Deck 2: Business Ethics

Question 1

Ethical conversation is primarily about finding the one and only right thing to do.

Answer 1

False

Question 2

Insurer American International Group (AIG) is well known in the insurance industry for its ethical business practices.

Answer 2

False

Question 3

Social responsibility of business deals with the expectations that a community would impose on a firm doing business in their community.

Answer 3

True

Question 4

In the Case Opener, a defendant sought to dismiss a plaintiff's case against Accutane arising from allegations that Accutane caused ulcerative colitis and irritable bowel syndrome. Which of the following court rulings was the result of the defendant's motion to dismiss based on statute of limitation grounds?

A) That because the plaintiff was not warned by her doctor of specific risks caused by the medication, the statute of limitations did not begin to run until she became aware of an advertisement discussing the risk.
B) That because the plaintiff was warned by her doctor of specific risks caused by the medication, the statute of limitations began to run prior to the time she became aware of an advertisement discussing the risk; and the statute of limitations barred her claim.
C) That the statute of limitations began to run on the plaintiff's claim when the risk of the drug was discovered by the manufacturer, not on the date on which the plaintiff became aware of the risk and that the statute of limitations, therefore, barred her claim.
D) That in lawsuits involving this type of drug, there is no statute of limitations because each day the plaintiff suffers from pain results in the beginning of a new cause of action.
E) That the defendant committed fraud preventing it from relying on the statute of limitations.

Question 5

Business ethics is the application of ethics to the special problems and opportunities experienced by business people.

Question 6

Business ethics and regular ethics are the exact same.

Question 7

The terms shareholder and stakeholder have the same meaning.

Question 8

Economist Milton Friedman argued that the only social responsibility of business is:

A) to increase profits
B) to do right by others
C) to follow the law
D) to increase shareholder values
E) to not harm the environment

Question 9

Law and business ethics serve as an interactive system that informs and assesses each other.

Question 10

The community in which a firm operates would not be considered a stakeholder of the firm.

Question 11

In an ethical analysis using the WH Framework referenced in the text, owners are the most important stakeholders and should receive the greatest consideration in decision making regardless of the type of problem addressed.

Question 12

Consequentialism provides a rigid set of rules to follow regardless of the situation.

Question 13

One form of consequentialism is utilitarianism.

Question 14

In some countries, businesses must pay bribes to receive supplies they need to stay in business.

Question 15

The Foreign Corrupt Practices Act makes it unlawful for a U.S. person to make payments to a foreign official to obtain or retain business with any person.

Question 16

Which of the following presents a problem when considering the theory of ethics known as absolutism?

A) The questionable nature of the rules in most absolutist repositories seems overly flexible when applied to different situations.
B) The unquestionable nature of the rules in most absolutist repositories seems overly inflexible when applied to different situations.
C) The lack of objectivity.
D) The fact that most individuals associated with this theory have been proven to have acted to the detriment of their followers in one way or another.
E) The allegation that an excessive number of followers actually follow consequentialism.

Question 17

Which of the following is the application of ethics to special problems and opportunities experienced by those in business?

A) Situational ethics
B) Consequentialism
C) Business ethics
D) Sarbanes-Oxley principles
E) Business utilitarianism

Question 18

Under the WH framework the "W" stands for Who and the "H" stands for help.

Question 19

A large company is about to lay off several people due to a struggling economy. The company must make some difficult decisions about laying off older workers who cost the company more money, or laying off the younger workers who cost the company less money but have the technical skills the company will ultimately need. The company is faced with a(n):

A) Ethical misfortune
B) Social responsibility
C) Ethical dilemma
D) Legal responsibility
E) Unfortunate dilemma

Question 20

Ethical relativism is a theory of ethics that denies the existence of objective moral standards and teaches that individuals must evaluate actions on the basis of what they feel is best for themselves.

