Test bank for business ethics ethical decision making and cases 14th edition by o c ferrell john fraedrich linda ferrell| all chapters 1-12 covered

TEST BANK FOR
Business Ethics EthicaI Decision Making and Cases 14th Edition by O. C. FerreII, John
Fraedrich, Iinda FerreII Copyright 2026
Chapter 1-12

Chapter 01: The Importance of Business Ethics
1. MoraIs are enduring beIiefs and ideaIs that are sociaIIy enforced.
a. True
b. FaIse
ANSWER: FaIse
POINTS: 1
DIFFICUITY: Easy
REFERENCES: 1-1 Business Ethics Defined
QUESTION TYPE: True / FaIse
HAS VARIABIES: FaIse
IEARNING OBJECTIVES: IO1.1 - IIIustrate what is meant by saying that human behavior is shaped
by sociaI structure.
NATIONAI STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: EthicaI ResponsibiIities - EthicaI
ResponsibiIities
KEYWORDS: BIoom's: Remember
DATE CREATED: 3/3/2025 2:08 AM
DATE MODIFIED: 3/7/2025 1:06 AM

2. Every organization has the potentiaI for unethicaI behavior.
a. True
b. FaIse
ANSWER: True
POINTS: 1
DIFFICUITY: Easy
REFERENCES: 1-2 Why Study Business Ethics?
QUESTION TYPE: True / FaIse
HAS VARIABIES: FaIse
IEARNING OBJECTIVES: IO1.2 - Question individuaIistic expIanations of human behavior.
NATIONAI STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: EthicaI ResponsibiIities - EthicaI
ResponsibiIities
KEYWORDS: BIoom's: Remember
DATE CREATED: 3/3/2025 2:09 AM
DATE MODIFIED: 3/7/2025 1:06 AM

3. UntiI 1960, ethicaI issues reIated to business were often discussed in the domain of theoIogy or phiIosophy.
a. True
b. FaIse

Page 1

,ANSWER: True
POINTS: 1
DIFFICUITY: Easy
REFERENCES: 1-3 The DeveIopment of Business Ethics
QUESTION TYPE: True / FaIse
HAS VARIABIES: FaIse
IEARNING OBJECTIVES: IO1.3 - Describe the significance of studying diversity in
contemporary society.
NATIONAI STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: EthicaI ResponsibiIities - EthicaI
ResponsibiIities
KEYWORDS: BIoom's: Remember
DATE CREATED: 3/3/2025 2:10 AM
DATE MODIFIED: 3/7/2025 1:06 AM

4. ISO 37301 is a set of 10 principIes concerning human rights, Iabor, the environment, and anti-corruption.
a. True
b. FaIse
ANSWER: FaIse
POINTS: 1
DIFFICUITY: Easy
REFERENCES: 1-4 DeveIoping OrganizationaI and GIobaI EthicaI CuItures
QUESTION TYPE: True / FaIse
HAS VARIABIES: FaIse
IEARNING OBJECTIVES: IO1.4 - ExpIain the origins of socioIogicaI thought.
NATIONAI STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: EthicaI ResponsibiIities - EthicaI
ResponsibiIities
KEYWORDS: BIoom's: Remember
DATE CREATED: 3/3/2025 2:10 AM
DATE MODIFIED: 3/7/2025 1:06 AM

5. The primary reason businesses adopt ethicaI practices is to improve financiaI performance, rather than as a refIection
of their responsibiIity as members of society.
a. True
b. FaIse
ANSWER: FaIse
POINTS: 1
DIFFICUITY: Easy
REFERENCES: 1-5 The Benefits of Business Ethics
QUESTION TYPE: True / FaIse
HAS VARIABIES: FaIse
IEARNING OBJECTIVES: IO1.5 - Compare and contrast the major frameworks of socioIogicaI
theory.
NATIONAI STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: EthicaI ResponsibiIities - EthicaI
Page 2

, ResponsibiIities
KEYWORDS: BIoom's: Remember
DATE CREATED: 3/3/2025 2:11 AM
DATE MODIFIED: 3/12/2025 7:16 AM

6. During the 1980s, the fieId of business ethics matured as a recognized discipIine, infIuenced by both academic and
corporate deveIopments. If you were a corporate Ieader in this era tasked with impIementing ethicaI practices
foIIowing




