FOREIGN TRADE UNIVERSITY

EMERGING ISSUES IN MANAGEMENT (MGMT 440)

SECOND EXAM (VERSION 1) FOR WINTER 2018
PROFESSOR CHARLES H. SMITH

NAME: _______________________________________
DATE: JANUARY 15, 2018

You will have two hours to complete this exam, which is

comprised of 50 multiple-choice questions (worth one point each).
Circle the letter next to the best choice. Do not write the
letter for an answer next to the question. If you have any
questions about any aspect of this exam, please discreetly signal
me. Good luck!

Questions 1 through 5 are based on the following: Grant, a

CPA, was an employee of the Voss Corporation (“the corporation”)
which employed 772 people in several locations throughout the
United States. The corporation’s main office, where Grant
worked, was in Fullerton, California. Grant was asked by his
supervisor to alter some of the corporation’s records in order to
create a situation whereby the corporation could illegally claim
certain financial advantages on its federal income tax return to
be submitted to the government. (This would be a federal crime.)
Grant thought of his father who would be very disappointed if he
found out that Grant would commit any sort of illegal act such as
altering the corporation’s records. Grant also thought about the
fragile financial condition of the corporation and how it needed
every financial advantage it could get just to stay open for
business. Grant further considered what would happen if the IRS
provided false documentation to the corporation. Finally, Grant
wondered if there was some way that he could achieve the same
result without committing a federal crime. Fortunately, Grant
had taken a class called “Emerging Issues in Management” at Cal
State Fullerton so he knew about some ethical principles.
(Questions 1 through 5 are on the following pages.)

Mgmt 440—FTU W18 Second Exam 1 1

 1. Which of the following is the best example of the
organizational ethic in action?

A. Grant thought of his father who would be very

disappointed if he found out that Grant would commit any sort of
illegal act such as altering the corporation’s records.
B. Grant also thought about the fragile financial condition
of the corporation and how it needed every financial advantage it
could get just to stay open for business.
C. Grant further considered what would happen if the IRS
provided false documentation to the corporation.
D. Grant wondered if there was some way that he could
achieve the same result without committing a federal crime.

2. Which of the following is the best example of the

disclosure rule in action?

A. Grant thought of his father who would be very

disappointed if he found out that Grant would commit any sort of
illegal act such as altering the corporation’s records.
B. Grant also thought about the fragile financial condition
of the corporation and how it needed every financial advantage it
could get just to stay open for business.
C. Grant further considered what would happen if the IRS
provided false documentation to the corporation.
D. Grant wondered if there was some way that he could
achieve the same result without committing a federal crime.

3. Which of the following is the best example of the Golden

Rule in action?

A. Grant thought of his father who would be very

disappointed if he found out that Grant would commit any sort of
illegal act such as altering the corporation’s records.
B. Grant also thought about the fragile financial condition
of the corporation and how it needed every financial advantage it
could get just to stay open for business.
C. Grant further considered what would happen if the IRS
provided false documentation to the corporation.
D. Grant wondered if there was some way that he could
achieve the same result without committing a federal crime.

Mgmt 440—FTU W18 Second Exam 1 2

 4. Which of the following is the best example of the
conventionalist ethic in action?

A. Grant thought of his father who would be very

disappointed if he found out that Grant would commit any sort of
illegal act such as altering the corporation’s records.
B. Grant also thought about the fragile financial condition
of the corporation and how it needed every financial advantage it
could get just to stay open for business.
C. Grant further considered what would happen if the IRS
provided false documentation to the corporation.
D. Grant wondered if there was some way that he could
achieve the same result without committing a federal crime.

5. If Grant decided to follow the organization ethic in

this situation, he would:

A. Grant further considered what would happen if the IRS

provided false documentation to the corporation.
B. Grant thought of his father who would be very
disappointed if he found out that Grant would commit any sort of
illegal act such as altering the corporation’s records.
C. Both A and B.
D. Neither A nor B.

6. The proportionality ethic applies to decisions having:

A. Both good and evil consequences.

B. Either good or evil consequences.
C. Neither good nor evil consequences.
D. None of the above.

7. Which of the following best shows the difference between

the conventionalist ethic and the ends-means rule?

