Question 1

Any decision by the management of Fast-Food Franchise Corporation may significantly affect its

Accepted Answer

A)   operators only.
B)   operators, owners, suppliers, the community, or society as a whole.
C)   owners only.
D)   suppliers, the community, or society as a whole only.E) None of the above
F) All of the above

Question 2

Ethical codes of conduct can set the ethical tone of a firm.

Accepted Answer

A) True 
 B)False

Question 3

A business firm's profits may suffer if the firm is not a "good corporate citizen."

Accepted Answer

A) True 
 B)False

Question 4

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 5

Business ethics is consistent only with short-run profit maximization.

Accepted Answer

A) True 
 B)False

Question 6

An action may be legal and ethical.

Accepted Answer

A) True 
 B)False

Question 7

Focusing on a firm's short-term profits without considering the company's long-term needs may be acting unethically.

Accepted Answer

A) True 
 B)False

Question 8

Chuckie, president of DrinkUp Fresh Beverages, Inc., does not apply utilitarianism to business ethical issues. One problem with utilitarianism is that it

Accepted Answer

A)   gives business profits priority over production costs.
B)   ignores the practical costs of a given set of circumstances.
C)   requires complex cost-benefit analyses of simple situations.
D)   tends to justify human costs that many find unacceptable.E) C) and D)
F) B) and C)

Question 9

Restricting the bonuses that are paid to executives is unethical.

Accepted Answer

A) True 
 B)False

Question 10

Ethical reasoning is the process through which an individual rationalizes whatever action he or she chooses to take.

Accepted Answer

A) True 
 B)False

Question 11

Bribery of foreign government officials is both an ethical and a legal issue.

Accepted Answer

A) True 
 B)False

Question 12

Bilt-Well Construction Corporation makes a side payment to a government official in Nigeria to obtain a contract. In the United States, this is

Accepted Answer

A)   illegal and unethical.
B)   illegal but not unethical.
C)   unethical but not illegal.
D)   legal and ethical.E) B) and C)
F) A) and D)

Question 13

One guideline to evaluating the ethics of a particular action is to "let your conscience be your guide."

Accepted Answer

A) True 
 B)False

Question 14

Spencer Hydraulics Corporation's ethics committee is asked a business ethics question-should the firm bid low to obtain a contract that it knows it can fulfill only at a higher price A practical method to investigate and solve this question involves all of the following steps except

Accepted Answer

A)   absolution.
B)   decision.
C)   inquiry.
D)   justification.E) A) and D)
F) A) and B)

Question 15

Flexo Trucking Company transports hazardous waste. Garn is a Flexo driver, whom the company knows drives longer hours than federal regulations permit. One night, Garn exceeds the limit and has an accident. Spilled chemicals contaminate Hill City's water source, forcing the residents to move away. Flexo acted unethically because

Accepted Answer

A)   Flexo showed reckless disregard for Hill City's residents and others.
B)   Garn exceeded the federal time limit.
C)   harm was caused by an unfortunate accident.
D)   Hill City should have better protected its water source.E) A) and B)
F) A) and C)

Question 16

Ethics is the branch of philosophy that focuses on what constitutes right and wrong behavior.

Accepted Answer

A) True 
 B)False

Question 17

Housemate, Inc., makes and sells a variety of household products. With a fair amount of certainty, Housemate's decision makers can predict whether a given business action would be legal in

Accepted Answer

A)   all situations.
B)   many situations.
C)   no situations.
D)   practically no situations.E) A) and B)
F) A) and C)

Question 18

Made4U Goods, Inc., asks its employees, many of whom are members of the National Machinists Union, to apply the utilitarian theory of ethics. This theory does not require

Accepted Answer

A)   a choice among alternatives to produce the maximum societal utility.
B)   a determination of whom an action will affect.
C)   an assessment of the effects of alternatives on those affected.
D)   the acquiring of the means of production by workers.E) B) and C)
F) A) and D)

Question 19

Ergonomic Corporation convenes its employees for its managers to announce (1)  a new company-wide ethical code of conduct, (2)  an ad campaign to publicize the new code, and (3)  the discharge of employees who do not adhere to the code. One of the most effective ways to set a tone of ethical behavior within a business organization is

Accepted Answer

A)   to create an ethical code of conduct.
B)   to discharge employees who do not create the appearance of impropriety.
C)   to post a marketing campaign online touting the firm's ethical tone.
D)   for management to direct employees to "do as we say, not as we do."E) None of the above
F) B) and C)

Question 20

Some companies have set up confidential systems for employees to "raise red flags" about suspected unethical practices.

