Week 11 Final Exam Part 2 – Vivian McClain This final exam consists of 25 multiple choice questions and covers the material in Chapters 10 through 12. 1. Risk compartmentalization occurs when A. companies place their most problematic employees into separate profit centers so that they cannot influence one another to act unethically. B. all profit centers within a corporation are aware of the code of ethics. C. all profit centers within an organization become aware of the consequences of competitors' actions. D. various profit centers within an organization become unaware of the consequences of their actions on the firm as a whole. E. ethics and compliance programs reduce the risk of misconduct. 2. ________ has been codified in a United Nations document and is defined as an inherent dignity with equal and inalienable rights as the foundation of freedom, justice, and peace in the world. A. Cultural relativism B. Human rights C. Consumerism D. Dumping E. Health care 3. ________ is a term used by Adam Smith to explain the inherent mechanisms at work in free market systems that keep commerce in equilibrium. It is also known as the "invisible hand." A. Consumerism B. Cultural relativism C. Social democracy D. Laissez-fair E. Bimodal wealth distribution 4. ________ assumes that humans may not act rationally because of genetics, learned behavior, and rules of thumb. A. Rational economics B. Socialism C. Cultural relativism D. National culture E. Behavioral economics 5. ________ occurs when the middle class shrinks, resulting in highly concentrated wealth amongst the rich and a large number of poor people with very few resources. A. Communism B. Socialism C. Bimodal wealth distribution D. A two-class social structure E. Laissez-faire capitalism 6. The ________ formed in 1995 and administers its own trade agreements, facilitates future trade negotiations, settles trade disputes, and monitors the trade policies of member nations. A. International Monetary Fund B. United Nations C. World Trade Organization D. North American Free Trade Act E. European Union 7. What is the purpose of the UN Global Compact? A. To promote free trade around the world B. To support international banking institutions C. To uphold the principle of consumerism D. To provide legal representation to international corporations facing lawsuits E. To promote human rights, sustainability, and eradicate corruption 8. When in Rome, do as the Romans do, or you must adapt to the cultural practices of the country in which you are operating are rationalizations businesspeople sometimes offer for straying from their own ethical values when doing business abroad. This practice is called A. self-reference criterion B. country cultural values C. consumerism D. cultural relativism E. dumping 9. A coaching leader builds a positive climate by A. valuing people, their emotions, and their needs. B. focusing on communication across all layers of the organization. C. inspiring employees to follow their departmental leaders without question. D. focusing on achievement, initiative, and self-control. E. developing skills for success, delegating responsibility, and issuing challenging assignments. 10. The ________ of an organization can influence the acceptance of, adherence to, transmittal, and monitoring of organizational norms, values, and codes of ethics. A. nation of origin B. locus of control C. leadership style D. production methods E. opportunity 11. When a group is more likely to move toward a more extreme position than the group members might have done individually, this is referred to as A. Leader-follower congruence B. Groupthink C. Values-based culture D. Ethical leadership E. Group polarization 12. Leaders whose decisions and actions are contrary to the firm's values send a signal A. that the firm's values are trivial or irrelevant. B. that they are providing a good example of what not to do. C. that the firm's corporate culture is highly important. D. that they are working toward improving the ethical culture of the firm. E. that they care about the environment. 13. Leaders having a(n) ________ conflict management style are highly assertive and not very cooperative. A. Avoiding B. Competing C. Compromising D. Accommodating E. Collaborating 14. ________ occurs when one or more group members feel pressured to conform to the group's decision even if they personally disagree. A. Group polarization B. Leader-follower congruence C. Groupthink D. Competition E. Conflict 15. Which leadership type values people, their emotions, and their needs and relies on friendship and trust to promote flexibility, innovation, and risk taking? A. Authoritative leadership B. Coaching leadership C. Pacesetting leadership D. Coercive leadership E. Affiliative leadership 16. The most effective leaders possess the ability to manage themselves and their relationships with others effectively, a skill known as A. Conflict management B. Group theory C. Collaboration D. Emotional intelligence E. Leader-follower theory 17. The Clean Water Act makes it illegal for anyone to discharge any pollutant from a point source directly into navigable waters without a A. good reason B. direct order C. permit D. inspector present E. limit 18. The protection of air, water, land, biodiversity, and ________ emerged as a major issue in the twentieth century. A. employee relations B. renewable natural resources C. environmental legal regulations D. consumer protection E. air pollution 19. All of these are ways of reducing pollution, except: A. Designing environmentally friendly buildings B. Recycling C. Greenwashing D. Source reduction E. Sustainable agriculture 20. Wind power holds great promise for the United States because of the ________, and experts believe wind energy could meet as much as 20 percent of the nation's energy needs. A. Rocky Mountains B. Everglades C. Great Lakes D. Pacific Rim E. Great Plains 21. The first Earth Day, increasing stakeholder awareness of environmental concerns, and the creation of the Environmental Protection Agency brought ________ to the forefront. A. corporate social responsibility B. alternative energy sources C. diversity D. sustainability E. competition 22. One of the biggest factors in land pollution is the dumping of waste into landfills. ________ consumers are by far the world's biggest wasters. A. European B. Chinese C. Russian D. American E. Canadian 23. Geothermal energy provides ________ and is a more dependable energy source than some other forms of alternative energy. A. heat from the sun B. a radiated heat C. heat from steam D. a constant source of heat E. a dry heat 24. Sustainability is the long-term well-being of the natural environment and the mutually beneficial interactions among ________. A. customers, investors, managers, and policies B. board members, presidents, managers, and nonprofit organizations C. investors, creditors, suppliers, and the marketing department D. nature, individuals, organizations, and business strategies E. managers, boards, CEO's, and stakeholder strategies 25. ________ is one of the country's greatest sustainability success stories. A. Water conservation B. Pollution control C. Manufacturing D. Composting E. Recycling