Question 1

Some of the problems raised by corporate reward structures include:

Accepted Answer

A)  focusing on long-term rather than short-term profitability. 
B)  the interests of managers always being aligned with the long-range interests of the company. 
C)  managers being inclined sometimes to act irresponsibly without an eye to legal trouble that may occur in the future. 
D)  firms sacrificing the present for the future and thereby promoting long-term allocational inefficiency. 
A)  focusing on long-term rather than short-term profitability. 
B)  the interests of managers always being aligned with the long-range interests of the company. 
C)  managers being inclined sometimes to act irresponsibly without an eye to legal trouble that may occur in the future. 
D)  firms sacrificing the present for the future and thereby promoting long-term allocational inefficiency.

Question 2

The Sarbanes-Oxley Act requires that:

Accepted Answer

A)  public corporations disclose whether they have adopted a code of ethics for senior financial officers. 
B)  directors are provided with lower incentives to ensure their corporations are not breaking the law. 
C)  privately traded corporations have board audit committees comprising only of internal directors. 
D)  special committees of the board be assigned special areas of concern. 
A)  public corporations disclose whether they have adopted a code of ethics for senior financial officers. 
B)  directors are provided with lower incentives to ensure their corporations are not breaking the law. 
C)  privately traded corporations have board audit committees comprising only of internal directors. 
D)  special committees of the board be assigned special areas of concern.

Question 3

"Which course of action does the most good and the least harm?" This is one of the questions to be asked by managers while making an ethical decision according to the decision-making model drawn heavily from the thoughts of Joseph L.Badaracco Jr.Discuss the nature and purpose of this question.

Accepted Answer

The question,"Which course of action doe

Question 4

Suppose you work for an apparel manufacturing company that has a factory in a small rural town in Michigan.The apparel manufacturing factory is the town's primary source of income.The company has placed you in charge of investigating the firm's decision to move the factory to El Salvador.If the company moves its manufacturing to El Salvador,it can produce apparel at a much lower cost.Explain what a modern rights theorist would consider under these circumstances.

Accepted Answer

Student's responses may vary.A modern ri

Question 5

A corporate manager looking for ethical guidance that neither the law nor social norms accounts for must rely on:

Accepted Answer

A)  a strategy that will maximize profits. 
B)  his or her individual conscience. 
C)  the advice of other managers. 
D)  his or her system of delegation to subordinates. 
A)  a strategy that will maximize profits. 
B)  his or her individual conscience. 
C)  the advice of other managers. 
D)  his or her system of delegation to subordinates.

Question 6

Which of the following is true about the modern rights theorists?

Accepted Answer

A)  They hold that duties are absolute. 
B)  They believe that actions like lying and killing can never be morally acceptable. 
C)  They must determine what fundamental rights are and how they are ranked in importance. 
D)  They argue for a just distribution of society's resources. 
A)  They hold that duties are absolute. 
B)  They believe that actions like lying and killing can never be morally acceptable. 
C)  They must determine what fundamental rights are and how they are ranked in importance. 
D)  They argue for a just distribution of society's resources.

Question 7

It is unlikely that greater control by shareholders will lead to greater corporate social responsibility because:

Accepted Answer

A)  many shareholders are motivated by profit maximization and are unlikely to approve corporate actions contrary to that end. 
B)  many shareholders have access to the information necessary to closely monitor the noneconomic performance of a company. 
C)  there is a definite chance that the values of "ethical" shareholders would be representative of society as a whole. 
D)  shareholders will have the power to adopt resolutions binding the corporate managers. 
A)  many shareholders are motivated by profit maximization and are unlikely to approve corporate actions contrary to that end. 
B)  many shareholders have access to the information necessary to closely monitor the noneconomic performance of a company. 
C)  there is a definite chance that the values of "ethical" shareholders would be representative of society as a whole. 
D)  shareholders will have the power to adopt resolutions binding the corporate managers.

Question 8

The new federal sentencing guidelines implemented as part of Sarbanes-Oxley:

Accepted Answer

A)  apply sanctions to both individual board members as well as the corporation itself. 
B)  assign specific oversight responsibilities to directors. 
C)  are designed to give the management immunity. 
D)  call for special committees of the board to be assigned similar functions. 
A)  apply sanctions to both individual board members as well as the corporation itself. 
B)  assign specific oversight responsibilities to directors. 
C)  are designed to give the management immunity. 
D)  call for special committees of the board to be assigned similar functions.

