,Chapter 1—The Importance of Business Ethics
MULTIPLE CHOICE
1. Principles are
a. laws and regulations that guide behavior in the world of business.
b. mores, values, and customs that guide behavior in general.
c. specific and pervasive boundaries for behavior that are universal and absolute.
d. the obligations businesses assume to maximize their positive impact and minimize their
negative impact on stakeholders.
e. the mores, values, and customs that parents teach their children.
ANS: C PTS: 1 2. Social responsibility is
a. an organization's obligation to maximize its positive effects and minimize its negative
effects on stakeholders.
b. principles and standards that guide behavior in the world of business.
c. a business's responsibility not to pollute the environment.
d. a business's responsibility to manufacture products that function properly without harming
consumers.
e. charitable contributions made by a business to enhance its image.
ANS: A PTS: 1
3. The ____ was(were) enacted to restore confidence in financial reporting and business ethics after the
accounting scandals of the early 2000s.
a. Defense Industry Initiative on Business Ethics and Conduct
b. Sarbanes-Oxley Act
c. Federal Sentencing Guidelines for Organizations
d. Foreign Corrupt Practices Act
e. Ferrell-Fraedrich Act
ANS: B PTS: 1
4. The term business ethics is best described by the following statement:
a. It is the study and philosophy of human conduct, with an emphasis on determining right
and wrong.
b. It is an "inquiry into the nature and grounds of morality where the term morality is taken
to mean moral judgments, standards and rules of conduct."
c. It is the "study of the general nature of morals and of specific moral choices; moral
philosophy; and the rules or standards governing the conduct of the members of a
profession."
d. It is an organization's obligation to maximize its positive effects and minimize its negative
effects on stakeholders.
e. It comprises the principles and standards that guide behavior in the world of business.
ANS: E PTS: 1 5. Which of the following is not one of the
rights spelled out by John F. Kennedy in his "Consumers' Bill of Rights"?
a. The right to choose
b. The right to safety
c. The right to be informed
d. The right to be ethical
e. The right to be heard
1
© 2011 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from
the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
, ANS: D PTS: 1
6. Business ethics was acknowledged as a field of study by business academics and practitioners in the
a. 1990s.
b. 1980s.
c. 1970s.
d. 1960s.
e. years prior to 1960.
ANS: B PTS: 1
7. Business ethics, as a field, has passed through which of the following states?
a. A field of study to theological discussion to recognition of social issues
b. Recognition of social issues to a field of study to theological discussion
c. A field of study to recognition of social issues to theological discussion
d. Recognition of social issues to theological discussion to a field of study
e. Theological discussion to recognition of social issues to a field of study
ANS: E PTS: 1
8. The rise of consumerism occurred during the
a. 1940s.
b. 1950s.
c. 1960s.
d. 1970s.
e. 1980s.
ANS: C PTS: 1
9. Before the 1960s, ethical issues related to business were often discussed
a. theologically and philosophically.
b. economically.
c. politically.
d. sociologically.
e. psychologically.
ANS: A PTS: 1
10. Which of the following was developed in the 1980s to guide corporate support for ethical conduct by
establishing a method for discussing best practices?
a. Federal Sentencing Guidelines for Organizations
b. Defense Industry Initiative on Business Ethics and Conduct
c. Corporate codes of conduct
d. United States Sentencing Commission
e. MERCOSUR
ANS: B PTS: 1
11. The ____ focus(es) on firms taking action to prevent and detect business misconduct in cooperation with
government regulation.
a. United States Sentencing Commission
b. Defense Industry Initiative on Business Ethics and Conduct
c. World Trade Orgainzation
d. Caux Round Table
2
© 2011 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from
the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
, e. Federal Sentencing Guidelines for Organizations
ANS: E PTS: 1
12. The study of business ethics is important to better understand all of the following except
a. that a person's own moral philosophies and decision-making experience may not be
sufficient to guide him or her in the business world.
b. how and why people make ethical or unethical decisions.
c. how to cope with conflicts between a person's own values and those of the organization in
which he or she works.
d. that business ethics is merely an extension of an individual's own personal ethics.
e. how to identify ethical issues arising in the business world.
ANS: D PTS: 1
13. Individuals' personal ethics play a major role in the evaluation of business decisions only when their
preferences or values
a. differ from those of their employer.
b. influence their performance in the workplace.
c. are unethical.
d. are ethical.
e. result in negative publicity for their employer.
ANS: B PTS: 1
14. The ability of a business organization to achieve its business goals is directly affected by whether its
behavior is judged to be right or wrong by
a. society.
b. its union members.
c. its employees.
d. Congress.
e. its competitors.
ANS: A PTS: 1
15. Having acceptable personal ethics may not be sufficient to handle complex business ethical issues when an
individual has
a. family concerns.
b. an unethical boss.
c. limited business experience.
d. financial concerns.
e. a marketing background.
