Strayer University LEG 500 Final Exam (pdf) | 2026/2027 | Law
Ethics Corp Gov | Business Law
1. Which of the following best defines ethics?
A) A set of rules for behavior that is legally enforceable
B) A menu of options regarding what we should do
C) A menu of options regarding what we must do
D) Standards that must be met to avoid penalty
Correct Answer: A menu of options regarding what we should do
Rationale: Ethics is the study of moral principles and values that guide
individual and group behavior. Unlike law, which dictates what we must do,
ethics focuses on what we should do, representing a higher standard of
conduct grounded in moral principles and values.
2. The notion that laws must be static and unyielding to provide stability for
a society is:
A) True
B) False
Correct Answer: False
Rationale: Laws must evolve to reflect changing social values, technological
advancements, and new understandings of justice. While stability is
important, rigid, unyielding laws can become outdated and unjust. The legal
system adapts through legislation, judicial interpretation, and constitutional
amendments.
3. Which statement regarding the duty to rescue is false?
A) There is no general duty to rescue an individual
,B) Individual freedom dictates that a person should not be forced to act
C) Under a liberal-communitarian approach, citizens owe a duty to the state
to rescue other citizens
D) When one taunts another person who then puts themselves in danger, the
teaser has a duty to rescue the person teased
Correct Answer: Under a liberal-communitarian approach, citizens owe a duty
to the state to rescue other citizens
Rationale: While some philosophical approaches emphasize civic duty, there
is no generalized duty to rescue. In the United States, there is generally no
legal duty to rescue a stranger, though exceptions exist for special
relationships, contractual obligations, and situations where one creates the
peril.
4. All of the following are considered exceptions to the general rule that
there is no duty to rescue EXCEPT:
A) Pre-existing duty: lifeguards have signed contracts agreeing to rescue
people
B) Witnessing an accident: This creates a duty to step in and help the injured
C) Employer: A duty exists to help an employee injured while working
D) Endangerment: If one puts another in danger, they are obligated to rescue
Correct Answer: Witnessing an accident: This creates a duty to step in and
help the injured
Rationale: Merely witnessing an accident does not create a legal duty to
rescue. Exceptions to the no-duty rule include pre-existing relationships,
contractual obligations, employer-employee relationships, and situations
where one creates the peril. A bystander has no legal obligation to help,
though moral expectations may exist.
,5. Which of the following views would be consistent with the free market
ethics approach advocated by Milton Friedman?
A) Outsourcing to other countries is wrong because it is detrimental to the
U.S. economy
B) When making decisions, corporate managers should consider the interests
of all stakeholders
C) The only social responsibility of business is to increase profits in a legal
and ethical manner
D) Automating processes and replacing workers is unethical
Correct Answer: The only social responsibility of business is to increase
profits in a legal and ethical manner
Rationale: Milton Friedman famously argued that the social responsibility of
business is to increase its profits, provided it operates within the rules of the
game. He rejected the idea that corporations should pursue broader social
goals, believing such decisions should be left to individual shareholders.
6. Which of the following statements best illustrates the view of
"utilitarianism"?
I. From each according to his abilities, to each according to his needs
II. The risk reasonably to be perceived defines the duty to be obeyed
III. An action is right when maximizing welfare and total well-being
IV. Individuals should pursue his or her own self-interest, even at the expense
of others
A) I only
B) III only
C) I and II
D) I, II, and III
, Correct Answer: III only
Rationale: Utilitarianism holds that the right action is the one that produces
the greatest good for the greatest number. Statement III captures this by
emphasizing the maximization of welfare and total well-being. Option I
reflects socialist ideals, and Option IV reflects ethical egoism.
7. According to deontological thinker Kant:
I. It is only acceptable to lie when done to protect an innocent person
II. The level of respect owed to another is based on one's relationship to that
person
III. It is wrong to use another person unless mutual benefit is attached
IV. Once chosen, actions will be repeated whenever the same situation arises
A) I and III
B) II and IV
C) III and IV
D) I, III, and IV
Correct Answer: I and III
Rationale: Kant's deontological ethics emphasizes duty, universal moral
rules, and respect for persons. Kant argued that lying is always wrong, even
to protect an innocent person, and that it is wrong to use another person
merely as a means to an end. He rejected the idea that respect owed is
based on relationship.
