Chapter 1 ALL CHAPTERS
Velasquez Test Bank
MULTIPLE CHOICE ANSWERS INCLUDED
1. Which of the following is one of the advantages of ethical decision-making as a long-term
business strategy?
M
a. Ethical behavior will increase short-term profits.
b. Ethical behavior will provide positive press opportunities.
E
c. Ethical behavior can ensure positive employee relationships.
d. Ethical behavior can provide significant competitive advantage.
D
Answer: D
C
Topic: The Nature of Business Ethics
Learning Objective: 1.1: Analyze the basic nature of business ethics
Skill Level: Understand the concepts
O
Difficulty Level: Moderate
N
2. Which of the following is defined as standards of what a group or individual feels is right or
wrong, or good or evil?
N
a. Morality
b. Ethics
O
c. Standards
d. Values
I
Answer: A
S
Topic: Moral Reasoning and Moral Decision Making
Learning Objective: 1.2: Emphasize the importance of moral reasoning and moral decision-
S
making in business ethics
Skill Level: Understand the concepts
E
Difficulty Level: Difficult
U
3. Which of the following best describes the criteria by which we judge manners and rules of
behavior?
R
a. Ethical norms
b. Moral norms
c. Nonmoral standards
d. Standard values
Answer: C
Topic: Moral Reasoning and Moral Decision Making
Learning Objective: 1.2: Emphasize the importance of moral reasoning and moral decision-
making in business ethics
1
,Skill Level: Understand the concepts
Difficulty Level: Moderate
4. Which of the following can be described as an example of a moral standard?
a. Do not be late for a meeting.
b. Do not harm others.
c. Do not use a work computer for personal use.
d. Do not discuss pay issues with others.
M
Answer: B
E
Topic: Moral Reasoning and Moral Decision Making
Learning Objective: 1.2: Emphasize the importance of moral reasoning and moral decision-
D
making in business ethics
Skill Level: Apply what you know
Difficulty Level: Moderate
C
5. Which of the following best describes the basis for moral standards?
O
a. Moral standards are based on authority.
b. Moral standards deal with serious issues.
c.
d.
N
Moral standards are based on personal experiences.
Moral standards are based on personal beliefs.
N
Answer: B
Topic: Moral Reasoning and Moral Decision Making
O
Learning Objective: 1.2: Emphasize the importance of moral reasoning and moral decision-
making in business ethics
I
Skill Level: Understand the concepts
S
Difficulty Level: Moderate
S
6. Which of the following best describes ethical standards?
a. Norms of behavior in a society
E
b. Laws that govern acceptable behavior
c. How reasonable moral standards are when applied to your life
U
d. Universal standards based on impartial rules
R
Answer: C
Topic: Moral Reasoning and Moral Decision Making
Learning Objective: 1.2: Emphasize the importance of moral reasoning and moral decision-
making in business ethics
Skill Level: Analyze it
Difficulty Level: Moderate
7. Ethical issues about the economic, political, or legal aspects that a business operates under
are referred to as issues.
a. corporate
b. individual
2
,c. governmental
d. systemic
Answer: D
Topic: Moral Reasoning and Moral Decision Making
Learning Objective: 1.2: Emphasize the importance of moral reasoning and moral decision-
making in business ethics
Skill Level: Apply what you know
M
Difficulty Level: Moderate
E
8. Because companies intentionally engage in actions such as production and sales, some
people believe they should be held morally responsible for their decisions and actions. This view
D
considers companies as having to act as
a. moral agents.
b. machines.
C
c. individuals.
d. regulators.
O
Answer: A
Topic: Moral Reasoning and Moral Decision Making
N
Learning Objective: 1.2: Emphasize the importance of moral reasoning and moral decision-
N
making in business ethics
Skill Level: Analyze it
Difficulty Level: Easy
O
9. There have been several arguments against business ethics. Which argument best supports
I
the idea that when an organization makes money, it improves society, so business ethics are not
S
needed?
a. If it’s legal, it is ethical.
