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The fact that political and economic elites in other countries tolerate corrupt and unethical conduct and are the very ones to benefit
from that conduct in certain cases does not provide evidence to support the claim that what we take as unethical is ethically acceptable there.
           
TRUE
FALSE
   
The maximalist approach to the question of whether there are any values that can be reasonably applied across cultures holds that as
long as corporations cause no harm, they have fulfilled their ethical responsibilities by meeting their economic goal of producing goods,
services, jobs, and profits for consumers, employees and shareholders.
           
TRUE
FALSE
   
One major challenge to the minimalist approach which holds that business is free to pursue its economic interests as long as certain
minimal moral rights are not violated in the process is that it does not seem to explain why the responsibilities correlated with these
rights fall to multinational business rather than to government.
           
TRUE
FALSE
   
Decisions made within businesses only rarely can have as great an influence on international affairs as those made within government,
so they are not one of the central problems of worldwide economic integration.
           
TRUE  
FALSE
   
Defenders of globalization argue that international economic integration is an essential step in worldwide economic growth which
alone can adequately address worldwide poverty and deprivation.
           
TRUE
FALSE
   
The argument that the free, competitive international market will provide a more efficient and optimal distribution of economic
goods and services is utilitarian in that the recipient of the market's benefits is the collective "greatest number of people" while
allowing that the market may cause harm to actual individuals and their families in the process.
           
TRUE  
FALSE
   
There is no strong worldwide political consensus in favor of local environmental, labor, and consumer regulation, so there is no
opposition to free trade agreement and the WTO that will be major engines for deregulation.
           
TRUE  
FALSE
   
Defenders of the "Golden Straitjacket" policies argue that poor nations are free to reject such policies as, among others, making
the private sector the engine of economic growth, eliminating and lowering tariffs on imported goods, getting rid of quotas and
domestic monopolies, opening industries, stock, and bond markets to direct foreign ownership and investment, but that the poor
nations cannot reasonably expect economic prosperity to follow from alternative policies.
This is the correct answer.
           
TRUE
FALSE
   
Defenders of institution like the WTO, World Bank, and the IMF claim that because these institutions exist and have authority
only because nations have agreed to have them exist with authority, have freely entered into agreements that created and
control them, their critics can be accused of supporting undemocratic policies.
This is the correct answer.     
 
TRUE
FALSE
   
Even though much of the wealth of the industrialized nations relies on the resources and markets in the developing world,
that is not a reason to believe that taking steps to relieve poverty in these countries is an ethical duty of the citizens and business
of the industrialized world rather than a simple act of charity.
           
TRUE  
FALSE
   
Identify the practice which is not a criticism of the World Trade Organization (WTO), the International Monetary Fund (IMF), the World Bank,
and the G8 that are accused of helping only the rich and harming the poor:
                       
These institutions demand that developing economies remove tariffs in their own economies while tolerating protectionist tariffs for
industries in the developed economies.                    
Loss of tariffs within poor countries makes them vulnerable to the economic power of industrialized countries and international corporations.
In fiscal year 2001, the World Bank lent more than $17 billion to developing countries as part of an effort to reduce poverty in
developing countries.           
Continued subsidies within developed countries that protect domestic industries prevent poorer countries from doing business
with wealthier populations.
             
Select the statement this is not an objection to insisting that diversity of values in cultures entails ethical relativism:
                       
It is a mistake to conclude too quickly that because cultures are diverse, they necessarily hold diverse ethical values.
Given different circumstances, conduct that might be condemned or excused in one context might be excused or condemned in
another. But, excusing unethical behavior is not the same as justifying it.              
Even in cases where a local culture holds values different from one's own, a person's own integrity would require that one's
personal values not be abandoned.               
Attempts to justify or excuse otherwise unethical conduct by appeals to local values and customs that are advanced only to contribute
to the bottom line are simply another instance where ethical responsibilities restrict self-interest. This fact alone is not a good reason
to abandon ethics in the face of a disagreement of values.             
All of the above.
None of the above.
             
Which of the following rights might clearly be the sole responsibility of government rather than of international business?
                       
