Exam Two Business 110

According to Shaw and Barry, utilitarians

should include nonhuman animal pleasures and pains in the overall utilitarian calculus.

Aristotle's formal principle of justice states

similar cases must be treated alike except where there is some relevant difference

Melvin Anshen suggests that there is a relationship between business and society which he termed as

social contract

According to Holmes Rolston III

some natural objects are morally considerable in their own right, apart from human interests

Primary social goods include

status

Advertising

subsidizes the media

The "tragedy of the commons" is

that individual pursuit of self-interest can sometimes make everyone worse of

In consideration for the obligation to others

the US uses more than its proportional share of the world's resources.*

Evidence for the idea that American manufacturing is declining is

the fact that government now employs more people than manufacturing

According to the philosopher Joel Feinberg,

the rights of future generations are contingent upon those people coming into existence

Which of the following is true of factory farms

they permit the mass production of meat at low prices.

The veil of ignorance proposes that

those in the original position are supposed to choose principles on the basis of self interest, agreement seems unlikely

Who is more likely to be sympathetic with the idea of reducing the disparities of income in society

utilitarians

A basic of Adam Smith's invisible hand argument is

we often get what we want from other by offering something they need from us

The first corporations

were towns, universities, and ecclesiastic orders.

John Rawls' theory of justice lays within which type of tradition

All for one and one for all

According to one survey of cultural values

Americans typically value things like their children's education and a satisfactory love life more than work

Which statement best describes capitalism

Capitalism is an economic system that operates under the profit motive

Momentum for the corporate organization of business really gained momentum after which war?

Civil War

One of the key features of capitalism is

Competition

For years Bayer aspirin advertised that it contained "the ingredient doctors recommend most." This is an example of

Concealed facts

Milton Snoeyenbos argues that

Corporate moral codes can make it more reasonable to expect employees to behave ethically.

The debate over corporate moral agency hinges on which issue

Corporate punishment

Talk of justice and injustice appeals to the related notions of

Fairness, equality, desert

In Anarchy, State and Utopia, Robert Nozick advocated

Libertarianism

Which of the following is an example of price gouging

New York hotels that doubled or tripled their prices in the aftermath of the September 11, 2001, attacks.

According to John Rawls, people in the original position choose the principles of justice on the basis of

Self interest

Those with a broader view concerning business obligations believe that with power comes

Social responsability

Which statement is accurate in its description of consumer protection

The Consumer Product Safety Commission has the power to order recalls

Which of the following contributed to the more relaxed incorporation procedures of modern times

The idea that incorporation is a by-product of the people's right to associate, not a gift from the state.

Which environmental statement is true

Tropical forests are earths richest, oldest and most complex ecosystems.

Milton Friedman argues that

a business's only social responsibility is to maximize profits within the rules of the game

Critics of advertising generally agree that

advertising rarely gives consumers much useful information.

Adam Smith proposed that in our pursuit of economic interests we are led by

an invisible hand to promote general good

Some critics of capitalism believe that it rests on a flawed view of human beings because

capitalism assumes that well being comes from greater material consumption

Marxism states

capitalism leads to a concentration of property and thus a concentration of resources and power in relatively few hands.

Karl Max believed that

capitalist workers suffer from alienation

The best statement concerning corporations is

corporate culture can be both explicit and implicit.

The statement that accurately describes corporations is

corporate shareholders have limited liability for their debts

Harvard business professor Theodore Levitt has

drawn an analogy between advertising and art.

Most Americans believe a corporation's top obligation is to its

employees

"Puffery" is an example of which of the following deceptive or misleading advertising techniques

exaggeration

People generally speak of two kinds of warranties. What are these two kinds of warranties

express and implied

The veil of ignorance assures us that people in the original position will be

impartial

The difference principle of Rawls states

inequalities are only justified if they benefit the least advanged

animal manure

is a large source of pollution.

According to Libertarianism

it would be unjust to coerce people to give food or money to the starving

Caveat emptor means

let the buyer beware

Which of the following is one of the three arguments in favor of narrow corporate social responsibility discussed in Chapter 5?

let-government-do-it

Legal paternalism is the doctrine that the law

may justifiably restrict the freedom of the individual for his or her own good.

Which of the following historical stages of capitalism came first

mercantile

Every year ____ of Americans require medical treatment from product related accidents

millions

A common point of contention about corporations is

philosophers and business theorists disagree whether corporations are moral agents

Which of the following is true concerning our environment today

polluted air is a health risk

The "rules of the game" for corporate work are intended to

promote open and free competition

For the first time since the industrial Revolution, less than percent of the American workforce was

10

Which of the following do advocates of the broader view of corporate social responsibility believe

Corporations have moral obligations to consumers, to employees, to suppliers and contractors, to the surrounding community, and to society at large.

