Question 1

Ethics focuses on the way in which moral principles apply in daily life.

Accepted Answer

A) True 
 B)False

Question 2

Duty-based ethical standards imply that people have basic rights.

Accepted Answer

A) True 
 B)False

Question 3

Dona, an accountant for Engineering Services, Inc., attempts to apply the duty-based approach to ethical reasoning in conflicts that occur on the job. This approach is based on the idea that a person

Accepted Answer

A)  has a duty to engage in ethical behavior no matter the consequences. 
B)  has a duty to conform one's behavior to society's ethical standards. 
C)  has a duty to one's employer that is superior to any other duty. 
D)  may engage in unethical behavior if it achieves a greater good.

Question 4

Steve, the human resources director for Total Personnel Corporation, at?tempts to comply with the law in dealing with applicants and employ?ees. One of the challenges Steve faces is that the legality of an action is

Accepted Answer

A)  always clear. 
B)  never clear. 
C)  sometimes clear. 
D)  usually clear.

Question 5

The minimal acceptable standard for ethical behavior is compliance with the law.

Accepted Answer

A) True 
 B)False

Question 6

Macro Manufacturing, Inc., needs to cut costs by downsizing. In determin?ing which employees to discharge, Macro will most likely weigh

Accepted Answer

A)  its ethical duty to long-term employees and the legality of discharg?ing older workers only. 
B)  its ethical duty to long-term employees, its profit margin, and the le?gality of discharging older workers. 
C)  the legality of discharging older workers only. 
D)  no duty.

Question 7

Harry, a vice-president of International Pharmaceuticals, Inc., does not ap?ply utilitarianism to business ethical issues. One problem with utili?tari?anism 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.

Question 8

Make-It 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 only. 
C)  neither illegal nor unethical. 
D)  unethical only.

Question 9

Setting realistic workplace goals can reduce the probability that employ?ees will act unethically.

Accepted Answer

A) True 
 B)False

Question 10

Global Distribution Corporation suggests that its employees ap?ply the "categorical imperative" to ethical issues that arise at work. This re?quires that the employees

Accepted Answer

A)  categorize the issues according to legality, morality, and profitability. 
B)  consider only the benefits that would accrue to them personally. 
C)  look only at the result, regardless of the means to attain it. 
D)  weigh the consequences that would follow if everyone acted the same.

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

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 13

Mina works in the public relations department of National Sales Company. Her job includes portraying National's activities in their best light. In this context, ethics consist of

Accepted Answer

A)  a different set of principles from those that apply to other activities. 
B)  the same moral principles that apply to non-business activities. 
C)  those principles that produce the most favorable financial outcome. 
D)  whatever saves National's "face."

Question 14

In business deals, Elin, the chief executive officer of Frosted Donuts, Inc., follows duty-based ethical standards. These are most likely derived from

Accepted Answer

A)  a corporate ethics code. 
B)  a cost-benefit analysis. 
C)  philosophical reasoning. 
D)  the law.

Question 15

According to utilitarianism, an action that affects a minority adversely is morally wrong.

Accepted Answer

A) True 
 B)False

Question 16

Ignorance of a law excuses a business from liability for its vio?lation.

Accepted Answer

A) True 
 B)False

Question 17

ABC DVD Manufacturing, Inc., has to decide whether to close a plant, which will result in the lay-off of fifty employees. ABC may weigh the costs of doing so against the benefits. If the benefits are greater than the costs, can closing the plant be ethically justified, considering the effect on the employees?

Accepted Answer

The answer of ABC DVD Manufacturing, Inc., has to decide...

Question 18

A business firm can sometimes predict whether a given action is legal.

Accepted Answer

A) True 
 B)False

Question 19

Duty-based ethics may be based on religious precepts or philosophical reasoning.

Accepted Answer

A) True 
 B)False

Question 20

A business organization and its actions cannot be based on trust.

Accepted Answer

A) True 
 B)False

Exam 5: Ethics and Business Decision Making

Ethics focuses on the way in which moral principles apply in daily life.

Duty-based ethical standards imply that people have basic rights.

Dona, an accountant for Engineering Services, Inc., attempts to apply the duty-based approach to ethical reasoning in conflicts that occur on the job. This approach is based on the idea that a person

Steve, the human resources director for Total Personnel Corporation, at?tempts to comply with the law in dealing with applicants and employ?ees. One of the challenges Steve faces is that the legality of an action is

The minimal acceptable standard for ethical behavior is compliance with the law.

Macro Manufacturing, Inc., needs to cut costs by downsizing. In determin?ing which employees to discharge, Macro will most likely weigh

Harry, a vice-president of International Pharmaceuticals, Inc., does not ap?ply utilitarianism to business ethical issues. One problem with utili?tari?anism is that it

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

Setting realistic workplace goals can reduce the probability that employ?ees will act unethically.

Global Distribution Corporation suggests that its employees ap?ply the "categorical imperative" to ethical issues that arise at work. This re?quires that the employees

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

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

Mina works in the public relations department of National Sales Company. Her job includes portraying National's activities in their best light. In this context, ethics consist of

In business deals, Elin, the chief executive officer of Frosted Donuts, Inc., follows duty-based ethical standards. These are most likely derived from

According to utilitarianism, an action that affects a minority adversely is morally wrong.

Ignorance of a law excuses a business from liability for its vio?lation.

A business firm can sometimes predict whether a given action is legal.

Duty-based ethics may be based on religious precepts or philosophical reasoning.

A business organization and its actions cannot be based on trust.