DOWNLOADTHETestBankforLegalandRegulatoryEnvironmentofBusiness
n n n n n n n n n n
18th Edition Pagnattar nn nn
The Legal and Regulatory Environment of Business, 18e
n n n n n n n n n n n n n n
(Pagnattaro) Chapter 2 The Role of Ethics in
nn n n n n nn n n n n n n n n
n Decision Making
n nn
1) Federal sentencing guidelines reduce criminal fines for legal violations in
n n n n n n n n n n n n n n n n n n
n companies that have taken specific steps to self-police ethical/legal
n n n n n n n n n n n n n n n n n
n conduct.
n
Answer: TRUE
Explanation: Federal sentencing guidelines reduce criminal fines for legal
n n n n n n n n n n n n n n n n n n
violations in companies that have taken specific steps to self-
n n n n n n n n n n n n n n n n n n n n
police ethical/legal conduct. Federal law encourages self-regulation.
n n n n n n n n n n n n
Difficulty: 1 Easy n n n n
Topic: Contemporary Business Ethics
n n n n n n n n n n
Learning Objective: 02-01 To compare the connection between law and ethical
nn n n nn nn nn nn nn nn nn nn
n principles. Bloom's:
n Remember n n n n n n
AACSB: Analytical Thinking n n n n n n n n
2) In n n society, the n n n n sharing of morals n n n n n n promotes n n social n n cooperation n n and
n n is n a means
n n n n n of social control.
nn n n
Answer: TRUE
Explanation: In society at large, the sharing of moral values n n n n n n n n n n n n n n n n
n promotes social cooperation and is a significant means of social
n n n nn n n n n n n n n n n n n n n
n control. Shared moral values lead one to accept and trust others.
n n n n n n n n n nn n n n n n n n n n n
Difficulty: 1 Easy n n n n
Topic: The Nature of Ethics n n n n n n
Learning Objective: 02-01 To compare the connection between law and
n n n n n n n n n n n n n n n n
ethical principles. Bloom's:
n n Remember
n n n n
AACSB: Analytical Thinking; Ethics n n n n
3) With n n greater n n diversity n n comes n n greater n n concern n n over n n ethical n n values.
Answer: TRUE
Explanation: Diversity fosters concern over values, and as n n n n n n n n n n n n
n America becomes increasingly diverse, changes in traditional norms
n n n nn n n n n n n n n n n
create challenges in establishing shared ethical values. Difficulty: 1
n n n n n n n n n n n n n n n n n n
n Easyn
Topic: The Nature of Ethics n n n n n n
Learning Objective: 02-01 To compare the connection between law and
n n n n n n n n n n n n n n n n
ethical principles. Bloom's:
n n Remember
n n n n
AACSB: Analytical Thinking; Ethics n n n n
1
Copyright © 2019 McGraw-Hill Education. All rights reserved. n n n n n n n n n n n n
No reproduction or distribution without the prior written consent of
n n n n n n mm mm mm mm n n n n
McGraw-Hill Education. n n n n
,DOWNLOADTHETestBankforLegalandRegulatoryEnvironmentofBusiness
n n n n n n n n n n
18th Edition Pagnattar nn nn
4) Increasing economic interdependence prevents executives and managers
n n n n n n n n n n n n
at a firm from manipulating corporate actions for their own
n n n n n n n n n n n n n n n n n n n n
n benefit.
n
Answer: FALSE
Explanation: A serious ethical problem arises from economic n n n n n n n n n n n n
n interdependence and the modern corporation, which is the structure
n n n n n n n n n n n n n n n n n
n of most large businesses in this country. The problem is that the
n n n n n n n n n n n nn n n n n n n n n n n
n corporate leaders are not the real owners of corporations. The
n n n n n n n n n n n n n n n nn n n
n stockholders are, and although corporate executives and managers may
n n n n n n n n n n n n n n n nn
n own some stock, they seldom own significant percentages of very
n n n n n n n n n n n n n n n n n n n
n large companies. The ethical problem that can arise is that the
n nn n n n n n n n n n n n n n n n n n n
n executives and managers who control what the stockholders own are
n n n n n nn n n n n n n n n n n n n
n sometimes able to manipulate corporate actions for their own benefit,
n n n n n n n n n nn n n n n n n n n
n actions that have unacceptable risks to the owners and others.