Question 21

[Environmental Concerns] Sana, the president of a company that makes paper, has an interest in the environment. She recently went to a seminar on environmental dangers and has decided to take steps to clean things up. She started at home and has now felt compelled to change things at work. Sana had to face the fact that her company has been cheating and is not in compliance with applicable environmental regulations due to dumping in a nearby river. Her company has never been cited because it employs a very large number of people in the community, including the mayor's husband and the chief-of-police's brother. On her mission to clean things up, Sana has decided to go even further than the law requires and implement the very latest environmental protections. When she announced her plan, the chair of the company's board of directors, Jessica, had a meeting with Sana. Jessica told Sana to analyze the situation carefully because the cost of the additional equipment would mean no dividend to shareholders and no raise for employees. Furthermore, Jessica told Sana that installing all the new equipment would result in higher prices for the company's paper product and could bankrupt the company because of foreign competition. Jessica hinted that Sana could be fired if she persisted. Jessica suggested that Sana should just be concerned with a minimal standard of ethics. Sana decides to go forward with her plan to clean things up under the theory that she wants to treat others in the same manner that she wants to be treated. Under Sana's theory, if she did not understand the importance of the environmental improvements, she would want them to be thrust upon her.
Which statement is true regarding meeting the minimal standard of business ethics suggested by Jessica?

A) Decisions must be legal.
B) Decisions must meet the criteria of a follower of deontology.
C) Decisions must meet the criteria of a follower of utilitarianism.
D) Decisions must receive a majority vote of acceptance by employees.
E) Decisions must be legal and decisions must also receive a majority vote of acceptance by employees.

Question 22

Which of the following is a consideration in meeting the minimal standard for a firm to be considered an ethical business?

A) Meeting the requirements of deontology.
B) Meeting the requirement of the public disclosure test.
C) Meeting the requirement of utilitarianism.
D) Satisfying the company's board of directors.
E) Considering the legality of a decision when choosing the means of production.

Question 23

Which of the following is an example of how ethics shapes business laws?

A) Contract laws require parties to live up to promises because keeping promises is part of our ethical inclination to encourage trust.
B) Bribery is legal for U.S. companies doing business in foreign countries because respecting foreign cultures is part of our community ethics.
C) Business law requires companies to put profits above all else, because protecting the rights of shareholders is the ethically proper course of action.
D) Contract laws require parties to obey even unenforceable agreements because of our ethical belief that every promise must be kept at all times.
E) Bribery is legal for U.S. companies doing business in foreign countries because foreign businesses can pay bribes and our ethical inclination is to level the playing field for American businesses.

Question 24

How do law and business ethics relate to each other?

A) Ethics is unrelated to the law because ethics answers only moral questions.
B) Ethics entirely determines what the laws will be, as ethics is focused on finding one right answer to every question.
C) The law establishes what is ethical, as anything which is legal is automatically ethical.
D) The law establishes ethical rules and boundaries, because laws take multiple stakeholders into consideration.
E) Law and business ethics serve as an interactive system, informing and assessing each other.

Question 25

Which of the following are stakeholders of a business?

A) Shareholders but not employees
B) Employees but not shareholders
C) Customers but not employees or shareholders
D) Management but not employees
E) Shareholders, employees, customers, and management

Question 26

An electrician working in a small town is the only electrician within a 100-mile radius. He knows that people who have medical equipment at home have the highest need for power, so he charges them double to fix problems with their electricity, compared with the average customer. The community is angry about this choice. This business practice is most likely:

A) Ethical because owners should focus only on the impact of decisions on the firm.
B) Ethical because it is not illegal for a company to set its prices based on maximizing profits.
C) Unethical because businesses operate in a community and communities have expectations for behavior of individuals, groups, and businesses.
D) Unethical because it is against the law for a company to charge one customer more than another.
E) Unethical because there is only one morally proper thing to do in any situation.

Question 27

Which of the following is true about how ethical conceptions shape business law and business relationships in different countries?

A) Ethics does not shape business law or business relationships because law and ethics are separate and not interrelated.
B) Business law and business relationships should be the same in all countries because ethics provides one correct answer to all questions.
C) Business law should be the same in all countries because protecting the rights of shareholders is always the ethically proper course of action.
D) Different ethical understandings exist in different countries, but fairness is the highest ethical standard so countries must create uniform laws.
E) Different ethical understandings prevail in different countries, so ethical conceptions shape business law and business relationships uniquely in each country.

