Tag Archives: week 10 quiz

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ACC 206 Week 10 Quiz – Strayer

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Quiz 8 Chapter 18

 

 

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Week 10 Quiz 7: Chapter 15

 

 

ACC 350 Week 10 Quiz – Strayer

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Quiz 8 Chapter 9

 

 

ACC 401 Week 10 Quiz – Strayer

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Quiz 9 Chapter 14

 

 

ACC 410 Week 10 Quiz – Strayer

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Quiz 8 Chapter 14

 

 

ACC 557 Week 10 Assignment 2 – Strayer

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Assignment 2: You Are an Investment Analyst

 

 

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Chapter 14

 

 

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Quiz Chapter 13

 

 

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Chapter 14

 

 

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Week 10 Quiz 9: Chapter 13

 

 

ACC 562 Week 10 Assignment 3 – Strayer
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Assignment 3: Freescale Semiconductors, Inc.

 

 

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Chapter 17

 

 

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Week 10 Quiz 8: Chapters 15 and 16

 

 

ACC 564 Week 10 Assignment 4 – Strayer

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Assignment 4: Changing the AIS

 

 

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Assignment 4: Asset Misappropriation and Corporate Governance

 

 

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BUS 230 Week 10 Quiz – Strayer

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Chapter 14 and 15

 

 

BUS 309 Week 10 Quiz – Strayer

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Quiz 9 Chapter 10

 

 

BUS 310 Week 10 Discussion Questions – Strayer

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BUS 322 Week 10 Discussion Questions

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BUS 325 Week 10 Quiz – Strayer

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Quiz 9: Chapter 9

Quiz 10: Chapter 10

 

 

BUS 335 Week 10 Quiz – Strayer

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Quiz 9 Chapter 13

 

 

BUS 365 Week 10 Quiz – Strayer

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Quiz 9 Chapter 12

 

 

BUS 402 Week 10 Discussion Questions

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BUS 499 Week 10 Assignment 5 – Strayer NEW
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Assignment 5: Capstone

 

 

BUS 508 Week 10 Discussion Question

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Assignment 5: Now Is YOUR Time to Be the Creative Genius!

 

 

BUS 515 Week 10 Discussion Questions – Strayer NEW

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BUS 517 Week 10 Assignment 3 – Strayer
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Assignment 3: Project Presentation

 

 

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BUS 518 Week 10 Assignment 5 – Strayer
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Assignment 5: Organizational Change and Personal Leadership Development Plan

 

 

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BUS 519 Week 10 Discussion Questions – Strayer NEW

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Assignment 4: Written Business Plan and Presentation

 

 

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BUS 526 Week 10 Assignment 5 – Strayer New

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Assignment 5: Negotiation Presentation

 

 

BUS 599 Week 10 Assignment 4 – Strayer
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Assignment 4: Capstone Project

 

 

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Project Deliverable 6: Business Plan – Final

 

 

CIS 210 Week 10 Term Paper – Strayer NEW
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Term Paper: Website Migration Project

 

 

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Technical Project Paper: Information Systems Security

 

 

CIS 499 Week 10 Discussion Questions – Strayer NEW

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Term Paper: Information Technology Strategic Plan

 

 

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CIS 502 Week 10 Technical Paper – Strayer New
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Technical Paper: Risk Assessment

 

 

CIS 505 Week 10 Discussion Questions

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CIS 510 Week 10 Technical Paper – Strayer
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Technical Paper: Final Project Plan

 

 

CIS 512 Week 10 Term Paper – Strayer New

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Term Paper: Virtualization

 

 

CIS 513 Week 10 Term Paper – Strayer New

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Term Paper: Wireless Deployment Plan

 

 

CIS 515 Week 10 Technical Paper – Strayer

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Technical Paper: Database Administrator for Department Store

 

 

CIS 518 Week 10 Discussion Questions – Strayer NEW

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CIS 518 Week 10 Term Paper – Strayer
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Term Paper: Future Research and Development in Software Engineering

 

 

CIS 521 Week 10 Assignment 8 – Strayer New

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Assignment 8: SOA Road Map

 

 

CIS 524 Week 10 Discussion Questions – Strayer

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Term Paper: Crowdsourcing

 

 

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Term Paper: Using Agile Project Management on Mobile Application Development

 

 

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Term Paper Project: Designing a Secure Network

 

 

CIS 539 Week 10 Term Paper – Strayer New

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Term Paper: The ROI of a Cloud Deployment, Part 2

 

 

CIS 542 Week 10 Term Paper – Strayer New

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Term Paper: Web Application Security Challenges

 

 

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Term Paper: Redesigning Security Operations

 

 

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Term Paper: Managing a Telecom Project

 

 

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Term Paper: Reengineering the Course Enrollment Process

 

 

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Term Paper: The Human Element

 

 

ECO 302 Week 10 Quiz – Strayer

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Quiz Chapter 16

 

 

ECO 305 Week 10 Quiz – Strayer

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Quiz 9 Chapter 14 and 15

 

 

ECO 405 Week 10 Quiz – Strayer

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Quiz 9 Chapter 13

 

 

ECO 410 Week 10 Quiz – Strayer

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Quiz 9 Chapter 17 and 18

 

 

ECO 450 Week 10 Quiz – Strayer

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Quiz 8 Chapter 15 and 16

 

 

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FIN 320 Week 10 Quiz – Strayer

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Quiz 8 Chapter 19 and 20

 

 

FIN 350 Week 10 Quiz – Strayer

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Quiz 9 Chapter 20 and 21

 

 

FIN 534 Homework Set 5 – Strayer

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HRM 500 Week 10 Assignment 4: Recognizing Employee Contributions
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HRM 500 Week 10 Discussion Questions

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Assignment 5: Employee Compensation and Benefits

 

 

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Assignment 5: Sustainable Talent Management

 

 

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Assignment 3: Human Resources Planning and Employee Relations

 

 

LEG 320 Week 10 Quiz – Strayer

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Quiz 10 Chapter 18 and 19

 

 

LEG 500 Assignment 3: Legal and Ethical Considerations in Marketing, Product Safety, and Intellectual Property
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MKT 475 Week 10 Quiz – Strayer

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Quiz 9 Chapter 14

 

 

MKT 500 Week 10 Discussion Question

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Assignment 3: Entry Plan into International Market

 

 

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Assignment 5: A Household Name

 

 

PAD 500 Week 10 Assignment 4 – Strayer
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Assignment 4: The Management of Human Resources

 

 

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PAD 530 Week 10 Assignment 5 – Strayer
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Assignment 5: Preparing for the Agency’s Future, Part 5

 

 

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PAD 540 Week 10 Assignment 4 – Strayer

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Assignment 4: PowerPoint Presentation

 

 

Acc 206, acc 304, acc 350, acc 401, acc 410, acc 557, acc 560, acc 562, acc 563, acc 564, acc 571,acc 576, bus 230, bus 309, bus 310, bus 322, bus 325, bus 335, bus 365, bus 402, bus 430, bus 499, bus 508, bus 510, bus 515, bus 517, bus 518, bus 519, bus 521, bus 526, bus 599, cis 210, cis 341, cis 499, cis 500, cis 502, cis 505, cis 510, cis 512, cis 513, cis 515, cis 518, cis 521, cis 524, cis 525, cis 534, cis 539, cis 542, cis 552, cis 554, cis 555, cis 560, eco 302, eco 305, eco 405, eco 410, eco 450, eco 550, fin 320, fin 350, fin 534, hrm 500, hrm 530, hrm 532, hsa 530, leg 320, leg 500, mkt 475, mkt 500, mkt 505, mkt 506, pad 500, pad 530, pad 540,
Week 10 Assignments, Exam, Quiz, Discussion Questions, Homework Problems,

Acc 206, acc 304, acc 350, acc 401, acc 410, acc 557, acc 560, acc 562, acc 563, acc 564, acc 571,acc 576, bus 230, bus 309, bus 310, bus 322, bus 325, bus 335, bus 365, bus 402, bus 430, bus 499, bus 508, bus 510, bus 515, bus 517, bus 518, bus 519, bus 521, bus 526, bus 599, cis 210, cis 341, cis 499, cis 500, cis 502, cis 505, cis 510, cis 512, cis 513, cis 515, cis 518, cis 521, cis 524, cis 525, cis 534, cis 539, cis 542, cis 552, cis 554, cis 555, cis 560, eco 302, eco 305, eco 405, eco 410, eco 450, eco 550, fin 320, fin 350, fin 534, hrm 500, hrm 530, hrm 532, hsa 530, leg 320, leg 500, mkt 475, mkt 500, mkt 505, mkt 506, pad 500, pad 530, pad 540, Week 10 Assignments, Exam, Quiz, Discussion Questions, Homework Problems – Strayer University New

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ACC 206 Week 10 Quiz – Strayer

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Quiz 8 Chapter 18

 

 

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Week 10 Quiz 7: Chapter 15

 

 

ACC 350 Week 10 Quiz – Strayer

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Quiz 8 Chapter 9

 

 

ACC 401 Week 10 Quiz – Strayer

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Quiz 9 Chapter 14

 

 

ACC 410 Week 10 Quiz – Strayer

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Quiz 8 Chapter 14

 

 

ACC 557 Week 10 Assignment 2 – Strayer

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Week 10 Assignments, Exam, Quiz, Discussion Questions, Homework Problems,

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Chapter 12 IT Strategic Planning

Multiple Choice

1. Making IT investments on the basis of an immediate need or threat are sometimes necessary. What can managers expect from making investments in this way?
a) These are proactive approaches that will maximize ROI.
b) These just-in-time approaches to investments minimize long-term costs.
c) These are reactive approaches that can result in incompatible, redundant, or failed systems.
d) These quick responses provide the best defenses.

2. The alignment of IT with the business strategy is dynamic and a(n) __________.
a) ongoing process
b) annual event
c) challenge for operations managers
d) decreasing in importance

3. Cloud computing and software-as-a-service (SaaS) are forms of __________.
a) in-house development
b) offshoring
c) outsourcing
d) sourcing

4. Why did British-Swedish company AstraZeneca undergo a major restructure from a traditional model to a loosely-coupled business model?
a) Management forecasted a significant loss in its sales revenues.
b) Management wanted to implement the latest IT and social networks.
c) Competition in the pharmaceutical industry was decreasing.
d) All of the above

5. Optimally, the __________ guides investment decisions and decisions on how ISs will be developed, acquired, and/or implemented.
a) network infrastructure
b) SWOT
c) level of IT expertise
d) IT strategy

6. Typically, ITs that provide competitive advantages, or that contain proprietary or confidential data are developed and maintained by __________.
a) consulting companies
b) the in-house IT function
c) a single vendor
d) multiple vendors

7. According to a survey of business leaders by Diamond Management & Technology Consultants, 87 percent believe that IT is critical to their companies’ strategic success. In addition, the survey reported that __________.
a) most business leaders work with IT to achieve success
b) most IT staff are very involved in the process of developing business strategy
c) only about one-third of business executives responsible for strategy work closely with the IT department
d) IT projects are rarely abandoned

8. Which is not one of the reasons why an IT project is discontinued or abandoned?
a) The project was under-budget
b) The business strategy changed
c) Technology changed
d) The project sponsors did not work well together

9. An organization’s __________ define(s) why it exists.
a) strategy
b) objectives
c) targets
d) mission statement

10. __________ are the desired levels of performance.
a) Strategy
b) Objectives
c) Targets
d) Visions

11. An organization’s __________ are action-oriented statements (e.g., achieve a ROI of at least 10 percent in 2014) that define the continuous improvement activities that must be done to be successful.
a) strategies
b) objectives
c) targets
d) mission statements

12. IT governance is concerned with insuring that organizational investments in IT __________.
a) support operations
b) provide sustainable competitive advantage
c) deliver full value
d) are audited quarterly

13. It is the duty of the __________ to insure that information systems, technology, and other critical activities are effectively governed.
a) IT function
b) Board of Directors (BOD)
c) end users
d) HR function

14. IT governance covers each of the following areas except:
a) inventory management
b) resource management
c) risk management
d) strategy support

15. Characteristics of resources that can help firms create a competitive advantage are all of the following except:
a) appropriability
b) governance
c) rarity
d) value

16. Why is it insufficient to develop a long-term IT strategy and not reexamine the strategy on a regular basis?
a) Systems need to be maintained
b) To keep the CIO part of the executive team
c) Organizational goals change over time
d) To automate business processes

17. The __________ is a group of managers and staff representing various organizational units that is set up to establish IT priorities and to ensure that the IS department is meeting the needs of the enterprise.
a) corporate steering committee
b) board of directors
c) executive suite
d) audit team

18. Based on case studies, the types of work that are not readily offshored include the following:
a) Work that has been routinized
b) Business activities that rely on an common combination of specific application-domain knowledge
c) Situations that would expose the client company to too much data security or privacy risks
d) All of the above

19. For best results, an organization’s strategic IT plan is based on __________.
a) IT governance
b) cloud computing
c) the latest mobile technologies
d) the strategic business plan

20. All of the following are tools or methodologies that managers use for IT strategic planning except:
a) business service management
b) business systems planning model
c) balanced scorecard
d) dashboards

21. Business service management is an approach for linking __________ or metrics of IT to business goals to determine the impact on the business.
a) key performance indicators (KPIs)
b) critical success factors (CSFs)
c) scorecards
d) financials

22. What do managers use KPIs for?
a) To measure real-time performance
b) To predict future results
c) To measure results of past activity
d) All of the above

23. __________ are the most essential things that must go right, or be closely tracked, to ensure the organization’s survival and success.
a) Key performance indicators (KPIs)
b) Critical success factors (CSFs)
c) Scorecards
d) Financials

24. Which is not one of the characteristics of critical success factors (CSFs)?
a) Organizations in the same industry have the same CSFs.
b) The CSF approach was developed to help identify the information needs of managers.
c) The fundamental assumption is that in every organization there are three to six key factors that, if done well, will result in the organization’s success.
d) The failure of these factors will result in some degree of failure at the organization.

