BLaw Ch.2 – Flashcards

Which of the following was the result in regard to the statute of limitations in the Case Opener in which the plaintiff claimed that the drug Accutane caused her to develop ulcerative colitis and irritable bowel syndrome? A. That because the plaintiff was not warned by her doctor of specific risks caused by the medication, the statute of limitations did not begin to run until she became aware of an advertisement discussing the risk. B. That because the plaintiff was warned by her doctor of specific risks caused by the medication, the statute of limitations began to run prior to the time she became aware of an advertisement discussing the risk; and the statute of limitations barred her claim. C. That the statute of limitations began to run on the plaintiff's claim when the risk of the drug was discovered by the manufacturer, not on the date on which the plaintiff became aware of the risk and that the statute of limitations, therefore, barred her claim. D. That in lawsuits involving this type of drug, there is no statute of limitations because each day the plaintiff suffers from pain results in the beginning of a new cause of action. E. That the defendant committed fraud preventing it from relying on the statute of limitations.

Which of the following presents a problem when considering the theory of ethics known as absolutism? A. The questionable nature of the rules in most absolutist repositories seems overly flexible when applied to different situations. B. The unquestionable nature of the rules in most absolutist repositories seems overly inflexible when applied to different situations. C. The lack of objectivity. D. The fact that most individuals associated with this theory have been proven to have acted to the detriment of their followers in one way or another. E. The allegation that an excessive number of followers actually follow consequentialism.

Which of the following is the application of ethics to special problems and opportunities experienced by those in business? A. Situational ethics B. Consequentialism C. Business ethics D. Sarbanes-Oxley principles E. Business utilitarianism

Which of the following is the study and practice of decisions about what is good, or right? A. Morals B. Ethics C. Consequences D. Law E. Business

A local Chamber of Commerce plans a seminar on "the social responsibility of business in our community." What does that term reference? A. The responsibility of business to make profit for shareholders. B. The responsibility of business to have annual meetings. C. The expectations that the community imposes on firms doing business inside its borders. D. The expectations of employees regarding wage rates. E. The expectations of management in regard to adequate utility resources.

Which of the following is the minimal standard essential for the development of business ethics? A. Meeting the requirements of deontology. B. Meeting the requirement of the public disclosure test. C. Meeting the requirement of utilitarianism. D. Satisfying the company's board of directors. E. The legality of a decision.

Which of the following is true regarding business ethics? A. Business ethics refers to standards of business conduct but does not result in a set of correct decisions. B. Business ethics results in a set of correct decisions and does not simply refer to standards of business conduct. C. Business ethics produces a list of correct business decisions that all ethical businesses will make so long as the theory of deontology is followed. D. Business ethics produces a list of correct business decisions that all ethical businesses will make so long as the theory of rule utilitarianism is followed. E. Business ethics produces a list of correct business decisions that all ethical businesses will make so long as the theory of virtue ethics is followed.

Which of the following was the result in U.S. v. Alfred Caronia, the case in the text in which the defending pharmaceutical representative was charged with illegally promoting off-label use of a drug? A. That the defendant had not indeed promoted off-label use of the drug at issue, and the case was dismissed. B. That although the defendant promoted off-label use of the drug at issue, the off-label use was later approved as a valid and appropriate use, and the case was dismissed. C. That the defendant's speech failed to meet the criteria for classification as commercial speech and that, therefore, the defendant had no constitutional argument in opposition to the charges against him. D. That although the defendant's speech met the criteria for classification as commercial speech, no constitutional protection has been historically extended to that type of speech; and the defendant, therefore, had no constitutional argument in opposition to the charges against him. E. That although the defendant's speech met the criteria for classification as commercial speech entitled to constitutional protection under some conditions, the government met the requirements for regulation of the particular speech at issue involving off-label usage.

Which of the following is true regarding revelations involving Enron and WorldCom? A. That their upholding of high ethical standards in regard to accounting practices supports the conclusion that the business world should be allowed to regulate itself. B. That WorldCom, a privately held company, had high ethical standards but that Enron, a publicly traded company, engaged in illegal accounting practices supporting the conclusion that privately held companies should be allowed to regulate themselves whereas publicly held companies need significant government regulation. C. That WorldCom, a privately held company, engaged in illegal accounting practices but that Enron, a publicly traded company, had high ethical standards supporting the conclusion that privately held companies need significant government regulation whereas publicly held companies should be allowed to regulate themselves. D. That although illegal accounting practices occurred, it is so difficult to find and regulate such practices that any regulation should be left to the free market. E. That accounting issues with these companies illustrate that the business world cannot be allowed to regulate itself ethically and that government oversight is needed.

