hold an election to choose what union they want to represent them, if any. 
	B)	Only public workers have the right to hold an election to choose what union they want to represent them, if any. 
	C)	Most private and public workers have the right to hold an election to choose what union they want to represent them, if any. 
	D)	Only the employer has the right to hold an election to choose what unions they want to represent the workers within the organization, if any. 

	20.	During the 1930s, many workers joined unions, and the ranks of organized labor grew rapidly.  This was called: 
	A)	The New Union Period. 
	B)	The New Deal Period. 
	C)	The Worker-Employer Bargaining Period. 
	D)	The Labor Union Era. 

	21.	Since the mid-1950s the proportion of American workers represented by unions has: 
	A)	Decreased. 
	B)	Increased. 
	C)	Remained about the same. 
	D)	Grown significantly in the manufacturing sector. 

	22.	Which of the following employees is listed in the text as more likely to suffer from repetitive motion disorders.
	A)	Meat Cutter 
	B)	Bartender 
	C)	Soldier 
	D)	Editor.

	23.	The Occupational Safety and Health Act gives workers the right to a job: 
	A)	With a legally mandated wage in which wages are common in the areas of similar kinds of work. 
	B)	With fair and equitable wages in order for an employee to enjoy a decent standard of living. 
	C)	Free from recognized hazards that are causing or likely to cause death or serious physical harm. 
	D)	Free from assigning duties to workers that require them to lift, bend, or move items at any time on the job. 

	24.	Approximately how many workers are murdered annually in the United States: 
	A)	one thousand 
	B)	six hundred 
	C)	four hundred 
	D)	eight hundred 

	25.	What law requires most large employers to provide 60 days notice when laying off 500 or more workers (acronym)? 
	A)	WARN 
	B)	STOP
	C)	JAG
	D)	SDA
 
	26.	Privacy rights seek to protect the employees' private lives from: 
	A)	Competitors' actions. 
	B)	Workplace violence. 
	C)	Unwarranted intrusion by the employer. 
	D)	Pressure to unionize. 

	27.	Roughly how many Americans are independent contractors
	A)	1 in 14 
	B)	1 in 19 
	C)	1 in 27 
	D)	1 in 33 

	28.	 Which of the following is true about random drug testing of employees? 
	A)	It may occur at various times through the year. 
	B)	It randomly tests selected applicants before hiring, as a part of a physical examination. 
	C)	It tests an employee believed to be impaired by drugs and unfit for work. 
	D)	All of the above are true of random drug testing. 

	29.	Which of the following is not an argument favoring employee drug testing? 
	A)	It improves employee productivity. 
	B)	It decreases employee theft and absenteeism. 
	C)	It promotes safety in the workplace. 
	D)	It is an intrusion on individual privacy. 

	30.	Which of the following is (are) true about Employee Assistance Programs (EAPs)? 
	A)	They offer counseling and follow-up to alcohol abusers. 
	B)	Roughly 60 percent of Fortune 500 employers offer EAPs for alcohol users. 
	C)	General Motors believed that it has saved $2,100 for every worker enrolled in the program. 
	D)	All of the above 

	31.	The Employee Polygraph Protection Act became law in? 
	A)	1974
	B)	1992 
	C)	1980 
	D)	1988 

	32.	Polygraph testing: 
	A)	Is encouraged by the Employee Polygraph Protection Act. 
	B)	Is used by 85 percent of U.S. companies as a pre-employment screening procedure. 
	C)	Has been replaced at some level by written psychological tests. 
	D)	Is used by 85 percent of U.S. companies to discover employee theft. 

	33.	Which of the following is (are) true about honesty tests? 
	A)	Employees welcome the opportunity to prove their honesty. 
	B)	It is a written psychological test trying to predict employee honesty on the job. 
	C)	It has been found to be an effective way of determining employees' integrity. 
	D)	All of the above are true. 

