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OpenStax Business Ethics Test Bank
Chapter 1: Why Ethics Matters
Chapter 1: Why Ethics Matters
* = Correct answer
Multiple Choice/Fill in the Blank
1. Which of the following is the best description for what it means to be a professional of
integrity?
A. following the investment style of Warren Buffet
B. thinking long term when investing
C. having an ethical mindset in business*
D. ensuring employee happiness
Difficulty: Easy
Blooms: Understand
AACSB: Ethics, Reflection, Diversity
2. Which of the following companies is considered ethical, according to the chapter?
A. Samsung
B. Kia
C. Au Bon Pain
D. Marriott*
Difficulty: Moderate
Blooms: Application
AACSB: Ethics, Diversity, Real-world
3. What is the golden mean?
A. treating every person the same
B. the aim of ethical behavior
C. a middle ground value between deficiency and excess*
D. justice as fairness
Difficulty: Moderate
Blooms: Analyze
AACSB: Ethics, Analytical, Application
4. Which of the following is an example of demonstrating ethical standards?
A. eudaimonia
B. consequentialism*
C. junzi
D. categorical imperative
Difficulty: Moderate
Blooms: Remember, Understand
AACSB: Application
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OpenStax Business Ethics Test Bank
Chapter 1: Why Ethics Matters
5. What is ethics?
A. standards of behavior for professional and personal lives*
B. standards of behavior for business only
C. someone who is acting empathetic
D. setting norms for ways one interacts only with coworkers
Difficulty: Moderate
Blooms: Understand
AACSB: Ethics
6. Why do businesses care about ethics?
A. to gain greater wealth and power
B. to follow fiduciary duty
C. to uphold honorable standards of behavior*
D. to receive status and recognition
Difficulty: Moderate
Blooms: Analyze
AACSB: Ethics, Analytical
7. Which of the following best describes the role of ethics in a business environment?
A. guiding the conduct by which companies abide by the law
B. respecting the right of shareholders
C. guiding the conduct by which companies and their agents abide by the law*
D. respecting the community
Difficulty: Moderate
Blooms: Evaluate
AACSB: Reflection, Real-world
8. Are ethical and legal responsibilities the same?
A. Yes, they are the same standards of behavior and must be followed.
B. No, legal standards are necessary for a properly functioning society, and ethics deals with
voluntary business conduct in accordance with laws, statutes, regulations, and policies.*
C. No, because law is always superior to ethics.
D. Yes, because companies have duties of legal and ethical responsibility to assert right or
wrong.
Difficulty: Difficult
Blooms: Apply
AACSB: Ethics, Analytical, Application
9. How does Patagonia exemplify ethics?
A. being a market leader in outdoor gear
B. caring about its employees by giving them a large discount for friends and family
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OpenStax Business Ethics Test Bank
Chapter 1: Why Ethics Matters
C. supporting sustainability with a recycling initiative in all retail stores and warehouses
D. instituting a “1% for the Planet” program that promotes environmentalism*
Difficulty: Moderate
Blooms: Evaluate
AACSB: Diversity, Reflection, Application, Real-world
10. Normative ethics means ________.
A. discovering right and not focusing on wrong
B. discovering right and delineating it from wrong*
C. developing rules and norms for corporate decision-making only
D. developing rules or norms for the greatest good for the greatest number
Difficulty: Moderate
Blooms: Evaluate
AACSB: Ethics, Analytical, Application
11. What does deontology mean?
A. Conduct is determined by a philosophical process focused on Kantian religious teaching.
B. Ethics is a duty we owe to others.*
C. Means justify the ends.
D. The means are the process driver for ancient Roman analytical thinking.
Difficulty: Moderate
Blooms: Apply
AACSB: Ethics, Analytical, Application
12. Adopting a consistent ethical standard is ________.
A. not in a manager’s best interests
B. selfless*
C. in a government’s best interest
D. selfish
Difficulty: Moderate
Blooms: Evaluate
AACSB: Ethics, Analytical, Application
13. What characteristics contribute to the bottom line? (Select all that apply.)
A. funding philanthropy and charitable endeavors*
B. sustainability, also known as “going green”*
C. always giving a dividend to your shareholders
D. taking an interest in employees’ personal lives*
Difficulty: Moderate
Blooms: Evaluate
AACSB: Ethics, Analytical, Application
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OpenStax Business Ethics Test Bank
Chapter 1: Why Ethics Matters
14. Which personal philosophical approach does Warren Buffet believe in?
A. You can lose money for your firm.
B. Think short term.
C. Invest in yourself.*
D. What matters is how much money you make.
Difficulty: Easy
Blooms: Analyze
AACSB: Ethics, Reflection
15. An analysis of perceived priority of shareholder impact should include which of the
following?
A. stakeholders in reverse order of perceived priority
B. largest stakeholders by affiliation
C. interests and goals of shareholders*
D. impact of action or decision of management
Difficulty: Easy
Blooms: Apply
AACSB: Analytical, Application, Real-world
16. Which company attributes increase in value as stakeholders view that company in a positive
light? (Select all that apply.)
A. stock price
B. company name or logo*
C. competition
D. trademark*
Difficulty: Moderate
Blooms: Apply
AACSB: Real-world, Application
17. Which elements constitute corporate culture?
A. shared focus on the environment
B. shared profit of stakeholders
C. how the CEO interacts with his or her employees and managers*
D. how the CEO compensates his or her employees and managers
Difficulty: Moderate
Blooms: Analyze
AACSB: Application, Real-world, Interpersonal
18. Positive goodwill ________. (Select all that apply.)
A. is generated by ethical business practices*
B. is separate from profitability
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OpenStax Business Ethics Test Bank
Chapter 1: Why Ethics Matters
Chapter 1: Why Ethics Matters
* = Correct answer
Multiple Choice/Fill in the Blank
1. Which of the following is the best description for what it means to be a professional of
integrity?
