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Chapter 02 Business Ethics
c c c
MULTIPLEcCHOICEcQUESTIONS
1) Ethicalcconversationciscprimarilycaboutcfindingctheconecandconlycrightcthingctocdo.
A) True
B) False
2) Businesscethicsciscthecapplicationcofcethicsctocthecspecialcproblemscandcopportunitiescexperiencedc byc
businesscpeople.
A) True
B) False
3) Businesscethicscresultscincacsetcofccorrectcdecisions.
A) True
B) False
4) Theconlycsocialcresponsibilitycthatcbusinesseschavecisctocfocusconchowcbusinesscdecisionscaffectc co
mpanyc operations.
A) True
B) False
5) InsurercAmericancInternationalcGroupc(AIG)ciscwellcknowncincthecinsurancecindustrycforcitscethi
calcbusinesscpractices.
A) True
B) False
6) Legalcrulescgoverningccontractclawschavecbeencshapedcinclargecpartcbycourcsensecofccommercialc ethi
cs.
A) True
B) False
7) Incsomeccountries,cbusinessescmustcpaycbribesctocreceivecsuppliesctheycneedctocstaycincbusiness.
A) True
B) False
8) IncancethicalcanalysiscusingcthecWPHcFrameworkcreferencedcincthectext,cownerscarecthecmostc imp
ortantcstakeholderscandcshouldcreceivecthecgreatestcconsiderationcincdecisioncmakingcregardlessco
fcthectypecofcproblemcaddressed.
A) True
B) False
1
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9) UndercthecWPHcframeworkcforcethicalcbusinesscdecisions,cbusinesscdecisionscarecmadecincpursuitc ofc
acparticularcpurposecandcarecinstrumentsctowardcancethicalcend.
A) True
B) False
10) Thectermscshareholdercandcstakeholderchavecthecsamecmeaning.
A) True
B) False
11) Theccommunitycincwhichcacfirmcoperatescwouldcnotcbecconsideredcacstakeholdercofcthecfirm.
A) True
B) False
12) Ethicalcrelativismcandcsituationalcethicscmeancthecsamecthing.
A) True
B) False
13) Consequentialismcprovidescacrigidcsetcofcrulesctocfollowcregardlesscofcthecsituation.
A) True
B) False
14) Onecformcofcconsequentialismciscutilitarianism.
A) True
B) False
15) Ethicalcissuescdocnotcexistcincaccountingcbecausecthecfieldcinvolvescprimarilycobjectivecdata.
A) True
B) False
2
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16) IncthecCasecOpener,cacdefendantcsoughtctocdismisscacplaintiff'sccasecagainstcAccutanecarisingcfromcalle
gationscthatcAccutaneccausedculcerativeccolitiscandcirritablecbowelcsyndrome.cWhichcofcthecfollowingc
courtcrulingscwascthecresultcofcthecdefendant'scmotionctocdismisscbasedconcstatutecofc limitationc ground
s?
A) Thatcthecstatutecofclimitationscbeganctocrunconcthecplaintiff'scclaimcwhencthecriskcofcthecdrugc wascd
iscoveredcbycthecmanufacturer,cnotconcthecdateconcwhichcthecplaintiffcbecamecawarecofc thecriskcan
dcthatcthecstatutecofclimitations,ctherefore,cbarredchercclaim.
B) Thatcthecdefendantccommittedcfraudcpreventingcitcfromcrelyingconcthecstatutecofclimitations.
C) Thatcbecausecthecplaintiffcwascwarnedcbychercdoctorcofcspecificcrisksccausedcbycthecmedication,ct
hecstatutecofclimitationscbeganctocruncpriorctocthectimecshecbecamecawarecofcanc advertisementcdi
scussingcthecrisk;candcthecstatutecofclimitationscbarredchercclaim.
D) Thatcinclawsuitscinvolvingcthisctypecofcdrug,cthereciscnocstatutecofclimitationscbecauseceachc dayc
thecplaintiffcsufferscfromcpaincresultscincthecbeginningcofcacnewccausecofcaction.
