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Test Bank For Dynamic Business Law 4E
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All Chapters Covered | Rated A+ | Newest Edition | Exam-Ready
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Chapter 02 Business Ethics
MULTIPLE CHOICE QUESTIONS
1) Ethical conversation is primarily about finding the one and only right thing to do.
A) True
B) False
2) Business ethics is the application of ethics to the special problems and opportunities experienced
by business people.
A) True
B) False
3) Business ethics results in a set of correct decisions.
A) True
B) False
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4) The only social responsibility that businesses have is to focus on how business decisions affect
company operations.
A) True
B) False
5) Insurer American International Group (AIG) is well known in the insurance industry for its
ethical business practices.
A) True
B) False
6) Legal rules governing contract laws have been shaped in large part by our sense of commercial
ethics.
A) True
B) False
7) In some countries, businesses must pay bribes to receive supplies they need to stay in business.
A) True
B) False
8) In an ethical analysis using the WPH Framework referenced in the text, owners are the most
important stakeholders and should receive the greatest consideration in decision making
regardless of the type of problem addressed.
A) True
B) False
1
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9) Under the WPH framework for ethical business decisions, business decisions are made in pursuit
of a particular purpose and are instruments toward an ethical end.
A) True
B) False
10) The terms shareholder and stakeholder have the same meaning.
A) True
B) False
11) The community in which a firm operates would not be considered a stakeholder of the firm.
A) True
B) False
12) Ethical relativism and situational ethics mean the same thing.
A) True
B) False
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13) Consequentialism provides a rigid set of rules to follow regardless of the situation.
A) True
B) False
14) One form of consequentialism is utilitarianism.
A) True
B) False
15) Ethical issues do not exist in accounting because the field involves primarily objective data.
A) True
B) False
2
Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
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DOWNLOAD THE Test Bank for Dynamic Business Law 4th Edition Kubasek
16) In the Case Opener, a defendant sought to dismiss a plaintiff's case against Accutane arising from
allegations that Accutane caused ulcerative colitis and irritable bowel syndrome. Which of the
following court rulings was the result of the defendant's motion to dismiss based on statute of
limitation grounds?
A) That the statute of limitations began to run on the plaintiff's claim when the risk of the drug
was discovered by the manufacturer, not on the date on which the plaintiff became aware of
the risk and that the statute of limitations, therefore, barred her claim.
B) That the defendant committed fraud preventing it from relying on the statute of limitations.
C) That because the plaintiff was warned by her doctor of specific risks caused by the
medication, the statute of limitations began to run prior to the time she became aware of an
advertisement discussing the risk; and the statute of limitations barred her claim.
D) That in lawsuits involving this type of drug, there is no statute of limitations because each
day the plaintiff suffers from pain results in the beginning of a new cause of action.
E) That because the plaintiff was not warned by her doctor of specific risks caused by the
medication, the statute of limitations did not begin to run until she became aware of an
advertisement discussing the risk.
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17) Which of the following presents a problem when considering the theory of ethics known as
absolutism?
A) The fact that most individuals associated with this theory have been proven to have acted to
the detriment of their followers in one way or another.
B) The allegation that an excessive number of followers actually follow consequentialism.
C) The unquestionable nature of the rules in most absolutist repositories seems overly
inflexible when applied to different situations.
D) The lack of objectivity.
E) The questionable nature of the rules in most absolutist repositories seems overly flexible
when applied to different situations.
18) Which of the following is the application of ethics to special problems and opportunities
experienced by those in business?
A) Business utilitarianism
B) Business ethics
C) Situational ethics
D) Sarbanes-Oxley principles
E) Consequentialism
3
Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
primedocs
mynursytest.store
Test Bank For Dynamic Business Law 4E
primedocs
All Chapters Covered | Rated A+ | Newest Edition | Exam-Ready
primedocs
, primedocs
DOWNLOAD THE Test Bank for Dynamic Business Law 4th Edition Kubasek
Chapter 02 Business Ethics
MULTIPLE CHOICE QUESTIONS
1) Ethical conversation is primarily about finding the one and only right thing to do.
A) True
B) False
2) Business ethics is the application of ethics to the special problems and opportunities experienced
by business people.
A) True
B) False
3) Business ethics results in a set of correct decisions.
A) True
B) False
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4) The only social responsibility that businesses have is to focus on how business decisions affect
company operations.
A) True
B) False
5) Insurer American International Group (AIG) is well known in the insurance industry for its
ethical business practices.
A) True
B) False
6) Legal rules governing contract laws have been shaped in large part by our sense of commercial
ethics.
A) True
B) False
7) In some countries, businesses must pay bribes to receive supplies they need to stay in business.
A) True
B) False
8) In an ethical analysis using the WPH Framework referenced in the text, owners are the most
important stakeholders and should receive the greatest consideration in decision making
regardless of the type of problem addressed.
A) True
B) False
1
Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
primedocs
mynursytest.store
, primedocs
DOWNLOAD THE Test Bank for Dynamic Business Law 4th Edition Kubasek
9) Under the WPH framework for ethical business decisions, business decisions are made in pursuit
of a particular purpose and are instruments toward an ethical end.
A) True
B) False
10) The terms shareholder and stakeholder have the same meaning.
A) True
B) False
11) The community in which a firm operates would not be considered a stakeholder of the firm.
A) True
B) False
12) Ethical relativism and situational ethics mean the same thing.
A) True
B) False
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13) Consequentialism provides a rigid set of rules to follow regardless of the situation.
A) True
B) False
14) One form of consequentialism is utilitarianism.
A) True
B) False
15) Ethical issues do not exist in accounting because the field involves primarily objective data.
A) True
B) False
2
Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
primedocs
mynursytest.store
, primedocs
DOWNLOAD THE Test Bank for Dynamic Business Law 4th Edition Kubasek
16) In the Case Opener, a defendant sought to dismiss a plaintiff's case against Accutane arising from
allegations that Accutane caused ulcerative colitis and irritable bowel syndrome. Which of the
following court rulings was the result of the defendant's motion to dismiss based on statute of
limitation grounds?
A) That the statute of limitations began to run on the plaintiff's claim when the risk of the drug
was discovered by the manufacturer, not on the date on which the plaintiff became aware of
the risk and that the statute of limitations, therefore, barred her claim.
B) That the defendant committed fraud preventing it from relying on the statute of limitations.
C) That because the plaintiff was warned by her doctor of specific risks caused by the
medication, the statute of limitations began to run prior to the time she became aware of an
advertisement discussing the risk; and the statute of limitations barred her claim.
D) That in lawsuits involving this type of drug, there is no statute of limitations because each
day the plaintiff suffers from pain results in the beginning of a new cause of action.
E) That because the plaintiff was not warned by her doctor of specific risks caused by the
medication, the statute of limitations did not begin to run until she became aware of an
advertisement discussing the risk.
primedocs
17) Which of the following presents a problem when considering the theory of ethics known as
absolutism?
A) The fact that most individuals associated with this theory have been proven to have acted to
the detriment of their followers in one way or another.
B) The allegation that an excessive number of followers actually follow consequentialism.
C) The unquestionable nature of the rules in most absolutist repositories seems overly
inflexible when applied to different situations.
D) The lack of objectivity.
E) The questionable nature of the rules in most absolutist repositories seems overly flexible
when applied to different situations.
18) Which of the following is the application of ethics to special problems and opportunities
experienced by those in business?
A) Business utilitarianism
B) Business ethics
C) Situational ethics
D) Sarbanes-Oxley principles
E) Consequentialism
3
Copyright © McGraw-Hill Education.All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
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