Business Ethics Exam Part 1

A. the reason or rule with which one undertakes an action

A "maxim," according to Kant's terminology, is _______. A. the reason or rule with which one undertakes an action B. the moral principle that one has in mind C. that which would make an action moral D. the outcome of an action

False

A basic assumption made by moral philosophers is that ethical judgment is entirely opinionated and subjective.

A. care for another's financial interests

A fiduciary is someone who has the special responsibility to _________. A. care for another's financial interests B. sell goods as efficiently as possible C. provide as much information as possible D. take a professional interest in another's success

Duty

A general obligation or moral requirement to act in a certain way, such as keeping one's promises.

B. people would be free riders if they could be

A market economy alone cannot sustain public goods because ________. A. no one would want to take advantage of public goods B. people would be free riders if they could be C. people would try to sell each other public goods D. participants in a market economy are imperfectly rational

D. the profit motive

A market economy is based fundamentally on _______. A. ethical motivations B. human welfare C. manufacturing D. the profit motive

False

A traditional philosophical assumption made in ethics is that concepts of 'right' and 'wrong,' 'good' and 'bad' in human conduct are relative to the society or culture in which one lives.

True

According to Aristotle, both virtues and vices are habits or active predispositions of a certain kind.

A. place priority on fulfilling your own interest.

According to ethical egoism, when your best interest conflicts with another person's, you should _________. A. place priority on fulfilling your own interest. B. seek a peaceful and fair resolution to the conflict. C. use reason to find terms acceptable to both parties. D. defer to the authority of someone who knows what's best.

True

According to ethical objectivism, if an ethical principle is valid, it sets up the same moral obligation for everyone to follow in most normal circumstances.

True

According to individual or subjective ethical relativism, no one can be objectively mistaken in his or her personal moral judgments.

False

According to the theory of ethical objectivism, the only legitimate moral guidelines are those that are necessarily connected to the emotions or attitudes of specific individuals or subjects.

False

According to the theory of ethical subjectivism, moral guidelines are "objective" if they are the product of considerations of fact and/or reason that do not depend on the perceptions, judgments, or emotions of particular persons or the beliefs of a particular society.

True

According to utilitarian moralists, if an action is not physically harming anyone, there is no good reason for the state to prohibit it.

A. People will behave rationally as they pursue their interests.

Adam Smith's economic theory of capitalism is based on which of the following assumptions? A. People will behave rationally as they pursue their interests. B. People want to promote each others' interests. C. Free markets will fix their own ethical problems. D. Morality is not relevant to economic concerns.

The principle of privacy

All citizens have a right of immunity from unnecessary searches by police or government officials.

False

All laws are framed to meet the highest ethical standards.

True

Although Aristotle's term eudaimonia is often translated as "happiness," it is best understood as flourishing or self-development.

True

An ethically wrong state or condition can still be legal.

False

Aristotle's "doctrine of the mean" teaches that people conform to the average or customary standards in their actions.

False

Because principles are general norms that leave considerable room for interpretation, they should be regarded as subjective expressions or individual opinions.

The principle of retributive justice

Concerns due process in determining guilt or innocence and appropriate punishment.

The principle of distributive justice

Concerns fair allocation of social benefits and burdens to all citizens.

B. levels

Decision making in business occurs at various distinctive ______. A. places B. levels C. objectives D. laws

B. levels

Decision making in business occurs at various distinctive ______. A. places B. levels C. objectives D. profits

C. reason when pursuing our goals

Economic reasoning describes how we ______. A. ought to reason B. prioritize our desires C. reason when pursuing our goals D. would reason if we could have whatever we wanted

True

Economic values in business firms and ethical values in society at large sometimes come into conflict.

False

Ethical principles and social laws are essentially the same thing; hence; whatever is legal is also moral.

False

Ethical relativism claims that there are at least some moral principles that are universally right or valid, regardless of whether or not they are in fact recognized as such by a particular society or culture.