25. __________ is used in planning situations that involve much uncertainty, like that of IT in general and e-commerce in particular.
a) Key performance indicators (KPIs)
b) Scenario planning
c) Critical success factors (CSFs)
d) Balanced scorecard

26. Resource allocation is a contentious process in most organizations because opportunities and requests for spending far exceed the available funds. This can lead to __________ among organizational units, which makes it __________ to objectively identify the best investments.
a) highly political competition; difficult
b) highly political competition; easier
c) cooperation; simple
d) cooperation; difficult

27. The __________ of organizations are the things they do best and that represent their competitive strengths.
a) competitive advantages
b) customer-facing activities
c) core competencies
d) back office functions

28. IT is difficult to manage for organizations __________. .
a) of all types
b) in retail
c) in manufacturing
d) in finance

29. Outsourcing can be done __________.
a) domestically or offshore
b) via cloud computing or SaaS
c) via business processing
d) a and b

30. Cloud computing is for outsourcing of __________.
a) routine tasks
b) routine tasks and the delivery of real business services
c) proprietary systems
d) nonproprietary applications

31. __________ is the process of hiring another company to handle business activities for you.
a) Cloud computing
b) Business processing outsourcing (BPO)
c) SaaS
d) IT outsourcing

32. __________ includes many functions that are considered non-core to the primary business strategy, such as financial and administration processes, human resource functions, call center and customer service activities, and accounting.
a) Cloud computing
b) Business processing outsourcing (BPO)
c) SaaS
d) IT outsourcing

33. Outsourcing deals are typically __________.
a) multi-year contracts
b) short-term service level agreements
c) temporary arrangements
d) one-year projects

34. Lessons that eBay and Genpact learned from the BPO implementation include each of the following except:
a) Manage change by securing the commitment of senior leaders
b) Set realistic expectations and manage them actively
c) Focus on minimizing costs
d) Anticipate risks and formulate a plan for mitigating them

35. Which is not one of the lessons that eBay learned from its BPO implementation?
a) Challenges can be avoided by partnering with a global leader in business process and technology management.
b) Build a project-management infrastructure
c) Create a governance mechanism
d) Properly define how success will be measured

36. Since the late 1980s, many organizations have outsourced __________.
a) supply chain functions
b) the majority of their IT functions
c) only incidental parts of their IT function
d) marketing functions

37. The trend in outsourcing has been toward the __________.
a) single vendor
b) use of short term contracts
c) mega-deal
d) multi-vendor approach

38. The major reasons why organizations are increasingly outsourcing include each of the following except:
a) to focus on core competency
b) it’s a faster way to gain or enhance IT capabilities
c) to support supply chain transactions
d) cloud computing and SaaS have proven to be effective IT strategies

39. Which of the following statements about outsourcing is false?
a) Increasingly, organizations are leveraging existing global cloud infrastructures from companies such as Amazon and Google.
b) Established companies are less willing to outsource company-critical functions in an effort to reduce costs.
c) New start-up companies typically outsource and rely on SaaS to avoid upfront IT costs.
d) Outsourcing companies have started to offer interesting new business models and services around cloud computing.

40. Which is not one of the risks associated with outsourcing?
a) flexibility
b) shirking
c) poaching
d) opportunistic repricing

True/False

41. Making IT investments on the basis of an immediate need or threat is not a smart strategy because it can result in incompatible, redundant, or failed systems.

42. The two basic types of IT strategies are offshoring often with help from a consulting firm and/or vendor; and outsourcing to a third-party that resides either in the same country or is offshore.

43. For more productive service level agreements, companies may hire an outsource relationship management company to monitor and manage the outsourcing relationships.

44. To reduce costs, biopharmaceutical AstraZeneca shifted from a vertically integrated company to a loosely-coupled organizational model connected by outsourced arrangements and relationships.

45. AstraZeneca was able to quickly set up outsourcing relationships despite complex regulatory hurdles.

46. AstraZeneca had signed a seven-year global outsourcing agreement with IBM. Under the deal, IBM provides a single global technical infrastructure for AstraZeneca covering 60 countries.

47. IT strategic plans should be made within the context of the business strategy that it needs to support, which is how most IT planning is done.

48. According to a survey of business leaders by Diamond Management & Technology Consultants, 87 percent believe that IT is critical to their companies’ strategic success, but few business leaders work with IT to achieve that success.

49. Both IT and organizational strategies are static and can be harmed when people resist change because IS success depends on the skills and cooperation of people.

50. Business strategy sets the overall direction for the business; while the IT strategy defines what information, ISs, and architecture are needed to support the business and how infrastructure and services are to be delivered.

51. Ultimately, it is the CIO’s duty to insure that IT and other critical activities are effectively governed.

52. IT plays a pivotal role in improving corporate governance practices because most critical business processes are automated; and managers rely on information provided by these processes for their decision making.

53. A prerequisite for effective IT–business alignment for the CIO to understand the latest technologies and for the CEO and business planners to understand competitors.

54. The IT planning process results in a formal IT strategy or a re-assessment each year or each quarter of the existing portfolio of IT resources.

55. The long-range IT plan, sometimes referred to as the strategic IT plan, is based on the strategic outsourcing plan.

56. In reality, because of the rapid pace of change in IT and the environment, short-term IT tactical plans may include major items not anticipated in the longer term IT plans.

57. An advantage of business service management software tools is that they provide real-time dashboard views for tracking KPIs at the executive, functional, and operations levels.

58. IT is an enabler of core competencies or competitive strengths; and it is complex, expensive, and constantly changing.

59. Since the late 1980s, many organizations have outsourced the majority of their IT functions, rather than just incidental parts to cut costs or manage the complexity of IT.

60. Risks associated with outsourcing are minimal because of service level agreements.

Short Answer

61. Cloud computing and software as a service (SaaS) have expanded __________ options.

62. __________ is how an organization intends to accomplish its vision. It’s the overall game plan.

63. IT __________ is concerned with insuring that organizational investments in IT deliver full value.

64. IT governance, like security, is an __________ and cannot be achieved by a mandate or set of rules.

65.The CIO must understand and buy into the corporate _________ so that IS planning does not occur in isolation.

66. __________ refers to the degree to which another resource can be used instead of the original resource to achieve the same value,

67. Business service management is an approach for linking __________ of IT to business goals to determine the impact on the business.

68. __________ of software development has become a common practice due to global markets, lower costs, and increased access to skilled labor.

69. The risk of __________ occurs when a vendor deliberately underperforms while claiming full payment.

70. The risk of __________ occurs when a client enters into a long-term contract with a vendor, but the vendor changes financial terms at some point or over-charges for unanticipated enhancements.

Essay

71. What are the four main points of IT strategic plans?

72. What are three issues driving the need for IT governance?

73. List four types of individuals concerned about IT governance.

74. Identify and briefly describe three important skill sets of CIOs.

75. What are the major reasons why organizations are increasingly outsourcing?

BUS 335 Week 10 Quiz 9 Chapter 13 – Strayer

BUS 335 Staffing Organizations Week 10 Quiz – Strayer (All Possible Questions With Answers)

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Chapter 13
Student: ___________________________________________________________________________
1. In organizations with fewer than 100 employees, research suggests that staffing is most likely to be conducted by the owner, president, or work unit manager. 
True False

2. Centralization of the staffing function creates economies scale and consistency in staffing policies and processes across the organization. 
True False

3. A study of HR departments in large organizations found that the focus on recruitment and selection activities had decreased significantly over the past several years. 
True False

4. Those employed within the staffing function need to work with training and development staff regularly. 
True False

5. Entry into staffing jobs normally occurs at the generalist rank in both private and public organizations. 
True False

6. The fixed point or method of entry into staffing jobs is frequently the recruiting and interviewing function. 
True False

7. Jobs in staffing are increasingly becoming more customer focused and facilitative in nature. 
True False

8. Increasing numbers of staffing jobs are found in staffing firms. 
True False

9. Lack of staffing policies and procedures may lead to practices that may foster negative applicant reactions and problems with legal compliance. 
True False

10. The scope of staffing actions and practices is quite small and narrow. 
True False

11. Decreasing numbers of staffing jobs are found in staffing firms. 
True False

12. Perceived justice is related to concrete outcomes like employee desire to pursue a job, increased intentions to accept a job, and decreased intention to turnover. 
True False

13. Most organizations with a sufficient number of employees to warrant a dedicated HR department have integrated the function with human resources information systems (HRISs). 
True False

14. Although HRIS have increased data availability for human resources functions, they have done little to fundamentally affect the way staffing activities are evaluated. 
True False

15. SaaS vendors provide the hardware, software, and day-to-day management of HRIS. 
True False

16. A growing trend in HRIS is the centralization of these functions within the HR department to prevent managers from accessing the system. 
True False

17. Surveys suggest that staffing is one of the first areas that organizations will outsource. 
True False

18. HR representatives report that one of the key advantages of outsourcing is access to superior information from specialists. 
True False

19. A professional employer organization (PEO) is like a temporary help agency, but provides a wider range of HR services and has a longer-term relationship with clients. 
True False

20. Factors that are driving organizations to consider outsourcing HR activities include cost reduction, the cost of technology acquisition, need for improved service quality, and expertise of vendors. 
True False

21. As organization size increases, the likelihood that there will be a highly centralized HR department _________. 
A. increases
B. decreases
C. stays about the same
D. none of the above

22. Staffing members must coordinate their activities with __________. 
A. benefits staff
B. compensation staff
C. training and development staff
D. all of the above are true

23. Which of the following is true regarding jobs in staffing? 
A. Entry into staffing jobs normally occurs at the generalist rank.
B. There is usually a fixed point of entry into staffing jobs.
C. Jobs in staffing are becoming increasingly customer focused and facilitative in nature.
D. Few are housed in the HR department.

24. Which of the following statements regarding staffing policies and procedures is true? 
A. they seldom contribute to organizational efficiency
B. they help to ensure legal compliance
C. they often lead to negative applicant reactions
D. all of the above are true

25. Research suggests that organizational decision making is seen as most fair when it is based on _____. 
A. social influence
B. clearly communicated decision criteria
C. processes tailored to each unique individual
D. all of the above

26. Human resources information systems have been used for which of the following functions? 
A. EEO data analysis and reports
B. employee succession planning
C. databases of job titles and responsibilities
D. all of the above

27. An ASP or SaaS provider offers which of the following services? 
A. techniques to prevent managers from accessing HR data
B. hardware and software for running HR systems
C. paper-based forms and data for the organization
D. all of the above

28. The contracting out of work to a vendor or third party administrator is called ____________. 
A. outsourcing
B. temping
C. contracting
D. boundary spanning

29. Which of the following factors is most likely to be a reason not to outsource HR activities? 
A. vendors have little expertise
B. vendors are less flexible to meet changing needs
C. vendors have few resources to offer
D. vendors meet resistance within HR and line management

30. Which of the following functions are most likely to be outsourced? 
A. recruiting creative talent for an advertising agency
B. screening registered nurses for a long-term care facility
C. recruiting and selecting individuals for teams
D. providing employee orientation

31. For ______, it is better to keep staffing functions within the organization, rather than outsourcing. 
A. small organizations
B. organizations with continual hiring needs
C. firm-specific human capital
D. general human capital

32. The evaluation of staffing systems should focus on the operation of the staffing process, the results and costs of the process, and the satisfaction of the customers of the staffing system. 
True False

33. Standardized staffing systems are more likely to generate legal challenges by job applicants. 
True False

34. Standardization will probably decrease applicants’ perceptions of procedural fairness of a staffing system. 
True False

35. Once a staffing process has been mapped out, the next step is to check for deviations from the system. 
True False

36. Most of the processes involved in staffing are too subjective or difficult to quantify. 
True False

37. Experienced managers who have used staffing system metrics often find that new staffing systems may not represent a significant improvement. 
True False

38. It is typically not possible to use techniques like split-samples analysis or longitudinal analysis to evaluate the effectiveness of established processes. 
True False

39. In recent years, a number of organizations have worked to develop standardized benchmarks for judging the effectiveness of staffing processes across organizations. 
True False

40. Benchmark data on staffing policies are typically applicable across nearly every organization and should be used as a primary guide for selecting which practices to implement. 
True False

41. The formula for the staffing cost ratio is total staffing cost ratio = total staffing costs/total number recruited. 
True False

42. Two of the key customers of the staffing system are managers and job applicants. 
True False

43. There are few tools to facilitate the electronic processing of employee satisfaction surveys, so paper and pencil measures are usually preferable. 
True False

44. Which of the following statements is not an important step in staffing process evaluations? 
A. Mapping out the intended process.
B. Identifying deviations from the intended process.
C. The norm is for organizations to conduct validation studies.
D. Correction actions should be planned to eliminate deviations.

