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6. In the US, limited warranty/guarantee:lasts for two years or less.is in force when anything less than a full warranty is offered by the seller.applies only to low cost items.is offered only on durable goods.10. Because of the complexity of the marketplace for goods and services today, the consumer needs information that is all of the following except:Clear.Accurate.Concise.Adequate.11. The President of US Consumers Union, Jim Guest, outlined all of the following “overarching lessons” except:although most businesses claim that they are consumer oriented, consumers as a group are satisfied with business practices.although the consumer movement has had a strong impact, it is still absolutely essential for achieving a fair and just marketplace for all consumers.for public watchdogs to be effective, they must receive necessary resources, authority, and public support.in the United States, consumers must curb the wasteful overconsumption that threatens the environment.12. Which of the following issues has been most important to consumers regarding products and services during the past decades?Price and quantityPackaging and labellingPrice and durabilityQuality and safety13. One of the reasons for firms’ growing concern in Anglophone/common law legal jurisdictions over product liability is that:tort reform is certain to occur within the next near future.the number of product liability cases is growing rapidly.the size of the awards in product liability cases has been relatively constant.insurance premiums for product liability are causing many firms to declare bankruptcy.14. Which of the following is a result of the absolute liability doctrine in product liability cases?There is no longer any incentive for manufacturers to produce certain products.Consumer groups have been successful in applying this doctrine to nearly every aspect ofconsumerism.Some firms must deal with a large degree of uncertainty in their manufacturing processes.Many firms are relocating to offshore locations in order to avoid this doctrine.15. US business supports which of the following elements of tort reform?A uniform federal code.Higher punitive damages for corporate malfeasance.Binding arbitration.None – US business does not support tort reform.16. Manufactured products create hazards because of:unsafe product design.improper manufacturing techniques.inadequate information provided to consumers.all of the these.17. The duties of the US Consumer Product Safety Commission include which of the following?Conducting product research and producing prototypes.Reimbursing consumers for defective products.Banning unsafe products and ordering recalls.Promoting good business/consumer relations.18. The doctrine that holds that any firm in the value chain of a product is liable for harm caused to the consumer if the product was unreasonably dangerous because of its defective condition is known as:caveat emptor.treble damages.punitive damages.strict liability.19. Product tampering and extortion:have had implications for product packaging as well as product liability.have been encouraged by the doctrine of absolute liability.are encouraged as a militant form of consumerism.concentrated in less developed countries.20. The concept of quality includes:products.warranties/guaranteesservices.products and services.21. Six Sigma is a program that many firms are using to:eliminate product defects altogether.improve quality and reduce costs.improve relationships with consumers.eliminate competition in their industries.22. Business has a major impact/effect on the environment because:there are more business firms than people.business is a large producer of waste and pollution.business firms are usually located in the most environmentally sensitive areas.business has repeatedly affirmed that its only interest is in making profits.23. Which of the following is notone of the concerns about waste management?Cancer.Birth defects.Toxological effects of a number of new chemicals coming onto the market.All of these are concerns.24. The phrase Not In My Back Yard(NIMBY) refers to:the reluctance of rural areas to host large companies.the refusal to help solve the environmental problems by those who helped create them.the reluctance of suburban communities to use environmentally friendly pesticides.the consumer movement that advocates the use of all natural foods.25. US business is attending to the latest green movement because:radical green groups have vowed to damage their plants if they do not.marketing research shows that a large number of consumers prefer green products.labor unions have joined forces with environmental activists to force the issue.federal laws that have been passed requiring firms to tailor their operations to annual consumersurveys.26. Which of the following generic management decision-making tools is notuseful when dealing with environmental issues?Issues management.Crisis management.Stakeholder management.Human resource management.27. Scientists’ predictions about the effects of global warming include which of the following?Coastal flooding from glacier melting.An increased risk to humans of skin cancer.Widespread desertification due to the warmer temperatures.Increased food production because of longer growing seasons.28. Which of the following is true of hazardous waste disposal?International law makes shipping hazardous waste over international borders illegal.Materials that were not identified as hazardous until the 1970s were often dumped in unlineddisposal sites, thereby increasing the likelihood of soil and water contamination.The United States, because of its advanced technology, does not have any problems withhazardous waste.Countries that were formerly part of the Soviet Union are world leaders in cleaning up hazardouswaste disposal sites.29. Which of the following is notan effect of