BUS 309 Week 10 Quiz – Strayer



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Quiz 9 Chapter 10

Moral Choices Facing Employees

MULTIPLE CHOICE

     1.   Based on guidelines of employer/employee relations, which statement is true?
a.
company loyalty is an outmoded, illegitimate concept that employees today reject
b.
the traditional law of agency obliges employees to act loyally and in good faith and to carry out lawful instructions
c.
an employee's work contract is irrelevant to his or her moral obligations
d.
no value is more important than loyalty, whether to a person or an organization



     2.   Conflicts of interest
a.
have become less frequent today.
b.
always involve personal financial gain.
c.
are morally worrisome only when the employee acts to the detriment of the company.
d.
occur when employees' private interests are substantial enough to potentially interfere with their job duties.



     3.   According to the Supreme Court,
a.
there is nothing improper about an outsider’s using information, as long as the information is not obtained from an insider who breaches a legal duty to the corporation’s shareholders.
b.
anyone buying/selling stock based on nonpublic information is guilty of inside trading.
c.
insider trading violates the interstate commerce clause of the Constitution.
d.
it should be left up to the company, not the government, to decide whether or not to prohibit insider trading.


                                  36

     4.   A "trade secret"
a.
is legally equivalent to a patent or copyright.
b.
need not be treated confidentially by the company in order to be protected.
c.
can become part of an employee's technical knowledge, experience, and skill.
d.
is a narrow, precise concept that the law defines in great detail.



     5.   The Foreign Corrupt Practices Act (FCPA)
a.
doesn't apply to countries where bribery is common.
b.
is alleged by its critics to put American companies at a disadvantage.
c.
carefully distinguishes bribery from extortion payments.
d.
outlaws "grease payments".



     6.   In determining the morality of giving and receiving gifts in a business situation, which of the following factors is MOSTrelevant?
a.
the purpose of the gift
b.
the size of the business
c.
amount of the cash
d.
whether the company is privately held or publicly held



     7.   A whistle-blower
a.
doesn't have to be a past or present member of the organization.
b.
doesn't have to report activity that is illegal, immoral, or harmful.
c.
is any employer who spreads gossip.
d.
far from being disloyal, may be acting in the best interest of the organization.



     8.   The Sarbanes-Oxley Act
a.
makes it easier to fire whistle blowers.
b.
reduces the law's protection of employees who disclose securities fraud.
c.
makes it illegal for executives to retaliate against employees who report possible violations of federal law.
d.
provides penalties for blowing the whistle illegitimately or maliciously.



     9.   According to Professor Norman Bowie, which of the following factors is relevant to determining the morality of blowing the whistle?
a.
the whistle blower's motive
b.
whether internal channels have been exhausted
c.
whether the whistle blowing has some chance of success
d.
all of the above



   10.   In discussing the case of the truck stop cashier who is asked to write up phony chits or receipts, the text argues that
a.
there is nothing wrong with writing up the chits.
b.
she should resign immediately.
c.
she may be justified in "going along," at least temporarily.
d.
morality never requires us to sacrifice our own interests.



   11.   In the 1997 case of U.S. v. Hagan, the Supreme Court found that Hagan
a.
had been discriminated against because of whistle blowing.
b.
was innocent of insider trading.
c.
violated the FCPA despite never having gone overseas.
d.
had misappropriated confidential information.



   12.   The Donald Wohlgemuth case shows that
a.
trade secrets can be patented.
b.
trade secrets often become an integral part of an employee's total job skills and capabilities.
c.
employees need to divest themselves of any skill acquired while handling trade secrets.
d.
"noncompete" or "nondisclosure" contracts are always legally valid.



   13.   Some writers deny that employees have any obligation of loyalty to the company, because
a.
companies are not the kind of things that are properly objects of loyalty.
b.
you cannot trust anyone.
c.
it’s every man for himself.
d.
companies just aren’t the same any more.



   14.   When an employee’s interests are likely to interfere with the employee’s ability to exercise proper judgment on behalf of the organization, what exists?
a.
a golden opportunity
c.
a balance of power
b.
a conflict of interest
d.
a disaster



   15.   Insider trading is
a.
the buying or selling of stocks (or other financial securities) by business “insiders” on the basis of information that has not yet been made public and is likely to affect the price of the stock.
b.
a corporate merger.
c.
knowing when to make the best buy.
d.
giving great advice on a deal.



   16.   Inside traders ordinarily defend their actions by claiming that they don’t injure
a.
the boss.
b.
their family.
c.
the President.
d.
anyone.



   17.   Shaw and Barry mention three arguments for legally protecting trade secrets. Which of these is one of them?
a.
Trade secrets are the intellectual property of the employee who developed them.
b.
Employees who disclose trade secrets
violate the confidentiality owed to their employers
c.
Trade secrets are patented.
d.
Trade secrets are trademarked.



   18.   U.S. companies have a history of paying off foreign officials for business favors. Such acts were declared illegal by
a.
the U.S. Customs department.
b.
the Vice President.
c.
the Foreign Corrupt Practices Act (FCPA) of 1977.
d.
the United Nations.



   19.   To resolve difficult moral dilemmas, the  better we understand the exact ramifications of the
alternatives—the more likely we are

a.
to make a sound moral decision.
c.
to be a success.
b.
to drive the boss crazy.
d.
to go to jail.

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