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Business Principles Ch.2 Questions with Detailed
Verified Answers
What is considered "ethical" behavior and "unethical" behavior is _______.
Ans: based on both individual beliefs and social concepts
The ethical norm of _______ examines whether an act optimizes the benefits to
those who are affected by it.
Ans: utility
Ethics are based on both social concepts and which of the following?
Ans: Individual beliefs
Tyler is hoping to secure a contract for his company that would expand operations to
Mexico. Tyler knows that the decision-maker for the Mexican company expects to
receive "gifts" from the company that is awarded the contract. Tyler is facing a
dilemma in which type of managerial ethics?
Ans: Behavior toward other economic agents
(Behavior toward other economic agents includes relationships with customers,
competitors, stockholders, suppliers, dealers, and unions.)
Which ethical norm considers whether an act is consistent with people's
responsibilities to each other?
Ans: Caring
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When do most people begin to form their ethical standards?
Ans: Children
(We begin to form ethical standards as children, in response to our perceptions of the
behavior of our parents and other adults.)
Those individuals, groups or organizations directly affected by the practices of an
organization are referred to as its ________.
Ans: Stakeholders
(Stakeholders include employees, investors, local communities, suppliers, and
customers.)
The overall way in which a business balances its commitments to customers,
employees, investors, or other stakeholders is known as _______.
Ans: Social Responsibility
(Social responsibility addresses the overall way in which a business attempts to balance
its conflicting commitments to relevant groups and individuals in its social
environment. These groups include employees, investors, local communities, suppliers,
and customers.)
The way a business balances its commitments to relevant groups and individuals in its
environment is known as ________.
Ans: Social Responsibility
Major corporate stakeholders include all of the following EXCEPT___________.
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Ans: Competitors
Following proper accounting procedures is one way a company is socially responsible
to which major group of corporate stakeholders?
Ans: Investors
(Being socially responsible to investors' means following proper accounting procedures,
providing appropriate information to shareholders about financial performance, and
managing the organization to protect shareholder rights and investments.)
Magnificent Manufacturing, Inc. designed a program to reduce the amount of chemical
waste that the company produces. This is an example of social responsibility to which
major group of corporate stakeholders?
Ans: Local and international communities
(Examples of social responsibility toward communities are contributing to local
programs and minimizing the company's negative impact on the community.)
The owners of the rival gas stations in a small town meet secretly and agree that they
will charge consumers the same price on gasoline so that they can maximize profits.
This is an example of _______.
Ans: Collusion
(Collusion occurs when two or more firms collaborate on such wrongful acts as price
fixing. Collusion is illegal because it eliminates market competition and forces buyers to
pay more than they normally would if competing firms tried to undercut each other.)
What are the Consumer Bill of Rights?
© Get it right 2025 Getaway - Stuvia US All rights reserved
Business Principles Ch.2 Questions with Detailed
Verified Answers
What is considered "ethical" behavior and "unethical" behavior is _______.
Ans: based on both individual beliefs and social concepts
The ethical norm of _______ examines whether an act optimizes the benefits to
those who are affected by it.
Ans: utility
Ethics are based on both social concepts and which of the following?
Ans: Individual beliefs
Tyler is hoping to secure a contract for his company that would expand operations to
Mexico. Tyler knows that the decision-maker for the Mexican company expects to
receive "gifts" from the company that is awarded the contract. Tyler is facing a
dilemma in which type of managerial ethics?
Ans: Behavior toward other economic agents
(Behavior toward other economic agents includes relationships with customers,
competitors, stockholders, suppliers, dealers, and unions.)
Which ethical norm considers whether an act is consistent with people's
responsibilities to each other?
Ans: Caring
© Get it right 2025 Getaway - Stuvia US All rights reserved
,Click here for more: Scholars nexus
When do most people begin to form their ethical standards?
Ans: Children
(We begin to form ethical standards as children, in response to our perceptions of the
behavior of our parents and other adults.)
Those individuals, groups or organizations directly affected by the practices of an
organization are referred to as its ________.
Ans: Stakeholders
(Stakeholders include employees, investors, local communities, suppliers, and
customers.)
The overall way in which a business balances its commitments to customers,
employees, investors, or other stakeholders is known as _______.
Ans: Social Responsibility
(Social responsibility addresses the overall way in which a business attempts to balance
its conflicting commitments to relevant groups and individuals in its social
environment. These groups include employees, investors, local communities, suppliers,
and customers.)
The way a business balances its commitments to relevant groups and individuals in its
environment is known as ________.
Ans: Social Responsibility
Major corporate stakeholders include all of the following EXCEPT___________.
© Get it right 2025 Getaway - Stuvia US All rights reserved
, Click here for more: Scholars nexus
Ans: Competitors
Following proper accounting procedures is one way a company is socially responsible
to which major group of corporate stakeholders?
Ans: Investors
(Being socially responsible to investors' means following proper accounting procedures,
providing appropriate information to shareholders about financial performance, and
managing the organization to protect shareholder rights and investments.)
Magnificent Manufacturing, Inc. designed a program to reduce the amount of chemical
waste that the company produces. This is an example of social responsibility to which
major group of corporate stakeholders?
Ans: Local and international communities
(Examples of social responsibility toward communities are contributing to local
programs and minimizing the company's negative impact on the community.)
The owners of the rival gas stations in a small town meet secretly and agree that they
will charge consumers the same price on gasoline so that they can maximize profits.
This is an example of _______.
Ans: Collusion
(Collusion occurs when two or more firms collaborate on such wrongful acts as price
fixing. Collusion is illegal because it eliminates market competition and forces buyers to
pay more than they normally would if competing firms tried to undercut each other.)
What are the Consumer Bill of Rights?
© Get it right 2025 Getaway - Stuvia US All rights reserved