S
b. Profits benefit all.
c. The Loyal Agent states it.
E
d. Conflict is not unusual.
U
Answer: B
Topic: Moral Reasoning and Moral Decision Making
R
Learning Objective: 1.2: Emphasize the importance of moral reasoning and moral decision-
making in business ethics
Skill Level: Analyze it
Difficulty Level: Easy
10. Which of the following best describes an organization’s obligations toward society?
a. Ethics
b. Morals
c. Values
d. Corporate social responsibility
3
, Answer: D
Topic: Moral Reasoning and Moral Decision Making
Learning Objective: 1.2: Emphasize the importance of moral reasoning and moral decision-
making in business ethics
Skill Level: Understand the concepts
Difficulty Level: Moderate
11. Which theory of corporate social responsibility says that an organization should be run with
M
the best interests of anyone who can benefit from the organization in mind?
a. Shareholder theory
E
b. Normative theory
c. Stakeholder theory
D
d. Law of Agency theory
Answer: C
C
Topic: Moral Reasoning and Moral Decision Making
Learning Objective: 1.2: Emphasize the importance of moral reasoning and moral decision-
O
making in business ethics
Skill Level: Understand the concepts
Difficulty Level: Moderate
N
N
12. With which area are many of the ethical issues related to information technology concerned?
a. Privacy
b. Costs
O
c. Accessibility
d. Biology
S I
Answer: A
Topic: Ethical Issues in International Business
S
Learning Objective: 1.3: Examine ethical issues arising from globalization and international
business connections and practices
E
Skill Level: Analyze it
Difficulty Level: Moderate
U
13. Technology now allows for the altering of cells in plants, humans, and animals in a process
R
called
a. genetic engineering.
b. nanotechnology.
c. biotechnology.
d. information engineering.
Answer: A
Topic: Ethical Issues in International Business
Learning Objective: 1.3: Examine ethical issues arising from globalization and international
business connections and practices
Skill Level: Apply what you know
4
Velasquez Test Bank
MULTIPLE CHOICE ANSWERS INCLUDED
1. Which of the following is one of the advantages of ethical decision-making as a long-term
business strategy?
M
a. Ethical behavior will increase short-term profits.
b. Ethical behavior will provide positive press opportunities.
E
c. Ethical behavior can ensure positive employee relationships.
d. Ethical behavior can provide significant competitive advantage.
D
Answer: D
C
Topic: The Nature of Business Ethics
Learning Objective: 1.1: Analyze the basic nature of business ethics
Skill Level: Understand the concepts
O
Difficulty Level: Moderate
N
2. Which of the following is defined as standards of what a group or individual feels is right or
wrong, or good or evil?
N
a. Morality
b. Ethics
O
c. Standards
d. Values
I
Answer: A
S
Topic: Moral Reasoning and Moral Decision Making
Learning Objective: 1.2: Emphasize the importance of moral reasoning and moral decision-
S
making in business ethics
Skill Level: Understand the concepts
E
Difficulty Level: Difficult
U
3. Which of the following best describes the criteria by which we judge manners and rules of
behavior?
R
a. Ethical norms
b. Moral norms
c. Nonmoral standards
d. Standard values
Answer: C
Topic: Moral Reasoning and Moral Decision Making
Learning Objective: 1.2: Emphasize the importance of moral reasoning and moral decision-
making in business ethics
1
,Skill Level: Understand the concepts
Difficulty Level: Moderate
4. Which of the following can be described as an example of a moral standard?
a. Do not be late for a meeting.
b. Do not harm others.
c. Do not use a work computer for personal use.
d. Do not discuss pay issues with others.
M
Answer: B
E
Topic: Moral Reasoning and Moral Decision Making
Learning Objective: 1.2: Emphasize the importance of moral reasoning and moral decision-
D
making in business ethics
Skill Level: Apply what you know
Difficulty Level: Moderate
C
5. Which of the following best describes the basis for moral standards?
O
a. Moral standards are based on authority.
b. Moral standards deal with serious issues.
c.
d.
