BUSINESS ETHICS ACTUAL EXAM |CORRECT AND VERIFIED ANSWERS|LATEST 2025
Since Starbucks has added additional products to its offerings, it didn't want its logo to
primarily emphasize coffee. -CORRECT ANSWER-In 2011 Starbucks changed its logo from the
mermaid with "Starbucks Coffee" encircling it to a logo of the mermaid without the words
because:
Starbucks's key to success is its laser focus on shareholders' needs, putting them first before
those of other stakeholders. -CORRECT ANSWER-All of the following are true about
Starbucks, EXCEPT:
He grew up poor with a father whose life was nearly ruined by an unsympathetic employer
who did not offer health benefits. -CORRECT ANSWER-Why was Howard Schultz of Starbucks
so committed to providing health benefits to Starbucks' employees?
Shareholders, Customers, Employees, Suppliers, and Community/Environment -CORRECT
ANSWER-Which of the following are Starbucks' key stakeholders?
Media -CORRECT ANSWER-While a power-interest grid is usually used to determine the key
stakeholders of a business on an ongoing basis, it can also be used to focus on key aspects of
a short-term challenge or situation. In the aftermath of the Starbucks incident in the
Philadelphia store in 2018, a likely stakeholder to move into the key stakeholder quadrant in
the short term would be:
Since a cylinder could be incompletely described as a circle or a square when viewed as a
shadow projected from different angles, it's beneficial to study additional perspectives to get
more accurate knowledge of the object. -CORRECT ANSWER-The first week of class we
looked at a picture of a cylinder. The point of this slide in the context of our class discussion
of ethics is:
,Get Ethical! -CORRECT ANSWER-In the embedded video within the "Introduction to Business
Ethics" Kaltura video PowerPoint, the two office workers used the phrase, "Let's_____" ?
Board of Directors -CORRECT ANSWER-In "The Importance of Business Ethics, by Ferrell,
Fraedrich, and Ferrell, the authors connect increased profitability with ethical business
relationships. While there are many business relationships important to a business' success,
the authors emphasized three in particular. Which of the following is NOT one the three
relationships they emphasized?
All of these answers are correct. -CORRECT ANSWER-The point of the perceptual puzzles on
the first week of class was:
SAS -CORRECT ANSWER-In the "Introduction to Business Ethics" Kaltura video PowerPoint,
which of the following companies was described as having a strong industry reputation for
valuing employees and an annual turnover rate of 4% versus the industry average of 20%?
Our perspective is always a valid and full representation of a system or problem at hand or
system. -CORRECT ANSWER-The reading on systems thinking from Cabrera and Cabrera
distinguishes between two related elements of perspectives: a point and a view. Which of
the following was NOT claimed in the reading?
5300 employees across the company were fired for secretly creating new bank and credit
card accounts for customers without their knowledge. -CORRECT ANSWER-In the Wells Fargo
scandal described by Kouchaki:
Many employees personally enjoy "gaming" the system. -CORRECT ANSWER-Which of the
following is NOT one of the reasons Kouchaki provided for why employees set aside their
own ethical compass at work?
All of these answers are correct. -CORRECT ANSWER-Which of the following points does
Allen make about ROE?
, False -CORRECT ANSWER-According to David Boaz, libertarianism holds that the many
necessary conflicts among different economic sectors of society (e.g., manufacturers and
importers) require that government sometimes pick the economic winners and losers when
those conflicts arise.
None of these answers are correct. -CORRECT ANSWER-Which of the following is a view
espoused by modern libertarians, according to David Boaz?
False -CORRECT ANSWER-Friedman believes taxation to advance public goods is never
justified.
Taxation without representation. -CORRECT ANSWER-Friedman describes a corporate
executive acting in a way not in the interest of their employers (i.e., socially responsibly) as:
True -CORRECT ANSWER-Friedman believes it would be better if corporate executives refrain
from cloaking their self-interested actions in a justification of 'social responsibility' because,
according to Friedman, such hypocrisy harms the foundation of a free society.
The impossibility of separating the business case from the ethics case. -CORRECT ANSWER-In
"The False Choice between Business and Ethics," Freeman and Parmer describe two versions
of a business transaction involving a violin to illustrate the "Separation Fallacy." Which of the
following best describes the Separation Fallacy?
Capitalism depends upon prioritizing individual self-interest and maximizing short-term
profitability -CORRECT ANSWER-In "The False Choice between Business and Ethics,"
Freeman and Parmar describe the relational view of business. Which of the following is NOT
one of the points they make?
Entrepreneurs must figure out how to keep passion alive. -CORRECT ANSWER-In his TedX
Talk, "Business is about Purpose," Edward Freeman describes three flaws about the current
story of business. Which of the following is NOT one of the flaws Freeman mentions?