acid rain?Sterilization of bodies of water.Damage to forests.Reproductive effects on fish and amphibians.General climate changes.30. Cost-benefit analysis is important when making decisions about environmental issues because:it is used in most environmental impact statements.it is the most accurate method of analysing environmental issues.it uses only objective data to determine what should be done.shows the “right” answer to environmental problems.31. What argument did Barry Salzberg (CEO of Deloitte and Touche USA LLP) offer for increased involvement in the community?Business people are not efficient problem solvers, and therefore need the community’s help.Business people need the satisfaction of performing completely altruistic acts.To keep up with the competitors in the race for public image.It’s a business strategy that means success for an organization and its clients.32. Which of the following is notone of the standards of excellence in corporate community involvement?Leadership.Measurement.Responsibility.Strategy.33. Strategic philanthropy:is an approach by which corporate giving and other philanthropic activities of the firm aredesigned in a way that best fits with the firm’s overall mission.is the search for purely altruistic company giving.is the search for a sustainable competitive advantage by giving to the “right” charities.sees the goal of profits as irrelevant to the mission of giving.34. When plants (factories and manufacturing facilities) have been sold to employees rather than be closed, the result:has always been positive for the employees.has always been negative for the employees.has often caused significant increases in employee wages, morale, and working conditions.has often caused significant decreases in employee wages, morale, and working conditions.35. The advantages of advance notice of a plant (factory and manufacturing facility) closing:are mostly in the company’s favour.exceed the disadvantagesgo primarily to the employees and community.go mostly to the company’s customers and creditors.36. The reasons listed for business involvement in the community include which of the following statements?Business people are not efficient problem solvers, and therefore need the community’s help.Business people need the satisfaction of performing completely altruistic acts.Keeping up with the competitors in the race for public image.Employees gain satisfaction and improved morale.37. Business supports higher education because:managers want to support their alma maters.firms hope to increase their sales to college students.firms hope to increase the pool of trained personnel.firms want to practice cause-related marketing.38. A major motivation for foreign-owned companies doing business abroad to be actively involved in the community is:pressure to do so from the host-country government.pressure to do so from their home countries.a moral obligation to be involved.a legal obligation to be involved.39. Identifying a firm’s available materials and skills is part of which step in developing a community action program?Knowing the community.Knowing the company’s resources.Selecting the project.Monitoring the project.40. Cause-related marketing:is basically the same thing as strategic philanthropy.is almost always done in conjunction with museums.is the direct linking of a business’s product or service to a specified charity.is always a supplement to current business giving.41. The primary advantage that business firms see in public purpose partnerships is:the advance of social reform.the opportunity to expose their employees to new experiences.simultaneous achievement of economic and philanthropic goals.an easy way to meet their social responsibilities.42. Survivors of plant (factory and manufacturing facility) closings are likely to:avoid their former co-workers.receive large increases in their wages.be promoted.need support due to a variety of negative reactions.43. The employee rights movement:most accurately seen as a subset of the civil rights movement.is an attempt to bring more of the public sector rights into the private sector.will be greatly aided in the future by labour unions.has not brought many changes to the workplace.44. Which of the following is notone of the sources of employee rights?Collective bargaining.Statutory rights.Enterprise rights.Workers’ expectations.45. An employee’s right to receive impartial review and fair treatment of his or her case is:due process.employment-at-will.the right not to be fired without just cause.the basis for all employee rights.46. Which of the following is true about peer review methods of due process for employees?The key to successful peer review is to make sure that the people involved in the process arerespected members of the organization.Peer review systems can be successful even if used sporadically.Managers have given peer reviews their full support from the beginning.Peer review systems depend on bringing in impartial observers from outside the firm.47. Which of the following is nota likely outcome of whistle-blowing?The whistle-blower’s work will be more strictly observed and criticized.The whistle-blower will receive monetary awards for his or her bravery.The whistle-blower will receive pressure to drop the accusations against the employer.The whistle-blower will receive heavier workloads.48. Employees’ willingness to change jobs has been associated with all of the following except:less employee privacy.less stable employment relationships.less employee loyalty to the employer.increased concern for employee rights.49. Public policy exceptions and the employment-at-will doctrine are aspects of which of the following employee rights?Right to due process.Right of free speech.Right to safe working conditions.Right not to be fired without just cause.50. The US False Claims Act:was first passed in 1986.was recently ruled unconstitutional.provides