WGU C717 Business Ethics 2026/2027 | WGU C717
Study Guide & Task Prep | Ethical Decision-
Making, Corporate Social Responsibility,
Stakeholder Ethics, Workplace Ethics & Business
Law
Question 1: Which ethical theory evaluates the morality of an
action based on its adherence to universal duties and rules,
regardless of the consequences?
A. Utilitarianism
B. Virtue ethics
C. Deontology
D. Ethical relativism
CORRECT ANSWER: C. Deontology
Rationale: Deontology, often associated with Immanuel Kant, holds that
certain actions are inherently right or wrong based on moral duties and
principles, not on the outcomes they produce. This contrasts with
utilitarianism, which judges actions by their consequences, and virtue
ethics, which focuses on the character of the decision-maker.
Question 2: In the context of business ethics, what does the term
"stakeholder" refer to?
A. Only the shareholders who own stock in the company
B. Any individual or group affected by the organization's actions
C. Only the employees who work for the organization
D. Only the customers who purchase the organization's products
CORRECT ANSWER: B. Any individual or group affected by the
organization's actions
Rationale: Stakeholder theory posits that businesses have responsibilities to
all parties affected by their operations, including employees, customers,
suppliers, communities, and shareholders. This broader view contrasts with
the narrow shareholder primacy model.
Question 3: Which of the following best describes corporate social
responsibility (CSR)?
A. A company's legal obligation to pay taxes on time
B. A company's voluntary commitment to contribute positively to society
and the environment
,C. A company's strategy to maximize short-term profits for executives
D. A company's effort to avoid all government regulations
CORRECT ANSWER: B. A company's voluntary commitment to
contribute positively to society and the environment
Rationale: CSR refers to a business's obligation to act in ways that benefit
society beyond mere legal compliance. It encompasses ethical, social, and
environmental responsibilities that go beyond profit maximization.
Question 4: What is the primary focus of virtue ethics in business
decision-making?
A. The consequences of the decision for the greatest number of people
B. The character traits and moral virtues of the decision-maker
C. The rules and duties that must be followed regardless of outcome
D. The legal implications of the decision for the organization
CORRECT ANSWER: B. The character traits and moral virtues of
the decision-maker
Rationale: Virtue ethics asks what a virtuous person would do in a given
situation, emphasizing character traits such as honesty, integrity, courage,
and fairness. It focuses on the actor's moral character rather than on rules
or consequences.
Question 5: In the TechFite scenario, what was the primary ethical
issue regarding employee compensation?
A. Employees were paid below the federal minimum wage
B. Employees were reduced to part-time status to avoid providing benefits
C. Employees were required to work overtime without any compensation
D. Employees were denied their legally mandated lunch breaks
CORRECT ANSWER: B. Employees were reduced to part-time status
to avoid providing benefits
Rationale: TechFite reduced many full-time employees to part-time status,
which eliminated their access to health insurance and other benefits. While
this action may have been technically legal, it was ethically problematic
because it exploited workers and contradicted the company's stated values.
Question 6: Which of the following is an example of a conflict of
interest in a business setting?
,A. A manager promotes a family member over a more qualified candidate
B. A company donates a portion of its profits to a local charity
C. An employee reports a safety violation to a regulatory agency
D. A firm conducts regular audits of its financial statements
CORRECT ANSWER: A. A manager promotes a family member over
a more qualified candidate
Rationale: A conflict of interest arises when a person's private interests
interfere, or appear to interfere, with their professional obligations.
Promoting a relative over a more qualified applicant creates a situation
where personal loyalty may compromise the organization's interest in hiring
the best talent.
Question 7: What is the primary purpose of the Sarbanes-Oxley Act
of 2002?
