Multiple Choice Answers

1. The concept of Corporate Social Responsibility originated in which time period?
a. 1920’s and 1930’s
b. 19th Century
c. 1980’s and 1990’s
d. 1960’s and 1970’s
2. Worldwide, about ___________ percent of businesses in the private sector are small or medium
a. 80
b. 85
c. 90
d. 99
3. The generally accepted definition of a small business is one with ____________ or fewer
a. 10
b. 20
c. 25
d. 50
4. The generally accepted definition of a medium business is one with _____________ or fewer
a. 50
c. 200
d. 250
5. In the United States, small or medium sized businesses provide over ___________ percent of
total employment.
a. 25
b. 40
c. 50
d. 75

Unit 3 Examination 140 BAM 530 Business Ethics
6. Owners of stock in a corporation are only liable for ____________.
a. the amount they have invested in the company’s stock
b. their personal assets
c. the amount they have invested in the company’s stock and their personal assets
d. none of the above.
7. A ____________ of an issue consists of weighing and balancing all of the competing demands on
a firm by each of those who have a claim on it.
a. stakeholder analysis
b. board of directors analysis
c. corporation analysis
d. management analysis
9. In large corporations, the ____________ is/are the legal overseers of management.
a. CEO
b. shareholders
c. board members
d. none of the above
10. The ____________ position is that a corporation can and should be evaluated not only in terms of its financial bottom line, but also in terms of its environmental bottom line and its social/ethical bottom line.
a. Bottom line
b. Double Bottom line
c. Triple Bottom line 
d. Final line
11. Triple Bottom Line reporting refers to:
a. using a low, medium and high estimates for profitability forecasts.
b. measuring the impact of the firm on stockholders, customers and employees.
c. measuring the social, environmental, and financial performance of the firm.
d. measuring the impact of local, state, and federal governments on the firm.

Unit 3 Examination 141 BAM 530 Business Ethics
12. Corporate governance can be defined as:
a. the system used by firms to control the actions of their employees.
b. the election process used to vote in a new Board of Director.
c. the corporate compliance system used by the firm.
d. the system used by firms to identify who the critical stakeholders are for the firm.
13. The system that is used by firms to control and direct their operations and the operations of
their employees is called:
a. Corporate Compliance.
b. Corporate Governance.
c. Corporate Control.
d. Corporate Directive.
16. What is the name of the process in which an employee informs another responsible employee
in the company about potentially unethical behavior?
a. Whistle-blowing
b. Purging and releasing
c. Identification
d, Information transfer
17. There are ___________ conditions that, if satisfied, change the moral status of whistle blowing.
a. three
b. four
c. five
d. six

Unit 3 Examination 142 BAM 530 Business Ethics
18. An example of a whistle blower whose actions were a form of internal government whistle
blowing is:
a. Sherron Watkins.
b. Coleen Rowley.
c. Cynthia Cooper.
d. Lee Iacocca.
19. One whistle blower the text mentions is Cynthia Cooper who was the vice president of
internal audit at ____________.
a. Enron
b. WorldCom 
c. Tyco
d. none of the above
21. A whistle-blower:
a. doesn’t have to be a past or present member of the organization.
b. doesn’t have to report activity that is illegal, immoral, or harmful.
c. is any employer who spreads gossip.
d. far from being disloyal, may be acting in the best interest of the organization.
22. The Sarbanes-Oxley Act:
a. makes it easier to fire whistle blowers.
b. reduces the law’s protection of employees who disclose securities fraud.
c. makes it illegal for executives to retaliate against employees who report possible 
violations of federal law
d. provides penalties for blowing the whistle illegitimately or maliciously.
23. Inside traders ordinarily defend their actions by claiming that they don’t injure:
a. their boss.
b. their family.
c. the government.
d. anyone.

24. Shareholders have the right to know all except:
a. Information on the management of the corporation
b. Trade secrets 
c. The companies financial position
d. The companies general plans for the future.
25. Which act provides sweeping new legal protection for employees who report possible securities
fraud making it unlawful for companies to “discharge, demote, suspend, threaten, harass, or in
any other manner discriminate against” them?
a. Sarbanes-Oxley Act of 2002 
b. Foreign Corruption Act
c. Economic Espionage Act
d. U.S. vs. O’Hagan