Question 1

Enron Corporation was a private corporation dealing in a governmentally regulated market.

Accepted Answer

A) True 
 B)False

Question 2

Treasury Secretary Geitner had knowledge of the AIG bonuses but failed to stop them because they were ________ obligations between a private company and its employees.

Accepted Answer

The answer of Treasury Secretary Geitner had knowledge of the...

Question 3

Codes of ethics are insufficient and do not serve their proper purpose if they are intended only to ensure that company policies are legal.

Accepted Answer

A) True 
 B)False

Question 4

Ethical misconduct not only includes illegal and unethical practices but also includes questionable practices of managers and organizations.

Accepted Answer

A) True 
 B)False

Question 5

As a result of the Enron scandal, Congress passed the ________ Act, increasing management responsibilities and liabilities regarding those involved in the finances of public companies.

Accepted Answer

The answer of As a result of the Enron scandal,...

Question 6

What were the reasons offered to defend the fact that AIG had paid $165 million in bonuses to certain employees?

Accepted Answer

The answer of What were the reasons offered to defend...

Question 7

________ refers to having a conscious system in use for deciding moral dilemmas.

Accepted Answer

The answer of ________ refers to having a conscious system...

Question 8

George is 85 years old and Grace, his wife, is 83. They are on a fixed retirement budget and have no disposable income and no savings. Grace's doctor informs her that she requires a particular medicine that costs $84. They don't have money to buy the medicine, there are no relatives or friends to ask, and there are no programs that can provide them with the medicine money. Feeling he has no choice, George goes to the local bank and robs it, handing the teller a note demanding $84 in small bills. Discuss George's action from a moral and ethical point of view.

Accepted Answer

The answer of George is 85 years old and Grace,...

Question 9

Which of the following is not a challenge a common challenge to business ethics and values management?

Accepted Answer

A)  Ethics cannot be taught. 
B)  Complying with the law is all that a corporation needs to do to remain ethical. 
C)  Ethics cannot be managed. 
D)  Success is measured in profits and losses, not in ethical conduct.

Question 10

Faber College, founded in 1904, is an integral part of its surrounding community. Which of the following is a primary stakeholder in Faber College?

Accepted Answer

A)  the students 
B)  the authors of the textbooks sold to the bookstore for student purchase 
C)  the local bar that students frequent when they are not studying 
D)  the community newspaper that runs a weekly column discussing the events at Faber

Question 11

AIG caused a major political firestorm when, after receiving taxpayer bailout money, it distributed $165 million in performance bonuses to executive employees.

Accepted Answer

A) True 
 B)False

Question 12

Corporations, as business entities, cannot be charged with a crime; only the individuals who make up the company's officers and board can be charged.

Accepted Answer

A) True 
 B)False

Question 13

Kenneth Lay, Enron's CEO, is currently serving a prison sentence as a result of his fraudulent dealings that led to the Enron scandal.

Accepted Answer

A) True 
 B)False

Question 14

Mike's Bikes is a bicycle sales and repair shop in a small city. It sells new and used bikes with a narrow profit margin and does repairs at minimal costs. Frequently, if a child comes into the shop with a broken part or a flat tire, Mike's makes the repair for free if the child has no money. Mike's also provides a free one-hour repair class for those who want to learn how to fix their bikes. At large local organized bike rides Mike's provides free services, asking only for voluntary donations. Which theory of corporate social responsibility is Mike's exhibiting?

Accepted Answer

A)  the narrow view, or invisible hand theory 
B)  the moderate view, or government's hand theory 
C)  the hybrid view, or citizen's hand theory 
D)  the broad view, or management's hand theory

Question 15

Fly High Aviation provides maintenance for executive jets based on private contracts with corporations that maintain airplanes for company use. Which of the following is least likely to be a Fly High stakeholder?

Accepted Answer

A)  the mechanics who work for Sky High 
B)  the corporations that contract with Sky High for their services 
C)  the citizens who live near the airports that planes maintained by Sky High fly into 
D)  individuals who own Sky High stock

Question 16

Social responsibility is at its highest when the moderate view, or government's hand theory, of corporate social responsibility is utilized.

Accepted Answer

A) True 
 B)False

Question 17

The utilitarian approach to moral philosophy was founded by:

Accepted Answer

A)  Jeremy Bentham. 
B)  Immanuel Kant. 
C)  Cicero. 
D)  Kenneth Lay.

Question 18

The reputed mastermind of the Enron business model was:

Accepted Answer

A)  Kenneth Lay, founder and chief executive officer. 
B)  Jeffrey Skilling, chief operating officer. 
C)  Andrew Fastow, chief financial officer. 
D)  Rick Clausey, chief accounting officer.

Question 19

Tom's company has a code of ethics and a separate code of conduct. If he would like to find out about the company's expectations or requirements regarding community service, he would reference the code of ethics.

Accepted Answer

A) True 
 B)False

Question 20

KAM Corp. has separate codes of ethics and conduct. Each of the following would likely be included in its code of ethics except:

Accepted Answer

A)  expectations of privacy and dignity to be afforded others. 
B)  expectations of an individual's community service. 
C)  avoidance of conflicts of interest. 
D)  requirements of procedural due process and impartiality.

Exam 5: Business, Societal, and Ethical Contexts of Law

Enron Corporation was a private corporation dealing in a governmentally regulated market.

Treasury Secretary Geitner had knowledge of the AIG bonuses but failed to stop them because they were ________ obligations between a private company and its employees.

Codes of ethics are insufficient and do not serve their proper purpose if they are intended only to ensure that company policies are legal.

Ethical misconduct not only includes illegal and unethical practices but also includes questionable practices of managers and organizations.

As a result of the Enron scandal, Congress passed the ________ Act, increasing management responsibilities and liabilities regarding those involved in the finances of public companies.

What were the reasons offered to defend the fact that AIG had paid $165 million in bonuses to certain employees?

________ refers to having a conscious system in use for deciding moral dilemmas.

Which of the following is not a challenge a common challenge to business ethics and values management?

Faber College, founded in 1904, is an integral part of its surrounding community. Which of the following is a primary stakeholder in Faber College?

AIG caused a major political firestorm when, after receiving taxpayer bailout money, it distributed $165 million in performance bonuses to executive employees.

Corporations, as business entities, cannot be charged with a crime; only the individuals who make up the company's officers and board can be charged.

Kenneth Lay, Enron's CEO, is currently serving a prison sentence as a result of his fraudulent dealings that led to the Enron scandal.

Fly High Aviation provides maintenance for executive jets based on private contracts with corporations that maintain airplanes for company use. Which of the following is least likely to be a Fly High stakeholder?

Social responsibility is at its highest when the moderate view, or government's hand theory, of corporate social responsibility is utilized.

The utilitarian approach to moral philosophy was founded by:

The reputed mastermind of the Enron business model was:

Tom's company has a code of ethics and a separate code of conduct. If he would like to find out about the company's expectations or requirements regarding community service, he would reference the code of ethics.

KAM Corp. has separate codes of ethics and conduct. Each of the following would likely be included in its code of ethics except: