Briefly discuss the incentives for financial managers to conduct their business in an ethical manner
What will be an ideal response?
Answer: Extreme ethical lapses such as those evident in the Madoff Ponzi scheme may also break laws and result in fines or imprisonment. In less extreme cases, deceptive accounting practices or sales techniques once exposed lead to a loss of trust. Because individuals and firms are reluctant to do business with those they mistrust, a reputation for unethical behavior over the long run leads to adversarial relations with business partners, a loss of customers, and destruction of the firm's value.
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Often, inexperienced salespeople mistakenly believe that during the sales call, they should
A. note the office environment. B. do all the talking. C. listen carefully to the customer. D. act positively. E. pay attention to body language.
Sarbanes-Oxley requires that the audit committee be composed of
a. At least 50% of key officers who are on the board of directors b. A majority of all of the members of the board of directors c. The outside members of the board of directors and the external auditor d. Entirely outside members of the board of directors
Answer the following statements true (T) or false (F)
1. Self-awareness is the most essential trait of emotional intelligence. 2. As an emotional intelligence trait, social awareness refers to the ability to communicate clearly, disarm conflicts, and build strong personal bonds. 3. Organizational behavior is an interdisciplinary field dedicated to better understanding and management of people at work. 4. Lifelong behavior patterns are dictated by values that are fairly well set by the time people are in their early teens.
Which of the following is not true about the global standardization of a firm's manufacturing operations?
A. Fewer labor hours are needed for plant design because each new plant is essentially a scaled-up or scaled-down version of an existing one. B. Standardization of production processes simplifies organization at headquarters by enabling the work to be accomplished with a smaller staff of support people. C. The permanent group of experts that international companies maintain to give technical assistance to overseas plants will be larger but can be shared across more countries and sites. D. Extra technicians accustomed to working with the same machinery can be borrowed from the domestic operation as needed.