Business Ethics Case Studies And Selected Readings 7th Edition By Marianne – Test Bank

Multiple Choice Questions

1. Randy White is the executive director of a non-profit preschool for special needs children. Part of Randy’s responsibilities include fundraising for the preschool.  Because of his experience and success in operating specialty pre-schools, Randy is sought after as a consultant at locations around the country to assist in the start-up and operation of such facilities.  Randy does so quite frequently.  Randy does not take vacation time for this work, and his consultant fees (which range from $750 – $1500 per day) are kept by him as personal income.  Randy uses his secretary at the preschool to book his travel arrangements and prepare his consultant reports and bills for these outside engagements.

1. Randy’s activities are ethical so long as disclosed.
2. Randy is using the time and resources of his employer in an unethical manner.
3. Randy’s activities are ethical whether disclosed or undisclosed.
4. There is no conflict of interest in Randy’s activities.

2. Why did Albert Meyer hesitate to disclose his findings on New Era?

1. He was not sure
2. He was asked by his superiors to let it go
3. He did not have tenure
4. Both b and c
5. All of the above

3. William Aramony:

1. Was convicted of fraud and served a prison sentence.
2. Still received his compensation.
3. Had his pay taken by the federal court.
4. a and b only
5. a, b and c

4. Which advice was not given by ACORN employees to undercover reporters seeking to find housing?

1. “You can’t say what you do for a living.”
2. “Honesty is not going to get you a house.”
3. “Just put in bigger numbers for your income.”
4. “We don’t care what goes on in the house.  We just help you with the mortgage.”

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True/False Questions

F          1.         Nonprofits are exempt from ethical issues because their intent is philanthropic.

F          2.         Nonprofits and their boards need not be concerned with conflicts of interest.

F          3.         You cannot commit the crime of embezzlement from a nonprofit.

F          4.         Nonprofits are permitted to use raised funds in any manner they deem acceptable.

T          5.         Nonprofits have fallen victim to widespread Ponzi schemes.

T          6.         Checking the books and records of an organization is one method for establishing the legitimacy of its claims.

F          7.         The Red Cross disclosed that 9-11-01 funds would be used for administrative purposes.

T          8.         The Red Cross CEO resigned in protest over the use of Red Cross funds.

F          9.         The Cornell researchers did not have a conflict because the funding for their lung cancer research did not come directly from the tobacco companies.