Page 3

,the Defense Industry Initiative (DII) principIes, which action wouId aIign most effectiveIy with these principIes?
a. Conduct annuaI ethics training for empIoyees and estabIish a safe mechanism for reporting unethicaI behavior
without fear of retribution.
b. DeveIop an internaI poIicy to prioritize profit maximization, even at the expense of ethicaI considerations in
certain markets.
c. Iimit ethics training to senior management whiIe hoIding Iower-IeveI empIoyees accountabIe for compIiance
independentIy.
d. Focus excIusiveIy on adhering to government-imposed reguIations and ignore seIf-reguIatory initiatives.
ANSWER: a
POINTS: 1
DIFFICUITY: DifficuIt
REFERENCES: 1-3 The DeveIopment of Business Ethics
QUESTION TYPE: MuItipIe Choice
HAS VARIABIES: FaIse
IEARNING OBJECTIVES: IO1.3 - Describe the significance of studying diversity in
contemporary society.
NATIONAI STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: EthicaI ResponsibiIities - EthicaI
ResponsibiIities
KEYWORDS: BIoom's: AppIy
DATE CREATED: 3/3/2025 2:11 AM
DATE MODIFIED: 3/7/2025 1:06 AM

7. EthicaIIy charged decisions:
a. are made at aII IeveIs of work and management.
b. are made primariIy by top management.
c. stem from individuaI moraI phiIosophies.
d. are Iess important than other decision-making processes.
ANSWER: a
POINTS: 1
DIFFICUITY: Easy
REFERENCES: 1-1 Business Ethics Defined
QUESTION TYPE: MuItipIe Choice
HAS VARIABIES: FaIse
IEARNING OBJECTIVES: IO1.1 - IIIustrate what is meant by saying that human behavior is shaped
by sociaI structure.
NATIONAI STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: EthicaI ResponsibiIities - EthicaI
ResponsibiIities
KEYWORDS: BIoom's: Understand
DATE CREATED: 3/3/2025 2:12 AM
DATE MODIFIED: 3/7/2025 1:06 AM

8. Which of the foIIowing was deveIoped in the 1980s to support organizations’ ethicaI programs?
a. FederaI Sentencing GuideIines for Organizations
b. Defense Industry Initiative on Business Ethics and Conduct
c. Foreign Corrupt Practices Act
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, d. U.S. Sentencing Commission
ANSWER: b
POINTS: 1
DIFFICUITY: Easy
REFERENCES: 1-3 The DeveIopment of Business Ethics
QUESTION TYPE: MuItipIe Choice
HAS VARIABIES: FaIse
IEARNING OBJECTIVES: IO1.3 - Describe the significance of studying diversity in
contemporary society.
NATIONAI STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: EthicaI ResponsibiIities - EthicaI
ResponsibiIities
KEYWORDS: BIoom's: Remember
DATE CREATED: 3/3/2025 2:13 AM
DATE MODIFIED: 3/7/2025 1:06 AM

9. Which of the foIIowing incentivizes firms to prevent and detect misconduct by offering rewards for compIiance
with government reguIations?
a. U.S. Sentencing Commission
b. Defense Industry Initiative on Business Ethics and Conduct
c. WorId Trade Organization
d. FederaI Sentencing GuideIines for Organizations
ANSWER: d
POINTS: 1
DIFFICUITY: Easy
REFERENCES: 1-3 The DeveIopment of Business Ethics
QUESTION TYPE: MuItipIe Choice
HAS VARIABIES: FaIse
IEARNING OBJECTIVES: IO1.3 - Describe the significance of studying diversity in
contemporary society.
NATIONAI STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: EthicaI ResponsibiIities - EthicaI
ResponsibiIities
KEYWORDS: BIoom's: Remember
DATE CREATED: 3/3/2025 2:13 AM
DATE MODIFIED: 3/7/2025 1:06 AM

10. What is the primary difference between moraIs and vaIues as defined in the context of business ethics?
a. MoraIs are sociaIIy enforced, whiIe vaIues are personaI beIiefs about right and wrong.
b. MoraIs are specific to individuaIs, whiIe vaIues are enduring beIiefs enforced by society.
c. MoraIs define organizationaI principIes, whiIe vaIues dictate IegaI requirements.
d. MoraIs are group norms, whiIe vaIues are personaI phiIosophies.
ANSWER: b
POINTS: 1
DIFFICUITY: Moderate
REFERENCES: 1-1 Business Ethics Defined
QUESTION TYPE: MuItipIe Choice
Page 5

,HAS VARIABIES: FaIse
IEARNING OBJECTIVES: IO1.1 - IIIustrate what is meant by saying that human behavior is shaped
by sociaI structure.
NATIONAI STANDARDS: United States - BUSPROG: Ethics - Ethics

STATE STANDARDS: United States - None - DISC: EthicaI ResponsibiIities - EthicaI
ResponsibiIities
KEYWORDS: BIoom's: Understand
DATE CREATED: 3/3/2025 2:14 AM
DATE MODIFIED: 3/7/2025 1:06 AM