	34.	The right to free speech is protected in the: 
	A)	U.S. Constitution. 
	B)	U.S. Free Speech Amendment. 
	C)	U.S. False Claims Act. 
	D)	U.S. Fair Labor Standards Act. 

	35.	When an employee believes their employer has done something that is wrong or harmful to the public, and he or she reports alleged organizational misconduct to the media, government, or high-level company officials, what has occurred? 
	A)	Insider trading. 
	B)	Sharing information. 
	C)	Whistle-blowing. 
	D)	Shirking. 

	36.	The Sarbanes-Oxley Act makes it illegal for employers to: 
	A)	Sue federal contractors for fraud. 
	B)	Retaliate in any way against whistle-blowers who report information that could have an impact on the value of a company's shares. 
	C)	Hire employees that have a prior record of federal fraud or misconduct. 
	D)	B and C, but not A. 

	37.	Which law allows individuals who sue federal contractors for fraud to receive up to 30 percent of any amount recovered by the government? 
	A)	False Standards Act. 
	B)	Economic Priorities Act (as amended in 1999). 
	C)	U.S. False Claims Act (as amended in 1986). 
	D)	Fair Labor Standards Act. 

	38.	Only after which of the following conditions is (are) met, should the whistle-blower go public? 
	A)	The unreported act would do serious and considerable harm to the public. 
	B)	The employee has tried and failed to resolve the issue internally. 
	C)	Both A and B. 
	D)	None of the above. 

	39.	The conditions under which a company's employees work is called: 
	A)	Labor standards. 
	B)	Sweatshops. 
	C)	Accountability standards. 
	D)	Wage levels. 

	40.	The Council of Economic Priorities has developed a set of workplace rules called: 
	A)	ISO 9000. 
	B)	Social Accountability 8000. 
	C)	Global Compact. 
	D)	Caux Roundtable. 

	41.	When groups of companies define industry-wide standards that they can all agree to, these are called: 
	A)	Corporate labor  codes of conduct. 
	B)	NGO labor codes of conduct. 
	C)	Industry-wide labor codes. 
	D)	Fair wage levels. 

True/False Questions - Chapter 17

	1.	The term diversity refers to variation in the important human characteristics that distinguish people from one another. 
	A)	True
	B)	False

	2.	Today the U.S. workforce is as diverse as it has ever been. 
	A)	True
	B)	False

	3.	The pay gap refers to the inequitable concentration of a group, such as minorities or women, in a particular job category. 
	A)	True
	B)	False

	4.	The pay gap for Hispanic women declined by almost five percent since 2000.
	A)	True
	B)	False

	5.	Slightly more than 9 million U.S. women were working as managers by the late 2000s. 
	A)	True
	B)	False

	6.	Beginning on a major scale in the 1960s, U.S. presidents issued executive orders and Congress enacted laws intended to promote equal treatment of employees. 
	A)	True
	B)	False

	7.	The agency charged with enforcing equal opportunity laws and executive orders in the United States is the ADC. 
	A)	True
	B)	False

	8.	Affirmative action occurs when one group is unintentionally discriminated against in an effort to help another group. 
	A)	True
	B)	False

	9.	Under the 1996 McGruff Act, sexual harassment is limited to overt acts of individual coworkers or supervisors. 
	A)	True
	B)	False

	10.	It is believed that 40 to 70 percent of working women have told researchers that they have been sexually harassed on the job. 
	A)	True
	B)	False

	11.	Racial Discrimination is illegal under Title 11 of The Civil Rights Compact. 
	A)	True
	B)	False

	12.	More sexual harassment complaints are filed than sexual harassment cases. 
	A)	True
	B)	False

	13.	A diversity council is a group of managers and employees responsible for developing and implementing specific action plans to meet an organization's diversity goals. 
	A)	True
	B)	False

	14.	Roughly half of all mothers hold jobs in the United States. 
	A)	True
	B)	False

	15.	Under the Family Medical Leave Act, companies that employ 50 or more people must grant unpaid, job-protected leaves for up to 12 weeks to employees with serious family needs, including the birth or adoption of a baby. 
	A)	True
	B)	False

Multiple Choice Questions

	16.	The growing diversity in the U.S. workforce is due to: 
	A)	More women working than ever before. 
	B)	Immigration has reshaped the workplace. 
	C)	An aging workforce. 
	D)	All of the above. 