A. The conventionalist ethic permits conduct that would

normally be considered unethical while the ends-means ethic does
not permit it.
B. The conventionalist ethic does not permit conduct that
would normally be considered to be unethical while the ends-means
ethic does permit it.
C. The conventionalist ethic permits the violation of the
law while the ends-means ethic does not permit it.
D. The conventionalist ethic does not permit the violation
of the law while the ends-means ethic does permit it.

Mgmt 440—FTU W18 Second Exam 1 3

 8. Which of the following is the best example of amorality
in action?

A. Klaus, a regular church-goer, would not work on Sunday

and religious holidays even if there was a lot of work to do.
B. Annie, a regular church-goer, insisted that her
employees work during a day of religious observance because of a
deadline for a big project.
C. Chris, a regular church-goer, worked all night making
sure the church building was ready for an important meeting.
D. Cynthia, a regular church-goer, told Bohm she could not
help him because she had a sick child at home.

9. Which of the following is the best example of moral

unity in action?

A. Klaus, a regular church-goer, would not work on Sunday

and religious holidays even if there was a lot of work to do.
B. Annie, a regular church-goer, insisted that her
employees work on a day of religious observance because of a
deadline for a big project.
C. Chris, a regular church-goer, worked all night making
sure the church building was ready for an important meeting.
D. Cynthia, a regular church-goer, told Bohm she could not
help him because she had a sick child at home.

10. Which of the following is the best example of the

might-equals-right ethic in action?

A. Microsoft’s high market share permits it to set high

prices for its products.
B. The right to equal protection under the laws guaranteed
by the United States Constitution.
C. Chuckster let another car change lanes in front of him
since that is what Chuckster hoped other drivers would do for
him.
D. Eva worked every day at her job which sometimes caused
her to miss family dinners and other fun events.

Mgmt 440—FTU W18 Second Exam 1 4

 11. In 2009, professional golfer Tiger Woods lost several
endorsements (and substantial income) when his many extramarital
affairs became public knowledge. Which ethical principle should
Mr. Woods have used to avoid this situation?

A. Doctrine of the mean.

B. Utilitarianism.
C. Theory of justice.
D. Disclosure rule.

12. Which of the following quotations can be attributed to

Daniel Drew?

A. “By the pricking of my thumbs, something wicked this way

comes.”
B. “It’s all for a good cause.”
C. “I never took stock in a man who mixed up business with
anything else.”
D. “What happens in Vegas, stays in Vegas.”

Questions 13 through 15 are based on the following: A

committee was appointed by Cal State Fullerton President Virjee
to determine whether students should still be given the option of
completing evaluations of their professors at the end of each
semester. One of the issues raised by President Virjee was that
some students would not use their best efforts to complete these
evaluations in good faith such as:

- Some students would purposely miss class on the day

designated for student evaluations.
- Some students used their best efforts to evaluate their
professors since they believed that was how they would
want to be evaluated by their professors in the grading
process.
- Some students, after not maintaining regular attendance
during the semester, would make a point of attending
class on the day designated for student evaluations even
though these students would not be very well-informed
about the professor or the class.
- Some students would write false statements about a
professor they personally disliked in an attempt to
discredit the professor and ruin the professor’s career.
(Questions 13 through 15 are on the following page.)

Mgmt 440—FTU W18 Second Exam 1 5

 13. Which of the following is the best example of the
students’ following the Golden Rule?

A. Some students used their best efforts to evaluate their

professors since they believed that was how they would want to be
evaluated by their professors in the grading process.
B. Some students would purposely miss class on the day
designated for student evaluations.
C. Some students, after not maintaining regular attendance
during the semester, would make a point of attending class on the
day designated for student evaluations even though these students
would not be very well-informed about the professor or the class.
D. Some students would write false statements about a
professor they personally disliked in an attempt to discredit the
professor and ruin the professor’s career.

14. Which of the following is the best example of the

students’ following the end-means doctrine?

