question

Ethics is the branch of philosophy that focuses on what constitutes right and wrong behavior

answer

True

question

Ethics is not concerned with the philosophical basis for morality

answer

False

question

Ethics is not concerned with the fairness or justness of an action

answer

False

question

Business ethics focuses on ethical behavior in the business world

answer

True

question

A business firm's profits may suffer if the firm acts unethically

answer

True

question

Businesspersons who would choose to act unethically may be deterred from doing so because of public opinion.

answer

True

question

Business ethics is consistent only with short-run profit maximization.

answer

False

question

Managers must apply different standards to themselves than they apply to their employees.

answer

False

question

Setting realistic workplace goals can reduce the probability that employees will act unethically

answer

True

question

To act ethically is to think narrowly about what is best in the short run for one' s employer

answer

False

question

Duty-based ethics may be based on religious precepts or philosophical reasoning

answer

True

question

Under the principle of rights theory, one person' s set of values is as " right" as another's

answer

False

question

Ethical standards based on religious teachings tend to be absolute

answer

True

question

Ethical reasoning is the process through which an individual rationalizes whatever action he or she chooses to take

answer

False

question

Duty-based ethical standards imply that people have basic rights

answer

True

question

If an action is ethical from an outcome-based perspective, it is always ethical from a duty-based perspective

answer

False

question

In ethical terms, a cost-benefit analysis is an assessment of the negative and positive effects of alternative actions on individuals.

answer

True

question

Establishing which duties take priority over others determines a firm's views on corporate social responsibility

answer

True

question

According to utilitarianism, an action that affects a minority adversely is morally wrong

answer

False

question

According to utilitarianism, it does not matter how many people benefit from an act

answer

False

question

Corporations can be perceived as owing ethical duties to groups other than their shareholders.

answer

True

question

An ethics program can clarify what a company considers to be unacceptable conduct

answer

True

question

Corporations can behave as good citizens by promoting goals that society deems worthwhile

answer

True

question

Corporate ethical policies must be clearly communicated to be effective

answer

True

question

Corporate ethical policies and programs must be integrated throughout the firm to be effective.

answer

True

question

In the interest of preserving personal freedom, the law codifies all ethical requirements

answer

False

question

An action may be unethical but legal

answer

True

question

A business firm can sometimes predict whether a given action is legal

answer

True

question

Acting in good faith gives a business firm a better chance of defending its actions in court

answer

True

question

To be ethical is to " do the right thing" but it does not otherwise " pay."

answer

False

question

Ignorance of a law excuses a business from liability for its violation

answer

False

question

A business organization and its actions cannot be based on trust

answer

False

question

One guideline to evaluating the ethics of a particular action is to " let your conscience be your guide."

answer

True

question

The roles that women play in some foreign countries may present some difficult ethical problems for firms doing business internationally.

answer

True

question

Bribery of foreign government officials is both an ethical and a legal issue

answer

True

question

John is sales manager for Kleen ' N Brite Products, Inc. Compared to John' s personal activities, his business activities most likely involve a. more complex ethical issues. b. simpler ethical issues. c. the same ethical issues. d. no ethical issues.

answer

A

question

Lia works for Media Marketing Company. Her job includes putting " spin" on the firm' s successes and failures. In this context, ethics consist of a." bad" versus " good" publicity. b. questions of rightness and wrongness. c. the firm' s quarterly revenue. d. whatever is legal.

answer

B

question

In studying the legal environment of business, Professor Dooley' s students also review ethics in a business context. Ethics includes the study of what constitutes a. fair or just behavior b. financially rewarding behavior c. legal behavior d. religious behavior

answer

A

question

Superior Corporation engages in ethical behavior solely for the purpose of getting good publicity and thereby increasing profits. Superior is a. acting unethically in its pursuit of publicity. b. acting unethically in its pursuit of profits c. acting unethically in its setting of priorities d. not acting unethically

answer

D

question

Leo runs an asset recovery business. In one case, he recruits clients by misrepresenting the facts and pretending to be licensed to practice law in Mississippi. He files gratuitous, malicious pleadings, lies to the court, and otherwise abuses the judicial process. Later, he involves himself in other cases in which he uses similar tactics. According to the description quoted by the court in Case 2.1, Baum v. Blue Moon Ventures LLC, Leo' s conduct is a. "an example of guerrilla warfare through litigation" b. "praiseworthy for tis ingenuity inn recovering hidden assets" c. "understandable in the pursuit of profit but not laudable." d. "unjustifiable but not seriously reprehensible"

