Question 1

Specific, reform-based proposals for changes in management structure include:

Accepted Answer

A)  government representation on the corporate board of directors. 
B)  government representation in corporate executive management. 
C)  licensing requirements for holding certain corporate positions. 
D)  outsourcing corporate executive management positions. 
A)  government representation on the corporate board of directors. 
B)  government representation in corporate executive management. 
C)  licensing requirements for holding certain corporate positions. 
D)  outsourcing corporate executive management positions.

Question 2

According to the decision-making model that is drawn heavily from the thoughts of Joseph L. Badaracco Jr., the question, "Which course of action is feasible?" recognizes that when a particular option is believed to be feasible, the manager's work is considered done.

Accepted Answer

A) True 
 B)False

Question 3

_____ theory is known as deontological ethical theory.

Accepted Answer

A)  Rights 
B)  Obligations 
C)  Teleological 
D)  Consequence-based 
A)  Rights 
B)  Obligations 
C)  Teleological 
D)  Consequence-based

Question 4

"Act only on that maxim whereby at the same time you can will that it shall become universal law" is a component of Immanuel Kant's _____.

Accepted Answer

A)  categorical denial 
B)  situational directive 
C)  categorical imperative 
D)  situational inquisition 
A)  categorical denial 
B)  situational directive 
C)  categorical imperative 
D)  situational inquisition

Question 5

Corporations sometimes consciously choose to break the law if it poses acceptable risks such as relatively light penalties for violation, if the benefits gained by doing so are great.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following statements best describes the phenomenon called risky shift?

Accepted Answer

A)  Groups do not accept higher risks than individuals. 
B)  A corporation shifts its risk onto its customers. 
C)  A group of people who must reach a consensus on an acceptable level of risk often decide on a level of risk higher than the risk they would accept as individuals. 
D)  The decisions made by a team of managers may have lower levels of risk and may create lesser legal problems than decisions made by an isolated manager. 
A)  Groups do not accept higher risks than individuals. 
B)  A corporation shifts its risk onto its customers. 
C)  A group of people who must reach a consensus on an acceptable level of risk often decide on a level of risk higher than the risk they would accept as individuals. 
D)  The decisions made by a team of managers may have lower levels of risk and may create lesser legal problems than decisions made by an isolated manager.

Question 7

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 8

According to the justice theory, _____.

Accepted Answer

A)  the decision makers' choices are to be guided by fairness and impartiality 
B)  the focus is on the process of decision making, not the outcome 
C)  society's benefits and burdens should fall on only certain segments of society 
D)  the morality of any action is determined by applying the categorical imperative 
A)  the decision makers' choices are to be guided by fairness and impartiality 
B)  the focus is on the process of decision making, not the outcome 
C)  society's benefits and burdens should fall on only certain segments of society 
D)  the morality of any action is determined by applying the categorical imperative

Question 9

Which of the following is a reason why large corporations have the ability to influence legislation?

Accepted Answer

A)  There are no limits on the law's ability to control irresponsible corporate behavior. 
B)  Their size, resources, and sophistication give them the capability to purchase this ability. 
C)  Corporate managers are always aware of the effects of their products or production processes. 
D)  The state legislatures cannot enact hostile regulatory legislation. 
A)  There are no limits on the law's ability to control irresponsible corporate behavior. 
B)  Their size, resources, and sophistication give them the capability to purchase this ability. 
C)  Corporate managers are always aware of the effects of their products or production processes. 
D)  The state legislatures cannot enact hostile regulatory legislation.

Question 10

In determining whether a decision is ethical, teleological ethical theories focus on the consequences of the decision.

Accepted Answer

A) True 
 B)False

Question 11

Rights theory is known as a teleological ethical theory.

Accepted Answer

A) True 
 B)False

Question 12

Corporate social responsibility advocates argue that ethical guidance for corporate managers may come from:

Accepted Answer

A)  corporate cultures that hold high concern for leading with fear. 
B)  corporate or industry codes of conduct. 
C)  corporations giving preference to their employees over other constituencies. 
D)  corporations promoting avoidance behavior among employees. 
A)  corporate cultures that hold high concern for leading with fear. 
B)  corporate or industry codes of conduct. 
C)  corporations giving preference to their employees over other constituencies. 
D)  corporations promoting avoidance behavior among employees.

Question 13

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

Students' responses may vary. A modern r

Question 14

Critics of capitalism and corporate America increasingly argue that corporations should follow socially responsible standards higher than that imposed by law.