A. Some students used their best efforts to evaluate their

professors since they believed that was how they would want to be
evaluated by their professors in the grading process.
B. Some students would purposely miss class on the day
designated for student evaluations.
C. Some students, after not maintaining regular attendance
during the semester, would make a point of attending class on the
day designated for student evaluations even though these students
would not be very well-informed about the professor or the class.
D. Some students would write false statements about a
professor they personally disliked in an attempt to discredit the
professor and ruin the professor’s career.

15. Which of the following is the best example of the

students' following the conventionalist ethic?

A. Some students, after not maintaining regular attendance

during the semester, would make a point of attending class on the
day designated for student evaluations even though these students
would not be very well-informed about the professor or the class.
B. Some students would write false statements about a
professor they personally disliked in an attempt to discredit the
professor and ruin the professor’s career.
C. Both A and B.
D. Neither A nor B.

16. California law requires that elementary school students

have 100 minutes of physical education per week. Michelle Obama

Mgmt 440—FTU W18 Second Exam 1 6

Elementary School did not offer physical education classes. Its
position was that, since at least one teacher supervised recess
and lunch when the students would play, the school fulfilled the
“100 minutes” requirement. Which of the following sentiments
would best justify this position?
A. “No one will ever know.”
B. “Here’s how we get around that.”
C. “What’s in it for me?”
D. “We didn’t have this conversation.”

17. Which of the following is not one of the “Warning

Signs” listed in the textbook on page 259?

A. “Here’s how we get around that.”

B. “No one will ever know.”
C. “This is a non-meeting.”
D. “Well, maybe just this once.”

18. Recently, many people lost their homes due to large

fires in California. Kien Corpration, which was located Hanoi,
reacted to this situation by making donations to organizations to
help these people. To which of the following sources of pressure
is Kien Corporation reacting?

A. Communities.
B. Employees.
C. Advocacy groups.
D. Events/crises.

19. Which of the following is the best example of business

ethics guided by culture?

A. Lasso would pray to Allah before making a big decision.

B. Bridle consulted with a smart friend before making a big
decision.
C. Saddle would consider “family values” before making a
big decision.
D. Hoof called his lawyer before making a big decision.

Mgmt 440—FTU W18 Second Exam 1 7

 20. Which of the following is the best example of the
theory of justice in action?

A. Microsoft’s high market share permits it to set high

prices for its products.
B. The right to equal protection under the laws guaranteed
by the United States Constitution.
C. Chuckster let another car change lanes in front of him
since that is what Chuckster hoped other drivers would do for
him.
D. Eva worked every day at her job which sometimes caused
her to miss family dinners and other fun events.

21. A workplace rule that an employee will automatically be

fired for any theft (no matter how minor) is best justified by:

A. Doctrine of the mean.

B. Utilitarianism.
C. Disclosure rule.
D. Principle of equal freedom.

22. Which of the following is the best example of business

ethics guided by philosophy?

A. Lasso would pray before making a big decision.

B. Bridle consulted with a smart friend before making a big
decision.
C. Saddle would consider “family values” before making a
big decision.
D. Hoof called his lawyer before making a big decision.

23. Which of the following is the best definition of

business ethics?

A. It is the study of how what happens at work can impact

your personal life.
B. It is the study of how what happens in your personal
life can impact your work.
C. It is the study of right and wrong in the context of the
workplace.
D. It is the study of matters wholly unrelated to the study
of ethics.

Mgmt 440—FTU W18 Second Exam 1 8

 24. Which of the following is the best example of the
categorical imperative in action?

A. Rune decided to eat more fruit because he thought it was

good for his health.
B. Rune decided to eat more fruit because he wanted his
wife to love him for it.
C. Rune decided to not punch his teacher because he knew
that the teacher would be seriously injured if he did so.
D. Rune decided to not punch his teacher because he knew
that the teacher would be seriously injured if everyone in the
class did so.

25. Which of the following is the best example of business

ethics guided by religion?

A. Lasso would pray before making a big decision.

B. Bridle consulted with a smart friend before making a big
decision.
C. Saddle would consider “family values” before making a
big decision.
D. Hoof called his lawyer before making a big decision.

