Question 1

Global businesses need to be conscious of the impact of different religious principles on ethics.

Accepted Answer

A) True 
 B)False

Question 2

Ethics has to do with how a businessperson making business decisions applies

Accepted Answer

A)  legal doctrine. 
B)  moral principles. 
C)  corporate policy. 
D)  financial priorities. 
A)  legal doctrine. 
B)  moral principles. 
C)  corporate policy. 
D)  financial priorities.

Question 3

ChemCo Inc. expends funds and takes steps to ensure that all employees are treated fairly and that the environmental impact of the corporation is minimal. This is the concept of

Accepted Answer

A)  the moral minimum. 
B)  corporate social responsibility. 
C)  the categorical imperative. 
D)  the triple bottom line. 
A)  the moral minimum. 
B)  corporate social responsibility. 
C)  the categorical imperative. 
D)  the triple bottom line.

Question 4

With respect to what society will tolerate, a company's compliance with the law, and no more, is

Accepted Answer

A)  the highest ethical level. 
B)  the lowest ethical level. 
C)  the only ethical level. 
D)  irrelevant. 
A)  the highest ethical level. 
B)  the lowest ethical level. 
C)  the only ethical level. 
D)  irrelevant.

Question 5

The term moral minimum is best defined as the highest degree of ethical behavior expected of a firm.

Accepted Answer

A) True 
 B)False

Question 6

Caryn is faced with making a business decision. As she thinks about the problem, she feels that there is no easy answer. She continues to think about what is making her uncomfortable about the situation before brainstorming possible solutions. If Caryn is using the IDDR approach to decision making, she is engaged in

Accepted Answer

A)  the discussion step. 
B)  the decision step. 
C)  the inquiry step. 
D)  the review step. 
A)  the discussion step. 
B)  the decision step. 
C)  the inquiry step. 
D)  the review step.

Question 7

Corporate social responsibility links the responsibility of citizenship with the strategy and key principles of a business.

Accepted Answer

A) True 
 B)False

Question 8

Product Sales Inc. adheres strictly to the goal of maximizing profits. Even so, Product Sales will benefit from ethical behavior

Accepted Answer

A)  if customer service is good. 
B)  if its owners are happy with the revenue. 
C)  under no circumstances. 
D)  if it efficiently allocates its scarce resources. 
A)  if customer service is good. 
B)  if its owners are happy with the revenue. 
C)  under no circumstances. 
D)  if it efficiently allocates its scarce resources.

Question 9

To avoid unethical practices by a foreign supplier, an effective business practice is to

Accepted Answer

A)  pay foreign employees at U.S. pay rates. 
B)  have suppliers sign contracts affirming that they will behave ethically. 
C)  routinely monitor the foreign workplaces. 
D)  obtain a legislative decree that the supplier is ethical. 
A)  pay foreign employees at U.S. pay rates. 
B)  have suppliers sign contracts affirming that they will behave ethically. 
C)  routinely monitor the foreign workplaces. 
D)  obtain a legislative decree that the supplier is ethical.

Question 10

Decision makers need to consider what they can and will do before they consider what they should do.

Accepted Answer

A) True 
 B)False

Question 11

Once a company has investigated any foreign suppliers, it is unnecessary to continue to monitor those suppliers.

Accepted Answer

A) True 
 B)False

Question 12

Frances, an executive with GMO Seed & Feed, Inc., has to decide whether to market a product that could offer substantial benefits but might also have potentially serious side effects for a small percentage of users. Using the different ethical philosophies discussed, analyze the decision.

Accepted Answer

When a corporate executive has to decide

Question 13

Corporate "citizenship" involves making decisions beyond just maximizing profits and dividends.

Accepted Answer

A) True 
 B)False

Question 14

When adopting duty-based ethics, corporations often demonstrate the duties they owe

Accepted Answer

A)  through required government disclosure forms. 
B)  in their mission statements and strategic plans. 
C)  by adopting a corporate religion. 
D)  in the biographies of corporate leaders. 
A)  through required government disclosure forms. 
B)  in their mission statements and strategic plans. 
C)  by adopting a corporate religion. 
D)  in the biographies of corporate leaders.