E) Thatcbecausecthecplaintiffcwascnotcwarnedcbychercdoctorcofcspecificcrisksccausedcbycthecmedi
cation,cthecstatutecofclimitationscdidcnotcbeginctocruncuntilcshecbecamecawarecofcancadvertise
mentcdiscussingcthec risk.
17) Whichcofcthecfollowingcpresentscacproblemcwhencconsideringcthectheorycofcethicscknowncascabs
olutism?
A) Thecfactcthatcmostcindividualscassociatedcwithcthisctheorychavecbeencprovenctochavecactedctocthec
detrimentcofctheircfollowerscinconecwaycorcanother.
B) Thecallegationcthatcancexcessivecnumbercofcfollowerscactuallycfollowcconsequentialism.
C) Thecunquestionablecnaturecofcthecrulescincmostcabsolutistcrepositoriescseemscoverlycinf
lexiblec whencappliedctocdifferentc situations.
D) Theclackcofcobjectivity.
E) Thecquestionablecnaturecofcthecrulescincmostcabsolutistcrepositoriescseemscoverlycflexiblec wh
encappliedctocdifferentcsituations.
18) Whichcofcthecfollowingciscthecapplicationcofcethicsctocspecialcproblemscandcopportunitiesc exp
eriencedcbycthosecincbusiness?
A) Businessc utilitarianism
B) Businesscethics
C) Situationalcethics
D) Sarbanes-Oxleyc principles
E) Consequentialism
3
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19) Whichcofcthecfollowingciscthecstudycandcpracticecofcdecisionscaboutcwhatciscgood,corcright?
A) Business
B) Consequences
C) Law
D) Morals
E) Ethics
20) Accompanyciscstrugglingctocmakecacdecisioncbutcthecmanagercfindscthereciscnocclearcrightcdecisionc avai
lable.cThisciscancexamplecof
A) Acno-wincsituation
B) Ancethicalcdilemma
C) Acconsequentialcdilemma
D) Acwin-wincsituation
E) Aclegalcdilemma
21) Ancelectriciancworkingcincacsmallctowncisctheconlycelectriciancwithincac100-
milecradius.cHecknowsc thatcpeoplecwhochavecmedicalcequipmentcatchomechavecthechighestcneedcforcpo
wer,csochecchargesc themcdoublectocfixcproblemscwithctheircelectricity,ccomparedcwithcthecaverageccusto
mer.cThec communityciscangrycaboutc thiscchoice.cThisc businesscpracticec iscmostc likely:
A) Ethicalcbecausecitciscnotcillegalcforcaccompanyctocsetcitscpricescbasedconcmaximizingcprofits.
B) Ethicalcbecausecownerscshouldcfocusconlyconcthecimpactcofcdecisionsconcthecfirm.
C) Unethicalcbecausecbusinessescoperatecincaccommunitycandccommunitieschavecexpectationscforc
behaviorcofcindividuals,cgroups,candcbusinesses.
D) Unethicalcbecausecitciscagainstctheclawcforcaccompanyctocchargeconeccustomercmorecthanc ano
ther.
E) Unethicalcbecausectherecisconlyconecmorallycpropercthingctocdocincanycsituation.
22) AclocalcChambercofcCommercecplanscacseminarconc"thecsocialcresponsibilitycofcbusinesscincourc com
munity."cWhatcdoescthatctermcreference?
A) Thecresponsibilitycofcbusinessctocmakecprofitcforcshareholders.
B) Thecexpectationscofcemployeescregardingcwagecrates.
C) Thecexpectationscthatctheccommunitycimposesconcfirmscdoingcbusinesscinsidecitscborders.
D) Thecresponsibilitycofcbusinessctochavecannualcmeetings.
E) Thecexpectationscofcmanagementcincregardctocadequatecutilitycresources.
4
Copyrightc ©c McGraw-Hillc Education.Allc rightsc reserved.c Noc reproductionc orc distributionc withoutc thec priorc writtenc consentc ofc McGraw-Hillc Education.
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c c c c c c c c c c
Chapter 02 Business Ethics
c c c
MULTIPLEcCHOICEcQUESTIONS
1) Ethicalcconversationciscprimarilycaboutcfindingctheconecandconlycrightcthingctocdo.
