Introduction to Business test bank, Chapter 2 economic systems questions, business environment study guide, Introduction to Business exam questions, market structure test bank, business and economics fundamentals, business decision-making questions, verif

This OpenStax ancillary resource is © Rice University under a CC BY 4.0 International license; it may be reproduced or modified but must be
attributed to OpenStax, Rice University and any changes must be noted.


Chapter 2 MAKING ETHICAL DECISIONS AND MANAGING A SOCIALLY RESPONSIBLE BUSINESS


TRUE-FALSE QUESTIONS

Title: ANSWER: F REFERENCE: Understanding Business Ethics LEARNING OUTCOME: 1 RATIONALE:
Utilitarianism is a philosophy that focuses on the consequences of an action to determine whether it's right
or wrong; it seeks the best for the majority.
1. The philosophy of utilitarianism is used to explain why restaurants, theaters, and hotels should make
themselves handicapped accessible.
a. True
b. False

Title: ANSWER: T REFERENCE: Understanding Business Ethics LEARNING OUTCOME: 1
2. Human rights include an individual’s right to life, to freedom, and to the pursuit of happiness.
a. True
b. False

Title: ANSWER: T REFERENCE: Understanding Business Ethics LEARNING OUTCOME: 1
3. The distributive process by which the burdens and rewards that society has to offer are shared varies
from society to society.
a. True
b. False

Title: ANSWER: F REFERENCE: How Organizations Influence Ethical Conduct LEARNING OUTCOME: 2
RATIONALE: Ethical decision making begins with the examples set by managers.
4. Ethical decision making begins in the marketing department.
a. True
b. False

Title: ANSWER: F REFERENCE: How Organizations Influence Ethical Conduct LEARNING OUTCOME: 2
RATIONALE: Ethics training programs teach employees to develop an awareness of questionable business
ethics and how to solve ethical dilemmas.
5. Ethics training programs typically teach how to disguise unethical behavior and not how to avoid
unethical behavior.
a. True
b. False

Title: ANSWER: F REFERENCE: How Organizations Influence Ethical Conduct LEARNING OUTCOME: 2
RATIONALE: Organizations find numerous ways to encourage ethical behavior including leading by example
and offering ethics training programs.
6. If the company wants employees to take ethical training seriously, the training should not include
games.
a. True
b. False

Title: ANSWER: F REFERENCE: How Organizations Influence Ethical Conduct LEARNING OUTCOME: 2
RATIONALE: Organizations find numerous ways to encourage ethical behavior including leading by example
and offering ethics training programs.

,7. All businesses approach ethics the same way.
a. True
b. False


Title: ANSWER: F REFERENCE: How Organizations Influence Ethical Conduct LEARNING OUTCOME: 2
RATIONALE: Codes of ethics can be effective in either format.
8. To be a useful code of ethics, the code should offer broad policies and procedures rather than detailed
rules.
a. True
b. False

Title: ANSWER: T REFERENCE: Managing a Socially Responsible Business LEARNING OUTCOME: 3
9. Social responsibility is a voluntary obligation.
a. True
b. False

Title: ANSWER: T REFERENCE: Managing a Socially Responsible Business LEARNING OUTCOME: 3
10. The most basic responsibility of all businesses is its economic responsibility.
a. True
b. False

Title: ANSWER: T REFERENCE: Managing a Socially Responsible Business LEARNING OUTCOME: 3
11. Organizations can be evaluated on two basic dimensions with regard to social responsibility--legality
and responsibility.
a. True
b. False

Title: ANSWER: T REFERENCE: Responsibilities to Stakeholders LEARNING OUTCOME: 4
12. An organization’s first responsibility is to provide a job to employees.
a. True
b. False

Title: ANSWER: F REFERENCE: Responsibilities to Stakeholders LEARNING OUTCOME: 4
RATIONALE: Enlightened firms are realizing the value of empowerment in improving employee satisfaction.
13. Enlightened firms are realizing that empowerment puts too much stress on employees and are
eliminating empowerment programs.
a. True
b. False

Title: ANSWER: T REFERENCE: Responsibilities to Stakeholders LEARNING OUTCOME: 4
14. It is a firm's responsibility to its customers to deliver what it has promised.
a. True
b. False

Title: ANSWER: T REFERENCE: Responsibilities to Stakeholders LEARNING OUTCOME: 4
15. Businesses engage in environmental protection activities to show their responsibility to their general
public stakeholders.
a. True
October 22, 2018 2

, b. False

Title: ANSWER: F REFERENCE: Responsibilities to Stakeholders LEARNING OUTCOME: 4 RATIONALE: Gifts-
in-kind can be donated as a part of corporate philanthropy.
16. Corporate philanthropy excludes any noncash donations.
a. True
b. False

Title: ANSWER: F REFERENCE: Responsibilities to Stakeholders LEARNING OUTCOME: 4 RATIONALE:
Organizations also have a social responsibility to customers, employees, and society.
17. The only social responsibility that a company has to its investors is an economic responsibility--it must
make a profit.
a. True
b. False

Title: ANSWER: T REFERENCE: Trends in Ethics and Social Responsibility LEARNING OUTCOME: 5
18. Amgen, the largest biotechnology company in the world, donates millions of dollars annually to raise
the value of science literacy in the community and attract bright young minds into the field of science.
Since Amgen, as an employer would benefit from this philanthropy, it would be characterized as strategic
giving.
a. True
b. False


MULTIPLE-CHOICE QUESTIONS

Title: ANSWER: A REFERENCE: Understanding Business Ethics LEARNING OUTCOME: 1
1. _____ is the set of moral standards for judging whether something is right or wrong.
A. Ethics
B. Social responsibility
C. The marketing concept
D. Consumerism
E. Legality

Title: ANSWER: B REFERENCE: Understanding Business Ethics LEARNING OUTCOME: 1 RATIONALE: Ethics is
a set of moral standards for judging whether something is right or wrong.
2. Summer Dean was walking through the mall and found a gym bag lying on the ground. The decision
Dean must make as to whether to keep the gym bag and its contents for herself or turn it into the mall’s
lost and found department involves:
A. consumerism
B. ethics
C. the marketing concept
D. cultural awareness
E. social reciprocity

Title: ANSWER: D REFERENCE: Understanding Business Ethics LEARNING OUTCOME: 1
3. _____ is a philosophy that focuses on the consequences of an action to determine whether it is right or
wrong. This philosophy holds that an action that affects the majority adversely is morally wrong.
A. Distributive justice
October 22, 2018 3