Question 28

The Economist published an interview of 500 top American business executives, who listed four factors they believe are essential for profits and corporate citizenship to function as partners. These four factors are:

A) Compliance with community standards at all levels, focus on profit above ethics, community engagement, and a focus on fairness.
B) Ethics at all levels, leadership at all levels, community engagement at all levels, and a focus on profit as the ultimate goal for all levels.
C) Leadership at all levels, ethics at the upper level, community engagement at all levels, and positive employee/employer feedback.
D) Ethics at all levels, leadership at all levels, community engagement at all levels, and private ownership.
E) Leadership at all levels, employee engagement, rigorous measurement of achievement, and public-private partnerships.

Question 29

Which of the following is true under the WH process of ethical decision making?

A) The interest of consumers should always be put before employees and management.
B) The interest of owners and partners rank the highest because they put the capital into the business.
C) Community is always the last stakeholder to be evaluated in any ethical decision.
D) Though owners always have the highest level interest in any ethical business decision, managers and employees should be valued equally, then shareholders and the community.
E) One stakeholder should not be valued above another under the WH framework for business ethics.

Question 30

Which of the following is true regarding business ethics?

A) Business ethics refers to standards of business conduct but does not result in a set of correct decisions.
B) Business ethics results in a set of correct decisions and does not simply refer to standards of business conduct.
C) Business ethics produces a list of correct business decisions that all ethical businesses will make so long as the theory of deontology is followed.
D) Business ethics produces a list of correct business decisions that all ethical businesses will make so long as the theory of rule utilitarianism is followed.
E) Business ethics produces a list of correct business decisions that all ethical businesses will make so long as the theory of virtue ethics is followed.

Question 31

In China, the practice of using guanxi is an integral part of doing business both to those firms already in the country and those working to get their firms into the country. Guanxi is built on reciprocity meaning:

A) You pay for another person's business debts to help them get back on their feet.
B) That certain parts of businesses must be registered first with the government.
C) Paying a bribe to an official is acceptable as part of the company's first obligation to enter the country.
D) If someone does a favor for you, you will be expected to return that favor in the future including access to partnerships, contracts and government officials.
E) Not paying a bribe and convincing a local company to illegally sell materials to them, since demanding bribes is unethical behavior.

Question 32

A company pays bribes in foreign countries in order to conduct operations there. What legal consequences can the company face?

A) No legal consequences as long as the bribe was legal in the country where it was paid.
B) No legal consequences as long as the company was acting in the best interests of shareholders.
C) No legal consequences as long as the company had no choice but to pay the bribe if it wished to do business in the foreign country.
D) Legal consequences under the Foreign Corrupt Practices Act.
E) Legal consequences under Glass-Steagall.

Question 33

In the past 20 years there have been major accounting scandals that have impacted many companies resulting in the illustration that the business world cannot be allowed to regulate itself ethically and produced the Sarbanes-Oxley Act. Who were two of the major violators?

A) Ford Motor Company and WorldCom
B) WorldCom and Enron
C) Shell Corporation and Amazon
D) Enron and the SEC
E) Chrysler Corporation and WorldCom

Question 34

If a business decides to act outside of the prevailing ethical norms of that community:

A) It risks damage to its reputation and ill will.
B) There really is no risk to businesses since the community really needs the business to survive.
C) It only has to worry about the legal implications of its actions.
D) It takes the chance the law will impose fines against it.
E) There should be no concerns because the business can move to another community if it needs to.

Question 35

[Environmental Concerns] Sana, the president of a company that makes paper, has an interest in the environment. She recently went to a seminar on environmental dangers and has decided to take steps to clean things up. She started at home and has now felt compelled to change things at work. Sana had to face the fact that her company has been cheating and is not in compliance with applicable environmental regulations due to dumping in a nearby river. Her company has never been cited because it employs a very large number of people in the community, including the mayor's husband and the chief-of-police's brother. On her mission to clean things up, Sana has decided to go even further than the law requires and implement the very latest environmental protections. When she announced her plan, the chair of the company's board of directors, Jessica, had a meeting with Sana. Jessica told Sana to analyze the situation carefully because the cost of the additional equipment would mean no dividend to shareholders and no raise for employees. Furthermore, Jessica told Sana that installing all the new equipment would result in higher prices for the company's paper product and could bankrupt the company because of foreign competition. Jessica hinted that Sana could be fired if she persisted. Jessica suggested that Sana should just be concerned with a minimal standard of ethics. Sana decides to go forward with her plan to clean things up under the theory that she wants to treat others in the same manner that she wants to be treated. Under Sana's theory, if she did not understand the importance of the environmental improvements, she would want them to be thrust upon her.
Which of these would be a stakeholder in the above company?