45. Which of the following best fits the description of a staffing flowchart? 
A. it shows the distance from staffing to strategic operational concerns
B. it depicts the actual flow of staffing activities from vacancy to hire
C. it provides evidence of how staffing measures increase performance directly
D. it is a physical model of staffing using flows to show movement

46. In a ________ analysis, the target employee population is split in half, and the new HR program is initiated with only one of these halves. 
A. longitudinal
B. split-sample
C. LISREL
D. factor

47. In a ________ analysis, data from a long period of time is collected both before and after a staffing policy or procedure is implemented. 
A. longitudinal
B. split-sample
C. LISREL
D. factor

48. Comparative staffing process data can be obtained from the _________. 
A. Society for Human Resource Management
B. HR Data Sources Corporation
C. Department of Labor
D. None of the above

49. The four common types of staffing metrics evaluate _____. 
A. performance, process, quantity, and quality
B. rectification, justification, elaboration, and relation
C. cost, timeliness, outcomes, and reactions
D. speed, diligence, dedication, and perseverance

50. Increasingly, organizations are emphasizing __________ as a key indicator of staffing effectiveness because vacancies can mean loss of revenue. 
A. yield ratios
B. employee satisfaction surveys
C. staffing-to-employee ratios
D. time to fill

51. Staffing metrics are increasingly used because _____. 
A. they demonstrate substantial returns in their own right
B. they are readily communicated across the organization
C. they are mandated by the Full Data Reporting in Employment Act
D. they are seen as a method to move staffing into the accounting function

52. Advertising expenses and cost per applicant are examples of __________ staffing metrics. 
A. cost
B. timeliness
C. outcomes
D. reactions

53. Number of positions filled and job performance are examples of __________ staffing metrics. 
A. cost
B. timeliness
C. outcomes
D. reactions

54. One of the key customers of the staffing system is _________. 
A. the CEO
B. job applicants
C. society
D. the industry in which the company operates

55. Records are not necessary for legal compliance. 
True False

56. Records may be used to audit staffing practices and conduct staffing research. 
True False

57. The Civil Rights Act and Affirmative Action Programs Regulations require that private employers with more than 100 employees (50 for federal contractors) are required to file an annual report with the EEOC. 
True False

58. It is highly desirable to periodically conduct audits or reviews of an organization’s degree of compliance with laws and regulations pertaining to staffing. 
True False

59. The EEOC requires that all employers submit hard copy, paper documents of all their EEO-1 reports. 
True False

60. Employers are usually more interested in mediation with the EEOC for discrimination disputes than are employees. 
True False

61. Organizations that wish to protect themselves from discrimination claims can require employees to sign an enforceable waiver that requires them to use the organization’s internal ADR rather than the courts. 
True False

62. An ideal arbitrator is a neutral individual and the arbitrator’s findings should be finalized as a written award letter. 
True False

63. Records should be created for which of the following purposes? 
A. legal compliance
B. use in staffing decisions
C. justification of staffing decisions
D. all of the above are correct

64. What proportion of disputes that begin the EEOC mediation process are eventually resolved through mediation? 
A. fewer than 10%
B. more than 10%, but fewer than half
C. more than half
D. the EEOC has no mediation procedure

65. What is the primary difference between mediation and arbitration? 
A. Arbitration is generally more time consuming than mediation
B. Arbitrators only consult with both sides, whereas mediators issue a binding decision
C. Mediation typically involves at least four parties
D. Mediators only consult with both sides, whereas arbitrators issue a binding decision

66. Which of the following must report to the EEOC annually? 
A. all employers
B. private employers with over 100 employees (50 for federal contractors)
C. private employers with over 1000 employees (500 for federal contractors)
D. only organizations with federal contracts

67. Recent court decisions suggest that _______ is essential for most organizations. 
A. affirmative action
B. employee termination insurance
C. training in employment discrimination
D. none of the above

68. In ______________ a neutral person investigates a complaint and develops findings that may be the basis for resolving an employee complaint. 
A. mediation
B. arbitration
C. fact finding
D. peer review

69. In ______________ a neutral person conducts formal hearing and issues a decision that is binding on the parties. 
A. mediation
B. arbitration
C. fact finding
D. peer review

BUS 325 Week 10 Quiz 10 Chapter 9 and 10 – Strayer

BUS 325 Global Human Resource Management Week 10 Quiz 9 and 10 chapter 9 and 10 – Strayer (All Possible Questions With Answers)

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CHAPTER 9: International Industrial Relations and The Global Institutional Context

TRUE/FALSE

1. In the international industrial relations field, no industrial relations system can be understood without an appreciation of its historical origin.

2. Industrial relations are a faithful expression of the society in which they operate, and of the power relationships between different interest groups.

3. The difference in union structures has no influence on collective bargaining process in Western countries.

4. Corporate headquarters will become involved or oversee labor agreements made by foreign subsidiaries.

5. European firms have tended to deal with industrial unions at the firm level rather than at industry level.

6. Subsidiaries formed by Greenfield tend to be given more autonomy over industrial relations than firms acquired by acquisition.

7. A large home market is a strong incentive to adapt to host-country institutions and norms.

8. The decline in union density in many countries can be explained by economic factors.

9. Multinationals subsidiaries experienced smaller and shorter strikes than local firms.

10. Multinational subsidiaries tend to have more frequency of strikes than indigenous firms.

11. Treating labor relations as incidental and relegating them to the specialists in the various countries are inappropriate.

12. Unlike the OECD, the Commission of the EU can translate guidelines into laws.

13. Labor unions interpreted the chapeau clause to mean “compliance with local law supersedes the OECD guidelines.”

14. The EU does not aim to establish minimum standards for social conditions that will safeguard the fundamental rights of workers.

15. The less one knows about how a structure came to develop in a distinctive way, the more likely one is to understand it.

16. With the expansion of the EU in 2004 to include 10 new members that are relatively low-income states, there has been an increased sensitivity to the problem of social dumping.

17. An “investment strike” is a concern of trade unions about multinationals refusing to invest additional funds in the plant.

18. The Social Accountability 8000 standards were drawn from the UN human rights conventions.

19. Poaching of skilled employees never happens in Asian-Pacific countries.

20. Western multinational enterprises that are planning offshore activities in China should not be concerned with guanxi.

MULTIPLE CHOICE

1. In Sweden and Germany the term “collective bargaining” means:
a. Negotiations between a local trade union and management
b. Negotiations between an employers’ organization and a trade union at the industry level
c. Bargaining process as a class struggle between labor and capital
d. Bargaining at an open market for products

2. Conglomerate unions are:
a. Members employed in more than one industry
b. Skilled occupational grouping across industries
c. Open to all employees
d. Representatives of all grades of employees in an industry

3. A lack of familiarity by multinational managers of local industrial and political conditions has:
a. Worsened a conflict with a local firm that could have been resolved
b. Conflicted with social norms
c. Encouraged the development of a union
d. Contributed to the failure of a MNE

4. McDonald’s company policy is to staff its restaurants with:
a. 90% nationals c. Bilingual managers
b. Only nationals d. Union employees

5. A multinational firm usually delegates the management of industrial relations to:
a. Their foreign subsidiaries c. An offshoring division
b. The headquarters industrial division d. The marketing division

6. Greater emphasis on formal management controls and close reporting systems tend to be present in:
a. European firms c. Asian firms
b. USA firms d. Australian firms

7. Poor subsidiary performance tends to:
a. Be accompanied by decreased corporate level involvement in local industrial relations
b. Be accompanied by increased corporate level involvement in industrial relations
c. Encourage the formation of labor unions
d. Be independent of corporate level involvement in local industrial relations

8. Which country has the highest level of union membership?
a. USA c. Germany
b. Sweden d. Italy

9. Multinationals operating in Western Europe, Japan and Australia have a more serious problem than wage level which is:
a. Restricted to overtime provisions c. The ability to vary employment levels
b. Long term labor contracts d. Unpredictable regulatory environment

10. Recent evidence has shown that one of the priorities when making investment location decisions is:
a. Presence of unions c. Equal opportunity government regulations
b. Capital resource availability d. The ability to dismiss employees

11. International trade secretariats (ITS):
a. Are the acts of staging an investment strikes by the multinational
b. Is a loose confederations to provide worldwide links for the national unions in a particular industry or trade
c. Is a lobbyist for restrictive national legislation in the USA and Europe
d. Are clearing houses for information on key labor provisions around the world

12. The Chapeau Clause:
a. States that multinationals should adhere to the guidelines within the framework of law, regulations and labor relations and employment practices in each country they operate
b. Identifies a number of workplaces related principles that should be respected by all nations
c. Is a set of guidelines that cover disclosures of information, competition, financing, taxation and industrial relations
d. Is a key labor directive imposed by the EU

13. The major objective of the implementation of the Single European Act was to:
a. Create a single coherent basis for action by EU members
b. Establish the Single European Market
c. To create a social policy in regard to labor laws and working conditions
d. Ensure labor uniformity across Europe

14. Elements of International Trade Secretariats to achieve its long term goal of transnational bargaining are all of the flowing EXCEPT:
a. Research and information
b. Call company conferences
c. Establishing company councils
d. Superior knowledge and expertise in industrial relations

15. Generally speaking, corporate headquarters:
a. Is seldom involved in labor agreements made by foreign subsidiaries because these agreements seldom effect international plans nor create precedents for negotiations in other countries
b. Is seldom involved in labor agreements made by foreign subsidiaries because headquarters staff feel they do not understand local regulatory and institutional contexts
c. Is often involved in labor agreements made by foreign subsidiaries because headquarters staff do not trust local labor specialist to bargain effectively
d. Will become involved in labor agreements made by foreign subsidiaries because these agreements may affect international plans and/or create precedents for negotiations in other countries

16. A major problem applying the strategy of lobbying for restrictive national legislation is:
a. The reality of conflicting national economic interest particularly in times of economic downturn
b. The reality of diffuse and uncoordinated legislative processes
c. The reality of diverse interests by the many and varied union representatives as they seek to approach legislators
d. The reality of the complexity of labor legislation and the inability of most individual legislators to understand the key issues involved

17. Public uproar over working conditions of offshoring companies resulted in a universal standard called:
a. ISO 9000 c. Childcare 2000
b. NGO watch d. Social Accountability 8000

18. A major problem in the offshoring countries of India and China is:
a. Skill shortages c. Educational quality
b. Resource shortages d. Research and development

19. Influencing wage levels to the extent that cost structures become uncompetitive is:
a. A byproduct of a successful subsidiary c. A disadvantage of trade unions
b. A result of government regulations d. A multinational problem

20. Labor unions response to multinationals are all of the following EXCEPT:
a. To agree to a major contractual request by MNEs
b. To form international trade secretariats
c. To lobby for restrictive national legislation
d. To achieve regulations of MNEs by international organizations

21. Union influences can increase unit manufacturing cost in Europe by as much as:
a. 5% c. 15%
b. 20% d. 50%

22. Strike-proneness can be measured by
a. Frequency, size, and duration c. Size, industry and duration
b. Duration, industry and size d. Frequency, industry and size

23. Union decline can be linked to all of the following EXCEPT:
a. New form of work organization c. Changes in work force structure
b. Globalization of production d. Lessening of governmental controls

24. A major management challenge for firms with global brands such as Nike has been:
a. The reaction of Western consumers to allegations of unfair unemployment practices used by subcontractors in countries
b. Checking that performance and rewards systems take into consideration codes of conduct
c. Physical risk such as danger of staff being taken hostage and of having property damaged
d. Having national “managers” in various countries with various structural forms for coordination and accountability

25. The term “offshoring” is frequently used as a subcategory of:
a. MNE training c. Drilling
b. Outsourcing d. Internationalizing

26. International call-centers are an example of:
a. NGO c. Offshoring activities
b. Social dumping d. Lobbying

27. Guanxi is:
a. A network connection based on dyadic, personal relationships between people
b. A term used to describe skill shortages in India and China
c. A flourishing business process outsourcing industry
d. The world’s largest International call center

28. Ex-host-country nationals ( EHCN) is
a. A person who was fired in a MNE and wants to return to their home country
b. A person who studied abroad and returns to their home country
c. A manager who is transferred from one country to another and then returns to the home country
d. An international traveler who is banned from their home country

29. Common reasons for offshoring failure is all EXCEPT:
a. Unsatisfactory quality of products or services
b. Problems of management control
c. Inadequate training
d. Rapid turnover of local staff
e. Language problems

30. Iron rice bowl refers to:
a. Additional iron supplement added in a bowl of cereal
b. Guaranteed continuation of employment
c. Exclusive offshore activities in China
d. Stringent compensation differentials

SHORT ANSWER

1. What are some factors which may require multinational headquarters to be involved in industrial relations?

2. What are the three ways that a trade union may limit the strategic choices of multinationals?

3. Trade unions share what seven concerns about dealing (negotiating) with a MNE?

4. What are some examples of social dumping?

5. How have unions responded to multinationals as the bargaining power of the multinationals has grown?

6. What does the term offshoring mean? What are some of the weaknesses in the business process outsourcing (BPO) industry?

7. What is guanxi?

8. What are some reasons that an offshoring activity can fail?

CHAPTER 10: IHRM Trends and Future Challenges

TRUE/FALSE

1. The existence of universal ethical principles can be seen in agreements that exist among nations in the United Nations Declaration of Human Rights.

2. Bribery involves the payment to agents to motivate them to complete task they would do in the normal course of their duties.

3. Bribery undermines equity, efficiency and integrity in the public service.

4. There has been an international movement to criminalize the practice of bribery.

5. The Foreign Corrupt Practice Act (FCPA) was enacted to prohibit German based firms and nationals from making bribery payment.

6. HR professionals provide training in understanding the difference between corrupt bribery payments, gifts and allowable facilitation payments.

7. In 1996 the United Nations adapted the Declaration Against Corruption and Bribery in International Commercial Transactions.

