Business Essentials 8th Canadian Edition By
Ronald J. Ebert – Test Bank
,Chapter 3 Conducting Business Ethically and Responsibly
3.1 Multiple-Choice Questions
1) The term “ethics” refers to
1. A) standards or moral values regarding what is right and wrong.
2. B) avoiding doing things that, if everyone did it, we would have a real mess.
3. C) believing what’s right for one person is wrong for another.
4. D) conflicts of interest that develop between two co-workers.
5. E) bad behaviour by top managers in a company.
Answer: A
Diff: 1 Type: MC Page Ref: 47
Skill: Knowledge
Objective: 3.1
2) What is the difference between “ethics” and “business ethics”?
1. A) The former refers to beliefs about what is right and wrong, while the latter doesn’t deal
with right and wrong, only with economic issues.
2. B) The former refers to a restricted range of acceptable behaviours, while the latter refers
to a much broader range of acceptable behaviours.
,3. C) There are no differences between the two terms.
4. D) The former refers to beliefs about what is right or wrong, while the latter refers to
behaviours by managers or employees.
5. E) The former refers to the actions of government employees, while the latter refers to the
actions of employees in private-sector firms.
Answer: D
Diff: 2 Type: MC Page Ref: 47
Skill: Comprehension
Objective: 3.1
3) Behaviour that conforms to individual beliefs and social norms about what is right and good is
referred to as
1. A) social reaction behaviour.
2. B) ethical behaviour.
3. C) generally accepted behaviour.
4. D) collusional behaviour.
5. E) motivational behaviour.
Answer: B
Diff: 1 Type: MC Page Ref: 47
Skill: Knowledge
Objective: 3.1
4) _ refers to ethical or unethical behaviours by a manager or employee of an
organization.
1. A) Social ethics
2. B) Social responsibility
3. C) Business ethics
4. D) Collusion
5. E) Cartelling
Answer: C
Diff: 2 Type: MC Page Ref: 48
Skill: Knowledge
Objective: 3.1
5) Ethical and unethical behaviour is determined partly by the and partly by .
1. A) society; culture
2. B) society; values
3. C) individual; culture
4. D) person; religion
5. E) culture; society
Answer: C
Diff: 2 Type: MC Page Ref: 48
Skill: Knowledge
Objective: 3.1
6) With regard to the distinction between unethical and illegal behaviour, it is correct to say that
1. A) something that is illegal is also unethical.
2. B) a given act can be ethical, yet illegal.
3. C) the distinction between unethical and illegal behaviour has no practical significance.
4. D) it is impossible for something to be unethical and legal at the same time.
5. E) all of these are correct.
Answer: B
Diff: 2 Type: MC Page Ref: 47
, Skill: Comprehension
Objective: 3.1
7) “Cooking the books” to make a company’s financial situation look better than it really is
illustrates a behaviour that is
1. A) ethical but illegal.
2. B) ethical and illegal.
3. C) unethical but legal.
4. D) unethical and illegal.
5. E) there is no consensus on how this behaviour should be classified.
Answer: D
Diff: 2 Type: MC Page Ref: 47
Skill: Comprehension
Objective: 3.1
8) Breaking the law in a totalitarian regime in order to carry out humanitarian efforts would
probably be seen by most people as
1. A) ethical but illegal.
2. B) ethical and illegal.
3. C) unethical but legal.
4. D) unethical and illegal.
5. E) there is no consensus on how this behaviour should be classified.
Answer: A
Diff: 2 Type: MC Page Ref: 47
Skill: Comprehension
Objective: 3.1
9) John is a salesperson who feels that he is not paid nearly enough money for the work that he
does. He therefore “pads” his expense account in order to receive increased financial benefits.
John’s behaviour would be seen as ethical according to which criterion?
1. A) Rights
2. B) Justice
3. C) Utility
4. D) Caring
5. E) None of these
Answer: E
Diff: 2 Type: MC Page Ref: 49
Skill: Comprehension
Objective: 3.1
10) The Personal Information Protection and Electronic Documents Act (PIPEDA)
1. A) is designed to protect electronic documents from computer hackers.
2. B) requires organizations to obtain consent before they collect, use, or disclose information
about individuals.
