LES 305 Koretz Practice exam UPDATED
Exam Questions and CORRECT
Answers
Compliance with the law meets all ethical standards. - CORRECT ANSWER - False
"I was just following orders" is a defense in law and a test for ethical behavior. - CORRECT
ANSWER - False
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? -
CORRECT ANSWER - inherence school
With respect to the corporate inversions described above, they are permissible under which
ethical theory? - CORRECT ANSWER - ethical 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. - CORRECT ANSWER - List 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. - CORRECT ANSWER - Yes. 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? - CORRECT ANSWER - Overconfidence
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? - CORRECT
ANSWER - Loss 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? - CORRECT
ANSWER - Self-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? -
CORRECT ANSWER - Framing
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? - CORRECT ANSWER - Utilitarianism.
Committing acts of personal decadence, like driving home drunk after an office holiday party has
no relevance to business ethics. [FALSE. This behavior may damage the reputation of -
CORRECT ANSWER - False
Tolerating someone else's unethical actions is not an ethical dilemma since you did not actually
commit any act that is unethical. - CORRECT ANSWER - False
The Ice-T case illustrates what can happen when managers don't take shareholders interests into
account when making business decisions. - CORRECT ANSWER - True
Cheating on exams is acceptable because - CORRECT ANSWER - None of the above
because all are rationalizations.
Exam Questions and CORRECT
Answers
Compliance with the law meets all ethical standards. - CORRECT ANSWER - False
"I was just following orders" is a defense in law and a test for ethical behavior. - CORRECT
ANSWER - False
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? -
CORRECT ANSWER - inherence school
With respect to the corporate inversions described above, they are permissible under which
ethical theory? - CORRECT ANSWER - ethical 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. - CORRECT ANSWER - List 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. - CORRECT ANSWER - Yes. 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? - CORRECT ANSWER - Overconfidence
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? - CORRECT
ANSWER - Loss 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? - CORRECT
ANSWER - Self-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? -
CORRECT ANSWER - Framing
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? - CORRECT ANSWER - Utilitarianism.
Committing acts of personal decadence, like driving home drunk after an office holiday party has
no relevance to business ethics. [FALSE. This behavior may damage the reputation of -
CORRECT ANSWER - False
Tolerating someone else's unethical actions is not an ethical dilemma since you did not actually
commit any act that is unethical. - CORRECT ANSWER - False
The Ice-T case illustrates what can happen when managers don't take shareholders interests into
account when making business decisions. - CORRECT ANSWER - True
Cheating on exams is acceptable because - CORRECT ANSWER - None of the above
because all are rationalizations.