	17.	The variation in the important human characteristics that distinguish people from one another is called: 
	A)	Workforce. 
	B)	Diversity. 
	C)	Difference. 
	D)	Affirmative action. 

	18.	Age, ethnicity, gender, mental or physical abilities, race, and sexual orientation are what dimensions of diversity? 
	A)	Primary. 
	B)	Secondary. 
	C)	Tertiary. 
	D)	None of the above. 

	19.	By 2016, the Bureau of Labor Statistics estimates that what percentage of all workers will be women? 
	A)	25 percent. 
	B)	36 percent. 
	C)	47 percent. 
	D)	58 percent. 

	20.	Women working outside the home rose dramatically just after: 
	A)	World War I. 
	B)	World War II. 
	C)	The Korean War. 
	D)	The Vietnam War. 

	21.	Which of the following is NOT an adjective used to describe Millenials? 
	A)	Collaborative 
	B)	Pragmatic 
	C)	Technologically Savvy 
	D)	Globally Networked 

	22.	Women have entered the workforce: 
	A)	For income to support their families. 
	B)	Due to the inadequacies of retirement plans and health care programs. 
	C)	To sustain an accustomed standard of living. 
	D)	All of the above. 

	23.	Which of the following is not true about occupational segregation? 
	A)	It concentrates women in traditionally female-dominated jobs. 
	B)	The pay gap in American businesses persists, in part, because of it. 
	C)	White men have traditionally help most of the high paying jobs in a position. 
	D)	The large pay gap for Hispanic workers partly reflects their concentration in several high-paying occupations. 

	24.	The first African American to lead a major US company was 
	A)	Beyonce Knowles 
	B)	Ursula Burns 
	C)	Sandra Franklin 
	D)	Kelly Washington 
	
25.	 “Glass walls” refers to: 
	A)	Fewer opportunities for upward advancement. 
	B)	Fewer opportunities to move sideways into jobs that lead to the top. 
	C)	Reliance on word of mouth by recruiters for top positions -- “the old boys' network” from which women are excluded. 
	D)	A company's lack of commitment to diversity. 

	26.	How do “glass walls” differ from “glass ceilings?” 
	A)	They don't; they are the same thing. 
	B)	Glass walls do not exist, only glass ceilings are real. 
	C)	Glass walls apply to mid- and lower-level women managers. 
	D)	Glass walls focus on sideways promotions in the organization. 

	27.	How many people are employed by female headed businesses? 
	A)	11 million 
	B)	13 million 
	C)	16 million 
	D)	19 million 

	28.	Which of the following government rules on equal treatment of employees does not apply to businesses? 
	A)	Discrimination on the basis of race, color, religion, sex, national origin, disability or age is prohibited in all employment practices. 
	B)	Government contractors must have written positive affirmative action plans to overcome the past and present effects of discrimination in their work force. 
	C)	Women and men must receive equal pay for performing equal work. 
	D)	Affirmative action plans must be permanent. 

	29.	The Equal Employment Opportunity Commission was created in: 
	A)	1932. 
	B)	1964. 
	C)	1972. 
	D)	1990. 

	30.	Which of the following is not true about the Equal Employment Opportunity Commission (EEOC)? 
	A)	It is charged with enforcing federal equal employment opportunity laws and executive orders. 
	B)	It was created in 1964. 
	C)	It monitors foreign governments' employment practices. 
	D)	It was given added enforcement powers in 1972 and 1990. 

	31.	Which of the following is true about the ADA: 
	A)	It was passed in 1992. 
	B)	Discrimination against someone with AIDs Is prohibited. 
	C)	Despite its passage, the percentage of disabled Americans has not changed. 
	D)	Businesses have complained about the cost of compliance. 