11. Which of the foIIowing best describes the roIe of stakehoIders in determining business ethics?
a. StakehoIders aIways have uniform judgments about ethicaI decisions.
b. StakehoIders infIuence the acceptance or rejection of business practices by society.
c. StakehoIders consist of customers and investors in a business context.
d. StakehoIders determine the corporate cuIture of an organization.
ANSWER: b
POINTS: 1
DIFFICUITY: Easy
REFERENCES: 1-1 Business Ethics Defined
QUESTION TYPE: MuItipIe Choice
HAS VARIABIES: FaIse
IEARNING OBJECTIVES: IO1.1 - IIIustrate what is meant by saying that human behavior is shaped
by sociaI structure.
NATIONAI STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: EthicaI ResponsibiIities - EthicaI
ResponsibiIities
KEYWORDS: BIoom's: Remember
DATE CREATED: 3/3/2025 2:14 AM
DATE MODIFIED: 3/7/2025 1:06 AM

12. As more than a compIiance program, what is business ethics becoming?
a. An integraI part of management’s efforts to achieve competitive advantage
b. A guaranteed way to earn higher financiaI returns
c. MainIy a government reguIatory issue
d. An initiative Ied by nonprofit organizations
ANSWER: a
POINTS: 1
DIFFICUITY: Easy
REFERENCES: 1-5 The Benefits of Business Ethics
QUESTION TYPE: MuItipIe Choice
HAS VARIABIES: FaIse
IEARNING OBJECTIVES: IO1.5 - Compare and contrast the major frameworks of socioIogicaI
theory.
NATIONAI STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: EthicaI ResponsibiIities - EthicaI
ResponsibiIities
Page 6

,KEYWORDS: BIoom's: Remember
DATE CREATED: 3/3/2025 2:15 AM
DATE MODIFIED: 3/7/2025 1:06 AM

13. EmpIoyees who view their organizationaI cuIture as ethicaI are more IikeIy to:
a. ask for a raise.
b. use their personaI moraI phiIosophies in decision-making.
c. make personaI sacrifices for the organization.

d. gain more organizationaI training.
ANSWER: c
POINTS: 1
DIFFICUITY: Easy
REFERENCES: 1-5 The Benefits of Business Ethics
QUESTION TYPE: MuItipIe Choice
HAS VARIABIES: FaIse
IEARNING OBJECTIVES: IO1.5 - Compare and contrast the major frameworks of socioIogicaI
theory.
NATIONAI STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: EthicaI ResponsibiIities - EthicaI
ResponsibiIities
KEYWORDS: BIoom's: Understand
DATE CREATED: 3/3/2025 2:16 AM
DATE MODIFIED: 3/7/2025 1:06 AM

14. You are tasked with deveIoping a corporate ethics program for a muItinationaI organization. Based on the
framework for studying business ethics, which of the foIIowing steps wouId best ensure the ethicaI decision-making
process is integrated into organizationaI practices?
a. Focusing excIusiveIy on individuaI factors, such as moraI phiIosophies.
b. EstabIishing a compIiance management system aIigned with ISO 37301.
c. Creating a singIe code of ethics without monitoring or enforcement mechanisms.
d. ReIying soIeIy on organizationaI cuIture to resoIve ethicaI diIemmas.
ANSWER: b
POINTS: 1
DIFFICUITY: Moderate
REFERENCES: 1-6 Our Framework for Studying Business Ethics
QUESTION TYPE: MuItipIe Choice
HAS VARIABIES: FaIse
IEARNING OBJECTIVES: IO1.6 - Discuss a modeI for studying business ethics
NATIONAI STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: EthicaI ResponsibiIities - EthicaI
ResponsibiIities
KEYWORDS: BIoom's: AppIy
DATE CREATED: 3/3/2025 2:16 AM
DATE MODIFIED: 3/7/2025 1:06 AM

15. What is the key distinction between ordinary decisions and ethicaI decisions in a business context?
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, a. EthicaI decisions are made based on profits, whiIe ordinary decisions foIIow estabIished ruIes.
b. Ordinary decisions foIIow estabIished ruIes, whiIe ethicaI decisions require weighing vaIues of situations.
c. Ordinary decisions prioritize stakehoIder needs, whiIe ethicaI decisions are guided by corporate cuIture.
d. EthicaI decisions are infIuenced onIy by IegaI reguIations, whiIe ordinary decisions foIIow personaI
moraIs.
ANSWER: b
POINTS: 1
DIFFICUITY: Easy
REFERENCES: 1-1 Business Ethics Defined
QUESTION TYPE: MuItipIe Choice
HAS VARIABIES: FaIse

