BUSG 210 - Practice Midterm II

True or false? Corporate shareholders, directors, and the company's officers may all benefit from limited liability.

true

True or false? During the Industrial Revolution and the postindustrial era, the goal of businesses was to earn as high a profit as possible for shareholders, with little concern for outside stakeholders.

true

True or false? Employees consider whether a company is ethical when selecting potential employers.

true

True or false? Quan, in the context of a moral dilemma, means a practical consideration of the relative rightness of options.

true

True or false? Rachel Carson's 1962 book, Silent Spring, first brought attention to chemical poisoning of waterways by corporations.

true

True or false? Religion's role in business is less certain today; we are perhaps more likely to see a universal, secular code of ethics develop than to see religion serve as common ground for different cultures to come together.

true

True or false? The Forbes list of ethical companies is based on the publication's own research rather than a governmental standard.

true

True or false? The Shlensky v. Wrigley case represented a shift from the idea that corporations should pursue only the maximization of shareholder value.

true

True or false? The concept of limited liability means the owners of corporations are protected by laws stating that, in most circumstances, their losses in case of business failure cannot exceed the amount they paid for their shares of ownership.

true

Which of the following describes the difference between enculturation and acculturation?

Enculturation refers to the process by which humans learn the rules, customs, skills, and values to participate in a society, whereas acculturation refers specifically to the cultural transmission and socialization process that stems from cultural exchange.

Which of the following are the duties of the board of directors? (Select all that apply.)

Evaluating the salary and benefits of senior management

Which seven-step guidelines are designed to help organizations with compliance and reporting?

Federal Sentencing Guidelines

Which of the following are steps in the MITRE stakeholder process? (Select all that apply.)

Gather and analyze appropriate data.

How did Aristotle reconcile his distrust of business?

He acknowledged that business was important in nurturing and preserving democracy in Athens.

Which of the following describes the efficacy of legislation like the California Transparency in Supply Chains Act?

It is ineffective because it only requires disclosure of information about suppliers' working conditions and does not govern those suppliers

Why is ethical relativism a good concept to adopt? (Select all that apply.)

One does not want an inconsistent outcome.

Which of the following is the lesson learned from the Edsel story?

Stakeholder perceptions have a large impact on success.

Which answer explains an aspect of teleology?

The goal of human beings is eudaimonia.

Which is the best example of a recent company crisis caused by poor leadership?

Uber

Which of the following statements most accurately describes shareholder primacy?

a company's duty to maximize profits for stockholders

Which of the following descriptions most accurately describes states' rights?

a view that states should have more governing authority than does the federal government

Which of the following best describes managerial ethics?

a way of relating to self, employees, and the organization that balances individual and collective responsibility

Which of the following is a resource made available to employees, in addition to salary?

amenities

An ethical financial advisor must ________.

be truthful about all fees

In 2017, Lee Jae-yong, heir to Samsung electronics, was part of a widespread corruption scandal that brought down the president of South Korea. What were some of the crimes Jae-yong was convicted of?

bribery and embezzlement

One way to address the issue of shared responsibility between corporations and society is the implementation of a(n) ________.

cap and trade system

Which employee typically reports directly to a board of directors?

chief executive officer

Which company attributes increase in value as stakeholders view that company in a positive light?

company name or logo

Which are some types of stakeholder relationships that a local chamber of commerce would have? (Select all that apply.)

minority- and women-owned small business owners

The basic unit of utilitarianism is a util, which acts as a ________.

monetary unit

An action is ethical if it is ________. (Select all that apply.)

provides more for others than one's self

Corporate law enables businesses to take advantage of a legal structure that ________.

separates liability from ownership and control

Which commercial transaction in the New World exemplifies the complexity that results when different cultures, experiences, and ethical codes come into contact?

the "purchase" of Manhattan

How is the concept of corporate personhood defined?

the doctrine that a corporation has some of the same legal rights and responsibilities enjoyed by natural persons

Besides culture, what is another major influence in the development of business ethics? Select the best answer.

the passage of time

The advantage of justice theory over other ethical systems is its ________.

emphasis on method as opposed to content

Which of the following are stakeholders?

entities and people invested and influential in the success of an organization

True or false? All stakeholders must be treated the same.

false

True or false? An application of Rawls's justice theory results in business ethics being the duty of a corporate compliance or ethics department.

false

True or false? As a function of culture, ethics is static in each new era.

false

True or false? Even in business, ethics is not about human morality but rather about human consumption.

false

True or false? Goodwill only applies to shareholders, and it is the amount of money a shareholder could make after selling a holding in a company.

false

True or false? In Citizens United v. Federal Election Commission, the Supreme Court ruled 5 to 4 in favor of public corporations using public funds for political advertising.

false

True or false? Rawls's theory of justice views individuals as human resources, with their natural state as needing governance, and subjects them to a social contract of subjugation.

false

True or false? The Enlightenment was a period during which religion and ethics were separated successfully.

false

True or false? The environment is not considered a stakeholder.

false

Which of the following is not a stakeholder in a corporation?

goodwill

Which of the following best describes the role of ethics in a business environment?

guiding the conduct by which companies and their agents abide by the law

Which elements constitute corporate culture?

how the CEO interacts with his or her employees and managers

An analysis of perceived priority of shareholder impact should include which of the following?

interests and goals of shareholders