New Venture Creation International Edition 6th Edition by Kathleen R. Allen – Test Bank

Chapter 11—Establishing an Ethical and Socially Responsible Business

TRUE/FALSE

1. Following the Golden Rule that says “Do unto others as you would have them do unto you,” is a comprehensive answer to ethical dilemmas in the workplace.

ANS: F PTS: 1

2. Entrepreneurs should wait until the venture is profitable before making an investment in social responsibility.

ANS: F PTS: 1

3. A company’s core values derive from the personal values and beliefs of the founder.

ANS: T PTS: 1

4. The mission statement loosely identifies the company’s objectives.

ANS: F PTS: 1

5. Strategies are the plans for achieving the goals, and ultimately the mission, of the company.

ANS: T PTS: 1

6. An effective ethics program may protect a company from criminal penalties.

ANS: T PTS: 1

7. Ethics derives from the cultural, social, political, and ethnic norms with which we were raised as children.

ANS: T PTS: 1

8. Ethical issues are the same for managers and leaders regardless of the size of the company.

ANS: F PTS: 1

9. E-commerce minimizes conflicts of interests.

ANS: F PTS: 1

10. Meeting ethical expectations is part of social responsibility.

ANS: T PTS: 1