WGU C223 Business Ethics Week 8 Final Exam Case Studies &
Rationales
Exam Title: WGU C223 Business Ethics - Week 8 Final
Comprehensive Assessment
Version: 2026 Verified Examplify Pack
Total Questions: 100
Time Allotted: 2.5 Hours
Instructions: This exam consists of multiple-choice questions designed to test your understanding of
business ethics concepts covered throughout the WGU C223 course. Each question includes case study
scenarios, the correct answer, and a rationale in italics for comprehensive review. Select the single best
answer for each question.
1. A company discovers that one of its suppliers is using child labor in a foreign country. The
company's executives decide to continue the relationship because the supplier offers the lowest
prices. This decision is an example of:
A. Utilitarianism
B. Ethical relativism
C. Moral disengagement
D. Stakeholder theory
Correct Answer: C
Rationale: Moral disengagement occurs when individuals or organizations rationalize unethical
behavior by distancing themselves from the consequences of their actions. In this case, the
executives are prioritizing cost savings over the ethical implications of supporting child labor,
effectively disengaging from their moral responsibility.
2. A pharmaceutical company raises the price of a life-saving drug by 500% overnight. The CEO argues
that the company has a fiduciary duty to maximize shareholder value. This argument reflects which
ethical framework?
A. Deontological ethics
B. Shareholder primacy theory
C. Virtue ethics
D. Kantian ethics
Correct Answer: B
Rationale: Shareholder primacy theory, famously articulated by Milton Friedman, argues that
the primary responsibility of a corporation is to maximize profits for its shareholders. The CEO's
,argument aligns with this theory, prioritizing shareholder returns over other stakeholder
concerns such as patient access to affordable medication.
3. A whistleblower reveals that a company has been falsifying safety test results for its products. The
whistleblower is protected under which of the following U.S. laws?
A. Sarbanes-Oxley Act
B. Dodd-Frank Act
C. Whistleblower Protection Act
D. All of the above
Correct Answer: D
Rationale: Whistleblowers are protected under multiple federal laws, including the
Whistleblower Protection Act (which protects federal employees), the Sarbanes-Oxley Act (which
protects employees of publicly traded companies who report fraud), and the Dodd-Frank Act
(which provides incentives and protections for whistleblowers in the financial industry). All of
these laws provide varying degrees of protection.
4. A manager at a retail company is offered a "kickback" by a supplier to place larger orders. The
manager refuses the offer. This decision is best explained by:
A. Egoism
B. Deontological ethics
C. Utilitarianism
D. Ethical relativism
Correct Answer: B
Rationale: Deontological ethics, particularly as articulated by Immanuel Kant, focuses on duty
and rules rather than consequences. The manager's refusal to accept a kickback reflects a
commitment to ethical principles and duty, regardless of the potential personal gain. This aligns
with deontological ethics, which emphasizes acting in accordance with moral rules.
5. A company's board of directors approves a merger that will result in significant layoffs but will
increase shareholder value. This decision is evaluated using a utilitarian approach. Which of the
following would a utilitarian consider most important?
A. The rights of the laid-off employees
B. The overall happiness or well-being of all stakeholders
C. The intentions of the board members
D. The company's legal obligations
Correct Answer: B
Rationale: Utilitarianism, as articulated by philosophers like Jeremy Bentham and John Stuart
Mill, evaluates the morality of an action based on its consequences. A utilitarian would consider
the overall happiness or well-being of all stakeholders, weighing the benefits to shareholders
against the harms to laid-off employees and other affected parties. The goal is to maximize
overall utility.
, 6. A company's code of conduct explicitly prohibits employees from accepting gifts from suppliers. A
sales manager accepts a gift card from a supplier but argues that it was a "small token of
appreciation." This situation highlights the importance of:
A. Legal compliance
B. Ethical culture and enforcement
C. Shareholder interests
D. Profit maximization
Correct Answer: B
Rationale: This situation highlights the importance of a strong ethical culture and consistent
enforcement of ethical standards. A code of conduct is only effective if it is actively enforced and
if leaders model ethical behavior. The sales manager's rationalization suggests a need for better
ethics training and accountability within the organization.
7. A company decides to outsource manufacturing to a country with lax environmental regulations to
reduce costs. This decision raises concerns about:
A. Corporate social responsibility
B. Environmental ethics
C. Stakeholder impact
D. All of the above
Correct Answer: D
Rationale: Outsourcing to a country with lax environmental regulations raises multiple ethical
concerns, including corporate social responsibility (the company's obligation to act in the best
interests of society), environmental ethics (the moral obligation to protect the environment),
and stakeholder impact (the effects on communities, workers, and the environment). All of these
considerations are relevant to evaluating the ethics of this decision.
8. A CEO is known for making decisions based on what will benefit the greatest number of people,
even if it means some individuals are harmed. This CEO's decision-making approach aligns with:
A. Deontological ethics
B. Virtue ethics
C. Utilitarianism
D. Ethical egoism
Correct Answer: C
Rationale: Utilitarianism is a consequentialist ethical theory that evaluates actions based on
their outcomes, specifically whether they maximize overall happiness or well-being. A CEO who
prioritizes decisions that benefit the greatest number of people is applying utilitarian principles,
even if some individuals are negatively affected.