True

Ethics is an academic discipline that examines the reasons that people give and the values or principles that they invoke for acting one way rather than another.

False

Ethics is an academic discipline that seeks only to describe the ways that people do in fact behave and what motivates them to act as they do.

False

Ethics is primarily a descriptive academic discipline.

True

Ethics is primarily a prescriptive academic discipline.

The principle of autonomy (or liberty)

Everyone has a right to exercise their free will in the context of the law and to make decisions on their own behalf.

The principle of equality

Everyone should be treated impartially under the law and be afforded the same protections of the law.

The principle of integrity

Everyone should be truthful in their dealings with other people.

The principle of respect for persons

Everyone should recognize the value of human life and personal dignity.

A. a guarantee against retaliation

For ethical reasons, all whistle-blowing policies should include _______. A. a guarantee against retaliation B. a guarantee of continued employment C. a way for employees to go public D. specific monetary awards

A. by referring to a set of universal rules that are based on consistency and reversibility

How are ethical rules established in Kantian ethics? A. by referring to a set of universal rules that are based on consistency and reversibility B. by following principles that have been derived from holy books C. by an individual's feelings on what is right and wrong D. by choosing actions or policies that produce the greatest amount of happiness

True

In Aristotle's view, it takes time, effort, and training to acquire moral virtues and become genuinely happy.

D. rules and principles of conduct that apply in everyday life

In many cases, rules of business ethics can be determined by _______. A. applicable laws B. company guidelines C. economic requirements D. rules and principles of conduct that apply in everyday life

B. the categorical imperative

In the Ford Pinto case, documents obtain at trial showed that Ford executives knew about the design flaw in its placement of the gas tank at the rear of the car but decided it would be less costly to pay out money in the event of injury or death of Pinto drivers or passengers than to re-design the production line. What non-consequentialist ethical concept did their decision violate? A. the principle of utility B. the categorical imperative C. cost-benefit analysis D. the principle of self-interest

B. The utilitarian moralist would tell Jim that the best outcome is to kill one person in order to spare the lives of the others.

In the scenario "Jim and the Indians," what would a utilitarian moralist (act utilitarian) do? A. The utilitarian moralist would tell Jim that he shouldn't shoot to kill anyone. B. The utilitarian moralist would tell Jim that the best outcome is to kill one person in order to spare the lives of the others. C. The utilitarian moralist would tell Jim to stand and bear witness to the atrocity but not to participate in it. D. The utilitarian moralist would tell Jim to stand with the Indians in defiance of the army captain.

C. deliver the money as promised, even if it is wasted

In the scenario involving the eccentric millionaire whose dying request is that his trusted employee take the cash box to the New York Yankees baseball team, a Kantian deontologist would advise the employee to _______. A. remain neutral until the old man dies B. give the money to a charitable organization that could do the most good with it C. deliver the money as promised, even if it is wasted D. pocket the money and not tell anyone

C. ethics goes beyond what can be legally codified

It is not ethically sufficient to obey the law because ______. A. the law does not apply to business in general B. ethical constraints sometimes require that the law be ignored C. ethics goes beyond what can be legally codified D. the law itself is stricter than ethics

legal

It is possible for there to be unethical actions that are not ______.

False

Kant asserted that the only unconditionally good thing is a "good will," which means that a person who feels that he or she has good intentions is acting morally

False

Kant gave only one formulation of the categorical imperative.

Rights

Legal or civil entitlements whereby persons or citizens are due certain treatment from others, including respect for privacy, freedom of speech, and other civil liberties.