	32.	In a 2009 case involving Frank Rizzo, the Supreme Court held that: 
	A)	Affirmative Action is Constitutional. 
	B)	Reverse discrimination is Constitutional. 
	C)	A city can discard test scores if they lead to a discriminatory result. 
	D)	You cannot discriminate against a person solely because he is white. 

	33.	Sexual harassment applies to: 
	A)	Only men who are being harassed. 
	B)	Only women who are being harassed. 
	C)	Either men or women who are being harassed. 
	D)	Only attractive employees who are being harassed. 

	34.	About what percent of incidents of sexual harassment are never reported? 
	A)	20 percent. 
	B)	40 percent. 
	C)	65 percent. 
	D)	90 percent. 

	35.	Which of the following is not a benefit of managing diversity effectively? 
	A)	These businesses get tax breaks from the federal government. 
	B)	These businesses can often more effectively serve customers. 
	C)	These businesses are better able to attract and retain workers from a variety of backgrounds. 
	D)	None of the above.  Each of these is a benefit of managing diversity effectively. 

	36.	Which of the following is an action that companies should take to manage diversity effectively? 
	A)	Only recruit at primarily minority colleges. 
	B)	Set up a diversity council to monitor the company's goals. 
	C)	Replace existing workers with ethnically diverse workers. 
	D)	All of the above. 

	37.	What percentage of Fortune 500 companies have diversity programs to promote sensitivity and awareness? 
	A)	25 percent. 
	B)	50 percent. 
	C)	75 percent. 
	D)	90 percent. 

	38.	According to one study, approximately how many businesses run some sort of flexed schedule: 
	A)	Twenty percent 
	B)	Fifty percent 
	C)	Sixty percent 
	D)	Eighty percent 

	39.	Which of the following is (are) true about child care programs? 
	A)	They help reduce employee absenteeism and tardiness. 
	B)	They aid in recruiting by improving the company's image. 
	C)	They help retain talented employees. 
	D)	All of the above.  

	40.	What did General Mills do to integrate family considerations into its operations? 
	A)	Established an on-site infant care center. 
	B)	Established on-site health care services. 
	C)	Offered exercise classes at the company's health and fitness center. 
	D)	All of the above. 

Chapter 18 True or False

1.	Whole Foods was founded in 1973 in San Francisco, California
	A)	True
	B)	False

	2.	The term community only refers to geographical areas. 
	A)	True
	B)	False

	3.	The community relies heavily on business, but business is not mutually dependent on its community
	A)	True
	B)	False

	4.	The Community Reinvestment Act does not require banks to demonstrate their commitment to local communities through low-income lending programs, but gives tax credits to lenders who comply with this rule. 
	A)	True
	B)	False

	5.	In 2006, Muhammad Yunus was awarded a Nobel Peace Prize for his work in the micro-credit world.  
	A)	True
	B)	False

	6.	Shorebank has become deeply involved in meeting the housing needs of low income residents in many cities, including Cleveland. 
	A)	True
	B)	False

	7.	Indianapolis was dubbed murderapolis in the mid-1990s because of the high murder rate.
	A)	True
	B)	False

	8.	After a 2008 Chinese earthquake, Coca Cola sent thousands of cases of bottled water to the region.
	A)	True
	B)	False

	9.	Newman’s Own gives all of its proceeds to charity? 
	A)	True
	B)	False

	10.	In 2008, individuals in the United States gave more than $307 billion dollars to non profit organizations.
	A)	True
	B)	False

	11.	In 2008, foundations gave more to charity than individuals. 
	A)	True
	B)	False

	12.	Matching gift contributions have generally been unaffected by the recent economic downturn. 
	A)	True
	B)	False

	13.	In 2007, over half of all U.S. corporate donations were in the form of in-kind gifts.
	A)	True
	B)	False

	14.	KaBOOM and Home Depot have teamed up to build over 1,000 play spaces.
	A)	True
	B)	False

	15.	The largest share of corporate giving goes to health and human services. 
	A)	True
	B)	False

Multiple Choice Questions

	16.	What company is listed in the text as donating 5 percent of its net profits to charitable causes? 
	A)	Whole Foods. 
	B)	Starbucks. 
	C)	Trader Joes. 
	D)	Panera. 