26. Which of the following is the best example of business

ethics guided by law?

A. Lasso would pray before making a big decision.

B. Bridle consulted with a smart friend before making a big
decision.
C. Saddle would consider “family values” before making a
big decision.
D. Hoof called his lawyer before making a big decision.

27. Which of the following is the best example of the

intuition ethic in action?

A. Louis had a bad feeling when he entered the classroom

and saw Professor Schnickelfritz for the first time.
B. Louis cheated on the final exam in Professor
Schnickelfritz’s class because he had not studied.
C. Louis decided to follow all traffic laws while driving
since he did not want to get another traffic ticket.
D. Louis treated everyone equally because his parents had
taught him that it was the right thing to do.

Mgmt 440—FTU W18 Second Exam 1 9

 28. Which of the following business practices was created
by Henry Ford?

A. The employee lounge.

B. The 40-hour work week.
C. The at-will employment rule.
D. The concept that the stockholder is the company's last
priority.

29. Merck & Co., Inc. Donated massive quantities of the

drug called Ivermectin to people in Africa to help with the
disease called:

A. River cancer.
B. River blindness.
C. River crippling.
D. River lupus.

30. Which of the following beliefs was promoted by Milton

Friedman?

A. A company should give little to charity.

B. A company should give a lot to charity.
C. A company should put its customers first.
D. A company should put making a profit first.

31. Herbert Spencer introduced a theory about CSR called

“Social Darwinism.” Which of the following the best example of
that theory in action?

A. You give an extra water bottle to a homeless girl

standing at the end of the freeway offramp.
B. You give $5.00 to a homeless girl standing at the end of
the freeway offramp.
C. You donate $5 million to Cal State Fullerton and the
administration building is named after you.
D. You refuse to donate $5 million to Cal State Fullerton
despite an offer to name the administration building after you.

32. Which person theorized that voluntary action by a

company (or an industry) may head off negative public attitudes
and unwanted regulations?

A. Howard R. Bowen.
B. General Robert E. Wood.
C. Milton Friedman.
D. James Cash Penney.

Mgmt 440—FTU W18 Second Exam 1 10

 33. Which of the following is the best example of a narrow
response to social demands?

A. A charity asked Oliver Company for a donation but the

company refused the request since the company was worried that
any donations would reduce profits.
B. A charity asked Oliver Company for a donation but the
company refused the request since the company was worried that
the charity was not legal.
C. A charity asked Oliver Company for a donation and, due
to this request, the company made a donation to the charity.
D. Oliver Company made a donation to a charity would being
asked for a donation.

34. Which of the following is the best example of an

expansive response to social demands?

A. A charity asked Oliver Company for a donation but the

company refused the request since the company was worried that
any donations would reduce profits.
B. A charity asked Oliver Company for a donation but the
company refused the request since the company was worried that
the charity was not legal.
C. A charity asked Oliver Company for a donation and, due
to this request, the company made a donation to the charity.
D. Oliver Company made a donation to a charity would being
asked for a donation.

35. Which of the following is the best example of the

organization ethic in action?

A. Microsoft’s high market share permits it to set high

prices for its products.
B. The right to equal protection under the laws guaranteed
by the United States Constitution.
C. Huy let another car change lanes in front of him since
that is what Huy hoped other drivers would do for him.
D. Ngoc worked every day at her job which sometimes caused
her to miss fun events with her friends.

Mgmt 440—FTU W18 Second Exam 1 11

 36. Cao worked at the Dinh Company. He told the company's
owner that some people in his community had contracted a serious
disease but could not afford the treatment. Based on what Cao
said, the Dinh Company paid for these people to receive the
treatment for free. To which of the following sources of
pressure is Kien Corporation reacting?

A. Communities.
B. Employees.
C. Advocacy groups.
D. Events/crises.

37. Which of the following is the best example of the

doctrine of the mean in action?

A. Berni always tried to get at least six hours of sleep

every night.
B. Berni always tried to get at least six hour of sleep
every night except on the weekends.
C. Sanders would stay up all night studying before an exam
and then sleep about ten hours the next night.
D. Sanders slept when he felt tired at all hours of the day
and night.

