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A strategic vision provides a clear future direction for the firm, a framework for its mission and goals, and enhanced employee communication, participation, and commitment.

A) True
B) False

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Emotional intelligence (EI) is generally a better predictor of life success than intelligence quotient (IQ).

A) True
B) False

Correct Answer

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Leaders play a key role in developing and sustaining organization


A) status quo.
B) culture.
C) reporting relationships.
D) rules and regulations.

E) B) and D)
F) A) and B)

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Ethics has everything to do with leadership. The character flaw of a lone actor always completely explains corporate misconduct.

A) True
B) False

Correct Answer

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Which of the following are used to evaluate whether a manager is acting in an ethical manner?


A) bonuses and penalties
B) job descriptions
C) assessment and penalties
D) reward and evaluation systems

E) B) and D)
F) A) and C)

Correct Answer

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Leadership is the process of transforming organizations from what they are to what the leader would have them become. This implies that there will be a lot of satisfaction with the status quo.

A) True
B) False

Correct Answer

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Barriers in which the design of organization structure, information processing, and reporting relationships, impede the proper flow and evaluation of information are known as


A) systemic barriers.
B) behavioral barriers.
C) political barriers.
D) barriers to entry.

E) None of the above
F) C) and D)

Correct Answer

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Effective learning organizations must redistribute _______, _________, and _________ in order to assure that there is a common body of knowledge.


A) rewards; training; handbooks
B) training; knowledge; pay raises
C) knowledge; financial rewards; intangible rewards
D) information; knowledge; rewards

E) A) and C)
F) All of the above

Correct Answer

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Competitive benchmarking is a method of seeking the best examples of practices or processes that have essentially the same function regardless of industry.

A) True
B) False

Correct Answer

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The source of referent power is


A) subordinate identification with the leader.
B) leader identification with the subordinates.
C) derived from the fact that the manager can potentially act as a reference when the employee applies for another job.
D) derived from manager ability to provide effective incentives to employees.

E) B) and C)
F) A) and D)

Correct Answer

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Which of the following statements would least likely be found in a corporate credo?


A) Maximize financial benefits for stakeholders at any cost.
B) Provide secure and stable employment for employees.
C) Establish an environment that enhances professional growth.
D) Support community organizations and projects.

E) A) and B)
F) C) and D)

Correct Answer

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The Sarbanes-Oxley Act of 2002 does not provide legal protection to employee whistleblowers of publicly traded companies.

A) True
B) False

Correct Answer

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All of the following are components of emotional intelligence (EI) except


A) self-awareness.
B) self-regulation.
C) self-promotion.
D) empathy.

E) A) and B)
F) A) and C)

Correct Answer

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Systemic barriers to change refer to elements of organization design, structure, and reporting relationships that impede the flow of information.

A) True
B) False

Correct Answer

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Self-regulated people are unable to create an environment of trust and fairness, where political behavior and infighting are sharply reduced and productivity tends to be high.

A) True
B) False

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Our emotions are driven by biological impulses which we cannot eliminate, but we can make efforts to manage them.

A) True
B) False

Correct Answer

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The expression the dark side of competition means that


A) illegal behaviors result in penalties.
B) unethical behaviors are more like to take place when competition is intense.
C) competition encourages ethical behavior.
D) good competition is costly.

E) None of the above
F) All of the above

Correct Answer

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There are many advantages of an ethical organization, but it generally has little to do with employee commitment and motivation to excel.

A) True
B) False

Correct Answer

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In the compliance-based approach to ethics management, leadership is driven by


A) management, with input from functional staff.
B) management, with input from shareholders.
C) the legal office.
D) the government.

E) All of the above
F) None of the above

Correct Answer

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Although many organizations encourage creativity and risk taking, few successful companies tolerate failure.

A) True
B) False

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