Question 1

The National Restaurant Association announces a new industry code of ethics. The effectiveness of this code will be determined by

Accepted Answer

A)  the commitment of management to enforcing the code. 
B)  the similarity of the code to the employees' personal values. 
C)  the success of the campaign publicizing the code. 
D)  the relationship between the code and the law. 
A)  the commitment of management to enforcing the code. 
B)  the similarity of the code to the employees' personal values. 
C)  the success of the campaign publicizing the code. 
D)  the relationship between the code and the law. A

Question 2

One of the most important ways to maintain an ethical workplace is for management to set standards and expectations for ethical behavior.

Accepted Answer

A) True 
 B)False  True

Question 3

Ethics is important because laws may not always be easy to interpret or apply. This is because

Accepted Answer

A)  laws are very organized and structured and so are complicated to read. 
B)  laws represent the will of the people and that will is often changing. 
C)  laws are created by the political process and are the result of compromise. 
D)  laws often have definition provisions to explain the meaning of terms. 
A)  laws are very organized and structured and so are complicated to read. 
B)  laws represent the will of the people and that will is often changing. 
C)  laws are created by the political process and are the result of compromise. 
D)  laws often have definition provisions to explain the meaning of terms. B

Question 4

Corporate social responsibility may increase a business's reputation or goodwill.

Accepted Answer

A) True 
 B)False

Question 5

Making ethical decisions is most often best done by analyzing objective standards (such as profit or number of people fired) instead of subjective impacts on stakeholders.

Accepted Answer

A) True 
 B)False

Question 6

Because it may be unclear how a court will interpret and apply a law, companies can ensure decisions are viewed as ethical by documenting their own interpretation of the law.

Accepted Answer

A) True 
 B)False

Question 7

Flo, the manager of Grounds Maintenance Inc., must decide whether to use an herbicide that could be unhealthy to employees using it and to the public once it is on the ground. Flo might lose the client if she refuses to use the herbicide. If Flo analyzes the importance of good health and avoidance of disease to people in making her decision, she is likely using

Accepted Answer

A)  religious principles. 
B)  the categorical imperative. 
C)  the principle of rights theory. 
D)  utilitarianism. 
A)  religious principles. 
B)  the categorical imperative. 
C)  the principle of rights theory. 
D)  utilitarianism.

Question 8

As part of the IDDR approach as described in the text, it is important to list many possible actions and analyze them using several different ethical theories.

Accepted Answer

A) True 
 B)False

Question 9

Questions of what is ethical involve the extent to which a company 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. 
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.

Question 10

When profit maximization is the goal, a company does not benefit from ethical behavior.

Accepted Answer

A) True 
 B)False

Question 11

Because social media is so widespread, it is legal and ethical for a company to have social media policies limiting employees from criticizing the company.

Accepted Answer

A) True 
 B)False

Question 12

Owen and other managers employed by Pastry Bakeries are most likely to find that unethical behavior in the workplace can be deterred by

Accepted Answer

A)  taking immediate action in response to unethical conduct. 
B)  imposing sanctions disproportionate to misconduct. 
C)  distributing rewards without regard to ethics. 
D)  ignoring small breaches of company rules. 
A)  taking immediate action in response to unethical conduct. 
B)  imposing sanctions disproportionate to misconduct. 
C)  distributing rewards without regard to ethics. 
D)  ignoring small breaches of company rules.

Question 13

An ethical code of conduct is not

Accepted Answer

A)  law. 
B)  a set of rules that the company can enforce. 
C)  an outline of the company's policies. 
D)  a guide for decision makers facing ethical questions. 
A)  law. 
B)  a set of rules that the company can enforce. 
C)  an outline of the company's policies. 
D)  a guide for decision makers facing ethical questions.

Question 14

When deciding to engage in corporate social responsibility, a key factor when selecting activities is

Accepted Answer

A)  how the social activity relates to the business activities of the corporation. 
B)  how much free publicity the corporation will get from the social activity. 
C)  whether the corporation is required to do the social activity by law. 
D)  whether the activity will result in short-term profit increases. 
A)  how the social activity relates to the business activities of the corporation. 
B)  how much free publicity the corporation will get from the social activity. 
C)  whether the corporation is required to do the social activity by law. 
D)  whether the activity will result in short-term profit increases.

Question 15

Outcome-based ethics deals with traditional standards of behavior.

