Question 1

Stock buybacks are illegal and serve no legitimate purposes.

Accepted Answer

A) True 
 B)False  False

Question 2

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

Accepted Answer

A) True 
 B)False  False

Question 3

Fealty Credit Corporation asks its employees to evaluate their actions and get on the ethical business decision-making "bandwagon." Guidelines for judging indi?vidual 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. C

Question 4

Corporations can be good citizens by promoting goals that society deems worthwhile.

Accepted Answer

A) True 
 B)False

Question 5

Acting in good faith gives a business firm a better chance of defending its actions in court.

Accepted Answer

A) True 
 B)False

Question 6

The categorical imperative cannot be applied to many business actions.

Accepted Answer

A) True 
 B)False

Question 7

Duty-based ethical standards often come from religious precepts or through philosophical reasoning.

Accepted Answer

A) True 
 B)False

Question 8

Adhering strictly to all business laws is all that is necessary to fulfill all business ethics obligations.

Accepted Answer

A) True 
 B)False

Question 9

In studying the legal environment of business, Professor Dooley's students also review ethics in a business context. Ethics includes the study of what constitutes

Accepted Answer

A)  fair or just behavior. 
B)  financially rewarding behavior. 
C)  legal behavior. 
D)  religious behavior. 
A)  fair or just behavior. 
B)  financially rewarding behavior. 
C)  legal behavior. 
D)  religious behavior.

Question 10

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 11

In making business decisions, Glenda, personnel manager for HVAC Maintenance, Inc., applies her belief that all persons have fundamental rights. This is

Accepted Answer

A)  a religious rule. 
B)  the categorical imperative. 
C)  the principle of rights. 
D)  utilitarianism. 
A)  a religious rule. 
B)  the categorical imperative. 
C)  the principle of rights. 
D)  utilitarianism.

Question 12

A business firm can sometimes predict whether a given action is legal.

Accepted Answer

A) True 
 B)False

Question 13

Corporations can be perceived as owing ethical duties to groups other than their shareholders.

Accepted Answer

A) True 
 B)False

Question 14

In deciding questions of corporate social responsibility, Valley 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 15

Julia, the head executive of Fine Woolen Sweaters, Inc., is a committed Christian who strongly adheres to the Ten Commandments. One of Julia's employees is found to be stealing sweaters and giving them to a local homeless shelter. Julia is likely to

Accepted Answer

A)  punish the employee for stealing even though the employee's motive was benevolent. 
B)  view the employee's actions as justified because the employee was clothing the poor. 
C)  contribute more sweaters to the homeless shelter. 
D)  gently reprimand the employee without suggesting that the employee's actions were unethical. 
A)  punish the employee for stealing even though the employee's motive was benevolent. 
B)  view the employee's actions as justified because the employee was clothing the poor. 
C)  contribute more sweaters to the homeless shelter. 
D)  gently reprimand the employee without suggesting that the employee's actions were unethical.

Question 16

In making decisions for Smartt Investments, Rita uses a cost-benefit analysis. This is a part of

Accepted Answer

A)  duty-based ethics. 
B)  Kantian ethics. 
C)  rights-based ethics. 
D)  utilitarian ethics. 
A)  duty-based ethics. 
B)  Kantian ethics. 
C)  rights-based ethics. 
D)  utilitarian ethics.

Question 17

In business deals, Fiona, the chief executive officer of Snacks n' Bites, 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 18

Straitway Company encourages its managers to behave ethically, reasoning that the employees will take their cues from management. One of the most important ways to create and maintain an ethical behavior workplace is for management to

Accepted Answer

A)  demonstrate a commitment to ethical decision making. 
B)  discreetly engage in unethical or illegal acts. 
C)  look the other way when an employee engages in an unethical act. 
D)  direct employees to "do as we say, not as we do." 
A)  demonstrate a commitment to ethical decision making. 
B)  discreetly engage in unethical or illegal acts. 
C)  look the other way when an employee engages in an unethical act. 
D)  direct employees to "do as we say, not as we do."

Question 19

The legality of an action is always clear.

Accepted Answer

A) True 
 B)False

Question 20

Ergonomic Corporation convenes its employees for its managers to announce (1) a new company-wide ethical code of conduct, (2) an ad campaign to publicize the new code, and (3) the discharge of employees who do not adhere to the code. One of the most effective ways to set a tone of ethical behavior within a business organization is

Accepted Answer

A)  to create an ethical code of conduct. 
B)  to discharge employees who create the appearance of impropriety. 
C)  to post a marketing campaign online touting the firm's ethical tone. 
D)  for management to direct employees to "do as we say, not as we do." 
A)  to create an ethical code of conduct. 
B)  to discharge employees who create the appearance of impropriety. 
C)  to post a marketing campaign online touting the firm's ethical tone. 
D)  for management to direct employees to "do as we say, not as we do."

Exam 7: Ethics and Business Decision Making

Stock buybacks are illegal and serve no legitimate purposes.

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

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

Corporations can be good citizens by promoting goals that society deems worthwhile.

Acting in good faith gives a business firm a better chance of defending its actions in court.

The categorical imperative cannot be applied to many business actions.

Duty-based ethical standards often come from religious precepts or through philosophical reasoning.

Adhering strictly to all business laws is all that is necessary to fulfill all business ethics obligations.

In studying the legal environment of business, Professor Dooley's students also review ethics in a business context. Ethics includes the study of what constitutes

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

In making business decisions, Glenda, personnel manager for HVAC Maintenance, Inc., applies her belief that all persons have fundamental rights. This is

A business firm can sometimes predict whether a given action is legal.

Corporations can be perceived as owing ethical duties to groups other than their shareholders.

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

Julia, the head executive of Fine Woolen Sweaters, Inc., is a committed Christian who strongly adheres to the Ten Commandments. One of Julia's employees is found to be stealing sweaters and giving them to a local homeless shelter. Julia is likely to

In making decisions for Smartt Investments, Rita uses a cost-benefit analysis. This is a part of

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

Straitway Company encourages its managers to behave ethically, reasoning that the employees will take their cues from management. One of the most important ways to create and maintain an ethical behavior workplace is for management to

The legality of an action is always clear.

The Legal Environment

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Nature and Classification

Agreement in Traditional and E-Contracts

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Voluntary Consent

The Statute of Fraudswriting Requirement

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