Accepted Answer

A) True 
 B)False

Question 15

The problem with the view that a corporation should attempt to act in the best interests of all of its various constituencies is that:

Accepted Answer

A)  this tactic ignores the corporation's suppliers. 
B)  corporate managers often have a better sense of what is right. 
C)  the values of these constituencies may conflict. 
D)  local communities will not benefit from these values. 
A)  this tactic ignores the corporation's suppliers. 
B)  corporate managers often have a better sense of what is right. 
C)  the values of these constituencies may conflict. 
D)  local communities will not benefit from these values.

Question 16

Which of the following is a teleological theory based on the laissez-faire theory of capitalism?

Accepted Answer

A)  Act utilitarianism 
B)  Profit maximization 
C)  Rule utilitarianism 
D)  Difference principle 
A)  Act utilitarianism 
B)  Profit maximization 
C)  Rule utilitarianism 
D)  Difference principle

Question 17

Which of the following is true of Organization for Economic Cooperation and Development (OECD) reports?

Accepted Answer

A)  They coordinate domestic and international policies of developing countries. 
B)  They state that most codes of conduct tend to speak in positive terms, such as, a commitment to honesty. 
C)  They were created to promote rules for the corporations based on the culture of the place. 
D)  They assert that most enterprises' codes of conduct expressly publish policies that deal directly with corruption. 
A)  They coordinate domestic and international policies of developing countries. 
B)  They state that most codes of conduct tend to speak in positive terms, such as, a commitment to honesty. 
C)  They were created to promote rules for the corporations based on the culture of the place. 
D)  They assert that most enterprises' codes of conduct expressly publish policies that deal directly with corruption.

Question 18

Unlike most rights theorists, Immanuel Kant was a strict _____.

Accepted Answer

A)  deontologist 
B)  constructionist 
C)  disciplinarian 
D)  teleological theorist 
A)  deontologist 
B)  constructionist 
C)  disciplinarian 
D)  teleological theorist

Question 19

It is highly unlikely that greater shareholder control of internal corporate governance will lead to greater corporate social responsibility.

Accepted Answer

A) True 
 B)False

Question 20

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.

Exam 3: Business Ethics and Corporate Social Responsibility

Specific, reform-based proposals for changes in management structure include:

According to the decision-making model that is drawn heavily from the thoughts of Joseph L. Badaracco Jr., the question, "Which course of action is feasible?" recognizes that when a particular option is believed to be feasible, the manager's work is considered done.

_____ theory is known as deontological ethical theory.

"Act only on that maxim whereby at the same time you can will that it shall become universal law" is a component of Immanuel Kant's _____.

Corporations sometimes consciously choose to break the law if it poses acceptable risks such as relatively light penalties for violation, if the benefits gained by doing so are great.

Which of the following statements best describes the phenomenon called risky shift?

The Sarbanes-Oxley Act:

According to the justice theory, _____.

Which of the following is a reason why large corporations have the ability to influence legislation?

In determining whether a decision is ethical, teleological ethical theories focus on the consequences of the decision.

Rights theory is known as a teleological ethical theory.

Corporate social responsibility advocates argue that ethical guidance for corporate managers may come from:

Critics of capitalism and corporate America increasingly argue that corporations should follow socially responsible standards higher than that imposed by law.

The problem with the view that a corporation should attempt to act in the best interests of all of its various constituencies is that:

Which of the following is a teleological theory based on the laissez-faire theory of capitalism?

Which of the following is true of Organization for Economic Cooperation and Development (OECD) reports?

Unlike most rights theorists, Immanuel Kant was a strict _____.

It is highly unlikely that greater shareholder control of internal corporate governance will lead to greater corporate social responsibility.

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

Law, Legal Reasoning, and the Legal Profession

Dispute Settlement

Business and the Constitution

Crimes

Intentional Torts

Negligence and Strict Liability

Licensing and Intellectual Property

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 Remedies

Formation and Terms of Sales Contracts

Warranties and Product Liability

Performance of Sales Contracts

Remedies for Breach of Sales Contracts

The Agency Relationship-Creation, Duties, and Termination

Liability of Principals and Agents to Third Parties

Employment Laws

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 Accountants

Personal Property and Bailments

Real Property

Landlord and Tenant

Estates and Trusts

Insurance

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Fund Transfers

Introduction to Security

Security Interests in Personal Property

Bankruptcy

The Antitrust Laws

Consumer Protection Laws

Environmental Regulation

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