Question 1

Few companies provide any kind of support such as ethical training programs to make their ethical codes more effective.

Accepted Answer

A) True 
 B)False  False

Question 2

Ethical reasoning is the process through which an individual rationalizes whatever action he or she chooses to take.

Accepted Answer

A) True 
 B)False  False

Question 3

Recreation & Sports Equipment Corporation sells a product that is capable of seriously injuring consumers who misuse it in a foreseeable way. Does the firm owe an ethical duty to take this product off the market? What con-flicts might arise if the firm stops selling this product?

Accepted Answer

Ethical behavior can sometimes generate sufficient good will to warrant practicing it out of a desire for increased profits. By the same to-ken,unethical behav-ior can sometimes generate enough bad publicity to warrant avoiding it out of the same desire. A business firm's activities that are perceived as ethical and receive wide publicity can benefit the firm's owners in the short run-and even in the long run if the firm's enhanced public image continues to attract more consumers to its products.
There is nothing unethical about making a profit. It is the behavior that generates the profit that can be questionable. Business ethics thus has a practical element. A business firm should act in its best interest. A firm inter-ested in profits should also be interested in the public's opinion.
Of course,it is not a company's fault when consumers mis-use its product. If continuing to sell a product is not a strict violation of the law,stopping its sale would likely re-duce profits. This could impact the firm's owners,employees,and others. But suspending sales could re-duce injuries,and it could lead to increased profits from the sales of other products,if the suspension stops negative publicity.
When a busi-ness en-tity decides to re-spond to what it sees as a moral or ethical obliga-tion by removing a product from the market,an ethi-cal conflict is raised be-tween the firm and its employees and between the firm and its share-holders. This conflict arises directly out of the impact that the decision has on the firm's profits. If meeting this perceived obligation in-creases the firm's profitability,then all parties "win" and the dilemma would be easily re-solved in favor of "doing the right thing."

Question 4

Lucas is a business manager for Micro Manufacturing Company. Ethical dilemmas that Lucas is not likely to encounter include deciding

Accepted Answer

A) the kind of pizza to order for a company meeting. 
B) whether to lay off employees or take a loss in corporate profits. 
C) whether to admonish an employee making rude jokes in the workplace. 
D) what to tell a reporter about the recent drop in corporate stock prices. 
A) the kind of pizza to order for a company meeting. 
B) whether to lay off employees or take a loss in corporate profits. 
C) whether to admonish an employee making rude jokes in the workplace. 
D) what to tell a reporter about the recent drop in corporate stock prices.

Question 5

The study of ethics goes beyond legal requirements to evaluate what is right for society.

Accepted Answer

A) True 
 B)False

Question 6

Morgan and other executive officers of Regional Economic Development Associates,Inc.,applies the utilitarian theory of ethics in business contexts. Utilitarianism focuses on

Accepted Answer

A) moral values. 
B) religious beliefs. 
C) the consequences of an action. 
D) the nature of an action. 
A) moral values. 
B) religious beliefs. 
C) the consequences of an action. 
D) the nature of an action.

Question 7

In deciding questions of corporate social responsibility,Waste 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. 
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 8

In business deals,Fiona,the chief executive officer of Glazed Donuts,Inc.,follows duty-based ethical standards. These are most likely derived from

Accepted Answer

A) a corporate ethics code. 
B) a cost-benefit analysis. 
C) philosophical reasoning. 
D) the law. 
A) a corporate ethics code. 
B) a cost-benefit analysis. 
C) philosophical reasoning. 
D) the law.

Question 9

Religious rules generally are absolute with respect to the behavior of their adherents.

Accepted Answer

A) True 
 B)False

Question 10

Fealty Credit Corporation asks its employees to evaluate their actions and get on the ethical business decision-making "bandwagon." Guidelines for judging individual actions most likely include all of the following except

Accepted Answer

A) an individual's conscience. 
B) business rules and procedures. 
C) loopholes in the law or company policies. 
D) promises to others. 
A) an individual's conscience. 
B) business rules and procedures. 
C) loopholes in the law or company policies. 
D) promises to others.

Question 11

Donna works for eMarketing,Inc. Her job includes putting "spin" on the firm's successes and failures. In this context,ethics has to do with how businesspersons,in making their decisions,apply

Accepted Answer

A) legal doctrine. 
B) moral and ethical principles. 
C) corporate guidelines. 
D) financial priorities. 
A) legal doctrine. 
B) moral and ethical principles. 
C) corporate guidelines. 
D) financial priorities.

Question 12

Mary works in the accounting department of New Trends Sales Company. Her job includes reviewing expense reports submitted by management and employees. In determining which expenses are "padding," Mary should apply to management

Accepted Answer

A) a different set of principles from those that apply to employees. 
B) the same ethical principles that apply to employees. 
C) those principles that produce the most favorable financial outcome. 
D) whatever result is in the best interest of New Trends. 
A) a different set of principles from those that apply to employees. 
B) the same ethical principles that apply to employees. 
C) those principles that produce the most favorable financial outcome. 
D) whatever result is in the best interest of New Trends.

Question 13

Brewster,the chief executive officer of Cog & Gear Lubricants Corporation,wants to en-sure that Cog & Gear's activities are legal and ethical. The best course for Brewster and Cog & Gear is to act

Accepted Answer

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

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

Peak & Vale Accountants provides other firms with accounting services.Questions of what is ethical involve the extent to which Peak & Vale has

Accepted Answer

A) a legal duty beyond those duties mandated by ethics. 
B) an ethical duty beyond those duties mandated by law. 
C) any duty beyond those mandated by both ethics and the law. 
D) any duty when it is uncertain whether a legal duty exists. 
A) a legal duty beyond those duties mandated by ethics. 
B) an ethical duty beyond those duties mandated by law. 
C) any duty beyond those mandated by both ethics and the law. 
D) any duty when it is uncertain whether a legal duty exists.

