Question 1

Ethics refers to a set of moral principles or values that governs the conduct of an individual or a group.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is the difference between ethical fundamentalism and utilitarianism?

Accepted Answer

A)  Ethical fundamentalism focuses on outside source for ethical rules, while utilitarianism focuses on rules that provide greatest good to society. 
B)  Ethical fundamentalism focuses on moral rules based on a social contract, while utilitarianism focuses on universal rules based on consistency and reversibility. 
C)  Ethical fundamentalism focuses on rules that provide greatest good, while utilitarianism focuses on outside source for rules. 
D)  Ethical fundamentalism focuses on rules based on individual feelings, while utilitarianism focuses on outside source for rules. 
A)  Ethical fundamentalism focuses on outside source for ethical rules, while utilitarianism focuses on rules that provide greatest good to society. 
B)  Ethical fundamentalism focuses on moral rules based on a social contract, while utilitarianism focuses on universal rules based on consistency and reversibility. 
C)  Ethical fundamentalism focuses on rules that provide greatest good, while utilitarianism focuses on outside source for rules. 
D)  Ethical fundamentalism focuses on rules based on individual feelings, while utilitarianism focuses on outside source for rules.

Question 3

________ is a social responsibility theory of business which says that a corporation must consider the effects its actions have on persons other than its shareholders.

Accepted Answer

A)  Corporate citizenship 
B)  Maximizing profits 
C)  Moral minimum 
D)  Stakeholder interest 
A)  Corporate citizenship 
B)  Maximizing profits 
C)  Moral minimum 
D)  Stakeholder interest

Question 4

Which of the following statements is true regarding the relationship between law and ethics?

Accepted Answer

A)  All ethical standards have been enacted as law. 
B)  Ethics establish a minimum degree of conduct while the law demands more. 
C)  Ethics and the law are completely unrelated to each other. 
D)  Law establishes a minimum degree of conduct while ethics demand more. 
A)  All ethical standards have been enacted as law. 
B)  Ethics establish a minimum degree of conduct while the law demands more. 
C)  Ethics and the law are completely unrelated to each other. 
D)  Law establishes a minimum degree of conduct while ethics demand more.

Question 5

________ is a moral theory which asserts that fairness is the essence of justice.

Accepted Answer

A)  Kantian ethics 
B)  moral relativism 
C)  utilitarianism 
D)  Rawls's social justice theory 
A)  Kantian ethics 
B)  moral relativism 
C)  utilitarianism 
D)  Rawls's social justice theory

Question 6

Which of the following is a perceived disadvantage of Rawls's social justice theory?

Accepted Answer

A)  It allows for those in advantageous positions to suppress people in least advantageous positions. 
B)  It doesn't consider the fact that people would not want to maximize benefits for the least advantaged persons. 
C)  It only allocates people in advantageous positions to set up rules on morality. 
D)  It postulates that there are no universal ethical rules to guide a person's conduct. 
A)  It allows for those in advantageous positions to suppress people in least advantageous positions. 
B)  It doesn't consider the fact that people would not want to maximize benefits for the least advantaged persons. 
C)  It only allocates people in advantageous positions to set up rules on morality. 
D)  It postulates that there are no universal ethical rules to guide a person's conduct.

Question 7

The ________ is a federal statute that permits private parties to sue companies for fraud on behalf of the government and share in any monetary recovery.

Accepted Answer

A)  Business Norms Act 
B)  Sarbanes-Oxley Act 
C)  Glass-Steagall Act 
D)  False Claims Act 
A)  Business Norms Act 
B)  Sarbanes-Oxley Act 
C)  Glass-Steagall Act 
D)  False Claims Act

Question 8

Which of the following moral theories lays emphasis on morality based on one's moral duties?

Accepted Answer

A)  moral relativism 
B)  utilitarianism 
C)  Kantian ethics 
D)  ethical fundamentalism 
A)  moral relativism 
B)  utilitarianism 
C)  Kantian ethics 
D)  ethical fundamentalism

Question 9

Which of the following is an example of utilitarianism?

