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Human Resource Management, 11e (Mondy)
Chapter 2: Business Ethics and Corporate Social Responsibility
Multiple-Choice Questions
1) A recent survey by SHRM found that approximately what percent of U.S. HR professionals are directly involved in CSR activities?
A) 66
B) 56
C) 46
D) 36
Answer: A
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2) A recent survey by SHRM found that approximately what percent of U.S. HR professionals were mainly responsible for creating CSR strategy?
A) 13
B) 23
C) 33
D) 43
Answer: A
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3) What is the discipline dealing with what is good and bad or right and wrong or with moral duty and obligation called?
A) morals
B) social responsibility
C) ethical norms
D) ethics
Answer: D
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4) Which of the following firms has been exposed far ethical and often illegal exploits?
A) Enron
B) Arthur Andersen
C) WorldCom
D) All of the above
Answer: D
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5) Which organization had the firm's stated values, respect, integrity, communication, and excellence once proudly etched on paperweights?
A) Tyco International
B) Enron
C) WorldCom
D) Arthur Anderson
Answer: B
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6) In a recent survey, what percent of investors said they would move their account if they discovered the company was involved in unethical behavior?
A) 47
B) 57
C) 67
D) 77
Answer: C
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7) The CEO of what company begins and ended each annual meeting of 220 officers and of its 600 senior managers by restating the company's fundamental integrity principles?
A) GE
B) IBM
C) Tyco International
D) Bank of America
Answer: A
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8) What do most of the 500 largest corporations in the United States now have?
A) social responsibility audit
B) green audit
C) code of ethics
D) social audit
Answer: C
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9) With regards to ethics, most of the 500 largest corporations in the U.S. now have a code of ethics. Which of the following is a topic included in the codes?
A) ethics offices
B) social accounting
C) social projects
D) all of the above
Answer: D
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10) What ethical breaches in business today has involved hundreds of executives and led to the resignations of some high profile executives?
A) stock-options-backdating
B) excessive severance pay
C) unethical salaries
D) stock price manipulation
Answer: A
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11) Compliance with the ______sets the minimum standard of ______behavior.
A) policy, legal
B) rule, ethical
C) procedure, social
D) law, ethical
Answer: D
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12) Who said, "There is a difference between what's legal and what's ethical?"
A) Kenneth D. Lewis
B) Bill Clinton
C) Norman Schwarzkopf
D) Teddy Rosevelt
Answer: A
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13) What is deciding whether an action is good or bad and what to do about it if it is "bad?"
A) morals
B) ethics
C) ethical norms
D) social responsibility
Answer: B
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14) What is a philosophical discipline that describes and directs moral conduct?
A) ethics
B) morals
C) ethical norms
D) social responsibility
Answer: A
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15) According to your text, who said "It is a true saying that one falsehood leads easily to another?"
A) Plato
B) Horatio
C) Cicero
D) Socrates
Answer: C
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16) A model of ______ consists mainly of two relationships.
A) social responsibility
B) morals
C) ethical norms
D) ethics
Answer: D
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17) What is the first element in the ethical model presented in your text?
A) moral background
B) sources of ethical guidance
C) social awareness
D) education
Answer: B
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18) Which of the following might be a source of ethical guidance?
A) holy books
B) conscience
C) societal mores
D) all of the above
Answer: D
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19) For most professionals, what would be a primary source of ethical guidance?
A) legal environment
B) corporate code of ethics
C) company rules
D) company policies
Answer: B
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20) The strength of the relationship between what an individual or an organization believes to be moral and correct and what available sources of guidance suggest is morally correct is referred to as what type ethics?
A) Type I
B) Type II
C) Type III
D) Type IV
Answer: A
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21) What type ethics is involved when a manager believes it is acceptable to not hire minorities, despite the fact that almost everyone condemns this practice?
A) Type I
B) Type II
C) Type III
D) Type IV
Answer: A
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22) What type ethics is involved when a manager believes it is acceptable to bribe government officials, despite the fact that most condemns this practice?
A) Type I
B) Type II
C) Type III
D) Type IV
Answer: A
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23) The strength of the relationship between what one believes and how one behaves is referred to as what type ethics?
A) Type I
B) Type II
C) Type III
D) Type IV
Answer: B
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24) What type ethics is involved when a HR manager knows that it is wrong to discriminate, but does so anyway?
A) Type I
B) Type II
C) Type III
D) Type IV
Answer: B
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25) What type ethics is involved if a board of directors considers it wrong to pay excessive salaries to the CEO, yet pays executive salaries that are outrageous?
