TEST BANK For Understanding Business 13th Edition by
Nickels, McHugh and McHugh
________ is a set of moral principles or values that governs the conduct of an
individual or a group. - ANSWER: Ethics
Which of the following cases is an example of agreement of ethics and laws? -
ANSWER: a person being penalized for bribing a judge to rule a case in the person's
favor
Law and ethics _______. - ANSWER: while different, are intertwined
Businesses ________. - ANSWER: are subject to the laws of the countries in which
they operate and owe a social responsibility not to harm society
All laws are framed to meet the highest ethical standards - ANSWER: False
An ethically wrong state or condition can still be legal - ANSWER: True
Give an account of the relationship between ethics and law. - ANSWER: Ethics and
the law are intertwined. Although much of the law is based on ethical standards, not
all ethical standards have been enacted as law. The law establishes a minimum
degree of conduct expected by persons and businesses in society. Ethics demands
more. Sometimes the rule of law and the rule of ethics demand the same response
by a person confronted with a problem. In some situations, the law may permit an
act that is ethically wrong. In some others, the law demands certain conduct, but a
person's ethical standards are contrary.
Compare and contrast "business law" and "business ethics." - ANSWER: While most
laws are based on ethical standards, not all ethical standards have been enacted as
law. While the law establishes a minimum degree of conduct expected by persons
and businesses in society, ethics demands more. Ethics and the law are intertwined.
Sometimes the rule of law and the rule of ethics demand the same response by a
person confronted with a problem. However, sometimes the law demands certain
conduct, but a person's ethical standards are to the contrary. Moreover, in some
situations, the law may permit an act that is ethically wrong.
________ is an ethical theory according to which a person adheres to rules or
commands that are from an outside source, such as a book or a central figure. -
ANSWER: Ethical fundamentalism
, A government or political party that strictly derives its ethics and laws from a specific
religious book is an example of ________. - ANSWER: Ethical fundamentalism
Which of the following statements best describes the moral theory of utilitarianism?
- ANSWER: People must choose the action or follow the rule that provides the
greatest good to society.
Which of the following is an apparent disadvantage of utilitarianism? - ANSWER: It
treats morality as if it were an impersonal mathematical calculation.
Which of the following theories of ethics is also referred to as duty ethics? -
ANSWER: Kantian ethics
Which of the following moral theories would closely follow the categorical
imperative, "Do unto others as you would have them do unto you"? - ANSWER:
Kantian ethics
________ is a moral theory according to which people owe moral duties that are
based on universal rules. - ANSWER: Kantian ethics
Reversibility is a principle of Kantian ethics according to which ________. - ANSWER:
a person must abide by the rule he or she uses to judge the morality of someone
else's conduct
Consistency is one of the two important principles of ________ upon which its
universal laws are based. - ANSWER: Kantian ethics
Which of the following is a perceived disadvantage of kantian ethics - ANSWER: It is
based on universal rules that have no common consensus.
Portman, who runs a computer hardware store, had signed a contract with Stewie
Inc. to deliver 125 computer monitors. He was to deliver them by the 5th of August,
but by the 3rd of August, Portman could not arrange for the monitors, as his regular
supplier was not available. He then decided to go to another supplier, who had a
higher selling price for monitors, rather than cancelling the contract with Stewie Inc.,
as he believed it was his duty to do so. Which of the following moral theories
matches Portman's behavior? - ANSWER: Kantian ethics
How are ethical rules established in Kantian ethics? - ANSWER: by a set of universal
rules that are based on consistency and reversibility
________ theory is a moral theory that asserts that fairness is the essence of justice.
- ANSWER: Rawls's social justice
From which of the following theories of morality is Rawls's social justice theory
fundamentally derived? - ANSWER: the social contract theory
Nickels, McHugh and McHugh
________ is a set of moral principles or values that governs the conduct of an
individual or a group. - ANSWER: Ethics
Which of the following cases is an example of agreement of ethics and laws? -
ANSWER: a person being penalized for bribing a judge to rule a case in the person's
favor
Law and ethics _______. - ANSWER: while different, are intertwined
Businesses ________. - ANSWER: are subject to the laws of the countries in which
they operate and owe a social responsibility not to harm society
All laws are framed to meet the highest ethical standards - ANSWER: False
An ethically wrong state or condition can still be legal - ANSWER: True
Give an account of the relationship between ethics and law. - ANSWER: Ethics and
the law are intertwined. Although much of the law is based on ethical standards, not
all ethical standards have been enacted as law. The law establishes a minimum
degree of conduct expected by persons and businesses in society. Ethics demands
more. Sometimes the rule of law and the rule of ethics demand the same response
by a person confronted with a problem. In some situations, the law may permit an
act that is ethically wrong. In some others, the law demands certain conduct, but a
person's ethical standards are contrary.
Compare and contrast "business law" and "business ethics." - ANSWER: While most
laws are based on ethical standards, not all ethical standards have been enacted as
law. While the law establishes a minimum degree of conduct expected by persons
and businesses in society, ethics demands more. Ethics and the law are intertwined.
Sometimes the rule of law and the rule of ethics demand the same response by a
person confronted with a problem. However, sometimes the law demands certain
conduct, but a person's ethical standards are to the contrary. Moreover, in some
situations, the law may permit an act that is ethically wrong.
________ is an ethical theory according to which a person adheres to rules or
commands that are from an outside source, such as a book or a central figure. -
ANSWER: Ethical fundamentalism
, A government or political party that strictly derives its ethics and laws from a specific
religious book is an example of ________. - ANSWER: Ethical fundamentalism
Which of the following statements best describes the moral theory of utilitarianism?
- ANSWER: People must choose the action or follow the rule that provides the
greatest good to society.
Which of the following is an apparent disadvantage of utilitarianism? - ANSWER: It
treats morality as if it were an impersonal mathematical calculation.
Which of the following theories of ethics is also referred to as duty ethics? -
ANSWER: Kantian ethics
Which of the following moral theories would closely follow the categorical
imperative, "Do unto others as you would have them do unto you"? - ANSWER:
Kantian ethics
________ is a moral theory according to which people owe moral duties that are
based on universal rules. - ANSWER: Kantian ethics
Reversibility is a principle of Kantian ethics according to which ________. - ANSWER:
a person must abide by the rule he or she uses to judge the morality of someone
else's conduct
Consistency is one of the two important principles of ________ upon which its
universal laws are based. - ANSWER: Kantian ethics
Which of the following is a perceived disadvantage of kantian ethics - ANSWER: It is
based on universal rules that have no common consensus.
Portman, who runs a computer hardware store, had signed a contract with Stewie
Inc. to deliver 125 computer monitors. He was to deliver them by the 5th of August,
but by the 3rd of August, Portman could not arrange for the monitors, as his regular
supplier was not available. He then decided to go to another supplier, who had a
higher selling price for monitors, rather than cancelling the contract with Stewie Inc.,
as he believed it was his duty to do so. Which of the following moral theories
matches Portman's behavior? - ANSWER: Kantian ethics
How are ethical rules established in Kantian ethics? - ANSWER: by a set of universal
rules that are based on consistency and reversibility
________ theory is a moral theory that asserts that fairness is the essence of justice.
- ANSWER: Rawls's social justice
From which of the following theories of morality is Rawls's social justice theory
fundamentally derived? - ANSWER: the social contract theory
