Test Bank Answers Chapter 7 What Employees Owe Employers

Chapter 7: What Employees Owe Employers

= Correct answer

Multiple Choice/Fill in the Blank

1. When an employee has extensive authority or access to confidential information, a legal duty (under law or regulation) that rises to a highest level and is owed by that employee to the employer or clients is which of the following?

A. duty of confidentiality

B. fiduciary duty

C. legal duty

D. duty of loyalty

Difficulty: Moderate

Blooms: Analyze

AACSB: Analytical

1. According to PayScale’s Compensation Best Practices Report, which are the two leading motivators (in order by first and second leading motivator) that employees give for leaving their job?

A. first: personal reasons; second: higher pay

B. first: higher pay; second: personal reasons

C. first: a retirement plan; second: benefits

D. first: benefits; second: a retirement plan

Difficulty: Easy

Blooms: Remember

AACSB: Interpersonal

1. Which generation is most likely to change jobs four times within the first ten years of their career?

A. Gen Z

B. millennials

C. baby boomers

D. Gen X

Difficulty: Easy

Blooms: Remember

AACSB: Interpersonal

1. In the new “gig” economy, people who work for themselves are known as which of the following?

A. freelance workers

B. employees

C. subordinates

D. at-will employees

Difficulty: Easy

Blooms: Remember

AACSB: Understand

1. Employers are well within their rights to have policies indicating employees are expected to honor and maintain the secrecy of proprietary material. What is this known as?

A. common law of agency

B. duty of private information

C. duty of loyalty

D. duty of confidentiality

Difficulty: Moderate

Blooms: Evaluate

AACSB: Reflection

1. Nondisclosure agreements most often used for which of the following reasons?

A. to protect the company’s intellectual property

B. to protect against the theft of trade secrets

C. to protect HR information

D. to protect employees as well as employers

Difficulty: Difficult

Blooms: Evaluate

AACSB: Analytical

1. If an employee signs a contract agreeing that for a period of time (typically one or two years after the employee no longer works for the company), the employee will not engage in the same or similar activities within a particular distance from the company, the employee has signed a ________.

A. non-compete clause

B. nondisclosure clause

C. nonsolicitation clause

D. confidentiality clause

Difficulty: Moderate

Blooms: Understand

AACSB: Reflection

1. Which of the following is one of the most important ways to build company value, sell products and services, and expand corporate goodwill?

A. logos

B. branding

C. internal marketing

D. taglines

Difficulty: Moderate

Blooms: Understand

AACSB: Analytical

1. Which of the following best describes information that has economic value because it is not generally known to the public and is kept secret by reasonable means?

A. trade secrets

B. pay secrecy

C. duty of confidentiality

D. duty of loyalty

Difficulty: Moderate

Blooms: Evaluate

AACSB: Analytical

1. Which of the following clauses most directly protects a business from an employee who leaves for another job and then attempts to lure customers or former colleagues into following them?

A. non-compete clause

B. nonsolicitation clause

C. nondisclosure clause

D. nondisparagement clause

Difficulty: Moderate

Blooms: Analyze

AACSB: Analytical

1. Everyone has different “workplace” personalities, which often express which of the following?

A. what we think of others at our job

B. what we think of our employer

C. the way we think of competitors

D. the way we think and act on the job

Difficulty: Moderate

Blooms: Understand

AACSB: Interpersonal

1. Which is the process of getting employees to believe in the product, to commit to the idea that the company is selling something worth buying, and even to think about buying it?

A. loyalty

B. branding

C. internal marketing

D. business marketing

Difficulty: Easy

Blooms: Understand

AACSB: Analytical

1. Which of the following best explains the meaning of intellectual property?

A. the manifestation of original ideas protected by legal means

B. a contract clause ensuring that employees will not steal property from the company

C. a policy to prevent employees from discussing their salary with other workers

D. the process of getting employees to believe in the company’s product and even to buy it

Difficulty: Moderate

Blooms: Understand

AACSB: Reflection

1. Which of the following best describes illegal insider trading?

A. the buying or selling of stocks, bonds, or other investments on the basis of nonpublic information

B. a payment for an act that runs counter to the legal or ethical culture of the work environment

C. a policy that prohibits employees from disclosing or discussing salaries among themselves

D. a policy that prohibits employers discussing employees pay with other employees

Difficulty: Moderate

Blooms: Evaluate

AACSB: Analytical

1. Which U.S. law prohibits bribery in international business dealings?

A. Securities and Exchange Act

B. National Labor Relations Act

C. Pay Secrecy Act

D. Foreign Corrupt Practices Act

Difficulty: Easy

Blooms: Remember

AACSB: Reflection

1. In 1968, Securities and Exchange Commission v. Texas Gulf Sulphur Co. implicated the employees of a Texas mining company and was the first famous case example of ________.

A. insider trading

B. fiduciary duty

C. bribery

D. pay secrecy

Difficulty: Moderate

Blooms: Remember

AACSB: Real-world

1. If you decide to report an employer to a governmental entity for violating the law, you are a(n) ________.

A. disgruntled employee

B. traitor

C. whistleblower

D. at-will employee

Difficulty: Easy

Blooms: Remember

AACSB: Reflection

1. Which of the following requires that an employee refrain from acting in a manner contrary to the employer’s interest?

A. legal duty

B. duty of loyalty

C. fiduciary duty

D. duty of confidentiality

Difficulty: Moderate

Blooms: Understand

AACSB: Reflection

1. An employee who works in the graphic design department of a large advertising agency most likely cannot moonlight after business hours for a friend’s ________.

