Question 1

Whistle-blowing involves exposing activities that are

sports related.
too close to call.
immoral or illegal.
boring and need some excitement.


Question 2

Inside traders ordinarily defend their actions by claiming that they don’t injure

the boss.
their family.
the President.


Question 3

Insider trading is

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.
a corporate merger.
knowing when to make the best buy.
giving great advice on a deal.


Question 4

In discussing the case of the truck stop cashier who is asked to write up phony chits or receipts, the text argues that

there is nothing wrong with writing up the chits.
she should resign immediately.
she may be justified in “going along,” at least temporarily.
morality never requires us to sacrifice our own interests.


Question 5

A whistle-blower

doesn’t have to be a past or present member of the organization.
doesn’t have to report activity that is illegal, immoral, or harmful.
is any employer who spreads gossip.
far from being disloyal, may be acting in the best interest of the organization.


Question 6

The Sarbanes-Oxley Act

makes it easier to fire whistle blowers.
reduces the law’s protection of employees who disclose securities fraud.
makes it illegal for executives to retaliate against employees who report possible violations of federal law.
provides penalties for blowing the whistle illegitimately or maliciously.


Question 7

Whistle-blowers are only human beings, not saints, and they sometimes have their own

self-serving agenda.


Question 8

Based on guidelines of employer/employee relations, which statement is true?

company loyalty is an outmoded, illegitimate concept that employees today reject
the traditional law of agency obliges employees to act loyally and in good faith and to carry out lawful instructions
an employee’s work contract is irrelevant to his or her moral obligations
no value is more important than loyalty, whether to a person or an organization



Question 9

Experimental studies suggest that when informed that the advice they’re receiving may be biased because of a conflict of interest,

those who disclose a conflict of interest rarely end up giving more biased advice than those who do not disclose
those who disclose a conflict of interest always end up giving more biased advice than those who do not disclose
People tend to fail to discount the advice as much as they should.
people tend to discount the advice as much as they should.


Question 10

In determining the morality of giving and receiving gifts in a business situation, which of the following factors is MOST relevant?

the purpose of the gift
the size of the business
amount of the cash
whether the company is privately held or publicly held


Question 11

Which act provides sweeping new legal protection for employees who report possible securities fraud, making it unlawful for companies to “discharge, demote, suspend, threaten, harass, or in any other manner discriminate against” them?

Sarbanes-Oxley Act of 2002
c. Economic Espionage Act
Foreign Corruption Act
d. U.S. vs. O’Hagan


Question 12

Conflicts of interest

have become less frequent today.
always involve personal financial gain.
are morally worrisome only when the employee acts to the detriment of the company.
occur when employees’ private interests are substantial enough to potentially interfere with their job duties.


Question 13

According to Professor Norman Bowie, which of the following factors is relevant to determining the morality of blowing the whistle?

the whistle blower’s motive
whether internal channels have been exhausted
whether the whistle blowing has some chance of success
all of the above


Question 14

Some writers deny that employees have any obligation of loyalty to the company, because

companies are not the kind of things that are properly objects of loyalty.
you cannot trust anyone.
it’s every man for himself.
companies just aren’t the same any more.

Question 15

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 golden opportunity
a balance of power
a conflict of interest
a disaster


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