MGMT 405 KU FINAL EXAM UPDATED ACTUAL QUESTIONS AND CORRECT
ANSWERS
Adam Smith - Wealth of Nations Free markets and self-interest drive economic prosperity (invisible hand)
Adam Smith - Theory of Moral Sentiments Humans have morality, sympathy, and concern for others
Connection between Smith's books Markets function best when self-interest is guided by moral values
, Milton Friedman View Business's only responsibility is to increase profits within the rules
Ethical Behavior (Business) Acting in ways consistent with moral principles and societal norms
Ethics vs Law Law is minimum standard; ethics go beyond legal requirements
Nature vs Nurture (Ethics) Ethics shaped by both genetics and environment
Bad Apple Theory Unethical behavior caused by individuals rather than systems
Ethical Dilemma A situation involving conflicting moral choices
Utilitarianism Choose the action that produces the greatest good for the most people
Deontology Focus on duties, rules, and principles
Golden Rule Treat others how you want to be treated
Categorical Imperative Act only in ways that could be universal law
Veil of Ignorance Make decisions without knowing your position in society
Virtue Ethics Focus on character and moral virtues
Disclosure Rule Would you be okay if your decision was made public?
Ethical Decision Making Step 1 Recognize the ethical issue
Ethical Decision Making Step 2 Get the facts
Ethical Decision Making Step 3 Identify stakeholders
Ethical Decision Making Step 4 Consider consequences
Ethical Decision Making Step 5 Identify obligations
Ethical Decision Making Step 6 Consider integrity/character
Ethical Decision Making Step 7 Think creatively
ANSWERS
Adam Smith - Wealth of Nations Free markets and self-interest drive economic prosperity (invisible hand)
Adam Smith - Theory of Moral Sentiments Humans have morality, sympathy, and concern for others
Connection between Smith's books Markets function best when self-interest is guided by moral values
, Milton Friedman View Business's only responsibility is to increase profits within the rules
Ethical Behavior (Business) Acting in ways consistent with moral principles and societal norms
Ethics vs Law Law is minimum standard; ethics go beyond legal requirements
Nature vs Nurture (Ethics) Ethics shaped by both genetics and environment
Bad Apple Theory Unethical behavior caused by individuals rather than systems
Ethical Dilemma A situation involving conflicting moral choices
Utilitarianism Choose the action that produces the greatest good for the most people
Deontology Focus on duties, rules, and principles
Golden Rule Treat others how you want to be treated
Categorical Imperative Act only in ways that could be universal law
Veil of Ignorance Make decisions without knowing your position in society
Virtue Ethics Focus on character and moral virtues
Disclosure Rule Would you be okay if your decision was made public?
Ethical Decision Making Step 1 Recognize the ethical issue
Ethical Decision Making Step 2 Get the facts
Ethical Decision Making Step 3 Identify stakeholders
Ethical Decision Making Step 4 Consider consequences
Ethical Decision Making Step 5 Identify obligations
Ethical Decision Making Step 6 Consider integrity/character
Ethical Decision Making Step 7 Think creatively
