Question 1

Julie is sales manager for Kelso’s Concrete & Stone Products, Inc. In applying ethical principles to the business of the firm, Kelso’s and Julie will most likely evaluate

Accepted Answer

A) what duties and responsibilities should exist for the business. 
B) how to maximize profits in the short run 
C) how to maximize profits in the long run. 
D) marketing campaigns to counter potential bad publicity. 
A) what duties and responsibilities should exist for the business. 
B) how to maximize profits in the short run 
C) how to maximize profits in the long run. 
D) marketing campaigns to counter potential bad publicity. A

Question 2

Brewster, the chief executive officer of Cog & Gear Lubricants Corporation, wants to en-sure that Cog & Gear's activities are legal and ethical. The best course for Brewster and Cog & Gear is to act

Accepted Answer

A)  in good faith. 
B)  out of ignorance of the law. 
C)  ​with regard for the firm's shareholders only. 
D)  in their own self-interest. 
A)  in good faith. 
B)  out of ignorance of the law. 
C)  ​with regard for the firm's shareholders only. 
D)  in their own self-interest. A

Question 3

Mary works in the accounting department of New Trends Sales Company. Her job includes reviewing expense reports submitted by management and employees. In determining which expenses are "padding," Mary should apply to management

Accepted Answer

A)  a different set of principles from those that apply to employees. 
B)  the same ethical principles that apply to employees. 
C)  those principles that produce the most favorable financial outcome. 
D)  whatever result is in the best interest of New Trends. 
A)  a different set of principles from those that apply to employees. 
B)  the same ethical principles that apply to employees. 
C)  those principles that produce the most favorable financial outcome. 
D)  whatever result is in the best interest of New Trends. B

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Dyan, the owner of Expert Restoration Services, 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

Accepted Answer

A)  complieswith religious principles. 
B)  affects the rights of others. 
C)  causes consequences that would follow if everyone acted the same way. 
D)  supports the right to make a profit. 
A)  complieswith religious principles. 
B)  affects the rights of others. 
C)  causes consequences that would follow if everyone acted the same way. 
D)  supports the right to make a profit.

Question 6

If people merely comply with the law, they are acting at the lowest ethical level society will tolerate.

Accepted Answer

A) True 
 B)False

Question 7

Flexo Trucking Company transports hazard-ous waste. Garn is a Flexo driver, whom the company knows drives longer hours than federal regula-tions permit. One night, Garn exceeds the limit and has an accident. Spilled chemicals contaminate Hill City’s water source, forcing the residents to move away. Flexo acted unethically because

Accepted Answer

A) Flexo showed reckless disregard for Hill City’s residents and others. 
B) Garn exceeded the federal time limit. 
C) harm was caused by an unfortunate accident. 
D) Hill City should have better protected its water source. 
A) Flexo showed reckless disregard for Hill City’s residents and others. 
B) Garn exceeded the federal time limit. 
C) harm was caused by an unfortunate accident. 
D) Hill City should have better protected its water source.

Question 8

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

Accepted Answer

A)  all situations. 
B)  many situations. 
C)  ​no situations. 
D)  few situations. 
A)  all situations. 
B)  many situations. 
C)  ​no situations. 
D)  few situations.

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. 
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.

Question 10

Precision Engineering Inc., like other corporations, is subject to laws that are broad in their purpose and their scope. Compliance with these laws 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 11

Management's behavior sets the ethical tone of a firm.

Accepted Answer

A) True 
 B)False

Question 12

The concept of corporate social responsibility is imposed on corporations by law.

Accepted Answer

A) True 
 B)False

Question 13

Religious rules generally are absolute with respect to the behavior of their adherents.

Accepted Answer

A) True 
 B)False

Question 14

Companies are required to set up confidential systems so that employees can "raise red flags" about suspected illegal or unethical accounting practices.

Accepted Answer

A) True 
 B)False

Question 15

Ethical reasoning is the process through which an individual links his or her moral convictions or ethical standards to the particular situation at hand.

Accepted Answer

A) True 
 B)False

Question 16

Unless a corporation violates a law, its actions do not raise questions about corporate ethics.

Accepted Answer

A) True 
 B)False

Question 17

An action may be legal but not ethical.

Accepted Answer

A) True 
 B)False

Question 18

In deciding questions of corporate social responsibility, Waste Disposal & Recycling, Inc., is concerned with

Accepted Answer

A)  how the corporation can best fulfill any ethical duty to society. 
B)  the effect on corporate profits of ignoring any ethical duty to society. 
C)  whether the corporation owes any ethical duty to society. 
D)  all of the choices. 
A)  how the corporation can best fulfill any ethical duty to society. 
B)  the effect on corporate profits of ignoring any ethical duty to society. 
C)  whether the corporation owes any ethical duty to society. 
D)  all of the choices.

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Invested Capital Corporation provides other firms with funds to expand op-erations.If InvestedCapital strictly complies with existing laws, the firm'sbusiness ethics obligations will

Accepted Answer

A)  be entirely met. 
B)  not be met. 
C)  be partially met. 
D)  not need to be met. 
A)  be entirely met. 
B)  not be met. 
C)  be partially met. 
D)  not need to be met.

Exam 9: Business Ethics

Julie is sales manager for Kelso’s Concrete & Stone Products, Inc. In applying ethical principles to the business of the firm, Kelso’s and Julie will most likely evaluate

Brewster, the chief executive officer of Cog & Gear Lubricants Corporation, wants to en-sure that Cog & Gear's activities are legal and ethical. The best course for Brewster and Cog & Gear is to act

Mary works in the accounting department of New Trends Sales Company. Her job includes reviewing expense reports submitted by management and employees. In determining which expenses are "padding," Mary should apply to management

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

Dyan, the owner of Expert Restoration Services, 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

If people merely comply with the law, they are acting at the lowest ethical level society will tolerate.

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

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

Precision Engineering Inc., like other corporations, is subject to laws that are broad in their purpose and their scope. Compliance with these laws is not always sufficient to determine "right" behavior because

Management's behavior sets the ethical tone of a firm.

The concept of corporate social responsibility is imposed on corporations by law.

Religious rules generally are absolute with respect to the behavior of their adherents.

Companies are required to set up confidential systems so that employees can "raise red flags" about suspected illegal or unethical accounting practices.

Ethical reasoning is the process through which an individual links his or her moral convictions or ethical standards to the particular situation at hand.

Unless a corporation violates a law, its actions do not raise questions about corporate ethics.

An action may be legal but not ethical.

In deciding questions of corporate social responsibility, Waste Disposal & Recycling, Inc., is concerned with

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

Invested Capital Corporation provides other firms with funds to expand op-erations.If InvestedCapital strictly complies with existing laws, the firm'sbusiness ethics obligations will

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