Test Bank for Business Ethics: Ethical Decision Making & Cases, 10th Edition by O.C. Ferrell, John Fraedrich, and Linda Ferrell – Comprehensive Chapters 1–12

TEST BANK
Business Ethics Ethical Decision Making and Cases, 13th Edition
By O. C. Ferrell, John Fraedrich, All Chapters 1 - 12

,TABLE OF CONTENTS
Part 1: An Overview of Business Ethics
1: The Importance of Business Ethics
2: Stakeholder Relationships, Social Responsibility, and Corporate Governance
3: Sustainability: Ethical and Social Responsibility Dimensions
Part 2: Ethical Issues and the Institutionalization of Business Ethics
4: The Institutionalization of Business Ethics
5: Emerging Business Ethics Issues
Part 3: The Decision-Making Process
6: Ethical Decision Making
7: Individual Factors: Moral Philosophies and Values
8: Organizational Factors: The Role of Ethical Culture and Relationships
Part 4: Implementing Business Ethics in a Global Economy
9: Developing and Implementing an Effective Ethics Program
10: Global Business Ethics Issues
11: Ethical Leadership
12: Technology: Ethics and Social Responsibility Issues

,1: The Importance of Business Ethics

1. Principles are P



a. laws and regulations that guide behavior in the world of business.
P P P P P P P P P P




b. mores, values, and customs that guide behavior in general.
P P P P P P P P




c. specific and pervasive boundaries for behavior that are universal and absolute.
P P P P P P P P P P




d. the obligations businesses assume to maximize their positive impact and minimize their negative impact on
P P P P P P P P P P P P P P P



stakeholders.
e. the mores, values, and customs that parents teach their children.
P P P P P P P P P




ANSWER: c
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 5 P




LEARNING OBJECTIVES: LO: 1-1 - Explore conceptualizations of business ethics from an organizational
P P P P P P P P P P P P P



perspective.
NATIONAL STANDARDS: United States - BUSPROG: Ethics
P P P P P P P P




STATE STANDARDS:P United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities P P P P P P P P P P




KEYWORDS: Blooms: Comprehension P




2. Social responsibility is
P P




a. an organization's obligation to maximize its positive effects and minimize its negative effects on stakeholders.
P P P P P P P P P P P P P P




b. principles and standards that guide behavior in the world of business.
P P P P P P P P P P




c. a business's responsibility not to pollute the environment.
P P P P P P P




d. a business's responsibility to manufacture products that function properly.
P P P P P P P P




e. charitable contributions made by a business to enhance its image.
P P P P P P P P P




ANSWER: a
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 23 P




LEARNING OBJECTIVES:LO: 1-4 - Gain insight into the extent of ethical misconduct in the workplace and the
P P P P P P P P P P P P P P P P P P P



pressures for unethical behavior. P P P




NATIONAL STANDARDS: United States - BUSPROG: Ethics
P P P P P P P P




STATE STANDARDS:P United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities
P P P P P P P P P P




KEYWORDS: Blooms: Knowledge P

, 3. The was/were enacted to restore confidence in financial reporting and business ethics after the accounting
P P P P P P P P P P P P P



P scandals of the early 2000s. P P P P



a. Defense Industry Initiative on Business Ethics and Conduct
P P P P P P P




b. Sarbanes-Oxley Act P




c. Federal Sentencing Guidelines for Organizations
P P P P




d. Foreign Corrupt Practices Act P P P




e. Dodd-Frank Wall Street Reform and Consumer Protection Act
P P P P P P P




ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: p. 13 P




LEARNING OBJECTIVES: P P P LO: 1-2 - Examine the historical foundations and evolution of business ethics.
P P P P P P P P P P P




NATIONAL STANDARDS: United States - BUSPROG: Ethics
P P P P P P P P




STATE STANDARDS: P United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities P P P P P P P P P P




KEYWORDS: Blooms: Knowledge P




4. The term business ethics is best described by the following statement:
P P P P P P P P P P




a. It is the study and philosophy of human conduct, with an emphasis on determining right and wrong.
P P P P P P P P P P P P P P P P




b. It is an "inquiry into the nature and grounds of morality where the term morality is taken to mean moral
P P P P P P P P P P P P P P P P P P P P



judgments, standards and rules of conduct."
P P P P P




c. It is the "study of the general nature of morals and of specific moral choices; moral philosophy; and the rules
P P P P P P P P P P P P P P P P P P P P



or standards governing the conduct of the members of a profession."
P P P P P P P P P P




d. It is an organization's obligation to maximize its positive effects and minimize its negative effects on
P P P P P P P P P P P P P P P P



stakeholders.
e. It comprises the principles, values, and standards that guide behavior in the world of business.
P P P P P P P P P P P P P P




ANSWER: e
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: p. 5 P




LEARNING OBJECTIVES:LO: 1-1 - Explore conceptualizations of business ethics from an organizational
P P P P P P P P P P P P



perspective. P




NATIONAL STANDARDS: United States - BUSPROG: Ethics
P P P P P P P P




STATE STANDARDS: P United States - NONE - DISC: Ethical Responsibilities - Ethical Responsibilities
P P P P P P P P P P




KEYWORDS: Blooms: Knowledge P