8. MNE should not consider integrity as a basis for selecting an international assignee.

9. Expatriate can cut “ethical corners” to deliver good financial results as they are in a foreign country.

10. By systematically analyzing people and processes, IHRM professionals may contribute to “stabilizing risk through recommendations that “harden” processes in the value chain.

11. The Berlin-based non-government lobby group, Transparency International (TI) publishes an n annual Corruption Perceptions Index.

12. The three least corrupt countries in the world are New Zealand, Denmark and Singapore.

13. Each member of the OECD must submit a peer review report listing all their government officials bribed throughout the year.

14. There is no right or wrong in business.

15. Complexity of evaluating the overall performance of foreign subsidiaries and their senior management team will remain a dominant issue in international business in the twenty-first century.

16. Wal-Mart is an example of an NGO.

17. Greenpeace, an environmental group, has become internationalized and tend to have National ‘managers’.

18. Traditionally many domestic and international human resource managers have never been responsible for legal compliance and training issues related to safety in the workplace.

19. Terrorism is perceived to be a significant threat by MNEs.

20. Cyber-terrorism is activities to secure internal communications, open records, and maintenance of back-up system.

21. The field of IHRM has been criticized as being slow to develop as a rigorous body of theory.

MULTIPLE CHOICE

1. The “general affairs” aspect of IHRM refers to:
a. The expectation that the human resource function will be the first line of defense in dealing with unpredictable and emergent issues from varied environments.
b. The mass conglomeration of all the different aspect of the IHRM.
c. The expectation that the human resource function will be the resource of last resort for unexpected issues and problems
d. The cross-cultural, coordinative aspect of IHRM

2. For the ethical absolutist:
a. There are no universal or international rights and wrongs
b. One should always do what one would do at home
c. There are fundamental principles of rights and wrongs
d. There are no rights and wrongs as far as business is concerned

3. “When in Rome, do as the Romans do” is an example of:
a. Ethical absolutism c. Ethical relativism
b. Ethical universalism d. Ethical religion

4. The need for international accords and corporate codes of conducts have :
a. Grown commensurately with the spread of international business
b. Decreased considerably with the spread of international business
c. Remained the same with the spread of international business
d. Decreased due to the countries becoming more socially attune

5. What are the two most frequent ethical problems encountered by international managers?
a. Child labor and prostitution c. Bribery and pornography
b. Bribery and corruption d. Corruption and slavery

6. The Foreign Corrupt Practice Act (FCPA) was passed in
a. 1965 c. 1980
b. 1977 d. 1959

7. As of 2009 how many countries have adapted the Declaration Against Corrupt and Bribery in International Commercial Transactions?
a. 30 c. 38
b. 15 d. 50

8. The countries perceived to be the least corrupt are:
a. USA, Chile and Belgium c. Guinea, Myanmar and Haiti
b. Denmark, New Zealand, Singapore d. Canada, Switzerland and Sweden

9. Instruments in developing and maintaining ethical cultures by expatriates can be reinforced by
a. Performance appraisal, compensation programs and trips home
b. Money, money and money
c. Exotic vacations and bonuses
d. Performance appraisals, shorter hours and trips home

10. To avoid the temptation to cut “ethical corners” expatriates should:
a. Be sent on vacations
b. Not be pressured to meet unreasonable goals
c. Be given ethical and cultural training
d. Should have a compensate salary to maintain an appropriate standard of living

11. Which country lobbied for many years to enact uniform domestic government regulations concerning bribery and corruption in the MNE environment?
a. Germany c. USA
b. Finland d. Switzerland

12. Who adopted the Declaration Against Corruption and Bribery in International Commercial Transactions?
a. The Geneva Convention c. The USA
b. The EU d. The United Nations

13. A typical short-term assignment in IHRM is a:
a. Training position c. Expatriate position
b. Marketing position d. Virtual position

14. IHRMs have largely ignored the non-government organizations because:
a. They don’t have the same physical risk
b. Their management ethos are values-driven, charitable and philanthropic ideals
c. Their management ethos are reflected by effectiveness and efficiency
d. They do not have national managers

15. The macro level of terrorist threats is an attack:
a. At the level of the individual person
b. At the specific region or industry
c. Of the global environment
d. At the cyber or information system environment

16. Activities to secure internal communications (emails, telephone) and employee privacy regulations would fall under which risk assessment category?
a. Cyber-terrorism c. Emergency preparedness
b. Industrial espionage, theft and sabotage d. Pandemics

17. Which of the following would be considered in the risk assessment category of in-facility security?
a. Protocol for evacuation c. The sabotage of software systems
b. Bomb threat procedures d. Providing portable 5 minute air packs

18. What does stabilizing risk through “harden” processes in the value chain mean?
a. To recruit people with capabilities and skills relevant to identified risk assessments
b. Replacing people with machines to ensure seniority protocols
c. Recruiting security specialist rather than functional experts
d. Eliminating at-risk steps in the value chain

19. What would be considered a NGO?
a. Red Cross c. Audi
b. Wal-Mart d. NATO

20. It is generally agreed internationally that the one thing that can most readily undermine equity, efficiency and integrity in the public service, undercut public confidence in markets, add cost to products and effects the safety and well-being of the general public is:
a. Bribery c. Sabotage
b. Facilitating payments d. Cyber-terrorism

21. The field of international human resource management has been regarded as :
a. A long standing cornerstone of business studies
b. Necessary in the MNE schools
c. A marginal academic area
d. Problematic

22. Multinational chief executives report terrorism:
a. Is not a significant threat to business growth, nor a threat to other organizations
b. Is a significant threat to business growth, but is not a threat to their organizations
c. Is not a significant threat to business growth , but is a threat to their organization
d. Is a significant threat to business growth and a significant threat to their organization

23. Research in the field of HRM:
a. Is relatively cheap and straightforward and simple
b. Is relatively expensive, yet straight forward and simple
c. Is relatively expensive and complicated
d. Is relatively cheap and uninteresting to most researchers

24. A working set of corporate risk assessment categories – a starting point for a MNE specific risk audit:
a. Do not yet exist
b. Consists of in value and out of value elements and counter espionage
c. Disaster protocols, workplace violence & industrial theft
d. Consists of in- facility emergency and disaster preparedness, in facility security, industrial espionage, cyber-terrorism and out-of-facility fire and travel risks

25. Emerging risk categories are all EXCEPT:
a. Avian flu c. Pandemics
b. Political terrorist groups d. Bribery

26. Bribery is:
a. Payments to agents to do things that are inconsistent with the purpose of their position to gain unfair advantage
b. Activities to secure internal communications in order to gain an unfair advantage
c. The act of hardening facilities in order to gain an unfair advantage
d. Unethical pressure to deliver good financial statements

27. What year was the International Journal of Human Resource Management established?
a. 1970 c. 1990
b. 1980 d. 2000

28. Low risk firms in low risk environments:
a. Do not need to invest as heavily in security systems and protocols
b. Should follow security strategies that focus on hardening individual sites
c. Should invest in elaborate risk management strategies
d. Should build redundant infrastructure

29. The three levels of terrorist threats are all EXCEPT:
a. Micro level c. Intra level
b. Primary level d. Macro level

30. Most executives:
a. Do not have a system to respond to critical incidents such as kidnapping of an executive
b. Are unwilling to discuss the protocols processes systems and structures in sensitive areas concerning critical incidents
c. Outsource their security concerns
d. Are unwilling to negotiate with terrorist

SHORT ANSWER

1. What are five categories of external risk assessment which needs to be addressed by a multinational enterprise?

2. What are the three levels of international human resource management analysis of potential risk from terrorist?

3. What are some non-government organizations and do they have the same international human resource management issues?

4. What are some developments in the international sector concerning bribery and corruption?

5. Security risk can be partitioned into two dimensions. What are the dimensions and describe low and high risk per each dimension?

BUS 325 Week 10 Quiz 9 Chapter 9 and 10– Strayer

BUS 325 Global Human Resource Management Week 10 Quiz 9 and 10 Chapter 9 and 10 – Strayer (All Possible Questions With Answers)

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CHAPTER 9: International Industrial Relations and The Global Institutional Context

TRUE/FALSE

1. In the international industrial relations field, no industrial relations system can be understood without an appreciation of its historical origin.

2. Industrial relations are a faithful expression of the society in which they operate, and of the power relationships between different interest groups.

3. The difference in union structures has no influence on collective bargaining process in Western countries.

4. Corporate headquarters will become involved or oversee labor agreements made by foreign subsidiaries.

5. European firms have tended to deal with industrial unions at the firm level rather than at industry level.

6. Subsidiaries formed by Greenfield tend to be given more autonomy over industrial relations than firms acquired by acquisition.

7. A large home market is a strong incentive to adapt to host-country institutions and norms.

8. The decline in union density in many countries can be explained by economic factors.

9. Multinationals subsidiaries experienced smaller and shorter strikes than local firms.

10. Multinational subsidiaries tend to have more frequency of strikes than indigenous firms.

11. Treating labor relations as incidental and relegating them to the specialists in the various countries are inappropriate.

12. Unlike the OECD, the Commission of the EU can translate guidelines into laws.

13. Labor unions interpreted the chapeau clause to mean “compliance with local law supersedes the OECD guidelines.”

14. The EU does not aim to establish minimum standards for social conditions that will safeguard the fundamental rights of workers.

15. The less one knows about how a structure came to develop in a distinctive way, the more likely one is to understand it.

16. With the expansion of the EU in 2004 to include 10 new members that are relatively low-income states, there has been an increased sensitivity to the problem of social dumping.

17. An “investment strike” is a concern of trade unions about multinationals refusing to invest additional funds in the plant.

18. The Social Accountability 8000 standards were drawn from the UN human rights conventions.

19. Poaching of skilled employees never happens in Asian-Pacific countries.

20. Western multinational enterprises that are planning offshore activities in China should not be concerned with guanxi.

MULTIPLE CHOICE

1. In Sweden and Germany the term “collective bargaining” means:
a. Negotiations between a local trade union and management
b. Negotiations between an employers’ organization and a trade union at the industry level
c. Bargaining process as a class struggle between labor and capital
d. Bargaining at an open market for products

2. Conglomerate unions are:
a. Members employed in more than one industry
b. Skilled occupational grouping across industries
c. Open to all employees
d. Representatives of all grades of employees in an industry

3. A lack of familiarity by multinational managers of local industrial and political conditions has:
a. Worsened a conflict with a local firm that could have been resolved
b. Conflicted with social norms
c. Encouraged the development of a union
d. Contributed to the failure of a MNE

4. McDonald’s company policy is to staff its restaurants with:
a. 90% nationals c. Bilingual managers
b. Only nationals d. Union employees

5. A multinational firm usually delegates the management of industrial relations to:
a. Their foreign subsidiaries c. An offshoring division
b. The headquarters industrial division d. The marketing division

6. Greater emphasis on formal management controls and close reporting systems tend to be present in:
a. European firms c. Asian firms
b. USA firms d. Australian firms

7. Poor subsidiary performance tends to:
a. Be accompanied by decreased corporate level involvement in local industrial relations
b. Be accompanied by increased corporate level involvement in industrial relations
c. Encourage the formation of labor unions
d. Be independent of corporate level involvement in local industrial relations

8. Which country has the highest level of union membership?
a. USA c. Germany
b. Sweden d. Italy

9. Multinationals operating in Western Europe, Japan and Australia have a more serious problem than wage level which is:
a. Restricted to overtime provisions c. The ability to vary employment levels
b. Long term labor contracts d. Unpredictable regulatory environment

10. Recent evidence has shown that one of the priorities when making investment location decisions is:
a. Presence of unions c. Equal opportunity government regulations
b. Capital resource availability d. The ability to dismiss employees

11. International trade secretariats (ITS):
a. Are the acts of staging an investment strikes by the multinational
b. Is a loose confederations to provide worldwide links for the national unions in a particular industry or trade
c. Is a lobbyist for restrictive national legislation in the USA and Europe
d. Are clearing houses for information on key labor provisions around the world

12. The Chapeau Clause:
a. States that multinationals should adhere to the guidelines within the framework of law, regulations and labor relations and employment practices in each country they operate
b. Identifies a number of workplaces related principles that should be respected by all nations
c. Is a set of guidelines that cover disclosures of information, competition, financing, taxation and industrial relations
d. Is a key labor directive imposed by the EU

13. The major objective of the implementation of the Single European Act was to:
a. Create a single coherent basis for action by EU members
b. Establish the Single European Market
c. To create a social policy in regard to labor laws and working conditions
d. Ensure labor uniformity across Europe

14. Elements of International Trade Secretariats to achieve its long term goal of transnational bargaining are all of the flowing EXCEPT:
a. Research and information
b. Call company conferences
c. Establishing company councils
d. Superior knowledge and expertise in industrial relations

15. Generally speaking, corporate headquarters:
a. Is seldom involved in labor agreements made by foreign subsidiaries because these agreements seldom effect international plans nor create precedents for negotiations in other countries
b. Is seldom involved in labor agreements made by foreign subsidiaries because headquarters staff feel they do not understand local regulatory and institutional contexts
c. Is often involved in labor agreements made by foreign subsidiaries because headquarters staff do not trust local labor specialist to bargain effectively
d. Will become involved in labor agreements made by foreign subsidiaries because these agreements may affect international plans and/or create precedents for negotiations in other countries

16. A major problem applying the strategy of lobbying for restrictive national legislation is:
a. The reality of conflicting national economic interest particularly in times of economic downturn
b. The reality of diffuse and uncoordinated legislative processes
c. The reality of diverse interests by the many and varied union representatives as they seek to approach legislators
d. The reality of the complexity of labor legislation and the inability of most individual legislators to understand the key issues involved