n n n n n n n n n n n n n n n n n nn
Increasing economic interdependence promotes concerns about business
n n n n n n n n n n n n
ethics. Difficulty: 1 Easy
n n nn n n n n
Topic: The Nature of Ethics n n n n n n
Learning Objective: 02-01 To compare the connection between law and
n n n n n n n n n n n n n n n n
ethical principles. Bloom's:
n n Remember
n n n n
AACSB: Analytical Thinking; Ethics n n n n
5) Increasing coverage of business decisions by the n n n n n n n n n n n n n n news media n n
n and the Internet has made it harder for large
n n n n n nn n n n n n n n n n n n n organizations to n n
n hide their questionable behavior.
n n n n n n n
Answer: TRUE
Explanation: The news media and the Internet have made it harder forn n n n n n n n n n n n n n n n n n n n n n n n
large organizations to hide their questionable behavior. Extensive media and
n n nn n n n n n n n n n n n n n n n n
Internet coverage of business decisions and their effect on society
n n n n n n n n n n n n n n n n n n n n
n makes us more aware than ever of failures of business ethics.
n n n n n n n nn n n n n n n n n n n n n
Difficulty: 1 Easy n n n n
Topic: The Nature of Ethics
n n n n n n n n n n n n
Learning Objective: 02-01 To compare the connection between law and ethical
nn n n nn nn nn nn nn nn nn nn
n principles. Bloom's:
n Remember n n n n n n
AACSB: Analytical Thinking n n n n n n n n
6) According to Adam Smith, leading a good n n n n n n n n n n n n n n life means n n n n being
n solely concerned about the fortunes of oneself.
n n n nn n n n n n n n n
Answer: FALSE
Explanation: The end result of ethical examination is what n n n n n n n n n n n n n n
n philosophers call the good. The concept of the good is central to
n n n n n nn n n n n n n n n n n n n n n n n
n the study of morality. The good may be defined as those moral
n n n n n n n n n n n n n n n n n n n n n n n
n goals and objectives one chooses to pursue. Thus, leading a good
n n n n n n n n n n n n n n n n n nn n n
n life means more than having the good life. It means more than
n n n n n n n n n n n n n n n n n n n n n n n
n material possessions and luxury. It means pursuing intangibles, being
n nn n n n n n n n n n n n n n n
2
Copyright © 2019 McGraw-Hill Education. All rights reserved. n n n n n n n n n n n n
No reproduction or distribution without the prior written consent of
n n n n n n mm mm mm mm n n n n
McGraw-Hill Education. n n n n
,DOWNLOADTHETestBankforLegalandRegulatoryEnvironmentofBusiness
n n n n n n n n n n
18th Edition Pagnattar nn nn
concerned, as Adam Smith put it,
n n n n n n nn n n n n n n about n n the n n fortunes n n of n n others.
Difficulty: 1 Easy n n n n
Topic: The Nature of Ethics n n n n n n
Learning Objective: 02-01 To compare
n n n n n n n n the n n connection n n between n n law n n and
n ethical
n
3
Copyright © 2019 McGraw-Hill Education. All rights reserved.
n n n n n n n n n n n n
No reproduction or distribution without the prior written consent of
n n n n n n mm mm mm mm n n n n
McGraw-Hill Education. n n n n
, DOWNLOADTHETestBankforLegalandRegulatoryEnvironmentofBusiness
n n n n n n n n n n
18th Edition Pagnattar nn nn
principles. Bloom's: Remember
n n
AACSB:
nn Analytical Thinking n n
4
Copyright © n2019
n McGraw-Hill Education. All rights reserved.
