LES 305 Exam 1 Questions & Answers
100% Correct!!
Compliance with the law meets all ethical standards. (T/F) - ANSWERFalse
I was just following orders" is a defense in law and a test for ethical behavior (T/F) -
ANSWERFalse
Many companies that had been headquartered in the United States have decided to
conduct corporate inversions, in which they sell their assets to a foreign corporation
so they can claim a new residence in that country for corporate tax purposes and
avoid paying corporate taxes in the United States. This action is permissible under
which school of social responsibility? - ANSWERinherence school
Many companies that had been headquartered in the United States have decided to
conduct corporate inversions, in which they sell their assets to a foreign corporation
so they can claim a new residence in that country for corporate tax purposes and
avoid paying corporate taxes in the United States. With respect to the corporate
inversions described above, they are permissible under which ethical theory? -
ANSWERethical egoism
Which question is missing from this model of the steps for analyzing ethical
dilemmas in your book?
i.Gather the facts
.ii.List missing information and your assumptions
.iii.Generate list of alternatives and apply ethical decision-making models
.iv.Evaluate resolutions for cost, legality and impact.
v.Recommend and take action. - ANSWERList each stakeholder's interests
(concerns) in the dilemma
Is there an ethical issue when restaurants and shops give customers discounts, free
meals and other kickbacks in exchange for good reviews on Yelp and other social
media websites?a. No. Everyone else is doing it, so there is no problem. -
ANSWERYes. This creates a conflict of interest on behalf of the reviewer customers
When you are in a situation like the one described in the question above and you
believe that you won't be influenced by any type of reward because you are more
ethical than most people, you are being influenced by which of the following? -
ANSWEROverconfidence bias
When you are in a situation like the one described in the question above and you
don't want to have to forfeit this incentive, you are being influenced by which of the
following? - ANSWERLoss aversion
Lawyers will often complain that their clients tend to describe their behavior in a way
that is very favorable to themselves, rather than telling the entire truth about a
,situation in an objective manner. This distortion of the truth can be influenced by
which of the following? - ANSWERSelf-serving bias
When large hedge funds look at the issue with Robinhood and GameStop as a
"business problem" rather than an "ethical problem", they are demonstrating which of
the following? - ANSWERFraming
You are waiting by the trolley tracks in your neighborhood when you notice that a
runaway trolley car is racing toward five people who don't see it. They will very likely
die if no one stops the trolley. You are standing by a lever and you can see that if
you pull the lever, the trolley will be diverted to a different track, saving the five
people. However, there is one person on that trolley track who will likely be killed if
you divert the trolley. You are acting ethically under which theory? -
ANSWERUtilitarianism
Committing acts of personal decadence, like driving home drunk after an office
holiday party has no relevance to business ethics (T/F) - ANSWERFalse
Tolerating someone else's unethical actions is not an ethical dilemma since you did
not actually commit any act that is unethical. (T/F) - ANSWERFalse
The Ice-T case illustrates what can happen when managers don't take shareholders
interests into account when making business decisions (T/F) - ANSWERTrue
Cheating on exams is acceptable because
a. "It is not illegal."
b. "It doesn't really hurt anyone."
c. "The system is unfair."
d. None of the above because all are rationalizations. - ANSWERd. None of the
above because all are rationalizations.
Which of the categories of ethical dilemmas should you be concerned about when
you have an arbitration clause in your employment contract and your employer is the
one paying the arbitration fees? - ANSWEREngaging in a conflict of interest
Which of the following is not among the categories of ethical dilemmas according to
your textbook?
a. taking things that do not belong to you
b. giving or allowing false impressions
c. perpetrating interpersonal abuse
d. All of the above are ethical breaches.* - ANSWERd. All of the above are ethical
breaches.*
The "front page of the newspaper test": - ANSWERuses the perspective of a reporter
who is reporting impartially
Laura Nash would ask
a. "How would I view the problem if I sat on the other side of the fence? "
b. "How did the situation arise in the first place?"
c. "Who does the action or decision injure?"