A) Type I
B) Type II
C) Type III
D) Type IV
Answer: B
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26) What type ethics is involved if a manager knows that it is wrong to pay bribes, yet decides to pay bribes anyway?
A) Type I
B) Type II
C) Type III
D) Type IV
Answer: B
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27) Who said, "Men can never escape being governed. If from lawlessness or fickleness, from folly or self-indulgence, they refuse to govern themselves, then in the end they will be governed [by others]."
A) Bill Clinton
B) Franklin Roosevelt
C) Teddy Roosevelt
D) John F. Kennedy
Answer: C
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28) What Act prohibits the release of source selection and contractor bid or proposal information?
A) Federal Sentencing Guidelines for Organizations
B) Procurement Integrity Act
C) Corporate and Auditing Accountability, Responsibility and Transparency Act
D) Federal Contract Protection Act
Answer: B
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29) Which law barred a former employee who served in certain positions on a procurement action or contract in excess of $10 million from receiving compensation as an employee or consultant from that contractor for one year?
A) Federal Sentencing Guidelines for Organizations
B) Procurement Integrity Act
C) Corporate and Auditing Accountability, Responsibility and Transparency Act
D) Federal Contract Protection Act
Answer: B
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30) What Act was passed after reports of military contracts for $500 toilet seats?
A) Federal Sentencing Guidelines for Organizations
B) Corporate and Auditing Accountability, Responsibility and Transparency Act
C) Federal Contract Protection Act
D) Procurement Integrity Act
Answer: D
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31) What federal law promised softer punishments for wayward corporations that already had ethics programs in place?
A) Federal Sentencing Guidelines for Organizations
B) Procurement Integrity Act
C) Corporate and Auditing Accountability, Responsibility and Transparency Act
D) Federal Contract Protection Act
Answer: A
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32) What federal law outlined an effective ethics training program and explained the seven minimum requirements for an effective program to prevent and detect violations?
A) Federal Sentencing Guidelines for Organizations
B) Procurement Integrity Act
C) Corporate and Auditing Accountability, Responsibility and Transparency Act
D) Federal Contract Protection Act
Answer: A
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33) Which Act criminalizes many corporate acts that were previously relegated to various regulatory structures?
A) Federal Sentencing Guidelines for Organizations
B) Procurement Integrity Act
C) Corporate and Auditing Accountability, Responsibility and Transparency Act
D) Federal Contract Protection Act
Answer: C
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34) Which Act was passed to redress accounting and financial reporting abuses in light of corporate scandals?
A) Federal Sentencing Guidelines for Organizations
B) Procurement Integrity Act
C) Corporate and Auditing Accountability, Responsibility and Transparency Act
D) Federal Contract Protection Act
Answer: C
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35) Which Act contains broad employee whistle-blower protections that subject corporations and their managerial personnel to significant civil and criminal penalties for retaliating, harassing or discriminating against employees who report suspected corporate wrongdoing?
A) Corporate and Auditing Accountability, Responsibility and Transparency Act
B) Procurement Integrity Act
C) Federal Sentencing Guidelines for Organizations
D) Federal Contract Protection Act
Answer: A
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36) Which Act states that management may not "discharge, demote, suspend, threaten, harass or in any other manner discriminate" against an employee protected by the Act?
A) Federal Contract Protection Act
B) Procurement Integrity Act
C) Federal Sentencing Guidelines for Organizations
D) Corporate and Auditing Accountability, Responsibility and Transparency Act
Answer: D
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37) Which Act protects any employee who lawfully provides information to governmental authorities concerning conduct he or she reasonably believes constitutes mail, wire or securities fraud, violations of any rule or regulation issued by the Securities & Exchange Commission, or violations of any other federal law relating to fraud against shareholders?
A) Federal Contract Protection Act
B) Procurement Integrity Act
C) Corporate and Auditing Accountability, Responsibility and Transparency Act
D) Federal Sentencing Guidelines for Organizations
Answer: C
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38) Which Supreme Court case involved wrongful termination under Sarbanes-Oxley's whistleblower-protection rule when it was ruled that the company violated the Act by firing two employees and ordered them reinstated?
A) Dothard v Rawlingson
B) Bechtel v CompetitiveTechnologies Inc.
C) O'Connor v Consolidated Coin Caterers Corp.