Accepted Answer

A) True 
 B)False

Question 16

Viaduct Corporation used untested and risky construction techniques to build a bridge under budget. The techniques were legal but the bridge collapsed, killing several people. Viaduct's actions were

Accepted Answer

A)  unethical and may result in legislation to ensure it does not happen again. 
B)  ethical because they were legal and so Viaduct owes no one. 
C)  dangerous and so inherently illegal. 
D)  legal under Sarbanes-Oxley and so Viaduct will face no penalties. 
A)  unethical and may result in legislation to ensure it does not happen again. 
B)  ethical because they were legal and so Viaduct owes no one. 
C)  dangerous and so inherently illegal. 
D)  legal under Sarbanes-Oxley and so Viaduct will face no penalties.

Question 17

The Fraud Reduction and Data Analytics Act to prevent, detect, and respond to fraud in federal programs institutionalizes

Accepted Answer

A)  fraud. 
B)  ethical rights and duties. 
C)  federal programs. 
D)  corporate policy. 
A)  fraud. 
B)  ethical rights and duties. 
C)  federal programs. 
D)  corporate policy.

Question 18

"Be honest and treat people fairly." With respect to business ethics, implementing this motto is

Accepted Answer

A)  not important. 
B)  only important in democratic societies. 
C)  very important. 
D)  only important with large customers. 
A)  not important. 
B)  only important in democratic societies. 
C)  very important. 
D)  only important with large customers.

Question 19

The effectiveness of an industry code of ethics is partly determined by the commitment of the industry or company leadership to enforce it.

Accepted Answer

A) True 
 B)False

Question 20

Ethics is a branch of philosophy that focuses on morality.

Accepted Answer

A) True 
 B)False

Exam 3: Ethics in Business

The National Restaurant Association announces a new industry code of ethics. The effectiveness of this code will be determined by

One of the most important ways to maintain an ethical workplace is for management to set standards and expectations for ethical behavior.

Ethics is important because laws may not always be easy to interpret or apply. This is because

Corporate social responsibility may increase a business's reputation or goodwill.

Making ethical decisions is most often best done by analyzing objective standards (such as profit or number of people fired) instead of subjective impacts on stakeholders.

Because it may be unclear how a court will interpret and apply a law, companies can ensure decisions are viewed as ethical by documenting their own interpretation of the law.

As part of the IDDR approach as described in the text, it is important to list many possible actions and analyze them using several different ethical theories.

Questions of what is ethical involve the extent to which a company has

When profit maximization is the goal, a company does not benefit from ethical behavior.

Because social media is so widespread, it is legal and ethical for a company to have social media policies limiting employees from criticizing the company.

Owen and other managers employed by Pastry Bakeries are most likely to find that unethical behavior in the workplace can be deterred by

An ethical code of conduct is not

When deciding to engage in corporate social responsibility, a key factor when selecting activities is

Outcome-based ethics deals with traditional standards of behavior.

Viaduct Corporation used untested and risky construction techniques to build a bridge under budget. The techniques were legal but the bridge collapsed, killing several people. Viaduct's actions were

The Fraud Reduction and Data Analytics Act to prevent, detect, and respond to fraud in federal programs institutionalizes

"Be honest and treat people fairly." With respect to business ethics, implementing this motto is

The effectiveness of an industry code of ethics is partly determined by the commitment of the industry or company leadership to enforce it.

Ethics is a branch of philosophy that focuses on morality.

Law and Legal Reasoning

Constitutional Law

Courts and Alternative Dispute Resolution

Tort Law

Product Liability

Intellectual Property Rights

Internet Law, Social Media, and Privacy

Criminal Law and Cyber Crime

Nature and Classification

Agreement

Consideration

Capacity and Legality

Voluntary Consent

The Statute of Fraudswriting Requirement

Performance and Discharge

Breach and Remedies

Third Party Rights

The Formation of Sales and Lease Contracts

Title and Risk of Loss

Performance and Breach of Sales and Lease Contracts

Negotiable Instruments

International and Space Law

Banking in the Digital Age

Security Interests and Creditors Rights

Bankruptcy

Agency Relationships in Business

Employment, Immigration, and Labor Law

Employment Discrimination

Sole Proprietorships and Franchises

All Forms of Partnership

Limited Liability Companies and Special Business Forms

Corporate Formation and Financing

Corporate Directors, Officers, and Shareholders

Corporate Mergers, Takeovers, and Termination

Investor Protection, Insider Trading, and Corporate Governance

Administrative Law

Antitrust Law and Promoting Competition

Consumer and Environmental Law

Liability of Accountants and Other Professionals

Personal Property and Bailments

Real Property and Landlord-Tenant Law

Insurance, Wills, and Trusts

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