Question 9

According to the decision-making model that is drawn heavily from the thoughts of Joseph L.Badaracco Jr.,the question,"Which course of action does the most good and the least harm?" is utilitarian if the focus is narrowed to the manager's business organization.

Accepted Answer

A) True 
 B)False

Question 10

Explain the difference between deontological and teleological ethical theories.Give an example of each.

Accepted Answer

Students' responses may vary.Deontologic

Question 11

The Sarbanes-Oxley Act:

Accepted Answer

A)  raises the penalties for illegal behavior. 
B)  gives corporations greater freedom from government control. 
C)  adopts the theory of allocational efficiency. 
D)  motivates executives to inflate reports of corporate profits. 
A)  raises the penalties for illegal behavior. 
B)  gives corporations greater freedom from government control. 
C)  adopts the theory of allocational efficiency. 
D)  motivates executives to inflate reports of corporate profits.

Question 12

The theory that calls for a fair allocation of society's benefits and burdens among all members of society is _____.

Accepted Answer

A)  profit maximization 
B)  Kantianism 
C)  the modern rights theory 
D)  the justice theory 
A)  profit maximization 
B)  Kantianism 
C)  the modern rights theory 
D)  the justice theory

Question 13

There is no guaranty that the values of "ethical" shareholders would be representative of society as a whole.

Accepted Answer

A) True 
 B)False

Question 14

Under utilitarianism,an action is ethical only if the benefits to society outweigh its costs.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following statements is true of conscious capitalists?

Accepted Answer

A)  Conscious capitalists distinguish making profits from ethical behavior. 
B)  Conscious capitalists do not fail to meet an important shareholder demand even if they fail to deliver strong financial results. 
C)  Conscious capitalists do not have a profit motivation. 
D)  Conscious capitalists believe that business is good because it creates economic value. 
A)  Conscious capitalists distinguish making profits from ethical behavior. 
B)  Conscious capitalists do not fail to meet an important shareholder demand even if they fail to deliver strong financial results. 
C)  Conscious capitalists do not have a profit motivation. 
D)  Conscious capitalists believe that business is good because it creates economic value.

Question 16

The problem with looking at values that find wide acceptance as a guide to ethical corporate behavior is that:

Accepted Answer

A)  modern life holds a diversity of conflicting ethical views. 
B)  most widely-accepted values are uninformed. 
C)  companies will always look to profit maximization over anything else. 
D)  culture has no effect on the ethical attitudes of business managers in today's global world. 
A)  modern life holds a diversity of conflicting ethical views. 
B)  most widely-accepted values are uninformed. 
C)  companies will always look to profit maximization over anything else. 
D)  culture has no effect on the ethical attitudes of business managers in today's global world.

Question 17

Under Immanuel Kant's "categorical imperative," _____.

Accepted Answer

A)  individuals should judge an action by applying it universally 
B)  individuals should manipulate others for their self-interest 
C)  the teleological ethical theory is dominant 
D)  the consequences of a decision are focused on deciding if it is ethical 
A)  individuals should judge an action by applying it universally 
B)  individuals should manipulate others for their self-interest 
C)  the teleological ethical theory is dominant 
D)  the consequences of a decision are focused on deciding if it is ethical

Question 18

Corporate codes of ethical conduct:

Accepted Answer

A)  effectively deter unethical behavior. 
B)  are sometimes viewed as thinly disguised attempts to mislead the public into thinking that the company behaves ethically. 
C)  accurately reflect the values of society. 
D)  tend to expressly publish policies that deal directly with corruption to avert legal measures that might impose severe constraints. 
A)  effectively deter unethical behavior. 
B)  are sometimes viewed as thinly disguised attempts to mislead the public into thinking that the company behaves ethically. 
C)  accurately reflect the values of society. 
D)  tend to expressly publish policies that deal directly with corruption to avert legal measures that might impose severe constraints.

Question 19

Which of the following scenarios best exemplifies groupthink?