Accepted Answer

A)  Maxtel Apparels decides to shut down one of its plants because its functioning was threatening other plants. 
B)  Turner, Inc., a leather factory, pollutes a river in the town in which it operates but offers damage relief for people affected by the river pollution. 
C)  Raul, a football player, decides to cheat in the upcoming match just because the rival team follows a similar approach. 
D)  Matt looks up to his religious book to guide his life in the righteous way. 
A)  Maxtel Apparels decides to shut down one of its plants because its functioning was threatening other plants. 
B)  Turner, Inc., a leather factory, pollutes a river in the town in which it operates but offers damage relief for people affected by the river pollution. 
C)  Raul, a football player, decides to cheat in the upcoming match just because the rival team follows a similar approach. 
D)  Matt looks up to his religious book to guide his life in the righteous way.

Question 10

Reversibility is a principle of Kantian ethics which says that ________.

Accepted Answer

A)  a person must be allowed to reverse his moral judgment to better suit his needs 
B)  a person must treat all moral circumstances as one 
C)  a person must be allowed to selectively choose moral judgments based on the circumstances 
D)  a person must abide by the rule he or she uses to judge the morality of someone else's conduct 
A)  a person must be allowed to reverse his moral judgment to better suit his needs 
B)  a person must treat all moral circumstances as one 
C)  a person must be allowed to selectively choose moral judgments based on the circumstances 
D)  a person must abide by the rule he or she uses to judge the morality of someone else's conduct

Question 11

Which of the following cases describes an agreement of ethics and laws?

Accepted Answer

A)  a company outsourcing its jobs to a foreign country 
B)  a person being penalized for bribing a judge to rule a case in the person's favor 
C)  a company not spending more money to keep its emission rates below the legal standard 
D)  a person hiring an illegal alien worker whose family is in destitute 
A)  a company outsourcing its jobs to a foreign country 
B)  a person being penalized for bribing a judge to rule a case in the person's favor 
C)  a company not spending more money to keep its emission rates below the legal standard 
D)  a person hiring an illegal alien worker whose family is in destitute

Question 12

Sinbad Cola,a soft drink manufacturer,recently opened a plant in Buron.The wastages from the plant were dumped in the Buron Sea,situated a mile away from the plant.Dumping of wastes in the sea resulted in water pollution,which negatively affected the Buron fishing business,and also resulted in groundwater contamination.Sinbad Cola compensated by bringing contamination levels down with additional filters,and paying damages to the local fisheries.Which theory of business social responsibility did Sinbad Cola meet when they compensated for their harmful wastage disposal methods?

Accepted Answer

A)  moral minimum 
B)  stakeholder interest 
C)  corporate citizenship 
D)  maximizing profits 
A)  moral minimum 
B)  stakeholder interest 
C)  corporate citizenship 
D)  maximizing profits

Question 13

The Whistleblower Statute is also known as the ________.

Accepted Answer

A)  Sarbanes-Oxley Act 
B)  Lanham Act 
C)  False Claims Act 
D)  Glass-Steagall Act 
A)  Sarbanes-Oxley Act 
B)  Lanham Act 
C)  False Claims Act 
D)  Glass-Steagall Act

Question 14

Which of the following is a major criticism of corporate citizenship theory?

Accepted Answer

A)  The laws that guarantee minimum safety standards are difficult to establish. 
B)  The conflicting interests of different people related to a business are difficult to harmonize. 
C)  The focus of business is only on maximizing the wealth of shareholders. 
D)  The duty of a corporation to do good to the society cannot be expanded beyond certain limits. 
A)  The laws that guarantee minimum safety standards are difficult to establish. 
B)  The conflicting interests of different people related to a business are difficult to harmonize. 
C)  The focus of business is only on maximizing the wealth of shareholders. 
D)  The duty of a corporation to do good to the society cannot be expanded beyond certain limits.

Question 15

Under the corporate citizenship theory of social responsibility,corporations owe a duty to subsidize schools and help educate children.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is true of maximize profits theory?

