39) A measurement that evaluates the amount of inputs used to achieve outputs is a measure of A. organizational efficiency B. organizational stability C. organizational precision D. organizational fluctuation E. organizational effectiveness

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1) Which of the following statements is true about a weak organizational
culture?
A. Desirable if an organization has many subcultures
B. Desirable if an organization wants diversity of thought and action
C. Desirable if an organization wants behavioral consistency
D. Undesirable because they lead to weak organizations
2) Which of the following conditions is necessary for whistle-blowing to be
morally permissible, but not morally obligatory?
A. The firm will do serious and considerable harm to employees or to the
public.
B. The whistle-blower has documented evidence that would convince a
reasonable, impartial observer that one’s view of the situation is correct.
C. The employee has good reason to believe that by going public, the
necessary changes will be brought about.
D. The whistle-blower has reason to believe that he or she will be seen as
failing to be loyal to the company.
3) Which of the following conditions is necessary for whistle-blowing to be
morally permissible, but not morally obligatory?

2. A. The company’s product poses a serious danger to the public.
B. The employee has good reason to believe that by going public, the
necessary changes will be brought about.
C. The whistle-blower has reason to believe that he or she will be seen as
failing to be loyal to the company.
D. The employee has exhausted the internal procedures and possibilities
within the firm, maybe even to the board of directors.
4) Which of the following conditions is necessary for whistle-blowing to be
morally obligatory?
A. The employee has exhausted the internal procedures and possibilities
within the firm, maybe even to the board of directors.
B. The whistle-blower has documented evidence that would convince a
reasonable, impartial observer that one’s view of the situation is correct, and
that the company’s product poses a serious danger to the public.
C. The firm will do serious and considerable harm to employees or to the
public.
D. The employee has reported the serious threat to his or her immediate
supervisor.
5) Which of the following conditions is necessary for whistle-blowing to be
morally permissible, but not morally obligatory?
A. The employee has reported the serious threat to his or her immediate
supervisor.

3. B. The whistle-blower has documented evidence that would convince a
reasonable, impartial observer that one’s view of the situation is correct, and
that the company’s product poses a serious danger to the public.
C. The employee has good reason to believe that by going public, the
necessary changes will be brought about.
D. The whistle-blower has reason to believe that he or she will be seen as
failing to be loyal to the company.
6) The purpose of the Sarbanes-Oxley Act of 2002 was to
A. provide protection for corporations with whistle-blowers
B. make whistle-blowing illegal
C. provide some protection for whistle-blowers
D. create a federal office for whistle-blowers to report to
7) According to Aristotle, which of the following is the highest virtue?
A. Wisdom
B. Courage
C. Justice
D. Generosity
8) Which of the following would be the conclusion a virtue ethicist might make
of one who reacts to strong temptation by frequently giving in to it?
A. The person has an excellent character.

4. B. The person has an immoral character.
C. The person has a strong character.
D. The person has a weak character.
11) The Myth of Amoral Business is consistent with which of the following?
A. Businesses and people in business are immoral.
B. Businesses and people in business are inherently ethical.
C. Businesses and people in business are not explicitly concerned with
ethics.
D. Businesses and people in business are unethical.
12) Three major approaches to thinking about business ethics are the
conventional approach, the principles approach, and the ethical tests approach.
Which of the following describes the principles approach?
A. It involves comparing a decision or practice with prevailing norms of
acceptability.
B. It involves a set of practical questions that do not require deep moral
thinking but can help clarify an appropriate course of action.
C. It is based on a moral philosophical concept, guideline, or rule that
can be applied to assist in making an ethical decision.
D. It is based on legal mandates and regulations to guide decisions.
13) Moral management is the polar opposite of immoral management. Which of
the following statements most closely describes the primary focus of moral
management?

5. A. The focus is solely on business, where different rules apply than in
other realms of life.
B. The focus is on profitability and organizational success at any price.
C. The focus is on both the letter of the law and the spirit of the law.
D. The focus is solely on obeying the law.
14) Students in which area of study may need more ethics training because
research has found that they rank lower in moral reasoning than other students?
A. Philosophy
B. Political science
C. Business
D. Medicine
15) Which of these is the best approach to the study of business ethics?
A. Special effects
B. Normative ethics
C. Casuistry
D. Metaethics
6) In the ethical decision-making process, which of these is the process of
deciding what is right?

