Answer Manual for the Psychology Test Pt 11

Revision 4 Question 1 Correct Mark 1.00 out of 1.00 Flag question Question text Which of the following models of corporate social responsibility (CSR) considers business as a citizen of the society that it operates in? Select one: a. philanthropic model b. economic model c. stakeholder model Correct d. altruistic model Feedback The correct answer is: stakeholder model Question 2 Correct Mark 1.00 out of 1.00 Flag question Question text Which of the following is an example of a firm that is failing its fundamental social responsibility? Select one: a. a firm that prioritizes environmental sustainability b. a firm that is financially unstable c. a firm that has its loss margins exceeding its profit margins d. a firm that uses resources at unsustainable rates Correct Feedback The correct answer is: a firm that uses resources at unsustainable rates Question 3 Correct Mark 1.00 out of 1.00 Flag question Question text Which of the following qualities would an effective decision maker display when considering the available alternatives for ethical decision making? Select one: a. servant leadership b. moral imagination Correct c. social entrepreneurship d. reciprocal obligation Feedback The correct answer is: moral imagination Question 4 Correct Mark 1.00 out of 1.00 Remove flag Question text In the context of elements of the Committee of Sponsoring Organizations, identify a true statement about information and communications. Select one: a. They are directed at providing assessment capabilities and uncovering vulnerabilities. b. They address the policies and procedures that support the control environment. c. They are directed at supporting the control environment through fair and truthful transmission of information. Correct d. They set the tone of an organization, influencing the control consciousness of its people. Feedback The correct answer is: They are directed at supporting the control environment through fair and truthful transmission of information. Question 5 Correct Mark 1.00 out of 1.00 Flag question Question text Which of the following is the most demanding social responsibility? Select one: a. A business should engage in charitable work for the development of the society. b. A business should not sell a product that causes harm to consumers. Correct c. A business should prevent harm even in those cases where it is not the cause. d. A business should volunteer for society or environment-friendly work. Feedback The correct answer is: A business should not sell a product that causes harm to consumers. Question 6 Correct Mark 1.00 out of 1.00 Flag question Question text Which of the following would be advocated by the "administrative" version of utilitarianism? Select one: a. risk-taking by consumers b. reliance on free and competitive markets c. deregulation of advertising standards d. government regulation of business Correct Feedback The correct answer is: government regulation of business Question 7 Correct Mark 1.00 out of 1.00 Flag question Question text A professional is said to have ________ if he has a professional and ethical obligation to clients rooted in trust that overrides his personal interests. Select one: a. fiduciary duties Correct b. executive rights c. creditor claims d. statutory duties Feedback The correct answer is: fiduciary duties Question 8 Correct Mark 1.00 out of 1.00 Remove flag Question text Identify a true statement about Section 301 of the Sarbanes-Oxley Act. Select one: a. It prohibits various forms of professional services that are determined to be consulting rather than auditing. b. It outlines the codes of ethics for senior financial officers. c. It outlines the rules of professional responsibility for attorneys. d. It mandates that a majority of a public company’s board should be independents. Correct Feedback The correct answer is: It mandates that a majority of a public company’s board should be independents. Question 9 Correct Mark 1.00 out of 1.00 Flag question Question text ________ is one element that distinguishes good people who make ethically responsible decisions from good people who do not. Select one: a. Inattentional blindness b. Change blindness c. Normative myopia d. Moral imagination Correct Feedback The correct answer is: Moral imagination Question 10 Correct Mark 1.00 out of 1.00 Remove flag Question text In the context of corporate boards, which of the following is true of board members? Select one: a. Board members should continually engage in closed conversations to determine what they do or do not know. b. Board members are denied the legal right to question the ethics of their firm’s executives and others. c. Board members need to understand where the company is heading and whether it is realistic that it will get there. Correct d. Board members