LES 305 Exam 1 QUESTIONS &
ANSWERS
Compliance with the law meets all ethical standards. (T/F) - Answers:False
I was just following orders" is a defense in law and a test for ethical behavior (T/F) -
Answers:False
Many companies that had been headquartered in the United States have decided to conduct
corporate inversions, in which they sell their assets to a foreign corporation so they can claim a
new residence in that country for corporate tax purposes and avoid paying corporate taxes in the
United States. This action is permissible under which school of social responsibility? -
Answers:inherence school
Many companies that had been headquartered in the United States have decided to conduct
corporate inversions, in which they sell their assets to a foreign corporation so they can claim a
new residence in that country for corporate tax purposes and avoid paying corporate taxes in the
United States. With respect to the corporate inversions described above, they are permissible
under which ethical theory? - Answers:ethical egoism
Which question is missing from this model of the steps for analyzing ethical dilemmas in your
book?
i.Gather the facts
.ii.List missing information and your assumptions
.iii.Generate list of alternatives and apply ethical decision-making models
,.iv.Evaluate resolutions for cost, legality and impact.
v.Recommend and take action. - Answers:List each stakeholder's interests (concerns) in the
dilemma
Is there an ethical issue when restaurants and shops give customers discounts, free meals and
other kickbacks in exchange for good reviews on Yelp and other social media websites?a. No.
Everyone else is doing it, so there is no problem. - Answers:Yes. This creates a conflict of
interest on behalf of the reviewer customers
When you are in a situation like the one described in the question above and you believe that you
won't be influenced by any type of reward because you are more ethical than most people, you
are being influenced by which of the following? - Answers:Overconfidence bias
When you are in a situation like the one described in the question above and you don't want to
have to forfeit this incentive, you are being influenced by which of the following? -
Answers:Loss aversion
Lawyers will often complain that their clients tend to describe their behavior in a way that is very
favorable to themselves, rather than telling the entire truth about a situation in an objective
manner. This distortion of the truth can be influenced by which of the following? - Answers:Self-
serving bias
When large hedge funds look at the issue with Robinhood and GameStop as a "business
problem" rather than an "ethical problem", they are demonstrating which of the following? -
Answers:Framing
You are waiting by the trolley tracks in your neighborhood when you notice that a runaway
trolley car is racing toward five people who don't see it. They will very likely die if no one stops
the trolley. You are standing by a lever and you can see that if you pull the lever, the trolley will
be diverted to a different track, saving the five people. However, there is one person on that
trolley track who will likely be killed if you divert the trolley. You are acting ethically under
which theory? - Answers:Utilitarianism
Committing acts of personal decadence, like driving home drunk after an office holiday party has
no relevance to business ethics (T/F) - Answers:False
, Tolerating someone else's unethical actions is not an ethical dilemma since you did not actually
commit any act that is unethical. (T/F) - Answers:False
The Ice-T case illustrates what can happen when managers don't take shareholders interests into
account when making business decisions (T/F) - Answers:True
Cheating on exams is acceptable because
a. "It is not illegal."
b. "It doesn't really hurt anyone."
c. "The system is unfair."
d. None of the above because all are rationalizations. - Answers:d. None of the above because all
are rationalizations.
Which of the categories of ethical dilemmas should you be concerned about when you have an
arbitration clause in your employment contract and your employer is the one paying the
arbitration fees? - Answers:Engaging in a conflict of interest
Which of the following is not among the categories of ethical dilemmas according to your
textbook?
a. taking things that do not belong to you
b. giving or allowing false impressions
c. perpetrating interpersonal abuse
d. All of the above are ethical breaches.* - Answers:d. All of the above are ethical breaches.*
The "front page of the newspaper test": - Answers:uses the perspective of a reporter who is
reporting impartially
Laura Nash would ask
a. "How would I view the problem if I sat on the other side of the fence? "
b. "How did the situation arise in the first place?"
ANSWERS
Compliance with the law meets all ethical standards. (T/F) - Answers:False
I was just following orders" is a defense in law and a test for ethical behavior (T/F) -
Answers:False
Many companies that had been headquartered in the United States have decided to conduct
corporate inversions, in which they sell their assets to a foreign corporation so they can claim a
new residence in that country for corporate tax purposes and avoid paying corporate taxes in the
United States. This action is permissible under which school of social responsibility? -
Answers:inherence school
Many companies that had been headquartered in the United States have decided to conduct
corporate inversions, in which they sell their assets to a foreign corporation so they can claim a
new residence in that country for corporate tax purposes and avoid paying corporate taxes in the
United States. With respect to the corporate inversions described above, they are permissible
under which ethical theory? - Answers:ethical egoism
Which question is missing from this model of the steps for analyzing ethical dilemmas in your
book?
i.Gather the facts
.ii.List missing information and your assumptions
.iii.Generate list of alternatives and apply ethical decision-making models
,.iv.Evaluate resolutions for cost, legality and impact.
v.Recommend and take action. - Answers:List each stakeholder's interests (concerns) in the
dilemma
Is there an ethical issue when restaurants and shops give customers discounts, free meals and
other kickbacks in exchange for good reviews on Yelp and other social media websites?a. No.
Everyone else is doing it, so there is no problem. - Answers:Yes. This creates a conflict of
interest on behalf of the reviewer customers
When you are in a situation like the one described in the question above and you believe that you
won't be influenced by any type of reward because you are more ethical than most people, you
are being influenced by which of the following? - Answers:Overconfidence bias
When you are in a situation like the one described in the question above and you don't want to
have to forfeit this incentive, you are being influenced by which of the following? -
Answers:Loss aversion
Lawyers will often complain that their clients tend to describe their behavior in a way that is very
favorable to themselves, rather than telling the entire truth about a situation in an objective
manner. This distortion of the truth can be influenced by which of the following? - Answers:Self-
serving bias
When large hedge funds look at the issue with Robinhood and GameStop as a "business
problem" rather than an "ethical problem", they are demonstrating which of the following? -
Answers:Framing
You are waiting by the trolley tracks in your neighborhood when you notice that a runaway
trolley car is racing toward five people who don't see it. They will very likely die if no one stops
the trolley. You are standing by a lever and you can see that if you pull the lever, the trolley will
be diverted to a different track, saving the five people. However, there is one person on that
trolley track who will likely be killed if you divert the trolley. You are acting ethically under
which theory? - Answers:Utilitarianism
Committing acts of personal decadence, like driving home drunk after an office holiday party has
no relevance to business ethics (T/F) - Answers:False
, Tolerating someone else's unethical actions is not an ethical dilemma since you did not actually
commit any act that is unethical. (T/F) - Answers:False
The Ice-T case illustrates what can happen when managers don't take shareholders interests into
account when making business decisions (T/F) - Answers:True
Cheating on exams is acceptable because
a. "It is not illegal."
b. "It doesn't really hurt anyone."
c. "The system is unfair."
d. None of the above because all are rationalizations. - Answers:d. None of the above because all
are rationalizations.
Which of the categories of ethical dilemmas should you be concerned about when you have an
arbitration clause in your employment contract and your employer is the one paying the
arbitration fees? - Answers:Engaging in a conflict of interest
Which of the following is not among the categories of ethical dilemmas according to your
textbook?
a. taking things that do not belong to you
b. giving or allowing false impressions
c. perpetrating interpersonal abuse
d. All of the above are ethical breaches.* - Answers:d. All of the above are ethical breaches.*
The "front page of the newspaper test": - Answers:uses the perspective of a reporter who is
reporting impartially
Laura Nash would ask
a. "How would I view the problem if I sat on the other side of the fence? "
b. "How did the situation arise in the first place?"
