Question 1

"Act in such a way that you treat humanity, whether in your own person or in the person of any other, always at the same time as an end and never merely as a means to an end." Is a quote by

Accepted Answer

A)   Aristotle
B)   Kant
C)   John Calvin
D)   Thomas Aquinas B

Question 2

Monmouth Publishing employs very brilliant attorneys to search through the laws to find legal loopholes that benefit their profit margin. They find a legal loophole which allows them to require a certain sect of employees to work far under minimum wage, often times taking advantage of people. Therefore, they decide to fire all of their current employees in favor of the sect of employees that they can pay under minimum wage. Are they acting unethically?

Accepted Answer

A)   No. As long as they are not breaking the law it is always ethical.
B)   Yes. Firing employees for any other reason other than poor working ethic is always unethical.
C)   No. The law does not matter when businesses must choose what is ethical as making money is only considered.
D)   A particular act can be deemed unethical yet still be legal. D

Question 3

In a benefit corporation the shareholders evaluate the effectiveness and performance of the corporation based upon how much they benefit in profits.

Accepted Answer

A) True 
 B)False  False

Question 4

An ethical vision to guide the decision and behavior of a business's employees and managers is called

Accepted Answer

A)   A code of conduct
B)   A code of morality
C)   A code of ethics
D)   A code of virtue

Question 5

Lin-Mara's company has a code of ethics and a separate code of conduct. If she wants to be sure that she complies with the company dress code, she would reference the code of ethics.

Accepted Answer

The answer of Lin-Mara's company has a code of ethics...

Question 6

Brenna confronts Noah at work as he is continually taking packets of printer paper and pens from the office supply closest for his own personal use at home. Noah responds angrily that the employer had plenty of supplies and they would not even notice it. Brenna responded with the question, "But what would happen if everyone at work took some paper and pens?" Brenna's statement illustrates which type of theory of ethical decision making?

Accepted Answer

A)   Moral minimum
B)   Values management
C)   Narrow view
D)   Universalization test

Question 7

What is name of the company wherein several employees created millions of unauthorized bank and credit card accounts in clients' names without their consent or notice to boost the employees' sales figures?

Accepted Answer

A)   Bank of America
B)   AIG
C)   Wells Fargo
D)   Enron

Question 8

Which legal philosopher asserted that natural law is asserted by God, that it is authoritative over all human beings and it is knowable through the use of reason?

Accepted Answer

A)   Immanual Kant
B)   Aristotle
C)   Thomas Aquinas
D)   John Rawls

Question 9

Jerry, in making his business decisions always attempts to determine what will make the greatest number of people happy and least number of people hurt. Therefore, with that in mind, he fires the senior most employee, Reid, at his business only because he makes the most money. Jerry then takes Reid's salary and divides it up between the remaining 20 people. All 20 people are thrilled with their raises, but Reid obviously is not. What type of Ethical Decision-Making Regime does this most closely represent?

Accepted Answer

A)   Community standards
B)   Consequence-based
C)   Principals-based
D)   Contracts-based

Question 10

One advantage of a community-based nonprofit type of corporation is

Accepted Answer

A)   The community supports the endeavor
B)   It is tax-exempt
C)   Once deemed legitimate, face far less governmental regulations
D)   Is always founded on religious doctrine

Question 11

Religious documents, such as the Koran and the Old Testament utilize what type of ethical decision-making regime?

Accepted Answer

A)   Moral equivalency
B)   Invisible hand
C)   Principles-based approach
D)   Ethics-based approach

Question 12

Shirley is deeply faithful to her religion. Therefore, when making business decisions she bases her decisions only in her religious foundation. Which statement is true?

Accepted Answer

A)   She will always be ethically correct as ethics and religious teachings are always the same.
B)   It is unethical to allow one's religious teachings to influence their business decisions.
C)   Ethics and religious teaching often overlap because they are not separate and distinct in many situations. Therefore, where they overlap, they will be ethical.
D)   Since religion is the only foundation for business ethics, she will always be ethical.

Question 13

The broadest view of Corporate Social Responsibility is that corporations have a social responsibility to which profit is secondary is called

Accepted Answer

A)   Moral minimum theory
B)   Governmental hand theory
C)   Invisible hand theory
D)   Public theory

Question 14

The "Narrow View" of business ethics is a commitment to emphasizes the interests of shareholders in pursuing a course of action in business operations.

Accepted Answer

A) True 
 B)False

Question 15

After a rather unfortunate visit to the local hair salon, Janet asks John if the hair on the back of her head has been trimmed evenly and smoothly. John observes was not and actually she has many bald spots as a result of her haircut. According to Immanuel Kant's theory of ethical theory of categorical imperative ethical decision making regime, which one of the following statement should John make?

Accepted Answer

A)   "Yes! Your hair looks perfect!"
B)   "Yes! Your hair looks unique."
C)   "No! Your hair is not trimmed evenly and smoothly."
D)   "It is hard to determine what you mean."

Question 16

At a board meeting for Webster Corporation, the members of the board discuss how a fellow board member is addicted to alcohol and it is affecting his work performance and his personal life. As a board, they decide to pay for a very expensive rehabilitative program at a facility several states away in California, with corporate funds. This will be a very expensive endeavor, using about 10% of the current year's profit but they hope that their friend will overcome his addiction. One board member, Nolan, objects to this stating, that if they individually want to pay for his treatment with their own money, they can, but they cannot use corporate funds for this as their only ethical duty is to make as much profit as possible so that stakeholders can decide how they want to spend their money. Nolan is employing what type of ethical decision making view of corporate social responsibility?

Accepted Answer

A)   Maximizing profits theory of Friedman
B)   Government hand theory of Adam Smith
C)   Moral minimum theory of Sophocles
D)   Triple bottom line of Aquinas

Question 17

Under the theory of Milton Friedman, should a corporation donate money to charitable organizations?

Accepted Answer

A)   Yes. They should always balance the needs of helping society with the need to make money for the stakeholder.
B)   Yes. He believed, "First do no harm" which means that the role of the corporation is to help others before helping the corporation.
C)   No. While individual people are free to give money to charitable organizations, corporations have an ethical duty to shareholders to make as much money as possible.
D)   No, unless after a full background check to ensure that the charitable organization is legitimate.

Question 18

Which type of legal theory ethics states that if people negotiate from a veil of ignorance people will negotiate ethical principles that are fair to all?

Accepted Answer

A)   Virtue ethics
B)   Consequence-based ethics
C)   Principals-based ethics
D)   Contracts-based

Question 19

Because of the increased effort for businesses to create a Code of Conduct and a Code of ethics for business decisions

Accepted Answer

A)   There is one clear choice to resolve conflict.
B)   It has made ethical decision making to be much simpler
C)   Ethical dilemmas faced by employers are still often complex with no clear ethical choice.
D)   Must strictly interpret the plain meaning of the codes of ethics and conduct.

Question 20

A recognition that we all have the rights to "life, liberty and the pursuit of happiness" in the Preamble of the Declaration of Independence, according to Natural law, is a recognition of what type of rights?

Accepted Answer

A)   Inherent rights
B)   Judeo-Christian rights
C)   Explicit rights
D)   Moral rights

Exam 2: Business, Societal, and Ethical Contexts of Law