D. participants have differing levels of skill

Market outcomes often lead to unequal social or economic outcomes mainly because ________. A. it involves random processes B. free markets are inherently unjust C. there is government interference D. participants have differing levels of skill

B. the intentions of the agent

Non-consequentialist theories of ethics locate moral goodness in _______. A. the outcome of actions B. the intentions of the agent C. the maximization of social welfare D. obedience to the law

B. companies sell their collected information to other companies

One of the biggest issues in consumer privacy occurs when ______. A. companies find out what customers most like B. companies sell their collected information to other companies C. companies use databases to store customer information D. companies keep personal information on employees

D. hierarchy

Organization in business is characterized mainly by its ______. A. rules B. products C. profits D. hierarchy

False

Revenge or retribution is the primary motivation of corporate whistleblowers.

C. a person must abide by the rule he or she uses to judge the morality of someone else's conduct

Reversibility is a principle of Kantian ethics according to which ________. A. a person must be allowed to reverse his moral judgment to better suit his needs B. a person must treat all moral circumstances as uniquely situational C. a person must abide by the rule he or she uses to judge the morality of someone else's conduct D. a person must be allowed to selectively choose moral judgments based on the circumstances

B. ethical objectivist

Someone who believes that there are at least some moral principles that are objectively and generally valid in most situations involving human interactions is someone who is a(n) _______. A. ethical subjectivist B. ethical objectivist C. ethical relativist D. divine command theorist

B. utilitarianism

Steve Templeton, the CEO of Rolland Motor Company, is contemplating the shutdown of a plant in Kantron. The plant has been unprofitable for some time now, and there is an increasing pressure from shareholders to shut it down so as to balance the loss being incurred by the shareholders. Closing the plant would result in the employees losing their jobs and the local suppliers losing a major buyer. It will also have an adverse effect on the community of Kantron as the plant is one of the main sources of employment for the locals. Steve considers all these factors before deciding the fate of the plant. After considering all the factors, Steve finds that the loss to the employees and the community is far greater than that incurred by the shareholders and decides to keep the plant open. Which of the following moral theories matches Steve Templeton's approach to the situation? A. Rawls's social justice theory B. utilitarianism C. Kantian ethics D. Natural law theory

D. maximizing profits

Steve Templeton, the CEO of Rolland Motor Company, is contemplating the shutdown of a plant in Kantron. The plant has been unprofitable for some time now, and there is increasing pressure from shareholders to shut it down so as to balance the loss being incurred by the shareholders. But closing the plant would be a blow to the employees as they will lose their jobs,and the local suppliers will lose a major buyer. There is also fear that the sudden closing of the plant will have an adverse effect on the community of Kantron, as the plant is one of the main sources of employment for the locals. Steve Templeton considered all these factors before making a decision on the fate of the plant. Steve Templeton decides to close the plant in Kantron. What important business responsibility will Steve Templeton accomplish? A. corporate citizenship B. stakeholder interest C. social utility D. maximizing profits

A. the outcome of actions

Teleological or consequentialist theories of ethics locate moral goodness in _______. A. the outcome of actions B. the intentions of the agent C. the obligations of people to each other D. the maximization of economic opportunity

C. recognizing the intrinsic value of persons as ends-in-themselves

The Kantian ethical concept of dignity most centrally involves _________. A. treating all persons equally despite any factual differences B. disclosing all information that is needed by others C. recognizing the intrinsic value of persons as ends-in-themselves D. behaving with high standards of virtue

A. trading characteristics

The economic character of business can be seen in its _______. A. trading characteristics B. ethical dimensions C. personal aspects D. legal guidelines

fairness

The notion of justice is most basically concerned with _______.

B. are likely to be oppressed

The principal reason for there to be whistleblower-protection laws is that whistleblowers _________. A. represent a minority B. are likely to be oppressed C. benefit society D. should enjoy freedom of speech

False

The principle of autonomy means that people have free choice to do as they please in the privacy of their own homes.

True

The principle of equality may allow different groups of people to be treated differently so long as their basic civil rights are protected and the difference in treatment furthers a compelling state interest.

False

The principle of equality requires that every person be treated in the same manner and according to the same standards, no matter who they are, what they do, or what their personal circumstances may be.