17. Public uproar over working conditions of offshoring companies resulted in a universal standard called:
a. ISO 9000 c. Childcare 2000
b. NGO watch d. Social Accountability 8000

18. A major problem in the offshoring countries of India and China is:
a. Skill shortages c. Educational quality
b. Resource shortages d. Research and development

19. Influencing wage levels to the extent that cost structures become uncompetitive is:
a. A byproduct of a successful subsidiary c. A disadvantage of trade unions
b. A result of government regulations d. A multinational problem

20. Labor unions response to multinationals are all of the following EXCEPT:
a. To agree to a major contractual request by MNEs
b. To form international trade secretariats
c. To lobby for restrictive national legislation
d. To achieve regulations of MNEs by international organizations

21. Union influences can increase unit manufacturing cost in Europe by as much as:
a. 5% c. 15%
b. 20% d. 50%

22. Strike-proneness can be measured by
a. Frequency, size, and duration c. Size, industry and duration
b. Duration, industry and size d. Frequency, industry and size

23. Union decline can be linked to all of the following EXCEPT:
a. New form of work organization c. Changes in work force structure
b. Globalization of production d. Lessening of governmental controls

24. A major management challenge for firms with global brands such as Nike has been:
a. The reaction of Western consumers to allegations of unfair unemployment practices used by subcontractors in countries
b. Checking that performance and rewards systems take into consideration codes of conduct
c. Physical risk such as danger of staff being taken hostage and of having property damaged
d. Having national “managers” in various countries with various structural forms for coordination and accountability

25. The term “offshoring” is frequently used as a subcategory of:
a. MNE training c. Drilling
b. Outsourcing d. Internationalizing

26. International call-centers are an example of:
a. NGO c. Offshoring activities
b. Social dumping d. Lobbying

27. Guanxi is:
a. A network connection based on dyadic, personal relationships between people
b. A term used to describe skill shortages in India and China
c. A flourishing business process outsourcing industry
d. The world’s largest International call center

28. Ex-host-country nationals ( EHCN) is
a. A person who was fired in a MNE and wants to return to their home country
b. A person who studied abroad and returns to their home country
c. A manager who is transferred from one country to another and then returns to the home country
d. An international traveler who is banned from their home country

29. Common reasons for offshoring failure is all EXCEPT:
a. Unsatisfactory quality of products or services
b. Problems of management control
c. Inadequate training
d. Rapid turnover of local staff
e. Language problems

30. Iron rice bowl refers to:
a. Additional iron supplement added in a bowl of cereal
b. Guaranteed continuation of employment
c. Exclusive offshore activities in China
d. Stringent compensation differentials

SHORT ANSWER

1. What are some factors which may require multinational headquarters to be involved in industrial relations?

2. What are the three ways that a trade union may limit the strategic choices of multinationals?

3. Trade unions share what seven concerns about dealing (negotiating) with a MNE?

4. What are some examples of social dumping?

5. How have unions responded to multinationals as the bargaining power of the multinationals has grown?

6. What does the term offshoring mean? What are some of the weaknesses in the business process outsourcing (BPO) industry?

7. What is guanxi?

8. What are some reasons that an offshoring activity can fail?

CHAPTER 10: IHRM Trends and Future Challenges

TRUE/FALSE

1. The existence of universal ethical principles can be seen in agreements that exist among nations in the United Nations Declaration of Human Rights.

2. Bribery involves the payment to agents to motivate them to complete task they would do in the normal course of their duties.

3. Bribery undermines equity, efficiency and integrity in the public service.

4. There has been an international movement to criminalize the practice of bribery.

5. The Foreign Corrupt Practice Act (FCPA) was enacted to prohibit German based firms and nationals from making bribery payment.

6. HR professionals provide training in understanding the difference between corrupt bribery payments, gifts and allowable facilitation payments.

7. In 1996 the United Nations adapted the Declaration Against Corruption and Bribery in International Commercial Transactions.

8. MNE should not consider integrity as a basis for selecting an international assignee.

9. Expatriate can cut “ethical corners” to deliver good financial results as they are in a foreign country.

10. By systematically analyzing people and processes, IHRM professionals may contribute to “stabilizing risk through recommendations that “harden” processes in the value chain.

11. The Berlin-based non-government lobby group, Transparency International (TI) publishes an n annual Corruption Perceptions Index.

12. The three least corrupt countries in the world are New Zealand, Denmark and Singapore.

13. Each member of the OECD must submit a peer review report listing all their government officials bribed throughout the year.

14. There is no right or wrong in business.

15. Complexity of evaluating the overall performance of foreign subsidiaries and their senior management team will remain a dominant issue in international business in the twenty-first century.

16. Wal-Mart is an example of an NGO.

17. Greenpeace, an environmental group, has become internationalized and tend to have National ‘managers’.

18. Traditionally many domestic and international human resource managers have never been responsible for legal compliance and training issues related to safety in the workplace.

19. Terrorism is perceived to be a significant threat by MNEs.

20. Cyber-terrorism is activities to secure internal communications, open records, and maintenance of back-up system.

21. The field of IHRM has been criticized as being slow to develop as a rigorous body of theory.

MULTIPLE CHOICE

1. The “general affairs” aspect of IHRM refers to:
a. The expectation that the human resource function will be the first line of defense in dealing with unpredictable and emergent issues from varied environments.
b. The mass conglomeration of all the different aspect of the IHRM.
c. The expectation that the human resource function will be the resource of last resort for unexpected issues and problems
d. The cross-cultural, coordinative aspect of IHRM

2. For the ethical absolutist:
a. There are no universal or international rights and wrongs
b. One should always do what one would do at home
c. There are fundamental principles of rights and wrongs
d. There are no rights and wrongs as far as business is concerned

3. “When in Rome, do as the Romans do” is an example of:
a. Ethical absolutism c. Ethical relativism
b. Ethical universalism d. Ethical religion

4. The need for international accords and corporate codes of conducts have :
a. Grown commensurately with the spread of international business
b. Decreased considerably with the spread of international business
c. Remained the same with the spread of international business
d. Decreased due to the countries becoming more socially attune

5. What are the two most frequent ethical problems encountered by international managers?
a. Child labor and prostitution c. Bribery and pornography
b. Bribery and corruption d. Corruption and slavery

6. The Foreign Corrupt Practice Act (FCPA) was passed in
a. 1965 c. 1980
b. 1977 d. 1959

7. As of 2009 how many countries have adapted the Declaration Against Corrupt and Bribery in International Commercial Transactions?
a. 30 c. 38
b. 15 d. 50

8. The countries perceived to be the least corrupt are:
a. USA, Chile and Belgium c. Guinea, Myanmar and Haiti
b. Denmark, New Zealand, Singapore d. Canada, Switzerland and Sweden

9. Instruments in developing and maintaining ethical cultures by expatriates can be reinforced by
a. Performance appraisal, compensation programs and trips home
b. Money, money and money
c. Exotic vacations and bonuses
d. Performance appraisals, shorter hours and trips home

10. To avoid the temptation to cut “ethical corners” expatriates should:
a. Be sent on vacations
b. Not be pressured to meet unreasonable goals
c. Be given ethical and cultural training
d. Should have a compensate salary to maintain an appropriate standard of living

11. Which country lobbied for many years to enact uniform domestic government regulations concerning bribery and corruption in the MNE environment?
a. Germany c. USA
b. Finland d. Switzerland

12. Who adopted the Declaration Against Corruption and Bribery in International Commercial Transactions?
a. The Geneva Convention c. The USA
b. The EU d. The United Nations

13. A typical short-term assignment in IHRM is a:
a. Training position c. Expatriate position
b. Marketing position d. Virtual position

14. IHRMs have largely ignored the non-government organizations because:
a. They don’t have the same physical risk
b. Their management ethos are values-driven, charitable and philanthropic ideals
c. Their management ethos are reflected by effectiveness and efficiency
d. They do not have national managers

15. The macro level of terrorist threats is an attack:
a. At the level of the individual person
b. At the specific region or industry
c. Of the global environment
d. At the cyber or information system environment

16. Activities to secure internal communications (emails, telephone) and employee privacy regulations would fall under which risk assessment category?
a. Cyber-terrorism c. Emergency preparedness
b. Industrial espionage, theft and sabotage d. Pandemics

17. Which of the following would be considered in the risk assessment category of in-facility security?
a. Protocol for evacuation c. The sabotage of software systems
b. Bomb threat procedures d. Providing portable 5 minute air packs

18. What does stabilizing risk through “harden” processes in the value chain mean?
a. To recruit people with capabilities and skills relevant to identified risk assessments
b. Replacing people with machines to ensure seniority protocols
c. Recruiting security specialist rather than functional experts
d. Eliminating at-risk steps in the value chain

19. What would be considered a NGO?
a. Red Cross c. Audi
b. Wal-Mart d. NATO

20. It is generally agreed internationally that the one thing that can most readily undermine equity, efficiency and integrity in the public service, undercut public confidence in markets, add cost to products and effects the safety and well-being of the general public is:
a. Bribery c. Sabotage
b. Facilitating payments d. Cyber-terrorism

21. The field of international human resource management has been regarded as :
a. A long standing cornerstone of business studies
b. Necessary in the MNE schools
c. A marginal academic area
d. Problematic

22. Multinational chief executives report terrorism:
a. Is not a significant threat to business growth, nor a threat to other organizations
b. Is a significant threat to business growth, but is not a threat to their organizations
c. Is not a significant threat to business growth , but is a threat to their organization
d. Is a significant threat to business growth and a significant threat to their organization

23. Research in the field of HRM:
a. Is relatively cheap and straightforward and simple
b. Is relatively expensive, yet straight forward and simple
c. Is relatively expensive and complicated
d. Is relatively cheap and uninteresting to most researchers

24. A working set of corporate risk assessment categories – a starting point for a MNE specific risk audit:
a. Do not yet exist
b. Consists of in value and out of value elements and counter espionage
c. Disaster protocols, workplace violence & industrial theft
d. Consists of in- facility emergency and disaster preparedness, in facility security, industrial espionage, cyber-terrorism and out-of-facility fire and travel risks

25. Emerging risk categories are all EXCEPT:
a. Avian flu c. Pandemics
b. Political terrorist groups d. Bribery

26. Bribery is:
a. Payments to agents to do things that are inconsistent with the purpose of their position to gain unfair advantage
b. Activities to secure internal communications in order to gain an unfair advantage
c. The act of hardening facilities in order to gain an unfair advantage
d. Unethical pressure to deliver good financial statements

27. What year was the International Journal of Human Resource Management established?
a. 1970 c. 1990
b. 1980 d. 2000

28. Low risk firms in low risk environments:
a. Do not need to invest as heavily in security systems and protocols
b. Should follow security strategies that focus on hardening individual sites
c. Should invest in elaborate risk management strategies
d. Should build redundant infrastructure

29. The three levels of terrorist threats are all EXCEPT:
a. Micro level c. Intra level
b. Primary level d. Macro level

30. Most executives:
a. Do not have a system to respond to critical incidents such as kidnapping of an executive
b. Are unwilling to discuss the protocols processes systems and structures in sensitive areas concerning critical incidents
c. Outsource their security concerns
d. Are unwilling to negotiate with terrorist

SHORT ANSWER

1. What are five categories of external risk assessment which needs to be addressed by a multinational enterprise?

2. What are the three levels of international human resource management analysis of potential risk from terrorist?

3. What are some non-government organizations and do they have the same international human resource management issues?

4. What are some developments in the international sector concerning bribery and corruption?

5. Security risk can be partitioned into two dimensions. What are the dimensions and describe low and high risk per each dimension?

BUS 309 Week 10 Quiz 9 Chapter 10 – Strayer

BUS 309 Business Ethics Week 10 Quiz – Strayer (All Possible Questions With Answers)

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Chapter 10—Moral Choices Facing Employees

MULTIPLE CHOICE

1. Based on guidelines of employer/employee relations, which statement is true?
a. company loyalty is an outmoded, illegitimate concept that employees today reject
b. the traditional law of agency obliges employees to act loyally and in good faith and to carry out lawful instructions
c. an employee’s work contract is irrelevant to his or her moral obligations
d. no value is more important than loyalty, whether to a person or an organization

2. Conflicts of interest
a. have become less frequent today.
b. always involve personal financial gain.
c. are morally worrisome only when the employee acts to the detriment of the company.
d. occur when employees’ private interests are substantial enough to potentially interfere with their job duties.

3. According to the Supreme Court,
a. there is nothing improper about an outsider’s using information, as long as the information is not obtained from an insider who breaches a legal duty to the corporation’s shareholders.
b. anyone buying/selling stock based on nonpublic information is guilty of inside trading.
c. insider trading violates the interstate commerce clause of the Constitution.
d. it should be left up to the company, not the government, to decide whether or not to prohibit insider trading.

36

4. A “trade secret”
a. is legally equivalent to a patent or copyright.
b. need not be treated confidentially by the company in order to be protected.
c. can become part of an employee’s technical knowledge, experience, and skill.
d. is a narrow, precise concept that the law defines in great detail.

5. The Foreign Corrupt Practices Act (FCPA)
a. doesn’t apply to countries where bribery is common.
b. is alleged by its critics to put American companies at a disadvantage.
c. carefully distinguishes bribery from extortion payments.
d. outlaws “grease payments”.

6. In determining the morality of giving and receiving gifts in a business situation, which of the following factors is MOST relevant?
a. the purpose of the gift
b. the size of the business
c. amount of the cash
d. whether the company is privately held or publicly held

7. A whistle-blower
a. doesn’t have to be a past or present member of the organization.
b. doesn’t have to report activity that is illegal, immoral, or harmful.
c. is any employer who spreads gossip.
d. far from being disloyal, may be acting in the best interest of the organization.

