Question 1

True cost-benefit analysis as a social theory:

Accepted Answer

A)  only measures monetary gains and losses in making business decisions. 
B)  compares direct and indirect costs and benefits of program alternatives for meeting a specific goal. 
C)  is another theory that judges persons' actions by what those persons believe is right for themselves. 
D)  emphasizes justice and a central moral authority. 
A)  only measures monetary gains and losses in making business decisions. 
B)  compares direct and indirect costs and benefits of program alternatives for meeting a specific goal. 
C)  is another theory that judges persons' actions by what those persons believe is right for themselves. 
D)  emphasizes justice and a central moral authority. B

Question 2

In employment relationships, ethical issues arise regarding safety and compensation of workers, privacy, and the legitimacy of whistle-blowing.

Accepted Answer

A) True 
 B)False  True

Question 3

According to one argument in favor of corporate social responsibility, the more responsibly companies act, the less the government must regulate them.

Accepted Answer

A) True 
 B)False  True

Question 4

Arguments favoring social responsibility of business entities include all but which of the following?

Accepted Answer

A)  Corporations are subject to a higher standard of accountability than are public bodies. 
B)  Limited liability granted to corporations carries a responsibility to contribute to society's betterment. 
C)  Corporate involvement in social causes makes good business sense. 
D)  The more responsibly companies act, the less regulation the government must provide. 
A)  Corporations are subject to a higher standard of accountability than are public bodies. 
B)  Limited liability granted to corporations carries a responsibility to contribute to society's betterment. 
C)  Corporate involvement in social causes makes good business sense. 
D)  The more responsibly companies act, the less regulation the government must provide.

Question 5

The definition of business ethics includes which of the following points?

Accepted Answer

A)  It is a science completely separate from applied ethics. 
B)  It is fully codified in federal statutes. 
C)  It has a central authority and universal standards. 
D)  It seeks to determine what is good and right in business settings. 
A)  It is a science completely separate from applied ethics. 
B)  It is fully codified in federal statutes. 
C)  It has a central authority and universal standards. 
D)  It seeks to determine what is good and right in business settings.

Question 6

Ethics can be broadly defined as the study of what is good or right for human beings.

Accepted Answer

A) True 
 B)False

Question 7

An ethical relativist looks to a central authority, such as the Bible, to guide her in ethical decision making.

Accepted Answer

A) True 
 B)False

Question 8

Business ethics is a subset of ethics; there is no special set of ethical principles that applies only to the business world.

Accepted Answer

A) True 
 B)False

Question 9

According to Adam Smith, the capitalistic system is composed of economic motivation, private productive property, free enterprise, free markets, competition, and limited government.

Accepted Answer

A) True 
 B)False

Question 10

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 person who actually made the judgment. 
D)  All of these are true. 
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 person who actually made the judgment. 
D)  All of these are true.

Question 11

According to Jack Behrman, a professor of business ethics, free enterprise involves a:

Accepted Answer

A)  combination of properties. 
B)  capitalistic combination of factors of production. 
C)  group expression of the use of private property. 
D)  All of these are true. 
A)  combination of properties. 
B)  capitalistic combination of factors of production. 
C)  group expression of the use of private property. 
D)  All of these are true.

Question 12

The two major forms of utilitarianism are situational and a priori.

Accepted Answer

A) True 
 B)False

Question 13

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 14

A leading proponent of the utilitarian approach to ethics was the eighteenth-century philosopher Immanuel Kant.

Accepted Answer

A) True 
 B)False

Question 15

Analyze whether telling a lie is unethical in terms of each of the following ethical theories.
a. The approach of Immanuel Kant and his "categorical imperative."
b. Utilitarianism.
c. Intuitionism and the "Television Test."
d. Ethical relativism.
e. Ethical fundamentalism.

Accepted Answer

Answers will vary but should generally c

Question 16

Utilitarian notions underlie cost-benefit analysis.

