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Chp 5 Ethics and Business Decision Making

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Quizzes-Law 10-Fall 2012



1. John is sales manager for Kleen ‘N Brite Products, Inc. Compared to John’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. Lia works for Media Marketing Company. Her job includes putting “spin” on the firm’s successes and failures. In this context, ethics consist


a. “bad” versus “good” publicity.

b. questions of rightness and wrongness.

c. the firm’s quarterly revenue.

d. whatever is legal.

3. Superior Corporation engages in ethical behavior solely for the purpose of getting good publicity and thereby increasing profits. Superior is

a. acting unethically in its pursuit of publicity.

b. acting unethically in its pursuit of profits.

c. acting unethically in its setting of priorities.

d. not acting unethically.

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

a. absolute.

b. changeable.

c. flexible.

d. vague.

5. 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 most likely consider the motive behind an act to be

a. irrelevant.

b. the least important consideration.

c. the most important consideration.

d. the only consideration.

6. Dion, an accountant for Engineering Associates, 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.

7. 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.

8. Global 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 acted the same.

9. In deciding questions of corporate social responsibility, Mega Deals, Inc., is concerned with

a. how the corporation can best fulfill its duty to society.

b. the effect on corporate profits of ignoring any duty to society.

c. whether the corporation owes a duty to society.

d. all of the choices.

10. 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.”

11. 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.

12. In making decisions for United Merchandising Company, Viv uses a cost-benefit analysis. This is part of

a. duty-based ethics.

b. Kantian ethics.

c. the principle of rights.

d. utilitarianism.

13. 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.

14. 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.

15. Macro Manufacturing, Inc., needs to cut costs by downsizing. In determining which employees to discharge, Macro will most likely weigh

a. its ethical duty to long-term employees and the legality of discharging older workers only.

b. its ethical duty to long-term employees, its profit margin, and the legality of discharging older workers.

c. the legality of discharging older workers only.

d. no duty.

16. 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.

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

a. always clear.

b. never clear.

c. sometimes clear.

d. usually clear.

18. Some consumers misuse the products of Hardware Supplies, Inc., and are injured. In terms of responsibility, Hardware may have

a. a legal duty only.

b. an ethical and a legal duty.

c. an ethical duty only.

d. neither an ethical nor a legal duty.

19. Max lies to Nora, his spouse. This is

a. illegal and unethical.

b. illegal only.

c. neither illegal nor unethical only.

d. unethical only.

20. Equity Capital Corporation provides other firms with funds to expand operations. Questions of what is ethical involve the extent to which Equity has

a. a legal duty beyond those duties mandated by ethics.

b. an ethical duty beyond those duties mandated by law.

c. any duty beyond those mandated by both ethics and the law.

d. any duty when it is uncertain whether a legal duty exists.

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