Question 1

Bill would like to propose to the board of directors of Bizmarc, Inc., that the corporation distribute one percent of its pre-tax yearly income to feed the poor.To Milton Friedman and others, Bill's proposal might be considered unethical, because it violates the purpose for which the corporation was established.

Accepted Answer

A) True 
 B)False  True

Question 2

The stakeholder model for the societal role of the business corporation:

Accepted Answer

A)  is a derivative of the social contract theory.
B)  holds that a corporation has the fiduciary duties of utmost loyalty and good faith to employees, customers, and suppliers, as well as shareholders.
C)  views a corporation as public property.
D)  All of the above.
E)  Only (a)  and (b) . E

Question 3

Which of the following best describes the Libertarian social ethics theory?

Accepted Answer

A)  Libertarians stress market outcomes as the basis for distributing society's rewards.
B)  Libertarians encourage social control over all people in order to design an equitable society.
C)  Libertarians believe it is just for society to take wealth earned by some citizens and distribute it to those who did not directly earn it but are in need.
D)  The fact that some people end up with fortunes while others are poor proves only that social interference is necessary to justly redistribute wealth in certain circumstances. A

Question 4

Jeremy Bentham was a proponent of utilitarianism.

Accepted Answer

A) True 
 B)False

Question 5

According to Milton Friedman, the social obligation of a corporation is to return as much money as possible to its shareholders.

Accepted Answer

A) True 
 B)False

Question 6

Kant's approach, like that of ethical fundamentalists, asserts that universal laws stem from the direct pronouncements of God.

Accepted Answer

A) True 
 B)False

Question 7

Harvard philosopher John Rawls stressed liberty as the most important obligation owed by a society to its members.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following presents ethical dimensions for a business?

Accepted Answer

A)  Possible pollution of the physical environment.
B)  Conflicts among differing cultures and value systems in international transactions.
C)  Compensation and working conditions of employees.
D)  All of the above.

Question 9

The ethical theory of intuitionism proposes that:

Accepted Answer

A)  the power of an individual to assess the rightness or wrongness of decisions is as basic to human beings as the instinct for survival.
B)  market outcomes should be the basis for distributing goods.
C)  the "veil of ignorance" should be developed to consider the needs and rights of all society's members.
D)  society should stress equality of opportunity, not results.

Question 10

Situational ethics, unlike ethical relativism, judges a person's ethics, but first looks at the decision or act from the perspective of the actor.

Accepted Answer

A) True 
 B)False

Question 11

Discuss each of the following ethical theories with regard to whether you accept or reject them for your own actions and decisions.
a.Intuitionism and the "Television Test."
b.Rule Utilitarianism.
c.Ethical Relativism.
d.Ethical Fundamentalism.
e.The deontological approach.f.Milton Friedman's ideas on corporate governance.

Accepted Answer

The answer of Discuss each of the following ethical theories...

Question 12

Ethical relativism holds that when any two individuals or cultures differ regarding the morality of a particular issue or action, they are both correct because morality is relative.

Accepted Answer

A) True 
 B)False

Question 13

What is unjust to a social egalitarian will also be unjust to a libertarian.

Accepted Answer

A) True 
 B)False

Question 14

A major criticism of utilitarianism as an ethical theory is:

Accepted Answer

A)  it is rigid.
B)  in some important instances it ignores justice.
C)  it results in the judgment that a person's actions are always moral for that person and therefore exempt from punishment.
D)  it is excessively formal.

Question 15

Deontologists are criticized for rigidity and excessive formalism.

Accepted Answer

A) True 
 B)False

Question 16

Although corporations are not persons but artificial entities created by the state, it is clear that they can and should be held morally accountable.

Accepted Answer

A) True 
 B)False

Question 17

Act utilitarianism supports rules that, on balance, produce the greatest good.

Accepted Answer

A) True 
 B)False

Question 18

Arguments exist which oppose business involvement in socially responsible activities.These arguments involve profitability, unfairness to employees and shareholders, accountability, and lack of expertise managing socially useful activities.

Accepted Answer

A) True 
 B)False

Question 19

In what way or ways are situational ethics and ethical relativism similar?

Accepted Answer

A)  They both look to a central authority or set of rules to guide ethical decision-making.
B)  They both assess each separate act according to whether it maximizes pleasure over pain.
C)  They both judge actions from the perspective of the actor.
D)  All of the above.

Question 20

An ethical decision-making approach that relies on a central authority or set of rules, such as the Koran or the Bible, is:

Accepted Answer

A)  ethical fundamentalism.
B)  ethical relativism.
C)  rule utilitarianism.
D)  act utilitarianism.

Exam 2: Business Ethics

The stakeholder model for the societal role of the business corporation:

Which of the following best describes the Libertarian social ethics theory?

Jeremy Bentham was a proponent of utilitarianism.

According to Milton Friedman, the social obligation of a corporation is to return as much money as possible to its shareholders.

Kant's approach, like that of ethical fundamentalists, asserts that universal laws stem from the direct pronouncements of God.

Harvard philosopher John Rawls stressed liberty as the most important obligation owed by a society to its members.

Which of the following presents ethical dimensions for a business?

The ethical theory of intuitionism proposes that:

Situational ethics, unlike ethical relativism, judges a person's ethics, but first looks at the decision or act from the perspective of the actor.

Ethical relativism holds that when any two individuals or cultures differ regarding the morality of a particular issue or action, they are both correct because morality is relative.

What is unjust to a social egalitarian will also be unjust to a libertarian.

A major criticism of utilitarianism as an ethical theory is:

Deontologists are criticized for rigidity and excessive formalism.

Although corporations are not persons but artificial entities created by the state, it is clear that they can and should be held morally accountable.

Act utilitarianism supports rules that, on balance, produce the greatest good.

Arguments exist which oppose business involvement in socially responsible activities.These arguments involve profitability, unfairness to employees and shareholders, accountability, and lack of expertise managing socially useful activities.

In what way or ways are situational ethics and ethical relativism similar?

An ethical decision-making approach that relies on a central authority or set of rules, such as the Koran or the Bible, is: