Question 1

Employees are not stakeholders of a corporation.

Accepted Answer

A) True 
 B)False

Question 2

Utilitarianism seeks to equalize the benefit to everyone.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is a company discussed in the text that suffered from corporate wrongdoing by company officials?

Accepted Answer

A) Adelphia Communications Corporation 
B) Tyco International 
C) Mallicoat Enterprises 
D) Both Adelphia Communications Corporation and Tyco International,but not Mallicoat Enterprises 
A) Adelphia Communications Corporation 
B) Tyco International 
C) Mallicoat Enterprises 
D) Both Adelphia Communications Corporation and Tyco International,but not Mallicoat Enterprises

Question 4

In which of the following are a majority of Fortune 500 companies incorporated?

Accepted Answer

A) New York 
B) California 
C) Delaware 
D) Connecticut 
A) New York 
B) California 
C) Delaware 
D) Connecticut

Question 5

Compliance with the law is the baseline for effective and responsible managerial action.

Accepted Answer

A) True 
 B)False

Question 6

Employment-at-will is mandated by federal law.

Accepted Answer

A) True 
 B)False

Question 7

Utilitarianism is a major deontological system that operates under the proposition that the ideal is to focus on motivation rather than on consequences.

Accepted Answer

A) True 
 B)False

Question 8

You are the CEO of a multi-billion dollar company.Your company employs over 75,000 people.The company is being sued for $100 million dollars as the result of racial discrimination against your customers.Your investigation reveals that some of your managers are actively violating the law.Discuss the steps you would take to ensure your company's compliance with ethical norms and legal requirements.

Accepted Answer

Students should discuss the ne

Question 9

Although high ethical standards are admirable,it is an accepted fact that ethical behavior reduces corporate performance.

Accepted Answer

A) True 
 B)False

Question 10

What was the result in the case of Bammert v.Don's Super Valu,Inc.discussed in the text involving the firing of the wife of a police officer after the officer had arrested the wife of the owner of Don's Super Valu store?

Accepted Answer

A) That the firing was prohibited because of the at-will employment principle. 
B) That the firing was legal because of the at-will employment principle. 
C) That the firing was prohibited because of a public policy exception to the at-will principle. 
D) That the firing was legal because of the employment contract involved. 
A) That the firing was prohibited because of the at-will employment principle. 
B) That the firing was legal because of the at-will employment principle. 
C) That the firing was prohibited because of a public policy exception to the at-will principle. 
D) That the firing was legal because of the employment contract involved.

Question 11

Which of the following is true regarding the Organization of Economic Cooperation and Development's code of business conduct?

Accepted Answer

A) It requires multinational corporations to act in accordance with the economic,commercial, and social goals and priorities of the host country. 
B) It requires multinational countries to pay the same wages in the host country as is paid in the home country. 
C)  It requires multinational corporations to borrow only from the host country. 
D)  All of the responses are correct. 
A) It requires multinational corporations to act in accordance with the economic,commercial, and social goals and priorities of the host country. 
B) It requires multinational countries to pay the same wages in the host country as is paid in the home country. 
C)  It requires multinational corporations to borrow only from the host country. 
D)  All of the responses are correct.

Question 12

Which of the following is true regarding shareholder primacy?

Accepted Answer

A) It is never legally mandated. 
B) It is always legally mandated. 
C) It is legally mandated only in very narrow circumstances. 
D) There is no such thing. 
A) It is never legally mandated. 
B) It is always legally mandated. 
C) It is legally mandated only in very narrow circumstances. 
D) There is no such thing.

Question 13

Fact pattern 2-1
Susan is an accountant who works in a company owned by Richard.Richard is concerned about the amount of taxes he will owe for the year and asks Susan to falsify his income tax return.Susan refuses.Richard fires her.Susan asks you for advice telling you that Richard is unethical and that she is certain that the law prohibits all unethical conduct.
-Refer to fact pattern 2-1.Which of the following is the theory on which Richard will most likely rely?

Accepted Answer

A) The employer-freedom principle 
B) The employment-at-will principle 
C) The free-country theory 
D) The free-market theory 
A) The employer-freedom principle 
B) The employment-at-will principle 
C) The free-country theory 
D) The free-market theory

Question 14

Which of the following is the first question managers should ask themselves when determining whether a proposed action is ethical?

