Question 1

Focusing on a firm's short-term profits without considering the company's long-term needs may be acting unethically.

Accepted Answer

A) True 
 B)False

Question 2

Business ethics is not more complicated than personal ethics.

Accepted Answer

A) True 
 B)False

Question 3

Hailey,a lawyer on the staff of International Group,always considers the consequences of an action rather than the nature of the action itself when making ethical decisions in a business context.Hailey is applying

Accepted Answer

A) the utilitarian theory of ethics in business contexts. 
B) religious beliefs in business contexts. 
C) Kantian ethics in business contexts. 
D) the principle of rights theory of ethics in business contexts. 
A) the utilitarian theory of ethics in business contexts. 
B) religious beliefs in business contexts. 
C) Kantian ethics in business contexts. 
D) the principle of rights theory of ethics in business contexts.

Question 4

Business ethics focuses on ethical behavior in the business world.

Accepted Answer

A) True 
 B)False

Question 5

Applied Business Corporation makes and markets its products nationwide.Under the stakeholder approach,to be considered socially responsible when making a business decision,Applied must take into account the needs of

Accepted Answer

A) its consumers,the community,and society only. 
B) its employees and owners only. 
C) its employees,owners,consumers,the community,and society. 
D) no one. 
A) its consumers,the community,and society only. 
B) its employees and owners only. 
C) its employees,owners,consumers,the community,and society. 
D) no one.

Question 6

Corporations can be good citizens by promoting goals that society deems worthwhile.

Accepted Answer

A) True 
 B)False

Question 7

Acting in good faith gives a business firm a better chance of defending its actions in court.

Accepted Answer

A) True 
 B)False

Question 8

Carrie Ann works at Paper Products,Inc.She considers taking home a few sheets of stationery so she can write letters to her ailing grandmother.Since Paper Products produces thousands of sheets of stationery every day no one will miss the few sheets she takes and company profits will not be affected.Carrie Ann then considers what would happen if every employee took some stationery home and decides not to take any.Carrie Ann is being influenced by

Accepted Answer

A) the categorical imperative. 
B) the principle of rights. 
C) a cost-benefit analysis. 
D) outcome-based ethics. 
A) the categorical imperative. 
B) the principle of rights. 
C) a cost-benefit analysis. 
D) outcome-based ethics.

Question 9

Julia,the head executive of Fine Woolen Sweaters,Inc.,is a committed Christian who strongly adheres to the Ten Commandments.One of Julia's employees is found to be stealing sweaters and giving them to a local homeless shelter.Julia is likely to

Accepted Answer

A) punish the employee for stealing even though the employee's motive was benevolent. 
B) view the employee's actions as justified because the employee was clothing the poor. 
C) contribute more sweaters to the homeless shelter. 
D) gently reprimand the employee without suggesting that the employee's actions were unethical. 
A) punish the employee for stealing even though the employee's motive was benevolent. 
B) view the employee's actions as justified because the employee was clothing the poor. 
C) contribute more sweaters to the homeless shelter. 
D) gently reprimand the employee without suggesting that the employee's actions were unethical.

Question 10

Ethics is concerned with the fairness or justness of an action.

Accepted Answer

A) True 
 B)False

Question 11

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 12

Ergonomic Corporation convenes its employees for its managers to announce (1) a new company-wide ethical code of conduct,(2) an ad campaign to publicize the new code,and (3) the discharge of employees who do not adhere to the code.One of the most effective ways to set a tone of ethical behavior within a business organization is

Accepted Answer

A) tocreate an ethical code of conduct. 
B) todischarge employees who create the appearance of impropriety. 
C) to post a marketing campaign online touting the firm's ethical tone. 
D) for management to direct employees to "do as we say,not as we do." 
A) tocreate an ethical code of conduct. 
B) todischarge employees who create the appearance of impropriety. 
C) to post a marketing campaign online touting the firm's ethical tone. 
D) for management to direct employees to "do as we say,not as we do."

Question 13

PriceLess Retail Corporation specifies that its employees should not use social media to damage the company,harm another person's reputation,or violate company policies.An employee who violates these rules may be subject to discipline and could be fired.According to the National Labor Relations Board,this social media policy

Accepted Answer

A) violates federal labor law. 
B) is too lenient toward employees. 
C) is too stringent toward management. 
D) is necessary to prevent inaccurate statements from being spread across the Internet. 
A) violates federal labor law. 
B) is too lenient toward employees. 
C) is too stringent toward management. 
D) is necessary to prevent inaccurate statements from being spread across the Internet.

Question 14

Destiny and Eduardo,investors in Competitive Acquisitions Corporation,are dissatisfied with the profit-maximization theory of corporate objectives.These investors and others who look beyond profits and dividends may consider the triple bottom line,which does not include a corporation's

Accepted Answer

A) impact on people. 
B) profits. 
C) impact on the planet. 
D) congressional lobbying activities. 
A) impact on people. 
B) profits. 
C) impact on the planet. 
D) congressional lobbying activities.

