 |
| 1 | |
Robert D. Hay and Edmund R. Gray, who believe that corporations have a responsibility to society that extends beyond merely maximizing profit, note that for the first 150 years of American history, people embraced the theory that social goals could be achieved by |
| | A) | changing American values. |
| | B) | balancing the interests of several groups with interests in the business. |
| | C) | pursuing individual interests. |
| | D) | old-fashioned hard work and commitment. |
|
|
|
| 2 | |
In the opinion of Alexei M. Marcoux, who does not believe that corporations have a responsibility to society that extends beyond merely maximizing profit, the manifold failings of stakeholder theory should be taken to reflect poorly on |
| | A) | American morality. |
| | B) | stakeholder theory itself. |
| | C) | the project of business ethics. |
| | D) | the free-market system. |
|
|
|
| 3 | |
In the opinion of Larry Gross, who believes that the corporate strategy of downsizing is unethical, the short-term advantages of downsizing benefit |
| | A) | a very small segment of the organization if at all. |
| | B) | shareholders only. |
| | C) | upper management only. |
| | D) | no part of the organization. |
|
|
|
| 4 | |
Joseph T. Gilbert, who does not believe that the corporate strategy of downsizing is unethical, believes that what must sometimes enter into considerations of justice and fairness is |
| | A) | loyalty. |
| | B) | morality. |
| | C) | calculation. |
| | D) | all of the above |
|
|
|
| 5 | |
According to Chris Provis, who believes that bluffing during business negotiations is unethical, people's beliefs that deceptive behavior is widespread may be partly the result of |
| | A) | public relations error. |
| | B) | media distortion. |
| | C) | a misinterpretation of the real facts. |
| | D) | a self-fulfilling prophecy. |
|
|
|
| 6 | |
Fritz Allhoff, who does not believe that bluffing during business negotiations is unethical, examines the analogy between business negotiations and games and concludes that business negotiations is |
| | A) | a game. |
| | B) | more serious than a game. |
| | C) | part of a bigger game. |
| | D) | unlike a game. |
|
|
|
| 7 | |
With regard to government suits, which one of the following would Robert B. Thompson, who believes that insider trading should be legalized, consider an example of the dominant basis on which trading occurs? |
| | A) | in advance of a tender offer |
| | B) | when a chief executive resigns or is fired |
| | C) | when the stock market takes a sudden tumble |
| | D) | when economic news is announced |
|
|
|
| 8 | |
Stephen Bainbridge, who does not believe that insider trading should be legalized, concludes that property rights in information should be assigned to |
| | A) | patent holders. |
| | B) | a relevant party. |
| | C) | insiders. |
| | D) | the corporation. |
|
|
|
| 9 | |
John H. McWhorter, who believes that affirmative action has outlived its usefulness in the workplace, finds it significant that the four richest people in America consist of |
| | A) | three college dropouts and one graduate of a lower university. |
| | B) | three graduates and one dropout from top universities. |
| | C) | three blacks who made their own wealth and one white who graduated from a top university. |
| | D) | three whites who inherited their wealth and one black who made his own wealth. |
|
|
|
| 10 | |
Judith C. Appelbaum, who does not believe that affirmative action has outlived its usefulness in the workplace, cites all of the following as examples of how communities benefit from affirmative action except |
| | A) | an improvement in the bottom line that a diverse workforce brings to employers. |
| | B) | racial integration of law enforcement lessening tension between minority communities and the police. |
| | C) | minority graduates becoming unusually active in civic affairs. |
| | D) | a drop in crime rates as minorities become better education and employed in better jobs. |
|
|
|
| 11 | |
According to Ying-Tzu Lu and Brian H. Kleiner, who believe that workplace drug testing is a wise corporate policy, which of the following forms of drug testing have most court decisions indicated are unreasonable and unlawful? |
| | A) | random testing |
| | B) | pre-employment testing |
| | C) | post-accident testing |
| | D) | none of the above |
|
|
|
| 12 | |
Jacob Sullum, who does not believe that workplace drug testing is a wise corporate policy, contends that employers would treat marijuana and other illegal intoxicants the way they treat alcohol--as a problem only when it interferes with work--if it weren't for the |
| | A) | increasing toxicity of such drugs. |
| | B) | increasing acceptance of drug testing as a business practice. |