Accepted Answer

A) True 
 B)False

Question 17

Neal is the young, likable, optimistic, and generous son of a prominent public official. He has a master's degree in business and is the business partner of Ken and Bill in an oil drilling and exploration business. Neal also serves as a director on the board of the Bonanza Savings and Loan Association. While serving on the Bonanza Board, Neal votes to approve major loans to Ken and Bill without disclosing to the other directors that he is a business partner of Ken and Bill. Neal also personally arranges for a $900,000 line of credit from Bonanza for an oil drilling venture in which he is a partner with Ken. The drilling venture is unsuccessful and Ken and Bill both default on their loans to Bonanza, which then causes the S & L to become insolvent. Federal banking officials, who then liquidate its assets
to pay its creditors and depositors, seize Bonanza. Because Bonanza is federally insured, a substantial amount of tax money is also used to pay off depositors whose deposits are insured under federal programs. Bonanza shareholders lose their investment money. Was Neal's conduct as a director of Bonanza ethical? Analyze his conduct in light of the following ethical theories.
© 2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
a. Intuitionism and the "Television Test."
b. Milton Friedman's ideas on corporate governance.
c. Deontological theories.
d. Rule utilitarianism.
e. Ethical relativism.

Accepted Answer

Student answers will vary greatly but sh

Question 18

The ethical decision-making approach that views ethical decisions from the actor's perspective and then judges whether the decisions were ethical is:

Accepted Answer

A)  ethical fundamentalism. 
B)  absolutism. 
C)  situational ethics. 
D)  act utilitarianism. 
A)  ethical fundamentalism. 
B)  absolutism. 
C)  situational ethics. 
D)  act utilitarianism.

Question 19

Which arguments oppose business involvement in socially responsible activities?

Accepted Answer

A)  Lack of corporate focus on profitability. 
B)  Unfairness to company employees and shareholders. 
C)  Lack of accountability. 
D)  All of these are true. 
A)  Lack of corporate focus on profitability. 
B)  Unfairness to company employees and shareholders. 
C)  Lack of accountability. 
D)  All of these are true.

Question 20

Kohlberg observed that people progress through stages of moral development according to the major variables of:

Accepted Answer

A)  age and education. 
B)  age, economic status, and peer influence. 
C)  education and family guidance. 
D)  religion, education, and the influence of peers and family. 
A)  age and education. 
B)  age, economic status, and peer influence. 
C)  education and family guidance. 
D)  religion, education, and the influence of peers and family.

Exam 2: Business Ethics and the Social Responsibility of Business

True cost-benefit analysis as a social theory:

In employment relationships, ethical issues arise regarding safety and compensation of workers, privacy, and the legitimacy of whistle-blowing.

According to one argument in favor of corporate social responsibility, the more responsibly companies act, the less the government must regulate them.

Arguments favoring social responsibility of business entities include all but which of the following?

The definition of business ethics includes which of the following points?

Ethics can be broadly defined as the study of what is good or right for human beings.

An ethical relativist looks to a central authority, such as the Bible, to guide her in ethical decision making.

Business ethics is a subset of ethics; there is no special set of ethical principles that applies only to the business world.

According to Adam Smith, the capitalistic system is composed of economic motivation, private productive property, free enterprise, free markets, competition, and limited government.

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

According to Jack Behrman, a professor of business ethics, free enterprise involves a:

The two major forms of utilitarianism are situational and a priori.

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

A leading proponent of the utilitarian approach to ethics was the eighteenth-century philosopher Immanuel Kant.

Analyze whether telling a lie is unethical in terms of each of the following ethical theories. a. The approach of Immanuel Kant and his "categorical imperative." b. Utilitarianism. c. Intuitionism and the "Television Test." d. Ethical relativism. e. Ethical fundamentalism.

Utilitarian notions underlie cost-benefit analysis.

The ethical decision-making approach that views ethical decisions from the actor's perspective and then judges whether the decisions were ethical is:

Which arguments oppose business involvement in socially responsible activities?

Kohlberg observed that people progress through stages of moral development according to the major variables of:

Introduction to Law

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance, Breach, and Discharge

Contract Remedies

Relationship of Principal and Agent

Relationship With Third Parties

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Products Liability: Warranties and Strict Liability in Tort

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature, Formation, and Powers

Financial Structure

Management Structure

Fundamental Changes

Secured Transactions and Suretyship

Bankruptcy

Protection of Intellectual Property

Antitrust

Consumer Protection

Employment Law

Securities Regulation

Accountants Legal Liability

Environmental Law

International Business Law

Introduction to Property, Property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Decedents Estates

the Legal Environment of Business

Contracts

Agency

Sales

Negotiable Instruments

Unincorporated Business Associations

Corporations

Debtor and Creditor Relations

Regulation of Business

Property

Filters