LES 305 Exam 1 Practice Questions &
Answers 100% Correct!!
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?
a. inherence school
b. enlightened self-interest school
c. invisible hand school
d. social responsibility school - ANSWERA
With respect to the corporate inversions described above, they are permissible under
which ethical theory?
a. primum non nocere
b. utilitarianism
c. ethical egoism
d. Divine Command
e. None of the answer choices are correct - ANSWERC
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.
a. Follow management's code of conduct.
b. Follow your industry's code of conduct.
c. Apply ethical decision-making models.
d. List each stakeholder's interests (concerns) in the dilemma.
e. Nothing is missing from the model above. - ANSWERD
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? - ANSWERYes. This creates a conflict of interest on behalf of the
reviewer customers.
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
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
T/F Committing acts of personal decadence, like driving home drunk after an office
holiday party has no relevance to business ethics - ANSWERFalse - This behavior
may damage the reputation of the employee and the person or organization that
hired him or her
T/F Compliance with the law meets all ethical standards. - ANSWERFalse - The law
is the minimum standard of conduct for ethical behavior. Usually, you need to do
more than just comply with the law to act ethically
T/F "I was just following orders" is a defense in law and a test for ethical behavior -
ANSWERFalse - If you use this rationalization you may be in ethical and legal
trouble
T/F Tolerating someone else's unethical actions is not an ethical dilemma since you
did not actually commit any act that is unethical. - ANSWERFalse - in some
situations, failure to act may also constitute a breach of an ethical obligation or a
legal duty. For example, if you witness a subordinate who is making comments to
another employee that constitute sexual harassment, you are implicitly condoning
unethical conduct and you are breaching your obligations to your employer which
would require you to intervene
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?"
Answers 100% Correct!!
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?
a. inherence school
b. enlightened self-interest school
c. invisible hand school
d. social responsibility school - ANSWERA
With respect to the corporate inversions described above, they are permissible under
which ethical theory?
a. primum non nocere
b. utilitarianism
c. ethical egoism
d. Divine Command
e. None of the answer choices are correct - ANSWERC
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.
a. Follow management's code of conduct.
b. Follow your industry's code of conduct.
c. Apply ethical decision-making models.
d. List each stakeholder's interests (concerns) in the dilemma.
e. Nothing is missing from the model above. - ANSWERD
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? - ANSWERYes. This creates a conflict of interest on behalf of the
reviewer customers.
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
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
T/F Committing acts of personal decadence, like driving home drunk after an office
holiday party has no relevance to business ethics - ANSWERFalse - This behavior
may damage the reputation of the employee and the person or organization that
hired him or her
T/F Compliance with the law meets all ethical standards. - ANSWERFalse - The law
is the minimum standard of conduct for ethical behavior. Usually, you need to do
more than just comply with the law to act ethically
T/F "I was just following orders" is a defense in law and a test for ethical behavior -
ANSWERFalse - If you use this rationalization you may be in ethical and legal
trouble
T/F Tolerating someone else's unethical actions is not an ethical dilemma since you
did not actually commit any act that is unethical. - ANSWERFalse - in some
situations, failure to act may also constitute a breach of an ethical obligation or a
legal duty. For example, if you witness a subordinate who is making comments to
another employee that constitute sexual harassment, you are implicitly condoning
unethical conduct and you are breaching your obligations to your employer which
would require you to intervene
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?"