financial incentives for whistle-blowing.makes it illegal for a whistle-blower to make false claims against his or her employer.51. Which of the following is true about peer review methods of due process for employees?The success of peer review depends on clear support from top management.Peer review systems can be successful even if used sporadically.Managers have given peer reviews their full support from the beginning.Peer review systems depend on bringing in impartial observers from outside the firm.52. Surveys of whistle-blowers have shown that they are:disgruntled employees trying to “get back” at employers.typically suffering from some type of psychological problems.genuinely trying to correct a problem that they believe their employer is causing.usually older employees who have not advanced as far up the management ladder as they thinkthey should have.53. Which of the following statements about privacy is nottrue?There is no clear legal definition of privacy.Privacy includes the right to determine for oneself what information about oneself should beshared with others.Privacy includes the right to be left alone.The number of privacy invasion cases has been declining recently.54. Employee medical information collected for insurance purposes:can be used later for determining eligibility for promotion.can be later disclosed to a third party.can be sold to third parties.can be released to the employee.55. Because the use of polygraph tests has been widely criticized, many firms have started:to rely solely on employment interviews.to use paper-and-pencil “integrity tests.”to monitor their employees activities more closely.to perform research on how to make polygraph tests more reliable.56. Which of the following is notone of the reasons given for using “integrity tests”?Their 99% accuracy rate.To stem employee theft.To avoid “negligent hiring” suits.To replace polygraph tests.57. Which of the following is notone of the guidelines for drug testing?Managers should not discipline or fire someone for refusing to take a drug test or because theresults of the test were inconclusive.The focus of the testing should be on-the-job performance, not off-the-job conduct.Employees should be fully informed of the methods used and the results obtained, and given theopportunity to challenge the results.All testing should be done on a surprise basis, to keep employees from “preparing” for the drugtest.58. US “Right-to-know” laws:require covered employers to identify hazardous chemicals in their workplaces.exist in all US fifty states and at the federal level.are enforced by the Occupational Safety and Health Administration.first appeared in the early twentieth century.59. The Hazard Communication Standard forces employers to perform all of the following except:update inventories of all hazardous chemicals stored in the workplace.make sure that all hazardous chemicals are clearly labelled.require that all workers handling hazardous chemicals to wear protective clothing.properly train workers how to safely use the hazardous materials.60. Smoking in the workplace:has always been recognized as a health hazard.poses a threat only to the persons who are smoking.has become nearly non-existent, as over 90% of adult workers report that their workplace has apolicy regulating smoking.is still widely permitted in the United States.61. US managers are allowed to do which of the following regarding potential AIDS victims?Employees suspected of being HIV positive can be fired because they pose a health risk to otherworkers.Job applicants for certain types of positions can be screened for AIDS.Inform all employees of the names and locations of the employees who are HIV positive.All job applicants can be tested for AIDS, so the company can avoid higher insurance costs.62. Which of the following is notone of the five components recommended by the BRTA to deal effectively with HIV/AIDS?Workplace policy.Informing the organizational members of infected employees.Community involvement.Employee education.63. Which of the following is notincluded in the US definition of protected groups?People with disabilities.Older people.Homosexuals/gays and lesbians.Women.64. Disparate treatment:is the same as disparate impact.means that different groups are treated unequally.is a form of institutionalized discrimination.means that the outcome differs for different groups.65. Which of the following is the underlying rationale for affirmative action?The Golden Rule.Retributive justice.Compensatory justice.Restorative justice.66. Although sexual harassment has notbeen clearly defined by law courts, it is:easily recognized when seen.illegal.illegal only if the alleged victim can prove he or she was denied a promotion as a result of it.easy to prove.67. The meaning of “affirmative action” today is generally understood to be:passive non-discrimination or pure affirmative action.pure affirmative action only.affirmative action with preferential hiring or hard quotas.hard quotas only.68. During the decade of the 1980s in the USA:the employment plight of both blacks and women improved, but women generally made moreprogress than did blacks.the employment plight of both blacks and women improved, but blacks generally made moreprogress than did women.employment discrimination was eradicated.the civil rights movement forced business to treat all employees equally.69. Disparate impact:is the same as disparate treatment.means that different groups are treated unequally.is a form of institutionalized discrimination.means that the outcome differs for different groups.70. Which of the following types of affirmative action seeks to enlarge the pool of applicants, but bases the decision to hire on merit or qualifications?Passive non-discrimination.Pure affirmative action.Affirmative action with preferential hiring.Hard quotas.

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