6. A. Moral awareness
B. Moral cognition
C. Moral judgment
D. Moral behavior
7) Why did the U.S. Sentencing Commission begin to focus on the ethical
culture of the organization in 2004?
A. Researchers had just recently introduced the idea of an ethical culture
in 2002.
B. More and more consultants were discussing ethical culture in their
programs.
C. Prior to the change, organizations used formal programs as window
dressing.
D. Prior to 2004, researchers did not have a definition of ethical culture.
8) Which of the following statements is true about a weak organizational
culture?
A. Desirable if an organization has many subcultures
B. Desirable if an organization wants diversity of thought and action
C. Desirable if an organization wants behavioral consistency
D. Undesirable because they lead to weak organizations
9) Which of the following conditions is necessary for whistle-blowing to be
morally permissible, but not morally obligatory?

7. A. The firm will do serious and considerable harm to employees or to the
public.
B. The whistle-blower has documented evidence that would convince a
reasonable, impartial observer that one’s view of the situation is correct.
C. The employee has good reason to believe that by going public, the
necessary changes will be brought about.
D. The whistle-blower has reason to believe that he or she will be seen as
failing to be loyal to the company.
10) Which of the following conditions is necessary for whistle-blowing to be
morally permissible, but not morally obligatory?
A. The company’s product poses a serious danger to the public.
B. The employee has good reason to believe that by going public, the
necessary changes will be brought about.
C. The whistle-blower has reason to believe that he or she will be seen as
failing to be loyal to the company.
D. The employee has exhausted the internal procedures and possibilities
within the firm, maybe even to the board of directors.
11) Which of the following conditions is necessary for whistle-blowing to be
morally obligatory?
A. The employee has exhausted the internal procedures and possibilities
within the firm, maybe even to the board of directors.
B. The whistle-blower has documented evidence that would convince a
reasonable, impartial observer that one’s view of the situation is correct, and
that the company’s product poses a serious danger to the public.

8. C. The firm will do serious and considerable harm to employees or to the
public.
D. The employee has reported the serious threat to his or her immediate
supervisor.
12) Which of the following conditions is necessary for whistle-blowing to be
morally permissible, but not morally obligatory?
A. The employee has reported the serious threat to his or her immediate
supervisor.
B. The whistle-blower has documented evidence that would convince a
reasonable, impartial observer that one’s view of the situation is correct, and
that the company’s product poses a serious danger to the public.
C. The employee has good reason to believe that by going public, the
necessary changes will be brought about.
D. The whistle-blower has reason to believe that he or she will be seen as
failing to be loyal to the company.
13) The purpose of the Sarbanes-Oxley Act of 2002 was to
A. provide protection for corporations with whistle-blowers
B. make whistle-blowing illegal
C. provide some protection for whistle-blowers
D. create a federal office for whistle-blowers to report to
14) According to Aristotle, which of the following is the highest virtue?

9. A. Wisdom
B. Courage
C. Justice
D. Generosity
15) Which of the following would be the conclusion a virtue ethicist might
make of one who reacts to strong temptation by frequently giving in to it?
A. The person has an excellent character.
B. The person has an immoral character.
C. The person has a strong character.
D. The person has a weak character.
16) Which of the following describes a moral ideal?
A. A pleasure or happiness
B. A disposition
C. A goal toward which we can strive
D. A talent or ability
17) All actions by nations or companies involve—first and foremost—which of
the following?
A. Actions by individuals
B. Actions by legislative bodies

10. C. Actions by corporate entities
D. Actions by nation states
18) According to the Executive Ethical Leadership Reputation Matrix, which
type of leader is an executive characterized as a weak moral person and a strong
moral manager?
A. Unethical leader
B. Ethical leader
C. Ethically neutral leader
D. Hypocritical leader
19) According to the Executive Ethical Leadership Reputation Matrix, which
type of leader is an executive characterized as a strong moral person and a
strong moral manager?
A. Unethical leader
B. Ethical leader
C. Ethically neutral leader
D. Hypocritical leader
20) Which of the following is one of the moral responsibilities of management?
A. Management is responsible to the board.
B. Management is responsible to the workers.
C. Management is responsible to maximize profits.