A. To regulate environmental pollution by corporations
B. To address corporate and accounting scandals through improved
financial disclosure
C. To establish minimum wage requirements for all workers
D. To protect consumers from unsafe products
CORRECT ANSWER: B. To address corporate and accounting
scandals through improved financial disclosure
Rationale: The Sarbanes-Oxley Act was enacted in response to major
corporate and accounting scandals. It established new standards for public
company boards, management, and public accounting firms, including
requirements for ethical codes for senior financial officers.
Question 8: Which stakeholder group is considered "primary"
because its participation is essential to the survival of the
business?
A. Media outlets
B. Trade associations
C. Employees
D. Special-interest groups
CORRECT ANSWER: C. Employees
Rationale: Primary stakeholders are those whose participation is essential
for the business to survive and thrive. Employees, customers, and investors
, are primary stakeholders. Media, trade associations, and special-interest
groups are secondary stakeholders who can influence the firm but are not
essential for its survival.
Question 9: What is an ethical dilemma?
A. A situation where there is a clear right answer that is easy to identify
B. A situation where an individual must choose between two or more
competing values
C. A situation where a law has been clearly broken by an organization
D. A situation where no stakeholders are affected by the decision
CORRECT ANSWER: B. A situation where an individual must
choose between two or more competing values
Rationale: An ethical dilemma occurs when a person faces a choice
between two or more competing values or obligations, with neither option
being clearly and entirely acceptable. This is a central concept in business
ethics for analyzing complex situations.
Question 10: What does the term "whistleblowing" refer to in a
business context?
A. Disclosing illegal or unethical practices to parties who can take action
B. Discussing workplace problems informally with coworkers
C. Following all company policies without question
D. Ignoring misconduct to protect the organization's reputation
CORRECT ANSWER: A. Disclosing illegal or unethical practices to
parties who can take action
Rationale: Whistleblowing is the disclosure by an employee of illegal,
immoral, or illegitimate practices under the control of their employer to
persons or organizations that may be able to effect action. It is a
mechanism for promoting organizational accountability.
Question 11: Which ethical framework focuses on maximizing
overall happiness or utility for the greatest number of people?
A. Deontology
B. Utilitarianism
C. Virtue ethics
D. Ethical relativism
Study Guide & Task Prep | Ethical Decision-
Making, Corporate Social Responsibility,
Stakeholder Ethics, Workplace Ethics & Business
Law
Question 1: Which ethical theory evaluates the morality of an
action based on its adherence to universal duties and rules,
regardless of the consequences?
A. Utilitarianism
B. Virtue ethics
C. Deontology
D. Ethical relativism
CORRECT ANSWER: C. Deontology
Rationale: Deontology, often associated with Immanuel Kant, holds that
certain actions are inherently right or wrong based on moral duties and
principles, not on the outcomes they produce. This contrasts with
utilitarianism, which judges actions by their consequences, and virtue
ethics, which focuses on the character of the decision-maker.
Question 2: In the context of business ethics, what does the term
"stakeholder" refer to?
A. Only the shareholders who own stock in the company
B. Any individual or group affected by the organization's actions
C. Only the employees who work for the organization
D. Only the customers who purchase the organization's products
CORRECT ANSWER: B. Any individual or group affected by the
organization's actions
Rationale: Stakeholder theory posits that businesses have responsibilities to
all parties affected by their operations, including employees, customers,
suppliers, communities, and shareholders. This broader view contrasts with
the narrow shareholder primacy model.
Question 3: Which of the following best describes corporate social
responsibility (CSR)?
A. A company's legal obligation to pay taxes on time
B. A company's voluntary commitment to contribute positively to society
and the environment
,C. A company's strategy to maximize short-term profits for executives
D. A company's effort to avoid all government regulations
CORRECT ANSWER: B. A company's voluntary commitment to
contribute positively to society and the environment
Rationale: CSR refers to a business's obligation to act in ways that benefit
society beyond mere legal compliance. It encompasses ethical, social, and
environmental responsibilities that go beyond profit maximization.
Question 4: What is the primary focus of virtue ethics in business
decision-making?
