Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

DeLouse Plastics Corporation pays its executives an excessive amount relative to other employees and to what executives at competitive companies are paid.This is most likely to be challenged as

Accepted Answer

A)  illegal and unethical.
B)  illegal only.
C)  neither illegal nor unethical.
D)  unethical only.E) None of the above
F) A) and C)

Question 3

According to utilitarianism,it does not matter how many people suffer a negative effect from an act.

Accepted Answer

A) True 
 B)False

Question 4

Ethical standards would most likely be considered violated if Retail Mart Corporation deals with a company in a developing nation that

Accepted Answer

A)  agrees to produce goods at Retail Mart's desired price.
B)  goes unnoticed by "corporate watch" groups.
C)  exploits its workers.
D)  pays its workers less than the U.S.minimum wage.E) A) and B)
F) All of the above

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

Made4U Goods,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

Accepted Answer

A)  a choice among alternatives to produce the maximum so?cietal 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.E) None of the above
F) B) and D) D

Question 7

Simply obeying the law does not fulfill all ethical obligations.

Accepted Answer

A) True 
 B)False  True

Question 8

The role played by women may present some difficult ethical problems for firms doing business internationally.

Accepted Answer

A) True 
 B)False

Question 9

Any decision by the management of Fast-Food Franchise Corporation may significantly affect its

Accepted Answer

A)  operators only.
B)  operators,owners,suppliers,the community,or society as a whole.
C)  owners only.
D)  suppliers,the community,or society as a whole only.E) A) and B)
F) None of the above

Question 10

Global Distribution Corporation suggests that its employees apply the "categorical imperative" to ethical issues that arise at work.This requires that the employees

Accepted Answer

A)  categorize the issues according to legality,morality,and profitability.
B)  consider only the benefits that would accrue to them personally.
C)  look only at the result,regardless of the means to attain it.
D)  weigh the consequences that would follow if everyone acted the same.E) None of the above
F) C) and D)

Question 11

Ethical codes of conduct can set the ethical tone of a firm.

Accepted Answer

A) True 
 B)False

Question 12

Solid Tool Company's decision makers view a particular risk in the use of Solid's product as open and obvious.Continuing to market the product without telling consumers of the risk could be justified from a perspective of

Accepted Answer

A)  duty-based ethics.
B)  Kantian ethics.
C)  rights-based ethics.
D)  utilitarian ethics.E) B) and D)
F) B) and C)

Question 13

Lyle,vice-president of sales for Mi-T Electric,Inc.,adheres to Judeo-Christian religious ethical standards.With respect to their application,these standards are

Accepted Answer

A)  absolute.
B)  analytical.
C)  discretionary.
D)  utilitarian.E) All of the above
F) A) and D)

Question 14

Business ethics focuses on ethical behavior in the business world.

Accepted Answer

A) True 
 B)False

Question 15

Bob,research manager for CornAgri Products,Inc.,applies utilitarian ethics to determine that an action is morally correct when it produces the greatest good for

Accepted Answer

A)  Bob.
B)  CornAgri.
C)  the fewest people.
D)  the most people.E) A) and C)
F) A) and B) D

Question 16

Peak & Vale Accountants provides other firms with accounting services.Questions of what is ethical involve the extent to which Peak & Vale has

Accepted Answer

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

Question 17

Dion,an accountant for Entertainment Sports,Inc.,attempts to apply a duty-based approach to ethical reasoning in conflicts that occur on the job.This approach is based on the idea that a person must

Accepted Answer

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

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

To assist in detecting illegal bribes,Cut Rite Contractors,Inc.,and all U.S.companies,must

Accepted Answer

A)  conceal financial records that reveal past bribes.
B)  keep records that "accurately and fairly" reflect financial activities.
C)  make bribes through third parties rather than directly to officials.
D)  permit payments to foreign officials that are unlawful in that country.E) All of the above
F) None of the above

Question 20

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

Accepted Answer

A)  fair or just behavior.
B)  financially rewarding behavior.
C)  legal behavior.
D)  religious behavior.E) A) and D)
F) All of the above

Exam 8: Ethics and Business Decision Making

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

Correct AnswerverifiedShow Answer

DeLouse Plastics Corporation pays its executives an excessive amount relative to other employees and to what executives at competitive companies are paid.This is most likely to be challenged as

Correct AnswerverifiedShow Answer

According to utilitarianism,it does not matter how many people suffer a negative effect from an act.

Correct AnswerverifiedShow Answer

Ethical standards would most likely be considered violated if Retail Mart Corporation deals with a company in a developing nation that

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Made4U Goods,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

Correct AnswerverifiedD

Simply obeying the law does not fulfill all ethical obligations.

Correct AnswerverifiedTrue

The role played by women may present some difficult ethical problems for firms doing business internationally.

Correct AnswerverifiedShow Answer

Any decision by the management of Fast-Food Franchise Corporation may significantly affect its

Correct AnswerverifiedShow Answer

Global Distribution Corporation suggests that its employees apply the "categorical imperative" to ethical issues that arise at work.This requires that the employees

Correct AnswerverifiedShow Answer

Ethical codes of conduct can set the ethical tone of a firm.

Correct AnswerverifiedShow Answer

Solid Tool Company's decision makers view a particular risk in the use of Solid's product as open and obvious.Continuing to market the product without telling consumers of the risk could be justified from a perspective of

Correct AnswerverifiedShow Answer

Lyle,vice-president of sales for Mi-T Electric,Inc.,adheres to Judeo-Christian religious ethical standards.With respect to their application,these standards are

Correct AnswerverifiedShow Answer

Business ethics focuses on ethical behavior in the business world.

Correct AnswerverifiedShow Answer

Bob,research manager for CornAgri Products,Inc.,applies utilitarian ethics to determine that an action is morally correct when it produces the greatest good for

Correct AnswerverifiedD

Peak & Vale Accountants provides other firms with accounting services.Questions of what is ethical involve the extent to which Peak & Vale has

Correct AnswerverifiedShow Answer

Dion,an accountant for Entertainment Sports,Inc.,attempts to apply a duty-based approach to ethical reasoning in conflicts that occur on the job.This approach is based on the idea that a person must

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

To assist in detecting illegal bribes,Cut Rite Contractors,Inc.,and all U.S.companies,must

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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D

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True

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D

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