Question 15

A common ethical dilemma faced by the management of Spencer Hydraulics Corporation involves the effect that its decision will have on

Accepted Answer

A) one group as opposed to another. 
B) the firm's competitors. 
C) the government. 
D) the U.S.Chamber of Commerce. 
A) one group as opposed to another. 
B) the firm's competitors. 
C) the government. 
D) the U.S.Chamber of Commerce.

Question 16

Recreation & Sports Equipment Corporation sells a product that is capable of seriously injuring consumers who misuse it in a foreseeable way.Does the firm owe an ethical duty to take this product off the market? What con-flicts might arise if the firm stops selling this product?

Accepted Answer

Ethical behavior can sometimes generate

Question 17

Straitway Company encourages its managers to behave ethically,reasoning that the employees will take their cues from management.One of the most important ways to create and maintain an ethical behavior workplace is for management to

Accepted Answer

A) demonstrate a commitment to ethical decision making. 
B) discreetly engage in unethical or illegal acts. 
C) look the other way when an employee engages in an unethical act. 
D) direct employees to "do as we say,not as we do." 
A) demonstrate a commitment to ethical decision making. 
B) discreetly engage in unethical or illegal acts. 
C) look the other way when an employee engages in an unethical act. 
D) direct employees to "do as we say,not as we do."

Question 18

Many companies have provided guidelines about what is appropriate when making posts on social media accounts.

Accepted Answer

A) True 
 B)False

Question 19

Bob,research manager for CornAgri Products,Inc.,ap-plies utilitarian eth-ics to determine that an action is morally cor-rect when it produces the greatest good for

Accepted Answer

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

Question 20

An ethical code of conduct typically outlines a company's policies.

Accepted Answer

A) True 
 B)False

Exam 3: Ethics and Business Decision Making

Focusing on a firm's short-term profits without considering the company's long-term needs may be acting unethically.

Business ethics is not more complicated than personal ethics.

Hailey,a lawyer on the staff of International Group,always considers the consequences of an action rather than the nature of the action itself when making ethical decisions in a business context.Hailey is applying

Business ethics focuses on ethical behavior in the business world.

Applied Business Corporation makes and markets its products nationwide.Under the stakeholder approach,to be considered socially responsible when making a business decision,Applied must take into account the needs of

Corporations can be good citizens by promoting goals that society deems worthwhile.

Acting in good faith gives a business firm a better chance of defending its actions in court.

Julia,the head executive of Fine Woolen Sweaters,Inc.,is a committed Christian who strongly adheres to the Ten Commandments.One of Julia's employees is found to be stealing sweaters and giving them to a local homeless shelter.Julia is likely to

Ethics is concerned with the fairness or justness of an action.

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

Destiny and Eduardo,investors in Competitive Acquisitions Corporation,are dissatisfied with the profit-maximization theory of corporate objectives.These investors and others who look beyond profits and dividends may consider the triple bottom line,which does not include a corporation's

A common ethical dilemma faced by the management of Spencer Hydraulics Corporation involves the effect that its decision will have on

Recreation & Sports Equipment Corporation sells a product that is capable of seriously injuring consumers who misuse it in a foreseeable way.Does the firm owe an ethical duty to take this product off the market? What con-flicts might arise if the firm stops selling this product?

Straitway Company encourages its managers to behave ethically,reasoning that the employees will take their cues from management.One of the most important ways to create and maintain an ethical behavior workplace is for management to

Many companies have provided guidelines about what is appropriate when making posts on social media accounts.

Bob,research manager for CornAgri Products,Inc.,ap-plies utilitarian eth-ics to determine that an action is morally cor-rect when it produces the greatest good for

An ethical code of conduct typically outlines a company's policies.

The Legal and Constitutional Environment of Business

Courts and Alternative Dispute Resolution

Tort Law

Intellectual Property

Internet Law,social Media,and Privacy

Criminal Law and Cyber Crime

Nature and Classification

Agreement in Traditional and E-Contracts

Consideration, capacity, and Legality

Defenses to Contract Enforceability

Third Party Rights and Discharge

Breach and Remedies

The Formation of Sales and Lease Contracts

Performance and Breach of Sales and Lease Contracts

Warranties and Product Liability

Negotiability, transferability, and Liability

Checks and Banking in the Digital Age

Secured Transactions

Creditors Rights and Bankruptcy

Agency Relationships

Employment Law

Sole Proprietorships, partnerships, and Limited Liability Companies

Corporate Formation, financing, and Termination

Corporate Directors, officers, and Shareholders

Investor Protection, insider Trading, and Corporate Governance

Personal Property and Bailments

Real Property and Landlord-Tenant Law

Insurance, wills, and Trusts

Liability of Accountants and Other Professionals

International Law in a Global Economy

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