Ethics Ex1 Multiple Choice

A business that is willing to sacrifice some income in order to avoid harm to others is applying which theory of the social responsibility of business?

a. Moral minimum.

Which of the following actions is consistent with the maximizing profits theory of the social responsibility of business?

a. Raising wages because it is expected to lower employee turnover and long-term overall compensation expenses. c. Raising wages to avoid a strike that would cost more than the increased costs of the wage increase.

A procedure which can be used to assess the moral health of a corporation is the:

a. Social audit.

The moral theory of ethical fundamentalism can best be characterized by

a. The consultation of an outside source, such as a book or person, for ethical guidance.

The theory of business social responsibility that holds that the obligation of a business is to earn a profit while not harming others but if it does cause harm, it must compensate the victims for the harms caused, is:

a. The moral minimum theory.

Which of the following is correct with regard to the relationship between law and ethics?

d. Although much of law is based on ethical standards, not all ethical standards have been enacted as law.

Someone who makes moral and ethical decisions based on his own beliefs is applying which moral theory?

a. Ethical relativism.

Which two philosophers proposed a social contract theory of morality?

a. John Locke and Jean-Jacques Rousseau.

Which social responsibility theory has been advocated by Nobel Prize-winning economist Milton Friedman?

a. Maximizing profits.

Which ethical theory holds that individuals must decide what is ethical based on their own feelings as to what is right or wrong?

b. Ethical relativism.

A business that is concerned solely with the financial implications of alternate courses of action is applying which theory of the social responsibility of business?

b. Maximizing profits.

Rawls's social justice theory includes which of the following?

b. The belief that the moral rules should be determined by persons who have a "veil of ignorance" about their place or station in society.

The moral theory of ethical relativism can best be characterized by:

b. The belief that the moral rules should be determined by persons who have a "veil of ignorance" about their place or station in society.

The theory of business social responsibility that holds that a business owes duties solely to produce the highest return for its shareholders is:

b. The maximizing profits theory.

Which of the following is not a part of the beliefs of Kantian Ethics?

c. Choosing a course of action based on what does the greatest good for society.

Constituency statutes most directly relate to which theory of the social responsibility of business?

c. Stakeholder interest

Kantian ethics can best be characterized by:

e. A set of universal rules based on reasoning that must be applied in all situations and is characterized by reversibility

Peter runs an auto air conditioning repair shop. Because of the phase-out of the ozone-depleting refrigerants used in older auto air conditioners auto air conditioning repairers have become subject to numerous new laws and regulations, some of which are costly and burdensome with which to comply. Although it costs him more, Peter decides to follow all the statutes and regulations so long as everyone else does the same. Peter has reached his decision in accordance with:,

e. Rawls's distributive justice theory.

Someone who believes that the principles of justice and moral duties are based on universal rules and that the actor must abide by the same rules being applied to others, believes in which moral theory?

e. Rawls's distributive justice theory.

Which course of action would utilitarianism require to be taken?

b. The one that provides the greatest overall good to society, even if the benefit of that alternative flows to only one person.

Peter runs an auto air conditioning repair shop. Because of the phase-out of the ozone-depleting refrigerants used in older auto air conditioners auto air conditioning repairers have become subject to numerous new laws and regulations, some of which are costly and burdensome to comply with. This results in much higher costs for air conditioning repairs for many owners of older cars. By not following some of these regulations, Peter can repair these older cars at a much lower cost. Peter believes that the good that comes from the reduced repair costs outweighs the resulting incremental damage to the environment, and thus decides to not follow the regulations. Peter has reached his decision in accordance with:

b. Utilitarianism.

Someone who believes that moral decisions should be made such that the greatest amount of good in total results from the actions believes in which moral theory

b. Utilitarianism.

Which of the following is a frequently raised criticism of "utilitarianism?"

c. Decisions made using utilitarianism require the measurement of qualities that are not subject to precise measurements.

Someone who makes moral decisions based on the guidance of an outside source, such as another person, is applying which moral theory?

c. Ethical fundamentalism.

Which of the theories of the social responsibility of business includes obligations of a business to parties other than shareholders?

c. Stakeholder interest and corporate citizenship.

What does the "veil of ignorance" require under Rawls's distributive justice theory?

c. That ethical obligations be determined by persons who do not know their place in society.

The moral theory of ethical relativism can best be characterized by:

c. The belief that a person must decide what course of action is proper based on that person's own set of beliefs or feelings.

Big Green Company is considering introducing a new product to replace an existing product. The new product would result in increased revenues but slightly lower overall profits because the product will cause injury to a few users and Big Green will compensate persons who are injured. The introduction of this product would be the proper decision under:

c. The moral minimum theory, but not under the profit maximization theory.

The theory of business social responsibility that holds that a business owes duties to the various constituencies such as customers and employees, in addition to the shareholders is:

c. The stakeholder interest theory.

A business that undertakes activities that benefit persons who are in no way connected with the business is applying which theory of the social responsibility of business?

d. Corporate citizenship.

Which of the following statements is true regarding the relationship of law and ethics?

d. Depending on the circumstances, the law can require a higher, lower, or the same standard of conduct as ethics demands.

A famous psychologist has written a highly acclaimed book targeted at victims of domestic abuse. This book gives practical advice on getting out of such abusive relationships and avoiding further injury prior to getting out of the relationship. Pat thinks the book is excellent but knows that many persons who could benefit from the book are unaware of its existence and unable to afford its $39.95 price. Pat is considering photocopying significant portions of the book and selling the photocopied portions to such persons at the cost of photocopying, which is much less than $39.95. In using a utilitarianism approach to decide whether to undertake this, Pat would:

d. Determine if the total good to the world would be increased if Pat were to undertake the photocopying and selling of the copied book sections.

Which of the following best characterizes "utilitarianism?"

d. Determining which course of action produces the greatest amount of good for society.

The Houston-based energy company that filed for Chapter 11 bankruptcy and whose business conduct is one of the grossest examples of corporate greed and fraud in America was the

d. Enron Corporation.

Deontology is another term applied to:

d. Kantian ethics.

Mary owns her own business and has just attended a cash flow management seminar where it was suggested the businesses should delay paying their suppliers as long as absolutely possible even if doing so violates the stated payment terms. Mary decides to continue paying her suppliers on time in accordance with their payment terms because Mary would like her customers to pay her on time. Mary has reached her decision in accordance with:

d. Kantian ethics.

The golden rule "Do unto others as you would have them do unto you," is most directly reflected in which moral theory?

d. Kantian ethics.

The four theories of social responsibility of business discussed in the text can best be described as:

d. Policies on which laws should be based, more than one of which might be proper.

The theory of business social responsibility that holds that a business has a duty to generally do good for society is:

d. The corporate citizenship theory.