A. following the investment style of Warren Buffet
B. thinking long term when investing
C. having an ethical mindset in business*
D. ensuring employee happiness
Difficulty: Easy
Blooms: Understand
AACSB: Ethics, Reflection, Diversity
2. Which of the following companies is considered ethical, according to the chapter?
A. Samsung
B. Kia
C. Au Bon Pain
D. Marriott*
Difficulty: Moderate
Blooms: Application
AACSB: Ethics, Diversity, Real-world
3. What is the golden mean?
A. treating every person the same
B. the aim of ethical behavior
C. a middle ground value between deficiency and excess*
D. justice as fairness
Difficulty: Moderate
Blooms: Analyze
AACSB: Ethics, Analytical, Application
4. Which of the following is an example of demonstrating ethical standards?
A. eudaimonia
B. consequentialism*
C. junzi
D. categorical imperative
Difficulty: Moderate
Blooms: Remember, Understand
AACSB: Application
Page 1 of 13
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OpenStax Business Ethics Test Bank
Chapter 1: Why Ethics Matters
5. What is ethics?
A. standards of behavior for professional and personal lives*
B. standards of behavior for business only
C. someone who is acting empathetic
D. setting norms for ways one interacts only with coworkers
Difficulty: Moderate
Blooms: Understand
AACSB: Ethics
6. Why do businesses care about ethics?
A. to gain greater wealth and power
B. to follow fiduciary duty
C. to uphold honorable standards of behavior*
D. to receive status and recognition
Difficulty: Moderate
Blooms: Analyze
AACSB: Ethics, Analytical
7. Which of the following best describes the role of ethics in a business environment?
A. guiding the conduct by which companies abide by the law
B. respecting the right of shareholders
C. guiding the conduct by which companies and their agents abide by the law*
D. respecting the community
Difficulty: Moderate
Blooms: Evaluate
AACSB: Reflection, Real-world
8. Are ethical and legal responsibilities the same?
A. Yes, they are the same standards of behavior and must be followed.
B. No, legal standards are necessary for a properly functioning society, and ethics deals with
voluntary business conduct in accordance with laws, statutes, regulations, and policies.*
C. No, because law is always superior to ethics.
D. Yes, because companies have duties of legal and ethical responsibility to assert right or
wrong.
Difficulty: Difficult
Blooms: Apply
AACSB: Ethics, Analytical, Application
9. How does Patagonia exemplify ethics?
A. being a market leader in outdoor gear
B. caring about its employees by giving them a large discount for friends and family
Page 2 of 13
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Chapter 1: Why Ethics Matters
C. supporting sustainability with a recycling initiative in all retail stores and warehouses
D. instituting a “1% for the Planet” program that promotes environmentalism*
Difficulty: Moderate
Blooms: Evaluate
AACSB: Diversity, Reflection, Application, Real-world
10. Normative ethics means ________.
A. discovering right and not focusing on wrong
B. discovering right and delineating it from wrong*
C. developing rules and norms for corporate decision-making only
D. developing rules or norms for the greatest good for the greatest number
Difficulty: Moderate
Blooms: Evaluate
AACSB: Ethics, Analytical, Application
11. What does deontology mean?
A. Conduct is determined by a philosophical process focused on Kantian religious teaching.
B. Ethics is a duty we owe to others.*
C. Means justify the ends.
D. The means are the process driver for ancient Roman analytical thinking.
Difficulty: Moderate
Blooms: Apply
AACSB: Ethics, Analytical, Application
12. Adopting a consistent ethical standard is ________.
A. not in a manager’s best interests
B. selfless*
C. in a government’s best interest
D. selfish
Difficulty: Moderate
Blooms: Evaluate
AACSB: Ethics, Analytical, Application
13. What characteristics contribute to the bottom line? (Select all that apply.)
A. funding philanthropy and charitable endeavors*
B. sustainability, also known as “going green”*
C. always giving a dividend to your shareholders
D. taking an interest in employees’ personal lives*
Difficulty: Moderate
Blooms: Evaluate
AACSB: Ethics, Analytical, Application
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OpenStax Business Ethics Test Bank
Chapter 1: Why Ethics Matters
14. Which personal philosophical approach does Warren Buffet believe in?
A. You can lose money for your firm.
B. Think short term.
C. Invest in yourself.*
D. What matters is how much money you make.
Difficulty: Easy
Blooms: Analyze
AACSB: Ethics, Reflection
15. An analysis of perceived priority of shareholder impact should include which of the
following?
A. stakeholders in reverse order of perceived priority
B. largest stakeholders by affiliation
C. interests and goals of shareholders*
D. impact of action or decision of management
Difficulty: Easy
Blooms: Apply
AACSB: Analytical, Application, Real-world
16. Which company attributes increase in value as stakeholders view that company in a positive
light? (Select all that apply.)
A. stock price
B. company name or logo*
C. competition
D. trademark*
Difficulty: Moderate
Blooms: Apply
AACSB: Real-world, Application
17. Which elements constitute corporate culture?
A. shared focus on the environment
B. shared profit of stakeholders
C. how the CEO interacts with his or her employees and managers*
D. how the CEO compensates his or her employees and managers
Difficulty: Moderate
Blooms: Analyze
AACSB: Application, Real-world, Interpersonal
18. Positive goodwill ________. (Select all that apply.)
A. is generated by ethical business practices*
B. is separate from profitability
Page 4 of 13
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