A) The community only
B) The shareholders only
C) Future generations only
D) The community and shareholders only
E) The community, shareholders, and future generations

Question 36

Sana's idea is best referred to as ________.

A) The Golden Rule
B) The Disclosure Principle
C) The Help Peers Test
D) The Sarbanes-Oxley Rule
E) The Greenhouse Rule

Question 37

What do the letters "WH" mean in reference to the "WH Framework for Business Ethics" discussed in the text?

A) Who and How
B) When and How
C) Why and Hope
D) Who and Hope
E) Where and How

Question 38

What is the system of "guanxi" used in China?

A) It refers to a system of relationship building woven together by social ties.
B) It refers to a system of strict ethical rules.
C) It refers to a prohibition against criticism of government rules and regulations.
D) It refers to a system by which business people attempt to avoid strict Chinese regulations.
E) It refers to a system of smuggling.

Question 39

A local Chamber of Commerce plans a seminar on "the social responsibility of business in our community." What does that term reference?

A) The responsibility of business to make profit for shareholders.
B) The responsibility of business to have annual meetings.
C) The expectations that the community imposes on firms doing business inside its borders.
D) The expectations of employees regarding wage rates.
E) The expectations of management in regard to adequate utility resources.

Question 40

Which of the following is asserted by the principle of rights?

A) That whether a business decision is ethical depends on how the decision affects the rights of all involved.
B) That whether a business decision is ethical depends on how the decision affects the rights of stockholders without consideration of other stakeholders.
C) That whether a business decision is ethical depends on how the decision affects the rights of employees without consideration of other stakeholders.
D) That whether a business decision is ethical depends on how the decision affects the overall economy.
E) That whether a business decision is ethical depends on how the decision affects the rights of organized labor without consideration of other stakeholders.

Question 41

According to the text, which of the following would not be considered in the "WHO" in the WH process of decision making?

A) Consumers and community
B) Employees and management
C) State and federal governments
D) Communities and future generations
E) Employees and owners

Question 42

Which is a true statement regarding actions taken by news corporations to protect confidential records?

A) News corporations are putting numerous security barriers and encryptions around their records so that nobody can gain access to them.
B) News corporations are attempting to protect information written by their own employees, but efforts are not made to protect confidential sources because constitutional protection does not extend to confidential sources.
C) News corporations are not bothering with security barriers to the extent as in previous decades because government regulation requires that information be turned over, and there is no point in taking drastic measures to protect such information.
D) New regulations make significant privacy barriers illegal in regard to news corporations, so many barriers have been or are being removed.
E) Because of the respect given to confidential records by the U.S. government and its enforcement agencies, news corporations see little need to enhance protection of confidential records.

Question 43

What does the value of security mean?

A) To possess a large enough supply of goods and services to meet basic needs
B) To possess the capacity or resources to act as one wishes
C) To treat all humans identically, regardless of race, class, gender, age and sexual preference
D) To possess anything that someone is willing to grant you
E) To maximize the amount of wealth in society

Question 44

What does the value of justice mean?

A) To possess a large enough supply of goods and services to meet basic demands
B) To possess the capacity or resources to act as one wishes
C) To treat all humans identically, regardless of race, class, gender, age and sexual preference
D) To be safe from those wishing to interfere with your property rights
E) To maximize the amount of wealth in society

Question 45

Ethical decision making has which of the following values?

A) Maximization of profits
B) Justice and profit maximization
C) Freedom, profit maximization, security
D) Freedom, security, justice, and efficiency
E) Freedom, security, and profit maximization

Question 46

Which of the following is true regarding activities of the Public Company Accounting Oversight Board?

