TEST BANK Business Ethics Ethical Decision Making and Cases, 13th Edition By O. C. Ferrell, John Fraedrich, All Chapters 1 - 12

TEST BANK II!l




Business Ethics Ethical Decision Making and Cases, 13th Edition
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By O. C. Ferrell, John Fraedrich, All Chapters 1 - 12
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Part 1: An Overview of Business Ethics
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1: The Importance of Business Ethics
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2: Stakeholder Relationships, Social Responsibility, and Corporate Governance
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3: Sustainability: Ethical and Social Responsibility Dimensions
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Part 2: Ethical Issues and the Institutionalization of Business Ethics
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4: The Institutionalization of Business Ethics
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5: Emerging Business Ethics Issues
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Part 3: The Decision-Making Process
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6: Ethical Decision Making
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7: Individual Factors: Moral Philosophies and Values
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8: Organizational Factors: The Role of Ethical Culture and Relationships
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Part 4: Implementing Business Ethics in a Global Economy
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9: Developing and Implementing an Effective Ethics Program
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10: Global Business Ethics Issues
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11: Ethical Leadership
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12: Technology: Ethics and Social Responsibility Issues
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,1: The Importance of Business Ethics
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1. Principles are II!l



a. laws and regulations that guide behavior in the world of business.
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b. mores, values, and customs that guide behavior in general.
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c. specific and pervasive boundaries for behavior that are universal and absolute.
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d. the obligations businesses assume to maximize their positive impact and minimize their negative impact on
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stakeholders.
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e. the mores, values, and customs that parents teach their children.
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ANSWER: c
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 5 II!l




LEARNING OBJECTIVES: LO: 1-1 - Explore conceptualizations of business ethics from an organizational
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perspective. II!l




NATIONAL STANDARDS: United States - BUSPROG: Ethics I I !l I I ! l I I ! l II!l II!l II!l II!l




STATE STANDARDS: United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities
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KEYWORDS: Blooms: Comprehension II!l




2. Social responsibility is II!l II!l




a. an organization's obligation to maximize its positive effects and minimize its negative effects on stakeholders.
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b. principles and standards that guide behavior in the world of business. II!l II!l II!l II!l II!l II!l II!l II!l II!l II!l




c. a business's responsibility not to pollute the environment.
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d. a business's responsibility to manufacture products that function properly.
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e. charitable contributions made by a business to enhance its image. II!l II!l II!l II!l II!l II!l II!l II!l II!l




ANSWER: a
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 23 II!l




LEARNING OBJECTIVES: LO: 1-4 - Gain insight into the extent of ethical misconduct in the workplace and
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the pressures for unethical behavior. II!l II!l II!l II!l II!l




NATIONAL STANDARDS: United States - BUSPROG: Ethics I I !l I I ! l I I ! l II!l II!l II!l II!l




STATE STANDARDS: I I !l United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities
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KEYWORDS: Blooms: Knowledge II!l

, 3. The was/were enacted to restore confidence in financial reporting and business ethics after the
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accounting scandals of the early 2000s.
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a. Defense Industry Initiative on Business Ethics and Conduct
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b. Sarbanes-Oxley Act II! l




c. Federal Sentencing Guidelines for Organizations
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d. Foreign Corrupt Practices Act II!l II!l II!l




e. Dodd-Frank Wall Street Reform and Consumer Protection Act II!l II!l II!l II!l II!l II!l II!l




ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: p. 13 II!l




LEARNING OBJECTIVES: LO: 1-2 - Examine the historical foundations and evolution of business ethics.
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NATIONAL STANDARDS: United States - BUSPROG: Ethics I I !l I I ! l I I ! l II!l II!l II!l II!l




STATE STANDARDS: I I !l United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities
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KEYWORDS: Blooms: Knowledge II!l




4. The term business ethics is best described by the following statement:
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a. It is the study and philosophy of human conduct, with an emphasis on determining right and wrong.
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b. It is an "inquiry into the nature and grounds of morality where the term morality is taken to mean
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moral judgments, standards and rules of conduct."
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c. It is the "study of the general nature of morals and of specific moral choices; moral philosophy; and the
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rules or standards governing the conduct of the members of a profession."
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d. It is an organization's obligation to maximize its positive effects and minimize its negative effects on
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stakeholders.
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e. It comprises the principles, values, and standards that guide behavior in the world of business.
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ANSWER: e
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: p. 5 II!l




LEARNING OBJECTIVES: LO: 1-1 - Explore conceptualizations of business ethics from an organizational
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perspective. II!l




NATIONAL STANDARDS: United States - BUSPROG: Ethics I I !l I I ! l I I ! l II!l II!l II!l II!l




STATE STANDARDS: United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities
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KEYWORDS: Blooms: Knowledge II!l