A. ethics applies to every field of life

The school of thought that says that law and ethics govern two different realms is wrong because ______. A. ethics applies to every field of life B. anything that is legal is also ethical C. anything that is illegal is also unethical D. the law governs every aspect of life

True

The view that ethics is integral to business is now widely accepted, more so than in the early 20th century.

True

Universal ethical theories provide cross-cultural moral standards or guidelines for human conduct that may be used to evaluate prevailing social beliefs and practices.

True

Utilitarian moral philosophers believe that the only intrinsically good thing is happiness or pleasure and the only intrinsically bad thing is pain or suffering.

False

Utilitarianism is an egoistic and hedonistic theory of morality. In other words, it bases the concepts of right and wrong in the most pleasure that one can give to oneself.

D. a wise person would do

Virtue ethics defines a moral action as that which ________. A. leads to the most virtue overall B. is done with the most virtuous intentions C. is done according to the proper rules D. a wise person would do

False

Virtue ethics is exclusively concerned with what we ought to do, not with the kind of person we ought to become.

False

Virtue ethics is more interested in laying down correct moral rules for life than in the development of good character traits.

C. Many people would rather not trade than be treated unfairly.

What fact does the "ultimatum bargaining game" demonstrate? A. It is often rational to price products below their market value. B. Free markets will usually self-regulate. C. Many people would rather not trade than be treated unfairly. D. Many people do not understand economics.

B. A determinate value must be placed on things that have incalculable or priceless value.

What is the most fundamental drawback of using cost-benefit analyses as the basis for ethical decisions in business? A. Some things do not really have value. B. A determinate value must be placed on things that have incalculable or priceless value. C. Cost-benefit analyses are time-consuming and require specialized skill. D. Cost-benefit analyses require a commitment to consequentialism

True

When Kant said that the only unconditionally good thing is the "good will," he meant the will of someone who intends to fulfill the obligations of unselfish reason as a universal law of action.

The principle of non-maleficence

When acting, one should avoid needlessly harming other people.

The principle of beneficence

When acting, one should pay due care and consideration of other people's well being.

B. a CEO of a company being penalized for bribing a judge to rule a case in favor of the company

Which of the following cases is an example of agreement between ethics and laws? A. a company outsourcing its work to a foreign country to take advantage of cheap labor B. a CEO of a company being penalized for bribing a judge to rule a case in favor of the company C. a company not spending more to keep its emission rates below the legal standard D. a person hiring an illegal alien worker whose family is destitute

C. People must choose the action or follow the rule that provides the greatest good to society.

Which of the following statements best describes the moral theory of utilitarianism? A. People must perform actions that are in accordance with a specific moral rule or principle from a religious text. B. People must choose to follow the actions of a virtuous person. C. People must choose the action or follow the rule that provides the greatest good to society. D. People must perform actions that are based on moral duties imparted by one's community.

A. Rawl's social justice theory

Which of the following theories of ethics is primarily concerned with the fair or equitable distribution and arrangement of privileges, opportunities, benefits and burdens in a democratic society? Correct A. Rawl's social justice theory B. Kantian deontological ethics C. utilitarianism D. Divine command theory

B. Kantian ethics

________ is a moral theory according to which people owe moral duties that are based on universal rules. A. Rawls's social justice theory B. Kantian ethics C. Utilitarianism D. Social contract theory

A. Ethical relativism/subjectivism

________ is a moral theory that holds that individuals must decide what is ethical based on their own feelings about what is right and wrong. A. Ethical relativism/subjectivism B. Kantian deontological ethics C. Utilitarianism D. Virtue ethics

D. Divine Command Theory

________ is an ethical theory according to which a person adheres to rules or commands that are from an outside source, such as a book or a central authoritative figure. A. Utilitarianism B. Deontology C. Social Justice Theory D. Divine Command Theory/Ethical Heteronomy