A) The Board ensures that auditors and public accounting firms compile accurate and truthful financial reports for the companies they audit, but it has no responsibility in regard to whistle-blowing protection.
B) The Board requires that companies devise a system that allows employees to report suspicions of unethical behavior, but it does not address financial reports prepared by auditors and public accounting firms.
C) The Board requires that the universalization test be used as the primary ethical guideline and also mandates protection for whistle-blowers who report suspicious activity involving financial reports.
D) The Board ensures that auditors and public accounting firms compile accurate and truthful financial reports for the companies they audit and also requires that companies devise a system that allows employees to report suspicions of unethical behavior.
E) The Public Company Accounting Oversight Board was abolished during the Obama administration and no longer exists.

Question 47

The idea that we should interact with other people in a manner consistent with the manner in which we would like them to interact with us is called the ________.

A) Equalization Rule
B) Ethical Realization Rule
C) Silver Rule
D) Golden Rule
E) Ten Commandments Rule

Question 48

What does the value of freedom mean?

A) To possess a large enough supply of goods and services to meet basic demands
B) To possess the capacity or resources to act as one wishes
C) To treat all humans identically, regardless of race, class, gender, age and sexual preference
D) To possess anything that someone is willing to grant you
E) To maximize the amount of wealth in society

Question 49

The ________ of a firm are the many groups of people who are affected by the firm's decision?

A) State governmental entities
B) Federal governmental entities
C) Stakeholders
D) Corporate legal counsel
E) Accountants

Question 50

The ________ for ethical behavior seeks consideration of what the world would be like if a decision is copied by everyone else.

A) Golden rule
B) Universalization test
C) Public disclosure
D) Relevant disclosure
E) World rule

Question 51

A company has to dispose of bio-hazardous waste products. Dropping them in the landfill anonymously would be the cheapest solution, but the company does not do this because it is frightened that other companies might do the same and its workers would end up breathing in or drinking pollutants. In considering the possible complicity, the company's decision was shaped by the:

A) Public disclosure test
B) Profit motive
C) Golden Rule
D) WPH Method
E) Universalization test

Question 52

The Sarbanes-Oxley Act was signed into law by:

A) President Bill Clinton
B) President Barack Obama
C) President George Bush
D) President Richard Nixon
E) President Gerald Ford

Question 53

Positive abstractions that capture our sense of what is good or desirable are called ________.

A) Ethical ideas
B) Values
C) Conscience demands
D) Desirable principles
E) Action goals

Question 54

[Accounting Advice] Chris, a newly hired Certified Public Accountant, was asked by a business client, a chief executive officer, about the effect of the Sarbanes-Oxley Act on an accounting issue. Chris assured the client that the client should not be concerned about the act because it is very vague, unspecific, and difficult to understand. Chris also told the CEO that the CEO could not be held personally responsible, regardless of what happened, because only company business was involved. Finally, Chris told the CEO that there is no oversight involved with the act. Later that same day, Chris's coworker discovered that the CEO had been involved in misstating some financial reports and had also destroyed financial documents to cover up fraud. An employee at the company, Olivia, had informed the coworker as well as the SEC. When the issue was mentioned to the CEO, he immediately fired Olivia.
Which statement is true regarding the act and Olivia's firing?

A) The act does not provide protection for whistle-blowers such as Olivia.
B) The act provides protection for whistle-blowers only if it can be shown that a significant amount of money, in excess of $5,000, was involved in the incident involved.
C) The act provides protection for whistle-blowers only if it can be shown that a significant amount of money, in excess of $10,000, was involved in the incident involved.
D) The act provides protection for whistle-blowers who work for an accounting firm, but not for any other employees.
E) Olivia's whistle-blowing would be protected under the act, and her firing was illegal.

Question 55

The "public disclosure" test for ethical behavior is sometimes referred to as the ________ test.

A) Television
B) Powell
C) Self-conscious
D) Golden
E) Primary

Question 56

Under the ________ test people are asked to consider what the world would be like were our decision copied by everyone else.

