Question 1

Congress enacted the Sarbanes-Oxley Act to help reduce unethical management decisions .

Accepted Answer

A) True 
 B)False

Question 2

Under the principle of rights theory, the right with the highest value in a particular circumstance takes precedence.

Accepted Answer

A) True 
 B)False

Question 3

When Tina, the chief executive officer of Sales & Revenue Corporation, evaluates a problem, she identifies the people who will be impacted, analyzes how they will benefit or be harmed, and then selects the choice that has the overall best profile. Tina bases her decisions in

Accepted Answer

A)   utilitarianism.
B)   the principle of rights theory.
C)   religious principles.
D)   the categorical imperative.E) B) and D)
F) A) and C)

Question 4

Owen and other managers employed by Pastry Bakery are most likely to find that unethical behavior in the workplace can be deterred by

Accepted Answer

A)   taking immediate action in response to unethical conduct.
B)   imposing sanctions disproportionate to misconduct.
C)   distributing rewards without regard to ethics.
D)   ignoring small breaches of company rules.E) None of the above
F) A) and B)

Question 5

Cynthia is the chief financial officer of Digital Corporation. In that capacity, when she is unsure whether a certain business action is legal, she should act

Accepted Answer

A)   in her own best interest.
B)   honestly and responsibly.
C)   in the short-run interest of Digital.
D)   to maximize profit.E) C) and D)
F) All of the above

Question 6

Meds Inc. develops a new drug that controls severe acne. The U.S. government has not approved the drug for sale in the United States because one of its ingredients is a banned chemical. This chemical is not banned in Mexico. Whether it is ethical for Meds to sell the drug in Mexico depends on

Accepted Answer

A)   how much money the sales will make for the company.
B)   the number of potential customers.
C)   which legal standards are applied.
D)   which ethical standards are applied.E) A) and B)
F) B) and D)

Question 7

Hale, research manager for Investor Fund, Inc., adheres to utilitarian ethics, according to which an action is morally correct when it produces the greatest good for

Accepted Answer

A)   Hale.
B)   Investor Fund.
C)   the fewest people.
D)   the most people.E) B) and D)
F) None of the above

Question 8

Construction Corporation makes a side payment to a minor government official in India to process paperwork. Under the Foreign Corrupt Practices Act, this is

Accepted Answer

A)   prohibited.
B)   permitted if the purpose is to secure a favorable contract.
C)   permitted as a "grease" payment for ministerial actions.
D)   permitted if the official is not a U.S. citizen.E) B) and C)
F) B) and D)

Question 9

The availability of information on the Internet has made it easier to predict the legal and ethical implications of a decision.

Accepted Answer

A) True 
 B)False

Question 10

In ethical terms, a cost-benefit analysis is an assessment of the negative and positive effects of alternative actions on individuals.

Accepted Answer

A) True 
 B)False

Question 11

According to utilitarianism, whether an action affects a majority negatively is irrelevant.

Accepted Answer

A) True 
 B)False

Question 12

Adopting and enforcing a code of ethics does not deter unethical behavior in the workplace.

Accepted Answer

A) True 
 B)False

Question 13

Deb is a manager and wants to have an ethical workplace. She should do all of the following except

Accepted Answer

A)   show her employees that she is committed to high standards.
B)   set sales quotas for her staff that increase pressure for them to increase sales.
C)   create an ethical code of conduct .
D)   create trainings on ethical decision making for her staff.E) A) and B)
F) None of the above

Question 14

The Public Company Accounting Oversight Board is responsible for management, training, and testing of all accountants in the United States.

Accepted Answer

A) True 
 B)False

Question 15

A payment by a U.S. company to get a foreign government official to act in an official capacity to provide a business opportunity is not illegal.

Accepted Answer

A) True 
 B)False

Question 16

Judging a job applicant based on what an online search reveals about the applicant's activities outside the workplace universally is viewed as ethical.