have a fiduciary duty to each other by U.S. law. Feedback The correct answer is: Board members need to understand where the company is heading and whether it is realistic that it will get there. Question 11 Correct Mark 1.00 out of 1.00 Flag question Question text Identify the role of analysts as “gatekeepers.” Select one: a. They ensure that decisions and transactions conform to the law. b. They evaluate a company’s financial prospects or creditworthiness. Correct c. They function as intermediaries between a company’s stockholders and its executives. d. They verify a company’s financial statements. Feedback The correct answer is: They evaluate a company’s financial prospects or creditworthiness. Question 12 Correct Mark 1.00 out of 1.00 Remove flag Question text Identify a true statement about accounting. Select one: a. It offers a system of rules and principles that govern the format and content of financial statements. Correct b. It offers corporate boards some specifics regarding ways to mitigate eventual fines by paying attention to ethics and compliance. c. It includes those elements of an organization that support people in the achievement of the organization’s objectives. d. It is a system of principles applied to present the ethical and environmental position of a business. Feedback The correct answer is: It offers a system of rules and principles that govern the format and content of financial statements. Question 13 Correct Mark 1.00 out of 1.00 Flag question Question text Which of the following is true of a market version of utilitarianism? Select one: a. A government regulator determines the safety standards in the marketplace. b. Social science determines policies to maximize the overall good. c. Questions of safety and risk are determined by experts. d. Individuals calculate for themselves what risks they wish to take. Correct Feedback The correct answer is: Individuals calculate for themselves what risks they wish to take. Question 14 Correct Mark 1.00 out of 1.00 Flag question Question text Identify the gatekeepers who guarantee that executives act on behalf of the stockholders’ interests. Select one: a. board of directors Correct b. underwriters c. district attorneys d. auditors Feedback The correct answer is: board of directors Question 15 Correct Mark 1.00 out of 1.00 Flag question Question text Section 307 of the Sarbanes-Oxley Act requires Select one: a. disclosure of audit committee financial expert. b. management assessment of internal controls. c. lawyers to report concerns of wrongdoing if not addressed. Correct d. corporates to disclose codes of ethics for senior financial officers. Feedback The correct answer is: lawyers to report concerns of wrongdoing if not addressed. Question 16 Correct Mark 1.00 out of 1.00 Flag question Question text Which of the following statements commits the ethical oversight known as normative myopia? Select one: a. "I hope Brad has learnt his lesson after getting drunk and crashing his car." b. "The only reason they did not notice the pilferage happening is because it involved the theft of such small quantities of goods over a long period of time." c. "I strongly believe in the saying, ‘finders keepers, losers weepers.'" Correct d. "I skipped the red light because I was so involved in our debate." Feedback The correct answer is: "I strongly believe in the saying, ‘finders keepers, losers weepers.'" Question 17 Correct Mark 1.00 out of 1.00 Flag question Question text Sara, an employee of PentaComp Inc., passed on confidential information of her company to her friend. Her friend benefitted from selling PentaComp’s stock based on the information shared by Sara. In this scenario, Sara can be convicted of ________. Select one: a. underreporting income b. falsifying documents c. evading taxes d. insider trading Correct Feedback The correct answer is: insider trading Question 18 Correct Mark 1.00 out of 1.00 Flag question Question text Which of the following principles does utilitarianism emphasize? Select one: a. acting only out of self-interest b. obeying the law and keeping promises c. ensuring that a fair decision is an impartial decision d. producing the greatest good for the greatest number Correct Feedback The correct answer is: producing the greatest good for the greatest number Question 19 Correct Mark 1.00 out of 1.00 Flag question Question text ________ requires that an economic value be placed on one’s life and bodily integrity. Select one: a. Cost variance analysis b. Cost-benefit analysis Correct c. Cost margin analysis d. Cost-effectiveness analysis Feedback The correct answer is: Cost-benefit analysis Question 20 Correct Mark 1.00 out of 1.00 Flag question Question text Which of the following is a similarity between utilitarianism and stakeholder theory? Select one: a. Both place organizational