chp. 5 ethics quiz - due 5/16/07

 

Multiple Choice

Identify the letter of the choice that best completes the statement or answers the question.

 

____ 1. Mack is sales manager for National Products, Inc. Compared to Mack's personal activities, his business activities involve

a. more complex ethical standards.

b. simpler ethical standards.

c. the same ethical standards.

d. no ethical standards.

 

 

____ 2. Tim works for Universal Sales Company. His job includes putting "spin" on the company's successes and failures. In this context, ethics consist of

a. questions of rightness and wrongness.

b. the firm's quarterly revenue.

c. whatever is legal.

d. none of the above.

 

 

____ 3. Any decision by the management of Standard Business Corporation may significantly affect its

a. operators only.

b. operators, owners, suppliers, the community, or society as a whole.

c. owners only.

d. suppliers, the community, or society as a whole only.

 

 

____ 4. Eagle Manufacturing Corporation could demonstrate a commitment to ethical behavior by

a. complying with the law only.

b. implementing ethical programs only.

c. making a profit only.

d. complying with the law, establishing ethics codes, and making money.

 

 

____ 5. Ace Company manages its employees' retirement benefit plan. With respect to this plan, Ace has

a. a fiduciary duty.

b. a subsidiary duty.

c. a utilitarian duty.

d. no duty.

 

 

____ 6. Sam, the human resources director for Total Personnel Corporation, attempts to comply with the law in dealing with applicants and employees. One of the challenges Sam faces is that the legality of an action is

a. always clear.

b. never clear.

c. sometimes clear.

d. usually clear.

 

 

____ 7. Many consumers misuse the products of Midwest Manufacturing, Inc., and are injured. In terms of responsibility for the consequences, Midwest may have

a. an ethical duty only.

b. a legal duty only.

c. an ethical and a legal duty.

d. neither an ethical nor a legal duty.

 

 

____ 8. Jill lies to her family. According to legal and ethical principles, this is

a. illegal.

b. unethical.

c. illegal and unethical.

d. none of the above.

 

 

____ 9. Rob, the owner of Super Stores, Inc., adheres to the "principle of rights" theory. Under this theory, a key factor in determining whether a business decision is ethical is how that decision affects

a. the right determination under a cost-benefit analysis.

b. the rights of others.

c. the "right" thing to do.

d. the right to make a profit.

 

 

____ 10. Kay follows certain religious principles. With respect to the behavior of Kay and other adherents of her religion, its principles are most likely

a. absolute.

b. changeable.

c. flexible.

d. vague.

 

 

____ 11. Dina, an accountant for Excel Financial, Inc., attempts to apply the duty approach to ethical reasoning in conflicts that occur on the job. This approach is based on the idea that a person must

a. achieve the greatest good for the most people.

b. avoid unethical behavior regardless of the consequences.

c. conform to society's ethical standards.

d. place his or her employer's interest first.

 

 

____ 12. Tina, the chief financial officer for USA Products Corporation, attempts to apply Christian precepts in making ethical decisions and in doing business. In applying duty-based ethical standards that are derived from a religious source, Tina would consider the motive behind an act to be

a. irrelevant.

b. the least important consideration.

c. the most important consideration.

d. the only consideration.

 

 

____ 13. International Distribution Corporation suggests that its employees apply the "categorical imperative" to ethical issues that arise at work. This requires that the employees

a. categorize the issues according to legality, morality, and profitability.

b. consider only the benefits that would accrue to them personally.

c. look only at the result, regardless of the means to attain it.

d. weigh the consequences that would follow if everyone took the same action.

 

 

____ 14. John decides to cheat on an examination to get into graduate school so that he can later volunteer to serve the needy with better skills. From an ethical perspective, John decides that

a. the "end" of his action justifies the "means."

b. the "means" of his action justifies the "end."

c. the "end" and the "means" of his action justify each other.

d. the "end" of his action can never justify the "means."

 

 

____ 15. Holly, a lawyer on the staff of International Group, applies the utilitarian theory of ethics in business contexts. Utilitarianism focuses on

a. moral values.

b. religious beliefs.

c. the consequences of an action.

d. the nature of an action.

 

 

____ 16. Tom, in making marketing decisions for United Products, Inc., takes a utilitarian perspective. A characteristic statement of this philosophy is

a. "an action is morally correct when, among the people it affects, it produces the greatest amount of good for the greatest number."

b. "for every action, there is an equal and opposite reaction."

c. "life in a state of nature is nasty, brutish, and short."

d. "the pursuit by individuals of their self-interest will result in a corresponding increase in societal welfare."

 

 

____ 17. Harry, a vice-president of International Pharmaceuticals, Inc., does not apply utilitarianism to business ethical issues. One problem with utilitarianism is that it

a. gives business profits priority over production costs.

b. ignores the practical costs of a given set of circumstances.

c. requires complex cost-benefit analyses of simple situations.

d. tends to justify human costs that many find unacceptable.

 

 

____ 18. In making decisions for United Merchandising Company, Jay uses a cost-benefit analysis. This is part of

a. duty-based ethics.

b. Kantian ethics.

c. the principle of rights.

d. utilitarianism.

 

 

____ 19. To assist in detecting illegal bribes, Eagle, Inc., and all U.S. companies, must

a. conceal financial records that reveal past bribes.

b. keep records that "accurately and fairly" reflect financial activities.

c. make bribes through third parties rather than directly to officials.

d. permit payments to foreign officials that are unlawful in that country.

 

 

____ 20. International Manufacturing Corporation's side payments to government officials in exchange for favorable business contracts in foreign countries are considered, in the United States,

a. illegal and unethical.

b. illegal only.

c. neither illegal nor unethical.

d. unethical only.

 

____ 21. In studying business law, Professor Smith's students also study ethics in a business context. Ethics is the study of what constitutes

a. financially rewarding behavior.

b. legal behavior.

c. religious behavior.

d. right or wrong behavior.

 

 

____ 22. Mary works in the public relations department of National Sales Company. Her job includes portraying National's activities in their best light. In this context, ethics consist of

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 National's "face."

 

 

____ 23. Commercial Products Company (CPC) markets its products nationwide. When making a decision, CPC must take into account the needs of

a. consumers and employees.

b. owners and shareholders.

c. society and the community.

d. all of the above.

 

 

____ 24. The ethical dilemma faced by the management of International Chemical Corporation, and other business firms, in many circumstances involves the effect that a decision will have

a. in favor of one group against another group.

b. on the firm's competitors.

c. on the government.

d. all of the above.

 

 

____ 25. International Sales Corporation, like other businesses, has duties prescribed by

a. ethics and the law.

b. ethics only.

c. neither ethics nor the law.

d. the law only.