	17.	What entity conducted financial literacy classes for teens?
	A)	PriceWaterhouse. 
	B)	Chase Bank. 
	C)	ING. 
	D)	M & T Bank. 

	18.	Fence line community deals with:
	A)	Immediate neighbors. 
	B)	People who work near the company. 
	C)	Groups that share a common interest. 
	D)	Groups connected online with the company. 

	19.	Which of the following statements is true about the relationship between business and the community? 
	A)	It is one of mutual interdependence. 
	B)	Business has more responsibility towards community. 
	C)	Communities possess more social power than businesses do. 
	D)	All of the above statements are true. 

	20.	As of 2009, approximately how much in public funds had been spent on the new Yankees stadium: 
	A)	Eight hundred million dollars
	B)	Six hundred million dollars
	C)	One billion dollars
	D)	One billion two hundred million dollars 

	20.	The idea of civic engagement involves the: 
	A)	Active involvement of businesses and individuals in changing and improving communities. 
	B)	Competitive, free market environment, but staying within the law. 
	C)	Strong governmental presence to control businesses. 
	D)	Close and collaborative business-government relationship. 

	21.	When companies like Whole Foods Markets work to address community problems, their actions help build: 
	A)	Civic engagement. 
	B)	Social capital. 
	C)	Corporate foundations. 
	D)	Social contracts. 

	22.	According to a survey of community involvement managers, which of the following is considered the most important issue for community involvement?
	A)	Health Care. 
	B)	Housing. 
	C)	Pre-College education. 
	D)	College education. 

	23.	HEAL was an alliance formed in what state? 
	A)	Oregon. 
	B)	New Jersey. 
	C)	Minnesota. 
	D)	Ohio. 

	24.	What company donated loads of trial to help rebuild after hurricane Katrina? 
	A)	Duron. 
	B)	Artistic Tile. 
	C)	ADM. 
	D)	Tile Tomorrow
 
	25.	 The general rule for Microsoft is, if all things are equal, 			. 
	A)	use a minority company. 
	B)	buy American. 
	C)	look again. 
	D)	use the Union shop. 

	26.	What percentage of 2008 United States philanthropy was bequested? 
	A)	Two percent. 
	B)	Four percent. 
	C)	Seven percent. 
	D)	Nine percent. 

	27.	In the United States, when were tax rules created which encouraged corporate giving? 
	A)	1936. 
	B)	1945. 
	C)	1964. 
	D)	1971. 

	28.	Which of the following forms of corporate given were most adversely impacted by the recent economic downturn? 
	A)	In-kind giving. 
	B)	Volunteerism. 
	C)	Matching gifts. 
	D)	Foundational gifts. 

	29.	Which of the following is not a typical gift by a corporation or foundation?
	A)	Donations. 
	B)	In-kind contributions. 
	C)	Volunteer employees. 
	D)	All of the above are a typical gift.

	30.	What pharmaceutical company donated 8.7 percent of that years profits in medicinal donations?
	A)	Merck. 
	B)	Squib. 
	C)	Pfizer. 
	D)	Scherring-Plough. 

	31.	What Company provides for a paid sabbatical for employees for up to four months to work in a nonprofit of their choice? 
	A)	Motorola. 
	B)	Wells Fargo. 
	C)	IBM. 
	D)	Clear Channel. 

	32.	Which of the following groups has the highest priority in corporate giving? 
	A)	Health and Human Services. 
	B)	Arts and Culture. 
	C)	Environment. 
	D)	Civic and Community. 