ANS: C PTS: 1
16. The study of business ethics in North America has evolved through ____ distinct stages.
a. five
b. four
c. three
d. ten
e. nine
ANS: A PTS: 1
17. Which of the following is not generally considered a business ethics issue?
a. Insider trading
3
© 2011 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from
the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
MULTIPLE CHOICE
1. Principles are
a. laws and regulations that guide behavior in the world of business.
b. mores, values, and customs that guide behavior in general.
c. specific and pervasive boundaries for behavior that are universal and absolute.
d. the obligations businesses assume to maximize their positive impact and minimize their
negative impact on stakeholders.
e. the mores, values, and customs that parents teach their children.
ANS: C PTS: 1 2. Social responsibility is
a. an organization's obligation to maximize its positive effects and minimize its negative
effects on stakeholders.
b. principles and standards that guide behavior in the world of business.
c. a business's responsibility not to pollute the environment.
d. a business's responsibility to manufacture products that function properly without harming
consumers.
e. charitable contributions made by a business to enhance its image.
ANS: A PTS: 1
3. The ____ was(were) enacted to restore confidence in financial reporting and business ethics after the
accounting scandals of the early 2000s.
a. Defense Industry Initiative on Business Ethics and Conduct
b. Sarbanes-Oxley Act
c. Federal Sentencing Guidelines for Organizations
d. Foreign Corrupt Practices Act
e. Ferrell-Fraedrich Act
ANS: B PTS: 1
4. The term business ethics is best described by the following statement:
a. It is the study and philosophy of human conduct, with an emphasis on determining right
and wrong.
b. It is an "inquiry into the nature and grounds of morality where the term morality is taken
to mean moral judgments, standards and rules of conduct."
c. It is the "study of the general nature of morals and of specific moral choices; moral
philosophy; and the rules or standards governing the conduct of the members of a
profession."
d. It is an organization's obligation to maximize its positive effects and minimize its negative
effects on stakeholders.
e. It comprises the principles and standards that guide behavior in the world of business.
ANS: E PTS: 1 5. Which of the following is not one of the
rights spelled out by John F. Kennedy in his "Consumers' Bill of Rights"?
a. The right to choose
b. The right to safety
c. The right to be informed
d. The right to be ethical
e. The right to be heard
1
© 2011 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from
the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
, ANS: D PTS: 1
6. Business ethics was acknowledged as a field of study by business academics and practitioners in the
a. 1990s.
b. 1980s.
c. 1970s.
d. 1960s.
e. years prior to 1960.
ANS: B PTS: 1
7. Business ethics, as a field, has passed through which of the following states?
a. A field of study to theological discussion to recognition of social issues
b. Recognition of social issues to a field of study to theological discussion
c. A field of study to recognition of social issues to theological discussion
d. Recognition of social issues to theological discussion to a field of study
e. Theological discussion to recognition of social issues to a field of study
ANS: E PTS: 1
8. The rise of consumerism occurred during the
a. 1940s.
b. 1950s.
c. 1960s.
d. 1970s.
e. 1980s.
ANS: C PTS: 1
9. Before the 1960s, ethical issues related to business were often discussed
a. theologically and philosophically.
b. economically.
c. politically.
d. sociologically.
e. psychologically.
ANS: A PTS: 1
10. Which of the following was developed in the 1980s to guide corporate support for ethical conduct by
establishing a method for discussing best practices?
a. Federal Sentencing Guidelines for Organizations
b. Defense Industry Initiative on Business Ethics and Conduct
c. Corporate codes of conduct
d. United States Sentencing Commission
e. MERCOSUR
ANS: B PTS: 1
11. The ____ focus(es) on firms taking action to prevent and detect business misconduct in cooperation with
government regulation.
a. United States Sentencing Commission
b. Defense Industry Initiative on Business Ethics and Conduct
c. World Trade Orgainzation
d. Caux Round Table
2
© 2011 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from
the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
, e. Federal Sentencing Guidelines for Organizations
ANS: E PTS: 1
12. The study of business ethics is important to better understand all of the following except
a. that a person's own moral philosophies and decision-making experience may not be
sufficient to guide him or her in the business world.
b. how and why people make ethical or unethical decisions.
c. how to cope with conflicts between a person's own values and those of the organization in
which he or she works.
d. that business ethics is merely an extension of an individual's own personal ethics.
e. how to identify ethical issues arising in the business world.
ANS: D PTS: 1
13. Individuals' personal ethics play a major role in the evaluation of business decisions only when their
preferences or values
a. differ from those of their employer.
b. influence their performance in the workplace.
c. are unethical.
d. are ethical.
e. result in negative publicity for their employer.
ANS: B PTS: 1
14. The ability of a business organization to achieve its business goals is directly affected by whether its
behavior is judged to be right or wrong by
a. society.
b. its union members.
c. its employees.
d. Congress.
e. its competitors.
ANS: A PTS: 1
15. Having acceptable personal ethics may not be sufficient to handle complex business ethical issues when an
individual has
a. family concerns.
b. an unethical boss.
c. limited business experience.
d. financial concerns.
e. a marketing background.
ANS: C PTS: 1
16. The study of business ethics in North America has evolved through ____ distinct stages.
a. five
b. four
c. three
d. ten
e. nine
ANS: A PTS: 1
17. Which of the following is not generally considered a business ethics issue?
a. Insider trading
3
© 2011 Cengage Learning. All Rights Reserved. This edition is intended for use outside of the U.S. only, with content that may be different from
the U.S. Edition. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.