N
Moral standards are based on personal experiences.
Moral standards are based on personal beliefs.
N
Answer: B
Topic: Moral Reasoning and Moral Decision Making
O
Learning Objective: 1.2: Emphasize the importance of moral reasoning and moral decision-
making in business ethics
I
Skill Level: Understand the concepts
S
Difficulty Level: Moderate
S
6. Which of the following best describes ethical standards?
a. Norms of behavior in a society
E
b. Laws that govern acceptable behavior
c. How reasonable moral standards are when applied to your life
U
d. Universal standards based on impartial rules
R
Answer: C
Topic: Moral Reasoning and Moral Decision Making
Learning Objective: 1.2: Emphasize the importance of moral reasoning and moral decision-
making in business ethics
Skill Level: Analyze it
Difficulty Level: Moderate
7. Ethical issues about the economic, political, or legal aspects that a business operates under
are referred to as issues.
a. corporate
b. individual
2
,c. governmental
d. systemic
Answer: D
Topic: Moral Reasoning and Moral Decision Making
Learning Objective: 1.2: Emphasize the importance of moral reasoning and moral decision-
making in business ethics
Skill Level: Apply what you know
M
Difficulty Level: Moderate
E
8. Because companies intentionally engage in actions such as production and sales, some
people believe they should be held morally responsible for their decisions and actions. This view
D
considers companies as having to act as
a. moral agents.
b. machines.
C
c. individuals.
d. regulators.
O
Answer: A
Topic: Moral Reasoning and Moral Decision Making
N
Learning Objective: 1.2: Emphasize the importance of moral reasoning and moral decision-
N
making in business ethics
Skill Level: Analyze it
Difficulty Level: Easy
O
9. There have been several arguments against business ethics. Which argument best supports
I
the idea that when an organization makes money, it improves society, so business ethics are not
S
needed?
a. If it’s legal, it is ethical.
S
b. Profits benefit all.
c. The Loyal Agent states it.
E
d. Conflict is not unusual.
U
Answer: B
Topic: Moral Reasoning and Moral Decision Making
R
Learning Objective: 1.2: Emphasize the importance of moral reasoning and moral decision-
making in business ethics
Skill Level: Analyze it
Difficulty Level: Easy
10. Which of the following best describes an organization’s obligations toward society?
a. Ethics
b. Morals
c. Values
d. Corporate social responsibility
3
, Answer: D
Topic: Moral Reasoning and Moral Decision Making
Learning Objective: 1.2: Emphasize the importance of moral reasoning and moral decision-
making in business ethics
Skill Level: Understand the concepts
Difficulty Level: Moderate
11. Which theory of corporate social responsibility says that an organization should be run with
M
the best interests of anyone who can benefit from the organization in mind?
a. Shareholder theory
E
b. Normative theory
c. Stakeholder theory
D
d. Law of Agency theory
Answer: C
C
Topic: Moral Reasoning and Moral Decision Making
Learning Objective: 1.2: Emphasize the importance of moral reasoning and moral decision-
O
making in business ethics
Skill Level: Understand the concepts
Difficulty Level: Moderate
N
N
12. With which area are many of the ethical issues related to information technology concerned?
a. Privacy
b. Costs
O
c. Accessibility
d. Biology
S I
Answer: A
Topic: Ethical Issues in International Business
S
Learning Objective: 1.3: Examine ethical issues arising from globalization and international
business connections and practices
E
Skill Level: Analyze it
Difficulty Level: Moderate
U
13. Technology now allows for the altering of cells in plants, humans, and animals in a process
R
called
a. genetic engineering.
b. nanotechnology.
c. biotechnology.
d. information engineering.
Answer: A
Topic: Ethical Issues in International Business
Learning Objective: 1.3: Examine ethical issues arising from globalization and international
business connections and practices
Skill Level: Apply what you know
4