	33.	Corporate giving that is linked directly or indirectly to business goals and objectives is known as 			. 
	A)	Strategic Philanthropy. 
	B)	Open ended giving. 
	C)	Total Immersion giving. 
	D)	None of the above. 

	34.	Microsoft providing free software to libraries is a strategic contribution known as: 
	A)	Factor Condition. 
	B)	Demand Condition. 
	C)	Issue Condition. 
	D)	In Kind condition. 

	35.	The first wave of business involvement with education issues is known as? 
	A)	Systemic Reform. 
	B)	Direct involvement. 
	C)	Secondary initiatives. 
	D)	Helping hand. 

	36.	What company formed the “Reinventing Education” initiative? 
	A)	IBM. 
	B)	Microsoft. 
	C)	Apple. 
	D)	Intel. 

	37.	What did Google do to when they wanted to get involved with Direct Relief International? 
	A)	Form an Asian chapter. 
	B)	Gave the organization free advertising. 
	C)	Donated $145 million in 2006 
	D)	None of the above. 

True/False Questions – Chapter 19

	1.	The Aqua Teen Hunger Force controversy dealt with advertising for a new show on Nick at Nite. 
	A)	True
	B)	False

	2.	Dominos Pizza had a huge public relations nightmare when two employees posted a Youtube video establishing that Dominos used less cheese on pizza than advertised. 
	A)	True
	B)	False

	3.	Per the text, general public includes individuals and groups. 
	A)	True
	B)	False

	4.	A good human resources department should first be reactive, then proactive. 
	A)	True
	B)	False

	5.	James Gruning is a University of Maryland Professor. 
	A)	True
	B)	False

	6.	Mark Cuban, owner of the Dallas Mavericks, is considered a Top 10 CEO blogger per Mario Sundar’s 2006 rankings.
	A)	True
	B)	False

	7.	According to The Counsel for Research Excellence, adults are exposed to some sort of screen for approximately 7 hours per day. 
	A)	True
	B)	False

	8.	Hollywould’s success is more proof that it is a new world for public relations.
	A)	True
	B)	False

	9.	The Longest Running PSA in American History features Woody Owl saying, “Give a hoot, don’t pollute.”. 
	A)	True
	B)	False

	10.	An example of an image ad is the former Domino’s Pizza ad promising a free pizza if it was not delivered in 30 minutes or less.
	A)	True
	B)	False

	11.	Harry and Louise were used by pro-health care reform groups in the 1990s and 2009. 
	A)	True
	B)	False

	12.	Harry and Louise ads are examples of issue advertising.
	A)	True
	B)	False

	13.	First amendment rights do NOT apply to business organizations. 
	A)	True
	B)	False

	14.	The FCC believes that their duties include fostering a more competitive business environment. 
	A)	True
	B)	False

	15.	In 2005, Anna Ayala attempted to extort money from McDonald’s by pretending she found a finger in her food. 
	A)	True
	B)	False

Multiple Choice Questions

	16.	Where did the Aqua Teen Hunger Force controversy take place: 
	A)	New York. 
	B)	Boston. 
	C)	Chicago. 
	D)	Los Angeles. 

	17.	According to Linda Thaler, 		 is the new exclusivity. 
	A)	TiVo. 
	B)	The Internet. 
	C)	Ubiquity. 
	D)	Viral marketing. 

	18.	What company advertised on paper linings in examination tables on 2,000 pediatrician offices: 
	A)	Disney. 
	B)	Burberry 
	C)	Pixar. 
	D)	Baby Gap 

	19.	James Grunig describes public relations as building good relations with 				. 
	A)	good neighbors 
	B)	stakeholders, be they friend or foe 
	C)	politicians and the public 
	D)	strategic publics 

	20.	Which of the following is NOT a professional core value for PRSA: 
	A)	Advocacy. 
	B)	Transparency. 
	C)	Loyalty. 
	D)	Fairness. 

