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Busines Ethics and Society DANTES Practice Test
1) The Tyco scandal is associated with which of the following Acts?
A) WARN
B) Sarbanes-Oxley Act
C) Foreign Corrupt Practices Act
D) Privacy Act
2) Corporate governance is
A) A policy which demands that a company “gives back” to the communities in which it operates.
B) The responsibility of a business to ensure maximum returns to its investors.
C) A system of accountability, oversight and control within the company.
D) The consideration of companies about the well-being of society when they make business decisions.
3) An employer who posted a list of weekly responsibilities for employees to fulfill would best be described as following which leadership style?
A) Transformational
B) Democratic
C) Authoritative
D) Free reign
4) Which of the following statements is NOT true?
A) Outsourcing is when a company moves part of its business to another location.
B) Outsourcing can help companies save money and keep prices down.
C) Outsourcing is unanimously agreed to be a beneficial process.
D) All of the above statement are true
5) Which of the following is NOT a form of marketing fraud?
A) Predatory pricing
B) Misstating financial statements
C) Price discrimination
D) Untruthful advertising
6) Which of the following is NOT a legal way for employers to monitor employees?
A) Placing video cameras in workplaces
B) Enquiring about off duty activities
C) Viewing messages sent over company networks
D) Listening to phone conversations on company lines
7) The Fair Labor Standards Act
A) Prohibits minimum wages that are too high.
B) Prohibits unethical dual relationships that alter the terms of employment for employees.
C) Sets forth standards for management in relations with labor unions.
D) Makes discrimination on a basis of prior employment illegal.
8) Which of the following BEST describes the “old” social contract?
A) Workers could expect good benefits in any job they chose.
B) If workers were loyal, punctual and at least decently efficient they could expect to keep their jobs and perhaps even advance over time.
C) Workers had no expectations of their work environments. They could be fired or laid off at any time.
D) Employees must work to the best of their ability, increase their knowledge, improve over time and be loyal and ethical in their work to keep their jobs.
9) Implied falsity is
A) Advertising which involves unreasonable and purposefully misleading claims
B) Advertising which involves technically true claims which are misleading by nature
C) Advertising which is not true in any sense
D) None of the above
10) Which of the following is NOT true of sexual harassment?
A) The claimant must be able to prove a hostile work environment was created.
B) Sexual harassment is any repeated, unwanted behavior of a sexual nature.
C) Sexual harassment can apply to physical actions, words, images and written material.
D) The primary factor in sexual harassment cases is the intent of the action.
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DSST Practice Test Answer Key
1. The correct answer is B:) Sarbanes-Oxley Act. Tyco executives used the company’s employee loan program to take extravagant vacations and give themselves bonuses without ever paying back the money. It was one of the scandals which spurred the Sarbanes-Oxley Act.
2. The correct answer is C:) A system of accountability, oversight and control within the company.
3. The correct answer is C:) Authoritative. The authoritative, or autocratic, leadership style involves a leader who makes decisions and tells employees what their responsibilities are.
4. The correct answer is C:) Outsourcing is unanimously agreed to be a beneficial process. There are positive and negative aspects of outsourcing.
5. The correct answer is B:) Misstating financial statements. Altering or incorrectly reporting financial statements would be a form of accounting fraud, not a form of marketing fraud. Predatory pricing, price discrimination and untruthful advertising are all marketing schemes.
6. The correct answer is B:) Enquiring about off duty activities. Employers have very few rights over their employee’s off duty actions unless they can show that those actions are impairing their ability to do their job.
7. The correct answer is C:) Sets forth standards for management in relations with labor unions. The FLSR states that management must negotiate with labor union representatives, negotiate in good faith and address topics such as employment conditions, wages and hours.
8. The correct answer is B:) If workers were loyal, punctual and at least decently efficient they could expect to keep their jobs and perhaps even advance over time.
9. The correct answer is B:) Advertising which involves technically true claims which are misleading by nature.
10. The correct answer is D:) The primary factor in sexual harassment cases is the intent of the action. On the contrary, the primary factor is the effect of the action, or how it is perceived, not the intent.