The right to minimal education.                    
The right to nondiscriminatory treatment.               
The right to physical security.            
The right to a fair trial.
Answers #1 and #4 are both correct.           
Answers #3 and #4 are both correct.
             
Identify the ways in which the process of international economic integration has increasingly become more common and accelerated
in the last decade or two:
                       
International trade agreements such as the General Agreement on Tariffs (GATT) and the North American Free Trade
Agreement (NAFTA) have been established.             
The Euro was adopted beginning 2002 within the European Union, establishing a common currency.                 
International loans from the World Bank have supported major development projects throughout the world.                       
Monetary policies established by the IMF have made it increasingly easy for capital to flow between countries.
All of the above.                    
None of the above.
             
Select the reasoning that challenges support for the ethical case for free trade and international economic cooperation:
                       
The pursuit of profit within social and economic arrangements which secure free and open competition will allocate
resources to their most highly valued uses and distribute those resources in ways that will produce the greatest good for the greatest number of people.               
International competition for labor, jobs, goods and services, natural resources, and capital will, over time, increase the overall well-being of everyone.            
Economic integration is a major impediment to conflict: the more countries cooperate economically, the less likely they will want to go to war.
Even though newly employed workers in the poorer countries who are forced to take jobs that are at a subsistence level in sweatshop conditions
are better off in these jobs than they would be without them, the choice to work under such conditions is little more than extortion and
exploitation by business.
             
Choose the statement that does not provide a reasonable way for international businesses to treat their employees in foreign countries on
a comparable level with their treatment of employees in their home countries:
                       
Pay wages and benefits that are somewhere between those paid in the home country and the minimal wages that will get people to
work in the host country.
Pay wages and benefits that are very similar in the home and host countries.               
If it takes two people earning minimum wages to support a family of four just above the poverty level in the United States, a minimum
wage in the host country would be similarly determined.   
All of the above.         
None of the above.
             
Choose the statements that do not support the idea that international businesses should rely on local firms and independent contractors
to supply workers in host countries:
 
To benefit from less-costly local labor, business should hire workers directly and take full and direct responsibility for how they are treated.                 
Hiring individuals as contractors on a per-item basis avoids having to pay fair wages and benefits.                      
As independent contractors, these individuals are responsible for the terms and conditions of their own employment.              
Local firms are better equipped to recruit competent workers who will be satisfied with minimum wages.
             
Here are some ethical reasons for regulating economic activity. Determine which ones are not likely to be judged a barrier to free trade:
                       
Protecting the environment.             
Protecting workers and consumers.              
Protecting family farms.                    
Protecting domestic industries.                     
All of the above.
None of the above.
             
Which statement is not a policy included in Thomas Friedman's "Golden Straitjacket," the policies that a country should follow
for itself if it "opts for prosperity"?
                       
Getting rid of quotas and domestic monopolies.                  
Privatizing state-owned industries and utilities.                   
Opening industries, stock, and bond markets to direct foreign ownership and investment.
Restricting imports.              
All of the above.                     
All of the above.
             
Identify the statement that challenges the criticism that global economic integration threatens deeply held noneconomic values:
                       
The WTO, World Bank, and IMF are themselves undemocratic bureaucracies that threaten the political values and self-determination in poor countries.                 
Private multinational corporations are replacing legitimate governments as the true international decision makers.
The policies of the "Golden Straitjacket" are simply rational requirements for a nation that chooses prosperity over poverty.
Financial and economic norms are analogous to scientific laws discovered by social scientists.            
Global market capitalism fueled by multinational corporations seeks to expand worldwide markets for their products and creates a
cultural homogenization which threatens local cultures and traditions.
 
The ability or authority to guide and direct others toward a goal is called:
a. supervision.
b. control.
c. management.
d. governance.
e. leadership.
 