Which of the following is asserted by the principle of rights? A. That whether a business decision is ethical depends on how the decision affects the rights of all involved. B. That whether a business decision is ethical depends on how the decision affects the rights of stockholders without consideration of other stakeholders. C. That whether a business decision is ethical depends on how the decision affects the rights of employees without consideration of other stakeholders. D. That whether a business decision is ethical depends on how the decision affects the overall economy. E. That whether a business decision is ethical depends on how the decision affects the rights of organized labor without consideration of other stakeholders.

What is the system of "guanxi" used in China? A. It refers to a system of relationship building woven together by social ties. B. It refers to a system of strict ethical rules. C. It refers to a prohibition against criticism of government rules and regulations. D. It refers to a system by which business people attempt to avoid strict Chinese regulations. E. It refers to a system of smuggling.

What do the letters "WPH" mean in reference to the "WPH Framework for Business Ethics" discussed in the text? A. Who, Purpose, and How B. When, Plan, and How C. Why, Procedure, and Hope D. Where, Plan, and Hope E. Where, Procedure, and How

Which of the following is true under the WPH process of ethical decision making? A. The interest of management is ranked higher than that of employees when decisions are made. B. The interest of owners is ranked higher than that of both employees and management when decisions are made. C. When decisions are made, the interest of the community as a whole is considered last. D. The interest of management is ranked higher than that of employees when decisions are made, but the interest of owners is ranked higher than the interest of any group. E. There is not a framework under WPH for ranking one stakeholder above another.

Which of the following are stakeholders of a business? A. Shareholders but not employees B. Employees but not shareholders C. Customers but not employees or shareholders D. Management but not employees E. Shareholders, employees, customers, and management

Positive abstractions that capture our sense of what is good or desirable are called ______. A. Ethical ideas B. Values C. Conscience demands D. Desirable principles E. Action goals

Which of the following are values in the WPH process of ethical decision making? A. Freedom only B. Security only C. Efficiency only D. Freedom and security, but not efficiency E. Freedom, security, and efficiency

The idea that we should interact with other people in a manner consistent with the manner in which we would like them to interact with us is called the ______. A. Equalization Rule B. Ethical Realization Rule C. Silver Rule D. Golden Rule E. Ten Commandments Rule

What is the name of the law signed by President Bush in the wake of several corporate accounting scandals? A. The Sarbanes-Oxley Act B. The Public Accounting Act C. The Certified Public Accounting Act D. The Whaley-Mallicoat Act E. The Corporate Scandal Act

Which of the following is true regarding activities of the Public Company Accounting Oversight Board? A. The Board ensures that auditors and public accounting firms compile accurate and truthful financial reports for the companies they audit, but it has no responsibility in regard to whistle-blowing protection. B. The Board requires that companies devise a system that allows employees to report suspicions of unethical behavior, but it does not address financial reports prepared by auditors and public accounting firms. C. The Board requires that the universalization test be used as the primary ethical guideline and also mandates protection for whistle-blowers who report suspicious activity involving financial reports. D. The Board ensure that auditors and public accounting firms compile accurate and truthful financial reports for the companies they audit and also requires that companies devise a system that allows employees to report suspicions of unethical behavior. E. The Public Company Accounting Oversight Board was abolished during the Obama administration and no longer exists.

According to the text, which of the following may be a part of the "how" in the WPH process of decision making? A. Public disclosure, universalization, security, and the Golden Rule B. Values, public disclosure, and security C. Profit maximization, security, and public disclosure D. Whistle-blowing, the Golden Rule, values, and public disclosure E. Public disclosure, universalization, and the Golden Rule

The "public disclosure" test for ethical behavior is sometimes referred to as the ______ test. A. Television B. Powell C. Self-conscious D. Golden E. Primary

The ______ for ethical behavior seeks consideration of what the world would be like if a decision is copied by everyone else. A. Golden rule B. Universalization test C. Public disclosure D. Relevant disclosure E. World rule

Which of the following is true regarding steps taken by news corporations to protect confidential records? A. News corporations are putting numerous security barriers and encryptions around their records so that nobody can gain access to them. B. News corporations are attempting to protect information written by their own employees, but efforts are not made to protect confidential sources because constitutional protection does not extend to confidential sources. C. News corporations are not bothering with security barriers to the extent as in previous decades because government regulation requires that information be turned over, and there is no point in taking drastic measures to protect such information. D. New regulations make significant privacy barriers illegal in regard to news corporations, so many barriers have been or are being removed. E. Because of the respect given to confidential records by the U.S. government and its enforcement agencies, news corporations see little need to enhance protection of confidential records.