9. A company's marketing team creates an advertisement that exaggerates the benefits of a product
and omits potential side effects. This is an example of:
A. Puffery
B. Deceptive advertising
Rationales
Exam Title: WGU C223 Business Ethics - Week 8 Final
Comprehensive Assessment
Version: 2026 Verified Examplify Pack
Total Questions: 100
Time Allotted: 2.5 Hours
Instructions: This exam consists of multiple-choice questions designed to test your understanding of
business ethics concepts covered throughout the WGU C223 course. Each question includes case study
scenarios, the correct answer, and a rationale in italics for comprehensive review. Select the single best
answer for each question.
1. A company discovers that one of its suppliers is using child labor in a foreign country. The
company's executives decide to continue the relationship because the supplier offers the lowest
prices. This decision is an example of:
A. Utilitarianism
B. Ethical relativism
C. Moral disengagement
D. Stakeholder theory
Correct Answer: C
Rationale: Moral disengagement occurs when individuals or organizations rationalize unethical
behavior by distancing themselves from the consequences of their actions. In this case, the
executives are prioritizing cost savings over the ethical implications of supporting child labor,
effectively disengaging from their moral responsibility.
2. A pharmaceutical company raises the price of a life-saving drug by 500% overnight. The CEO argues
that the company has a fiduciary duty to maximize shareholder value. This argument reflects which
ethical framework?
A. Deontological ethics
B. Shareholder primacy theory
C. Virtue ethics
D. Kantian ethics
Correct Answer: B
Rationale: Shareholder primacy theory, famously articulated by Milton Friedman, argues that
the primary responsibility of a corporation is to maximize profits for its shareholders. The CEO's
,argument aligns with this theory, prioritizing shareholder returns over other stakeholder
concerns such as patient access to affordable medication.
3. A whistleblower reveals that a company has been falsifying safety test results for its products. The
whistleblower is protected under which of the following U.S. laws?
A. Sarbanes-Oxley Act
B. Dodd-Frank Act
C. Whistleblower Protection Act
D. All of the above
Correct Answer: D
Rationale: Whistleblowers are protected under multiple federal laws, including the
Whistleblower Protection Act (which protects federal employees), the Sarbanes-Oxley Act (which
protects employees of publicly traded companies who report fraud), and the Dodd-Frank Act
(which provides incentives and protections for whistleblowers in the financial industry). All of
these laws provide varying degrees of protection.
4. A manager at a retail company is offered a "kickback" by a supplier to place larger orders. The
manager refuses the offer. This decision is best explained by:
A. Egoism
B. Deontological ethics
C. Utilitarianism
D. Ethical relativism
Correct Answer: B
Rationale: Deontological ethics, particularly as articulated by Immanuel Kant, focuses on duty
and rules rather than consequences. The manager's refusal to accept a kickback reflects a
commitment to ethical principles and duty, regardless of the potential personal gain. This aligns
with deontological ethics, which emphasizes acting in accordance with moral rules.
5. A company's board of directors approves a merger that will result in significant layoffs but will
increase shareholder value. This decision is evaluated using a utilitarian approach. Which of the
following would a utilitarian consider most important?
A. The rights of the laid-off employees
B. The overall happiness or well-being of all stakeholders
C. The intentions of the board members
D. The company's legal obligations
Correct Answer: B
Rationale: Utilitarianism, as articulated by philosophers like Jeremy Bentham and John Stuart
Mill, evaluates the morality of an action based on its consequences. A utilitarian would consider
the overall happiness or well-being of all stakeholders, weighing the benefits to shareholders
against the harms to laid-off employees and other affected parties. The goal is to maximize
overall utility.
, 6. A company's code of conduct explicitly prohibits employees from accepting gifts from suppliers. A
sales manager accepts a gift card from a supplier but argues that it was a "small token of
appreciation." This situation highlights the importance of:
A. Legal compliance
B. Ethical culture and enforcement
C. Shareholder interests
D. Profit maximization
Correct Answer: B
Rationale: This situation highlights the importance of a strong ethical culture and consistent
enforcement of ethical standards. A code of conduct is only effective if it is actively enforced and
if leaders model ethical behavior. The sales manager's rationalization suggests a need for better
ethics training and accountability within the organization.
7. A company decides to outsource manufacturing to a country with lax environmental regulations to
reduce costs. This decision raises concerns about:
A. Corporate social responsibility
B. Environmental ethics
C. Stakeholder impact
D. All of the above
Correct Answer: D
Rationale: Outsourcing to a country with lax environmental regulations raises multiple ethical
concerns, including corporate social responsibility (the company's obligation to act in the best
interests of society), environmental ethics (the moral obligation to protect the environment),
and stakeholder impact (the effects on communities, workers, and the environment). All of these
considerations are relevant to evaluating the ethics of this decision.
8. A CEO is known for making decisions based on what will benefit the greatest number of people,
even if it means some individuals are harmed. This CEO's decision-making approach aligns with:
A. Deontological ethics
B. Virtue ethics
C. Utilitarianism
D. Ethical egoism
Correct Answer: C
Rationale: Utilitarianism is a consequentialist ethical theory that evaluates actions based on
their outcomes, specifically whether they maximize overall happiness or well-being. A CEO who
prioritizes decisions that benefit the greatest number of people is applying utilitarian principles,
even if some individuals are negatively affected.
9. A company's marketing team creates an advertisement that exaggerates the benefits of a product
and omits potential side effects. This is an example of:
A. Puffery
B. Deceptive advertising