_________ provide a blueprint for what a firm's corporate culture should be.
a. Employees
b. Middle management
c. The mission statement
d. Top management
e. Moral codes
 
Ethical leaders need both knowledge and ___________ to make the right decisions.
a. culture
b. experience
c. passion
d. courage
e. vision
 
Traits of strong leaders include all of the following EXCEPT:
a. knowledge
b. wisdom
c. courage
d. authority
e. passion
 
With regards to benefits of ethical leadership, which statement is incorrect?
a. Ethical leaders communicate and monitor an organization's values, ensuring that employees are familiar with the company's purpose and beliefs.
b. Ethical leaders provide cultural motivations for ethical behavior, such as reward systems for ethical conduct and support for ethical decision making.
c. Ethical leaders encourage employees to act in an ethical manner in their day-to-day work environment.
d. Ethical leadership can lead to higher employee satisfaction and commitment.
e. Working for a company with ethical leaders can raise costs for the firm as well as serve to decrease employee productivity.
 
Ethical leaders generally adopt one of two approaches to leadership: a _________-based approach or a(n) ________-based approach.
a. obedience, reliability
b. compliance, integrity
c. submission, honesty
d. leader, follower
e. certainty, risk
 
Taylor purchases a vacuum cleaner that the seller promoted as top of the line and best in its class. However,
at the first use he realizes that the vacuum cleaner fails to function as he expected given that it was promoted as top of the
line and best in its class. In the context of warranty, which of the following statements is true?
A) An implied warranty of fitness for a particular purpose was breached.
B) An implied warranty of merchantability was breached.
C) An express warranty was breached.
D) No breach of warranty occurred as it is a case of puffing.
 
A researcher can find tax information on home page sites of:
a. Governmental bodies.
b. Tax academics.
c. Publishers.
d. CPA firms.
e. All of these.
 
Tax research involves which of the following procedures:
a. Identifying and refining the problem.
b. Locating the appropriate tax law sources.
c. Assessing the validity of the tax law sources.
d. Follow-up.
e. All of these.
 
Which tax-related website probably gives the best policy-orientation results?
a. taxalmanac.org.
b. irs.gov.
c. taxsites.com.
d. taxanalysts.com.
e. ustaxcourt.gov.
 
Carmen informs the sales clerk of an electronics store that she needs a computer that can maintain a 12-hour battery charge. The sales clerk sells a computer to Carmen and withholds the fact that it cannot maintain a 12-hour battery charge. Carmen find out that the computer can maintain only a 6-hour battery charge. Which of the following results is accurate in this scenario?
A) Carmen can sue the store for breach of implied warranty of merchantability.
B) Carmen can sue the store for breach of implied warranty of fitness for a particular purpose.
C) Carmen cannot sue the store as no breach of warranty occurred because the clerk made no affirmative statement or promise about the computer.
D) Carmen cannot sue the store as no breach of warranty occurred because the clerk has no responsibility for the way the Carmen used the computer.
 
Which court decision would probably carry more weight?
a. Regular U.S. Tax Court decision
b. Reviewed U.S. Tax Court decision
c. U.S. District Court decision
d. Tax Court Memorandum decision
e. U.S. Court of Federal Claims
 
Which Regulations have the force and effect of law?
a. Procedural Regulations
b. Finalized Regulations
c. Legislative Regulations
d. Interpretive Regulations
e. All of these
 
Which items tell taxpayers the IRS's reaction to certain court decisions?
a. Notices
b. Revenue Procedures
c. Revenue Rulings
d. Actions on Decisions
e. Legislative Regulations
 
Which court decision carries more weight?
a. Federal District Court
b. Second Circuit Court of Appeals
c. U.S. Tax Court decision
d. Small Cases Division of U.S. Tax Court
e. U.S. Court of Federal Claims
 
Which company does not publish citators for tax purposes?
a. John Wiley & Sons
b. Commerce Clearing House
c. Research Institute of America
d. Westlaw
e. Shepard's
 
In a strict liability lawsuit, if someone is injured after either using a product he or she knows to be defective or misusing a product in an unforeseeable manner, the likely result is
A) that the plaintiff contributed to his own injury and contributory negligence is a valid defense to a strict liability claim.
B) that the plaintiff contributed some percentage to his own injury and comparative negligence will reduce his damages in a strict liability lawsuit.
C) that the company will raise the assumption of the risk or misuse defense.
D) that the company will be held liable because it did not manufacture its product to protect people from any misuse of the product.
 