answer

A

question

Leo runs an asset recovery business. In one case, he recruits clients by misrepre-senting the facts and pretending to be licensed to practice law in Mississippi. He files gratuitous, malicious pleadings, lies to the court, and otherwise abuses the judicial process. Later, he involves himself in other cases in which he uses similar tactics. Under the decision of the court in Case 2.1, Baum v. Blue Moon Ventures LLC, Leo' s conduct most likely warrants a. an admonishment but no other sanctions b. an injunction against certain cost filing plus other sanctions c. no sanctions but no praise d. praise for its aggression in recovering the assets of "deadbolt" debtors

answer

B

question

Tina, the chief financial officer for USA Products Corporation, attempts to apply Christian precepts in making ethical decisions and in doing business. In applying duty-based ethical standards that are derived from a religious source, Tina would most likely consider the motive behind an act to be a. irrelevant b. the least important consideration c. the most important consideration d. the only consideration

answer

A

question

Dion, an accountant for Engineering Associates, Inc., attempts to apply the duty-based approach to ethical reasoning in conflicts that occur on the job. This approach is based on the idea that a person must a. achieve the greatest good for the most people b. avoid unethical behavior regardless of the consequences c. conform to society's ethical standards d. place his or her employer's interest first

answer

B

question

Del, vice-president of sales for EZ Products, Inc., adheres to religious ethical standards. Their application involves an element of a. absolutism b. after the fact rationalization c. personal discretion d. utilitarianism

answer

A

question

Rob, the owner of Super Stores, Inc., adheres to the " principle of rights" theory. Under this theory, a key factor in determining whether a business decision is ethical is how that decision affects a. the right determination under a cost-benefit analysis b. the rights of others c. the "right" thing to do d. the right to make a profit

answer

B

question

In making business decisions, Brian, personnel manager for Conservative Investments, Inc., applies his belief that all persons have fundamental rights. This is a. a religious rule b. the categorical imperative c. the principle of rights d. utilitarianism

answer

c

question

Energy Research Corporation asks its employees to consider ethical behav-ior from a " categorical imperative" perspective. This approach a. categorizes certain actions as imperative. b. considers the consequences to follow if everyone acted the same. c. focuses on categories of rights and privileges. d. imposes sanctions on those who behave unethically.

answer

B

question

In business deals, Elin, the chief executive officer of Frosted Donuts, Inc., follows duty-based ethical standards. These are most likely derived from a. a corporate ethics code b. a cost-benefit analysis c. philosophical reasoning d. the law

answer

C

question

In deciding questions of corporate social responsibility, Mega Deals, Inc., is concerned with a. how the corporation can best fulfill its duty to society. b. the effect on corporate profits of ignoring any duty to society. c. whether the corporation owes a duty to society. ' d. all of the choices

answer

A

question

Teresa, in making marketing decisions for Uno Stuff, Inc., takes a utili-tarian perspective. A characteristic statement of this philosophy is a." an action is morally correct when, among the people it affects, it produces the greatest amount of good for the greatest number." b." for every action, there is an equal and opposite reaction." c." life in a state of nature is nasty, brutish, and short." d." the pursuit by individuals of their self-interest will result in a corre-sponding increase in societal welfare."

answer

A

question

Callie, a lawyer on the staff of Droll International Ltd., applies the utilitar-ian theory of ethics in business contexts. Utilitarianism focuses on a. moral values b. religious beliefs c. the consequences of an action d. the nature of an action

answer

C

question

In making decisions for Sales Unlimited Inc., Tajik uses a cost-benefit analysis. This is a part of a. duty based ethics b. Kantian ethics c. the principle of rights d. utilitarianism

answer

D

question

Lacey, a vice-president of Medico Pharmaceuticals, Inc., doesnotapply utilitarianism to business ethical issues. One problem with utilitarianism is that it a. gives business profits priority over production costs b. ignores the practical costs of a given set of circumstances c. requires complex cost-benfit analyses of simple situations d. tends to justify human costs that many find unacceptable

answer

D

question

Any decision by Reggie and the other managers of Standard Solutions Corporation may significantly affect the firm's a. operatiors only b. operatiors, owenr, suppliers, the community, or society as a whole c. owners only d. suppliers, community, or society as a whole only

