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Chapter 18 - Ethical Considerations for Business



Multiple Choice
Identify the letter of the choice that best completes the statement or answers the question.
 

 1. 

Which of the following is NOT one of the competing views of corporate responsibility?
a.
The invisible hand.
c.
The hand of economics.
b.
The hand of government.
 

 2. 

A view of ethics which states that actions should be judged by their outcomes is called:
a.
Deontology.
c.
Philology.
b.
Teleology.
 

 3. 

What is backstage culture?
a.
Unethical practices carried out in secret.
c.
Cultural information which enables foreigners to understand a market.
b.
Knowledge that members of a culture are unwilling to share with outsiders.
 

 4. 

What does the Foreign Corrupt Practices Act prevent American companies from doing?
a.
Accepting bribes from foreigners.
c.
Encouraging foreigners to offer bribes to US officials.
b.
Offering bribes to foreigners.
 

 5. 

Why should one not give a clock to a Chinese business contact?
a.
It implies that you are in a hurry.
c.
It is thought to bring bad luck.
b.
It implies that you have plenty of time.
 

 6. 

What is reciprocity?
a.
Forcing a seller to buy something from the company he or she is trying to sell to.
c.
Offering a buyer a personal favour in exchange for placing an order.
b.
Helping a company when it is in trouble, for example by giving extended credit, in the expectation of an increase in purchases later as a show of gratitude.
 

 7. 

Why might a buyer ask a foreign company to inflate the invoice?
a.
To build up credit for future transactions.
c.
To act as a bribe.
b.
To avoid exchange controls and export cash.
 

 8. 

A standard which is acceptable in all cultures and organizations is called:
a.
A hypernorm.
c.
A moral free space.
b.
A consistent norm.
 

 9. 

What is guangxi?
a.
A system for eliminating bribes.
c.
A system for monitoring business behavior in order to maintain ethical standards.
b.
A system for establishing social obligations by doing favours.
 

 10. 

Approximately what proportion of companies specify that buyers are not allowed to accept gifts?
a.
10%.
c.
50%.
b.
80%
 



 
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