benefits above other considerations. b. Both contribute to society in ways that go beyond the narrow obligations of law and economics. c. Both consider the consequences of management decisions for the well-being of all affected groups. Correct d. Both strive to focus only on consumers. Feedback The correct answer is: Both consider the consequences of management decisions for the wellbeing of all affected groups. Question 21 Incorrect Mark 0.00 out of 1.00 Flag question Question text Which of the following is true of philanthropy in accordance with the economic model of corporate social responsibility? Select one: a. Philanthropy is considered a social contribution rather than an investment. b. Philanthropy done for reputational reasons and financial ends is ethically responsible. c. Philanthropy done for solely financial benefits is not truly an act of social responsibility. Incorrect d. Philanthropy done for reputational reasons is not fully ethical. Feedback The correct answer is: Philanthropy done for reputational reasons and financial ends is ethically responsible. Question 22 Correct Mark 1.00 out of 1.00 Flag question Question text Which step in the ethical decision-making process occurs once you have considered how a decision affects stakeholders by comparing and weighing the alternatives? Select one: a. identifying the ethical issues involved b. identifying key stakeholders c. monitoring and learning from outcomes d. making a decision Correct Feedback The correct answer is: making a decision Question 23 Correct Mark 1.00 out of 1.00 Flag question Question text The function of auditors as gatekeepers is to Select one: a. ensure that decisions and transactions conform to the law. b. verify a company’s financial statements so that investors’ decisions are free from fraud and deception. Correct c. function as intermediaries between a company’s stockholders and its executives. d. evaluate a company’s financial prospects or creditworthiness, so that banks and investors can make informed decisions. Feedback The correct answer is: verify a company’s financial statements so that investors’ decisions are free from fraud and deception. Question 24 Correct Mark 1.00 out of 1.00 Flag question Question text According to Kevin Bahr, which of the following is a cause for conflicts in the financial markets? Select one: a. the independence and expertise of audit committees b. self-regulation of the accounting profession Correct c. the presence of shareholder activism d. long-term executive greed versus short-term shareholder wealth Feedback The correct answer is: self-regulation of the accounting profession Question 25 Incorrect Mark 0.00 out of 1.00 Remove flag Question text In the context of elements of the Committee of Sponsoring Organizations, which of the following statements is true of control environment? Select one: a. It addresses the risks that may hinder the achievement of corporate objectives. b. It focuses on uncovering vulnerabilities. c. It focuses on providing assessment capabilities. Incorrect d. It sets the tone or culture of a firm. Feedback The correct answer is: It sets the tone or culture of a firm. Question 26 Correct Mark 1.00 out of 1.00 Flag question Question text Misappropriation of proprietary knowledge is an example of ________. Select one: a. corporate espionage b. asset overstating c. inventory theft d. insider trading Correct Feedback The correct answer is: insider trading Question 27 Correct Mark 1.00 out of 1.00 Flag question Question text With regard to health and safety at a workplace, ________ can be determined by comparing the probabilities of harm involved in various activities. Select one: a. relative risks Correct b. absolute impediments c. comparative barriers d. variable obstacles Feedback The correct answer is: relative risks Question 28 Incorrect Mark 0.00 out of 1.00 Flag question Question text Tom, an employee of Electronixx, adjusted credits and debits of the company’s ledger to show high profits. He also created false documents, underreported the company’s income, and evaded paying taxes for a year. Tom can be convicted for ________. Select one: a. conflicts of interest in accounting b. unfair executive excessive compensation c. conflicts of interest in corporate governance Incorrect d. unethical insider trading Feedback The correct answer is: conflicts of interest in accounting Question 29 Correct Mark 1.00 out of 1.00 Flag question Question text Which of the following is a challenge associated with ethical pay offs? Select one: a. It ruins the reputation that triggered it. b. It is very small in comparison to profits. c. It can easily be duplicated by competitors. d. It is very difficult to measure ethical pay offs. Correct Feedback The correct answer is: It is very difficult to measure ethical pay offs. Question 