Accepted Answer

A)  Ten officers of Jekyll Inc. are planning a business enterprise they know to be highly profitable. Six know the plan to be illegal. Nevertheless, they do not voice their concerns, but go along with the team's plan. 
B)  Four officers of Bisk Corp. devise a highly profitable plan. David, a manager, points out to the group that the plan will likely get the company a high amount of negative publicity. David states that he will not sanction the team's plan. 
C)  Ned, Oliver, and Phoebe draft plans for a new software company. They have all thoroughly researched their plans and no one has any criticisms or concerns. 
D)  Barry, Ralph, and Ann are subordinates of a firm who report problems to their top managers without any fear. 
A)  Ten officers of Jekyll Inc. are planning a business enterprise they know to be highly profitable. Six know the plan to be illegal. Nevertheless, they do not voice their concerns, but go along with the team's plan. 
B)  Four officers of Bisk Corp. devise a highly profitable plan. David, a manager, points out to the group that the plan will likely get the company a high amount of negative publicity. David states that he will not sanction the team's plan. 
C)  Ned, Oliver, and Phoebe draft plans for a new software company. They have all thoroughly researched their plans and no one has any criticisms or concerns. 
D)  Barry, Ralph, and Ann are subordinates of a firm who report problems to their top managers without any fear.

Question 20

Under the allocational efficiency theory,the primary objective of a business corporation is to:

Accepted Answer

A)  maximize profits. 
B)  minimize fraudulent activities. 
C)  maximize corporate social responsibility. 
D)  minimize criticism. 
A)  maximize profits. 
B)  minimize fraudulent activities. 
C)  maximize corporate social responsibility. 
D)  minimize criticism.

Exam 3: Business Ethics and Corporate Social Responsibility

Some of the problems raised by corporate reward structures include:

The Sarbanes-Oxley Act requires that:

"Which course of action does the most good and the least harm?" This is one of the questions to be asked by managers while making an ethical decision according to the decision-making model drawn heavily from the thoughts of Joseph L.Badaracco Jr.Discuss the nature and purpose of this question.

A corporate manager looking for ethical guidance that neither the law nor social norms accounts for must rely on:

Which of the following is true about the modern rights theorists?

It is unlikely that greater control by shareholders will lead to greater corporate social responsibility because:

The new federal sentencing guidelines implemented as part of Sarbanes-Oxley:

According to the decision-making model that is drawn heavily from the thoughts of Joseph L.Badaracco Jr.,the question,"Which course of action does the most good and the least harm?" is utilitarian if the focus is narrowed to the manager's business organization.

Explain the difference between deontological and teleological ethical theories.Give an example of each.

The Sarbanes-Oxley Act:

The theory that calls for a fair allocation of society's benefits and burdens among all members of society is _____.

There is no guaranty that the values of "ethical" shareholders would be representative of society as a whole.

Under utilitarianism,an action is ethical only if the benefits to society outweigh its costs.

Which of the following statements is true of conscious capitalists?

The problem with looking at values that find wide acceptance as a guide to ethical corporate behavior is that:

Under Immanuel Kant's "categorical imperative," _____.

Corporate codes of ethical conduct:

Which of the following scenarios best exemplifies groupthink?

Under the allocational efficiency theory,the primary objective of a business corporation is to:

Law, Legal Reasoning, and the Legal Profession

Dispute Settlement

Business and the Constitution

Crimes

Intentional Torts

Negligence and Strict Liability

Licensing and Intellectual Propertypart Two Contracts

The Nature and Origins of Contracts

Creating a Contract: Offers

Creating a Contract: Acceptances

Consideration

Capacity to Contract

Voluntary Consent

Illegality

The Form and Meaning of Contracts

Third Parties Contract Rights

Performance and Remediespart Three Sales

Formation and Terms of Sales Contracts

Warranties and Product Liability

Performance of Sales Contracts

Remedies for Breach of Sales Contractspart Four Agency and Employment

The Agency Relationship-Creation, duties, and Termination

Liability of Principals and Agents to Third Parties

Employment Laws-Part Five Business Organizations

Which Form of Business Organization

Partnerships

Formation and Termination of Corporations

Management of the Corporate Business

Financing the Corporation and the Role of the Shareholders

Securities Regulation

Legal Liability of Accountantspart Six Property

Personal Property and Bailments

Real Property

Landlord and Tenant

Estates and Trusts

Insurance-Part Seven Commercial Paper

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Fund Transfers-Part Eight Credit Transactions

Introduction to Security

Security Interests in Personal Property

Bankruptcy-Part Nine Government Regulation

The Antitrust Laws

Consumer Protection Laws

Environmental Regulation

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