BUS 115 EXAM REVIEW QUESTIONS &
ANSWERS(RATED A+)
What is Ethics? - ANSWER The study of how people should behave
Which person argued that a corporate manager's primary responsibility is to the
shareholders of the organization and that managers should make the company as
profitable as possible while also complying with the law? - ANSWER Milton Friedman
John Johnson is a customer of company ABC. As such, John is a - ANSWER Customer
and Stakeholder
Which of the following is NOT a stakeholder? - ANSWER A business competitor.
Which of the following statements best exemplifies how society as a whole benefits from
ethical behavior? - ANSWER Ethical behavior builds trust which is important in all of our
relationships.
When Shoes International went out of business after some serious and unethical
accounting errors, its accounting company also closed its doors. 123Jump, a French
company, was concerned that the unethical behaviors that occurred were an American
problem, so it cancelled its business with another American accounting company and
used a French one instead. Who was harmed by Shoes International's unethical
behavior? - ANSWER Shoes International, the accounting industry and the United
States.
How does unethical behavior in an organization affect its workforce? - ANSWER It
creates a workforces that is cynical and resentful
Does ethical behavior maximize profitability - ANSWER Although there is no guarantee
that ethical behavior pays in the short or long run, there is evidence that the ethical
company is more likely to win financially
John Stuart Mill believed that a correct decision was one that maximizes overall
happiness and minimizes overall pain, thereby producing the greatest net benefit. This
is the principle behind - ANSWER utilitarian ethics
When evaluating the right decision, deontological ethics bases its value on the -
ANSWER Reason for doing something
According to Immanuel Kant, the truth should be told, no matter the outcome. This is the
idea behind what he called - ANSWER The categorical imperative.
,Which person held the belief that the circumstances into which we are born play an
important role in our personal outcome? - ANSWER John Rawls
John Rawls' suggestion that society should reward behavior that provides the most
benefit to the community as a whole is referred to as - ANSWER The difference
principle
Haley is an accountant for a large hospital network. She knows that she could easily
"skim" money from the organization to keep for herself and chances are she would not
get caught. However, she keeps thinking about what would happen to her and her
family if her actions went viral and appeared all over the Internet or in her local
newspaper. What ethics test is Haley considering? - ANSWER The front page test
_______ is the belief that some acts are always right or always wrong, whereas ______
is the belief that a decision may be right even if it is not in keeping with our own ethical
standards. - ANSWER Moral universalism; moral relativism
What are the two types of moral relativism noted in your text? - ANSWER Cultural and
individual
Theo believes that everyone must develop his or her own ethical rules. So whereas he
believes that gay marriage should be legal, he understands that other people might feel
differently. Theo would be considered to be a _______ relativist. - ANSWER Individual
Jamal was recently hired as a sales representative for a pharmaceutical company. He
notices that all the other sales reps "pad" their expense accounts by claiming meals with
clients that never took place and then pocket the extra money. Jamal figures that since
everyone else is cheating on their expense accounts, he might as well do the same.
What ethics trap is Jamal falling into? - ANSWER Conformity
Your text outlines three practices to help us avoid ethical traps: slow down, remember
your Life Principles, and - ANSWER Do not trust your first instinct
According to Michael Porter, a company should not undertake a corporate social
responsibility project unless - ANSWER It is profitable for the company in its own right
The government itself prosecutes the wrongdoer in a case involving behavior so
threatening that society outlaws it altogether. This kind of case involves - ANSWER
Criminal Law
The Occupational Safety and Health Administration promulgated a rule requiring
warehouse employees to wear hardhats when in the vicinity of an operating forklift. The
purpose of the hardhats is to protect employees from danger of falling objects. This rule
is - ANSWER Administrative Law
, Common Law refers to - ANSWER law made when judges decide cases and then follow
those decisions in later cases.
Hasbro, Inc., the trademark owner of "Candy Land," sought a court injunction to stop
Internet Entertainment Group, LTD from using the domain name, "candyland.com."
Internet Entertainment Group had established a sexually explicit site at the domain
name. This injunction would have to be issued by - ANSWER a judge
The three branches of government in the United States are - ANSWER the executive,
legislative, and judicial.
The doctrine of stare decisis - ANSWER makes the law more predictable.
In 1992, the North Carolina Supreme Court ruled in a case entitled Goodman v. Wenco
Foods, Inc., that when a substance in food causes injury to a consumer of the food, it is
not a bar to recovery against the seller that the substance was natural to the food. If, in
a 2008 case involving a consumer's injury caused by a fish bone in a bowl of fish
chowder, the court followed the decision in Goodman v. Wenco Foods, Inc., the court's
action in the second case is an example of - ANSWER stare decisis.
When the Food and Drug Administration prohibits a certain drug from being marketed in
the United States, this is - ANSWER an agency regulation.
If the title of an appellate court case appears as Jones v. Smith, - ANSWER you cannot
determine which party is the plaintiff, because when a defendant loses a trial and files
an appeal, some courts (but not all) reverse the names of the parties.
The Minnesota legislature passed a law requiring that employers allow each employee
adequate time within each four consecutive hours of work to utilize the nearest
convenient restroom. This law is - ANSWER a statute.
The doctrine of precedent requires - ANSWER judges to base rulings on previous
cases.
Congress enacted legislation in 1933 to regulate the securities industry and prohibit
various forms of fraud with securities. The Securities Exchange Act of 1934 was passed
a year later. This law created the Securities and Exchange Commission (SEC) as an
independent regulatory entity whose function is to administer the two laws. The SEC
has generated rules and regulations to administer these acts. These rules and
regulations are - ANSWER administrative law.
The federal judicial branch of the U.S. government - ANSWER interprets statutes.
The United States Supreme Court has the power to - ANSWER void laws passed by
Congress.