A) True
B) False
2) Businesscethicsciscthecapplicationcofcethicsctocthecspecialcproblemscandcopportunitiescexperiencedc byc
businesscpeople.
A) True
B) False
3) Businesscethicscresultscincacsetcofccorrectcdecisions.
A) True
B) False
4) Theconlycsocialcresponsibilitycthatcbusinesseschavecisctocfocusconchowcbusinesscdecisionscaffectc co
mpanyc operations.
A) True
B) False
5) InsurercAmericancInternationalcGroupc(AIG)ciscwellcknowncincthecinsurancecindustrycforcitscethi
calcbusinesscpractices.
A) True
B) False
6) Legalcrulescgoverningccontractclawschavecbeencshapedcinclargecpartcbycourcsensecofccommercialc ethi
cs.
A) True
B) False
7) Incsomeccountries,cbusinessescmustcpaycbribesctocreceivecsuppliesctheycneedctocstaycincbusiness.
A) True
B) False
8) IncancethicalcanalysiscusingcthecWPHcFrameworkcreferencedcincthectext,cownerscarecthecmostc imp
ortantcstakeholderscandcshouldcreceivecthecgreatestcconsiderationcincdecisioncmakingcregardlessco
fcthectypecofcproblemcaddressed.
A) True
B) False
1
Copyrightc ©c McGraw-Hillc Education.Allc rightsc reserved.c Noc reproductionc orc distributionc withoutc thec priorc writtenc consentc ofc McGraw-Hillc Education.
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c c c c c c c c c c
9) UndercthecWPHcframeworkcforcethicalcbusinesscdecisions,cbusinesscdecisionscarecmadecincpursuitc ofc
acparticularcpurposecandcarecinstrumentsctowardcancethicalcend.
A) True
B) False
10) Thectermscshareholdercandcstakeholderchavecthecsamecmeaning.
A) True
B) False
11) Theccommunitycincwhichcacfirmcoperatescwouldcnotcbecconsideredcacstakeholdercofcthecfirm.
A) True
B) False
12) Ethicalcrelativismcandcsituationalcethicscmeancthecsamecthing.
A) True
B) False
13) Consequentialismcprovidescacrigidcsetcofcrulesctocfollowcregardlesscofcthecsituation.
A) True
B) False
14) Onecformcofcconsequentialismciscutilitarianism.
A) True
B) False
15) Ethicalcissuescdocnotcexistcincaccountingcbecausecthecfieldcinvolvescprimarilycobjectivecdata.
A) True
B) False
2
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c c c c c c c c c c
16) IncthecCasecOpener,cacdefendantcsoughtctocdismisscacplaintiff'sccasecagainstcAccutanecarisingcfromcalle
gationscthatcAccutaneccausedculcerativeccolitiscandcirritablecbowelcsyndrome.cWhichcofcthecfollowingc
courtcrulingscwascthecresultcofcthecdefendant'scmotionctocdismisscbasedconcstatutecofc limitationc ground
s?
A) Thatcthecstatutecofclimitationscbeganctocrunconcthecplaintiff'scclaimcwhencthecriskcofcthecdrugc wascd
iscoveredcbycthecmanufacturer,cnotconcthecdateconcwhichcthecplaintiffcbecamecawarecofc thecriskcan
dcthatcthecstatutecofclimitations,ctherefore,cbarredchercclaim.
B) Thatcthecdefendantccommittedcfraudcpreventingcitcfromcrelyingconcthecstatutecofclimitations.
C) Thatcbecausecthecplaintiffcwascwarnedcbychercdoctorcofcspecificcrisksccausedcbycthecmedication,ct
hecstatutecofclimitationscbeganctocruncpriorctocthectimecshecbecamecawarecofcanc advertisementcdi
scussingcthecrisk;candcthecstatutecofclimitationscbarredchercclaim.
D) Thatcinclawsuitscinvolvingcthisctypecofcdrug,cthereciscnocstatutecofclimitationscbecauseceachc dayc
thecplaintiffcsufferscfromcpaincresultscincthecbeginningcofcacnewccausecofcaction.