, d. "Will I feel as comfortable over the long term as I do today?"
e. All of the above - ANSWERe. All of the above
Enron Corporation filed for bankruptcy following a number of revelations about its
accounting procedures. Enron used a complex structure of corporations and off-the-
books debt to mask its true financial picture from the markets. When asked about the
propriety of Enron's reporting methods, many analysts have responded, "They
simply did what most corporations do." Their comments: - ANSWERreflect
rationalization
Please refer to the question above. Enron's failure to disclose its off-the-book debts
was legal in many instances. Which of the following ethical categories do you think
apply to that type of financial reporting?
a. balancing ethical dilemmas
b. giving or allowing a false impression
c. taking unfair advantage
d. both b and c
e. none of the above - ANSWERd. both b and c
Which of the following is not a potential consequence of poor ethical choices by
company?
a. loss of reputation
b. loss of earning power
c. additional regulation
d. All of the above are potential consequences of poor ethical choices. - ANSWERd.
All of the above are potential consequences of poor ethical choices.
Which of the following statements is true about an ethical business? - ANSWERIt will
avoid the consequences of unethical behavior
Which of the following is a question in Laura Nash's test for ethical behavior?
a. "Does it violate the company's code of conduct?"
b. "Are others in my industry doing the same thing?"
c. "Is everyone else doing it?"
d. "How did the situation occur in the first place?" - ANSWERd. "How did the
situation occur in the first place?"
Here is the "pros and cons" list that the lead character on a popular tv series used
when he was deciding whether to kill a rival drug dealer. Which ethical theory did he
use to make his choice based on what you see on the list above? - ANSWERMoral
relativism
"Business ought to serve society and it does so best when it is responsive to
shareholders" is the philosophy of which type of social responsibility school? -
ANSWERinvisible hand school
Which of the following corporate contributions would be permitted under the
inherence school? - ANSWERa corporate contribution to a new transportation
system located near the corporate headquarters to attract talented employees and
their families
100% Correct!!
Compliance with the law meets all ethical standards. (T/F) - ANSWERFalse
I was just following orders" is a defense in law and a test for ethical behavior (T/F) -
ANSWERFalse
Many companies that had been headquartered in the United States have decided to
conduct corporate inversions, in which they sell their assets to a foreign corporation
so they can claim a new residence in that country for corporate tax purposes and
avoid paying corporate taxes in the United States. This action is permissible under
which school of social responsibility? - ANSWERinherence school
Many companies that had been headquartered in the United States have decided to
conduct corporate inversions, in which they sell their assets to a foreign corporation
so they can claim a new residence in that country for corporate tax purposes and
avoid paying corporate taxes in the United States. With respect to the corporate
inversions described above, they are permissible under which ethical theory? -
ANSWERethical egoism
Which question is missing from this model of the steps for analyzing ethical
dilemmas in your book?
i.Gather the facts
.ii.List missing information and your assumptions
.iii.Generate list of alternatives and apply ethical decision-making models
.iv.Evaluate resolutions for cost, legality and impact.
