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Profitability is viewed as essential to the future success of corporations such as Starbucks.According to Starbucks' Mission Statement and Guiding principles, which of the following alternatives correctly identifies the placement of profitability?


A) profitability, partners, diversity, coffee, customers, community and environment
B) partners, diversity, profitability, coffee, customers, and community and environment
C) coffee, partners, diversity, customers, profitability, and community and environment
D) diversity, partners, profitability, coffee, customers, and community and environment
E) customers, partners, diversity, coffee, community and environment, and profitability

F) C) and D)
G) A) and B)

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The FTC established to Do Not Call Registry in 2003 for consumers who do not want to receive unsolicited telemarketing calls.Today, a telemarketer can be fined up to __________ for each call made to a telephone number posted on the registry.


A) $500
B) $750
C) $1,250
D) $8,750
E) $16,000

F) None of the above
G) C) and D)

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Sustainable development refers to


A) placing restraints on a company's growth until all ancillary support services are in place to ensure a new venture's success.
B) global economies that are slowly moving from an agrarian-base to an industrial base.
C) conducting business in a way that protects the natural environment while making economic progress.
D) global economies that are no longer dependent upon outside support or special tariff-free trade agreements.
E) the process of manufacturing or producing products made exclusively from recycled materials.

F) A) and E)
G) B) and C)

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The Family Talk About Drinking guidebook developed by Anheuser-Busch serves as a guideline on how to act responsibly when faced with a moral dilemma such as underage drinking and is an example of


A) ethical behavior in marketing.
B) negative advertising.
C) the societal marketing concept.
D) consumerism.
E) legal responsibility in marketing.

F) C) and D)
G) A) and B)

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Although research shows consumers are sensitive to ecological issues, they may not be willing to purchase a given product or service solely on the basis of its environmental claims.They may be unwilling to sacrifice convenience and pay higher prices to protect the environment and


A) the opportunity to make an ecologically sound purchase is not usually available to them.
B) they may be confused about which products are truly "environmentally safe" given that many marketers claim to produce "green products" even if they aren't.
C) protecting the environment in one area actually can create a disruption of the environment in another area.
D) ecological issues are still a matter of opinion even within the scientific community itself.
E) ecological issues are vulnerable to public sentiment and the "cause" changes almost from day to day.

F) C) and E)
G) A) and B)

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Business culture affects ethical behavior in competition.Two kinds of unethical behavior are most common:


A) price fixing and copyright infringement.
B) economic espionage and bribery.
C) bribery and extortion.
D) price fixing and economic espionage.
E) economic espionage and anti-trust infractions.

F) B) and E)
G) A) and E)

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Companies need to be vigilant in product quality testing not simply from an ethical perspective but from a financial one as well.Personal claims and property damage from consumer product safety incidents cost companies more than __________ annually.


A) $138 million
B) $900 million
C) $300 billion
D) $500 billion
E) $700 billion

F) B) and D)
G) A) and D)

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Mattel's Cabbage Patch Snacktime Kids doll was designed to eat plastic toys that were drawn in to the doll's motorized mouth.However, despite extensive testing, the doll was found to "eat" the child's hair and was subsequently recalled and discontinued.Mattel discontinued the item because of the consumer's


A) right to choose.
B) right to be informed.
C) right to be treated courteously.
D) right to safety.
E) right to happiness.

F) B) and E)
G) B) and C)

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The set of values, ideas, and attitudes that is learned and shared among the members of an organization is referred to as


A) mission statement.
B) operational vision.
C) socialization process.
D) corporate ideals.
E) corporate culture.

F) D) and E)
G) A) and C)

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MasterCard International links usage of its card with fund raising for institutions that combat cancer, heart disease, child abuse, and muscular dystrophy.Master Card gives a modest percentage of charges on their credit cards to the institutions.What is this called, and how does it affect cardholders' behavior?

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This practice is called cause marketing,...

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The clandestine collection of trade secrets or proprietary information about a company's competitors is referred to as __________.


