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1 MGT422 Test Bank – MCQ 01-11 Abu Nuran CHAPTEshowing page 9-10 out of 20

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9
12.
Which of the following is false?
a) A mission statement describes “how we do business.”
b) Mission statements should be short and memorable.
c) Mission statements should be written by outsiders who are unbiased.
d) For some companies, mission statements are a mainstay of the corporate culture.
Ans: c
13.
When designing a policy manual:
a) It is important to use legalese to demonstrate the formality of the document.
b) Important policies should be communicated in short brochures.
c) Policies should be alphabetized to communicate that all policies are important.
d) Include policies from all departments so the manual is standardized.
Ans: b
14.
When communicating a code of conduct:
a) Focus on values that should guide decision making.
b) Provide the same code of conduct to all departments regardless of its length.
c) Refrain from changing the code of conduct regularly.
d) Fewer employees will read the code if it is short.
Ans: a
15.
Your friend, Sam, has been selected to create a new ethics training program at work.
What advice should you give Sam?
a) Ensure that all employees receive the same training content.
b) Focus on new employees only; the other employees already know this stuff.
c) Provide separate training depending on the needs of different groups of employees.
d) Bring in outside consultants to conduct the training.
Ans: c
16.
The __________ approach to formal corporate ethics initiatives is proactive and
inspirational.
a) Rules
b) Compliance
c) Principles
d) Values
Ans: d
17.
The _________ approach to formal corporate ethics initiatives focuses on meeting
required behavior norms or obeying the letter of the law.
a) Rules
b) Compliance
c) Principles
d) Values
Ans: b
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18.
Under the U. S. Sentencing Guidelines, the same crime can be subject to a wide range of
penalties. In determining the penalty, the following will be considered:
a.
Prior violations
b.
Whether management reports itself
c.
Whether management cooperates with authorities
d.
Whether the firm has an effective program in place to prevent and detect illegal behavior
e.
All of the above
Ans.:
e
19.
_____________ is a term frequently used to describe ethics initiatives that begin at the
top of the organization and work their way down, level by level.
a.
Surveying
b.
Globalizing
c.
Auditing
d.
Cascading
e.
Collaborating
Ans.: d
20.
Which of the following is false?
a) An effective approach to managing ethics has a compliance-only focus.
b) Abstract value statements can appear hypocritical to employees.
c) Strictly compliance-oriented programs are often viewed by employees with cynicism.
d) With a compliance-
only focus, employees believe anything goes as long as there isn’t a rule
against it.
Ans: a
21.
The US Sentencing Guidelines use a “carrot and stick” approach to managing
corporate crime.
What is meant by the use of “carrot” and “stick”?
a) The carrot dangles at the end of the stick as an incentive for organizations to continue to
behave ethically.
b) The carrot refers to the guidelines as “food for thought” and the stick refers to the punishment
if the guidelines are not followed.
c) The carrot refers to incentives in the guidelines to behave ethically and the stick refers to the
punishment if the guidelines are not followed.
d) None of the above.
Ans: c
22.
Which of the following is true?
a) Fines applied by the US Sentencing Commission have
decreased
on average since 1990.
b) Only the presence of a code of ethics in the organization is necessary to meet the US
Sentencing Commission’s idea of an effective compliance program.
c) The US Sentencing Commission allows prosecutors to assess the quality of an organization’s
compliance program in order to determine appropriate penalties.
d) The 1987 sentencing guidelines mandated incarceration for only the worst felony offenders.
Ans: c

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