BUL MIDTERM EXAM QUESTIONS AND
ANSWERS
Data barn litigation cases have used which of these legal theories?
trespass
battery
nuisance
a and c - Correct Answers -a and c
In international business: - Correct Answers -trust and honesty are required for
investment and economic growth.
Which of the following actions would be permitted under the Friedman philosophy of
business involvement in social issues? - Correct Answers -a corporate contribution to a
mass transit system that will serve the offices of the company throughout the city
The state troopers in one state have a motto, "Nine you're fine; ten you're mine," which
is the standard that they use for pulling over speeders on the state highways. In other
words, if the posted speed limit is 55 mph, drivers can drive at a rate up to 64 mph
without fear of getting a ticket. Which of the following best describes the ethical culture
in the state? - Correct Answers -The troopers are following a normative standard.
Jane Tucker is the ethics officer for a publicly traded company. She is concerned that
the company does not have a mechanism for anonymous reports of issues by
employees. The CEO is not inclined to spend the money required to set up a hotline or
any other reporting mechanism. Which of the following statements is true about this
situation? - Correct Answers -Without an anonymous reporting system, the company
does not meet the minimum requirements for the protections of the Federal Sentencing
Guidelines.
Turing Pharmaceuticals increased the price of one of its drugs 5,000%. Its then-CEO
said that his primary responsibility was to Turing's shareholders. To whom would the
CEO's views be attributed? - Correct Answers -Milton Friedman
A code of ethics is an individual firm's behavior standard for employees. - Correct
Answers -true
Conflicts of interest can result in the use of quid pro quo. - Correct Answers -true
Which of the following ethical models incorporates conscience into the decision-making
process? - Correct Answers -Blanchard and Peale model
, Milton Friedman's standard for business social responsibility is one that requires a
company to do all that it can for its community. - Correct Answers -false
Condoning unethical behavior is an ethical breach. - Correct Answers -true
Which of the following is not a consequence of poor ethical choices by a company? -
Correct Answers -All of the above are consequences of poor ethical choices
Natural law and positive law are one and the same theories of moral standards. -
Correct Answers -false
Which of the following is not a requirement of Sarbanes-Oxley? - Correct Answers -both
a and c
Professor Ahlstrom asked her student, Jay Knopf, if he had a chance to look at the
reading assignment for the day's class. Knopf replied, "Yes, I have." When Professor
Ahlstrom asked Knopf a question about the reading, he did not know the answer.
Professor Ahlstrom said, "I thought you said you had read the assignment." Knopf
replied, "You didn't ask me if I had read the assignment, you asked me if I had a chance
to look at the assignment, and I did look." There is no ethical category that applies to
this situation. - Correct Answers -false
A relativist asks why someone is engaged in unethical or illegal conduct before
determining whether the conduct is right or wrong. - Correct Answers -true
A lack of business ethics can result in a lack of business goodwill. - Correct Answers -
true
An employer instituted a wellness program for all employees. The wellness program
includes an exercise facility and several pay incentives for losing weight, quitting
smoking, or beginning an exercise program. The program is not required under any
state or national laws. Which of the following schools of social responsibility applies to
this employer? - Correct Answers -enlightened self-interest school
The principle of stare decisis requires that all similar cases be decided the same way. -
Correct Answers -false
When a case is remanded: - Correct Answers -it is sent back to the trial court.
The U.S. Department of Defense (DOD) is bringing suits against several contractors in
Iraq who are alleged to have paid kickbacks to military personnel in order to win
contracts. The DOD wants portions of the contract prices paid refunded by the
contractors. The DOD suits against the contractors: - Correct Answers -will be heard in
federal district court or the court of claims.
ANSWERS
Data barn litigation cases have used which of these legal theories?
trespass
battery
nuisance
a and c - Correct Answers -a and c
In international business: - Correct Answers -trust and honesty are required for
investment and economic growth.
Which of the following actions would be permitted under the Friedman philosophy of
business involvement in social issues? - Correct Answers -a corporate contribution to a
mass transit system that will serve the offices of the company throughout the city
The state troopers in one state have a motto, "Nine you're fine; ten you're mine," which
is the standard that they use for pulling over speeders on the state highways. In other
words, if the posted speed limit is 55 mph, drivers can drive at a rate up to 64 mph
without fear of getting a ticket. Which of the following best describes the ethical culture
in the state? - Correct Answers -The troopers are following a normative standard.
Jane Tucker is the ethics officer for a publicly traded company. She is concerned that
the company does not have a mechanism for anonymous reports of issues by
employees. The CEO is not inclined to spend the money required to set up a hotline or
any other reporting mechanism. Which of the following statements is true about this
situation? - Correct Answers -Without an anonymous reporting system, the company
does not meet the minimum requirements for the protections of the Federal Sentencing
Guidelines.
Turing Pharmaceuticals increased the price of one of its drugs 5,000%. Its then-CEO
said that his primary responsibility was to Turing's shareholders. To whom would the
CEO's views be attributed? - Correct Answers -Milton Friedman
A code of ethics is an individual firm's behavior standard for employees. - Correct
Answers -true
Conflicts of interest can result in the use of quid pro quo. - Correct Answers -true
Which of the following ethical models incorporates conscience into the decision-making
process? - Correct Answers -Blanchard and Peale model
, Milton Friedman's standard for business social responsibility is one that requires a
company to do all that it can for its community. - Correct Answers -false
Condoning unethical behavior is an ethical breach. - Correct Answers -true
Which of the following is not a consequence of poor ethical choices by a company? -
Correct Answers -All of the above are consequences of poor ethical choices
Natural law and positive law are one and the same theories of moral standards. -
Correct Answers -false
Which of the following is not a requirement of Sarbanes-Oxley? - Correct Answers -both
a and c
Professor Ahlstrom asked her student, Jay Knopf, if he had a chance to look at the
reading assignment for the day's class. Knopf replied, "Yes, I have." When Professor
Ahlstrom asked Knopf a question about the reading, he did not know the answer.
Professor Ahlstrom said, "I thought you said you had read the assignment." Knopf
replied, "You didn't ask me if I had read the assignment, you asked me if I had a chance
to look at the assignment, and I did look." There is no ethical category that applies to
this situation. - Correct Answers -false
A relativist asks why someone is engaged in unethical or illegal conduct before
determining whether the conduct is right or wrong. - Correct Answers -true
A lack of business ethics can result in a lack of business goodwill. - Correct Answers -
true
An employer instituted a wellness program for all employees. The wellness program
includes an exercise facility and several pay incentives for losing weight, quitting
smoking, or beginning an exercise program. The program is not required under any
state or national laws. Which of the following schools of social responsibility applies to
this employer? - Correct Answers -enlightened self-interest school
The principle of stare decisis requires that all similar cases be decided the same way. -
Correct Answers -false
When a case is remanded: - Correct Answers -it is sent back to the trial court.
The U.S. Department of Defense (DOD) is bringing suits against several contractors in
Iraq who are alleged to have paid kickbacks to military personnel in order to win
contracts. The DOD wants portions of the contract prices paid refunded by the
contractors. The DOD suits against the contractors: - Correct Answers -will be heard in
federal district court or the court of claims.
