BUL 5810 EXAM 1 FINAL STUDY PAPER 2026
COMPLETE QUESTIONS AND ANSWERS
◉ As __________ and others have argued, businesses are artificial
entities established to permit people to engage in profit-making, not
social activities.
a. Lawrence Kohlberg
b. Adam Smith
c. Adolf Berle
d. Milton Friedman. Answer: d. Milton Friedman
◉ Under a stakeholder model:
a. the ends justifies the means.
b. society should provide each person with equal amounts of goods
and services regardless of the contribution each makes to increase
society's wealth.
c. a corporation has fiduciary responsibilities to all of its
stakeholders.
,d. that if persons wish to act morally, they should emulate those in
the society who always seem to do the right thing. Answer: c. a
corporation has fiduciary responsibilities to all of its stakeholders.
◉ Under corporate social responsibility theory, to who(m) does the
chairman and CEO of the company owe an ethical duty?
A The shareholders of the company only.
B The workers, the community, and the shareholders.
C The workers and the shareholders only.
D Nobody, as the chairman and CEO, he should only do what he feels
is right. Answer: B The workers, the community, and the
shareholders.
◉ When the CEO of the company decides that he wants to pay the
workers while the plant is closed because "it is the right thing to do",
regardless of the consequences, what ethical philosophy is he likely
using?
A utilitarian ethics
B Business Process Pragmatism
C outcome-based ethics
,D duty-based ethics Answer: D Duty based ethics
◉ Which of the following would be the best argument to the
shareholders that paying the workers while the plant is under
construction is the right decision?
A That short-term profit maximization would be benefitted by the
move.
B That not paying them is illegal, and therefore would not meet the
standards of a moral minimum.
C That long-term profit maximization would be benefitted by the
move.
D That the triple bottom line would be hurt by this move. Answer: C
That long-term profit maximization would be benefitted by the
move.
◉ Kimmy Kant is a deontologist. She is thinking about lying on her
tax return. Under deontology is telling a lie unethical?
a. Lying is ethical if an individual feels it is right.
, b. If lying would maximize society's pleasure in general, then it is
ethical, but if it would not maximize society's general pleasure, it is
not.
c. A lie would be unethical if she has immoral motives.
d. It would be immoral to lie if one could not support the right of all
taxpayers to lie on their returns. Answer: c. A lie would be unethical
if she has immoral motives.
◉ Through his observation of human behavior, psychologist
Lawrence Kohlberg developed a model of moral development. Stan
is operating at the preconventional level. Would he stop at a stop
sign?
a. Stan would stop at the sign only if an outside source, such as his
pastor, suggested that he stop at all stop signs.
b. Stan would stop at the stop sign because it feels good to follow the
law.
c. Stan would stop at the sign only if he was fearful of being caught
by a police officer for not stopping.
d. Stan would stop at the stop sign if his colleagues were driving in
front of him and stopped at the stop sign, too. Answer: c. Stan would
COMPLETE QUESTIONS AND ANSWERS
◉ As __________ and others have argued, businesses are artificial
entities established to permit people to engage in profit-making, not
social activities.
a. Lawrence Kohlberg
b. Adam Smith
c. Adolf Berle
d. Milton Friedman. Answer: d. Milton Friedman
◉ Under a stakeholder model:
a. the ends justifies the means.
b. society should provide each person with equal amounts of goods
and services regardless of the contribution each makes to increase
society's wealth.
c. a corporation has fiduciary responsibilities to all of its
stakeholders.
,d. that if persons wish to act morally, they should emulate those in
the society who always seem to do the right thing. Answer: c. a
corporation has fiduciary responsibilities to all of its stakeholders.
◉ Under corporate social responsibility theory, to who(m) does the
chairman and CEO of the company owe an ethical duty?
A The shareholders of the company only.
B The workers, the community, and the shareholders.
C The workers and the shareholders only.
D Nobody, as the chairman and CEO, he should only do what he feels
is right. Answer: B The workers, the community, and the
shareholders.
◉ When the CEO of the company decides that he wants to pay the
workers while the plant is closed because "it is the right thing to do",
regardless of the consequences, what ethical philosophy is he likely
using?
A utilitarian ethics
B Business Process Pragmatism
C outcome-based ethics
,D duty-based ethics Answer: D Duty based ethics
◉ Which of the following would be the best argument to the
shareholders that paying the workers while the plant is under
construction is the right decision?
A That short-term profit maximization would be benefitted by the
move.
B That not paying them is illegal, and therefore would not meet the
standards of a moral minimum.
C That long-term profit maximization would be benefitted by the
move.
D That the triple bottom line would be hurt by this move. Answer: C
That long-term profit maximization would be benefitted by the
move.
◉ Kimmy Kant is a deontologist. She is thinking about lying on her
tax return. Under deontology is telling a lie unethical?
a. Lying is ethical if an individual feels it is right.
, b. If lying would maximize society's pleasure in general, then it is
ethical, but if it would not maximize society's general pleasure, it is
not.
c. A lie would be unethical if she has immoral motives.
d. It would be immoral to lie if one could not support the right of all
taxpayers to lie on their returns. Answer: c. A lie would be unethical
if she has immoral motives.
◉ Through his observation of human behavior, psychologist
Lawrence Kohlberg developed a model of moral development. Stan
is operating at the preconventional level. Would he stop at a stop
sign?
a. Stan would stop at the sign only if an outside source, such as his
pastor, suggested that he stop at all stop signs.
b. Stan would stop at the stop sign because it feels good to follow the
law.
c. Stan would stop at the sign only if he was fearful of being caught
by a police officer for not stopping.
d. Stan would stop at the stop sign if his colleagues were driving in
front of him and stopped at the stop sign, too. Answer: c. Stan would