A. The consequences of the decision for the greatest number of people
B. The character traits and moral virtues of the decision-maker
C. The rules and duties that must be followed regardless of outcome
D. The legal implications of the decision for the organization
CORRECT ANSWER: B. The character traits and moral virtues of
the decision-maker
Rationale: Virtue ethics asks what a virtuous person would do in a given
situation, emphasizing character traits such as honesty, integrity, courage,
and fairness. It focuses on the actor's moral character rather than on rules
or consequences.
Question 5: In the TechFite scenario, what was the primary ethical
issue regarding employee compensation?
A. Employees were paid below the federal minimum wage
B. Employees were reduced to part-time status to avoid providing benefits
C. Employees were required to work overtime without any compensation
D. Employees were denied their legally mandated lunch breaks
CORRECT ANSWER: B. Employees were reduced to part-time status
to avoid providing benefits
Rationale: TechFite reduced many full-time employees to part-time status,
which eliminated their access to health insurance and other benefits. While
this action may have been technically legal, it was ethically problematic
because it exploited workers and contradicted the company's stated values.
Question 6: Which of the following is an example of a conflict of
interest in a business setting?
,A. A manager promotes a family member over a more qualified candidate
B. A company donates a portion of its profits to a local charity
C. An employee reports a safety violation to a regulatory agency
D. A firm conducts regular audits of its financial statements
CORRECT ANSWER: A. A manager promotes a family member over
a more qualified candidate
Rationale: A conflict of interest arises when a person's private interests
interfere, or appear to interfere, with their professional obligations.
Promoting a relative over a more qualified applicant creates a situation
where personal loyalty may compromise the organization's interest in hiring
the best talent.
Question 7: What is the primary purpose of the Sarbanes-Oxley Act
of 2002?
A. To regulate environmental pollution by corporations
B. To address corporate and accounting scandals through improved
financial disclosure
C. To establish minimum wage requirements for all workers
D. To protect consumers from unsafe products
CORRECT ANSWER: B. To address corporate and accounting
scandals through improved financial disclosure
Rationale: The Sarbanes-Oxley Act was enacted in response to major
corporate and accounting scandals. It established new standards for public
company boards, management, and public accounting firms, including
requirements for ethical codes for senior financial officers.
Question 8: Which stakeholder group is considered "primary"
because its participation is essential to the survival of the
business?
A. Media outlets
B. Trade associations
C. Employees
D. Special-interest groups
CORRECT ANSWER: C. Employees
Rationale: Primary stakeholders are those whose participation is essential
for the business to survive and thrive. Employees, customers, and investors
, are primary stakeholders. Media, trade associations, and special-interest
groups are secondary stakeholders who can influence the firm but are not
essential for its survival.
Question 9: What is an ethical dilemma?
A. A situation where there is a clear right answer that is easy to identify
B. A situation where an individual must choose between two or more
competing values
C. A situation where a law has been clearly broken by an organization
D. A situation where no stakeholders are affected by the decision
CORRECT ANSWER: B. A situation where an individual must
choose between two or more competing values
Rationale: An ethical dilemma occurs when a person faces a choice
between two or more competing values or obligations, with neither option
being clearly and entirely acceptable. This is a central concept in business
ethics for analyzing complex situations.
Question 10: What does the term "whistleblowing" refer to in a
business context?
A. Disclosing illegal or unethical practices to parties who can take action
B. Discussing workplace problems informally with coworkers
C. Following all company policies without question
D. Ignoring misconduct to protect the organization's reputation
CORRECT ANSWER: A. Disclosing illegal or unethical practices to
parties who can take action
Rationale: Whistleblowing is the disclosure by an employee of illegal,
immoral, or illegitimate practices under the control of their employer to
persons or organizations that may be able to effect action. It is a
mechanism for promoting organizational accountability.
Question 11: Which ethical framework focuses on maximizing
overall happiness or utility for the greatest number of people?
A. Deontology
B. Utilitarianism
C. Virtue ethics
D. Ethical relativism
