Question 1

Which of the following does not describe the libertarian social ethics theory?

Accepted Answer

A) Libertarians stress market outcomes as the basis for distributing society's rewards. 
B) Libertarians encourage social control over all people in order to design an equitable society. 
C) Libertarians believe it is an injustice for society to take wealth earned by some citizens and distribute it to those who did not directly earn it. 
D) The fact that some people end up with fortunes while others are poor proves only that some can play in the market effectively while others cannot. 
A) Libertarians stress market outcomes as the basis for distributing society's rewards. 
B) Libertarians encourage social control over all people in order to design an equitable society. 
C) Libertarians believe it is an injustice for society to take wealth earned by some citizens and distribute it to those who did not directly earn it. 
D) The fact that some people end up with fortunes while others are poor proves only that some can play in the market effectively while others cannot. B

Question 2

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

Accepted Answer

A) True 
 B)False  True

Question 3

Compare the social ethics theories of distributive justice and libertarianism.How are they alike? How are they different? Explain your answer.

Accepted Answer

Social ethics theories assert that special obligations arise from the social nature of human beings.John Rawls is a leading proponent of distributive justice.His theory seeks to analyze the type of society that people in a "natural state" would establish if they could not determine in advance whether they would be talented, rich, healthy, or ambitious relative to other members of society.Rawls stresses "equality of opportunity." His theory is premised on justice and the belief that everyone is entitled to a fair share in society, which all must work to guarantee.Libertarians stress market outcomes as the basis for distributing society's rewards.Adherents such as Robert Nozick stress liberty rather than justice as the most important obligation that society owes its members.It is not unjust to a libertarian that some people become wealthy while others have little or nothing.They oppose interference by society in their lives.
To a libertarian, it is unjust for society to take the wealth of one citizen in order to distribute it to others who did not earn it.Social ethics theories judge society in moral terms by how it is organized and how it distributes goods and services.

Question 4

According to Milton Friedman, the social obligation of a corporation is to return as much money as possible to its shareholders.

Accepted Answer

A) True 
 B)False

Question 5

Bill would like to propose to the board of directors of Midway Corporation that it distribute five percent of its pre-tax yearly income to feed the poor.To Milton Friedman and others, Bill's proposal might be considered unethical,
because it violates the purpose for which the corporation was established.

Accepted Answer

A) True 
 B)False

Question 6

Adam Smith, in The Wealth of Nations, said the capitalistic system was composed of institutions which include all but which of the following?

Accepted Answer

A) Economic motivation 
B) Free enterprise 
C) Labor 
D) Limited government 
A) Economic motivation 
B) Free enterprise 
C) Labor 
D) Limited government

Question 7

The ethical theory that underlies cost-benefit analysis is:

Accepted Answer

A) libertarianism. 
B) utilitarianism. 
C) deontology. 
D) ethical relativism. 
A) libertarianism. 
B) utilitarianism. 
C) deontology. 
D) ethical relativism.

Question 8

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.

Question 9

In Adam Smith's The Wealth of Nations, how many "institutions" are in the capitalistic system?

Accepted Answer

A) 3 
B) 4 
C) 5 
D) 6 
A) 3 
B) 4 
C) 5 
D) 6

Question 10

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

Question 11

Deontological theories assess good and evil in terms of the consequences of actions rather than by the motives that lead to them.

Accepted Answer

A) True 
 B)False

Question 12

Under which ethical system would it be ethical to compel a few citizens to undergo painful or fatal medical tests in order to develop cures for the rest of the world?

Accepted Answer

A) Utilitarianism 
B) Ethical fundamentalism 
C) Distributive justice 
D) Libertarianism 
A) Utilitarianism 
B) Ethical fundamentalism 
C) Distributive justice 
D) Libertarianism

Question 13

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 14

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

Question 15

Deontologists are sometimes criticized for rigidity and excessive formalism.

Accepted Answer

A) True 
 B)False

Question 16

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 17

Utilitarian notions underlie cost-benefit analysis.

Accepted Answer

A) True 
 B)False

Question 18

The study of business ethics has several central authorities.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Intuitionism holds that rational persons possess inherent powers to assess the correctness of actions.

Accepted Answer

A) True 
 B)False

Exam 2: Business Ethics and the Social Responsibility of Business

Which of the following does not describe the libertarian social ethics theory?

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

Compare the social ethics theories of distributive justice and libertarianism.How are they alike? How are they different? Explain your answer.

According to Milton Friedman, the social obligation of a corporation is to return as much money as possible to its shareholders.

Adam Smith, in The Wealth of Nations, said the capitalistic system was composed of institutions which include all but which of the following?

The ethical theory that underlies cost-benefit analysis is:

True cost-benefit analysis as a social theory:

In Adam Smith's The Wealth of Nations, how many "institutions" are in the capitalistic system?

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

Deontological theories assess good and evil in terms of the consequences of actions rather than by the motives that lead to them.

Under which ethical system would it be ethical to compel a few citizens to undergo painful or fatal medical tests in order to develop cures for the rest of the world?

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

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

Deontologists are sometimes criticized for rigidity and excessive formalism.

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

Utilitarian notions underlie cost-benefit analysis.

The study of business ethics has several central authorities.

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

Intuitionism holds that rational persons possess inherent powers to assess the correctness of actions.

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

51: The Legal Environment Of Business

52: Contracts.

53: Agency.

54: Sales

55: Negotiable Instruments

56: Unincorporated Business Association

57: Corporations

58: Debtor and Creditor Relation

59: Regulation of Business

60: Property.

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