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Which of the following is not one of the steps in the moral decision-making process,
according to the text?
a) moral awareness
b) ethical behavior
c) moral development
d) moral judgement - ANSWER: c) moral development
Identify two of the ways identified in the video segments that your superior in a
business setting can influence the degree of your ethical behavior in business:
a) by increasing your salary based on merit; by punishing unethical behavior
,b) by setting high or low expectations of your ethical behavior; by contributing to
the overall organizational ethical norm
c) by assigning you to a low-performing team of fellow employees; by
micromanaging your work to indicate a lack of trust
d) by routinely accepting your hiring recommendations; by routinely including you
in high-level operational decisions - ANSWER: b) by setting high or low
expectations of your ethical behavior; by contributing to the overall organizational
ethical norm
Which of the following individuals is most likely to refuse to carry out a supervisor's
order that she considers unethical?
a) a person with a high internal locus of control and high ego strength
b) a person with a high external locus of control and high ego strength
c) a person with a high external locus of control and low ego strength
d) a person with a low internal locus of control and low ego strength - ANSWER :a)
a person with a high internal locus of control and high ego strength
John Walker, the Chief Executive Officer of Consolidated Industries, had a tough
decision to make. He had to decide which of four possible plants to close to save
money and boost the value of Consolidated's shares. He decided to close a subsidiary
in a poor third-world nation located 6,000 miles away from the company
headquarters where he was located. He reached that decision after realizing that it
,was the only one of the four plants at which he had met none of the workers. He also
was unwilling to believe that all of the money he had put into a London subsidiary
would not soon pay off if he diverted some of the money saved by closing the third
world plant to the London operations. Which of the following two concepts is
illustrated by the process by which John Walker decided which plant to close:
a) diffusion of responsibility; escalation of commitment
b) Pygmalion Effect; confirmation trap
c) locus of control; Koh - ANSWER :a) diffusion of responsibility; escalation of
commitment
The federal organizational sentencing guidelines influence the ethical behavior of
companies in all of the following ways except:
a) Encouraging the establishment of ethics officers and other effective ethical
compliance measures
b) Reducing a potential fine from criminal misconduct if the company cooperates in
a government investigation of alleged crimes the company committed
c) Increasing the potential culpability score of a corporate officer accused of illegal
conduct
d) Punishing companies that obstruct government investigation into corporate
wrongdoing - ANSWER :c) Increasing the potential culpability score of a corporate
officer accused of illegal conduct
, CFO Jane is concerned about overreacting to the bad press. She tells the group that
she has concluded that a recall's costs to the company far outweigh the benefit of
such a recall to the public. It is virtually certain that no babies actually will be harmed
and leaving the bibs on the market will ensure that low-income consumers, the
biggest consumers of this bib, will continue to be able to afford a Consolidated-made
bib rather than a bib produced by a less well-known company. The company's
shareholders are also likely to be harmed by a costly recall. She thinks the overall
best solution is to leave the bibs on the market with a warning, including in the
company's advertising, that they contain trace amounts of lead and urges the team to
agree with her recommendation. Which of the following theories of ethical decision-
making has Jane followed in making her recommendation?
a) Nozick's rights theory
b) Utilitariani - ANSWER :b) Utilitarianism
John, from Marketing, agrees with Jane that Consolidated should leave the bibs on
the market, agrees with adding a consumer warning to the bibs, but disagrees such a
warning should be included in the company's advertising. The company's advertising
never said or implied that bibs should be put in a baby's mouth or that it was safe to
do so. The company is not doing anything illegal, even with the trace elements of
lead; the bibs still satisfy the government's minimal standards. He recommends that
the bibs stay on the market with the warning Jane suggests to ensure that customers
are making an informed decision. John opposes including the warning in the
company's advertising, both because he feels it is unnecessary and because the costs