BUSA 1105 Exam 1 Questions with
All Correct Answers
What do global forces include? - Answer- military alliances, currency exchanges,
immigration policies, environment regulations, trade pacts & economic unions (MICEET)
What can increase risk to business owners in terms of global forces? - Answer- wars,
terrorism, recessions, currency, panics, epidemics, refugee flows, & ecological change
(WTRCPERE)
ethics - Answer- principles of right and wrong that influence behavior
values - Answer- beliefs and attitudes that help determine a person's behavior
cultural norms - Answer- the ethics, values, attitudes, and behaviors that are deemed to
be normal or typical in a given culture
laws - Answer- rules of conduct or action formally recognized as binding or enforced by
a controlling authority
what are the 4 questions you ask when faced w/ an ethical dilemma? - Answer- 1. Is the
action legal?
2. Is the action ethical?
3. Would I want to be treated like this?
4. Will the outcome of my decision make me feel guilty?
legal but unethical examples - Answer- making low-quality products that break easy,
cancelling a company retirement plan, avoiding taxes on U.S. revenues by using
offshore banks, charging a very high price for brand-name drugs when inexpensive
generic versions are available
legal & ethical examples - Answer- boycotting businesses, consumer-friendly policies,
employee fringe benefits, diversity policies
illegal & unethical examples - Answer- embezzlement, consumer fraud, sexual
harassment, bribes, cash payments to avoid taxes
illegal but ethical examples - Answer- paying more despite union contract limits, selling
raw milk for human consumption across state lines, taking usable items from corporate
dumpsters and donating them
, what are 4 ways businesses foster an ethical culture? - Answer- 1. set an ethical
example
2. create an ethical hiring culture
3. reward ethical behavior
4. create ethical codes & training programs
whistleblower - Answer- an employee who reports organizational misconduct to the
government or the public
Corporate Social Responsibility (CSR) - Answer- a business's concern for society's
welfare
CSR examples - Answer- reducing carbon footprints, improving labor policies,
participating in fair-trade, charitable giving, volunteering in the community, corporate
policies that benefit the environment, socially and environmentally conscious
investments
Triple bottom line - Answer- the concept that firms should commit to measuring their
social and environmental impact in-addition to their financial performance
what are the 3 P's? - Answer- Profit, People, Planet
how can companies be socially responsible? - Answer- charities, sponsoring sport
teams, buying ads in school newspapers, donating to museums, permit employees to
volunteer at charities, and support similar community activities
Sustainability - Answer- economic development that meets the needs of the present
without compromising the ability of future generations to meet their own needs
Green Marketing - Answer- promoting environmentally friendly causes, products, or
stores
globalization - Answer- increasing connectivity & interdependence of the world's
economies, societies, & cultures
global economy - Answer- increasing interaction of the world's economies as a single
market instead of many separate markets
imports - Answer- a company buys goods outside the country and resells them
domestically
what can importing result in? - Answer- job loss domestically, less "home-grown" items
being purchased, less need for domestic products to be purchased
2 types of balance of trade - Answer- trade surplus and trade deficit