D) Grutter v Bollinger
Answer: B
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39) According to the Sarbanes-Oxley Act, SEC reporting banks and bank holding companies are not required to have a code of ethics, but if an SEC reporting company does not have one, what must they do?
A) it must explain why
B) submit a report to the Sarbanes-Oxley Ethics Committee
C) pay the appropriate fine established by the Ethics Committee
D) it must establish an ethics code
Answer: A
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40) Former Securities and Exchange Commission Chairman Arthur Levitt said, "While the Act has brought about significant change, the greatest change is being brought about not by regulation or legislation, but by humiliation and embarrassment and private rights of action." What act was he referring to?
A) Federal Contract Protection Act
B) Procurement Integrity Act
C) Corporate and Auditing Accountability, Responsibility and Transparency Act
D) Federal Sentencing Guidelines for Organizations
Answer: C
Page Ref: 34
41) What is a statement of the values adopted by the company, its employees and its directors and sets the official tone of top management regarding expected behavior?
A) code of ethics
B) ethical policies
C) ethical rules
D) ethical procedures
Answer: A
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42) Which of the following is NOT a major provision in the SHRM code of ethics?
A) professional responsibility
B) theoretical development
C) professional development
D) ethical leadership
Answer: B
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43) A code of ethics establishes the ______ that the organization lives by.
A) policies
B) procedures
C) rules
D) guidance
Answer: C
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44) Which of the following would be a topic typically covered in a code of ethics?
A) business conduct
B) fair competition
C) workplace and HR issues
D) all of the above
Answer: D
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45) Which organization has as part of its code that it is considered unethical to accept gifts from suppliers and it either destroys the gifts or gives them to charity?
A) Wal-Mart
B) Target
C) Walgreens
D) Albertson's
Answer: A
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46) According to your text, to keep the code of ethics on the front burner for employees in larger firms, what must be done?
A) write a code of ethics
B) send a memo to all employees
C) appoint an ethics officer
D) put the ethical code on the intranet
Answer: C
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47) Which law prohibits bribes of foreign government officials or business executives?
A) Federal Bribery Act
B) Foreign Corrupt Practices Act
C) Corruption Practices Act
D) U.S. Bribery Act
Answer: B
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48) Even the criterion for winning the Baldrige National Quality Award has changed. An increased emphasis on ethics in ______ is now stressed.
A) communication
B) leadership
C) motivation
D) employment
Answer: B
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49) Which national award has added the criteria of ethics in leadership to the standards?
A) Deming Award
B) Juran Award
C) Baldrige National Quality Award
D) TQM National Award
Answer: C
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50) Which award requires that applicants be asked questions as to how senior leaders create an environment that fosters and requires legal and ethical behavior and how the leaders address such governance matters as fiscal accountability and independence in audits?
A) Baldrige National Quality Award
B) Juran Award
C) Deming Award
D) TQM National Award
Answer: A
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51) Which company offers its 8,500 employees considerable resources including interactive online courses, ethics leadership training, a decision map, a highly detailed set of policies and a help line?
A) Target
B) Walgreens
C) Wal-Mart
D) Adolph Coors Company
Answer: D
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52) What company was the winner of the 2005 Optimas Award for Ethical Practice for implementing a customized program that has directly affected the way employees perceives their work and do their jobs?
A) Adolph Coors Company
B) Wal-Mart
C) Ciba-Geigy
D) Hewlett-Packard
Answer: A
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53) What is the application of ethical principles to human resource relationships and activities called?
A) morals
B) social ethics
C) business ethics
D) human resource ethics
Answer: D
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54) A profession is characterized by the existence of a common body of knowledge and
A) a procedure for certifying members.
B) specific educational requirements.
C) a requirement for periodic reaccreditation.
D) functional procedures for designated activities.
Answer: A
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55) Which of the following is a prominent professional organization in the field of human resources?
A) ASTD
B) SHRM
C) WorldatWork
D) all of the above
Answer: D
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56) What is the largest national professional organization for individuals involved in all areas of human resource management?
A) ASTD
B) SHRM
C) WorldatWork
D) EMA
Answer: B
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57) Which organization's basic goals include defining, maintaining, and improving standards of excellence in the practice of human resource management?
A) ASTD
B) SHRM
C) IAPW
D) WorldatWork
Answer: B
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58) How many human resource professionals are members of the Society for Human Resource Management (SHRM)?
A) 70,000
B) 225,000
C) 270,000
D) 370,000
Answer: B
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59) How many SHRM affiliated chapters are there?
