TEST BANK BUSINESS ETHICS 12TH EDITION FERREL
(CHAPTER 1-12) QUESTIONS AND CORRECT
ANSWERS (VERIFIED ANSWERS) Q&A
2026|INSTANT DOWNLOAD PDF
1. What is the primary purpose of business ethics?
A. To maximize profits only
B. To determine legal loopholes
C. To guide ethical decision-making in organizations
D. To reduce employee salaries
Correct Answer: C. To guide ethical decision-making in
organizations
Rationale: Business ethics focuses on principles and standards
that determine acceptable conduct in organizations.
2. Which stakeholder group is most directly affected by
product safety issues?
A. Suppliers
B. Customers
C. Competitors
D. Investors
Correct Answer: B. Customers
,Rationale: Customers are directly impacted when products fail
to meet safety standards.
3. An ethical issue arises when a person must choose
between:
A. Two profitable opportunities
B. Legal and illegal behavior only
C. Alternatives evaluated as right or wrong
D. Personal and organizational goals only
Correct Answer: C. Alternatives evaluated as right or wrong
Rationale: Ethical issues involve decisions judged according to
moral principles.
4. Which term refers to the shared beliefs and values within
an organization?
A. Corporate culture
B. Market structure
C. Compliance policy
D. Internal auditing
Correct Answer: A. Corporate culture
Rationale: Corporate culture influences employee behavior and
ethical standards.
,5. The Foreign Corrupt Practices Act primarily prohibits:
A. False advertising
B. Insider trading
C. Bribery of foreign officials
D. Employee discrimination
Correct Answer: C. Bribery of foreign officials
Rationale: The act was established to prevent unethical
international business payments.
6. Which philosophy evaluates ethical behavior based on
outcomes?
A. Deontology
B. Virtue ethics
C. Utilitarianism
D. Moral relativism
Correct Answer: C. Utilitarianism
Rationale: Utilitarianism judges actions by their consequences
and overall benefits.
7. Social responsibility refers to a business’s obligation to:
A. Avoid all risks
B. Maximize shareholder wealth only
C. Contribute positively to society
D. Eliminate competition
, Correct Answer: C. Contribute positively to society
Rationale: Social responsibility includes economic, legal, ethical,
and philanthropic duties.
8. Which stakeholder is primarily concerned with return on
investment?
A. Government agencies
B. Investors
C. Customers
D. Community groups
Correct Answer: B. Investors
Rationale: Investors focus on profitability and financial
performance.
9. Ethical leadership is important because leaders:
A. Control stock prices directly
B. Influence organizational conduct
C. Eliminate all ethical dilemmas
D. Replace government regulation
Correct Answer: B. Influence organizational conduct
Rationale: Employees often model behavior demonstrated by
organizational leaders.
(CHAPTER 1-12) QUESTIONS AND CORRECT
ANSWERS (VERIFIED ANSWERS) Q&A
2026|INSTANT DOWNLOAD PDF
1. What is the primary purpose of business ethics?
A. To maximize profits only
B. To determine legal loopholes
C. To guide ethical decision-making in organizations
D. To reduce employee salaries
Correct Answer: C. To guide ethical decision-making in
organizations
Rationale: Business ethics focuses on principles and standards
that determine acceptable conduct in organizations.
2. Which stakeholder group is most directly affected by
product safety issues?
A. Suppliers
B. Customers
C. Competitors
D. Investors
Correct Answer: B. Customers
,Rationale: Customers are directly impacted when products fail
to meet safety standards.
3. An ethical issue arises when a person must choose
between:
A. Two profitable opportunities
B. Legal and illegal behavior only
C. Alternatives evaluated as right or wrong
D. Personal and organizational goals only
Correct Answer: C. Alternatives evaluated as right or wrong
Rationale: Ethical issues involve decisions judged according to
moral principles.
4. Which term refers to the shared beliefs and values within
an organization?
A. Corporate culture
B. Market structure
C. Compliance policy
D. Internal auditing
Correct Answer: A. Corporate culture
Rationale: Corporate culture influences employee behavior and
ethical standards.
,5. The Foreign Corrupt Practices Act primarily prohibits:
A. False advertising
B. Insider trading
C. Bribery of foreign officials
D. Employee discrimination
Correct Answer: C. Bribery of foreign officials
Rationale: The act was established to prevent unethical
international business payments.
6. Which philosophy evaluates ethical behavior based on
outcomes?
A. Deontology
B. Virtue ethics
C. Utilitarianism
D. Moral relativism
Correct Answer: C. Utilitarianism
Rationale: Utilitarianism judges actions by their consequences
and overall benefits.
7. Social responsibility refers to a business’s obligation to:
A. Avoid all risks
B. Maximize shareholder wealth only
C. Contribute positively to society
D. Eliminate competition
, Correct Answer: C. Contribute positively to society
Rationale: Social responsibility includes economic, legal, ethical,
and philanthropic duties.
8. Which stakeholder is primarily concerned with return on
investment?
A. Government agencies
B. Investors
C. Customers
D. Community groups
Correct Answer: B. Investors
Rationale: Investors focus on profitability and financial
performance.
9. Ethical leadership is important because leaders:
A. Control stock prices directly
B. Influence organizational conduct
C. Eliminate all ethical dilemmas
D. Replace government regulation
Correct Answer: B. Influence organizational conduct
Rationale: Employees often model behavior demonstrated by
organizational leaders.