Which is not a primary source of tax law?
a. Notice 89-99, 1989-2 C.B. 422.
b. Estate of Harry Holmes v. Comm., 326 U.S. 480 (1946).
c. Rev. Rul. 79-353, 1979-2 C.B. 325.
d. Prop. Reg. § 1.7524T(f).
e. All of these are primary sources.
 
Which statement is incorrect with respect to taxation on the CPA exam?
a. The CPA exam now has only four parts.
b. There are no longer case studies on the exam.
c. A candidate may not go back after exiting a testlet.
d. Simulations include a four-function pop-up calculator.
e. None of these are incorrect.
 
In terms of the tax formula applicable to individual taxpayers, which, if any, of the following statements is correct?
a. In arriving at taxable income, a taxpayer must choose between the standard deduction and deductions from AGI.
b. In arriving at AGI, personal and dependency exemptions must be subtracted from gross income.
c. In arriving at taxable income, a taxpayer must choose between the standard deduction and claiming personal and dependency exemptions.
d. The formula does not apply if a taxpayer elects to claim the standard deduction.
e. None of these.
 
In terms of the tax formula applicable to individual taxpayers, which, if any, of the following statements is correct?
a. In arriving at AGI, a taxpayer must elect between claiming deductions for AGI and deductions from AGI.
b. In arriving at taxable income, a taxpayer must elect between claiming deductions for AGI and deductions from AGI.
c. If a taxpayer has deductions for AGI, the standard deduction is not available.
d. In arriving at taxable income, a taxpayer must elect between deductions for AGI and the standard deduction.
e. None of these.
 
Regarding the tax formula and its relationship to Form 1040, which, if any, of the following statements is correct?
a. Most exclusions from gross income are reported on page 2 of Form 1040.
b. An "above the line deduction" refers to a deduction from AGI.
c. A "page 1 deduction" refers to a deduction for AGI.
d. The taxable income (TI) amount appears both at the bottom of page 1 and at the top of page 2 of Form 1040.
e. None of these.
 
Which of the following items, if any, is deductible?
a. Parking expenses incurred in connection with jury duty—taxpayer is a dentist.
b. Substantiated gambling losses (not in excess of gambling winnings) from state lottery.
c. Contributions to mayor's reelection campaign.
d. Speeding ticket incurred while on business.
e. Premiums paid on personal life insurance policy.
 
Conflict management styles include all of the following EXCEPT:
a. competing.
b. avoiding.
c. guarding.
d. accommodating.
e. collaborating.
 
Many of the day-to-day decisions in a firm are made by:
a. top management.
b. middle management.
c. employees.
d. board of directors.
e. customers.
 
Which of the following is not a category of communication?
a. Interpersonal communication
b. Small group communication
c. Nonverbal communication
d. Coercive communication
e. Listening
 
_____________occurs when the leaders and followers share the same vision, ethical expectations, and objectives for the company.
a. Interpersonal communication
b. Ethical conflict
c. Leader-follower congruence
d. Successful leadership
e. Authentic leadership
 
With regards to leadership styles that influence ethical decisions, the challenge for leaders is _______________________, which is essential if organizational leaders are to steer their companies toward success.
a. to make profits
b. to gain trust and commitment of organizational members
c. to motivate organizational members
d. to increase productivity
e. to communicate goals effectively
 
Which type of leader inspires employees to follow a vision, facilitates change, and creates a strongly positive performance climate? This type of leader is considered to be the most effective.
a. The coercive leader
b. The coaching leader
c. The democratic leader
d. The pacesetting leader
e. The authoritative leader
 
All of the following represent steps in the RADAR model EXCEPT:
a. realize.
b. avoid.
c. discover.
d. answer.
e. recover.
 
Ethical leadership is possible without effective communication.
a. True
b. False
 
Organizational culture emerges whether or not there is effective leadership.
a. True
b. False