Question 1

Ethical standards based on religious teachings tend to be absolute.

Accepted Answer

A) True 
 B)False

Question 2

DeLouse Plastics Corporation pays its executives an excessive amount relative to other employees and to what executives at competitive companies are paid.This is most likely to be challenged as

Accepted Answer

A) illegal and unethical. 
B) illegal only. 
C) neither illegal nor unethical. 
D) unethical only.

Question 3

Applied Business Corporation makes and markets its products nationwide.Under the stakeholder approach,to be considered socially responsible when making a business decision,Applied must take into account the needs of

Accepted Answer

A) its consumers,the community,and society only. 
B) its employees and owners only. 
C) its employees,owners,consumers,the community,and society. 
D) no one.

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Rio Business Corporation pays potential clients,including private foreign companies and the representatives of foreign labor organizations to facilitate business.If Rio knows that the payments will be passed on to a foreign government,this practice is

Accepted Answer

A) illegal if the payments violate the Foreign Corrupt Practices Act. 
B) legal because a third party acts as a "go-between." 
C) legal because private parties are involved on both sides of the deal. 
D) legal because the payments are intended to facilitate business.

Question 6

Quixotic Corporation decides to respond to what it sees as a moral obligation to cor?rect for past gender discrimi?nation by adjusting pay differences among its male and female employees.Does this raise an ethical conflict among those employees? Be?tween the employer and the em?ployees? Between the corporation and its shareholders? If so,how should it be resolved?

Accepted Answer

The answer of Quixotic Corporation decides to respond to what...

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

If an action is ethical from an outcome-based perspective,then it cannot be ethical from a duty-based perspective.

Accepted Answer

A) True 
 B)False

Question 9

Ethics is concerned with the fairness or justness of an action.

Accepted Answer

A) True 
 B)False

Question 10

In deciding questions of corporate social responsibility,Valley Disposal & Recycling,Inc. ,is concerned with

Accepted Answer

A) how the corporation can best fulfill any ethical duty to society. 
B) the effect on corporate profits of ignoring any ethical duty to society. 
C) whether the corporation owes any ethical duty to society. 
D) all of the choices.

Question 11

Lia works for Media Marketing Company.Her job includes putting "spin" on the firm's successes and failures.In this context,ethics consist of

Accepted Answer

A) "bad" versus "good" publicity. 
B) questions of rightness and wrongness. 
C) the firm's quarterly revenue. 
D) whatever is legal.

Question 12

Under the principle of rights theory,one person's principles are as "right" as another's.

Accepted Answer

A) True 
 B)False

Question 13

The role played by women may present some difficult ethical problems for firms doing business internationally.

Accepted Answer

A) True 
 B)False

Question 14

To be ethical is to "do the right thing" but it does not otherwise "pay."

Accepted Answer

A) True 
 B)False

Question 15

Simply obeying the law does not fulfill all ethical obligations.

Accepted Answer

A) True 
 B)False

Question 16

Eden,the chief executive officer of Flo-Thru Piping Corporation,wants to en?sure that Flo-Thru's activities are legal and ethical.The best course for Eden and Flo-Thru is to act in

Accepted Answer

A) good faith. 
B) ignorance of the law. 
C) regard for the firm's shareholders only. 
D) their own self interest.

Question 17

Corporate ethical policies must be clearly communicated to be effective.

Accepted Answer

A) True 
 B)False

Question 18

Straitway Company encourages its managers to behave ethically,reasoning that the employees will take their cues from management.One of the most important ways to create and maintain an ethical behavior workplace is for management to

Accepted Answer

A) demonstrate a commitment to ethical decision making. 
B) discreetly engage in unethical or illegal acts. 
C) look the other way when an employee engages in an unethical act. 
D) direct employees to "do as we say,not as we do."

Question 19

Managers must apply different standards to themselves than they apply to their employees.

Accepted Answer

A) True 
 B)False

Question 20

Bess runs Creditors Asset Recovery.She recruits clients by misrepresenting the facts and pretending to be licensed in various occupations in Michigan.Bess's conduct most likely warrants

Accepted Answer

A) an ethical admonishment but no other sanctions. 
B) an injunction plus other sanctions. 
C) no sanctions but no praise. 
D) praise for her aggression in recovering the assets of "deadbeat" debtors.

Exam 5: A: Ethics and Business Decision Making

Ethical standards based on religious teachings tend to be absolute.

DeLouse Plastics Corporation pays its executives an excessive amount relative to other employees and to what executives at competitive companies are paid.This is most likely to be challenged as

Applied Business Corporation makes and markets its products nationwide.Under the stakeholder approach,to be considered socially responsible when making a business decision,Applied must take into account the needs of

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

Rio Business Corporation pays potential clients,including private foreign companies and the representatives of foreign labor organizations to facilitate business.If Rio knows that the payments will be passed on to a foreign government,this practice is

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

If an action is ethical from an outcome-based perspective,then it cannot be ethical from a duty-based perspective.

Ethics is concerned with the fairness or justness of an action.

In deciding questions of corporate social responsibility,Valley Disposal & Recycling,Inc. ,is concerned with

Lia works for Media Marketing Company.Her job includes putting "spin" on the firm's successes and failures.In this context,ethics consist of

Under the principle of rights theory,one person's principles are as "right" as another's.

The role played by women may present some difficult ethical problems for firms doing business internationally.

To be ethical is to "do the right thing" but it does not otherwise "pay."

Simply obeying the law does not fulfill all ethical obligations.

Eden,the chief executive officer of Flo-Thru Piping Corporation,wants to en?sure that Flo-Thru's activities are legal and ethical.The best course for Eden and Flo-Thru is to act in

Corporate ethical policies must be clearly communicated to be effective.

Straitway Company encourages its managers to behave ethically,reasoning that the employees will take their cues from management.One of the most important ways to create and maintain an ethical behavior workplace is for management to

Managers must apply different standards to themselves than they apply to their employees.

Bess runs Creditors Asset Recovery.She recruits clients by misrepresenting the facts and pretending to be licensed in various occupations in Michigan.Bess's conduct most likely warrants