False rationale a well run business that suffers a

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FALSE Rationale: A well-run business that suffers a single bad leader will set in motion multiple failures, which can permeate the organization and last far longer than the failed leader. This can occur at the top, of course, but it can also occur at any level: we often see individual departments subjected to unethical leadership. A challenge is in whether, and how, the larger organization identifies and correct such a lapse. If the larger organization is anything less than strictly ethical—meaning that ethical shortcomings are handled immediately and seriously, even and especially at the cost of short-term profits—the odds of a department within the organization “swimming against the tide” is vanishingly small.
A bad culture will thus overwhelm a good one, and a good one requires considerable, consistent positive direction to maintain. This is the challenge of ethical leadership. Question 3: Under the Sarbanes-Oxley law, publicly traded companies must establish multiple committees adjunct to the board of directors, to ensure proper governance. Hint: Review the section on corporate governance in Chapter 9. Type: True or False Points Awarded: 0/1 Correct Answer(s): TRUE (correct) Rationale: Committees are formed to address specific governance issues. Larger companies especially will have committees such as an Executive Committee, an Audit Committee, a Governance Committee, and a Finance Committee. Given the discussions of the auditing and finance obligations especially, the role of these committees is key. FALSE Rationale: Committees are formed to address specific governance issues. Larger companies especially will have committees such as an Executive Committee, an Audit Committee, a Governance Committee, and a Finance Committee. Given the discussions of the auditing and finance obligations especially, the role of these committees is key. Question 4: Sustainability often refers to environmental concerns, yet has little applicability in free-market economics or corporate governance. Hint: Review the section on corporate governance in Chapter 9. Type: True or False Points Awarded: 1/1 Correct Answer(s):
TRUE Rationale: Without profits there can be no future business. An essential component of corporate governance is the sustainability of the business: in a word, profitability. FALSE (correct) Rationale: Without profits there can be no future business. An essential component of corporate governance is the sustainability of the business: in a word, profitability. Question 5: Fred is the supervisor for a crew of construction employees. Several employees converse with each other in their native language. Sam approaches Fred to voice concerns by the other employees about the foreign language being spoken. Fred should: Type: Multiple Choice Points Awarded: 1/1 Correct Answer(s): Ignore the non-English being spoken, as this is an issue of privacy Advise Sam that Sam should not raise this issue, as this could be a civil rights violation

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