Question 1

A manager who deceives employees because he believes that the deception maximizes pleasure over pain is acting consistently with which ethical theory?

Accepted Answer

A)   Act deontology
B)   Ethical relativism
C)   Act utilitarianism
D)   Ethical fundamentalism
E)   Rule utilitarianismF) None of the above
G) A) and D)

Question 2

Unlike ethical relativism and situational ethics, ________ holds that whether an action is moral does not depend on the perspective of the person facing the ethical dilemma.

Accepted Answer

A)   Ethical positivism
B)   Moral responsibility
C)   Social responsibility
D)   Ethical absolutism
E)   AbsolutismF) B) and E)
G) A) and B)

Question 3

In the Case Opener, a defendant sought to dismiss a plaintiff's case against Accutane arising from allegations that Accutane caused ulcerative colitis and irritable bowel syndrome. Which of the following court rulings was the result of the defendant's motion to dismiss based on statute of limitation grounds?

Accepted Answer

A)   That because the plaintiff was not warned by her doctor of specific risks caused by the medication, the statute of limitations did not begin to run until she became aware of an advertisement discussing the risk.
B)   That because the plaintiff was warned by her doctor of specific risks caused by the medication, the statute of limitations began to run prior to the time she became aware of an advertisement discussing the risk; and the statute of limitations barred her claim.
C)   That the statute of limitations began to run on the plaintiff's claim when the risk of the drug was discovered by the manufacturer, not on the date on which the plaintiff became aware of the risk and that the statute of limitations, therefore, barred her claim.
D)   That in lawsuits involving this type of drug, there is no statute of limitations because each day the plaintiff suffers from pain results in the beginning of a new cause of action.
E)   That the defendant committed fraud preventing it from relying on the statute of limitations.F) None of the above
G) A) and D)

Question 4

Assume you are starting a new company. Write a code of ethics for the firm.

Accepted Answer

Student responses ma...

Question 5

The terms shareholder and stakeholder have the same meaning.

Accepted Answer

A) True 
 B)False

Question 6

Social responsibility of business deals with the expectations that a community would impose on a firm doing business in their community.

Accepted Answer

A) True 
 B)False

Question 7

Ethical conversation is primarily about finding the one and only right thing to do.

Accepted Answer

A) True 
 B)False

Question 8

According to the text, which of the following may be a part of the "how" in the WH process of decision making?

Accepted Answer

A)   Public disclosure, universalization, security, and the Golden Rule
B)   Values, public disclosure, and security
C)   Profit maximization, security, and public disclosure
D)   Whistle-blowing, the Golden Rule, values, and public disclosure
E)   Public disclosure, universalization, and the Golden RuleF) A) and B)
G) A) and C)

Question 9

Which is a true statement regarding actions taken by news corporations to protect confidential records?

Accepted Answer

A)   News corporations are putting numerous security barriers and encryptions around their records so that nobody can gain access to them.
B)   News corporations are attempting to protect information written by their own employees, but efforts are not made to protect confidential sources because constitutional protection does not extend to confidential sources.
C)   News corporations are not bothering with security barriers to the extent as in previous decades because government regulation requires that information be turned over, and there is no point in taking drastic measures to protect such information.
D)   New regulations make significant privacy barriers illegal in regard to news corporations, so many barriers have been or are being removed.
E)   Because of the respect given to confidential records by the U.S. government and its enforcement agencies, news corporations see little need to enhance protection of confidential records.F) C) and D)
G) D) and E)

Question 10

[Accounting Advice] Chris, a newly hired Certified Public Accountant, was asked by a business client, a chief executive officer, about the effect of the Sarbanes-Oxley Act on an accounting issue. Chris assured the client that the client should not be concerned about the act because it is very vague, unspecific, and difficult to understand. Chris also told the CEO that the CEO could not be held personally responsible, regardless of what happened, because only company business was involved. Finally, Chris told the CEO that there is no oversight involved with the act. Later that same day, Chris's coworker discovered that the CEO had been involved in misstating some financial reports and had also destroyed financial documents to cover up fraud. An employee at the company, Olivia, had informed the coworker as well as the SEC. When the issue was mentioned to the CEO, he immediately fired Olivia.
-Which statement is true regarding Chris's statement that the CEO could not be held liable for violations of the act?