n n n n n n n n n n
No reproduction or distribution without the prior written consent of
n n n n n n mm mm mm mm n n n n
McGraw-Hill Education. n n n n
n n n n n n n n n n
18th Edition Pagnattar nn nn
The Legal and Regulatory Environment of Business, 18e
n n n n n n n n n n n n n n
(Pagnattaro) Chapter 2 The Role of Ethics in
nn n n n n nn n n n n n n n n
n Decision Making
n nn
1) Federal sentencing guidelines reduce criminal fines for legal violations in
n n n n n n n n n n n n n n n n n n
n companies that have taken specific steps to self-police ethical/legal
n n n n n n n n n n n n n n n n n
n conduct.
n
Answer: TRUE
Explanation: Federal sentencing guidelines reduce criminal fines for legal
n n n n n n n n n n n n n n n n n n
violations in companies that have taken specific steps to self-
n n n n n n n n n n n n n n n n n n n n
police ethical/legal conduct. Federal law encourages self-regulation.
n n n n n n n n n n n n
Difficulty: 1 Easy n n n n
Topic: Contemporary Business Ethics
n n n n n n n n n n
Learning Objective: 02-01 To compare the connection between law and ethical
nn n n nn nn nn nn nn nn nn nn
n principles. Bloom's:
n Remember n n n n n n
AACSB: Analytical Thinking n n n n n n n n
2) In n n society, the n n n n sharing of morals n n n n n n promotes n n social n n cooperation n n and
n n is n a means
n n n n n of social control.
nn n n
Answer: TRUE
Explanation: In society at large, the sharing of moral values n n n n n n n n n n n n n n n n
n promotes social cooperation and is a significant means of social
n n n nn n n n n n n n n n n n n n n
n control. Shared moral values lead one to accept and trust others.
n n n n n n n n n nn n n n n n n n n n n
Difficulty: 1 Easy n n n n
Topic: The Nature of Ethics n n n n n n
Learning Objective: 02-01 To compare the connection between law and
n n n n n n n n n n n n n n n n
ethical principles. Bloom's:
n n Remember
n n n n
AACSB: Analytical Thinking; Ethics n n n n
3) With n n greater n n diversity n n comes n n greater n n concern n n over n n ethical n n values.
Answer: TRUE
Explanation: Diversity fosters concern over values, and as n n n n n n n n n n n n
n America becomes increasingly diverse, changes in traditional norms
n n n nn n n n n n n n n n n
create challenges in establishing shared ethical values. Difficulty: 1
n n n n n n n n n n n n n n n n n n
n Easyn
Topic: The Nature of Ethics n n n n n n
Learning Objective: 02-01 To compare the connection between law and
n n n n n n n n n n n n n n n n
ethical principles. Bloom's:
n n Remember
n n n n
AACSB: Analytical Thinking; Ethics n n n n
1
Copyright © 2019 McGraw-Hill Education. All rights reserved. n n n n n n n n n n n n
No reproduction or distribution without the prior written consent of
n n n n n n mm mm mm mm n n n n
McGraw-Hill Education. n n n n
,DOWNLOADTHETestBankforLegalandRegulatoryEnvironmentofBusiness
n n n n n n n n n n
18th Edition Pagnattar nn nn
4) Increasing economic interdependence prevents executives and managers
n n n n n n n n n n n n
at a firm from manipulating corporate actions for their own
n n n n n n n n n n n n n n n n n n n n
n benefit.
n
Answer: FALSE
Explanation: A serious ethical problem arises from economic n n n n n n n n n n n n
n interdependence and the modern corporation, which is the structure
n n n n n n n n n n n n n n n n n
n of most large businesses in this country. The problem is that the
n n n n n n n n n n n nn n n n n n n n n n n
n corporate leaders are not the real owners of corporations. The
n n n n n n n n n n n n n n n nn n n
n stockholders are, and although corporate executives and managers may
n n n n n n n n n n n n n n n nn
n own some stock, they seldom own significant percentages of very
n n n n n n n n n n n n n n n n n n n
n large companies. The ethical problem that can arise is that the
n nn n n n n n n n n n n n n n n n n n n
n executives and managers who control what the stockholders own are
n n n n n nn n n n n n n n n n n n n
n sometimes able to manipulate corporate actions for their own benefit,
n n n n n n n n n nn n n n n n n n n
n actions that have unacceptable risks to the owners and others.
