Question 1

Which of the following situations reflects a possible conflict of interest?

Accepted Answer

A)   You offer a company contract to a friend without checking competing bids.
B)   You hire a relative for a company position although another candidate is more qualified.
C)   You buy a piece of realty that would be suitable for a planned company project.
D)   All of the above.E) C) and D)
F) A) and B)

Question 2

Recognizing that an ethical dilemma exists is usually far more difficult than resolving the dilemma once its existence is recognized.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is not a question business ethicist Laura Nash has developed to help businesspeople reach the right decision in ethical dilemmas?

Accepted Answer

A)   Have you defined the problem accurately?
B)   How would you define the problem if you stood on the other side of the fence?
C)   How did the situation occur in the first place?
D)   Does your proposed solution to the problem effectively balance the competing objectives of ethical decision-making and corporate profitability?E) B) and C)
F) A) and D)

Question 4

The importance of trust as a fundamental principle underlying business transactions is illustrated by expectations that:

Accepted Answer

A)   investors will be able to earn a return on their investments.
B)   employees may be discharged at any time for any reason without notice.
C)   litigation is inevitable because parties to agreements usually break promises.
D)   insider trading proves that the economic system underlying business is flawed.E) None of the above
F) A) and D)

Question 5

Protection against fraud and exploitation are found both in securities laws and Food and Drug Administration regulations.

Accepted Answer

A) True 
 B)False

Question 6

Evidence suggests that there may be relationships among ethical customer and employee relations and long-term ability to pay dividends.

Accepted Answer

A) True 
 B)False

Question 7

The field of business ethics recognizes that social values typically must yield to the profitability motive.

Accepted Answer

A) True 
 B)False

Question 8

Among the guidelines for balancing the interests of various stakeholders to resolve ethical dilemmas in business are:

Accepted Answer

A)   identify potential parties who could be injured by the proposed action.
B)   define the problem from both the decision maker's and opposing viewpoints.
C)   ask whether you would be willing to describe a proposed action to your family, the board of directors, a congressional hearing, or other public forum.
D)   all of the above.E) B) and D)
F) C) and D)

Question 9

Ethics is a philosophical concept that deals with values related to the nature of human conduct.

Accepted Answer

A) True 
 B)False

Question 10

There is often a conflict between the goal of making money for shareholders and the goal of solving social problems through business.

Accepted Answer

A) True 
 B)False

Question 11

Laws such as those authorizing tax collection and draft registration exist primarily:

Accepted Answer

A)   because they are morally justified.
B)   to protect individual health and welfare.
C)   to protect individual property rights.
D)   to enable the government to continue to function.E) A) and D)
F) B) and D)

Question 12

The ethical category of fairness is best expressed as:

Accepted Answer

A)   Do unto others as you would have them do unto you.
B)   Let the buyer beware.
C)   He who laughs last laughs best.
D)   No harm, no foul.E) All of the above
F) C) and D)

Question 13

Voluntary improvements in the fairness and ethics of business behavior are:

Accepted Answer

A)   less effective than those brought about by government regulation.
B)   less costly and intrusive than those brought about by government regulation.
C)   virtually nonexistent in corporate America.
D)   more common in third-world countries than in the United States.E) B) and D)
F) None of the above

Question 14

Unfortunately, there is no evidence that commitment to ethical values is linked with financial performance of business organizations.

Accepted Answer

A) True 
 B)False

Question 15

Situational ethics is a moral system whose rigidity makes it unnecessary to examine motivation behind conduct in order to label it right or wrong.

Accepted Answer

A) True 
 B)False

Question 16

Moral standards based on positive law may allow businesses to conduct themselves unfairly so long as their actions are not illegal.

Accepted Answer

A) True 
 B)False

Question 17

Laws that prohibit defamation, invasions of privacy, and discrimination exist primarily:

Accepted Answer

A)   for protection of the person.
B)   for protection of public health, safety, and morals.
C)   for protection of property.
D)   for protection of the state.E) A) and C)
F) B) and C)

Question 18

An accumulation of complaints from employees, customers, or investors can lead to imposition of restrictive new regulations and laws.

Accepted Answer

A) True 
 B)False

Question 19

Over half of all Fortune 500 firms train their employees to recognize and deal with particular types of behavior that breach their ethical codes.

Accepted Answer

A) True 
 B)False

Question 20

Despite the importance of ethical behavior for business success, few Fortune 500 companies have codes of ethics to resolve ethical dilemmas.

Accepted Answer

A) True 
 B)False

Exam 3: Business Ethics, Social Forces, and the Law

Which of the following is not a question business ethicist Laura Nash has developed to help businesspeople reach the right decision in ethical dilemmas?

Correct AnswerverifiedShow Answer

Voluntary improvements in the fairness and ethics of business behavior are:

Correct AnswerverifiedShow Answer

Situational ethics is a moral system whose rigidity makes it unnecessary to examine motivation behind conduct in order to label it right or wrong.

Correct AnswerverifiedShow Answer

Which of the following situations reflects a possible conflict of interest?

Correct AnswerverifiedShow Answer

Laws that prohibit defamation, invasions of privacy, and discrimination exist primarily:

Correct AnswerverifiedShow Answer

The ethical category of fairness is best expressed as:

Correct AnswerverifiedShow Answer

The importance of trust as a fundamental principle underlying business transactions is illustrated by expectations that:

Correct AnswerverifiedShow Answer

Despite the importance of ethical behavior for business success, few Fortune 500 companies have codes of ethics to resolve ethical dilemmas.

Correct AnswerverifiedShow Answer

Unfortunately, there is no evidence that commitment to ethical values is linked with financial performance of business organizations.

Correct AnswerverifiedShow Answer

An accumulation of complaints from employees, customers, or investors can lead to imposition of restrictive new regulations and laws.

Correct AnswerverifiedShow Answer

There is often a conflict between the goal of making money for shareholders and the goal of solving social problems through business.

Correct AnswerverifiedShow Answer

Among the guidelines for balancing the interests of various stakeholders to resolve ethical dilemmas in business are:

Correct AnswerverifiedShow Answer

Ethics is a philosophical concept that deals with values related to the nature of human conduct.

Correct AnswerverifiedShow Answer

Moral standards based on positive law may allow businesses to conduct themselves unfairly so long as their actions are not illegal.

Correct AnswerverifiedShow Answer

Over half of all Fortune 500 firms train their employees to recognize and deal with particular types of behavior that breach their ethical codes.

Correct AnswerverifiedShow Answer

The field of business ethics recognizes that social values typically must yield to the profitability motive.

Correct AnswerverifiedShow Answer

Laws such as those authorizing tax collection and draft registration exist primarily:

Correct AnswerverifiedShow Answer

Evidence suggests that there may be relationships among ethical customer and employee relations and long-term ability to pay dividends.

Correct AnswerverifiedShow Answer

Protection against fraud and exploitation are found both in securities laws and Food and Drug Administration regulations.

Correct AnswerverifiedShow Answer

Recognizing that an ethical dilemma exists is usually far more difficult than resolving the dilemma once its existence is recognized.

Correct AnswerverifiedShow Answer

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