Question 1

Which of the following is the group given the ultimate legal authority to change management?

Accepted Answer

A)  Shareholders 
B)  Human resource managers 
C)  The mayor in the applicable jurisdiction 
D)  The city council in the applicable jurisdiction 
A)  Shareholders 
B)  Human resource managers 
C)  The mayor in the applicable jurisdiction 
D)  The city council in the applicable jurisdiction

Question 2

Your company has grown from a national to a multinational entity.How have your ethical responsibilities changed? To whom do you owe these responsibilities?

Accepted Answer

As the text makes clear in the section t

Question 3

According to the Delaware Supreme Court,when does the role of a director shift from being a "protector of the corporate bastion" to being an "auctioneer" charged with obtaining the highest realizable short-term value for the shareholders?

Accepted Answer

A)  Only when the breakup of the corporation or a change of control has become inevitable 
B)  Whenever a yearly loss is reflected 
C)  At the point that a yearly loss has been reflected for three straight years 
D)  When the CEO and the board of directors are in disagreement,and there has also been a yearly loss reflected for three straight years 
A)  Only when the breakup of the corporation or a change of control has become inevitable 
B)  Whenever a yearly loss is reflected 
C)  At the point that a yearly loss has been reflected for three straight years 
D)  When the CEO and the board of directors are in disagreement,and there has also been a yearly loss reflected for three straight years

Question 4

Utilitarianism is a major deontological system that operates under the proposition that the ideal is to focus on motivation rather than on consequences.

Accepted Answer

A) True 
 B)False

Question 5

Yoshi believes firmly in the positive view.Which of the following statements best sums up Yoshi's legal philosophy?

Accepted Answer

A)  The law attempts to prohibit all "bad" behavior. 
B)  An action that is unethical is also considered illegal in the U.S. 
C)  Valid laws prohibit all "morally objectionable" behavior. 
D)  Any law is real and enforceable if it has been created in accordance with recognized procedures. 
A)  The law attempts to prohibit all "bad" behavior. 
B)  An action that is unethical is also considered illegal in the U.S. 
C)  Valid laws prohibit all "morally objectionable" behavior. 
D)  Any law is real and enforceable if it has been created in accordance with recognized procedures.

Question 6

A CEO's role of instilling high standards among employees is best exemplified by which of the following statements?

Accepted Answer

A)  "You can't judge a book by its cover." 
B)  "Do as I say,not as I do." 
C)  "Early to bed,early to rise,makes a man healthy,wealthy,and wise." 
D)  "Character is doing the right thing when nobody's looking." 
A)  "You can't judge a book by its cover." 
B)  "Do as I say,not as I do." 
C)  "Early to bed,early to rise,makes a man healthy,wealthy,and wise." 
D)  "Character is doing the right thing when nobody's looking."

Question 7

A __________ statute is a state statute authorizing boards of corporations to take into account all stakeholders and constituencies even when a change in control or breakup of the corporation has become inevitable.

Accepted Answer

A)  corporate control 
B)  break-up 
C)  constituency 
D)  protection 
A)  corporate control 
B)  break-up 
C)  constituency 
D)  protection

Question 8

The two main schools of ethical thought are teleological and deontological.

Accepted Answer

A) True 
 B)False

Question 9

Maximization of shareholder value is considered shareholder primacy and is mandated by law.

Accepted Answer

A) True 
 B)False

Question 10

According to St.Thomas Aquinas,an unjust law

Accepted Answer

A)  could not properly be considered law at all. 
B)  is defective and morally objectionable. 
C)  must be obeyed even if it is morally objectionable. 
D)  must be overturned by a supermajority of the legislature. 
A)  could not properly be considered law at all. 
B)  is defective and morally objectionable. 
C)  must be obeyed even if it is morally objectionable. 
D)  must be overturned by a supermajority of the legislature.

Question 11

According to economist Michael C.Jensen,long-term market value of an organization cannot be maximized if:

Accepted Answer

A)  outperforming competition has both a long-term and short-term focus. 
B)  companies chose social responsibility over shareholders. 
C)  management focuses on long-term value creation over short-term profits. 
D)  management ignores or mistreats any important constituency. 
A)  outperforming competition has both a long-term and short-term focus. 
B)  companies chose social responsibility over shareholders. 
C)  management focuses on long-term value creation over short-term profits. 
D)  management ignores or mistreats any important constituency.