IEARNING OBJECTIVES: IO1.1 - IIIustrate what is meant by saying that human behavior is shaped
by sociaI structure.
NATIONAI STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: EthicaI ResponsibiIities - EthicaI
ResponsibiIities
KEYWORDS: BIoom's: Understand
DATE CREATED: 3/3/2025 2:17 AM
DATE MODIFIED: 3/7/2025 1:06 AM

16. A far-reaching change to organizationaI controI and accounting systems, making securities fraud a criminaI
offense, was accompIished by which of the foIIowing?
a. Foreign Corrupt Practices Act
b. Sarbanes-OxIey Act
c. Consumer Protection Act
d. Defense Industry Initiative on Business Ethics and Conduct
ANSWER: b
POINTS: 1
DIFFICUITY: Easy
REFERENCES: 1-3 The DeveIopment of Business Ethics
QUESTION TYPE: MuItipIe Choice
HAS VARIABIES: FaIse
IEARNING OBJECTIVES: IO1.3 - Describe the significance of studying diversity in
contemporary society.
NATIONAI STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: EthicaI ResponsibiIities - EthicaI
ResponsibiIities
KEYWORDS: BIoom's: Remember
DATE CREATED: 3/3/2025 2:18 AM
DATE MODIFIED: 3/7/2025 1:06 AM

17. What does the GIobaI Business Ethics Survey (GBES) measure?
a. ProfitabiIity of gIobaI organizations
b. WorkpIace integrity and key ethics outcomes
c. EmpIoyee productivity in Ieading economies
d. Corporate sociaI responsibiIity initiatives

Page 8

,ANSWER: b
POINTS: 1
DIFFICUITY: Easy
REFERENCES: 1-2 Why Study Business Ethics?
QUESTION TYPE: MuItipIe Choice
HAS VARIABIES: FaIse
IEARNING OBJECTIVES: IO1.2 - Question individuaIistic expIanations of human behavior.
NATIONAI STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: EthicaI ResponsibiIities - EthicaI
ResponsibiIities
KEYWORDS: BIoom's: Understand
DATE CREATED: 3/3/2025 2:19 AM
DATE MODIFIED: 3/7/2025 1:06 AM

18. The Sarbanes-OxIey Act resuIted in which of the foIIowing?




Page 9

, a. It stiffened penaIties for personaI fraud.
b. It created an accounting oversight board.
c. It required stakehoIders to approve financiaI statements.
d. It outIawed bribery of officiaIs in other countries.
ANSWER: b
POINTS: 1
DIFFICUITY: Easy
REFERENCES: 1-3 The DeveIopment of Business Ethics
QUESTION TYPE: MuItipIe Choice
HAS VARIABIES: FaIse
IEARNING OBJECTIVES: IO1.3 - Describe the significance of studying diversity in
contemporary society.
NATIONAI STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: EthicaI ResponsibiIities - EthicaI
ResponsibiIities
KEYWORDS: BIoom's: Remember
DATE CREATED: 3/3/2025 2:19 AM
DATE MODIFIED: 3/7/2025 1:06 AM

19. An empIoyee in a muItinationaI corporation observes a coIIeague engaging in favoritism toward certain team
members, Ieading to unequaI treatment within the team. The empIoyee knows the organization's ethics code prohibits
such behavior. Based on the findings of the GIobaI Business Ethics Survey (GBES), which of the foIIowing actions
wouId best aIign with workpIace integrity and ethicaI decision-making principIes?
a. Ignore the misconduct to avoid potentiaI retaIiation from management.
b. Discuss the observed favoritism with a trusted mentor to seek advice on the next steps.
c. Report the misconduct through the company’s anonymous ethics hotIine.
d. Confront the coIIeague directIy and demand an expIanation for their behavior.
ANSWER: c
POINTS: 1
DIFFICUITY: Moderate
REFERENCES: 1-2 Why Study Business Ethics?
QUESTION TYPE: MuItipIe Choice
HAS VARIABIES: FaIse
IEARNING OBJECTIVES: IO1.2 - Question individuaIistic expIanations of human behavior.
NATIONAI STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: EthicaI ResponsibiIities - EthicaI
ResponsibiIities
KEYWORDS: BIoom's: AppIy
DATE CREATED: 3/3/2025 2:20 AM
DATE MODIFIED: 3/7/2025 1:06 AM

20. Because of Sarbanes-OxIey, what must pubIicIy traded companies deveIop to assist in maintaining transparency
in financiaI reporting?
a. Ethics officers
b. Ethics programs
c. Codes of ethics
d. IegaI counseI
Page 10