8. Virtue ethics:
A) Focuses on what human beings are capable of being
Ethics Corp Gov | Business Law
1. Which of the following best defines ethics?
A) A set of rules for behavior that is legally enforceable
B) A menu of options regarding what we should do
C) A menu of options regarding what we must do
D) Standards that must be met to avoid penalty
Correct Answer: A menu of options regarding what we should do
Rationale: Ethics is the study of moral principles and values that guide
individual and group behavior. Unlike law, which dictates what we must do,
ethics focuses on what we should do, representing a higher standard of
conduct grounded in moral principles and values.
2. The notion that laws must be static and unyielding to provide stability for
a society is:
A) True
B) False
Correct Answer: False
Rationale: Laws must evolve to reflect changing social values, technological
advancements, and new understandings of justice. While stability is
important, rigid, unyielding laws can become outdated and unjust. The legal
system adapts through legislation, judicial interpretation, and constitutional
amendments.
3. Which statement regarding the duty to rescue is false?
A) There is no general duty to rescue an individual
,B) Individual freedom dictates that a person should not be forced to act
C) Under a liberal-communitarian approach, citizens owe a duty to the state
to rescue other citizens
D) When one taunts another person who then puts themselves in danger, the
teaser has a duty to rescue the person teased
Correct Answer: Under a liberal-communitarian approach, citizens owe a duty
to the state to rescue other citizens
Rationale: While some philosophical approaches emphasize civic duty, there
is no generalized duty to rescue. In the United States, there is generally no
legal duty to rescue a stranger, though exceptions exist for special
relationships, contractual obligations, and situations where one creates the
peril.
4. All of the following are considered exceptions to the general rule that
there is no duty to rescue EXCEPT:
A) Pre-existing duty: lifeguards have signed contracts agreeing to rescue
people
B) Witnessing an accident: This creates a duty to step in and help the injured
C) Employer: A duty exists to help an employee injured while working
D) Endangerment: If one puts another in danger, they are obligated to rescue
Correct Answer: Witnessing an accident: This creates a duty to step in and
help the injured
Rationale: Merely witnessing an accident does not create a legal duty to
rescue. Exceptions to the no-duty rule include pre-existing relationships,
contractual obligations, employer-employee relationships, and situations
where one creates the peril. A bystander has no legal obligation to help,
though moral expectations may exist.
,5. Which of the following views would be consistent with the free market
ethics approach advocated by Milton Friedman?
A) Outsourcing to other countries is wrong because it is detrimental to the
U.S. economy
B) When making decisions, corporate managers should consider the interests
of all stakeholders
C) The only social responsibility of business is to increase profits in a legal
and ethical manner
D) Automating processes and replacing workers is unethical
Correct Answer: The only social responsibility of business is to increase
profits in a legal and ethical manner
Rationale: Milton Friedman famously argued that the social responsibility of
business is to increase its profits, provided it operates within the rules of the
game. He rejected the idea that corporations should pursue broader social
goals, believing such decisions should be left to individual shareholders.
6. Which of the following statements best illustrates the view of
"utilitarianism"?
I. From each according to his abilities, to each according to his needs
II. The risk reasonably to be perceived defines the duty to be obeyed
III. An action is right when maximizing welfare and total well-being
IV. Individuals should pursue his or her own self-interest, even at the expense
of others
A) I only
B) III only
C) I and II
D) I, II, and III
, Correct Answer: III only
Rationale: Utilitarianism holds that the right action is the one that produces
the greatest good for the greatest number. Statement III captures this by
emphasizing the maximization of welfare and total well-being. Option I
reflects socialist ideals, and Option IV reflects ethical egoism.
7. According to deontological thinker Kant:
I. It is only acceptable to lie when done to protect an innocent person
II. The level of respect owed to another is based on one's relationship to that
person
III. It is wrong to use another person unless mutual benefit is attached
IV. Once chosen, actions will be repeated whenever the same situation arises
A) I and III
B) II and IV
C) III and IV
D) I, III, and IV
Correct Answer: I and III
Rationale: Kant's deontological ethics emphasizes duty, universal moral
rules, and respect for persons. Kant argued that lying is always wrong, even
to protect an innocent person, and that it is wrong to use another person
merely as a means to an end. He rejected the idea that respect owed is
based on relationship.
8. Virtue ethics:
A) Focuses on what human beings are capable of being