3. C) has been declared unconstitutional.
4. D) prohibits organizations from using personal information about their employees.
5. E) applies almost exclusively to universities.
Answer: B
Diff: 1 Type: MC Page Ref: 48
Skill: Comprehension
Objective: 3.1
Ronald J. Ebert – Test Bank
,Chapter 3 Conducting Business Ethically and Responsibly
3.1 Multiple-Choice Questions
1) The term “ethics” refers to
1. A) standards or moral values regarding what is right and wrong.
2. B) avoiding doing things that, if everyone did it, we would have a real mess.
3. C) believing what’s right for one person is wrong for another.
4. D) conflicts of interest that develop between two co-workers.
5. E) bad behaviour by top managers in a company.
Answer: A
Diff: 1 Type: MC Page Ref: 47
Skill: Knowledge
Objective: 3.1
2) What is the difference between “ethics” and “business ethics”?
1. A) The former refers to beliefs about what is right and wrong, while the latter doesn’t deal
with right and wrong, only with economic issues.
2. B) The former refers to a restricted range of acceptable behaviours, while the latter refers
to a much broader range of acceptable behaviours.
,3. C) There are no differences between the two terms.
4. D) The former refers to beliefs about what is right or wrong, while the latter refers to
behaviours by managers or employees.
5. E) The former refers to the actions of government employees, while the latter refers to the
actions of employees in private-sector firms.
Answer: D
Diff: 2 Type: MC Page Ref: 47
Skill: Comprehension
Objective: 3.1
3) Behaviour that conforms to individual beliefs and social norms about what is right and good is
referred to as
1. A) social reaction behaviour.
2. B) ethical behaviour.
3. C) generally accepted behaviour.
4. D) collusional behaviour.
5. E) motivational behaviour.
Answer: B
Diff: 1 Type: MC Page Ref: 47
Skill: Knowledge
Objective: 3.1
4) _ refers to ethical or unethical behaviours by a manager or employee of an
organization.
1. A) Social ethics
2. B) Social responsibility
3. C) Business ethics
4. D) Collusion
5. E) Cartelling
Answer: C
Diff: 2 Type: MC Page Ref: 48
Skill: Knowledge
Objective: 3.1
5) Ethical and unethical behaviour is determined partly by the and partly by .
1. A) society; culture
2. B) society; values
3. C) individual; culture
4. D) person; religion
5. E) culture; society
Answer: C
Diff: 2 Type: MC Page Ref: 48
Skill: Knowledge
Objective: 3.1
6) With regard to the distinction between unethical and illegal behaviour, it is correct to say that
1. A) something that is illegal is also unethical.
2. B) a given act can be ethical, yet illegal.
3. C) the distinction between unethical and illegal behaviour has no practical significance.
4. D) it is impossible for something to be unethical and legal at the same time.
5. E) all of these are correct.
Answer: B
Diff: 2 Type: MC Page Ref: 47
, Skill: Comprehension
Objective: 3.1
7) “Cooking the books” to make a company’s financial situation look better than it really is
illustrates a behaviour that is
1. A) ethical but illegal.
2. B) ethical and illegal.
3. C) unethical but legal.
4. D) unethical and illegal.
5. E) there is no consensus on how this behaviour should be classified.
Answer: D
Diff: 2 Type: MC Page Ref: 47
Skill: Comprehension
Objective: 3.1
8) Breaking the law in a totalitarian regime in order to carry out humanitarian efforts would
probably be seen by most people as
1. A) ethical but illegal.
2. B) ethical and illegal.
3. C) unethical but legal.
4. D) unethical and illegal.
5. E) there is no consensus on how this behaviour should be classified.
Answer: A
Diff: 2 Type: MC Page Ref: 47
Skill: Comprehension
Objective: 3.1
9) John is a salesperson who feels that he is not paid nearly enough money for the work that he
does. He therefore “pads” his expense account in order to receive increased financial benefits.
John’s behaviour would be seen as ethical according to which criterion?
1. A) Rights
2. B) Justice
3. C) Utility
4. D) Caring
5. E) None of these
Answer: E
Diff: 2 Type: MC Page Ref: 49
Skill: Comprehension
Objective: 3.1
10) The Personal Information Protection and Electronic Documents Act (PIPEDA)
1. A) is designed to protect electronic documents from computer hackers.
2. B) requires organizations to obtain consent before they collect, use, or disclose information
about individuals.
3. C) has been declared unconstitutional.
4. D) prohibits organizations from using personal information about their employees.
5. E) applies almost exclusively to universities.
Answer: B
Diff: 1 Type: MC Page Ref: 48
Skill: Comprehension
Objective: 3.1
