Question 1

Bilt-Well Construction Corporation makes a side payment to a government official in Nigeria to obtain a contract. In the United States, this is

Accepted Answer

A)   illegal and unethical.
B)   illegal but not unethical.
C)   unethical but not illegal.
D)   legal and ethical. A

Question 2

It is not possible to violate a business regulation without realizing it.

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 individual 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. C

Question 4

Ethical codes of conduct can set the ethical tone of a firm.

Accepted Answer

A) True 
 B)False

Question 5

David, the chief accounting officer of Tension Fencing Corporation, wants to be sure that all the company's accounts are legal and ethical. Sometimes, however, he is unsure exactly what is legal and what is illegal. David should

Accepted Answer

A)   not worry about what is legal or illegal as long as the corporate executives benefit in the short run.
B)   try his best to not do anything illegal and keep documentation showing that he always acts in good faith.
C)   not worry about what is legal or illegal as long as it benefits the shareholders.
D)   not worry about what is legal or illegal as long as it benefits the chief executive of the corporation.

Question 6

Eden, the chief executive officer of Flo-Thru Piping Corporation, wants to ensure that Flo-Thru's activities are legal and ethical. The best course for Eden and Flo-Thru is to act in

Accepted Answer

A)   good faith.
B)   ignorance of the law.
C)   regard for the firm's shareholders only.
D)   their own self interest.

Question 7

Whirlwind Financial Corporation sends its executives to a resort in Mexico-at taxpayers' expense-to consider using the firm's cash to buy back its stock and thereby prop up the value. Many of its competitors are doing the same thing. One of the best ways to learn about the ethical responsibilities inherent in operating a business is to look at

Accepted Answer

A)   the mistakes made by other companies.
B)   the benefits of pursuing profit despite the appearance of impropriety.
C)   the prevalence of a practice among other corporations.
D)   who is footing the bill for a particular action.

Question 8

Carrie Ann works at Paper Products, Inc. She considers taking home a few sheets of stationery so she can write letters to her ailing grandmother. Since Paper Products produces thousands of sheets of stationery every day no one will miss the few sheets she takes and company profits will not be affected. Carrie Ann then considers what would happen if every employee took some stationery home and decides not to take any. Carrie Ann is being influenced by

Accepted Answer

A)   the categorical imperative.
B)   the principle of rights.
C)   a cost-benefit analysis.
D)   outcome-based ethics.

Question 9

Applied Business Corporation makes and markets its products nationwide. Under the stakeholder approach, to be considered socially responsible when making a business decision, Applied must take into account the needs of

Accepted Answer

A)   its consumers, the community, and society only.
B)   its employees and owners only.
C)   its employees, owners, consumers, the community, and society.
D)   no one.

Question 10

If the interests of different stakeholders conflict, it can be difficult to determine which group's interest should receive greater weight.

Accepted Answer

A) True 
 B)False

Question 11

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.

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

The legality of an action is always clear.

Accepted Answer

A) True 
 B)False

Question 14

EthicsPoint is an organization through which employees can report unethical behavior as long as they are willing to identify themselves.

Accepted Answer

A) True 
 B)False

Question 15

Bribery of foreign government officials is both an ethical and a legal issue.

Accepted Answer

A) True 
 B)False

Question 16

Megan is the ethics officer for Nature's Eggs, Inc., an organic egg raising company. In overseeing the application of the company's ethical code of conduct, Megan is most likely not in charge of

Accepted Answer

A)   an ethics committee.
B)   ethical training programs.
C)   internal ethical audits.
D)   ethical reviews of employees' family members.

Question 17

Mary works in the public relations department of New Trends Sales Company. Her job includes portraying New Trends's activities in their best light. In this context, ethics consist of

Accepted Answer

A)   a different set of principles from those that apply to other activities.
B)   the same moral principles that apply to non-business activities.
C)   those principles that produce the most favorable financial outcome.
D)   whatever saves New Trends's "face."

Question 18

Housemate, Inc., makes and sells a variety of household products. With a fair amount of certainty, Housemate's decision makers can predict whether a given business action would be legal in

Accepted Answer

A)   all situations.
B)   many situations.
C)   no situations.
D)   practically no situations.

Question 19

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."

Question 20

In judging her action as a corporate employee of Music Notes Corporation, Brooke always lets her conscience be her guide. As an effective alternative, Brooke could

Accepted Answer

A)   ask herself whether she would be happy to be interviewed by the national media about the action.
B)   consider only the benefits that would accrue to her personally.
C)   look only at the result, regardless of the means to attain it.
D)   consider how she would like to have others treat her in a similar situation.

Exam 7: Ethics and Business Decision Making

Bilt-Well Construction Corporation makes a side payment to a government official in Nigeria to obtain a contract. In the United States, this is

It is not possible to violate a business regulation without realizing it.

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

Ethical codes of conduct can set the ethical tone of a firm.

David, the chief accounting officer of Tension Fencing Corporation, wants to be sure that all the company's accounts are legal and ethical. Sometimes, however, he is unsure exactly what is legal and what is illegal. David should

Eden, the chief executive officer of Flo-Thru Piping Corporation, wants to ensure that Flo-Thru's activities are legal and ethical. The best course for Eden and Flo-Thru is to act in

Applied Business Corporation makes and markets its products nationwide. Under the stakeholder approach, to be considered socially responsible when making a business decision, Applied must take into account the needs of

If the interests of different stakeholders conflict, it can be difficult to determine which group's interest should receive greater weight.

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

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

The legality of an action is always clear.

EthicsPoint is an organization through which employees can report unethical behavior as long as they are willing to identify themselves.

Bribery of foreign government officials is both an ethical and a legal issue.

Megan is the ethics officer for Nature's Eggs, Inc., an organic egg raising company. In overseeing the application of the company's ethical code of conduct, Megan is most likely not in charge of

Mary works in the public relations department of New Trends Sales Company. Her job includes portraying New Trends's activities in their best light. In this context, ethics consist of

Housemate, Inc., makes and sells a variety of household products. With a fair amount of certainty, Housemate's decision makers can predict whether a given business action would be legal in

In judging her action as a corporate employee of Music Notes Corporation, Brooke always lets her conscience be her guide. As an effective alternative, Brooke could