Accepted Answer

A)  It requires an organization to correct the social injury it causes. 
B)  It considers the interests of people other than shareholders to be unimportant. 
C)  It considers the interests of all people associated with a business to be important. 
D)  It requires an organization to solve social issues that it did little to cause. 
A)  It requires an organization to correct the social injury it causes. 
B)  It considers the interests of people other than shareholders to be unimportant. 
C)  It considers the interests of all people associated with a business to be important. 
D)  It requires an organization to solve social issues that it did little to cause.

Question 17

The theory of maximizing profits states that ________.

Accepted Answer

A)  a corporation must consider the effects its actions have on persons other than its shareholders 
B)  a corporation's duty is to make a profit while avoiding causing harm to others 
C)  a corporation owes a duty to take actions that increases profits for shareholders 
D)  a business has a responsibility solely to its stakeholders that other than shareholders 
A)  a corporation must consider the effects its actions have on persons other than its shareholders 
B)  a corporation's duty is to make a profit while avoiding causing harm to others 
C)  a corporation owes a duty to take actions that increases profits for shareholders 
D)  a business has a responsibility solely to its stakeholders that other than shareholders

Question 18

The ________ Act enacted by Congress in 2002,requires public companies to adopt codes of ethics,and establishes criminal penalties for companies that partake in violations.

Accepted Answer

A)  Glass-Steagall 
B)  Sarbanes-Oxley 
C)  False Claims 
D)  Business Norms 
A)  Glass-Steagall 
B)  Sarbanes-Oxley 
C)  False Claims 
D)  Business Norms

Question 19

Which of the following is true of the Sarbanes-Oxley Act?

Accepted Answer

A)  It penalizes companies that violate ethical standards that are not enacted by the rule of law. 
B)  It prevents companies from acting only in the interest of maximizing the wealth of its stakeholders. 
C)  It requires public companies to disclose whether it has a code of ethics for senior financial officers. 
D)  It penalizes companies that fail to contribute toward social issues. 
A)  It penalizes companies that violate ethical standards that are not enacted by the rule of law. 
B)  It prevents companies from acting only in the interest of maximizing the wealth of its stakeholders. 
C)  It requires public companies to disclose whether it has a code of ethics for senior financial officers. 
D)  It penalizes companies that fail to contribute toward social issues.

Question 20

How are ethical rules established in Rawls's social justice theory?

Accepted Answer

A)  by a set of universal rules based on consistency and reversibility 
B)  from an original position of a veil of ignorance 
C)  by the ruling class or people in advantageous positions 
D)  from choosing what's best for the society as a whole 
A)  by a set of universal rules based on consistency and reversibility 
B)  from an original position of a veil of ignorance 
C)  by the ruling class or people in advantageous positions 
D)  from choosing what's best for the society as a whole

Exam 8: Ethics and Social Responsibility of Business

Ethics refers to a set of moral principles or values that governs the conduct of an individual or a group.

Which of the following is the difference between ethical fundamentalism and utilitarianism?

________ is a social responsibility theory of business which says that a corporation must consider the effects its actions have on persons other than its shareholders.

Which of the following statements is true regarding the relationship between law and ethics?

________ is a moral theory which asserts that fairness is the essence of justice.

Which of the following is a perceived disadvantage of Rawls's social justice theory?

The ________ is a federal statute that permits private parties to sue companies for fraud on behalf of the government and share in any monetary recovery.

Which of the following moral theories lays emphasis on morality based on one's moral duties?

Which of the following is an example of utilitarianism?

Reversibility is a principle of Kantian ethics which says that ________.

Which of the following cases describes an agreement of ethics and laws?

The Whistleblower Statute is also known as the ________.

Which of the following is a major criticism of corporate citizenship theory?

Under the corporate citizenship theory of social responsibility,corporations owe a duty to subsidize schools and help educate children.

Which of the following is true of maximize profits theory?

The theory of maximizing profits states that ________.

The ________ Act enacted by Congress in 2002,requires public companies to adopt codes of ethics,and establishes criminal penalties for companies that partake in violations.

Which of the following is true of the Sarbanes-Oxley Act?

How are ethical rules established in Rawls's social justice theory?

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