A) economic espionage
B) industrial espionage
C) marketplace espionage
D) industrial surveillance
E) marketplace surveillance

F) B) and D)
G) B) and C)

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The Consumer Bill of Rights refers to


A) a law that codified the ethics of exchange between manufacturers, distributors, and suppliers, including the rights to safety, to be informed, and to be heard.
B) a law that codified the ethics of exchange between manufacturers, distributors, and suppliers, including the rights to safe working conditions, fair pay, and, a voice in decision making.
C) a law that codified the ethics of exchange between buyers and sellers, including the rights to safety, to be informed, to choose, and to be heard.
D) a law that guarantees consumers the right to be compensated through replacement, repair, or reimbursement for products that fail to perform as promised by the manufacturer.
E) a law that guarantees consumers the right to be compensated through replacement, repair, or reimbursement for products or services that fail to perform or meet the expectations promised by the manufacturer or service provider.

F) B) and D)
G) A) and B)

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What are the five steps in a social audit?

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A social audit consists of the following...

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Suppose you are a senior executive at Pepsi-Cola and that a Coca-Cola employee offers to sell you the marketing plan and sample for a new Coke product at a modest price.When asked this question __________ percent of marketing and advertising executives said they would buy the plan and product sample if there were no repercussions.


A) 15
B) 36
C) 52
D) 67
E) 89

F) A) and E)
G) A) and D)

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FIGURE 4-3 FIGURE 4-3   -There are three types of social responsibility, each relating to particular constituencies.According to Figure 4-3 above, constituency  A  represents __________ responsibility. A) societal B) stakeholder C) profit D) customer E) seller -There are three types of social responsibility, each relating to particular constituencies.According to Figure 4-3 above, constituency "A" represents __________ responsibility.


A) societal
B) stakeholder
C) profit
D) customer
E) seller

F) B) and E)
G) D) and E)

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There are three types of social responsibility, each relating to particular constituencies.According to Figure 4-3 above, constituency "C" represents __________ responsibility.


A) societal
B) stakeholder
C) profit
D) customer
E) seller

F) A) and E)
G) A) and D)

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Recently, six executives of Tyson Foods, one of the world's largest poultry, beef, and pork processors, were arrested for illegal smuggling of undocumented foreign workers into the U.S.to work at Tyson plants.Tyson's violations are the result of __________, one of the major reasons why some companies fail to establish ethical behavior.


A) too ambiguous a mission statement
B) the absence of an executive summary
C) the absence of whistle-blowing protocol
D) top management's behavior
E) the absence of an adequate employee compensation program

F) D) and E)
G) B) and C)

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FIGURE 4-1 FIGURE 4-1   -, an employee of Competitor A (Coca-Cola)  attempted to share its marketing plan with an employee of Competitor B (Pepsi)  for a  fee  of $10,000.What should the Pepsi employee do? A) buy the marketing plan if assured there would be no repercussions B) ignore the offer to buy the marketing plan and hope it would go away C) immediately contact Coca-cola to advise them of the plot to sell the marketing plan D) immediately report the offer to the Better Business Bureau E) advise the Pepsi employee that it would be unfair and unethical to buy the plan -, an employee of Competitor A (Coca-Cola) attempted to share its marketing plan with an employee of Competitor B (Pepsi) for a "fee" of $10,000.What should the Pepsi employee do?


A) buy the marketing plan if assured there would be no repercussions
B) ignore the offer to buy the marketing plan and hope it would go away
C) immediately contact Coca-cola to advise them of the plot to sell the marketing plan
D) immediately report the offer to the Better Business Bureau
E) advise the Pepsi employee that it would be unfair and unethical to buy the plan

F) C) and E)
G) B) and D)

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A social audit is a systematic assessment of a firm's objectives, strategies, and performance in terms of social responsibility.The five steps of the audit are (1) recognition of a firm's social expectations and the rationale for engaging in social responsibility endeavors, (2) identification of social responsibility causes or programs consistent with the company's mission, (3) determination of organizational objectives and priorities for programs and activities it will undertake, (4) specification of the type and amount of resources necessary to achieve social responsibility objectives and (5)


A) identification of environmental forces that could interfere with the firm's plans.
B) evaluation of possible benefits both tangible and intangible to the firm's bottom line.
C) evaluation of social responsibility programs and activities undertaken and assessment of future involvement.
D) selection of a team leader and assignment of tasks and task deadlines for team members.
E) creation or selection

F) B) and E)
G) A) and E)

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Starbucks' social responsibility report is focused on several topical areas such as their partners, coffee, customers, community and environment, profitability, and __________.


A) diversity
B) sustainability
C) religious values
D) ethical behavior
E) increase market share

F) B) and E)
G) All of the above

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