Accepted Answer

A)   Chris is correct. Under no circumstances can a CEO be held personally responsible for violations under the act. Any fines would be imposed upon the business entity.
B)   Chris is incorrect. The act provides for harsh penalties, and a CEO who knows that the company's financial reports are incorrect but claims that they are truthful, can be heavily fined. There are no penalties, however, for destruction of financial documents.
C)   Chris is incorrect. The act provides for harsh penalties, and a CEO who destroys or changes financial documents to mislead can be heavily fined. There are no penalties, however, for misstatements of a company's financial reports because the company is solely responsible for its statements.
D)   Chris is incorrect, but any fine against a CEO under the act cannot exceed a nominal amount of $1,000.
E)   Chris is incorrect. The act provides for harsh penalties, and a CEO who knows that the company's financial reports are incorrect, but who claims that they are truthful, can be heavily fined. Additionally, a CEO who destroys or changes financial documents to mislead can be heavily fined.F) A) and E)
G) A) and D)

Question 11

The ________ of a firm are the many groups of people who are affected by the firm's decision?

Accepted Answer

A)   State governmental entities
B)   Federal governmental entities
C)   Stakeholders
D)   Corporate legal counsel
E)   AccountantsF) A) and B)
G) All of the above

Question 12

An electrician working in a small town is the only electrician within a 100-mile radius. He knows that people who have medical equipment at home have the highest need for power, so he charges them double to fix problems with their electricity, compared with the average customer. The community is angry about this choice. This business practice is most likely:

Accepted Answer

A)   Ethical because owners should focus only on the impact of decisions on the firm.
B)   Ethical because it is not illegal for a company to set its prices based on maximizing profits.
C)   Unethical because businesses operate in a community and communities have expectations for behavior of individuals, groups, and businesses.
D)   Unethical because it is against the law for a company to charge one customer more than another.
E)   Unethical because there is only one morally proper thing to do in any situation.F) None of the above
G) A) and E)

Question 13

How is absolutism different from ethical relativism and situational ethics?

Accepted Answer

A)   It applies utilitarianism.
B)   It holds that a cost-benefit analysis should be applied.
C)   It holds that whether an action is moral does not depend on the perspective of the person facing the ethical dilemma.
D)   It applies virtue ethics and concentrates on the accepted values of the person at issue as well as those of the community involved.
E)   It applies corporate ethics principles.F) A) and D)
G) D) and E)

Question 14

What do the letters "WH" mean in reference to the "WH Framework for Business Ethics" discussed in the text?

Accepted Answer

A)   Who and How
B)   When and How
C)   Why and Hope
D)   Who and Hope
E)   Where and HowF) B) and C)
G) C) and D)

Question 15

The ethical system in which the development of virtues, or positive character traits such as courage, justice, and truthfulness, is the basis for morality is called ________.

Accepted Answer

A)   Absolutism decision
B)   Virtual analysis
C)   Virtue ethics
D)   Fundamentalist approach
E)   Categorical imperativeF) B) and E)
G) B) and D)

Question 16

Positive abstractions that capture our sense of what is good or desirable are called ________.

Accepted Answer

A)   Ethical ideas
B)   Values
C)   Conscience demands
D)   Desirable principles
E)   Action goalsF) A) and E)
G) C) and E)

Question 17

[Fast Food Dilemma] Aiden, who just started at his new job as an assistant manager at a fast-food restaurant, wants to make a good impression. He thinks that things are going well. On only the second day on the job, however, he sees his manager, Debbie, slink out of the restaurant with a big box of hamburgers. She puts them in her car and speeds away. Aiden is fairly certain that Debbie did not pay for the hamburgers. Aiden asks advice of his best friend, Kyle; his girlfriend, Mia; his sister, Katie; and his dad, Joe. Kyle says that there are no real objective standards and that Aiden should just decide to do what is best for himself. Mia says that Aiden should think about the consequences and focus on the greatest benefit to all involved. She believes that it will do no real harm for Aiden to keep his mouth shut because the fast-food restaurant is making plenty of money and probably does not pay Debbie enough anyway. Plus, getting in trouble with Debbie could cause problems at work, and if Aiden loses his job, Aiden and Mia might have to put off their impending marriage. Katie says that on balance, following the rule of producing the greatest good would mean that he should report Debbie to her boss because stealing does not generally produce the greatest satisfaction. Aiden's dad says that as a matter of principle, Aiden should report Debbie to her boss because stealing is simply wrong.
-Which theory most accurately fits the advice given by Mia?

Accepted Answer

A)   Deontology
B)   Act utilitarianism
C)   Rule utilitarianism
D)   Ethical relativism
E)   Virtue ethicsF) B) and C)
G) A) and D)

Question 18

The Foreign Corrupt Practices Act makes it unlawful for a U.S. person to make payments to a foreign official to obtain or retain business with any person.