30 Correct Mark 1.00 out of 1.00 Flag question Question text ________ refers to shortsightedness about values. Select one: a. Normative myopia Correct b. Change blindness c. Descriptive myopia d. Inattentional blindness Feedback The correct answer is: Normative myopia Question 31 Correct Mark 1.00 out of 1.00 Flag question Question text With regard to health and safety at a workplace, ________ can be defined as the probability of harm. Select one: a. barriers b. impediments c. obstacles d. risks Correct Feedback The correct answer is: risks Question 32 Correct Mark 1.00 out of 1.00 Flag question Question text Identify the gatekeepers who function as intermediaries between a company’s stockholders and its executives. Select one: a. financial analysts b. accountants c. board of directors Correct d. auditors Feedback The correct answer is: board of directors Question 33 Correct Mark 1.00 out of 1.00 Flag question Question text Identify an external mechanism that seeks to ensure ethical corporate governance. Select one: a. the COSO framework b. the Sarbanes-Oxley Act Correct c. the European Union 7 th Directive d. the European Union 4 th Directive Feedback The correct answer is: the Sarbanes-Oxley Act Question 34 Correct Mark 1.00 out of 1.00 Flag question Question text Which of the following statements reflects the approach of a principle-based ethical tradition? Select one: a. ends justify the means b. maximize the overall good c. survival of the fittest d. obey the law Correct Feedback The correct answer is: obey the law Question 35 Correct Mark 1.00 out of 1.00 Remove flag Question text Gatekeepers are professionals who Select one: a. decide the board members of a company. b. serve as intermediaries between market participants. Correct c. hold private inside information about a company. d. are employed by the government to ensure fair marketplace activities. Feedback The correct answer is: serve as intermediaries between market participants. Question 36 Correct Mark 1.00 out of 1.00 Flag question Question text Identify the duty of obedience according to which board members should strive toward corporate objectives and are not permitted to act in a way that is inconsistent with the central goals of an organization. Select one: a. duty of care b. duty of loyalty c. duty of candor d. duty of good faith Correct Feedback The correct answer is: duty of good faith Question 37 Incorrect Mark 0.00 out of 1.00 Remove flag Question text Which of the following is a feature of the economic model of corporate social responsibility (CSR)? Select one: a. Corporations are understood to be a particular legal form of property that the owners get to use for their own ends. b. Managers are not employees who must work to further the owners' interests, primarily by maximizing profits. c. Shareholders are not at the center of a corporation. Incorrect d. Managers have a primary responsibility to pursue profit outside the limitations of the law. Feedback The correct answer is: Corporations are understood to be a particular legal form of property that the owners get to use for their own ends. Question 38 Correct Mark 1.00 out of 1.00 Flag question Question text According to the Federal Sentencing Guidelines (FSG) for boards, a board must Select one: a. leave the evaluation of all board policies, procedures, governance structure, and position descriptions to the executives. b. always resolve conflicts of interest in favor of an individual board member. c. work with executives to analyze the incentives for ethical behavior. Correct d. avoid exercising reasonable oversight with respect to the effectiveness and implementation of an ethics program. Feedback The correct answer is: work with executives to analyze the incentives for ethical behavior. Question 39 Correct Mark 1.00 out of 1.00 Remove flag Question text Which of the following is true of philosophical ethics? Select one: a. It provides justifications that must be applicable to all people regardless of their religious starting points. Correct b. It is concerned with how business institutions ought to be structured. c. It tends to disconnect the "oughts" and "shoulds" of ethics from the underlying account of human well-being. d. It explains human well-being in religious terms. Feedback The correct answer is: It provides justifications that must be applicable to all people regardless of their religious starting points. Question 40 Incorrect Mark 0.00 out of 1.00 Remove flag Question text A ________ exists where a person holds a position of trust that requires that he exercise judgment on behalf of others, but where his personal concerns are in dispute with those of others. Select one: a. conflict of interest b. duty of care c. community of interest d. duty of loyalty Incorrect Feedback The correct answer is: conflict of interest