A) Propositions values
B) Profit motive
C) Globalization
D) Golden Rule
E) Universalization

Question 57

[Accounting Advice] Chris, a newly hired Certified Public Accountant, was asked by a business client, a chief executive officer, about the effect of the Sarbanes-Oxley Act on an accounting issue. Chris assured the client that the client should not be concerned about the act because it is very vague, unspecific, and difficult to understand. Chris also told the CEO that the CEO could not be held personally responsible, regardless of what happened, because only company business was involved. Finally, Chris told the CEO that there is no oversight involved with the act. Later that same day, Chris's coworker discovered that the CEO had been involved in misstating some financial reports and had also destroyed financial documents to cover up fraud. An employee at the company, Olivia, had informed the coworker as well as the SEC. When the issue was mentioned to the CEO, he immediately fired Olivia.
Which statement is true regarding Chris's statement that the CEO could not be held liable for violations of the act?

A) Chris is correct. Under no circumstances can a CEO be held personally responsible for violations under the act. Any fines would be imposed upon the business entity.
B) Chris is incorrect. The act provides for harsh penalties, and a CEO who knows that the company's financial reports are incorrect but claims that they are truthful, can be heavily fined. There are no penalties, however, for destruction of financial documents.
C) Chris is incorrect. The act provides for harsh penalties, and a CEO who destroys or changes financial documents to mislead can be heavily fined. There are no penalties, however, for misstatements of a company's financial reports because the company is solely responsible for its statements.
D) Chris is incorrect, but any fine against a CEO under the act cannot exceed a nominal amount of $1,000.
E) Chris is incorrect. The act provides for harsh penalties, and a CEO who knows that the company's financial reports are incorrect, but who claims that they are truthful, can be heavily fined. Additionally, a CEO who destroys or changes financial documents to mislead can be heavily fined.

Question 58

According to the text, which of the following may be a part of the "how" in the WH process of decision making?

A) Public disclosure, universalization, security, and the Golden Rule
B) Values, public disclosure, and security
C) Profit maximization, security, and public disclosure
D) Whistle-blowing, the Golden Rule, values, and public disclosure
E) Public disclosure, universalization, and the Golden Rule

Question 59

A company has to dispose of bio-hazardous waste products. Dropping them in the landfill anonymously would be the cheapest solution, but the company does not do this because it is frightened of the bad publicity which could result if it was found out. In considering the possible complicity, the company's decision was shaped by the:

A) Public disclosure test
B) Profit motive
C) Golden rule
D) WPH Method
E) Universalization

Question 60

What does the value of efficiency mean?

A) To possess a large enough supply of goods and services to meet basic demands
B) To possess the capacity or resources to act as one wishes
C) To treat all humans identically, regardless of race, class, gender, age and sexual preference
D) To be safe from those wishing to interfere with your property rights
E) To maximize the amount of wealth in society

Question 61

A manager who deceives employees because he believes that the deception maximizes pleasure over pain is acting consistently with which ethical theory?

A) Act deontology
B) Ethical relativism
C) Act utilitarianism
D) Ethical fundamentalism
E) Rule utilitarianism

Question 62

A manager may think it is wrong to terminate a person whose spouse has a terminal illness because a company has an absolute obligation to support its employees when they are vulnerable. With which ethical theory is the business manager acting consistently?

A) Deontology
B) Ethical relativism
C) Act utilitarianism
D) Ethical fundamentalism
E) Rule utilitarianism

Question 63

A difficulty with the application of virtue ethics is ________.

A) The applicable categorical imperatives
B) The lack of agreement about the meaning of "the good life"
C) The applicable principle of rights
D) The ethics of care analysis
E) The lack of agreement regarding which rules on balance produce the greatest amount of pleasure for the greatest number of people

Question 64

The ethical system in which the development of virtues, or positive character traits such as courage, justice, and truthfulness, is the basis for morality is called ________.

A) Absolutism decision
B) Virtual analysis
C) Virtue ethics
D) Fundamentalist approach
E) Categorical imperative

Question 65

[Accounting Advice] Chris, a newly hired Certified Public Accountant, was asked by a business client, a chief executive officer, about the effect of the Sarbanes-Oxley Act on an accounting issue. Chris assured the client that the client should not be concerned about the act because it is very vague, unspecific, and difficult to understand. Chris also told the CEO that the CEO could not be held personally responsible, regardless of what happened, because only company business was involved. Finally, Chris told the CEO that there is no oversight involved with the act. Later that same day, Chris's coworker discovered that the CEO had been involved in misstating some financial reports and had also destroyed financial documents to cover up fraud. An employee at the company, Olivia, had informed the coworker as well as the SEC. When the issue was mentioned to the CEO, he immediately fired Olivia.
Does the Sarbanes-Oxley act create a board of oversight; and, if so, what is it called?

