Stakeholders & Ethics (20/20)

Front 1

In the long run, an organization that follows unethical practices is most likely to ________.

Back 1

be bureaucratized

Front 2

________ occurs when an employee informs an outside person or agency, such as a government agency, a newspaper, or television reporter, about an organization's (its managers') illegal or immoral behavior

Back 2

Whistle-blowing

Front 3

A(n) ________ problem is a problem in determining managerial accountability that arises when delegating authority to managers.

Back 3

Agency

Front 4

The workforce and managers are considered outside stakeholders.

Back 4

False

Front 5

All stakeholder groups are equally important for an organization.

Back 5

False

Front 6

Suppliers have a direct effect on the organization's efficiency and an indirect effect on its ability to attract customers.

Back 6

True

Front 7

Outside directors of a corporation are full-time employees of the corporation.

Back 7

False

Front 8

Customers are usually an organization's smallest outside stakeholder group.

Back 8

False

Front 9

Which of the following is one of the two conditions that lead to a moral hazard problem?

Back 9

the agent has an incentive to pursue goals and objectives that are different from the principal's

Front 10

Which of the following would be considered to be the lowest level of management in a chain of command?

Back 10

functional managers

Front 11

"Self-dealing" is defined as ________.

Back 11

a manager acting in his own best interest, as opposed to the interests of the other stakeholders

Front 12

In an organization, the position of the ________ is one of trusteeship.

Back 12

members of the board of directors

Front 13

Which of the following terms best describes the system of hierarchical reporting relationships in an organization?

Back 13

chain of command

Front 14

________ are people who have an interest or claim in an organization, in what it does, and in how well it performs

Back 14

Stakeholders

Front 15

Shareholders are a part of inside stakeholders.

Back 15

True

Front 16

An inside director of a company can be a professional director who holds positions on the boards of many companies.

Back 16

False

Front 17

Behavior that follows accepted ethical rules confers a(n) ________ effect on an individual or an organization.

Back 17

reputation

Front 18

Which of the following is an outside stakeholder group?

Back 18

suppliers

Front 19

The reputation effect ________.

Back 19

reduces transaction costs

Front 20

In effect, ________ are the agents or employees of shareholders.

Back 20

managers