v.Recommend and take action. - ANSWERList each stakeholder's interests
(concerns) in the dilemma
Is there an ethical issue when restaurants and shops give customers discounts, free
meals and other kickbacks in exchange for good reviews on Yelp and other social
media websites?a. No. Everyone else is doing it, so there is no problem. -
ANSWERYes. This creates a conflict of interest on behalf of the reviewer customers
When you are in a situation like the one described in the question above and you
believe that you won't be influenced by any type of reward because you are more
ethical than most people, you are being influenced by which of the following? -
ANSWEROverconfidence bias
When you are in a situation like the one described in the question above and you
don't want to have to forfeit this incentive, you are being influenced by which of the
following? - ANSWERLoss aversion
Lawyers will often complain that their clients tend to describe their behavior in a way
that is very favorable to themselves, rather than telling the entire truth about a
,situation in an objective manner. This distortion of the truth can be influenced by
which of the following? - ANSWERSelf-serving bias
When large hedge funds look at the issue with Robinhood and GameStop as a
"business problem" rather than an "ethical problem", they are demonstrating which of
the following? - ANSWERFraming
You are waiting by the trolley tracks in your neighborhood when you notice that a
runaway trolley car is racing toward five people who don't see it. They will very likely
die if no one stops the trolley. You are standing by a lever and you can see that if
you pull the lever, the trolley will be diverted to a different track, saving the five
people. However, there is one person on that trolley track who will likely be killed if
you divert the trolley. You are acting ethically under which theory? -
ANSWERUtilitarianism
Committing acts of personal decadence, like driving home drunk after an office
holiday party has no relevance to business ethics (T/F) - ANSWERFalse
Tolerating someone else's unethical actions is not an ethical dilemma since you did
not actually commit any act that is unethical. (T/F) - ANSWERFalse
The Ice-T case illustrates what can happen when managers don't take shareholders
interests into account when making business decisions (T/F) - ANSWERTrue
Cheating on exams is acceptable because
a. "It is not illegal."
b. "It doesn't really hurt anyone."
c. "The system is unfair."
d. None of the above because all are rationalizations. - ANSWERd. None of the
above because all are rationalizations.
Which of the categories of ethical dilemmas should you be concerned about when
you have an arbitration clause in your employment contract and your employer is the
one paying the arbitration fees? - ANSWEREngaging in a conflict of interest
Which of the following is not among the categories of ethical dilemmas according to
your textbook?
a. taking things that do not belong to you
b. giving or allowing false impressions
c. perpetrating interpersonal abuse
d. All of the above are ethical breaches.* - ANSWERd. All of the above are ethical
breaches.*
The "front page of the newspaper test": - ANSWERuses the perspective of a reporter
who is reporting impartially
Laura Nash would ask
a. "How would I view the problem if I sat on the other side of the fence? "
b. "How did the situation arise in the first place?"
c. "Who does the action or decision injure?"
, d. "Will I feel as comfortable over the long term as I do today?"
e. All of the above - ANSWERe. All of the above
Enron Corporation filed for bankruptcy following a number of revelations about its
accounting procedures. Enron used a complex structure of corporations and off-the-
books debt to mask its true financial picture from the markets. When asked about the
propriety of Enron's reporting methods, many analysts have responded, "They
simply did what most corporations do." Their comments: - ANSWERreflect
rationalization
Please refer to the question above. Enron's failure to disclose its off-the-book debts
was legal in many instances. Which of the following ethical categories do you think
apply to that type of financial reporting?
a. balancing ethical dilemmas
b. giving or allowing a false impression
c. taking unfair advantage
d. both b and c
e. none of the above - ANSWERd. both b and c
Which of the following is not a potential consequence of poor ethical choices by
company?
a. loss of reputation
b. loss of earning power
c. additional regulation
d. All of the above are potential consequences of poor ethical choices. - ANSWERd.
All of the above are potential consequences of poor ethical choices.
Which of the following statements is true about an ethical business? - ANSWERIt will
avoid the consequences of unethical behavior
Which of the following is a question in Laura Nash's test for ethical behavior?
a. "Does it violate the company's code of conduct?"
b. "Are others in my industry doing the same thing?"
c. "Is everyone else doing it?"
d. "How did the situation occur in the first place?" - ANSWERd. "How did the
situation occur in the first place?"
Here is the "pros and cons" list that the lead character on a popular tv series used
when he was deciding whether to kill a rival drug dealer. Which ethical theory did he
use to make his choice based on what you see on the list above? - ANSWERMoral
relativism
"Business ought to serve society and it does so best when it is responsive to
shareholders" is the philosophy of which type of social responsibility school? -
ANSWERinvisible hand school
Which of the following corporate contributions would be permitted under the
inherence school? - ANSWERa corporate contribution to a new transportation
system located near the corporate headquarters to attract talented employees and
their families