E) Thatcbecausecthecplaintiffcwascnotcwarnedcbychercdoctorcofcspecificcrisksccausedcbycthecmedi
cation,cthecstatutecofclimitationscdidcnotcbeginctocruncuntilcshecbecamecawarecofcancadvertise
mentcdiscussingcthec risk.
17) Whichcofcthecfollowingcpresentscacproblemcwhencconsideringcthectheorycofcethicscknowncascabs
olutism?
A) Thecfactcthatcmostcindividualscassociatedcwithcthisctheorychavecbeencprovenctochavecactedctocthec
detrimentcofctheircfollowerscinconecwaycorcanother.
B) Thecallegationcthatcancexcessivecnumbercofcfollowerscactuallycfollowcconsequentialism.
C) Thecunquestionablecnaturecofcthecrulescincmostcabsolutistcrepositoriescseemscoverlycinf
lexiblec whencappliedctocdifferentc situations.
D) Theclackcofcobjectivity.
E) Thecquestionablecnaturecofcthecrulescincmostcabsolutistcrepositoriescseemscoverlycflexiblec wh
encappliedctocdifferentcsituations.
18) Whichcofcthecfollowingciscthecapplicationcofcethicsctocspecialcproblemscandcopportunitiesc exp
eriencedcbycthosecincbusiness?
A) Businessc utilitarianism
B) Businesscethics
C) Situationalcethics
D) Sarbanes-Oxleyc principles
E) Consequentialism
3
Copyrightc ©c McGraw-Hillc Education.Allc rightsc reserved.c Noc reproductionc orc distributionc withoutc thec priorc writtenc consentc ofc McGraw-Hillc Education.
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, DOWNLOAD THE Test Bank for Dynamic Business Law 4th Edition Kubasek
c c c c c c c c c c
19) Whichcofcthecfollowingciscthecstudycandcpracticecofcdecisionscaboutcwhatciscgood,corcright?
A) Business
B) Consequences
C) Law
D) Morals
E) Ethics
20) Accompanyciscstrugglingctocmakecacdecisioncbutcthecmanagercfindscthereciscnocclearcrightcdecisionc avai
lable.cThisciscancexamplecof
A) Acno-wincsituation
B) Ancethicalcdilemma
C) Acconsequentialcdilemma
D) Acwin-wincsituation
E) Aclegalcdilemma
21) Ancelectriciancworkingcincacsmallctowncisctheconlycelectriciancwithincac100-
milecradius.cHecknowsc thatcpeoplecwhochavecmedicalcequipmentcatchomechavecthechighestcneedcforcpo
wer,csochecchargesc themcdoublectocfixcproblemscwithctheircelectricity,ccomparedcwithcthecaverageccusto
mer.cThec communityciscangrycaboutc thiscchoice.cThisc businesscpracticec iscmostc likely:
A) Ethicalcbecausecitciscnotcillegalcforcaccompanyctocsetcitscpricescbasedconcmaximizingcprofits.
B) Ethicalcbecausecownerscshouldcfocusconlyconcthecimpactcofcdecisionsconcthecfirm.
C) Unethicalcbecausecbusinessescoperatecincaccommunitycandccommunitieschavecexpectationscforc
behaviorcofcindividuals,cgroups,candcbusinesses.
D) Unethicalcbecausecitciscagainstctheclawcforcaccompanyctocchargeconeccustomercmorecthanc ano
ther.
E) Unethicalcbecausectherecisconlyconecmorallycpropercthingctocdocincanycsituation.
22) AclocalcChambercofcCommercecplanscacseminarconc"thecsocialcresponsibilitycofcbusinesscincourc com
munity."cWhatcdoescthatctermcreference?
A) Thecresponsibilitycofcbusinessctocmakecprofitcforcshareholders.
B) Thecexpectationscofcemployeescregardingcwagecrates.
C) Thecexpectationscthatctheccommunitycimposesconcfirmscdoingcbusinesscinsidecitscborders.
D) Thecresponsibilitycofcbusinessctochavecannualcmeetings.
E) Thecexpectationscofcmanagementcincregardctocadequatecutilitycresources.
4
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