Since Starbucks has added additional products to its offerings, it didn't want its logo to
primarily emphasize coffee. -CORRECT ANSWER-In 2011 Starbucks changed its logo from the
mermaid with "Starbucks Coffee" encircling it to a logo of the mermaid without the words
because:
Starbucks's key to success is its laser focus on shareholders' needs, putting them first before
those of other stakeholders. -CORRECT ANSWER-All of the following are true about
Starbucks, EXCEPT:
He grew up poor with a father whose life was nearly ruined by an unsympathetic employer
who did not offer health benefits. -CORRECT ANSWER-Why was Howard Schultz of Starbucks
so committed to providing health benefits to Starbucks' employees?
Shareholders, Customers, Employees, Suppliers, and Community/Environment -CORRECT
ANSWER-Which of the following are Starbucks' key stakeholders?
Media -CORRECT ANSWER-While a power-interest grid is usually used to determine the key
stakeholders of a business on an ongoing basis, it can also be used to focus on key aspects of
a short-term challenge or situation. In the aftermath of the Starbucks incident in the
Philadelphia store in 2018, a likely stakeholder to move into the key stakeholder quadrant in
the short term would be:
Since a cylinder could be incompletely described as a circle or a square when viewed as a
shadow projected from different angles, it's beneficial to study additional perspectives to get
more accurate knowledge of the object. -CORRECT ANSWER-The first week of class we
looked at a picture of a cylinder. The point of this slide in the context of our class discussion
of ethics is:
,Get Ethical! -CORRECT ANSWER-In the embedded video within the "Introduction to Business
Ethics" Kaltura video PowerPoint, the two office workers used the phrase, "Let's_____" ?
Board of Directors -CORRECT ANSWER-In "The Importance of Business Ethics, by Ferrell,
Fraedrich, and Ferrell, the authors connect increased profitability with ethical business
relationships. While there are many business relationships important to a business' success,
the authors emphasized three in particular. Which of the following is NOT one the three
relationships they emphasized?
All of these answers are correct. -CORRECT ANSWER-The point of the perceptual puzzles on
the first week of class was:
SAS -CORRECT ANSWER-In the "Introduction to Business Ethics" Kaltura video PowerPoint,
which of the following companies was described as having a strong industry reputation for
valuing employees and an annual turnover rate of 4% versus the industry average of 20%?
Our perspective is always a valid and full representation of a system or problem at hand or
system. -CORRECT ANSWER-The reading on systems thinking from Cabrera and Cabrera
distinguishes between two related elements of perspectives: a point and a view. Which of
the following was NOT claimed in the reading?
5300 employees across the company were fired for secretly creating new bank and credit
card accounts for customers without their knowledge. -CORRECT ANSWER-In the Wells Fargo
scandal described by Kouchaki:
Many employees personally enjoy "gaming" the system. -CORRECT ANSWER-Which of the
following is NOT one of the reasons Kouchaki provided for why employees set aside their
own ethical compass at work?
All of these answers are correct. -CORRECT ANSWER-Which of the following points does
Allen make about ROE?
, False -CORRECT ANSWER-According to David Boaz, libertarianism holds that the many
necessary conflicts among different economic sectors of society (e.g., manufacturers and
importers) require that government sometimes pick the economic winners and losers when
those conflicts arise.
None of these answers are correct. -CORRECT ANSWER-Which of the following is a view
espoused by modern libertarians, according to David Boaz?
False -CORRECT ANSWER-Friedman believes taxation to advance public goods is never
justified.
Taxation without representation. -CORRECT ANSWER-Friedman describes a corporate
executive acting in a way not in the interest of their employers (i.e., socially responsibly) as:
True -CORRECT ANSWER-Friedman believes it would be better if corporate executives refrain
from cloaking their self-interested actions in a justification of 'social responsibility' because,
according to Friedman, such hypocrisy harms the foundation of a free society.
The impossibility of separating the business case from the ethics case. -CORRECT ANSWER-In
"The False Choice between Business and Ethics," Freeman and Parmer describe two versions
of a business transaction involving a violin to illustrate the "Separation Fallacy." Which of the
following best describes the Separation Fallacy?
Capitalism depends upon prioritizing individual self-interest and maximizing short-term
profitability -CORRECT ANSWER-In "The False Choice between Business and Ethics,"
Freeman and Parmar describe the relational view of business. Which of the following is NOT
one of the points they make?
Entrepreneurs must figure out how to keep passion alive. -CORRECT ANSWER-In his TedX
Talk, "Business is about Purpose," Edward Freeman describes three flaws about the current
story of business. Which of the following is NOT one of the flaws Freeman mentions?