| | C) | way drug testing boosts confidence and morale of fellow employees. |
| | D) | war on drugs. |
|
|
|
| 13 | |
In the opinion of Nancy R. Lockwood, who believes that diversity in the workplace is a worthwhile goal for corporations, acknowledgment of different needs yields |
| | A) | lower turnover. |
| | B) | greater productivity. |
| | C) | employee loyalty. |
| | D) | all of the above |
|
|
|
| 14 | |
Roger Clegg, who does not believe that diversity in the workplace is a worthwhile goal for corporations, contends that the reason so many African American children reach age 18 with poor educational skills has less to do with |
| | A) | the insulation of public schools from competition. |
| | B) | the amount of money spent on public schools. |
| | C) | high illegitimacy rates. |
| | D) | the too-widespread cultural belief that studying hard is "acting white." |
|
|
|
| 15 | |
According to Stephen J. Rose and Heidi L. Hartman, who believe that gender discrimination is the main reason women are paid less than men, within each of the six gender-tier categories, the percentage of workers of one gender is |
| | A) | 10 percent. |
| | B) | 25 percent. |
| | C) | 50 percent. |
| | D) | 75 percent. |
|
|
|
| 16 | |
Naomi Lopez, who does not believe that gender discrimination is the main reason women are paid less than men, insists that women with bachelor's degrees between the ages of 35 and 44 actually earned more than men in the male-dominated field of |
| | A) | computer science. |
| | B) | engineering. |
| | C) | architecture. |
| | D) | chemistry. |
|
|
|
| 17 | |
James Morrison, who believes that reforming Social Security would be good for American business, recalls that in the 1990s, when American's pace of business and technological innovation was the envy of the world, the key to success was |
| | A) | tax cuts. |
| | B) | changes in marginal tax rates. |
| | C) | the American entrepreneurial spirit. |
| | D) | the liquidity of American capital markets. |
|
|
|
| 18 | |
Greg Anrig, Jr. and Bernard Wasow, who do not believe that reforming Social Security would be good for American business, report that in alternatives put forward by the President's Commission to Strengthen Social Security, draconian reductions would be taken in |
| | A) | survivors' benefits. |
| | B) | spouse benefits. |
| | C) | disability benefits. |
| | D) | all of the above |
|
|
|
| 19 | |
Sarah Anderson and John Cavanagh, who believe that the corporate strategy of outsourcing is unpatriotic, urge the United States to recognize that to retain stable and substantial jobs at home, it must |
| | A) | concentrate on revamping domestic policies at all levels of government. |
| | B) | completely overhaul financial and aid policies. |
| | C) | become friendlier with heads of foreign governments. |
| | D) | raise standards overseas. |
|
|
|
| 20 | |
Daniel W. Drezner, who does not believe that the corporate strategy of outsourcing is unpatriotic, argues that offshore outsourcing cannot be said to have caused a collapse in IT hiring when |
| | A) | dot-coms run by Americans with servers based onshore are included. |
| | B) | computer and mathematical positions are included. |
| | C) | 1999 is used as a starting point. |
| | D) | all of the above |
|
|
|
| 21 | |
Lisa H. Newton, who believes that U.S. CEOs are overpaid, finds it unlikely that all investors would decide early in a company's growth to liquidate their assets in the company because investors |
| | A) | do not want to adversely affect the U.S. economy. |
| | B) | are generally big gamblers at heart and enjoy the risk. |
| | C) | think of the company as theirs. |
| | D) | know that the longer they wait out the bad times, the bigger the return on their investment. |
|
|
|
| 22 | |
In measuring CEO performance, Ira T. Kay and Steven E. Rushbrook, who do not believe that U.S. CEOs are overpaid, state that the most fundamental question is |
| | A) | whether or not pay causes performance. |
| | B) | whether or not the best resources are being allocated to their optimal use. |
| | C) | what is presently facing the U.S. economy. |
| | D) | how much the public will bear. |
|
|
|
| 23 | |
The Federal News Service, which believes that Sarbanes-Oxley is the answer to corporate governance reform, quotes Christopher Dodd (D-CT), who notes that the purpose of the original securities laws, passed more than 70 years ago, was to |
| | A) | inspire investor confidence. |
| | B) | increase public trust in U.S. financial markets and companies. |
| | C) | promote market efficiency. |
| | D) | all of the above |
|
|
|
| 24 | |
In the opinion of Alan Reynolds, who does not believe that Sarbanes-Oxley is the answer to corporate governance reform, the punitive approach of Sarbanes-Oxley appears likely to make executives |