Accepted Answer

A) Whether it will result in a loss of profits 
B) Whether stockholders would approve 
C) Whether the CEO would approve 
D) Whether it is legal 
A) Whether it will result in a loss of profits 
B) Whether stockholders would approve 
C) Whether the CEO would approve 
D) Whether it is legal

Question 15

Monica tells all her employees that she expects them to treat others as they would like to be treated.Which of following is a descriptive term for Monica's requirement?

Accepted Answer

A) The Required Rule 
B) The Accepted Rule 
C) The Golden Rule 
D) The Advanced Rule 
A) The Required Rule 
B) The Accepted Rule 
C) The Golden Rule 
D) The Advanced Rule

Question 16

Which of the following is a term for a stock option that has a strike price less than the underlying stock's fair market value on the date of the grant?

Accepted Answer

A) A price saver option 
B) An accepted option 
C) An in the money option 
D) A true option 
A) A price saver option 
B) An accepted option 
C) An in the money option 
D) A true option

Question 17

Which of the following is a term for the maximization of shareholder value?

Accepted Answer

A) Shareholder importance 
B) Shareholder primacy 
C) Value of shares maximization 
D) Corporate allocation 
A) Shareholder importance 
B) Shareholder primacy 
C) Value of shares maximization 
D) Corporate allocation

Question 18

The chief executive officer plays the most significant role in instilling a sense of ethics throughout the organization.

Accepted Answer

A) True 
 B)False

Question 19

Kantian theory considers universalizability and reversibility.

Accepted Answer

A) True 
 B)False

Question 20

Fact pattern 2-1
Susan is an accountant who works in a company owned by Richard.Richard is concerned about the amount of taxes he will owe for the year and asks Susan to falsify his income tax return.Susan refuses.Richard fires her.Susan asks you for advice telling you that Richard is unethical and that she is certain that the law prohibits all unethical conduct.
-Refer to fact pattern 2-1.Which of the following is a theory on which Susan may be able to prevail?

Accepted Answer

A) Public policy 
B) Reflective policy 
C) Implied protection 
D) No justification 
A) Public policy 
B) Reflective policy 
C) Implied protection 
D) No justification

Exam 2: Ethics ant the law

Employees are not stakeholders of a corporation.

Utilitarianism seeks to equalize the benefit to everyone.

Which of the following is a company discussed in the text that suffered from corporate wrongdoing by company officials?

In which of the following are a majority of Fortune 500 companies incorporated?

Compliance with the law is the baseline for effective and responsible managerial action.

Employment-at-will is mandated by federal law.

Utilitarianism is a major deontological system that operates under the proposition that the ideal is to focus on motivation rather than on consequences.

Although high ethical standards are admirable,it is an accepted fact that ethical behavior reduces corporate performance.

What was the result in the case of Bammert v.Don's Super Valu,Inc.discussed in the text involving the firing of the wife of a police officer after the officer had arrested the wife of the owner of Don's Super Valu store?

Which of the following is true regarding the Organization of Economic Cooperation and Development's code of business conduct?

Which of the following is true regarding shareholder primacy?

Which of the following is the first question managers should ask themselves when determining whether a proposed action is ethical?

Monica tells all her employees that she expects them to treat others as they would like to be treated.Which of following is a descriptive term for Monica's requirement?

Which of the following is a term for a stock option that has a strike price less than the underlying stock's fair market value on the date of the grant?

Which of the following is a term for the maximization of shareholder value?

The chief executive officer plays the most significant role in instilling a sense of ethics throughout the organization.

Kantian theory considers universalizability and reversibility.

law, value creation, and risk management

Courts, sources of law, and dispute resolution

Constitutional bases for business regulation

Agency

Administrative Law

Contracts

sales, licensing, and e-commerce

Torts and Privacy protection

product liability

Intellectual property

The employment agreement

civil rights and employment discrimination

executive compensation and employee benefits

Criminal law

Environmental law

Antitrust

Consumer Protection

real property and land use

Forms of business organizations

Directors, Officers, and Controlling Shareholders

Public and Private Offerings of Securities

Securities Fraud and insider trading

Debtor-Creditor Relations and Bankruptcy

International Business

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