1 Alpha College would like to increase the number of minority employees at all levels within the organization. It would like to do this to ensure that minorities are represented within the organization in approximately the same proportion as in the surrounding community. Which of the following would accomplish these goals?

a.

Alpha considers minority applicants for job openings until it meets the number of minority members it has determined it should hire.

b.

Alpha can institute a program that recruits more heavily in minority areas with the goal that they will receive more qualified minority applicants.

c.

Alpha can write the job description in such a way that only minority applicants of a particular race will qualify for positions.

d.

Alpha pledges to recruit and hire a certain number of minority members by a specific date.

2 April, a recent college graduate, has always been concerned about protecting the environment and now hopes to play a major role in seeing that legislation for protecting the environment is enforced. With whom should April seek employment?

a.

A recycling center

b.

A large, environmentally friendly corporation

c.

The Environmental Protection Agency

d.

The Equal Employment Opportunity Commission

e.

The Commission for Cleaner Air

3 Tina is a real estate broker who has been asked to sell a property by a client. The property is exactly what she has wanted for herself. She knows the seller is unaware of the value of the property and is relying on her to make the best decision. She knows if she markets it aggressively, she can get several thousand dollars more for the property than the seller is asking. Tina talks to her son and asks him to buy the property in his name, with her funds, and to transfer the property to her after the transaction is completed. She contacts her client and tells him she has a buyer ready who is offering to purchase the property for a thousand dollars over the listing price. The seller agrees to the sale unaware of the other issues involved. As it relates to the topic of this chapter, which of the following best describes Tina’s actions?

a.

Tina has no ethical issues because the seller received more money in the transaction than the listing price.

b.

Tina has sacrificed a thousand dollars more than she needed to pay for the property.

c.

Tina has knowingly engaged in a conflict of interest.

d.

Tina helped her client enter a transaction in which everyone benefitted.

4 Jeremy owns a muffler shop in a large city. He provides services such as muffler repair, replacement, and minor car repair work. Last week Harold came into his business driving a 1957 Belair Convertible and told Jeremy that he wanted to convert it to a street-rod. He asked Jeremy if he would adjust the muffler so it would emit 125 decibels to give it a “muscle” sound. Harold told Jeremy he would pay an extra $1,000 in cash to get the work done. The legal limit for exhaust system noise is 95 decibels. Jeremy could do the work in a few hours and knows that no one would know that it came from his shop. His business has been slow lately and he is having a difficult time meeting his financial obligations; in addition, his son was just diagnosed with cancer. Which of the following is mostcorrect regarding Jeremy’s decision?

a.

Jeremy must make a decision that will impact society.

b.

Jeremy must make a decision that will impact him, personally.

c.

Jeremy has no decision to make, he must comply with the law.

d.

Jeremy is facing a moral, legal, and ethical decision.

5 Betsy’s Clothiers, a dress factory in Boston since 1927, had 100 employees working in her dress-making factory. Many of the employees are women and children who work long hours. She rotates shifts throughout the day so employees do not do the same tasks throughout the entire day. She discovered that this makes it possible for the children to work longer and harder. She also allows employees to take a 15-minute lunch break and two breaks during the day to use the restroom. One of her employees, a ten-year-old named Sam, has complained that it is too cold in the factory to work in the winter and too hot to work in the summer and that 15 minutes is an insufficient amount of time to eat lunch. He has reported Betsy’s Clothiers to the mayor and asked that he intervene on behalf of the employees at the factory. Which of the following statements was true about government regulation of businesses prior to 1930 and how this regulatory scheme will affect Sam?

a.

Government frequently became involved in the day-to-day activities of businesses so this company should have expected government regulators to intervene in this situation.

b.

Government will probably not interfere because it only became involved in obvious abuse of the free-market system.

c.

Government agencies published accounts of consumers’ grievances and held sellers accountable for their actions so it is likely Sam’s story will be heard and acted on.

d.

It was not widely believed that competition would correct abuses in the business marketplace so intervention will be immediate and swift.

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