A. web design business

B. bakery business

C. landscaping business

D. construction business

Difficulty: Easy

Blooms: Apply

AACSB: Application

1. Which of the following is the section of the federal False Claims Act that allows private persons to file lawsuits for violations of the act on behalf of the government, as well as for themselves, and so receive part of any penalty imposed?

A. pay secrecy

B. nonsolicitation clause

C. qui tam provision

D. whistleblowing

Difficulty: Moderate

Blooms: Understand

AACSB: Analytical

1. Understanding the various personalities at work can be a complex task, but it is an important one for developing which of the following?

A. emotional intelligence

B. empowerment

C. employee engagement

D. commitment to the company

Difficulty: Moderate

Blooms: Understand

AACSB: Interpersonal

1. Which of the following groups would a company want to avoid gaining access to proprietary information, the details of patents and copyrights, employee records and salary histories, and customer-related data?

A. employees

B. competitors

C. at-will employees

D. managers

Difficulty: Easy

Blooms: Understand

AACSB: Reflection

1. Which of the following is especially important for developing and maintaining employee loyalty to the brand?

A. engagement

B. empowerment

C. dedication

D. commitment

Difficulty: Moderate

Blooms: Understand

AACSB: Interpersonal

1. The National Institute for Occupational Safety and Health reports that violence at work usually fits into one of four categories. Which of the following is not one of these categories?

A. violence stemming from a personal relationship

B. violence by a customer

C. traditional criminal intent

D. violence by a workplace superior

Difficulty: Moderate

Blooms: Understand

AACSB: Interpersonal

True/False

1. True or false? The common law (case law) of agency at the state level is often the source of the rules governing an employment relationship.

Difficulty: Moderate

Blooms: Understand

AACSB: Analytical

1. True or false? Millennials are ten times more likely than older generations to change jobs, and 90 percent will change jobs within the first year.

Difficulty: Moderate

Blooms: Remember

AACSB: Interpersonal

1. True or false? In most states, a company may still legally prohibit its employees from moonlighting during the term of their employment, particularly for a competitor or position in the same industry/business area.

Difficulty: Moderate

Blooms: Analyze

AACSB: Analytical

1. True or false? Companies do not have a right to insist that their employees, including managers, engage in ethical decision-making.

Difficulty: Easy

Blooms: Understand

AACSB: Ethics

1. True or false? The First Amendment protects employees at work who criticize their boss or their company.

Difficulty: Difficult

Blooms: Evaluate

AACSB: Application

1. True or false? U.S. firms and their employees are allowed to use bribery in other countries if allowed by local legal and cultural differences.

Difficulty: Difficult

Blooms: Analyze

AACSB: Application

1. True or false? Most companies do not want to be scrutinized for their salary decisions; therefore, they have enforced pay secrecy, which is a policy that prohibits employees from discussing salaries among themselves.

Difficulty: Moderate

Blooms: Understand

AACSB: Real-world

1. True or false? A good employee should care about the way he or she treats customers.

Difficulty: Easy

Blooms: Understand

AACSB: Interpersonal

1. True or false? Whistleblowers are protected, and sometimes rewarded, for their willingness to come forward, but they can still face a hostile environment in some situations.

Difficulty: Easy

Blooms: Understand

AACSB: Real-world

Short Answer

1. Explain the requirements of an employee’s duty of loyalty under common law rules.

Difficulty: Moderate

Blooms: Understand

AACSB: Application

1. Are millennials more or less loyal than previous generations? How is loyalty typically defined?

Difficulty: Moderate

Blooms: Evaluate

AACSB: Interpersonal

1. Can an employee ethically and legally accept a second job while working for their employer?

Difficulty: Difficult

Blooms: Evaluate

AACSB: Real-world

1. Explain an employee’s ethical and legal duty to keep information confidential.

Difficulty: Moderate

Blooms: Understand

AACSB: Apply

1. What is the cause and effect relationship between a company’s retirement plan and longevity of employment?

Difficulty: Difficult

Blooms: Evaluate

AACSB: Application

1. Evaluate the changing nature of non-compete agreements in the workplace in terms of their legality. Provide an example.

Difficulty: Difficult

Blooms: Apply

AACSB: Real-world

1. What are some things an employee can do to contribute to a positive workplace atmosphere?

Difficulty: Easy

Blooms: Understand

AACSB: Interpersonal

1. What is the role of a company code of conduct in delineating what is ethical and legal?

Difficulty: Moderate

Blooms: Apply

AACSB: Application

1. Is insider trading in securities an issue of ethics, law, or both?

Difficulty: Difficult

Blooms: Evaluate

AACSB: Application

1. Are whistleblowers protected under federal law?

Difficulty: Difficult

Blooms: Evaluate

AACSB: Application

1. Do employees generally have the right of free speech in the workplace?

Difficulty: Difficult

Blooms: Evaluate

AACSB: Analytical

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