n n n n n n n n n n n n n n n n n nn
Increasing economic interdependence promotes concerns about business
n n n n n n n n n n n n
ethics. Difficulty: 1 Easy
n n nn n n n n
Topic: The Nature of Ethics n n n n n n
Learning Objective: 02-01 To compare the connection between law and
n n n n n n n n n n n n n n n n
ethical principles. Bloom's:
n n Remember
n n n n
AACSB: Analytical Thinking; Ethics n n n n
5) Increasing coverage of business decisions by the n n n n n n n n n n n n n n news media n n
n and the Internet has made it harder for large
n n n n n nn n n n n n n n n n n n n organizations to n n
n hide their questionable behavior.
n n n n n n n
Answer: TRUE
Explanation: The news media and the Internet have made it harder forn n n n n n n n n n n n n n n n n n n n n n n n
large organizations to hide their questionable behavior. Extensive media and
n n nn n n n n n n n n n n n n n n n n
Internet coverage of business decisions and their effect on society
n n n n n n n n n n n n n n n n n n n n
n makes us more aware than ever of failures of business ethics.
n n n n n n n nn n n n n n n n n n n n n
Difficulty: 1 Easy n n n n
Topic: The Nature of Ethics
n n n n n n n n n n n n
Learning Objective: 02-01 To compare the connection between law and ethical
nn n n nn nn nn nn nn nn nn nn
n principles. Bloom's:
n Remember n n n n n n
AACSB: Analytical Thinking n n n n n n n n
6) According to Adam Smith, leading a good n n n n n n n n n n n n n n life means n n n n being
n solely concerned about the fortunes of oneself.
n n n nn n n n n n n n n
Answer: FALSE
Explanation: The end result of ethical examination is what n n n n n n n n n n n n n n
n philosophers call the good. The concept of the good is central to
n n n n n nn n n n n n n n n n n n n n n n n
n the study of morality. The good may be defined as those moral
n n n n n n n n n n n n n n n n n n n n n n n
n goals and objectives one chooses to pursue. Thus, leading a good
n n n n n n n n n n n n n n n n n nn n n
n life means more than having the good life. It means more than
n n n n n n n n n n n n n n n n n n n n n n n
n material possessions and luxury. It means pursuing intangibles, being
n nn n n n n n n n n n n n n n n
2
Copyright © 2019 McGraw-Hill Education. All rights reserved. n n n n n n n n n n n n
No reproduction or distribution without the prior written consent of
n n n n n n mm mm mm mm n n n n
McGraw-Hill Education. n n n n
,DOWNLOADTHETestBankforLegalandRegulatoryEnvironmentofBusiness
n n n n n n n n n n
18th Edition Pagnattar nn nn
concerned, as Adam Smith put it,
n n n n n n nn n n n n n n about n n the n n fortunes n n of n n others.
Difficulty: 1 Easy n n n n
Topic: The Nature of Ethics n n n n n n
Learning Objective: 02-01 To compare
n n n n n n n n the n n connection n n between n n law n n and
n ethical
n
3
Copyright © 2019 McGraw-Hill Education. All rights reserved.
n n n n n n n n n n n n
No reproduction or distribution without the prior written consent of
n n n n n n mm mm mm mm n n n n
McGraw-Hill Education. n n n n
, DOWNLOADTHETestBankforLegalandRegulatoryEnvironmentofBusiness
n n n n n n n n n n
18th Edition Pagnattar nn nn
principles. Bloom's: Remember
n n
AACSB:
nn Analytical Thinking n n
4
Copyright © n2019
n McGraw-Hill Education. All rights reserved.
n n n n n n n n n n
No reproduction or distribution without the prior written consent of
n n n n n n mm mm mm mm n n n n
McGraw-Hill Education. n n n n