Accepted Answer

A) True 
 B)False

Question 17

Under one theory of corporate social responsibility, corporations should promote goals that society deems worthwhile.

Accepted Answer

A) True 
 B)False

Question 18

One view of corporate social responsibility stresses that corporations have a duty just to shareholders.

Accepted Answer

A) True 
 B)False

Question 19

Lucas is a business manager for Manufacturing Co. Ethical dilemmas that Lucas is not likely to encounter include deciding

Accepted Answer

A)   how to structure company meetings.
B)   application of safety standards.
C)   compliance with environmental regulations.
D)   to handle rude interactions between employees. .E) A) and D)
F) B) and C)

Question 20

If a company strictly complies with existing laws, the firm will

Accepted Answer

A)   fulfill all business ethics obligations.
B)   fulfill no business ethics obligations.
C)   fulfill some business ethics obligations.
D)   not need to fulfill any business ethics obligations.E) A) and D)
F) B) and C)

Exam 2: Ethics in Business

The availability of information on the Internet has made it easier to predict the legal and ethical implications of a decision.

Correct AnswerverifiedShow Answer

One view of corporate social responsibility stresses that corporations have a duty just to shareholders.

Correct AnswerverifiedShow Answer

A payment by a U.S. company to get a foreign government official to act in an official capacity to provide a business opportunity is not illegal.

Correct AnswerverifiedShow Answer

Construction Corporation makes a side payment to a minor government official in India to process paperwork. Under the Foreign Corrupt Practices Act, this is

Correct AnswerverifiedShow Answer

Deb is a manager and wants to have an ethical workplace. She should do all of the following except

Correct AnswerverifiedShow Answer

Adopting and enforcing a code of ethics does not deter unethical behavior in the workplace.

Correct AnswerverifiedShow Answer

Lucas is a business manager for Manufacturing Co. Ethical dilemmas that Lucas is not likely to encounter include deciding

Correct AnswerverifiedShow Answer

When Tina, the chief executive officer of Sales & Revenue Corporation, evaluates a problem, she identifies the people who will be impacted, analyzes how they will benefit or be harmed, and then selects the choice that has the overall best profile. Tina bases her decisions in

Correct AnswerverifiedShow Answer

According to utilitarianism, whether an action affects a majority negatively is irrelevant.

Correct AnswerverifiedShow Answer

Cynthia is the chief financial officer of Digital Corporation. In that capacity, when she is unsure whether a certain business action is legal, she should act

Correct AnswerverifiedShow Answer

Under the principle of rights theory, the right with the highest value in a particular circumstance takes precedence.

Correct AnswerverifiedShow Answer

If a company strictly complies with existing laws, the firm will

Correct AnswerverifiedShow Answer

Meds Inc. develops a new drug that controls severe acne. The U.S. government has not approved the drug for sale in the United States because one of its ingredients is a banned chemical. This chemical is not banned in Mexico. Whether it is ethical for Meds to sell the drug in Mexico depends on

Correct AnswerverifiedShow Answer

Owen and other managers employed by Pastry Bakery are most likely to find that unethical behavior in the workplace can be deterred by

Correct AnswerverifiedShow Answer

Under one theory of corporate social responsibility, corporations should promote goals that society deems worthwhile.

Correct AnswerverifiedShow Answer

Judging a job applicant based on what an online search reveals about the applicant's activities outside the workplace universally is viewed as ethical.

Correct AnswerverifiedShow Answer

Congress enacted the Sarbanes-Oxley Act to help reduce unethical management decisions .

Correct AnswerverifiedShow Answer

The Public Company Accounting Oversight Board is responsible for management, training, and testing of all accountants in the United States.

Correct AnswerverifiedShow Answer

In ethical terms, a cost-benefit analysis is an assessment of the negative and positive effects of alternative actions on individuals.

Correct AnswerverifiedShow Answer

Hale, research manager for Investor Fund, Inc., adheres to utilitarian ethics, according to which an action is morally correct when it produces the greatest good for

Correct AnswerverifiedShow Answer

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