8. The Sarbanes-Oxley Act
a. makes it easier to fire whistle blowers.
b. reduces the law’s protection of employees who disclose securities fraud.
c. makes it illegal for executives to retaliate against employees who report possible violations of federal law.
d. provides penalties for blowing the whistle illegitimately or maliciously.

9. According to Professor Norman Bowie, which of the following factors is relevant to determining the morality of blowing the whistle?
a. the whistle blower’s motive
b. whether internal channels have been exhausted
c. whether the whistle blowing has some chance of success
d. all of the above

10. In discussing the case of the truck stop cashier who is asked to write up phony chits or receipts, the text argues that
a. there is nothing wrong with writing up the chits.
b. she should resign immediately.
c. she may be justified in “going along,” at least temporarily.
d. morality never requires us to sacrifice our own interests.

11. In the 1997 case of U.S. v. Hagan, the Supreme Court found that Hagan
a. had been discriminated against because of whistle blowing.
b. was innocent of insider trading.
c. violated the FCPA despite never having gone overseas.
d. had misappropriated confidential information.

12. The Donald Wohlgemuth case shows that
a. trade secrets can be patented.
b. trade secrets often become an integral part of an employee’s total job skills and capabilities.
c. employees need to divest themselves of any skill acquired while handling trade secrets.
d. “noncompete” or “nondisclosure” contracts are always legally valid.

13. Some writers deny that employees have any obligation of loyalty to the company, because
a. companies are not the kind of things that are properly objects of loyalty.
b. you cannot trust anyone.
c. it’s every man for himself.
d. companies just aren’t the same any more.

14. When an employee’s interests are likely to interfere with the employee’s ability to exercise proper judgment on behalf of the organization, what exists?
a. a golden opportunity c. a balance of power
b. a conflict of interest d. a disaster

15. Insider trading is
a. the buying or selling of stocks (or other financial securities) by business “insiders” on the basis of information that has not yet been made public and is likely to affect the price of the stock.
b. a corporate merger.
c. knowing when to make the best buy.
d. giving great advice on a deal.

16. Inside traders ordinarily defend their actions by claiming that they don’t injure
a. the boss. b. their family. c. the President. d. anyone.

17. Shaw and Barry mention three arguments for legally protecting trade secrets. Which of these is one of them?
a. Trade secrets are the intellectual property of the employee who developed them.
b. Employees who disclose trade secrets
violate the confidentiality owed to their employers
c. Trade secrets are patented.
d. Trade secrets are trademarked.

18. U.S. companies have a history of paying off foreign officials for business favors. Such acts were declared illegal by
a. the U.S. Customs department.
b. the Vice President.
c. the Foreign Corrupt Practices Act (FCPA) of 1977.
d. the United Nations.

19. To resolve difficult moral dilemmas, the better we understand the exact ramifications of the
alternatives—the more likely we are
a. to make a sound moral decision. c. to be a success.
b. to drive the boss crazy. d. to go to jail.

20. Whistle-blowing involves exposing activities that are
a. sports related. c. too close to call.
b. immoral or illegal. d. boring and need some excitement.

21. Whistle-blowers are only human beings, not saints, and they sometimes have their own
a. salary. c. bandwagon.
b. self-serving agenda. d. office.

22. Which act provides sweeping new legal protection for employees who report possible securities fraud, making it unlawful for companies to “discharge, demote, suspend, threaten, harass, or in any other manner discriminate against” them?
a. Sarbanes-Oxley Act of 2002 c. Economic Espionage Act
b. Foreign Corruption Act d. U.S. vs. O’Hagan

23. Conflicts of interest may exist when employees have financial investments
a. in suppliers, customers, or distributors with whom their organizations do business.
b. in sports teams.
c. and question the wisdom of the deal.
d. that lead to office romance.

24. The use of one’s official position for what always raises moral concerns and questions?
a. power trips c. stepping stones to success
b. egos d. personal gain

25. Experimental studies suggest that when informed that the advice they’re receiving may be biased because of a conflict of interest,
a. those who disclose a conflict of interest rarely end up giving more biased advice than those who do not disclose
b. those who disclose a conflict of interest always end up giving more biased advice than those who do not disclose
c. People tend to fail to discount the advice as much as they should.
d. people tend to discount the advice as much as they should.

TRUE/FALSE

1. An employee can have a conflict of interest even if he or she doesn’t act to the detriment of the organization.

2. Insider trading is the buying or selling of stocks by insiders on the basis of information attained by an “insider” that has not yet been made public and is likely to affect the price of the stock.

3. The law precisely defines the concept of a trade secret, just as it does patents and copyrights.

4. A kickback is a kind of bribe.

5. By definition, whistle-blowing can only be done by a past or present member of the organization.

6. Prudential reasons are reasons that refer to the interests of others and the demands of morality.

7. All gifts are bribes.

8. According to Norman Bowie, whistle blowing can never be justified because it involves violating one’s duties to the organization.

9. A bribe is remuneration for the performance of an act that’s inconsistent with the work contract or the nature of the work one has been hired to perform.

10. The Supreme Court has rejected the idea that inside trading involves “misappropriating” confidential information.

11. A conflict of interest arises when an employee has private interests that are substantial enough to potentially interfere with his or her job duties.

12. The Foreign Corrupt Practices Act (FCPA) outlaws grease payments.

13. A common argument against the Foreign Corrupt Practices Act is that it illegitimately imposes parochial American standards on foreign countries.

14. Employees have no obligations to people with whom they have no business relations.

15. As a general rule, if the contents of the work agreement that exists between the employee and the employer are legal and if the employee freely consents to them, then the employee is under an obligation to fulfill the terms of the agreement.

16. Sometimes companies require employees to sign contracts restricting their ability to get a job with, or start, a competing company. Because they can conflict with freedom of employment, not all such “noncompete” or “nondisclosure” contracts are legally valid.

17. Justice Ginsberg and Arthur Levitt suggest that allowing insider trading could lead to a widespread perception that “the game is rigged.”

18. The Foreign Corrupt Practices Act of 1977 forbids companies to pay kickbacks in the United States, but permits them to pay kickbacks to companies outside the United States.

19. Employees have certain general duties to their employers, and because of the specific business, professional, or organizational responsibilities they have assumed, they may have other more precise role-based obligations.

20. When faced with a moral decision, employees should follow the two-step procedure of identifying the relevant obligations, ideals, and effects; and then decide where the emphasis should lie among these considerations.

21. According to one expert’s definition, whistle blowing is conceptually restricted to reporting on activities that are harmful to third parties, violations of human rights, or contrary to the public purpose and legitimate goals of the organization.

22. According to Norman Bowie, a discussion of whistle blowing in the 1990s parallels the discussion of civil disobedience in the 1960s.

23. Prudential reasons are those moral reasons that are separate from self-interest.

24. According to Jennifer Moore the real reason insider trading should be prohibited is that it undermines the fiduciary relationship that is at the heart of business management.

25. The Sarbanes-Oxley Act weakened legal protections for whistle blowers.

SHORT ANSWER

1. When does a conflict of interest arise?

2. What is insider trading?

3. Name an argument that’s given against legalizing insider trading?

4. How do trade secrets differ from information that is patented or copyrighted?

5. What are the main features of the 1977 Foreign Corrupt Practices Act (FCPA)?

6. Name an argument given against foreign forms of bribery.

7. There are at least seven factors to take into consideration in determining the morality of giving and receiving gifts in a business situation. Explain three of them.

8. What is whistle-blowing, and what motivates whistle-blowers?

9. According to Norman Bowie, whistle-blowing is morally justified only if five criteria are met. What are these five criteria?

10. What is a key lesson to be learned from the example of the cashier at a truck stop who is asked by her manager to provide the truckers with phony chits so they can get a larger reimbursement from their companies?

ESSAY

1. How do we know when whistle-blowing is morally right or wrong? Justify your answer.

2. Consider Coleen Rowley who blew the whistle against the FBI. How could we justify the fact that she did the right thing? Consider at least two different moral theories.

3. When, if ever, are employees overly disloyal for getting a job for a competing organization? Justify your answer.

4. If all the other businesses in a foreign country are providing a “grease payment” for border patrol. Is it all right and ethical to do that? State and defend your answer.

5. Provide an example of an abuse of an official position. Justify your answer.

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CHAPTER 14

Global Supply Management

93. When there is a large number of common requirements across facilities or
business units, and the supply base is dispersed geographically, an appropriate global sourcing structure is:

a. a global commodity management organization.
b. regional purchasing offices that manage the region’s spend for every commodity.
c. a centralized international purchasing office equidistant from key suppliers.
d. a centrally managed global sourcing office located in the corporate headquarters.
e. a decentralized structure where purchasing managers are at each facility.

94. A foreign trade zone (FTZ) in the U. S.:

1. facilitates rapid calculation of import duties.
2. facilitates rapid calculation and payment of import duties.
3. creates and maintains jobs in the United States that might have gone offshore.
4. is completely different in purpose from a maquiladora in Mexico.
a. must use only goods made in the U. S. according to the Buy America Act.

95. When sourcing internationally:

a. the buyer should learn about the culture, customs, norms, taboos, and history of the supplier’s country.
b. the need for personal space is generally the same in most regions of the world.
c. the global availability and use of email, fax, and phone has largely eliminated communication barriers.
d. differing cultural and social norms will have little impact since most businesspeople are accustomed to working with North Americans.
1. the buyer should immediately establish an informal first-name basis with the supplier’s representatives.

96. The United Nations Convention for the International Sale of Goods (CISG):

1. is automatically applied if both nations have adopted the CISG, unless another body of law is agreed upon in the contract.
2. is automatically applied if both nations have adopted the CISG, and there can be no exceptions.
3. replaces the UCC as the worldwide body of law governing international trade.
4. should always be the preference for a buyer from the United States.
5. always puts the United States buyer at an advantage.

97. Which of the following would encourage countertrade?

1. excess foreign exchange.
2. readily available credit.
3. a strong base of suppliers.
4. the need to develop export markets for new products.
5. a well-developed domestic economy.

98. In international buying, the entity that makes a contract with the buyer and then buys the product in its name from the foreign supplier, takes title, delivers to the place agreed on with the buyer, and then bills the buyer for the agreed-on price, is a(n):

a. import broker.
b. sales agent.
c. import merchant.
d. trading company.
e. foreign import agent.

99. The Foreign Corrupt Practices Act (FCPA):

a. allows payment to facilitate the performance of normal duties.
b. attempts to persuade other nations to adopt U.S. rules regarding payments to officials.
c. allows U.S. firms to prosecute foreign nationals on bribery charges.
d. allows U.S. firms to make payments to facilitate normal duties and to make payments to obtain special advantages.
e. allows foreign nationals to offer payments to U.S. government officials to expedite trade agreements.

100. When comparing the total cost of ownership from an international supplier to that of a domestic supplier, the international supplier’s:

a. lower labor costs are easily eroded by additional shipping and insurance costs.
b. price will be higher if the U.S. dollar is strengthening on the exchange rate.
c. lower labor costs offset the high cost of inefficient equipment and processes.
d. lower labor rates must be considered in the context of productivity and quality.
e. prices are carefully controlled by the U.S. government to prevent dumping.

101. The most-cited reason for international trade is:

1. better quality.
2. better overall value.
3. more advanced technology.
4. lower total costs.
5. lower price.

102. When dealing with an international supplier, a knowledgeable buyer:

a. normally will attempt to negotiate a cost-plus-incentive-fee contract.
b. will attempt to price in Euro Dollars.
c. will normally price in the currency of the seller’s country.
d. will always state the price in U.S. dollars.
e. may decide to deal in international currency options.

True and False

1. The NAFTA, the EU, ASEAN and the WTO are all examples of Free Trade Agreements which were designed to facilitate trade between and among member countries.

2. The governing convention on shipping terms and responsibilities involved in international transportation is called ITAPS (International Transport and Payment Specifications.)

3. Even though the economy of Mexico relies heavily on the jobs generated by maquiladoras, the government of Mexico has not set wage rates equal to those of India and China.

4. Countertrade historically has been very uncommon in the sale by U.S. firms of armaments to other nations, but very common in civilian procurement projects.

5. When one condition of the countertrade agreement is that government and/or military-related exports be purchased, this is a swap trade arrangement.

6. The primary reasons for using a foreign trade zone (FTZ) are (1) to avoid, postpone, or reduce duties on imported goods, and (2) to create economic benefits for the local community through job creation.

7. A temporary importation bond (TIB) allows certain classes of merchandise, to be imported into the U. S. with the net effect that no duty is paid on the merchandise,
provided it is reexported.

8. Three approaches to global sourcing are to establish (1) global purchasing offices, (2) International Commodity Organizations (ICOs), or (3) Regional Purchasing Offices (RPOs).

9. It is rare for international trade disputes to be settled through international arbitration partly because the costs of arbitration exceed the costs of litigation.

10. The growth in international trade has come from an increase in the international sale of services as well as goods.

CHAPTER 15

Legal and Ethics

103. When it comes to product liability, supply management:

a. lowers risk by ensuring that suppliers deliver defect-free goods.
b. has little or no role since this is essentially a legal action.
c. has responsibility only to the internal customer, not the final customer.
d. is liable depending on the type of warranty agreed to in the contract.
e. is responsible for establishing the cost of the actual damage.

104. The authority that is necessary, usual, and proper to carry through to completion the express authority conferred, is called:

a. apparent authority.
b. implied authority.
c. express authority.
d. direct authority.
e. performance authority.

