law chapter 2

The ultimate source of ethical values for decision making in business comes from the _____.

individual

In John Rawls's social contract theory, the second principle states that social and economic inequalities may exist, but these inequalities must be based on _____.

what a person does

Which of the following is a situation that adheres to the legal requirement of honoring confidentiality?

A manager of a corporation does not buy and sell corporate stock on information she knows because of her position in the organization.

Identify the ways in which managers infringe on the property interest of corporate owners.

By propping up loans they have secured with company stock By obtaining huge bonuses

What are the impacts of the decline of the Protestant ethic on the modern business corporation?

Emphasis on corporate profit alone sometimes conflicts with ethical responsibility. How a profit is made becomes less important than that it is made.

What is the impact of lack of openness in communication among individuals in business corporations?

Ethical decision making is hindered.

_____ is the principal element that triggers liability against a defendant in negligence law.

Failure to exercise due care in one's behavior

Identify the meanings of good faith according to the Uniform Commercial Code.

Honesty in fact Honesty in intent

Identify the features of the Protestant ethic.

It emphasized that each person had the means to address God personally. It advocated bending indulgence and human desire to God's will through productivity, rational planning, and self-denial.

Identify the characteristics of the system of ethics known as formalism.

It focuses on the worth of the individual. It affirms an absolute morality.

Identify a true statement about stakeholder theory.

It includes but goes beyond the responsibilities of corporate governance.

Which of the following statements is true of the system of ethics known as formalism?

It is primarily a duty-based view of ethics.

Identify the true statements about the transformation of the Protestant ethic over time.

It no longer contained the original absolute moral values. Its religious basis started to erode.

Which of the following is an assumption made in John Rawls's social contract theory?

One does not know one's own race, strength, age, gender, or intelligence.

_____ is necessary for ethical corporate decision making because of the complexity of information required to evaluate the implications of many business decisions.

Openness in communication

Identify the major ethical rules that can be drawn from the law.

Respect for the liberty and rights of others The importance of exercising due care The importance of acting in good faith

Identify a statement that is synonymous with the principles of utilitarianism.

The end justifies the means.

Which of the following is a difference between ethics and law?

The legal system is an institution of the state, while ethical systems are not.

Identify a true statement about the systems of ethics known as formalism and consequentialism.

They begin from different assumptions.

Identify the true statements about shared moral values.

They create social harmony. They are a significant means of social control. They lead people to trust and accept others.

Identify the roles of ethics officers in business organizations.

They develop ethics policies. They investigate abuses of ethical values.

How do individuals behave when they are part of a large group in business organizations?

They feel less responsibility for what happens in the group than what happens in their individual lives.

What is the role of the Internet and the news media in business ethics?

They heighten public awareness.

What is the impact of the news media and the Internet on business ethics?

They make hiding the questionable behavior of large organizations increasingly difficult.

Identify the impacts of a group on individuals in business corporations.

They will do unethical things as part of a group which they would never do alone. They may act differently than they would in their personal lives.

How did the Protestant ethic help create modern consumer society?

Through its emphasis on economic independence

Many laws don't address ethical concerns.

True

True or false: Ethical problems associated with modern corporations can arise because corporate leaders are not the real owners of corporations.

True

The two principal systems of reasoning in Western ethical decision making are formalism and

consequentialism

is a principal system of ethics that concerns itself with the moral consequences of actions rather than with the morality of the actions themselves.

consequentialism

A characteristic of the codes of ethics for accountants and marketers is that _____.

each code comprises many rules that apply to specific situations arising in the marketer-client and accountant-client relationship

For managerial agents in business corporations, it may be _____ because they control corporate resources.

easy to manipulate assets in their own interest

The social contract theory has its origin in formalism because it _____.

emphasizes self-worth and individual rights

Business leaders recognize that they will prevent outside standards from being imposed on them through public law by _____.

encouraging ethical conduct within business organizations

A systematic statement of right and wrong together with a philosophical system that both justifies and necessitates rules of conduct is known as

ethics

Legal regulation is not enough to insure society's protection from harmful business practices, this a strong sense of ________ is needed for sound business decision making.

ethics

The community around you is the ultimate source of ethics for business decision making.

false

True or false: A good time and a good life mean the same.

false

Consequentialism is a principal system of ethics that _____.

focuses on the common good

Ethics is a philosophical system that _____.

involves a rational method for recognizing what is right and wrong

It is not considered sufficiently responsible for businesses to merely observe the law because _____.

legal regulation is inadequately informed to be the only social guide for business decision making

Business leaders have incentive to promote corporate integrity, and thereby to _____.

limit further governmental regulation

In a business organization, an ethics officer is an individual who _____.

listens to complaints of ethics violations

An ethical problem that can arise from the modern corporation and economic interdependence is that _____.

managers can manipulate corporate actions for their own benefit

The collection of values that guide human behavior is known as _____.

morality

Immanuel Kant, a formalist thinker, stated that _____.

one has a moral duty to act in the way one believes everyone should act

In many codes of business ethics, applied examples address specific types of business conduct, while general statements of shared ethical values _____.

remind employees what their companies stand for

It is appropriate to term the ethical codes under the professional codes of ethics for marketers and accountants ___________ because the state will likely regulate these professions if they do not do so themselves.

self regulation

The theory that concerns itself with how to construct a just society given the many inequalities of social status, knowledge, and wealth is known as the_____ _______ theory.

social contract

Due care in one's behavior is a major ethical principle that can be drawn from the law. It derives from _____.

society's expectations about how fair and reasonable actions are

The consequentialist ethics that maintains that ethical corporate behavior depends on managers who recognize the various stakeholders whose interests the corporation impacts is known as _______ ___________.

stakeholder theory

Immanuel Kant's emphasis on acting in ways that are ethically consistent is known as _____.

the categorical imperative

According to philosophers, the end result of ethical examination is called _____.

the good

With the Protestant Reformation of the sixteenth century came a new emphasis on _____.

the importance of the individual

Honoring confidentiality is an ethical rule drawn from the law.

true

True or false: Acting with an honest intent is the key to understanding good faith.

true

True or false: The legal requirement of honoring confidentiality appears in agency law in general and in the professional-client relationship in particular.

true

A dominant form of consequentialism that judges actions by whether they serve to increase the common good is known as _____.

utilitarianism

General statements of shared _______ remind employees what their company believes in and encourages ethical behavior.

values