Business Law Chapter 42 Quiz

Which of the following is NOT a recognized theory of the social responsibility of​ business? A.societal harmony B.moral minimum C.corporate citizenship D.stakeholder interest E.maximize profits

A (societal harmony)

Which of the following is an INCORRECT statement regarding ethical​ fundamentalism? A.Taken to an​ extreme, the result of ethical fundamentalism could be considered unethical under most other moral theories. B.Under ethical​ fundamentalism, the people must choose the action or follow the rule that provides the greatest good to society. C.Critics argue that ethical fundamentalism does not permit people to determine wrong for themselves. D.A literal interpretation of the maxim​ "an eye for an​ eye" would permit retaliation. E.Critics argue that ethical fundamentalism does not permit people to determine right for themselves.

B (Under ethical​ fundamentalism, the people must choose the action or follow the rule that provides the greatest good to society.)

Under​ _____, fairness is considered the essence of justice.

Rawls's social justice theory

Ethics and the law are​ _____.

intertwined

What is the traditional view of the social responsibility of​ business?

maximize profits

Some proponents of corporate social responsibility argue that a​ corporation's duty is to make a profit while avoiding causing harm to others. This is the​ _____ theory of social responsibility.

moral minimum

According to​ _____, people owe moral duties that are based on universal rules.

Kantian ethics

​_____ is also called duty ethics.

Kantian ethics

Which of the following is an INCORRECT statement regarding​ Rawls's social justice​ theory? A.Under this​ theory, the principles of justice should be chosen by persons who do not yet know their station in society. B.Under this​ theory, free enterprise is considered the essence of justice. C.One criticism of this theory is that many persons in society would choose not to maximize the benefit to the least advantaged persons in society. D.Under this​ theory, a​ "veil of​ ignorance" would permit the fairest possible principles to be selected. E.One criticism of this theory is that establishing the blind​ "original position" for choosing moral principles is impossible in the real world.

B (Under this​ theory, free enterprise is considered the essence of justice.)

Which of the following is an INCORRECT statement regarding Kantian​ ethics? A. Kant's philosophy is based on the premise that people can use reasoning to reach ethical decisions. B.Kant believed that people owe moral duties that are based on conditional rules. C.​Kant's ethical theory would have people behave according to the categorical​ imperative, "Do unto others as you would have them do unto​ you." D.According to Kantian​ ethics, keeping a promise to abide by a contract is a moral duty even though that contract turns out to be detrimental to the obligated party. E.A criticism of Kantian ethics is that it is difficult to reach consensus on what the universal rules should be.

C (Kant believed that people owe moral duties that are based on conditional rules.)

Which of the following is an INCORRECT statement regarding​ Rawls's social justice​ theory? A.Under this​ theory, a​ "veil of​ ignorance" would permit the fairest possible principles to be selected. B.Under this​ theory, the principles of justice should be chosen by persons who do not yet know their station in society. C.Under this​ theory, free enterprise is considered the essence of justice. D.One criticism of this theory is that many persons in society would choose not to maximize the benefit to the least advantaged persons in society. E.One criticism of this theory is that establishing the blind​ "original position" for choosing moral principles is impossible in the real world.

C (Under this​ theory, free enterprise is considered the essence of justice.)

Which of the following is an INCORRECT statement regarding law and​ ethics? A.Not all ethical standards have been enacted as law. B.Ethics demands more than the minimum degree of conduct expected by persons and businesses in society. C.Most laws are based on ethical standards. D.Businesses organized in the United States are not subject to the laws of other countries in which they operate. E.The law establishes a minimum degree of conduct expected by persons and businesses in society.

D (Businesses organized in the United States are not subject to the laws of other countries in which they operate.)

Which of the following is an INCORRECT statement regarding​ utilitarianism? A. Utilitarianism has been criticized because it is difficult to estimate the​ "good" that will result from different actions. B. Utilitarianism has been criticized because it treats morality as if it were an impersonal mathematical calculation. C.Utilitarianism has been criticized because it is difficult to apply in an imperfect world. D.Utilitarianism dictates that people must choose the action or follow the rule that provides the greatest good to society. E.Utilitarianism dictates that people must choose the action or follow the rule that provides the greatest good to society. This means the greatest good for the greatest number of people.

E (Utilitarianism dictates that people must choose the action or follow the rule that provides the greatest good to society. This means the greatest good for the greatest number of people.)

____ holds that individuals must decide what is ethical based on their own feelings about what is right and wrong.

Ethical relativism

​_____ holds that individuals must decide what is ethical based on their own feelings about what is right and wrong.

Ethical relativism

Section 406 of the​ _____ Act requires a public company to disclose whether it has adopted a code of ethics for senior financial​ officers, including its principal financial officer and principal accounting officer.

Sarbanes-Oxley

A company is trying to determine whether it should close an unprofitable plant located in a small community.​ _____ would require that the benefits to shareholders from closing the plant be compared with the benefits to​ employees, their​ families, and others in the community from keeping it open.

Utilitarianism

If an action would increase the good of 25 people by one unit each and an alternative action would increase the good of one person by 26​ units, then, according to​ _____, the latter action should be taken.

Utilitarianism

​_____ dictates that people must choose the action or follow the rule that provides the greatest good to society.

Utilitarianism

​_____ is a moral theory with origins in the works of Jeremy Bentham and John Stuart Mill.

Utilitarianism

The universal rules of Kantian ethics are based on which of the following two important​ principles

consistency and reversibility

The​ _____ theory of social responsibility argues that business has a responsibility to improve society and help solve social problems.

corporate citizenship

If a person looks to Karl Marx for ethical rules or​ commands, this is an example of​ _____.

ethicalfundamentalism

If a person looks to the Bible or Koran for ethical rules or​ commands, this is an example of​ _____.

ethicalfundamentalism

Under​ _____, a person looks to an outside source for ethical rules or commands.

ethicalfundamentalism