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UNIT 1 — MILESTONE 1
22/23
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22 questions were answered correctly.
1 question was answered incorrectly.
1
●
Pharmaceutical Company Z received government approval for a
medicine that lowers high blood pressure. Over time, however, the
company realizes that the drug causes tremors in a small number of
people who use it. In deciding how to proceed, the company
identifies a range of stakeholders, including corporate shareholders,
consumers, physicians, the government, and society as a whole,
and comes up with several possible courses of action.
According to the Josephson's core values model for ethical
decision-making, what should Company Z do next?
Evaluate which course of action will
provide the greatest benefit to the
corporate shareholders, to whom
●
the company has the greatest
obligation.
Try to determine which core values
● are most important to the company.
Try to determine which course of
action will best protect the company
●
in the short-term.
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Evaluate the impact of each
possible course of action on each of
the various stakeholders.
RATIONALE
After identifying stakeholders, the next steps are to identify
possible decisions and consider their impact on stakeholders.
CONCEPT
→ An Ethical Decision Model
Report an issue with this question
2
●
Which level of state court would most likely decide a case related to
running a red traffic light?
Intermediate appellate court
●
General jurisdiction court
●
Limited jurisdiction court
Supreme court
●
RATIONALE
A limited jurisdiction court (such as a traffic court) would be likely to
hear a case involving running a red light.
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CONCEPT
→ State Courts in the U.S.
Report an issue with this question
3
●
As part of its strategic planning, a fast food corporation considers
the societal effects of using poultry treated with high levels of
antibiotics in its supply chain. The Board of Directors ultimately
instructs the officers to continue using the corporation's current
poultry suppliers since the levels of antibiotics they use, while high,
comply with the law and are very cheap.
According to stakeholder theory, did the corporation fulfill its duty?
No, because the officers of the
corporation are failing to fulfill their
● fiduciary duty to the Board and the
corporate shareholders.
No, because the company is
prioritizing profits over other social
responsibilities.
Yes, because the corporation has a
● duty to save money.
Yes, because the corporation is not
● violating any laws.
RATIONALE
Stakeholder theory holds that customers are stakeholders and
looks to the overall good a corporation does in a community.
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231Unit
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1M
UNIT 1 — MILESTONE 1
22/23
22/23 that's 96% RETAKE
22 questions were answered correctly.
1 question was answered incorrectly.
1
●
Pharmaceutical Company Z received government approval for a
medicine that lowers high blood pressure. Over time, however, the
company realizes that the drug causes tremors in a small number of
people who use it. In deciding how to proceed, the company
identifies a range of stakeholders, including corporate shareholders,
consumers, physicians, the government, and society as a whole,
and comes up with several possible courses of action.
According to the Josephson's core values model for ethical
decision-making, what should Company Z do next?
Evaluate which course of action will
provide the greatest benefit to the
corporate shareholders, to whom
●
the company has the greatest
obligation.
Try to determine which core values
● are most important to the company.
Try to determine which course of
action will best protect the company
●
in the short-term.
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4:03:13
Solution.pdf2026/10/23Page
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2 ofLaw
232Unit
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1M
Evaluate the impact of each
possible course of action on each of
the various stakeholders.
RATIONALE
After identifying stakeholders, the next steps are to identify
possible decisions and consider their impact on stakeholders.
CONCEPT
→ An Ethical Decision Model
Report an issue with this question
2
●
Which level of state court would most likely decide a case related to
running a red traffic light?
Intermediate appellate court
●
General jurisdiction court
●
Limited jurisdiction court
Supreme court
●
RATIONALE
A limited jurisdiction court (such as a traffic court) would be likely to
hear a case involving running a red light.
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233Unit
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1M
CONCEPT
→ State Courts in the U.S.
Report an issue with this question
3
●
As part of its strategic planning, a fast food corporation considers
the societal effects of using poultry treated with high levels of
antibiotics in its supply chain. The Board of Directors ultimately
instructs the officers to continue using the corporation's current
poultry suppliers since the levels of antibiotics they use, while high,
comply with the law and are very cheap.
According to stakeholder theory, did the corporation fulfill its duty?
No, because the officers of the
corporation are failing to fulfill their
● fiduciary duty to the Board and the
corporate shareholders.
No, because the company is
prioritizing profits over other social
responsibilities.
Yes, because the corporation has a
● duty to save money.
Yes, because the corporation is not
● violating any laws.
RATIONALE
Stakeholder theory holds that customers are stakeholders and
looks to the overall good a corporation does in a community.
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