Question 12

All fifty states have constituency statutes.

Accepted Answer

A) True 
 B)False

Question 13

The __________ Act illustrates that corporate conduct violating society's expectations can result in new forms of regulation without regard for feasibility or cost.

Accepted Answer

A)  White-Rush Dow Jones Conciliatory 
B)  Dodd-Frank Wall Street Reform and Consumer Protection 
C)  Corporate and Securities Reform and Retribution Consumer Protection 
D)  Securities and Oversight 
A)  White-Rush Dow Jones Conciliatory 
B)  Dodd-Frank Wall Street Reform and Consumer Protection 
C)  Corporate and Securities Reform and Retribution Consumer Protection 
D)  Securities and Oversight

Question 14

Nobel Prize winner in economics Milton Friedman asserts that the only guiding criterion for the corporation should be profitability within the confines of the law.

Accepted Answer

A) True 
 B)False

Question 15

The deontological theory focuses on the consequences of an action rather than on the motivation of the individual.

Accepted Answer

A) True 
 B)False

Question 16

According to Kant's theory of universalizability,the ethical worth of an act is determined by whether a person:

Accepted Answer

A)  would want such a rule applied to minority members of society. 
B)  would want everyone to perform in this manner. 
C)  could get away with such an action. 
D)  could live with the results of such an action. 
A)  would want such a rule applied to minority members of society. 
B)  would want everyone to perform in this manner. 
C)  could get away with such an action. 
D)  could live with the results of such an action.

Question 17

Compliance with the law is just the baseline for effective and responsible managerial action.

Accepted Answer

A) True 
 B)False

Question 18

Overly generous compensation packages for CEOs can lead to greedy and unethical behavior and reinforces:

Accepted Answer

A)  empathic tendencies. 
B)  narcissistic tendencies. 
C)  a shrinking of social distance between CEO and workers. 
D)  exemplary conduct. 
A)  empathic tendencies. 
B)  narcissistic tendencies. 
C)  a shrinking of social distance between CEO and workers. 
D)  exemplary conduct.

Question 19

Rawlsian moral theory seeks to develop principles behind a "veil of ignorance."

Accepted Answer

A) True 
 B)False

Question 20

All business leaders and academics agree that the primary ethical and legal duty of corporations is to maximize shareholder value.

Accepted Answer

A) True 
 B)False

Exam 2: Ethics-And-Law

Which of the following is the group given the ultimate legal authority to change management?

Your company has grown from a national to a multinational entity.How have your ethical responsibilities changed? To whom do you owe these responsibilities?

According to the Delaware Supreme Court,when does the role of a director shift from being a "protector of the corporate bastion" to being an "auctioneer" charged with obtaining the highest realizable short-term value for the shareholders?

Utilitarianism is a major deontological system that operates under the proposition that the ideal is to focus on motivation rather than on consequences.

Yoshi believes firmly in the positive view.Which of the following statements best sums up Yoshi's legal philosophy?

A CEO's role of instilling high standards among employees is best exemplified by which of the following statements?

A __________ statute is a state statute authorizing boards of corporations to take into account all stakeholders and constituencies even when a change in control or breakup of the corporation has become inevitable.

The two main schools of ethical thought are teleological and deontological.

Maximization of shareholder value is considered shareholder primacy and is mandated by law.

According to St.Thomas Aquinas,an unjust law

According to economist Michael C.Jensen,long-term market value of an organization cannot be maximized if:

All fifty states have constituency statutes.

The __________ Act illustrates that corporate conduct violating society's expectations can result in new forms of regulation without regard for feasibility or cost.

Nobel Prize winner in economics Milton Friedman asserts that the only guiding criterion for the corporation should be profitability within the confines of the law.

The deontological theory focuses on the consequences of an action rather than on the motivation of the individual.

According to Kant's theory of universalizability,the ethical worth of an act is determined by whether a person:

Compliance with the law is just the baseline for effective and responsible managerial action.

Overly generous compensation packages for CEOs can lead to greedy and unethical behavior and reinforces:

Rawlsian moral theory seeks to develop principles behind a "veil of ignorance."

All business leaders and academics agree that the primary ethical and legal duty of corporations is to maximize shareholder value.

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