A) Chris is correct. No oversight board was created by the act.
B) Yes, a board called the Public Company Accounting Oversight Board was created by the act.
C) Yes, a board called the Public Accountability Commission was created by the act.
D) Yes, a board called the CPA Oversight Commission was created by the act.
E) Yes, a board called the Federal Accountability Commission was created by the act.

Question 66

The duties we owe others imply that humans have fundamental rights. This ________ is foundational to Western culture and asserts that whether a business decision is ethical depends on how the decision effects the rights of all involved.

A) Cost-benefit analysis
B) Rule of reason
C) Situational realism
D) Ethical relativism
E) Principle of rights

Question 67

[Fast Food Dilemma] Aiden, who just started at his new job as an assistant manager at a fast-food restaurant, wants to make a good impression. He thinks that things are going well. On only the second day on the job, however, he sees his manager, Debbie, slink out of the restaurant with a big box of hamburgers. She puts them in her car and speeds away. Aiden is fairly certain that Debbie did not pay for the hamburgers. Aiden asks advice of his best friend, Kyle; his girlfriend, Mia; his sister, Katie; and his dad, Joe. Kyle says that there are no real objective standards and that Aiden should just decide to do what is best for himself. Mia says that Aiden should think about the consequences and focus on the greatest benefit to all involved. She believes that it will do no real harm for Aiden to keep his mouth shut because the fast-food restaurant is making plenty of money and probably does not pay Debbie enough anyway. Plus, getting in trouble with Debbie could cause problems at work, and if Aiden loses his job, Aiden and Mia might have to put off their impending marriage. Katie says that on balance, following the rule of producing the greatest good would mean that he should report Debbie to her boss because stealing does not generally produce the greatest satisfaction. Aiden's dad says that as a matter of principle, Aiden should report Debbie to her boss because stealing is simply wrong.
Which theory most accurately fits the advice given by Katie?

A) Deontology
B) Act utilitarianism
C) Rule utilitarianism
D) Ethical relativism
E) Virtue ethics

Question 68

How is absolutism different from ethical relativism and situational ethics?

A) It applies utilitarianism.
B) It holds that a cost-benefit analysis should be applied.
C) It holds that whether an action is moral does not depend on the perspective of the person facing the ethical dilemma.
D) It applies virtue ethics and concentrates on the accepted values of the person at issue as well as those of the community involved.
E) It applies corporate ethics principles.

Question 69

________ is one type of consequentialism.

A) Deontology
B) Categorical imperatives
C) Utilitarianism
D) Relativism
E) Activism

Question 70

[Fast Food Dilemma] Aiden, who just started at his new job as an assistant manager at a fast-food restaurant, wants to make a good impression. He thinks that things are going well. On only the second day on the job, however, he sees his manager, Debbie, slink out of the restaurant with a big box of hamburgers. She puts them in her car and speeds away. Aiden is fairly certain that Debbie did not pay for the hamburgers. Aiden asks advice of his best friend, Kyle; his girlfriend, Mia; his sister, Katie; and his dad, Joe. Kyle says that there are no real objective standards and that Aiden should just decide to do what is best for himself. Mia says that Aiden should think about the consequences and focus on the greatest benefit to all involved. She believes that it will do no real harm for Aiden to keep his mouth shut because the fast-food restaurant is making plenty of money and probably does not pay Debbie enough anyway. Plus, getting in trouble with Debbie could cause problems at work, and if Aiden loses his job, Aiden and Mia might have to put off their impending marriage. Katie says that on balance, following the rule of producing the greatest good would mean that he should report Debbie to her boss because stealing does not generally produce the greatest satisfaction. Aiden's dad says that as a matter of principle, Aiden should report Debbie to her boss because stealing is simply wrong.
Which theory most accurately fits the advice given by Kyle?

