Test Bank for Business Ethics: Ethical Decision Making and Cases, 13th Edition by O.C. Ferrell, John Fraedrich, Ferrell | Latest 2025/2026 Update

TEST BANK for Business Ethics Ethical Decision Making
and Cases, 13th Edition by O. C. Ferrell, John Fraedrich,
Verified Chapters 1 – 12

,TABLE OF CONTENTS

Part 1: An Overview of Business Ethics

1: The Importance of Business Ethics

2: Stakeholder Relationships, Social Responsibility, and Corporate

Governance

3: Sustainability: Ethical and Social Responsibility Dimensions

Part 2: Ethical Issues and the Institutionalization of Business Ethics

4: The Institutionalization of Business Ethics

5: Emerging Business Ethics Issues

Part 3: The Decision-Making Process

6: Ethical Decision Making

7: Individual Factors: Moral Philosophies and Values

8: Organizational Factors: The Role of Ethical Culture and Relationships

Part 4: Implementing Business Ethics in a Global Economy

9: Developing and Implementing an Effective Ethics Program

10: Global Business Ethics Issues

11: Ethical Leadership

12: Technology: Ethics and Social Responsibility Issues

, 1 The Importance of Business Ethics
C C C C C




1. Principles are C


a. laws and regulations that guide behavior in the world of business.
C C C C C C C C C C



b. mores, values, and customs that guide behavior in general.
C C C C C C C C



c. specific and pervasive boundaries for behavior that are universal and absolute.
C C C C C C C C C C



d. the obligations businesses assume to maximize their positive impact and minimize their
C C C C C C C C C C C


Cnegative impact onstakeholders. C C



e. the mores, values, and customs that parents teach their children.
C C C C C C C C C




ANSWER: c
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 5 C



LEARNING OBJECTIVES: LO: 1-1 - Explore conceptualizations of business ethics from an organizational
C C C C C C C C C C C C C


perspective. C



NATIONAL STANDARDS: United States - BUSPROG: Ethics
C C C C C C C



STATE STANDARDS: C United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities
C C C C C C C C C C



KEYWORDS: Blooms: Comprehension C




2. Social responsibility is
C C


a. an organization's obligation to maximize its positive effects and minimize its negative effects on stakeholders.
C C C C C C C C C C C C C C



b. principles and standards that guide behavior in the world of business.
C C C C C C C C C C



c. a business's responsibility not to pollute the environment.
C C C C C C C



d. a business's responsibility to manufacture products that function properly.
C C C C C C C C



e. charitable contributions made by a business to enhance its image.
C C C C C C C C C




ANSWER: a
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 23 C



LEARNING OBJECTIVES: LO: 1-4 - Gain insight into the extent of ethical misconduct in the workplace and the
C C C C C C C C C C C C C C C C C


pressures for unethical behavior. C C C C



NATIONAL STANDARDS: United States - BUSPROG: Ethics
C C C C C C C



STATE STANDARDS: C United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities
C C C C C C C C C C



KEYWORDS: Blooms: Knowledge C

, 3. The was/were enacted to restore confidence in financial reporting and business ethics after
C C C C C C C C C C C


C the accountingscandals of the early 2000s.
C C C C C


a. Defense Industry Initiative on Business Ethics and Conduct
C C C C C C C



b. Sarbanes-Oxley Act C



c. Federal Sentencing Guidelines for Organizations
C C C C



d. Foreign Corrupt Practices Act C C C



e. Dodd-Frank Wall Street Reform and Consumer Protection Act
C C C C C C C




ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: p. 13 C



LEARNING OBJECTIVES: LO: 1-2 - Examine the historical foundations and evolution of business ethics.
C C C C C C C C C C C C C



NATIONAL STANDARDS: United States - BUSPROG: Ethics
C C C C C C C



STATE STANDARDS: C United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities
C C C C C C C C C C



KEYWORDS: Blooms: Knowledge C




4. The term business ethics is best described by the following statement:
C C C C C C C C C C


a. It is the study and philosophy of human conduct, with an emphasis on determining right and wrong.
C C C C C C C C C C C C C C C C



b. It is an "inquiry into the nature and grounds of morality where the term morality is taken
C C C C C C C C C C C C C C C C


to mean moraljudgments, standards and rules of conduct."
C C C C C C C C



c. It is the "study of the general nature of morals and of specific moral choices; moral philosophy;
C C C C C C C C C C C C C C C C


and the rulesor standards governing the conduct of the members of a profession."
C C C C C C C C C C C C C



d. It is an organization's obligation to maximize its positive effects and minimize its
C C C C C C C C C C C C


negative effects onstakeholders.
C C C



e. It comprises the principles, values, and standards that guide behavior in the world of business.
C C C C C C C C C C C C C C




ANSWER: e
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: p. 5 C



LEARNING OBJECTIVES: LO: 1-1 - Explore conceptualizations of business ethics from an organizational
C C C C C C C C C C C C C


perspective. C



NATIONAL STANDARDS: United States - BUSPROG: Ethics
C C C C C C C



STATE STANDARDS: C United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities
C C C C C C C C C C



KEYWORDS: Blooms: Knowledge C