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MGT216 Final Exam 2

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1) According to the authors, ethical behavior is defined as:
A. A set of moral principles or values that guide an individual
B. Rules of Behavior set by the Federal government
C. Principles, norms, and standards agreed upon by society
D. None of these
2) The type of language used when describing a situation affects moral awareness
A. True
B. False
3) There are major differences in levels of moral reasoning between men and women.
A. True
B. False
4) The _______________ approach to ethical decision making focuses on how people actually make
decisions.
A. Descriptive
B. Illustrative
C. Prescriptive
D. Regulatory
5) The _________________ states that an ethical decision should maximize benefits to society and
minimize harms.
A. Theory of cost-benefit analysis
B. Principle of efficacy
C. Principle of value
D. Principle of utility
6) Utilitarianism is an example of teleological theory.
A. True
B. False
7) According to a national opinion survey, identify the goal that employees did NOT rank among the top
five.
A. Good pay
B. Respectful treatment
C. Honest company communications
D. Ethical corporate behavior
8) This driver of engagement, __________, refers to the fact that employees should understand the
company’s strategic direction and how their individual efforts play a role in the company’s revenue-
generating enterprise.
A) Line of sight
B) Involvement
C) Information sharing
D) Rewards and recognition
9) Discarding the few “bad apples” will solve all of the ethical problems within an organization.
a. True
b. False
10) An organization can be convicted of a crime even if only one employee breaks the law.
A. True
B. False
11) Managers play a limited role in increasing engagement and building an ethical culture.

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A. True
B. False
12) Group norms can cause an “everyone is doing it” mentality. This means:
A) People are more likely to recognize issues as “ethical issues."
B) Many individuals will go along with unethical behavior because of a strong need to be accepted.
C) Managers cannot blame individual employees for unethical behavior.
D) Employees are actively disengaged.
13) In this example of a conflict of interest, ________ conducted a series of off-the-books partnerships
that were used to hide the organization’s debt and inflate its stock price. The partnerships were managed
by the company’s executives who stood to profit the most from the transactions.
A) Merrill Lynch
B) Enron
C) Citicorp
D) Adelphia
14) Which of the following is TRUE?
A. Employees tend to be rewarded for engaging in specific ethical behaviors
B. Punishment is an inherently bad practice.
C. Rewards set the tone for what is expected and rewarded in the long term.
D. Rewards are better to control short-run ethical behavior.
15) Which of the following is false?
A) Culture can be defined as “collective mental programming.”
B) Culture represents different patterns of believing.
C) Culture is used to interpret the world.
D) Individuals will interpret their experiences in a new culture in terms of that new culture.
16) Which of the following is false?
A) Organizations are affected by the expatriate managers ability to adjust to the new setting.
B) Organizations are not affected by the expatriate family’s ability to adjust to the new setting.
C) Foreign language proficiency is more important for non-English speakers in English-speaking
countries.
D) Cross-cultural training can help an expatriate manager better adjust to the new culture.
17) Which of the following is FALSE?
A. Roles reduce a person’s sense of individuality.
B. Managers do not have roles as much as their subordinates do.
C. People enter organizations in a state of “role readiness.”
D. Conflicting role expectations can cause increased incidences of lying
18) The best way to ensure that you are not going to be asked to compromise your values is to clearly
communicate what people can expect from you.
A. True
B. False
19) Which of the following is not an effective way to discipline employees?
A) Discipline must be constructive and done in a professional manner.
B) Discipline should be done privately.
C) Employees should be encouraged to explain their side of the story.

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D) Discipline should be consistent with what other employees at the same level or position received.
20) In a 2002 poll, _________ ranked last on the “who do you trust scale.
a) Lawyers
b) Politicians
c) Chief executive officers
d) Accountants
21) Which of the following is FALSE?
A. People are less likely to engage in unethical behavior if it it likely to be detected and punished.
B. Other employees are affected by punishment of just one employee.
C. The idea that punishment should be avoided is based on research on rats and small children.
D. People do not care if violators of ethical conduct are punished.
22) Federal law prohibits discrimination against individuals with specific characteristics. Which of the
following characteristics is not on that list (i.e. protected under Federal law)?
A. Sex
B. Pregnancy
C. Religion
D. Mental ability
23) As a manager of ABC Corporation, you are in a tough situation. You must send an employee to work
with your new client in Europe and Sam is clearly the most qualified candidate. However, ABC
Corporation is located in an area where several people of Sam’s race have been violently attacked. You
must choose to send Sam or Tonya. What should you do?
A. Automatically send Sam to Europe because he is clearly the most qualified.
B. Ask Sam if he wants to go to Europe and discuss the situation.
C. Automatically send Tonya to Europe without telling Sam he was considered.
D. Assign Sam to a new task and send Tonya to Europe.
24) One of a manager’s most important responsibilities is to bring good people into an organization.
A. True
B. False
25) Because of a family emergency, John was unable to complete a report for his boss. Instead he asks a
co-worker to finish it for him and in the morning, John tells his boss that he did the report. Is there
anything wrong with John’s action?
A. Yes, because John is indebted to his co-worker now.
B. Yes, because John told a lie to his boss and put his reputation on the line.
C. No, because John had a family emergency and his boss didn’t need the details. The report is done.
D. No, because John’s co-worker only finished what John had started.
26) According to a survey of executives, most respondents would rather lie to an employee about
performance than confront them about performance problems.
A. True
B. False
27) In this example of a conflict of interest, ________ conducted a series of off-the-books partnerships
that were used to hide the organization’s debt and inflate its stock price. The partnerships were managed
by the company’s executives who stood to profit the most from the transactions.
A) Merrill Lynch
B) Enron
C) Citicorp
D) Adelphia

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