Question 16

Unless a corporation violates a law,its actions do not raise questions about corporate ethics.

Accepted Answer

A) True 
 B)False

Question 17

Precision Engineering Inc.,like other corporations,is subject to laws that are broad in their purpose and their scope. Compliance with these laws is not always sufficient to determine "right" behavior because

Accepted Answer

A) the law does not codify all ethical requirements. 
B) company codes are also sources of law. 
C) business decisions can have negative impacts. 
D) ethical problems occur in business. 
A) the law does not codify all ethical requirements. 
B) company codes are also sources of law. 
C) business decisions can have negative impacts. 
D) ethical problems occur in business.

Question 18

In a corporation,managers are often faced with ethical trade-offs when a certain decision will benefit one group,but harm another.

Accepted Answer

A) True 
 B)False

Question 19

Sam,the chief accounting officer of Texas Fencing Corporation,wants to be sure that all the company's accounts are legal and ethical. Sometimes,however,he is unsure exactly what is legal and what is illegal. Sam should

Accepted Answer

A) not worry about what is legal or illegal as long as the corporate officers benefit in the short run. 
B) try his best to not do anything illegal and keep documentation showing that he always acts in good faith. 
C) not worry about what is legal or illegal as long as it benefits the shareholders. 
D) not worry about what is legal or illegal as long as it benefits the directors of the corporation. 
A) not worry about what is legal or illegal as long as the corporate officers benefit in the short run. 
B) try his best to not do anything illegal and keep documentation showing that he always acts in good faith. 
C) not worry about what is legal or illegal as long as it benefits the shareholders. 
D) not worry about what is legal or illegal as long as it benefits the directors of the corporation.

Question 20

Ethical reasoning is the process through which an individual links his or her moral convictions or ethical standards to the particular situation at hand.

Accepted Answer

A) True 
 B)False

Exam 9: Business Ethics

Few companies provide any kind of support such as ethical training programs to make their ethical codes more effective.

Ethical reasoning is the process through which an individual rationalizes whatever action he or she chooses to take.

Recreation & Sports Equipment Corporation sells a product that is capable of seriously injuring consumers who misuse it in a foreseeable way. Does the firm owe an ethical duty to take this product off the market? What con-flicts might arise if the firm stops selling this product?

Lucas is a business manager for Micro Manufacturing Company. Ethical dilemmas that Lucas is not likely to encounter include deciding

The study of ethics goes beyond legal requirements to evaluate what is right for society.

Morgan and other executive officers of Regional Economic Development Associates,Inc.,applies the utilitarian theory of ethics in business contexts. Utilitarianism focuses on

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

In business deals,Fiona,the chief executive officer of Glazed Donuts,Inc.,follows duty-based ethical standards. These are most likely derived from

Religious rules generally are absolute with respect to the behavior of their adherents.

Fealty Credit Corporation asks its employees to evaluate their actions and get on the ethical business decision-making "bandwagon." Guidelines for judging individual actions most likely include all of the following except

Donna works for eMarketing,Inc. Her job includes putting "spin" on the firm's successes and failures. In this context,ethics has to do with how businesspersons,in making their decisions,apply

Mary works in the accounting department of New Trends Sales Company. Her job includes reviewing expense reports submitted by management and employees. In determining which expenses are "padding," Mary should apply to management

Brewster,the chief executive officer of Cog & Gear Lubricants Corporation,wants to en-sure that Cog & Gear's activities are legal and ethical. The best course for Brewster and Cog & Gear is to act

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

Peak & Vale Accountants provides other firms with accounting services.Questions of what is ethical involve the extent to which Peak & Vale has

Unless a corporation violates a law,its actions do not raise questions about corporate ethics.

Precision Engineering Inc.,like other corporations,is subject to laws that are broad in their purpose and their scope. Compliance with these laws is not always sufficient to determine "right" behavior because

In a corporation,managers are often faced with ethical trade-offs when a certain decision will benefit one group,but harm another.

Sam,the chief accounting officer of Texas Fencing Corporation,wants to be sure that all the company's accounts are legal and ethical. Sometimes,however,he is unsure exactly what is legal and what is illegal. Sam should

Ethical reasoning is the process through which an individual links his or her moral convictions or ethical standards to the particular situation at hand.

The Legal Environment

Constitutional Law

Courts and Alternative Dispute Resolution

Tort Law

Product Liability

Intellectual Property Rights

Internet Law, social Media, and Privacy

Criminal Law and Cyber Crime

Nature and Classification

Agreement

Consideration

Capacity and Legality

Voluntary Consent

The Statute of Fraudswriting Requirement

Performance and Discharge

Breach and Remedies

Third Party Rights

International Law in a Global Economy

The Formation of Sales and Lease Contracts

Title and Risk of Loss

Performance and Breach of Sales and Lease Contracts

Negotiable Instruments

Banking in the Digital Age

Security Interests and Creditors Rights

Bankruptcy

Agency Relationships in Business

Employment, immigration, and Labor Law

Employment Discrimination

Sole Proprietorships and Franchises

All Forms of Partnership

Limited Liability Companies and Special Business Forms

Corporate Formation and Financing

Corporate Directors, officers, and Shareholders

Corporate Mergers, takeovers, and Termination

Investor Protection, insider Trading, and Corporate Governance

Administrative Law

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Consumer and Environmental Law

Liability of Accountants and Other Professionals

Personal Property and Bailments

Real Property and Landlord-Tenant Law

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