chapter_2_answer_sheet_copy - Chapter 2Integrity and...

Chapter 2—Integrity and Ethics: Foundations for Success in Small Business
TRUE/FALSE
1. Many entrepreneurs are people of principle, and integrity regulates their quest for profits.
PTS: 1 REF: p. 39 OBJ: 2-1 TYPE: C
NAT: Ethics | Dynamics
2. Small businesses that practice skimming of income are acting unethically and illegally.
PTS: 1 REF: p. 47 OBJ: 2-2 TYPE: C
NAT: Ethics | Finance
3. Skimming by small business is sufficiently widespread to be recognized as a general problem.
PTS: 1 REF: p. 47 OBJ: 2-2 TYPE: C
NAT: Ethics | Finance
4. According to a Baylor University survey, small business owners experienced more ethical problems
pertaining to the environment than problems with customer relationships.
PTS: 1 REF: p. 39 OBJ: 2-2 TYPE: C
NAT: Ethics | Dynamics
5. Sales people must often walk a fine line between persuasion and deception.
PTS: 1 REF: p. 42 OBJ: 2-2 TYPE: C
NAT: Ethics | Ethical and Legal
6. Entrepreneurs who do not behave in a way consistent with the noble values, beliefs, and principles
they claim to hold are said to be compromising their integrity.
PTS: 1 REF: p. 38 OBJ: 2-1 TYPE: D
NAT: Ethics | Dynamics
7. Unlike employees in small firms, persons who work for large corporations face pressure from various
sources to act in ways that conflict with their own sense of what is right and wrong.
PTS: 1 REF: p. 48 OBJ: 2-1 TYPE: C
NAT: Ethics | Dynamics

8. In a nationwide survey of employees of small firms holding managerial and professional positions, less
than half reported feeling no pressure to compromise their own ethical standards.
PTS: 1 REF: p. 45 OBJ: 2-2 TYPE: C
NAT: Ethics | Dynamics
9. Nobel Prize winning economist Milton Friedman stated that there is only one social responsibility of
business – to use its resources and engage in activities designed to increase profits no matter what is
required.
PTS: 1 REF: p. 41 OBJ: 2-2 TYPE: C
NAT: Ethics | Economic Environments
10. Unethical business behaviors take place in every country, but some countries must deal with more
serious forms of illegal business activity than others.