NEW BA301 Test 4 Final Exam 100% Correct - 70802

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BA301 Test 4 (A+)


Points Awarded100.00

Points Missed0.00



1. One alternative to product liability lawsuits is called: 

 A) limited resolution.

 B) punitive damages reform.

 C) alternative dispute resolution.

 D) consumerism.


Points Earned:4.0/4.0 

Correct Answer(s): 



2. The activism of institutional investors in other countries has been spearheaded by: 

 A) U.S.-based pension and mutual funds that in recent years acquired large stakes in foreign countries.

  B) foreign institutions that were granted new rights by their governments.

  C) managers who have become active in proxy battles in the Netherlands, Austria, and Hong Kong.

  D) the rising number of individual investors of public service companies.


Points Earned:4.0/4.0 

Correct Answer(s): 



3. Which of the following is a good way for a business to express its commitment to corporate citizenship? 

  A) Community relations programs.

  B) By behaving responsibly toward all its stakeholders.

  C) By correcting problems associated with its operations.

  D) All of the above.


Points Earned:4.0/4.0 

Correct Answer(s): 

4. The Sarbanes-Oxley Act makes it illegal for employers to: 

  A) sue federal contractors for fraud.

  B) retaliate against whistle-blowers who report information that could have an impact on the value of a company's shares.

  C) hire employees that have a prior record of federal fraud or misconduct.

  D) both B and C, but not A.


Points Earned:4.0/4.0 

Correct Answer(s): 


 5. A strong employer-employee relationship is central to: 

  A) achieving a corporation's goals of economic production.

  B) satisfying the wishes of those who contribute their skills and talents to the company.

  C) increasing the gross domestic product of a nation.

  D) both A and B, but not C.


Points Earned:4.0/4.0 

Correct Answer(s): 


 6. A new public relations outlet for businesses as demonstrated by Wal-mart is: 

  A) Text messaging

  B) Blogging

  C) Chat rooms

  D) None of the above


Points Earned:4.0/4.0 

Correct Answer(s):

 7. The share of all giving made up by in-kind contributions of products and services has been: 

  A) rising steadily over the past decade.

  B) declining steadily over the past decade.

  C) remaining relatively constant over the past decade.

  D) declining sharply over the past decade.


Points Earned:4.0/4.0 

Correct Answer(s): 



8. About what percent of incidents of sexual harassment are never reported? 

  A) Less than 20 percent

  B) About 40 percent

  C) About 65 percent

  D) As many as 90 percent


Points Earned:4.0/4.0 

Correct Answer(s): 


9. What was a major contributor to the collapse of Enron in 2001? 

  A) The company's top executives made bad investments.

  B) Several failed merger attempts with other firms.

  C) Lax oversight by the company's audit committee.

  D) The bear market of the early 2000s.


Points Earned:4.0/4.0 

Correct Answer(s): 


 10. What did General Mills do to integrate family considerations into its operations? 

  A) Established an on-site infant care center.

  B) Established on-site health care services.

  C) Offered exercise classes at the company's health and fitness center.

  D) All of the above.


Points Earned:4.0/4.0 

Correct Answer(s): 


 11. Advergames are: 

  A) online games that promote adult-oriented entertainment.

  B) a method of promoting a product online, for a fee, especially to children.

  C) a method of promoting a product online, free of charge, targeting children.

  D) none of the above.


Points Earned:4.0/4.0 

Correct Answer(s): 


12. According to the Institute for Crisis Management, which industry is not at the top of the list of crisis prone industries? 

  A) Medical manufacturing

  B) Pharmaceutical

  C) Software manufacturing

  D) Food service


Points Earned:4.0/4.0 

Correct Answer(s): 


 13. In South Korea, companies in the securities industry launched the Corporate Governance Service in 2002 to: 

  A) allow stockholders to question auditors at annual meetings.

  B) to promote management transparency and create shareholder value.

  C) disclose all compensation of board directors.

  D) manage the stock options of company executives.


Points Earned:4.0/4.0 

Correct Answer(s): 


 14. Manufacturers making false or misleading claims about a competitor's product is: 

  A) illegal but ethical.

  B) illegal and unethical.

  C) legal but unethical.

  D) legal and unethical.


Points Earned:4.0/4.0 

Correct Answer(s): 


 15. Polygraph testing: 

  A) is encouraged by the Employee Polygraph Protection Act of 1988.

  B) is used by 85 percent of U.S. companies as a pre-employment screening procedure.

  C) has been replaced by written psychological tests.

  D) is used by 85 percent of U.S. companies to discover employee theft.


Points Earned:4.0/4.0 

Correct Answer(s): 


16. The "agency problem" arises when: 

  A) owners manage their company on their own behalf.

  B) there is no separation of ownership and control in a company.

  C) managers act in their own interest, rather than in the interest of shareholders.

  D) shareholders act in their own interest, rather than in the interest of the board.


Points Earned:4.0/4.0 

Correct Answer(s): 


 17. The burden of responsibility for product performance has shifted to the producer, under the legal doctrine of: 

  A) strict liability.

  B) product liability.

  C) consumer liability.

  D) supplier liability.


Points Earned:4.0/4.0 

Correct Answer(s): 


18. When groups of companies define industry-wide standards that they can all agree to, these are called: 

  A) corporate codes of conduct.

  B) NGO codes of conduct.

  C) industry-wide codes of conduct.

  D) fair wage levels.


Points Earned:4.0/4.0 

Correct Answer(s): 


19. Which company committed to investing 10 percent of its pre-tax profits in rural development projects such as children's immunizations? 

  A) ING

  B) Unilever

  C) Hindustan Lever

  D) Whole Foods


Points Earned:4.0/4.0 

Correct Answer(s): 

20. Which of the following is a key feature of effective boards of directors? 

  A) Hold regular meetings without the CEO present.

  B) Fill all important positions on the board with managers with insider knowledge of the firm.

  C) Combine the duties of the board chairman and the chief executive.

  D) Ensure that no outside members are included on the board.


Points Earned:4.0/4.0 

Correct Answer(s): 


 21. Which of the following consumer products is not typically regulated for safety by the federal government? 

  A) Pharmaceutical drugs

  B) Meat and poultry

  C) Computers

  D) Automobiles


Points Earned:4.0/4.0 

Correct Answer(s): 


 22. Which of the following statements is true about the relationship between business and the community? 

  A) It is one of mutual interdependence.

  B) Business has more responsibility towards community.

  C) Communities possess more social power than businesses do.

  D) All of the above statements are true.


Points Earned:4.0/4.0 

Correct Answer(s): 


 23. Which of the following is an argument against affirmative action? 

  A) It costs American business too much money.

  B) There are no mechanisms in place to verify that it is actually taking place.

  C) It is inconsistent with the principles of fairness and equality.

  D) It violates individuals' basic human rights.


Points Earned:4.0/4.0 

Correct Answer(s): 

24. Which of the following is not a benefit of managing diversity effectively? 

  A) These businesses get tax breaks from the federal government.

  B) These businesses can often more effectively serve customers.

  C) These businesses are better able to attract and retain workers from a variety of backgrounds.

  D) None of the above. Each of these is a benefit of managing diversity effectively.


Points Earned:4.0/4.0 

Correct Answer(s):



25. Which of the following companies is not part of the Alliance for American Advertising? 

  A) Frito-Lay

  B) Kellogg

  C) Kraft

  D) General Mills


Points Earned:4.0/4.0 

Correct Answer(s): 


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