105. Which of the following is a factor in determining the validity of a contract?

a. incompetent parties.
b. offer and acceptance.
c. employment in the purchasing department.
d. amount over $500.
e. due process.

106. The Sarbanes-Oxley Act:

a. has no impact on the supply management process.
b. requires the Chief Purchasing Officer to sign off on every contract.
c. requires listing off-balance sheet items such as long-term purchase agreements.
d. requires supply management to report directly to the Chief Financial Officer.
e. affects internal accounting procedures of privately-held companies.

107. The legal authority of a salesperson normally is:

a. the same as that of a buyer.
b. to make legally-binding contracts for $500 or less.
c. to make legally binding contracts for sales over $5,000.
d. to solicit orders and get ratification and acceptance from his or her employer.
e. based on the length of time the salesperson has been employed.

108. When the goods fit the ordinary purpose for which goods of that description are used in the trade, there is a(n):

a. implied warranty of merchantability.
b. express warranty.
c. warranty of title.
d. implied warranty of fitness for a particular purpose.
e. implicit warranty.

109. Corporate social responsibility:

a. is another name for ethics.
b. is another name for supplier diversity programs.
c. requires sacrificing financial gain for the greater good of the community.
d. refers to individual, not corporate, decisions and actions.
e. extends beyond ethics to include community, environment, and human rights.

110. Commercial bribery:

a. usually involves only one company offering bribes.
b. may become an industry practice.
c. is outlawed in very few countries.
d. is outlawed throughout the West, but not in Asia.
e. legal rulings rest on the doctrine of promissory estoppel.

111. In a contractual dispute between buyer and seller, the process of elevating the discussion from buyer and sales representative up through the organization and out to an unbiased referee is called:

a. arbitration.
b. mediation.
c. internal escalation.
d. negotiation.
e. adjudication.

112. If a termination for convenience clause is included in a services contract:

a. its validity depends on whether the contract is in the private or public sector.
b. it is easy to determine if it is exercised in bad faith or an abuse of discretion.
c. if exercised in bad faith, it may mean the termination is a breach of contract.
d. specifically identifies events that will trigger termination.
e. it defines what constitutes sufficient cause to terminate.

True and False

1. In many organizations, standards of conduct for purchasing personnel stress the need to avoid all appearances of impropriety.

2. Normally, if an offer to buy or sell is made, the contract is completed once the legal documents are in the hands of both parties.

3. If a supplier fails to deliver goods which meet the contract agreement, one of the buyer’s options is to reject the whole shipment.

4. Reciprocity, the practice of requiring a supplier to purchase a set amount from the buying firm, is legal domestically, but not internationally.

5. The Uniform Commercial Code (UCC) covers the purchase of goods and services, if the goods portion of the contract is more than 50 percent of the contract value.

6. Mediation and arbitration are examples of alternative legal means of settling disputes.

7. When an employee who is not a legal agent of the company agrees to buy something from a salesperson and the item is received and the company pays the invoice, the employee is exercising implied authority.

8. Payment made to a supplier does not automatically constitute an acceptance of the goods.

9. In the U. S., product liability is generally considered a strict liability offense which means that the defendant is liable when it is shown that the product was defective.

10. Under the Uniform Commercial Code, when the buyer has examined the goods as fully as he or she has desired, there is a warranty with regard to defects which an examination ought to have revealed to him or her.

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Chapter 14

Auditing Governments and Not-for-Profit Organizations

TRUE/FALSE (CHAPTER 14)

1. In 1972, the GAO issued Government Auditing Standards known as the Blue Book.

2. Performance audits are intended to determine whether an entity’s financial statements are presented fairly in accordance to GAAP.

3. Agencies that provide funds to governments may stipulate that the audit be conducted in accordance with generally accepted government auditing standards (GAGAS).

4. GAO standards do not mandate a peer review process for audit organizations.

5. The Single Audit Act applies to organizations receiving more than $500,000 in federal assistance under more than one program be subject to a single audit.

6. A single audit has two main components: an audit of the financial statements and an audit of federal financial awards.

7. In a single audit, auditors are expected to provide an opinion on the financial statements and on the schedule of expenditures of federal awards.

8. Performance audits are most commonly conducted by external auditors.

9. The Sarbanes-Oxley Act has had no impact on governmental auditing.

10. Performance audits may be conducted by staff without training in accounting.

MULTIPLE CHOICE (CHAPTER 14)

1. In reporting the results of a performance audit, it is appropriate for the auditors to
a. conjecture as to the reasons for the program’s failure to achieve desired results
b. include the auditors’ response to management’s objections to the auditors’ findings
c. provide recommendations as to how the program can be improved
d. all of the above.

2. Government Auditing Standards must be adhered to in all financial audits except of
a. state and local governments
b. federal agencies
c. federally chartered banks
d. public corporations

3. In discerning the objectives of a program to be audited, the auditors should give the least credibility to
a. the legislation creating the program
b. the organization’s program budget
c. the organization’s mission statement and strategic plan
d. comments by the lower-level employees who actually depend on the program for their livelihoods.

4. ‘‘Generally accepted government auditing standards’’ (GAGAS) refers to standards incorporated in
a. the Yellow Book
b. the Yellow Book and OMB Circular A-133
c. the Yellow Book and the AICPA’s Professional Standards
d. the Yellow Book OMB Circular A-133, and the AICPA’s Professional Standards

5. Which of the following statements is incorrect about GAO standards pertaining to performance audits?
a. The GAO mandates that programs be audited annually by accounting trained professionals
b. Performance audits are normally carried out by internal audit departments
c. Performance audits focus on specific programs
d. The GAO does not specify when and how often a program, must be audited

6. Government Auditing Standards characterizes government engagements into which of the following three categories?
a. financial audits, compliance audits, and performance audits
b. financial audits, operational audits, and performance audits
c. financial audits, attest engagements, and performance audits
d. financial audits, efficiency and effectiveness audits, and compliance audits

7. The purpose of this is to avoid duplication of efforts in conducting governmental audits
a. AICPA’s Professional Standards
b. GAO’s Government Auditing Standards
c. Single Audit Act
d. OMB Circular A-133

8. The Yellow Book’s general standards are issued by the
a. GAO
b. FASB
c. AICPA
d. IRS

9. Which of the following is not reported upon in the Schedule of Findings and Questioned Costs?
a. reportable conditions related to internal control
b. material noncompliance with provisions of laws, regulations, contracts, or grant agreements
c. material examples of inefficiency and ineffectiveness in carrying out federally funded programs
d. federally reimbursed expenditures that are not adequately documented

10. Which of the following is not a General Auditing Standard for financial audits?
a. professional judgment
b. financial stability
c. independence
d. competence

11. Which of the following is a Yellow Book standard in respect to independence?
a. auditors may only audit one government agency during a fiscal year
b. auditors should not audit their own work
c. auditors may not advise in respect to computer installation
d. auditors may not audit public corporations

12. Federal funds must be used only for activities that are within the scope of the grant would be a(n)
a. optional activity
b. Yelllow Book mandate
c. allowable activity
d. prohibited activity

13. This law requires that the wages of laborers and mechanics employed by the contractors of federally funded projects be paid at prevailing local wage rates.
a. Davis-Bacon Act
b. Sarbanes-Oxley Act
c. Federal Wage and Hour Law
d. IRS Act

14. The process of specifically directing federal funds to a particular program is called:
a. allocation
b. earmarking
c. identification
d. subversion

15. Per the GAO standards, an auditor’s working papers must
a. be made public unless they contain information that would be harmful to national security
b. contain sufficient information to convince an auditor having no previous connection with the audit that the evidence supports the auditor’s conclusions and judgments
c. be retained by the auditor for a period of no less than 10 years
d. include documentation that the individual auditors on the engagement have satisfied the standards’ continuing professional education requirements

16. Auditors who perform government audits must complete 80 hours of continuing professional education every two years, of which ____ hours must be related directly to government auditing.
a. 24
b. 30
c. 16
d. 8

PROBLEMS (CHAPTER 14)

1. In a program review, auditors need to identify compliance requirements that are specific to the program itself and that are applicable to all federal award recipients. Identify and describe three general compliance requirements.

2. What reports result from single audits?

ESSAYS (CHAPTER 14)

1. How does Sarbanes-Oxley and IRS regulations affect governments and not-for-profits?

2. What are some questions that need to be addressed in assessing an ethical conflict?

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Chapter 14

Reporting for Segments and for Interim Financial Periods

1. A component of an enterprise that may earn revenues and incur expenses, and about which management evaluates separate financial information in deciding how to allocate resources and assess performance is a(n)
a. identifiable segment.
b. operating segment.
c. reportable segment.
d. industry segment.

2. An entity is permitted to aggregate operating segments if the segments are similar regarding the
a. nature of the production processes.
b. types or class of customers.
c. methods used to distribute products or provide services.
d. all of these.

3. Which of the following is not a segment asset of an operating segment?
a. Assets used jointly by more than one segment.
b. Assets directly associated with a segment.
c. Assets maintained for general corporate purposes.
d. Assets used exclusively by a segment.

4. SFAS No. 131 requires the disclosure of information on an enterprise’s operations in different industries for
1. each annual period presented.
2. each interim period presented.
3. the current period only.
a. 1
b. 2
c. 3
d. both 1 and 2

5. Which of the following is not required to be disclosed by SFAS No. 131?
a. Information concerning the enterprise’s products.
b. Information related to an enterprise’s foreign operations.
c. Information related to an enterprise’s major suppliers.
d. All of the above are required disclosures.

6. To determine whether a substantial portion of a firm’s operations are explained by its segment information, the combined revenue from sales to unaffiliated customers of all reportable segments must constitute at least
a. 10% of the combined revenue of all operating segments.
b. 75% of the combined revenue of all operating segments.
c. 10% of the combined revenue from sales to unaffiliated customers of all operating segments.
d. 75% of the combined revenue from sales to unaffiliated customers of all operating segments.

7. A segment is considered to be significant if its
1. reported profit is at least 10% of the combined profit of all operating segments.
2. reported profit (loss) is at least 10% of the combined reported profit of all operating segments not reporting a loss.
3. reported profit (loss) is at least 10% of the combined reported loss of all operating segments that reported a loss.
a. 1
b. 2
c. 3
d. both 2 and 3

8. Which of the following disclosures is not required to be presented for a firm’s reportable segments?
a. Information about segment assets
b. Information about the bases for measurement
c. Reconciliation of segment amounts and consolidated amounts for revenue, profit or loss, assets, and other significant items.
d. All of these must be presented.

9. Current authoritative pronouncements require the disclosure of segment information when certain criteria are met. Which of the following reflects the type of firm and type of financial statement for which this disclosure is required?
a. Annual financial statements for publicly held companies.
b. Annual financial statements for both publicly held and nonpublicly held companies.
c. Annual and interim financial statements for publicly held companies.
d. Annual and interim financial statements for both publicly held and nonpublicly held companies.

10. An enterprise determines that it must report segment data in annual reports for the year ended December 31, 2011. Which of the following would not be an acceptable way of reporting segment information?
a. Within the body of the financial statements, with appropriate explanatory disclosures in the footnotes
b. Entirely in the footnotes to the financial statements.
c. As a special report issued separately from the financial statements.
d. In a separate schedule that is included as an integral part of the financial statements.

11. Selected data for a segment of a business enterprise are to be separately reported in accordance with SFAS No. 131 when the revenues of the segment is 10% or more of the combined
a. net income of all segments reporting profits.
b. external and internal revenue of all reportable segments.
c. external revenue of all reportable segments.
d. revenues of all segments reporting profits.

12. Long Corporation’s revenues for the year ended December 31, 2011, were as follows
Consolidated revenue per income statement $800,000
Intersegment sales 105,000
Intersegment transfers 35,000
Combined revenues of all operating segments $940,000

Long has a reportable segment if that segment’s revenues exceed
a. $80,000.
b. $90,500.
c. $94,000.
d. $14,000.

13. Revenue test
(dollars in thousands)
Wholesale Retail Finance
Segment Segment Segment
Sales to unaffiliated customers $3,600 $1,500 $-0-
Sales – intersegment 400 240 -0-
Loan interest income – intersegment -0- 120 900
Loan interest income – unaffiliated -0- 240 80
Income from equity method investees -0- 280 -0-

Determine the amount of revenue for each of the three segments that would be used to identify the reportable industry segments in accordance with the revenues test specified by SFAS 131.

Wholesale Retail Finance
a. $3,600 $1,500 $ -0-
b. 4,000 1,740 -0-
c. 4,000 1,980 980
d. 4,000 2,380 980

14. Which of the following is not part of the information about foreign operations that is required to be disclosed?
a. Revenues from external customers
b. Operating profit or loss, net income, or some other common measure of profitability
c. Capital expenditures
d. Long-lived assets

15. Eaton, Inc., discloses supplemental industry segment information. The following data are available for 2011.
Traceable
Segment Sales operating expenses
A $420,000 $255,000
B 480,000 300,000
C 300,000 165,000
$1,200,000 $720,000

Additional 2011 expenses, not included above, are as follows:

Indirect operating expenses $240,000
General corporate expenses 180,000

Appropriate common expenses are allocated to segments based on the ratio of a segment’s sales to total sales. What should be the operating profit for Segment C for 2011?
a. $135,000
b. $ 75,000
c. $ 105,000
d. $ 30,000

16. Gant Company has four manufacturing divisions, each of which has been determined to be a reportable segment. Common operating costs are appropriately allocated on the basis of each division’s sales in relation to Gant’s aggregate sales. Gant’s Delta division accounted for 40% of Gant’s total sales in 2011. For the year ended December 31, 2011, Delta had sales of $5,000,000 and traceable costs of $3,600,000. In 2011, Gant incurred operating costs of $350,000 that were not directly traceable to any of the divisions. In addition, Gant incurred interest expense of $360,000 in 2011. In reporting supplementary segment information, how much should be shown as Delta’s operating profit for 2011?
a. $1,400,000
b. $1,256,000
c. $1,260,000
d. $1,116,000

17. For external reporting purposes, it is appropriate to use estimated gross profit rates to determine the ending inventory value for

Interim Annual
Reporting Reporting
a. No No
b. No Yes
c. Yes No
d. Yes Yes

18. Inventory losses from market declines that are expected to be temporary
a. should be recognized in the interim period in which the decline occurs.
b. should be recognized in the last (fourth) quarter of the year in which the decline occurs.
c. should not be recognized.
d. none of these.