11. D. Management is responsible to the shareholders.
21) Which of the following is the general obligation derived from the system of
free enterprise that covers the wide range of issues from just compensation to
truth in advertising to providing the quality of goods or services that one
represents oneself as providing?
A. The obligation to be fair in the transactions in which it engages
B. The obligation not to undermine the freedom and values of the system
C. The obligation to do no harm
D. The obligation to live up to the contracts into which one enters freely
22) Which of the following is the general obligation derived from the system of
free enterprise that is sometimes called the moral minimum?
A. The obligation to be fair in the transactions in which it engages
B. The obligation not to undermine the freedom and values of the system
C. The obligation to do no harm
D. The obligation to live up to the contracts into which one enters freely
23) Which of the following is the general obligation derived from the system of
free enterprise that holds that parties must be able to count on the actions of
other agents with whom they interact?
A. The obligation to be fair in the transactions in which it engages
B. The obligation not to undermine the freedom and values of the system
C. The obligation to do no harm

12. D. The obligation to live up to the contracts into which one enters freely
24) In an example of a conflict of interest, which of the companies below
conducted a series of off-the-books partnerships managed by the company’s
executives to hide the organization’s debt, inflate its stock price, and benefit the
executives financially?
A. Merrill Lynch
B. Enron
C. Citicorp
D. Adelphia
25) There are a number of ways to categorize an organization's stakeholders.
One way is to use categories such as primary and secondary and social and
nonsocial. Which of the following describes primary stakeholders?
A. Their stake in the organization represents public or special interests.
B. They may include the government, civic institutions, and competitors.
C. They have a direct stake in the organization and its success.
D. They may include environmental pressure groups or animal welfare
organizations.
26) Some theorists contend that there are three attributes that managers must
take into consideration when determining how to attend to or respond to
stakeholder claims. They are
A. core, strategic, and environmental

13. B. production, management, and employee
C. legitimacy, power, and urgency
D. instrumental, descriptive, and normative
27) __________ is defined as the gap between the home market and a foreign
market resulting from the perception and understanding of cultural and business
differences.
A. Psychic distance paradox
B. Social responsibility
C. Sustainability
D. Ethical relativity
28) “When in Rome, do as Romans do” is an example of
A. imperialism
B. ethical relativism
C. cultural collaboration
D. psychic distance paradox
29) According to the annual Corruption Perception Index (CPI), which country
would be the least corrupt?
A. United States
B. Haiti

14. C. Bangladesh
D. Denmark
30) 2) Critical thinking may be stored for use in future decision making.
Examples of mechanisms used to “store” critical thinking for future
programmed decisions include
A. a regression analysis
B. a Stakeholder Analysis
C. a Pareto Chart
D. pre-opening checklist
E. a SWOT Analysis
3) When facing a critical decision, a manager should use critical thinking in
order to ______ uncertainty
A. eliminate
B. increase
C. reduce
D. randomize
4) Kathy is a manager deciding between two applicants for a position reporting
to her. One applicant for the position is a close personal friend of Kathy’s.
Because Kathy is concerned that self serving bias may influence her to
incorrectly see her friend as the best candidate, she should
A. allow someone else to make the decision.
B. eliminate her bias by not allowing her friend to apply

15. C. ignore her bias and be strictly objective
D. any of the above would be an equally valid choice from a
critical thinking perspective
E. seek input from others before making the decision.
5) Jane has a term paper due, a sick child who needs her attention, and a major
project due at work. To save time, she decides to submit a paper for school that
is less than her best, but will earn a passing grade. The best description of Jane’s
approach is
A. creativity
B. analyzing
C. satisficing
D. optimizing
6) Despite all the measures followed, successful decisions are not always
guaranteed so it is important to
A. develop contingency plans
B. only allow the most senior leaders to influence decisions
C. use logical thinking to guarantee a correct outcome
D. accept that some decisions will not work and move on to
other issues
E. develop appropriate measurements for the impacts of
decisions

16. 7) One way for a leader to develop alternative perspectives for decision making
is to
A. increase the use of the logical thinking style
B. rely on the intellectual component of stereotyping
C. apply past decision successes to current decision
opportunities
D. increase the homogeneity of his or her team
E. consult with internal stakeholders in other departments
8) One way for a leader to develop alternative perspectives for decision making
is to
A. assign the role of devil’s advocate for meetings
B. rely on the intellectual component of stereotyping
C. apply past decision successes to current decision
opportunities
D. increase the homogeneity of his or her team
E. increase the use of the logical thinking style
9) Critical thought involves the consideration of diverse perspectives.
Disadvantages of group decision making include
A. a decision that accounts for the interests of diverse
stakeholders
B. all of the above are disadvantages of group decision making
C. a more autocratic environment
D. a process that is more time consuming