Accepted Answer

A) True 
 B)False

Exam 5: Ethics and Business Decision Making

Made4U Goods, Inc., asks its employees, many of whom are members of the National Machinists Union, to apply the utilitarian theory of ethics. This theory does not require

Correct Answer
verified

Bribery of foreign government officials is both an ethical and a legal issue.

Correct Answer
verified

Housemate, Inc., makes and sells a variety of household products. With a fair amount of certainty, Housemate's decision makers can predict whether a given business action would be legal in

Correct Answer
verified

Spencer Hydraulics Corporation's ethics committee is asked a business ethics question-should the firm bid low to obtain a contract that it knows it can fulfill only at a higher price A practical method to investigate and solve this question involves all of the following steps except

Correct Answer
verified

Correct Answer
verified

Restricting the bonuses that are paid to executives is unethical.

Correct Answer
verified

A business firm's profits may suffer if the firm is not a "good corporate citizen."

Correct Answer
verified

Bilt-Well Construction Corporation makes a side payment to a government official in Nigeria to obtain a contract. In the United States, this is

Correct Answer
verified

Correct Answer
verified

Focusing on a firm's short-term profits without considering the company's long-term needs may be acting unethically.

Correct Answer
verified

Some companies have set up confidential systems for employees to "raise red flags" about suspected unethical practices.

Correct Answer
verified

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

Correct Answer
verified

Ethical codes of conduct can set the ethical tone of a firm.

Correct Answer
verified

Ethics is the branch of philosophy that focuses on what constitutes right and wrong behavior.

Correct Answer
verified

Chuckie, president of DrinkUp Fresh Beverages, Inc., does not apply utilitarianism to business ethical issues. One problem with utilitarianism is that it

Correct Answer
verified

One guideline to evaluating the ethics of a particular action is to "let your conscience be your guide."

Correct Answer
verified

Business ethics is consistent only with short-run profit maximization.

Correct Answer
verified

Any decision by the management of Fast-Food Franchise Corporation may significantly affect its

Correct Answer
verified

Ethical reasoning is the process through which an individual rationalizes whatever action he or she chooses to take.

Correct Answer
verified

An action may be legal and ethical.

Correct Answer
verified

Exam 5: Ethics and Business Decision Making

Made4U Goods, Inc., asks its employees, many of whom are members of the National Machinists Union, to apply the utilitarian theory of ethics. This theory does not require

Correct AnswerverifiedShow Answer

Bribery of foreign government officials is both an ethical and a legal issue.

Correct AnswerverifiedShow Answer

Housemate, Inc., makes and sells a variety of household products. With a fair amount of certainty, Housemate's decision makers can predict whether a given business action would be legal in

Correct AnswerverifiedShow Answer

Spencer Hydraulics Corporation's ethics committee is asked a business ethics question-should the firm bid low to obtain a contract that it knows it can fulfill only at a higher price A practical method to investigate and solve this question involves all of the following steps except

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Restricting the bonuses that are paid to executives is unethical.

Correct AnswerverifiedShow Answer

A business firm's profits may suffer if the firm is not a "good corporate citizen."

Correct AnswerverifiedShow Answer

Bilt-Well Construction Corporation makes a side payment to a government official in Nigeria to obtain a contract. In the United States, this is

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Focusing on a firm's short-term profits without considering the company's long-term needs may be acting unethically.

Correct AnswerverifiedShow Answer

Some companies have set up confidential systems for employees to "raise red flags" about suspected unethical practices.

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

Ethical codes of conduct can set the ethical tone of a firm.

Correct AnswerverifiedShow Answer

Ethics is the branch of philosophy that focuses on what constitutes right and wrong behavior.

Correct AnswerverifiedShow Answer

Chuckie, president of DrinkUp Fresh Beverages, Inc., does not apply utilitarianism to business ethical issues. One problem with utilitarianism is that it

Correct AnswerverifiedShow Answer

One guideline to evaluating the ethics of a particular action is to "let your conscience be your guide."

Correct AnswerverifiedShow Answer

Business ethics is consistent only with short-run profit maximization.

Correct AnswerverifiedShow Answer

Any decision by the management of Fast-Food Franchise Corporation may significantly affect its

Correct AnswerverifiedShow Answer

Ethical reasoning is the process through which an individual rationalizes whatever action he or she chooses to take.

Correct AnswerverifiedShow Answer

An action may be legal and ethical.

Correct AnswerverifiedShow Answer

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