ANSWERS(RATED A+)
What is Ethics? - ANSWER The study of how people should behave
Which person argued that a corporate manager's primary responsibility is to the
shareholders of the organization and that managers should make the company as
profitable as possible while also complying with the law? - ANSWER Milton Friedman
John Johnson is a customer of company ABC. As such, John is a - ANSWER Customer
and Stakeholder
Which of the following is NOT a stakeholder? - ANSWER A business competitor.
Which of the following statements best exemplifies how society as a whole benefits from
ethical behavior? - ANSWER Ethical behavior builds trust which is important in all of our
relationships.
When Shoes International went out of business after some serious and unethical
accounting errors, its accounting company also closed its doors. 123Jump, a French
company, was concerned that the unethical behaviors that occurred were an American
problem, so it cancelled its business with another American accounting company and
used a French one instead. Who was harmed by Shoes International's unethical
behavior? - ANSWER Shoes International, the accounting industry and the United
States.
How does unethical behavior in an organization affect its workforce? - ANSWER It
creates a workforces that is cynical and resentful
Does ethical behavior maximize profitability - ANSWER Although there is no guarantee
that ethical behavior pays in the short or long run, there is evidence that the ethical
company is more likely to win financially
John Stuart Mill believed that a correct decision was one that maximizes overall
happiness and minimizes overall pain, thereby producing the greatest net benefit. This
is the principle behind - ANSWER utilitarian ethics
When evaluating the right decision, deontological ethics bases its value on the -
ANSWER Reason for doing something
According to Immanuel Kant, the truth should be told, no matter the outcome. This is the
idea behind what he called - ANSWER The categorical imperative.
,Which person held the belief that the circumstances into which we are born play an
important role in our personal outcome? - ANSWER John Rawls
John Rawls' suggestion that society should reward behavior that provides the most
benefit to the community as a whole is referred to as - ANSWER The difference
principle
Haley is an accountant for a large hospital network. She knows that she could easily
"skim" money from the organization to keep for herself and chances are she would not
get caught. However, she keeps thinking about what would happen to her and her
family if her actions went viral and appeared all over the Internet or in her local
newspaper. What ethics test is Haley considering? - ANSWER The front page test
_______ is the belief that some acts are always right or always wrong, whereas ______
is the belief that a decision may be right even if it is not in keeping with our own ethical
standards. - ANSWER Moral universalism; moral relativism
What are the two types of moral relativism noted in your text? - ANSWER Cultural and
individual
Theo believes that everyone must develop his or her own ethical rules. So whereas he
believes that gay marriage should be legal, he understands that other people might feel
differently. Theo would be considered to be a _______ relativist. - ANSWER Individual
Jamal was recently hired as a sales representative for a pharmaceutical company. He
notices that all the other sales reps "pad" their expense accounts by claiming meals with
clients that never took place and then pocket the extra money. Jamal figures that since
everyone else is cheating on their expense accounts, he might as well do the same.
What ethics trap is Jamal falling into? - ANSWER Conformity
Your text outlines three practices to help us avoid ethical traps: slow down, remember
your Life Principles, and - ANSWER Do not trust your first instinct
According to Michael Porter, a company should not undertake a corporate social
responsibility project unless - ANSWER It is profitable for the company in its own right
The government itself prosecutes the wrongdoer in a case involving behavior so
threatening that society outlaws it altogether. This kind of case involves - ANSWER
Criminal Law
The Occupational Safety and Health Administration promulgated a rule requiring
warehouse employees to wear hardhats when in the vicinity of an operating forklift. The
purpose of the hardhats is to protect employees from danger of falling objects. This rule
is - ANSWER Administrative Law
, Common Law refers to - ANSWER law made when judges decide cases and then follow
those decisions in later cases.
Hasbro, Inc., the trademark owner of "Candy Land," sought a court injunction to stop
Internet Entertainment Group, LTD from using the domain name, "candyland.com."
Internet Entertainment Group had established a sexually explicit site at the domain
name. This injunction would have to be issued by - ANSWER a judge
The three branches of government in the United States are - ANSWER the executive,
legislative, and judicial.
The doctrine of stare decisis - ANSWER makes the law more predictable.
In 1992, the North Carolina Supreme Court ruled in a case entitled Goodman v. Wenco
Foods, Inc., that when a substance in food causes injury to a consumer of the food, it is
not a bar to recovery against the seller that the substance was natural to the food. If, in
a 2008 case involving a consumer's injury caused by a fish bone in a bowl of fish
chowder, the court followed the decision in Goodman v. Wenco Foods, Inc., the court's
action in the second case is an example of - ANSWER stare decisis.
When the Food and Drug Administration prohibits a certain drug from being marketed in
the United States, this is - ANSWER an agency regulation.
If the title of an appellate court case appears as Jones v. Smith, - ANSWER you cannot
determine which party is the plaintiff, because when a defendant loses a trial and files
an appeal, some courts (but not all) reverse the names of the parties.
The Minnesota legislature passed a law requiring that employers allow each employee
adequate time within each four consecutive hours of work to utilize the nearest
convenient restroom. This law is - ANSWER a statute.
The doctrine of precedent requires - ANSWER judges to base rulings on previous
cases.
Congress enacted legislation in 1933 to regulate the securities industry and prohibit
various forms of fraud with securities. The Securities Exchange Act of 1934 was passed
a year later. This law created the Securities and Exchange Commission (SEC) as an
independent regulatory entity whose function is to administer the two laws. The SEC
has generated rules and regulations to administer these acts. These rules and
regulations are - ANSWER administrative law.
The federal judicial branch of the U.S. government - ANSWER interprets statutes.
The United States Supreme Court has the power to - ANSWER void laws passed by
Congress.
