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In the long run, an organization that follows unethical practices is most likely to ________. | be bureaucratized | |
________ occurs when an employee informs an outside person or agency, such as a government agency, a newspaper, or television reporter, about an organization's (its managers') illegal or immoral behavior | Whistle-blowing | |
A(n) ________ problem is a problem in determining managerial accountability that arises when delegating authority to managers. | Agency | |
The workforce and managers are considered outside stakeholders. | False | |
All stakeholder groups are equally important for an organization. | False | |
Suppliers have a direct effect on the organization's efficiency and an indirect effect on its ability to attract customers. | True | |
Outside directors of a corporation are full-time employees of the corporation. | False | |
Customers are usually an organization's smallest outside stakeholder group. | False | |
Which of the following is one of the two conditions that lead to a moral hazard problem? | the agent has an incentive to pursue goals and objectives that are different from the principal's | |
Which of the following would be considered to be the lowest level of management in a chain of command? | functional managers | |
"Self-dealing" is defined as ________. | a manager acting in his own best interest, as opposed to the interests of the other stakeholders | |
In an organization, the position of the ________ is one of trusteeship. | members of the board of directors | |
Which of the following terms best describes the system of hierarchical reporting relationships in an organization? | chain of command | |
________ are people who have an interest or claim in an organization, in what it does, and in how well it performs | Stakeholders | |
Shareholders are a part of inside stakeholders. | True | |
An inside director of a company can be a professional director who holds positions on the boards of many companies. | False | |
Behavior that follows accepted ethical rules confers a(n) ________ effect on an individual or an organization. | reputation | |
Which of the following is an outside stakeholder group? | suppliers | |
The reputation effect ________. | reduces transaction costs | |
In effect, ________ are the agents or employees of shareholders. | managers |