answer

B

question

Manufactured Metals, Inc., asks its employees, many of whom are members of the National Machinists Union, to apply the utilitarian theory of ethics. This theory does not require a. a choice among alternatives that will produce maximum societal utility b. a determination of whom an action will affect c. an assessment of the effects of alternatives on those affected. d. the acquiring of the means of production by workers

answer

D

question

A common ethical dilemma faced by the management of Wheel Deals Corporation involves the effect that its decision will have on a. one group as opposed to another b. the firm's competitors c. the government d. all of the choices

answer

A

question

General Auto, Inc., needs to cut costs by downsizing. In determining which employees to discharge, General Auto will most likely weigh a. its ethical duty to long-term employees and the legality of discharg-ing older workers only. b.its ethical duty to long-term employees, its profit margin, and the le-gality of discharging older workers. c. the legality of discharging older workers only. d. no duty

answer

B

question

Steele Tool Company' s decision makers view a particular risk in the use of Steele' s product as open and obvious. They believe that because the risk is obvious, consumers are already taking steps to avoid it and that adding a warning could result in lower sales that would necessitate layoffs of employees. Thus, in the managers' view, the warning would not benefit consumers but could have a serious negative impact on Steele' s employees. Continuing to market the product without telling consumers of the risk could be justified from a perspective of a. duty-based ethics b. Kantian ethics c. rights based ethics d. utilitarian ethics

answer

D

question

Quality Paper Corporation (QPC) makes and sells its products nationwide. To be considered socially responsible when making a business decision, QPC could take into account the needs of a. its consumers, the community, and society only b. its employees and owner sonly c. its employees, owners, consumers, the community, and society d. no one

answer

C

question

Eagle Production Corporation could demonstrate a commitment to ethical behavior by a. complying with the law only. b. implementing ethical programs only. c. making a profit only. d.complying with the law, establishing ethics codes, and making money

answer

D

question

Equity Corporation provides other firms with funds to expand operations. Questions of what is ethical involve the extent to which Equity has a. a legal duty beyond those duties mandated by ethics. b. an ethical duty beyond those duties mandated by law. c. any duty beyond those mandated by both ethics and the law. d.any duty when it is uncertain whether a legal duty exists.

answer

B

question

Capital Acquisitions Corporation buys, reorganizes, and sells other com-panies. If Capital strictly complies with existing laws, the firm will a. fulfill all business ethics obligations b. fulfill no business ethics obligations c. fulfill some business ethics obligations d. not need to fulfill any business ethics obligations

answer

C

question

Import-Export Sales, Inc., like other businesses, has duties prescribed by a. ethics and the law b. ethics only c. the law only d. the market only

answer

A

question

Sven, the human resources director for Temp Labor Unlimited, Inc., at-tempts to comply with the law in dealing with applicants, employees, and clients. One of the challenges Sven faces is that the legality of an action is a. always clear b. never clear c. not always clear d. usually clear

answer

C

question

Some consumers misuse the products of Hardware Gear, Inc., and are injured, although the products come with detailed instructions and warnings against misuse. In terms of responsibility, Hardware may have a. a legal duty only b. an ethical and a legal duty c. an ethical duty only d. neither an ethical nor a legal duty

answer

C

question

Max lies to Nora, his spouse. This is a. illegal and unethical b. illegal only c. neither illegal nor unethical only d. unethical only

answer

D

question

Housemate, Inc., makes and sells a variety of household products. With a fair amount of certainty, Housemate' s decision makers can predict whether a given business action would be legal in a. all situations b. many situations c. no situations d. practically no situations

answer

B

question

Otto, the chief executive officer of Prismatic Diamond Corporation (PDC), wants to ensure that PDC' s activities are legal and ethical. The best course for Otto and PDC is to act in a. good faith b. ignorance of the law c. regard for the PDC's shareholders only d. their own self interest

answer

A

question

Fealty Financial Corporation asks its employees to judge their actions and get on the ethical business decision-making " bandwagon." Guidelines for evaluating individual actions include all of the following except a. an individuals's conscience b. business rules and procedures c. loopholes i the law or company policies d. promises to others

answer

C

question

Make-It Construction Corporation makes a side payment to a government official in Nigeria to obtain a contract. In the United States, this is a. illegal and unethical b. illegal only c. neither illegal nor unethical d. unethical only

answer

A

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