19. Gains and losses that arise in an interim period should be
a. recognized in the interim period in which they arise.
b. recognized in the last quarter of the year in which they arise.
c. allocated equally among the remaining interim periods.
d. deferred and included only in the annual income statement.

20. If a cumulative effect type accounting change is made during the first interim period of a year
a. no cumulative effect of the change should be included in net income of the period of change.
b. the cumulative effect of the change on retained earnings at the beginning of the year should be included in net income of the first interim period.
c. the cumulative effect of the change should be allocated to the current and remaining interim periods of the year.
d. none of these.

21. Which of the following does not have to be disclosed in interim reports?
a. Seasonal costs or expenses.
b. Significant changes in estimates.
c. Disposal of a segment of a business.
d. All of these must be disclosed.

22. For interim financial reporting, the effective tax rate should reflect

Anticipated Extraordinary
Tax Credits Items
a. Yes Yes
b. Yes No
c. No Yes
d. No No

23. Companies using the LIFO method may encounter a liquidation of base period inventories at an interim date that is expected to be replaced by the end of the year. In these cases, cost of goods sold should be charged with the
a. cost of the most recent purchases.
b. average cost of the liquidated LIFO base.
c. expected replacement cost of the liquidated LIFO base.
d. none of these.

24. In considering interim financial reporting, how did the Accounting Principles Board conclude that each reporting should be viewed?
a. As a “special” type of reporting that need not follow generally accepted accounting principles.
b. As useful only if activity is evenly spread throughout the year so that estimates are unnecessary.
c. As reporting for a basic accounting period.
d. As reporting for an integral part of an annual period.

25. When a company issues interim financial statements, extraordinary items should be
a. allocated to the current and remaining interim periods of the current year on a pro rata basis.
b. deferred and included only in the annual income statement.
c. included in the determination of net income in the interim period in which they occur.
d. charged or credited directly to retained earnings so that comparisons of interim results of operations will not be distorted.

26. If annual major repairs made in the first quarter and paid for in the second quarter clearly benefit the entire year, when should they be expensed?
a. An allocated portion in each of the last three quarters
b. An allocated portion in each quarter of the year
c. In full in the first quarter
d. In full in the second quarter

27. During the second quarter of 2011, Dodge Company sold a piece of equipment at a gain of $90,000. What portion of the gain should Dodge report in its income statement for the second quarter of 2011?
a. $90,000
b. $45,000
c. $30,000
d. $ -0-

28. In January 2011, Abel Company paid $200,000 in property taxes on its plant for the calendar year 2011. Also in January 2011, Abel estimated that its year-end bonuses to executives for 2011 would be $800,000. What is the amount of expenses related to these two items that should be reflected in Abel’s quarterly income statement for the three months ended June 30, 2011 (second quarter)?
a. $ -0-
b. $250,000
c. $ 50,000
d. $200,000

29. For interim financial reporting, a company’s income tax provision for the second quarter of 2011 should be determined using the
a. statutory tax rate for 2011.
b. effective tax rate expected to be applicable for the full year of 2011 as estimated at the end of the first quarter of 2011.
c. effective tax rate expected to be applicable for the full year of 2011 as estimated at the end of the second quarter of 2011.
d. effective tax rate expected to be applicable for the second quarter of 2011.

30. Which of the following reporting practices is permissible for interim financial reporting?
a. Use of the gross profit method for interim inventory pricing.
b. Use of the direct costing method for determining manufacturing inventories.
c. Deferral of unplanned variances under a standard cost system until year-end.
d. Deferral of inventory market declines until year-end.

31. Which of the following statements most accurately describes interim period tax expense?
a. The best estimate of the annual tax rate times the ordinary income (loss) for the quarter.
b. The best estimate of the annual tax rate times income (loss) for the year to date less tax expense (benefit) recognized in previous interim periods.
c. Average tax rate for each quarter, including the current quarter, times the current income (loss).
d. The previous year’s actual effective tax rate times the current quarter’s income.

32. The computation of a company’s third quarter provision for income taxes should be based upon earnings
a. for the quarter at an expected annual effective income tax rate.
b. for the quarter at the statutory rate.
c. to date at an expected annual effective income tax rate less prior quarters’ provisions.
d. to date at the statutory rate less prior quarters’ provisions.

33. Finney, a calendar year company, has the following income before income tax provision and estimated effective annual income tax rates for the first three quarters of 2011:

Income Before Estimated Effective
Income Tax Annual Tax Rate
Quarter Provision at the End of Quarter
First $120,000 25%
Second 160,000 25%
Third 200,000 30%

Finney’s income tax provision in its interim income statement for the third quarter should be
a. $74,000.
b. $60,000.
c. $50,000.
d. $144,000.

34. An inventory loss from a market price decline occurred in the first quarter. The loss was not expected to be restored in the fiscal year. However, in the third quarter the inventory had a market price recovery that exceeded the market decline that occurred in the first quarter. For interim reporting, the dollar amount of net inventory should
a. decrease in the first quarter by the amount of the market price decline and increase in the third quarter by the amount of the market price recovery.
b. decrease in the first quarter by the amount of the market price decline and increase in the third quarter by the amount of the decrease in the first quarter.
c. not be affected in the first quarter and increase in the third quarter by the amount of the market price recovery that exceeded the amount of the market price decline.
d. not be affected in either the first quarter or the third quarter.

35. Advertising costs may be accrued or deferred to provide an appropriate expense in each period for
Interim Annual
Reporting Reporting
a. Yes No
b. Yes Yes
c. No No
d. No Yes

Problems

14-1 The following information is available for Torrey Company for 2011:

a. In early April Torrey made major repairs to its equipment at a cost of $90,000. These repairs will benefit the remainder of 2011 operations.

b. At the end of May, Torrey sold machinery with a book value of $35,000 for $45,000.

c. An inventory loss of $60,000 from market decline occurred in July. In the fourth quarter the inventory had a market value recovery that exceeded the market decline by $30,000.

Required:
Compute the amount of expense/loss that would appear in Torrey Company’s June 30, September 30, and December 31, 2011, quarterly financial statements.

14-2 Stein Corporation’s operations involve three industry segments, X, Y, and Z. During 2011, the operating profit (loss) of each segment was:
Operating
Segment Profit (Loss)
X $ 600
Y 8,100
Z (6,300)

Required:
Determine which of the segments are reportable segments.

14-3 Bass Industries operates in four different industries. Information concerning the operations of these industries for the year 2011 is:

Revenue
Industry Operating Segment
Segment Total Intersegment Profit (Loss) Assets
A $ 24,000 $4,200 $ 2,700 $ 22,400
B 18,000 2,200 (2,000) 25,200
C 90,000 14,000 3,600 70,000
D 168,000 -0- 23,700 162,400
$300,000 $28,000 $280,000

Required:
Complete the following schedule to determine which of the above segments must be treated as reportable segments.
10% Test For
Segment Revenue Op. Profit (Loss) Segment Assets Reportable?
A

B

C

D

14-4 Logan Company prepares quarterly financial statements. The following information is available concerning calendar year 2011:

Estimated full-year earnings $3,000,000
Full-year permanent differences:
Penalty for pollution 150,000
Estimated dividend income exclusion 60,000
Actual pretax earnings, 1/1/11 to 3/31/11 480,000
Nominal income tax rate 40%

Required:
Compute the income tax provision for the first quarter of 2011.

14-5 XYZ Corporation has eight industry segments with sales, operating profit and loss, and identifiable assets at and for the year ended December 31, 2011, as follows:

Sales to Unaffiliated Customers Sales to Affiliated Customers Profit or (Loss) Segment
Assets
Steel $1,350,000 $150,000 $265,000 $2,250,000
Auto Parts 1,200,000 — 450,000 1,430,000
Coal Mine 600,000 450,000 (300,000) 1,200,000
Textiles 530,000 220,000 150,000 750,000
Paint 1,120,000 380,000 300,000 1,050,000
Lumber 710,000 — (75,000) 600,000
Leisure Time 690,000 — 110,000 450,000
Electronics 600,000 — 300,000 670,000
Total $6,800,000 $1,200,000 $1,200,000 $8,400,000

Required:
A. Identify the segments, which are reportable segments under one or more of the 10 percent revenue, operating profit, or assets tests.
B. After reportable segments are determined under the 10 percent tests, they must be reevaluated under a 75 percent revenue test before a final determination of reportable segments can be made. Under this 75 percent test, identify if any other segments may have to be reported.

14-6 Ace Company, which uses the FIFO inventory method, had 508,000 units in inventory at the beginning of the year at a FIFO cost per unit of $20. No purchases were made during the year. Quarterly sales information and end-of-quarter replacement cost figures follow:

End-of- Quarter
Quarter Unit Sales Replacement Cost
1 200,000 $17
2 60,000 18
3 85,000 13
4 61,000 18
The market decline in the first quarter was expected to be nontemporary. Declines in other quarters were expected to be permanent.

Required:
Determine cost of goods sold for the four quarters and verify the amounts by computing cost of goods sold using the lower-of-cost-or-market method applied on an annual basis.

14-7 Barr Company’s actual earnings for the first two quarters of 2011 and its estimate during each quarter of its annual earnings are:

Actual first-quarter earnings $ 800,000
Actual second-quarter earnings 1,020,000
First-quarter estimate of annual earnings 2,700,000
Second-quarter estimate of annual earnings 2,830,000

Barr Company estimated its permanent differences between accounting income and taxable income for 2011 as:

Environmental violation penalties $ 45,000
Dividend income exclusion 320,000

These estimates did not change during the second quarter. The combined state and federal tax rate for Barr Company for 2011 is 40%.

Required:
Prepare journal entries to record Barr Company’s provisions for income taxes for each of the first two quarters of 2011.

Short Answer
1. In SFAS No. 131, the FASB requires all public companies to report a variety of information for reportable segments. Define a reportable segment and identify the information to be reported for each reportable segment.

2. Publicly owned companies are usually required to file some type of quarterly (interim) report as part of the agreement with the stock exchanges that list their stock. Indicate two problems with interim reporting and GAAP’s position on this reporting.

Short Answer Questions from the Textbook

1. For what types of companies would segmented financial reports have the most significance? Why?

2. Why do financial statement users (financial analysts, for example) need information about seg- ments of a firm?

3. Define the following: (a)Operating segment.(b)Reportable segment.

4. Describe the guidelines to be used in determining (a) what constitutes an operating segment, and (b) whether a specific operating segment is a significant segment.

5. List the three major types of enterprise wide information disclosures required by SFAS No. 131[ASC 280], and explain how the firm’s designation of reportable segments affects these disclosures.

6. What segmental disclosures are required, if any, for interim reports?

7. What type of disclosure is required of a firm when the major portion of its operations takes place within a single reportable segment?

8. List the types of information that must be presented for each reportable segment of a com-pany under the rules of SFAS No. 131 [ASC 280].

9. Describe the methods that might be used to disclose reportable segment information.

10. What types of information must be disclosed about foreign operations under SFAS No. 131[ASC 280–10–50–40]?

11. How are foreign operations defined under SFASNo. 131 [ASC 280]?

12. If the operations of a firm in some foreign countries are grouped into geographic areas, what factors should be considered in forming the groups?

13. When must a firm present segmental disclosures for major customers? What is the reason for this requirement?

14. How are common costs distinguished from general corporate expenses for segmental purposes?

15. What is the purpose of interim financial reporting?

16. Some accountants hold the view that each interim period should stand alone as a basic ac-counting period, whereas others view each interim period as essentially an integral part of the annual period. Distinguish between these views.

17.Describe the basic procedure for computing in-come tax provisions for interim financial state-ments.

18.Describe how changes in estimates should be treated in interim financial statements.

19.What are the minimum disclosure requirements established ASC 270 for interim financial reports?

20.What is the general rule regarding the treatment of costs and expenses associated directly with revenues for interim reporting purposes?

Business Ethics Question from Textbook
SMC Inc. operates restaurants based on various themes, such as Mex-delight, Chinese for the Buffet, and Steak-it and Eat-it. The Steak-it and Eat-it restaurants have not been performing well recently, but SMC prefers not to disclose these details for fear that competitors might use the information to the detriment of SMC. The restaurants are located in various geographical locations, and management currently measures profits and losses and asset allocation by restaurant concept. How-ever, when preparing the segmental disclosures under SFAS No. 131 [ASC 280], the company reports the segment information by geographical location only. The company recently hired you to review the financial statements.
1.What disclosures should the company report for segment purposes?
2.The company’s CEO believed that the rules in SFAS No. 131 [ASC 280] are vague and that the company could easily support its decision to dis-close the segment data by geographic regions. What would you recommend to the CEO and how would you approach the issues?