17. E. increased security of confidential information
10) During problem formulation, the decision maker must account for the
interests of diverse stakeholders. An important step toward this outcome is the
establishment of
A. measurements for the decision
B. decision Implementation Processes
C. criteria, goals, and objectives
D. timelines and resource allocations
E. contingency plans
11) The outcome of the process of framing the problem includes
A. a timeline for decision implementation
B. an assessment of resources needed to execute a decision
C. a list of criteria, goals, and objectives for a decision
D. a list of potential alternative courses of action
E. the measurements one will use to evaluate the decision
12) Conflict is a force of influence upon decision making, and may hamper
decision implementation if not accounted for in the problem formulation and
identification process. Conflict may stem from such factors as

18. A. inspirational leadership
B. routine programmed decisions
C. groupthink
D. personal attributes
E. a lack of a devil’s advocate
13) What is the most comprehensive definition of a problem?
A. A positive situation that requires action in order to fully
leverage an opportunity.
B. A declining economy resulting in reduced revenues
C. A negative situation that requires action to mitigate damage
D. Gap between current situation and some future desired state
E. An increase in the cost of doing business.
14) This thinking style may be used to frame a problem in general terms
through the use of sample data.
A. Deductive logical style
B. Creative thinking style
C. Inductive logical style
D. Persuasive thinking style
E. All of the above thinking styles frame a problem in general
terms through the use of sample data.
15) A form of critical thinking is fair-minded persuasive thinking. When
engaging in problem formulation and identification with a group, the fair
minded persuader would

19. A. emphasizes affective appeals over data and reason
B. acknowledges the difficulty that his or her position creates
for the audience
C. avoid all affective appeals
D. communicate only that information which supports the
desired decision
E. emphasize data and reason over affective appeals
16) While this decision style offers an opportunity for stakeholder input, it most
lessens accountability for decision making.
A. Democratic
B. Consensus
C. Autocratic
D. Collaborative/participative
E. Leader decides
17) An appropriate profit relative to funds invested would be a primary
consideration of this stakeholder group.
A. Employees
B. Customers
C. Owners
D. Activist groups
18) Problems may become apparent to stakeholders through the use of tools
which compare actual results to expected results. An example of such a tool is a
A. SWOT analysis

20. B. Pareto chart
C. Financial report
D. Fishbone diagram
E. Force Field Analysis
19) Jan is the owner of a retail store, and is evaluating the need for changes to
the store’s commission structure for sales personnel. She has decided to exclude
the sales personnel affected from the decision making process. Jan is probably
seeking to minimize this force of influence on the decision making process.
A. Resistance from external stakeholders
B. Self serving bias
C. Resource availability
D. Lack of political support
E. Ethical considerations
20) Identifying programmed decision opportunities—problems with objectively
correct answers, solvable through the use of simple rules, policies, or numerical
computations—promises this benefit in terms of decision making.
A. Ensures that problems are dealt with in a unique fashion
according to their differences
B. Provides decision makers with opportunities for creative
problem solving
C. Greater efficiency
D. Provides senior managers with greater visibility to each
routine decision made
E. Ensures that multiple solutions are applied to common
problems in order to find the best one

21. 21) Identifying programmed decision opportunities—problems with objectively
correct answers, solvable through the use of simple rules, policies, or numerical
computations—promises this benefit in terms of decision making.
A. Ensures that problems are dealt with in a unique fashion
according to their differences
B. Provides decision makers with opportunities for creative
problem solving
C. Provides decision makers with helpful tools
D. Provides senior managers with greater visibility to each
routine decision made.
22) For urgent decisions, this approach may be the most efficient and effective
use of the manager’s time when there are other critical competing priorities.
A. Experimenting
B. Optimizing
C. Satisficing
D. Brainstorming and multi-voting with a team
E. Creation of a task force
23) A decision tool that can be helpful in identifying risks to contemplated
decisions is
A. a Force Field Analysis
B. a histogram

22. C. a Pareto chart
D. a periodic table
E. a Fishbone diagram
24) When a manager is attempting to identify root causes, the following tool
may be helpful:
A. SWOT analysis
B. Fishbone diagram
C. Force field analysis
D. profit and loss statements
E. Financial Balance sheet
25) The manager of the Gallery Restaurant noted that the restaurant had
experienced a decrease in the number of evening customers. The manager
promptly ordered the chef to rewrite the evening menu. Customer feedback later
indicated that the problem had not been the menu but poor service from the wait
staff. The manager's decision to have the menu revised suggests that she failed
to
A. properly diagnose the cause of the problem
B. identify the problem
C. evaluate the decision and its consequences
D. evaluate the alternatives and consequences

