1) The basic framework for understanding the obligations between employer and employee are laid out in an implicit or explicit contract a. True b. False 2) Conflicts of interest arise when employees have special or private interests that are substantial enough to interfere with their jobs a. True b. False 3) Which of the following is an example of a conflict of interest? a. Jake gives all of the firm's advertising business to his sister's company b. Pete places a large bet on his favorite sports team c. Danica negotiates a deal for her employer with a company in which she owns a substantial share d. A teacher privately tutors one of her own students 4) Which of the following is an abuse of official position? a. Martha learns that a medical company's drug is going to surprisingly fail FDA approval and sells her stock before the news becomes public b. James is the accountant at a large accounting firm and secretly looks at the accounts of corporations he invests in. He sells his stocks in those companies whenever he sees that their accounts aren't looking great c. Vince works in the copy room and happens to notice that the documents he's copying suggest that a company in which he invests is going bankrupt. He sells his stock in that company before the news becomes public d. Don uses company funds to pay for private golf vacations 5) Trade secrets are protected under patent law a. True b. False 6) Proprietary data issues pose a conflict between the right of employers to keep certain information secret and the right of individuals to work where they choose a. True b. False 7) To bribe someone is to pay the person to violate his or her official duties. Which of the following is an example of bribery? a. Jordan decides which bids to accept for contract work, and is going to go with Sam's company because Sam's company has the lowest bid. Before Jordan officially accepts the bid, Sam offers Jordan money to accept Sam's bid. Jordan takes the money b. Nicole is a waitress and goes out of her way to make her customers have a good dining experience. Her customer leaves her a large tip c. Jessie is a bartender. She often gives her friends free drinks because they will tip her extremely well d. Nick's mom is nice to his teachers and often volunteers in class or gives them gifts so that they will treat Nick well. His teachers give him A's, but would have done so because he is a good student 8) A kickback is a type of bribe where a percentage payment goes to a person who is able to influence or control a source of income. a. True b. False 9) The Foreign Corrupt Practices Act (FCPA) prohibits companies from paying the employees of foreign governments who have primarily clerical or ministerial responsibilities to do their job a. True b. False 10) One problem with business gifts is that they can raise conflict-of-interest problems a. True b. False 11) Sometimes, moral dilemmas in the work context arise because of conflicting ethical concerns or responsibilities. a. True b. False 12) Whistle-blowing occurs when an employee informs the public about the illegal or immoral behavior of an employer or organization a. True b. False 13) Whistle-blowing conflicts most with: a. Company loyalty b. The public's interest in the truth c. General moral duties d. Public welfare 14) Prudential reasons concern: a. Financial interest b. Morality c. Societal welfare d. Self-interest 15) Prudential reasons never conflict with moral ones. a. True b. False