Accepted Answer

A) True 
 B)False

Question 19

The "public disclosure" test for ethical behavior is sometimes referred to as the ________ test.

Accepted Answer

A)   Television
B)   Powell
C)   Self-conscious
D)   Golden
E)   PrimaryF) C) and D)
G) A) and B)

Question 20

The Sarbanes-Oxley Act was signed into law by:

Accepted Answer

A)   President Bill Clinton
B)   President Barack Obama
C)   President George Bush
D)   President Richard Nixon
E)   President Gerald FordF) A) and D)
G) C) and D)

Exam 2: Business Ethics

Positive abstractions that capture our sense of what is good or desirable are called ________.

Correct Answer
verified

What do the letters "WH" mean in reference to the "WH Framework for Business Ethics" discussed in the text?

Correct Answer
verified

Correct Answer
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According to the text, which of the following may be a part of the "how" in the WH process of decision making?

Correct Answer
verified

Ethical conversation is primarily about finding the one and only right thing to do.

Correct Answer
verified

Unlike ethical relativism and situational ethics, ________ holds that whether an action is moral does not depend on the perspective of the person facing the ethical dilemma.

Correct Answer
verified

The Sarbanes-Oxley Act was signed into law by:

Correct Answer
verified

The ________ of a firm are the many groups of people who are affected by the firm's decision?

Correct Answer
verified

The terms shareholder and stakeholder have the same meaning.

Correct Answer
verified

How is absolutism different from ethical relativism and situational ethics?

Correct Answer
verified

Social responsibility of business deals with the expectations that a community would impose on a firm doing business in their community.

Correct Answer
verified

Correct Answer
verified

Which is a true statement regarding actions taken by news corporations to protect confidential records?

Correct Answer
verified

The Foreign Corrupt Practices Act makes it unlawful for a U.S. person to make payments to a foreign official to obtain or retain business with any person.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

A manager who deceives employees because he believes that the deception maximizes pleasure over pain is acting consistently with which ethical theory?

Correct Answer
verified

The "public disclosure" test for ethical behavior is sometimes referred to as the ________ test.

Correct Answer
verified

The ethical system in which the development of virtues, or positive character traits such as courage, justice, and truthfulness, is the basis for morality is called ________.

Correct Answer
verified

Assume you are starting a new company. Write a code of ethics for the firm.

Correct Answer
verified
Student responses ma...
View Answer

Exam 2: Business Ethics

Positive abstractions that capture our sense of what is good or desirable are called ________.

Correct AnswerverifiedShow Answer

What do the letters "WH" mean in reference to the "WH Framework for Business Ethics" discussed in the text?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

According to the text, which of the following may be a part of the "how" in the WH process of decision making?

Correct AnswerverifiedShow Answer

Ethical conversation is primarily about finding the one and only right thing to do.

Correct AnswerverifiedShow Answer

Unlike ethical relativism and situational ethics, ________ holds that whether an action is moral does not depend on the perspective of the person facing the ethical dilemma.

Correct AnswerverifiedShow Answer

The Sarbanes-Oxley Act was signed into law by:

Correct AnswerverifiedShow Answer

The ________ of a firm are the many groups of people who are affected by the firm's decision?

Correct AnswerverifiedShow Answer

The terms shareholder and stakeholder have the same meaning.

Correct AnswerverifiedShow Answer

How is absolutism different from ethical relativism and situational ethics?

Correct AnswerverifiedShow Answer

Social responsibility of business deals with the expectations that a community would impose on a firm doing business in their community.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Which is a true statement regarding actions taken by news corporations to protect confidential records?

Correct AnswerverifiedShow Answer

The Foreign Corrupt Practices Act makes it unlawful for a U.S. person to make payments to a foreign official to obtain or retain business with any person.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A manager who deceives employees because he believes that the deception maximizes pleasure over pain is acting consistently with which ethical theory?

Correct AnswerverifiedShow Answer

The "public disclosure" test for ethical behavior is sometimes referred to as the ________ test.

Correct AnswerverifiedShow Answer

The ethical system in which the development of virtues, or positive character traits such as courage, justice, and truthfulness, is the basis for morality is called ________.

Correct AnswerverifiedShow Answer

Assume you are starting a new company. Write a code of ethics for the firm.

Correct AnswerverifiedStudent responses ma...View AnswerShow Answer

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Student responses ma...
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