| | A) | sneaky. |
| | B) | defiant. |
| | C) | timid. |
| | D) | careless. |
|
|
|
| 25 | |
William T. Robinson and Sungwook Min, who believe that first-to-market is a successful strategy, contend that survival rates for market pioneers are typically enhanced by |
| | A) | technological innovation. |
| | B) | initial enthusiastic customer response. |
| | C) | their temporary monopoly. |
| | D) | market uncertainty. |
|
|
|
| 26 | |
With regard to research on the effect of entry order on business profit, William Boulding and Markus Christen, who do not believe that first-to-market is a successful strategy, contend that |
| | A) | research proves that a market share advantage leads to a sustainable profit advantage. |
| | B) | research is widely conflicting. |
| | C) | research shows that there is a weak relationship between timing of market entry and profit. |
| | D) | there is virtually no empirical research on the topic. |
|
|
|
| 27 | |
According to Clayton M. Christensen and Michael E. Raynor, who believe that firms must constantly grow to be considered successful, changes in stock prices are driven largely by |
| | A) | the percentage at which a company's earnings meet investors' predictions for growth. |
| | B) | unexpected changes in the rate of change in a company's earnings and cash flow. |
| | C) | the direction of growth. |
| | D) | the present value of a company's stock price compared to that of other companies in its competing markets. |
|
|
|
| 28 | |
Jim Mackey and Liisa Välikangas, who do not believe that firms must constantly grow to be considered successful, assert that companies are successful until they |
| | A) | are not. |
| | B) | declare bankruptcy. |
| | C) | attempt to grow too quickly. |
| | D) | start monkeying with their core business. |
|
|
|
| 29 | |
David Pimentel, who believes that environmentalists overstate the condition of the environment, argues that if the world adopted a policy of two children per couple tomorrow, the world population would |
| | A) | stabilize within about 7 years. |
| | B) | stabilize within 70 years only in developed countries. |
| | C) | die of hunger before the population had a chance to stabilize. |
| | D) | continue to increase for more than 70 years before stabilizing. |
|
|
|
| 30 | |
According to Denis Dutton, who does not believe that environmentalists overstate the condition of the environment, Lomborg's longest, most detailed chapter is on |
| | A) | deforestation. |
| | B) | pesticides. |
| | C) | hunger. |
| | D) | none of the above |
|
|
|
| 31 | |
Rob Paral, who believes that U.S. corporations should be allowed to hire illegal aliens, contends that immigrants and natives do not compete for the same jobs, the most obvious reason being |
| | A) | wages. |
| | B) | working conditions. |
| | C) | education. |
| | D) | geography. |
|
|
|
| 32 | |
Fred Dickey, who does not believe that U.S. corporations should be allowed to hire illegal aliens, maintains that the key to understanding why unchecked illegal immigration creates a downward economic spiral is |
| | A) | health insurance. |
| | B) | job displacement. |
| | C) | population control. |
| | D) | loss of tax revenue. |
|
|
|
| 33 | |
Murray Weidenbaum, who believes that economic globalization is good for mankind, sees the most powerful benefit of the global economy to be |
| | A) | economic prosperity. |
| | B) | new ideas. |
| | C) | innovations in technology. |
| | D) | an exchange of cultures. |
|
|
|
| 34 | |
Herman E. Daly, who does not believe that economic globalization is good for mankind, concludes that organizations like the International Monetary Fund (IMF) or the World Bank serve the interests of |
| | A) | their member nations. |
| | B) | the integrated global economy. |
| | C) | the workers. |
| | D) | none of the above |
|
|
|
| 35 | |
According to Richard Appelbaum and Peter Dreir, who believe that global sweatshops are exploitative, the campus movement began |
| | A) | at Yale University where student activists staged a "knit-in." |
| | B) | at Duke University with a group called Students Against Sweatshops. |
| | C) | after the popular TV series Party of Five aired a segment in which a character stages a sit-in. |
| | D) | just after the Vietnam War when student activists were hungering for a new cause. |
|
|
|
| 36 | |
Radley Balko, who does not believe that global sweatshops are exploitative, reports that in the Pakistani soccer ball case, the result of the ban was |
| | A) | a withdrawal by investors in the Pakistani plants. |
| | B) | several activist groups stopped calling for boycotts. |
| | C) | production moved back to the United States. |
| | D) | a redesigned soccer ball that could be produced through automation. |
|
|
.