Deck 1: Law, Ethics, Business: An Introduction

Question 1

Laws must be static and unyielding in order to provide stability for a society.

Answer 1

False

Question 2

Which of the following statements best illustrates the view of "utilitarianism"?
I) From each according to his abilities, to each according to his needs.
II) The risk reasonably to be perceived defines the duty to be obeyed and risks imports relation; it is risk to another or to others within the range of apprehension.
III) An action is right when maximizing welfare and total well-being.
IV) Individuals should pursue his or her own self-interest, even at the expense of others.

A) I only
B) III only
C) I and II
D) I, II, and III

Answer 2

B

Question 3

Discuss how multinational corporations can be both a benefit and a detriment to society.

Answer 3

As a benefit, multinational corporations provide new jobs and produce new or less expensive goods and services. They introduce technology, capital, and skills to their host countries and raise the standard of living.
As a detriment, they have been blamed for taking advantage of weak and/or corrupt governments to exploit resources in developing countries; for implementing questionable safety, environmental, and financial practices; and for profiting from unsustainable technologies while using their political clout to block reasonable regulation. These corporations are implicated in some of the world's most pressing problems including the growing disparities between rich and poor and global climate change.

Question 4

Virtue ethics:

A) focuses on what human beings are capable of being.
B) develop from learning how to make choices in difficult situations.
C) accepts that individuals rarely reach moral excellence.
D) are based on the concept that a person's ethical beliefs are developed in childhood and do not change.

Question 5

All of the following are considered exceptions to the general rule that there is no duty to rescue except:

A) Pre-existing duty: For example, lifeguards have signed contracts agreeing to rescue people in exchange for pay and benefits.
B) Witnessing an accident: This creates a duty to step in and help the injured.
C) Employer: A duty exists to help an employee injured while working for that employer.
D) Endangerment: If one puts another in danger, they are obligated to rescue the person put in danger.

Question 6

Discuss the differences in utilitarianism and virtue ethics in making a decision.

Question 7

From where do ethical preferences originate?

Question 8

Which of the following statements regarding Benefit Corporations is true?

A) Benefit corporations are required to identify one or more specific benefit purposes.
B) Directors of benefit corporations are protected from all lawsuits from both shareholders and beneficiaries of the corporation's public benefit purpose.
C) Benefit corporations are incorporated under state law with the intent to be profitable.
D) All of these statements regarding benefit corporations are true.

Question 9

Explain why laws exist that do not impose a duty to rescue.

Question 10

Corporate director or officer decisions to dedicate corporate funds for social causes is called:

A) Corporate Social Responsibility (CSR)
B) Social Activism (SA)
C) Business Engagement in Environmental Situations (BEES)
D) Strategic Investment in Stakeholder Issues (SISI)

Question 11

Choose the statement regarding duty to rescue that is false:

A) There is no general duty to rescue an individual.
B) Individual freedom of dictates that a person should not be forced to act.
C) Under a liberal-communitarian approach, citizens owe a duty to the state to rescue other citizens.
D) When one taunts another person who then puts themselves in danger in response to the teasing, the teaser has a duty to rescue the person teased.

Question 12

According to Citizens United v. Federal Election Commission, which of the following is not a reason to allow corporations the right to spend money and advertise for political candidates?

A) Political speech is the most important, and most protected, speech that exists. It is crucial to the democratic process that political speech be encouraged and heard.
B) The immense wealth of a corporation allows it to be the most accurate in providing messages to people.
C) Independent expenditure by corporations do not give rise to corruption or the appearance of corruption.
D) Rapid changes in technology suggest laws restricting political speech should not be upheld.

Question 13

Select the best definition of ethics:

A) a set of rules for behavior.
B) a menu of options regarding what we must do.
C) a menu of options regarding what we should do.
D) standards that must be met to avoid penalty.

Question 14

According to deontological thinker Kant:
I) It is only acceptable to lie when done to protect an innocent person.
II) The level of respect owed to another is based on one's relationship to that person.
III) It is wrong to use another person unless mutual benefit is attached.
IV) Once chosen, actions will be repeated whenever the same situation arises.

A) I and III
B) II and IV
C) III and IV
D) I, III, and IV

Question 15

The Ethic of Care is:

A) A set of rules that explain how to prioritize those people affected by a decision so that a utilitarian analysis can be done successfully.
B) A set of universal principles, which applied evenly to all decisions will result in fairness and equity in ethical decisions.
C) The idea that we should all make decisions under the assumption that we don't know our station in life, that we could be the person most negatively impacted by the decision.
D) A set of principles that encourage decision makers to look at human relationships as a primary motivator for a decision.

Question 16

Describe the difference between the law and ethics.

Question 17

Which of the following views would be consistent with the free market ethics approach advocated by Milton Friedman?

A) Outsourcing to other countries is wrong because it is detrimental to the overall US economy.
B) When making decisions, corporate managers should consider the interests of all the corporation's stakeholders.
C) The only social responsibility of business is to increase profits in a legal and ethical manner.
D) Automating processes and replacing workers is unethical since it does not serve a greater good.

Question 18

Describe the philosophy of noted economist, Milton Friedman, on the issue of "free market ethics."

Question 19

Assuming a business ethical dilemma, which statement best illustrates Gilligan approach suggested in her theory of "The Ethics of Care"?

A) individual rights and justice for all
B) applies only to women and not men
C) care and responsibility to others
D) obedience to independent moral rules or duties

Question 20

Which of the following statements is INCORRECT regarding the rights of shareholders?
I) voting power on major issues and ownership in a portion of the company
II) right to transfer ownership and dividend entitlement
III) hire and fire management and select and appoint a chief executive

A) I and II
B) I, II, and III
C) I only
D) III only

Question 21

Discuss the similarities and differences between a traditional corporation and a benefit corporation.