A) 400
B) 575
C) 600
D) 700
Answer: B
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60) In how many countries is the Society for Human Resource Management located?
A) 75
B) 95
C) 125
D) 150
Answer: C
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61) What journal is published by the Society for Human Resource Management?
A) Personnel Administrator
B) HR Society
C) HR Progress
D) HR Magazine
Answer: D
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62) What major subsidiary of SHRM offers in-depth information on issues addressing employment and retention issues?
A) Recruiting & Staffing Focus Area
B) Human Resource Activities Association
C) Training and Development Association
D) Personnel Administration Association
Answer: A
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63) Since 1976, how many HR professionals have been certified?
A) 30,000
B) 40,000
C) 50,000
D) 80,000
Answer: D
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64) The professional organization that recognizes human resource professionals through a certification program is
A) HRIS.
B) SHRM.
C) HRCI.
D) IPMA.
Answer: C
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65) What is the world's largest association dedicated to workplace learning and performance professionals?
A) ASTD
B) SHRM
C) IPMA
D) WorldatWork
Answer: A
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66) ASTD members come from more than ______countries.
A) 50
B) 75
C) 100
D) 20,000
Answer: C
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67) When was WorldatWork established?
A) 1955
B) 1960
C) 1970
D) 1980
Answer: A
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68) What is the membership total of WorldatWork?
A) 13,000
B) 20,000
C) 30,000
D) 33,000
Answer: C
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69) Which of the following is not one of the triple bottom line factors of social responsibility?
A) society
B) environment
C) economy
D) religion
Answer: D
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70) The implied, enforced, or felt obligation of managers, acting in their official capacities, to serve or protect the interests of groups other than themselves is
A) ethics.
B) morality.
C) corporate social responsibility.
D) religion.
Answer: C
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71) When a corporation behaves as if it has a conscience, it is said to be
A) unconscionable.
B) socially responsible.
C) participative.
D) charitable.
Answer: B
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72) What is the concept called that describes how a company as a whole behaves towards society?
A) corporate social responsibility
B) ethics
C) morality
D) religious
Answer: A
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73) A study by the Social Investment Research Analyst Network found that ______ percent of the S&P 100 issue CSR reports.
A) 30
B) 40
C) 50
D) 60
Answer: B
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74) Which of the following companies announced that it would double what it is spending on green technology research, and said, "We plan to make money doing it."?
A) General Electric
B) GAP
C) IBM
D) Hewlett-Packard
Answer: A
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75) Which of the following was a corporate service factor used to determine the business ethics' 100 best corporate citizens?
A) the community
B) the environment
C) overseas stakeholders
D) all of the above
Answer: D
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76) Which of the following is NOT a corporate service factor to be considered to be chosen to be on the 100 best corporate citizens list?
A) the government
B) the community
C) overseas stakeholders
D) women and minorities
Answer: A
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77) Over the years, what company has pursued programs to strengthen U.S. education, to encourage employment opportunities for minorities and women, to develop and implement environment-protection technology, and to encourage employee involvement in civic activities and the political process?
A) P&G
B) Intel
C) IBM
D) General Electric
Answer: A
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78) Who usually determines a corporation's approach to social responsibility?
A) government
B) stockholders
C) organization's top executives
D) board of directors
Answer: C
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79) An individual or group whose interests are affected by organizational activities is referred to as
A) stockholders.
B) organizational stakeholder.
C) corporate owners.
D) corporate shareholder.
Answer: B
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80) What percent of U.S. companies said they had donated money to community groups or charitable causes?
A) 94
B) 84
C) 74
D) 64
Answer: A
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81) What is increasingly holding corporate boards of directors and management accountable for putting the interest of stakeholders first?
A) military
B) government
C) society
D) states
Answer: C
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82) The set of written and unwritten rules and assumptions about acceptable interrelationships among the various elements of society is called a (an)
A) social obligation.
B) social contract.
C) custom.
D) social responsibility.
Answer: B
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83) What is much of the social contract embedded in?
A) morals
B) ethics
C) customs
D) government
Answer: C
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84) Like a (an) ______contract, the ______ contract often implies a quid pro quo exchange.
A) government, legal
B) environmental, legal
C) ethical, moral
D) legal, social
Answer: D
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85) Which law requires firms employing a hundred or more workers to give 60 days' notice to employees and local government officials when a plant closing or layoff affecting 50 or more employees for a 90-day period is planned?
A) Federal and State Layoff Act
B) National Layoff Avoidance Act