Question 1

Corporations can be perceived as owing ethical duties to groups other than their shareholders.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Peak & Vale Accountants provides other firms with accounting services.Questions of what is ethical involve the extent to which Peak & Vale has

Accepted Answer

A) a legal duty beyond those duties mandated by ethics. 
B) an ethical duty beyond those duties mandated by law. 
C) any duty beyond those mandated by both ethics and the law. 
D) any duty when it is uncertain whether a legal duty exists. 
A) a legal duty beyond those duties mandated by ethics. 
B) an ethical duty beyond those duties mandated by law. 
C) any duty beyond those mandated by both ethics and the law. 
D) any duty when it is uncertain whether a legal duty exists.

Question 4

Halley,a lawyer on the staff of International Group,applies the utilitarian theory of ethics in business contexts.Utilitarianism focuses on

Accepted Answer

A) moral values. 
B) religious beliefs. 
C) the consequences of an action. 
D) the nature of an action. 
A) moral values. 
B) religious beliefs. 
C) the consequences of an action. 
D) the nature of an action.

Question 5

To assist in detecting illegal bribes,Cut Rite Contractors,Inc. ,and all U.S.companies,must

Accepted Answer

A) conceal financial records that reveal past bribes. 
B) keep records that "accurately and fairly" reflect financial activities. 
C) make bribes through third parties rather than directly to officials. 
D) permit payments to foreign officials that are unlawful in that country. 
A) conceal financial records that reveal past bribes. 
B) keep records that "accurately and fairly" reflect financial activities. 
C) make bribes through third parties rather than directly to officials. 
D) permit payments to foreign officials that are unlawful in that country.

Question 6

Bilt-Well Construction Corporation makes a side payment to a govern?ment 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

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

Accepted Answer

A) True 
 B)False

Question 8

Kennedy Capital Corporation provides other firms with funds to expand op?erations.If Kenney strictly complies with existing laws,the firm will

Accepted Answer

A) fulfill all business ethics obligations. 
B) fulfill no business ethics obligations. 
C) fulfill some business ethics obligations. 
D) not need to fulfill any business ethics obligations. 
A) fulfill all business ethics obligations. 
B) fulfill no business ethics obligations. 
C) fulfill some business ethics obligations. 
D) not need to fulfill any business ethics obligations.

Question 9

A common ethical dilemma faced by the management of General Holdings 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 10

The legality of an action is always clear.

Accepted Answer

A) True 
 B)False

Question 11

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 12

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

Accepted Answer

A) True 
 B)False

Question 13

Matchless Clothing Company buys clothing assembled by Nantra,Ltd. ,a for?eign firm that employs young children for long hours and low pay.Nantra's na?tion does not enforce its child labor laws.Human International Politics (HIP),a political activist organization,discovers Matchless's connection to Nantra and plans to reveal this information.Before HIP does so,however,Matchless publicly releases the informa?tion itself and announces that it is severing its relationship with Nantra.Matchless publicizes its action in its advertising,and the company's sales and profits increase,apparently as a direct result.Has Matchless acted unethically in any way? From an ethical perspective,is Matchless's conduct in this situation more important than whatever its mo?tive might be?

Accepted Answer

Matchless has not acted unethically in p

Question 14

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 15

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 16

Chuckie,president of DrinkUp Fresh Beverages,Inc. ,does not ap?ply utilitarianism to business ethical issues.One problem with utilitari?an?ism 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 17

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 18

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

Accepted Answer

A) True 
 B)False

Question 19

An action may be legal and ethical.

Accepted Answer

A) True 
 B)False

Question 20

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.

Exam 5: B: Ethics and Business Decision Making

Corporations can be perceived as owing ethical duties to groups other than their shareholders.

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

Peak & Vale Accountants provides other firms with accounting services.Questions of what is ethical involve the extent to which Peak & Vale has

Halley,a lawyer on the staff of International Group,applies the utilitarian theory of ethics in business contexts.Utilitarianism focuses on

To assist in detecting illegal bribes,Cut Rite Contractors,Inc. ,and all U.S.companies,must

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

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

Kennedy Capital Corporation provides other firms with funds to expand op?erations.If Kenney strictly complies with existing laws,the firm will

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

The legality of an action is always clear.

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

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

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

Chuckie,president of DrinkUp Fresh Beverages,Inc. ,does not ap?ply utilitarianism to business ethical issues.One problem with utilitari?an?ism is that it

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

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

A: Introduction to Law and Legal Reasoning

B: Introduction to Law and Legal Reasoning

C: Introduction to Law and Legal Reasoning

D: Introduction to Law and Legal Reasoning

A: Courts and Alternative Dispute Resolution

B: Courts and Alternative Dispute Resolution

A: Court Procedures

B: Court Procedures

A: Constitutional Authority to Regulate Business

B: Constitutional Authority to Regulate Business

A: Ethics and Business Decision Making

A: Intentional Torts and Privacy

B: Intentional Torts and Privacy

A: Negligence and Strict Liability

B: Negligence and Strict Liability

C: Negligence and Strict Liability

D: Negligence and Strict Liability

A: Intellectual Property and Internet Law

B: Intellectual Property and Internet Law

A: Criminal Law and Cyber Crimes

B: Criminal Law and Cyber Crime

A: Nature and Terminology

B: Nature and Terminology

C: Nature and Terminology

D: Nature and Terminology

A: Agreement in Traditional and E-Contracts

B: Agreement in Traditional and E-Contracts

A: Consideration

B: Consideration

A: Capacity and Legality

B: Capacity and Legality

A: Mistakes,fraud,and Voluntary Consent

B: Mistakes,fraud,and Voluntary Consent

A: The Statute of Frauds

B: The Statute of Frauds

A: Third Party Rights

B: Third Party Rights

A: Performance and Discharge

B: Performance and Discharge

A: Breach of Contract and Remedies

B: Breach of Contract and Remedies

A: The Formation of Sales and Lease Contracts

B: The Formation of Sales and Lease Contracts

C: The Formation of Sales and Lease Contracts

D: The Formation of Sales and Lease Contracts

A: Title,risk,and Insurable Interest

B: Title,risk,and Insurable Interest

A: Performance Breach of Sales Lease Contracts

B: Performance Breach of Sales Lease Contracts

A: Warranties and Product Liability

B: Warranties and Product Liability

A: International Law in a Global Economy

B: International Law in a Global Economy

A: The Function Creation of Negotiable Instruments

B: The Function Creation of Negotiable Instruments

C: The Function Creation of Negotiable Instruments

D: The Function Creation of Negotiable Instruments

A: Transferability and Holder in Due Course

B: Transferability and Holder in Due Course

A: Liability,defenses,and Discharge

B: Liability,defenses,and Discharge