	21.	Craig Newark of Craig’s list, provided links to the health care reform discussion being held at which of the following organization’s websites: 
	A)	Moveon. 
	B)	AARP. 
	C)	New Democrats. 
	D)	Public Policy. 

	22.	According to comScore, when did the number of people who accessed the internet from home or work exceed 1 billion: 
	A)	January, 2006. 
	B)	October, 2006. 
	C)	March, 2007. 
	D)	December, 2008. 

	23.	Brian Pickrell is a blogger who was secretly hired to help which company:
	A)	Walmart.
	B)	Home Depot.
	C)	Bed Bath & Beyond.
	D)	Nike. 

	24.	Who is the leading producer of PSAs: 
	A)	CIFRA. 
	B)	The Ad Council. 
	C)	Ad Plus. 
	D)	The New York Group. 

	25.	What Company publishes “The Good Sheet”. 
	A)	Starbucks. 
	B)	Whole Foods. 
	C)	McDonalds. 
	D)	Chick-Fil-A. 

	26.	What company developed an image ad campaign around the slogan “Power of Human Energy”.
	A)	Sun Microsystems. 
	B)	BP Petroleum. 
	C)	General Motors. 
	D)	Chevron. 

	27.	Which industry was noted in the text for heavy use of issue ads: 
	A)	Oil Industry. 
	B)	Pharmaceutical. 
	C)	Automotive. 
	D)	Fast Food industry. 

	25.	What couple is famous for their appearances in multiple issue ads about health care: 
	A)	Fred and Ethel. 
	B)	Tim and Laurie. 
	C)	Rob and Dee. 
	D)	Harry and Louise. 

	26.	Who said “Advertisements contain the only truth to be relied on in a newspaper.”
	A)	William Hearst
	B)	Thomas Jefferson
	C)	William Gates
	D)	Ray Kroc 

	27.	What federal entity is responsible for ensuring that honest and fairness are found in company advertising. 
	A)	FTC. 
	B)	DCC. 
	C)	FCC. 
	D)	None of the above. 

	28.	When was the FCC founded: 
	A)	1964
	B)	1934 
	C)	1945 
	D)	1979 

	29.	Which of the following is not a corporate crises as defined by The Institute of Crises Management?
	A)	Acts of God. 
	B)	Internet errors. 
	C)	Mechanical Problems. 
	D)	Human Errors. 

	30.	Which of the following industries was not identified by The Institute of Crises Management as more prone to corporate crises than others? 
	A)	Oil Companies. 
	B)	Medical Manufacturers. 
	C)	Pharmaceutical Companies. 
	D)	Software Companies.

	31.	What was Anna Ayala’s punishment when she plead guilty to attempted grand larceny and conspiring to file a false claim in 2005
	A)	$300,000 fine. 
	B)	Suspended prison sentence. 
	C)	$50,000 fine and 18 months in jail. 
	D)	Nine years in jail. 

	32.	What is the name for a website that is fully developed, ready to be activated when needed? 
	A)	Quiet site. 
	B)	Dark site.
	C)	Second site. 
	D)	Oops site.

	33.	Who should receive media training? 
	A)	CEOs. 
	B)	Rank and file Employees.
	C)	Human Resources Employees. 
	D)	Any employee who deals with the media.

	34.	Which of these is the news media looking for from a company when asking it about a crisis. 
	A)	Written statement. 
	B)	Sound bite. 
	C)	Statements corroborated by a CEO. 
	D)	Access to the Board of Directors. 

	35.	Which of these is making a statement which influences the next question?
	A)	Priming.
	B)	Push-pulling. 
	C)	Hooking. 
	D)	Flagging. 

	36.	Which of the following is answering a hard question but then moving quickly to the key message?
	A)	Flagging. 
	B)	Bridging. 
	C)	Hooking. 
	D)	Priming. 

	37.	Which of the following is emphasizing a key point and guiding reporters to them?
	A)	Flagging.
	B)	Bridging. 
	C)	Hooking. 
	D)	Priming.