Question 1

Chuckie, president of DrinkUp Fresh Beverages, Inc., does not apply utilitarianism to business ethical issues. One problem with utilitarianism is that it

Accepted Answer

A)  gives business profits priority over production costs. 
B)  ignores the practical costs of a given set of circumstances. 
C)  requires complex cost-benefit analyses of simple situations. 
D)  tends to justify human costs that many find unacceptable. 
A)  gives business profits priority over production costs. 
B)  ignores the practical costs of a given set of circumstances. 
C)  requires complex cost-benefit analyses of simple situations. 
D)  tends to justify human costs that many find unacceptable.

Question 2

Flexo Trucking Company transports hazardous waste. Garn is a Flexo driver, whom the company knows drives longer hours than federal regulations 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 3

One guideline to evaluating the ethics of a particular action is to "let your conscience be your guide."

Accepted Answer

A) True 
 B)False

Question 4

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 5

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)  to create an ethical code of conduct. 
B)  to discharge employees who do not 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)  to create an ethical code of conduct. 
B)  to discharge employees who do not 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 6

Bilt-Well Construction Corporation makes a side payment to a government official in Nigeria to obtain a contract. In the United States, this is

Accepted Answer

A)  illegal and unethical. 
B)  illegal but not unethical. 
C)  unethical but not illegal. 
D)  legal and ethical. 
A)  illegal and unethical. 
B)  illegal but not unethical. 
C)  unethical but not illegal. 
D)  legal and ethical.

Question 7

An action may be legal and ethical.

Accepted Answer

A) True 
 B)False

Question 8

Spencer Hydraulics Corporation's ethics committee is asked a business ethics question-should the firm bid low to obtain a contract that it knows it can fulfill only at a higher price A practical method to investigate and solve this question involves all of the following steps except

Accepted Answer

A)  absolution. 
B)  decision. 
C)  inquiry. 
D)  justification. 
A)  absolution. 
B)  decision. 
C)  inquiry. 
D)  justification.

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

Ethical codes of conduct can set the ethical tone of a firm.

Accepted Answer

A) True 
 B)False

Question 11

Ethics is the branch of philosophy that focuses on what constitutes right and wrong behavior.

Accepted Answer

A) True 
 B)False

Question 12

Bribery of foreign government officials is both an ethical and a legal issue.

Accepted Answer

A) True 
 B)False

Question 13

Business ethics is consistent only with short-run profit maximization.

Accepted Answer

A) True 
 B)False

Question 14

Some companies have set up confidential systems for employees to "raise red flags" about suspected unethical practices.

Accepted Answer

A) True 
 B)False

Question 15

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 16

Made4U Goods, Inc., asks its employees, many of whom are members of the National Machinists Union, to apply the utilitarian theory of ethics. This theory does not require

Accepted Answer

A)  a choice among alternatives to produce the maximum societal utility. 
B)  a determination of whom an action will affect. 
C)  an assessment of the effects of alternatives on those affected. 
D)  the acquiring of the means of production by workers. 
A)  a choice among alternatives to produce the maximum societal utility. 
B)  a determination of whom an action will affect. 
C)  an assessment of the effects of alternatives on those affected. 
D)  the acquiring of the means of production by workers.

Question 17

Restricting the bonuses that are paid to executives is unethical.

Accepted Answer

A) True 
 B)False

Question 18

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)  practically no situations. 
A)  all situations. 
B)  many situations. 
C)  no situations. 
D)  practically no situations.

Question 19

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 20

A business firm's profits may suffer if the firm is not a "good corporate citizen."

Accepted Answer

A) True 
 B)False

Exam 5: Ethics and Business Decision Making

Chuckie, president of DrinkUp Fresh Beverages, Inc., does not apply utilitarianism to business ethical issues. One problem with utilitarianism is that it

One guideline to evaluating the ethics of a particular action is to "let your conscience be your guide."

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

Bilt-Well Construction Corporation makes a side payment to a government official in Nigeria to obtain a contract. In the United States, this is

An action may be legal and ethical.

Spencer Hydraulics Corporation's ethics committee is asked a business ethics question-should the firm bid low to obtain a contract that it knows it can fulfill only at a higher price A practical method to investigate and solve this question involves all of the following steps except

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

Ethical codes of conduct can set the ethical tone of a firm.

Ethics is the branch of philosophy that focuses on what constitutes right and wrong behavior.

Bribery of foreign government officials is both an ethical and a legal issue.

Business ethics is consistent only with short-run profit maximization.

Some companies have set up confidential systems for employees to "raise red flags" about suspected unethical practices.

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

Made4U Goods, Inc., asks its employees, many of whom are members of the National Machinists Union, to apply the utilitarian theory of ethics. This theory does not require

Restricting the bonuses that are paid to executives is unethical.

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

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

A business firm's profits may suffer if the firm is not a "good corporate citizen."

Introduction to Law and Legal Reasoning

Courts and Alternative Dispute Resolution

Court Procedures

Constitutional Authority to Regulate Business

Intentional Torts and Privacy

Negligence and Strict Liability

Intellectual Property and Internet Law

Criminal Law and Cyber Crime

Nature and Terminology

Agreement in Traditional and E-Contracts

Consideration

Capacity and Legality

Mistakes, Fraud, and Voluntary Consent

The Statute of Frauds

Third Party Rights

Performance and Discharge

Breach of Contract and Remedies

The Formation of Sales and Lease Contracts

Title, Risk, and Insurable Interest

Performance Breach of Sales Lease Contracts

Warranties and Product Liability

International Law in a Global Economy

The Function Creation of Negotiable Instruments

Transferability and Holder in Due Course

Liability, Defenses, and Discharge

Checks and Banking in the Digital Age

Creditors Rights and Remedies

Secured Transactions

Bankruptcy Law

Mortgages Foreclosures After the Recession

Agency Formation and Duties

Agency Liability and Termination

Employment, Immigration, and Labor Law

Employment Discrimination

Sole Proprietorships and Franchises

Partnerships and Limited Liability Partnerships

Limited Liability Companies Special Business Forms

Corporate Formation and Financing

Corporate Directors, Officers, Shareholders

Corporate Merger, Consolidation, Termination

Securities Law Corporate Governance

Law for Small Business

Administrative Law

Consumer Law

Environmental Law

Antitrust Law

Professional Liaility and Accountability

Personal Property and Bailments

Real Property Landlord-Tenant Relationships

Insurance

Wills and Trusts

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