Which statement is true from an ethical perspective

The argument for strict liability is basically utilitarian

If libertarianism is true, which of these statements is true

We should have a night watchman state

In deciding whether an ad is deceptive, today the FTC basically follows

a "modified" ignorant-consumer standard

An ecosystem

can be upset by human behavior

A basic tenet of capitalism is that

capitalism requires private ownership of the major means of production.

The philosopher Tom Regan

claims that no impartial morally sensitive person could approve of the treatment of animals in factory farms if he or she knew what was going on

The moral theorist William T. Blackstone claims that the right to a livable environment

is a fundamental human right

The idea that corporations are moral agents

is accepted by many people and companies without hesitation

Some environmental regulations (like forbidding the burning of coal in cities) benefit each and every one of us because the air we all breather is cleaner. If an individual ignores the regulation and burns coal, while others obey the regulation, then he or she

is being a free rider

William F. Baxter addresses environmental ethics by noting

judgments about environmental problems ought to be people-oriented

Milton Friedman's perspective is that the only social responsibility of a business is to

make money for its owners

According to the legal doctrine of strict product liability

manufacturer need not be negligent to be held liable for a defective product

For employees who are paid handsomely for their efforts, Marx said their work would ultimately prove to be

meaningless to them

One truth about factory farms is

most animals we eat are from them

The profit motive

must be checked by competition if society is to benefit

From John Stuart Mill's viewpoint

not every issue of social utility was a matter of justice

According to John Rawls

people in the original position choose the principles on the basis of self-interest

The case of MacPherson v. Buick Motor Car in 1916 changed product liability law. As a result of it, the courts

permitted consumers to sue manufacturers with whom they had no contractual relationships

"Pollution permits" are an example of which of the following methods of achieving our environmental goals

pricing mechanisms

According to Galbraith's "dependence effect,"

producers use advertising to shape consumer wants.

In association with labor and capital, Mill had contrasting views of

profit sharing

Some argue for the narrow view of corporate social responsibility on the ground that managers have a fiduciary responsibility to maximize the profits of their shareholders. As discussed in Chapter 5, one problem with this argument is that

promises don't override all our other obligations

According to Locke

property is a moral right

The concept of the invisible hand meas

pursuit of private gain will bring the best overall results

According to Mill's utilitarianism

rights are certain moral rules whose observance is of the utmost importance for the long-run, overall maximization of happiness.

In the corporate world, the board of directors will typically

rubber stamp the policies and recommendations of the management

Mill justified utilitarianism from rival perspectives when he argued

that without utilitarianism to provide a determinate standard of justice, one is always left with a plethora of competing principles of justice, all of which seem to have plausibility but are mutual incompatible

According to the anthropocentric (or human-oriented) ethic of Baxter and others,

the Grand Canyon is valuable only because people care about it

Before the case of MacPherson v. Buick Motor Car in 1916, the law based a manufacturer's liability for injuries due to a defective product on

the direct contractual relationship between the producer and the consumer

Due care is

the idea that consumers and sellers do not meet as equals and that consumer's interests are particularly vulnerable to being harmed by the manufacturer.

An exclusive focus on short term performance

has helped to create a high-pressure environment conducive to fraud

Which of the following is an accurate statement

A common defense of capitalism is the argument that people have a fundamental moral right to property and that our capitalist system is simply the outcome of this natural right

An assessment of work in America is

American manufacturing is growing faster than ever

In 1972 Congress created one of the most important agencies for regulating product safety. This agency is the

Consumer Product Safety Commission

which statement accurately describes capitalism

In state welfare capitalism the government plays an active role in regulating economic activities in an effort to smooth out the boom and bust pattern of the business cycle

Which of the following is true of a regulatory approach to environmental problems

It requires the EPA or other body to determine the most effective, feasible pollutioncontrol technology for each different industry.

which of the following accurately reflects the concept of Marxism

Labor is alienated in a capitalist economic system because the labor of worker stands opposed to the worker as an autonomous power

Externalities are

Unintended Side-Effects

In Citizens United v. Federal Elections Commission, the U.S. Supreme Court

defended the first Amendment right of corporations to spend money to support political candidates they favor

One of the three important "limits to what the law can do" discussed by Christopher Stone is

designing effective regulations is difficult.

The first principle of Nozick's entitlement theory concerns the original acquisition of

goods, money, and property

Concerning future generations,

the social and environmental policies we adopt can affect who is born in the future

Kenneth Arrow discussed two important situations in which profit maximization can be socially inefficient. One of these occurs when

there is an imbalance of knowledge between buyer and seller

Corporations differ from partnerships and other forms of business association in two ways. One of these is that

they must be publicly registered or in some way officially acknowledged by the law

The case of FTC v. Standard Education was important in the legal transition

toward something like the ignorant consumer standard.

cost-benefit analysis

values costs over benefits.

one reason for believing that in practice capitalism fails to live up to its own ideal of competition is

we have government subsidies and protective tariffs