23. 26) In the course of developing a SWOT analysis, Bob determines that a large
competitor is moving into one of his company’s key service areas. Bob has
uncovered
A. a weakness
B. a positive trigger point
C. a strength
D. a threat
E. an opportunity
27) When deciding between decision alternatives, this tool helps the manager to
focus scarce resources on the most common causes of a problem.
A. Venn Diagram
B. Pareto chart
C. Benchmarking
D. SWOT analysis
E. Force Field Analysis
28) The best way to mitigate employee resistance to a decision is to
A. write clear policies outlining permitted and forbidden actions
B. clearly communicate the “who what when and why” during
implementation

24. C. ensure that all employee concerns are fully solved for in
every decision
D. establish clear penalties for non compliance with decisions
E. limit influence over decisions to senior leadership
29) Freda is in the process of implementing a significant decision. Which of the
following considerations should she ignore?
A. Measurements of potential tasks
B. Timelines to implement the decision
C. Stakeholder resistance to certain options
D. Decision alternatives to be framed
31) Freda is analyzing the prospects for a new gambling casino that her
company is considering. In the course of her analysis, Freda has identified
potential stakeholder resistance to this venture, in that she has discovered that
the areas is very densely populated with houses of worship. She has also
discovered a potential source of support for this venture, in that the local
government has established tax credits for new businesses in an effort to
stimulate employment. Freda is, in all likelihood, developing a
A. financial proforma income statement
B. resource allocation survey
C. Scatter diagram
D. Force Field Analysis
E. ROI analysis

25. 32) The assignment of different tasks to different people or groups is an
important part of a(n)
A. Force Field Analysis
B. statistical process control chart
C. benchmarking project
D. strategic plan
E. implementation plan
33) Since unforeseen circumstances will arise during implementation, a
company should invest resources in teaching employees to
A. be consistent in their actions
B. stay the course in spite of any difficulty
C. follow direction
D. follow the plan to the letter
E. make decisions
34) The moral principles and standards that guide behavior in the world of
business are called
A. business development
B. business ethics
C. business philosophy

26. D. business principles
35) A system of rules that governs the ordering of values is referred to as
A. Corporate legitimacy
B. Justice
C. Ethics
D. DFE
36) Markus worked last summer as a receptionist in a lawyer's office. During a
discussion prompted by the ethics chapter in your text, he commented that he
was asked to tell callers that the lawyer was in court when in fact the lawyer
was playing golf! He eventually quit the job because he believes that under no
circumstance is it permissible to tell a lie. Markus appears to be following the
ethical system referred to as a
A. Virtue Ethics
B. Practical Deliberation
C. utilitarianism
D. rule or deontological ethics
E. the Taylor Principles
37) Bob’s company regularly surveys employees concerning satisfaction with
various attributes of their jobs, and their working conditions. This allows Bob to

27. watch for positive or negative changes in measured satisfaction levels when
decisions are made to change the nature of work or compensation in order to
increase retention. Bob is applying this thinking style to evaluate his decisions.
A. Creative thinking
B. Metaphorical thinking
C. Persuasive thinking
D. Deductive logical thinking
E. Scientific thinking
38) The objective to “reduce rework significantly within 6 months” is not
sufficiently meaningful nor measurable because it is not sufficiently
A. time bound
B. important
C. specific
D. achievable
E. relevant
39) A measurement that evaluates the amount of inputs used to achieve outputs
is a measure of
A. organizational efficiency
B. organizational stability
C. organizational precision
D. organizational fluctuation
E. organizational effectiveness

28. 40) When evaluating the decision processes in an organization, leaders will bear
in mind that
A. poor decisions never work out well
B. a good job of framing the problem guarantees a successful
decision
C. not all good decisions have good outcomes
D. stakeholders must all be satisfied
E. a good decision is one that has a good outcome
41) When evaluating the decision processes in an organization, leaders should
consider doing which of the following?
A. Ensure that the process is consistent for all significant
decisions.
B. Ensure that all of a company’s stakeholders provide input all
of a company’s decisions.
C. Make sure to focus on results of the decision rather than the
process.
D. Make sure the process is sufficiently autocratic.Make sure
the process is sufficiently autocratic.Make sure the process is sufficiently
autocratic.
E. Make a list of those affected by the decision, and determine
if those interests are represented in the process under consideration.

29. 42) As noted in our texts, a key measurement of our decisions is: “are they
ethical.” In order to achieve a superior level of ethical behavior in its decision
making processes, leaders should instill a(n) ______ in those charged with
making decisions.
A. legal approach to ethical considerations
B. integrity based approach to ethical considerations
C. compliance based approach to ethical considerations
D. utilitarian approach to ethical considerations