38. Greek and Roman philosophers reasoned that:

A. Debauchery was acceptable in moderation.

B. The truly rich person has great wealth.
C. Profit-seeking was an inferior motive.
D. Religion was an opiate of the masses.

39. Which of the following is the best example of the

external benefits of CSR?

A. The ability of supervisors and employees to work

together on a more “equal” basis.
B. The fun that the company’s employees have at company
social event afterwards.
C. Both A and B.
D. Neither A nor B.

Mgmt 440—FTU W18 Second Exam 1 12

 40. Which of the following is the best example of the
internal benefits of CSR?

A. The ability of supervisors and employees to work

together on a more “equal” basis.
B. The fun that the company’s employees have at the wine
and cheese event afterwards.
C. Both A and B.
D. Neither A nor B.

41. Which of the following is the best example of how

characteristics such as size, industry and location can impact
CSR?

A. A large law firm in Orange County devoted substantial

resources to providing free legal services to the homeless of
Orange County.
B. A small law firm in Orange County devoted substantial
resources to providing free legal services to detainees at
Guantanamo Bay.
C. A large law firm in Orange County devoted substantial
resources to providing free food to the homeless of Orange
County.
D. A small law firm in Orange County devoted substantial
resources to providing free food to detainees at Guantanamo Bay.

42. Which of the following is the best example of the

belief that a company has a duty to correct adverse social
impacts they create?

A. The controversy over who should pay for expenses

incurred by residents who became sick because of gas leaks at a
private company's factory.
B. The controversy over President Donald Trump’s position
that a wall should be built along the border between Mexico and
the United States.
C. Both A and B.
D. Neither A nor B.

Mgmt 440—FTU W18 Second Exam 1 13

 43. Which of the following is the best example of Social
Darwinism?

A. Mihaylo College, which is the business school at CSUF,

was named due to donations by Steven G. Mihaylo.
B. Mihaylo College, which is the business school at CSUF,
has a successful Entertainment and Hospitality Management
program.
C. Nguyen, a student at Cal State Fullerton, gave a beggar
a dollar because the beggar was an elderly person.
D. Nguyen, a student at Cal State Fullerton, gave her
friend a water bottle because the temperature was over 100
degrees F.

44. Which of the following is the best argument favoring

CSR?

A. CSR can improve morale for those inside the company like
employees.
B. CSR always leads to good publicity for the company.
C. CSR must lead to long-term profits for the company.
D. CSR is an unwarranted cost for the company.

45. Which of the following was created by Henry Ford?

A. Air bags for motor vehicles.

B. Medical benefits for employees.
C. Anti-discrimination policies.
D. The 40-hour work week.

46. General Robert E. Wood expressed which of the following

about the company’s shareholders?

A. They were first on the company’s list of priorities.

B. They were last on the company’s list of priorities.
C. They were important to the company’s success.
D. They were not important to the company’s success.

47. John D. Rockefeller’s philanthropy is a good example

of:

A. Early charity in the United States.

B. Current charity in the United States.
C. Progressive thought.
D. Populist thought.

Mgmt 440—FTU W18 Second Exam 1 14

 48. What is the company’s first obligation?

A. Obeying the law while being ethical as well.

B. Working to get to a point where CSR can be part of the
company’s business plan.
C. Making a profit.
D. Doing what needs to be done to survive.

49. Which of the following is the best example of civil (or

private) regulation?

A. Lopez sent out several e-mail blasts to thousands of

people pointing out discriminatory employment practices by his
former employer.
B. Lopez contacted the several government agencies about
discriminatory employment practices by his former employer.
C. Lopez told his wife about discriminatory employment
practices by his former employer.
D. Lopez applied for several teaching jobs at various
universities but he was not successful in getting a job.

50. Which of the following is one of the Gates Foundation's

"simple values"?

A. All lives - no matter where they are being led - have

equal value.
B. The Gates Foundation's money should be carefully
invested and spent.
C. Both A and B.
D. Neither A nor B.

Mgmt 440—FTU W18 Second Exam 1 15