The ethical theory that requires that we evaluate the morality of an action by imagining ourselves in the position of the person facing the ethical dilemma is called ______. A. Situational ethics B. Ethical relativism C. Absolutism D. Consequentialism E. Relativity ethics

How is absolutism different from ethical relativism and situational ethics? A. It applies utilitarianism. B. It holds that a cost-benefit analysis should be applied. C. It holds that whether an action is moral does not depend on the perspective of the person facing the ethical dilemma. D. It applies virtue ethics and concentrates on the accepted values of the person at issue as well as those of the community involved. E. It applies corporate ethics principles.

Which of the following is true regarding the relationship between ethical relativism and situational ethics? A. Like ethical relativism, situational ethics requires that we evaluate the morality of an action by imagining ourselves in the position of the person facing the ethical dilemma; but unlike ethical relativism, situational ethics allows us to judge other people's actions. B. Like ethical relativism, situational ethics requires that we evaluate the morality of an action by imagining ourselves in the position of the person facing the ethical dilemma and also like ethical relativism, situational ethics allows us to judge the actions of others. C. While the two theories are similar, ethical relativism upholds the existence of objective moral standards whereas situational ethics refuses to recognize the existence of objective moral standards. D. Ethical relativism and situational ethics are the same theory. E. There is no relationship between ethical relativism and situational ethics because the theories are fundamentally opposed to each other.

Which of the following requires that we see murder as a moral action as long as the murderer believes that the action is best for himself or herself? A. Absolutism B. Deontology C. Categorical imperative D. Uncertainty of thought E. Ethical relativism

Which of the following is also referred to as ethical fundamentalism? A. Ethical relativism B. Absolutism C. Social responsibility D. Ethical absolutism E. Absolute theory

What is the basis of consequentialism? A. Deontology B. Categorical imperatives C. Inquiry into the consequences D. Disregard of consequences E. Act utilitarianism

Kantian ethics is involved with which of the following ethical theories? A. Deontology B. Act utilitarianism C. Rule utilitarianism D. Absolutism E. Situational ethics

An ethical theory that urges managers to take those actions that provide the greatest pleasure after having subtracted the pain or harm associated with the action in question is called ______. A. Deontology B. Utilitarianism C. Kantian ethics D. Absolutism E. Ethical relativism

Business manager who deceives everyone because the manager believes that deception maximizes pleasure over pain in a given situation is acting consistently with which ethical theory? A. Act deontology B. Ethical relativism C. Act utilitarianism D. Ethical fundamentalism E. Rule utilitarianism

A business manager may consider it wrong to terminate a person whose spouse has terminal cancer because a firm has an absolute obligation to support its employees when they are vulnerable, period. The business manager is acting consistently with which ethical theory? A. Deontology B. Ethical relativism C. Act utilitarianism D. Ethical fundamentalism E. Rule utilitarianism

A person who believes that they should not cheat on a drug test because if everyone did so, the drug test would be meaningless is applying a[n] ______. A. Ethics of care B. Virtual analysis C. Cost-benefit analysis D. Fundamentalist approach E. Categorical imperative

Which of the following helps explain why the principle of deontology may be difficult to apply? A. People disagree about what duties we owe to one another and which duties are more important. B. People disagree about whether consequences are positive or negative. C. People disagree about the ethics of care. D. People disagree about what duties we owe to one another and also whether consequences are positive or negative. E. People disagree about what duties we owe to one another, whether consequences are positive or negative, and about the ethics of care.

The ethical system in which the development of virtues, or positive character traits such as courage, justice, and truthfulness, is the basis for morality is called ______. A. Absolutism decision B. Virtual analysis C. Virtue ethics D. Fundamentalist approach E. Categorical imperative

Which of the following consists of acting on the basis of the recognition that certain actions are right or wrong, regardless of their consequences? A. Act utilitarianism B. Rule utilitarianism C. Situational ethics D. Virtue ethics E. Deontology

What is a difficulty with the application of virtue ethics? A. The applicable categorical imperatives. B. The lack of agreement about the meaning of "the good life." C. The applicable principle of rights. D. The ethics of care analysis. E. The lack of agreement regarding which rules on balance produce the greatest amount of pleasure for the greatest number of people.

The ______ adherents believe that when one individual, the caregiver, meets the needs of one other person, the cared-for party, the caregiver is helping to meet the needs of all the individuals who fall within the cared-for party's web of care. A. Deontology B. Utilitarianism C. Absolutism D. Virtue ethics E. Ethics of care

The ______ holds that the right course of action is the option most consistent with the building and maintaining of human relationships. A. Ethics of care B. Principle of virtue ethics C. Deontology D. Act utilitarianism E. Rule utilitarianism