A) Deontology
B) Act utilitarianism
C) Rule utilitarianism
D) Ethical relativism
E) Virtue ethics

Question 71

[Fast Food Dilemma] Aiden, who just started at his new job as an assistant manager at a fast-food restaurant, wants to make a good impression. He thinks that things are going well. On only the second day on the job, however, he sees his manager, Debbie, slink out of the restaurant with a big box of hamburgers. She puts them in her car and speeds away. Aiden is fairly certain that Debbie did not pay for the hamburgers. Aiden asks advice of his best friend, Kyle; his girlfriend, Mia; his sister, Katie; and his dad, Joe. Kyle says that there are no real objective standards and that Aiden should just decide to do what is best for himself. Mia says that Aiden should think about the consequences and focus on the greatest benefit to all involved. She believes that it will do no real harm for Aiden to keep his mouth shut because the fast-food restaurant is making plenty of money and probably does not pay Debbie enough anyway. Plus, getting in trouble with Debbie could cause problems at work, and if Aiden loses his job, Aiden and Mia might have to put off their impending marriage. Katie says that on balance, following the rule of producing the greatest good would mean that he should report Debbie to her boss because stealing does not generally produce the greatest satisfaction. Aiden's dad says that as a matter of principle, Aiden should report Debbie to her boss because stealing is simply wrong.
Which theory most accurately fits the advice given by Mia?

A) Deontology
B) Act utilitarianism
C) Rule utilitarianism
D) Ethical relativism
E) Virtue ethics

Question 72

An employer who cheats on his payroll and federal withholding tax because he believes that everyone has a right to cheat on their payroll tax would believe in a(n) ________.

A) Utilitarianism
B) Ethical relativism
C) Categorical imperative
D) Fundamentalist approach
E) Deontology

Question 73

Kantian ethics is associated with which of the following ethical theories?

A) Deontology
B) Act utilitarianism
C) Rule utilitarianism
D) Absolutism
E) Situational ethics

Question 74

An ethical theory that urges managers to take those actions that provide the greatest pleasure after having subtracted the pain or harm associated with the action in question is called ________.

A) Deontology
B) Utilitarianism
C) Kantian ethics
D) Absolutism
E) Ethical relativism

Question 75

________ would see murder in the realm of self-defense as a moral action as long as the murderer believes that the action is justified for his self-preservation.

A) Ethical relativism
B) Deontology
C) Categorical imperative
D) Absolutism
E) Kantian

Question 76

Which statement is true concerning the relationship between ethical relativism and situational ethics?

A) Like ethical relativism, situational ethics requires that we evaluate the morality of an action by imagining ourselves in the position of the person facing the ethical dilemma; but unlike ethical relativism, situational ethics allows us to judge other people's actions.
B) Like ethical relativism, situational ethics requires that we evaluate the morality of an action by imagining ourselves in the position of the person facing the ethical dilemma and also like ethical relativism, situational ethics allows us to judge the actions of others.
C) While the two theories are similar, ethical relativism upholds the existence of objective moral standards whereas situational ethics refuses to recognize the existence of objective moral standards.
D) Ethical relativism and situational ethics are the same theory.
E) There is no relationship between ethical relativism and situational ethics because the theories are fundamentally opposed to each other.

Question 77

The advice given by Joe most accurately fits which theory?

A) Deontology
B) Act utilitarianism
C) Rule utilitarianism
D) Ethical relativism
E) Virtue ethics

Question 78

________ requires that we evaluate the morality of an action by putting ourselves in the position of the person that is facing the ethical dilemma.

A) Positive realism
B) Ethical relativism
C) Situational ethics
D) Kantian ethics
E) Relativity ethics

Question 79

Unlike ethical relativism and situational ethics, ________ holds that whether an action is moral does not depend on the perspective of the person facing the ethical dilemma.

A) Ethical positivism
B) Moral responsibility
C) Social responsibility
D) Ethical absolutism
E) Absolutism

Question 80

What is a reason why the principle of deontology may be difficult to apply?

A) People disagree about what duties we owe to one another and which duties are more important.
B) People disagree about whether consequences are positive or negative.
C) People disagree about the ethics of care.
D) People disagree about what duties we owe to one another and also whether consequences are positive or negative.
E) People disagree about what duties we owe to one another, whether consequences are positive or negative, and about the ethics of care.