Question 15

Compliance with the law is not always sufficient to determine "right" behavior because

Accepted Answer

A)  the law does not codify all ethical requirements. 
B)  company codes are also sources of law. 
C)  business decisions can have negative impacts. 
D)  ethical problems occur in business. 
A)  the law does not codify all ethical requirements. 
B)  company codes are also sources of law. 
C)  business decisions can have negative impacts. 
D)  ethical problems occur in business.

Question 16

Recreation & Sports Equipment Corporation sells a profit-generating product that is capable of seriously injuring consumers who misuse it in a foreseeable way. They are contemplating adding a warning to the product but that warning will increase the cost of the product and they are worried that it may scare some potential customers who might not buy the product. Thinking about the two main theories of the role of business in society, discuss whether Recreation & Sports Equipment Corporation behaves ethically by continuing to sell the product without warning.

Accepted Answer

There are two primary theories of the ro

Question 17

Duty-based ethical standards are most likely to derive from

Accepted Answer

A)  a corporate ethics code. 
B)  a cost-benefit analysis. 
C)  philosophical reasoning. 
D)  the law. 
A)  a corporate ethics code. 
B)  a cost-benefit analysis. 
C)  philosophical reasoning. 
D)  the law.

Question 18

Once a law is passed to codify an ethical requirement, the ethical aspect of the action is no longer important.

Accepted Answer

A) True 
 B)False

Question 19

According to the theory of corporate social responsibility, any decision by the management of Precision Processing Corporation should consider how a proposed action may affect only the

Accepted Answer

A)  firm's officers and shareholders. 
B)  firm's officers, shareholders, and suppliers, as well as the community, or society as a whole. 
C)  firm's shareholders. 
D)  firm's suppliers, the community, or society as a whole as well as the news media and local government. 
A)  firm's officers and shareholders. 
B)  firm's officers, shareholders, and suppliers, as well as the community, or society as a whole. 
C)  firm's shareholders. 
D)  firm's suppliers, the community, or society as a whole as well as the news media and local government.

Question 20

A cost-benefit analysis is part of

Accepted Answer

A)  a duty-based ethics approach. 
B)  corporate social responsibility. 
C)  the principle of rights theory. 
D)  utilitarianism. 
A)  a duty-based ethics approach. 
B)  corporate social responsibility. 
C)  the principle of rights theory. 
D)  utilitarianism.

Exam 3: Ethics in Business

Global businesses need to be conscious of the impact of different religious principles on ethics.

Ethics has to do with how a businessperson making business decisions applies

ChemCo Inc. expends funds and takes steps to ensure that all employees are treated fairly and that the environmental impact of the corporation is minimal. This is the concept of

With respect to what society will tolerate, a company's compliance with the law, and no more, is

The term moral minimum is best defined as the highest degree of ethical behavior expected of a firm.

Corporate social responsibility links the responsibility of citizenship with the strategy and key principles of a business.

Product Sales Inc. adheres strictly to the goal of maximizing profits. Even so, Product Sales will benefit from ethical behavior

To avoid unethical practices by a foreign supplier, an effective business practice is to

Decision makers need to consider what they can and will do before they consider what they should do.

Once a company has investigated any foreign suppliers, it is unnecessary to continue to monitor those suppliers.

Frances, an executive with GMO Seed & Feed, Inc., has to decide whether to market a product that could offer substantial benefits but might also have potentially serious side effects for a small percentage of users. Using the different ethical philosophies discussed, analyze the decision.

Corporate "citizenship" involves making decisions beyond just maximizing profits and dividends.

When adopting duty-based ethics, corporations often demonstrate the duties they owe

Compliance with the law is not always sufficient to determine "right" behavior because

Duty-based ethical standards are most likely to derive from

Once a law is passed to codify an ethical requirement, the ethical aspect of the action is no longer important.

According to the theory of corporate social responsibility, any decision by the management of Precision Processing Corporation should consider how a proposed action may affect only the

A cost-benefit analysis is part of

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