Managerial Ethics Final Exam

Unethical behaviors in finance is often triggered by:

short-term focus with unrealistic assumptions.

Consequentialism:

states that the moral rightness of an action is determined solely by its results

The "tragedy of the commons" is:

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

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.

A reason for studying business ethics is:

to learn the approaches for resolving ethical issues

The courts and the general public find corporate responsibility

useful and intelligible.

A key idea of Immanuel Kant's ethical theory is that:

we should treat people as ends in themselves, never merely as means.

Ethical relativism supports the theory that:

what is right is determined by what a culture or society says is right

The most accurate statement about workplace safety is:

workers are often unaware of the hazards they face on the job

The Ponzi Scheme is an example of ethical misconduct in:

Accounting

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 of the following do proponents of the broader view of corporate social responsibility believe?

Businesses have other obligations besides making a profit.

The only accurate statement about consequentialism is:

Consequentialism says that the moral rightness of an action is determined solely by its results.

Which statement has the proper perspective about the testing of employees by a business?

Drug testing can only be defensible when there is a legitimate interest at stake and that the steps the business is taking to protect that interest are reasonable and morally permissible.

Which statement creates the best picture of 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 an accurate statement about modifications to common law from the Wagner Act of 1935?

It's illegal to fire workers because of union membership

Enron and Arthur Anderson scandal resulted in government imposing stricter regulations that included:

Sarbanes-Oxley Act

Protestant ethics lead to:

The development of capitalism and foundation of business ethics

What is business ethics?

The moral principles and standards that guide conducts in business

Which of the followings can be used to describe accounting?

Tracking financial activities within a company, deciding on capital or funding policy.

Many economists are concerned that the growing trade deficit makes the U.S. vulnerable to

economic extortion.

The famous experiments by social psychologist Solomon Asch show

even temporary groups can pressure people to conform.

Talk of justice and injustice typically focuses on:

fairness, equality, desert, and rights

As they try and fit into a work world dominated by white men, women, and minorities can be disadvantaged by

false preconceptions, stereotypes, prejudiced attitudes.

Business has considered the environment to be

free and nearly limitless.

According to Kant:

good will is the only thing that is good in itself.

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

government subsidies and protective tariffs.

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

holdings.

Conflicts of interest may exist when employees have financial investments

in suppliers, customers, or distributors with whom their organizations do business.

According to the text, psychological egoism

is derived from alleged fact that human beings are by nature selfish creatures.

Rawls rejects utilitarianism because

it might permit an unfair distribution of burdens and benefits.

Which of these is a valid reasoning for not hiring a potential employee?

lack of experience

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

let-government-do-it

The right to privacy of employees

may conflict with an organization's legitimate interests.

Which of the following historical stages of capitalism came first?

mercantile

Which of the following characteristics distinguishes moral standards from other sorts of standards?

moral standards take priority over other standards, including self-interest

Conflicts of interest

occur when employees' have special or private interests that are substantial enough to interfere with their job duties.

In contrast to traditional manufacturers, many companies have become hollow corporations who

outsource and likely produce only the package and the label .

According to John Rawls:

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

According to libertarianism:

people should not attempt to coerce others.

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

pricing mechanisms

Unions employ two kinds of boycotts to enforce their demands. These two kinds of boycotts are

primary and secondary

One of the four key features of capitalism is

private property.

To the libertarians, their concept of liberty includes a commitment to

private property.

According to Locke:

property is a moral right.

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

social responsibility.

To be successful any test used by a corporation must be:

valid

A basic premise of Adam Smith's is:

we can secure what we need from others only by offering them something they need from us.

In union terms, a direct strike occurs

when an organized body of workers withholds its labor to force the employer to comply with its demands.

Douglas McGregor rejects Theory X, which holds that:

workers essentially dislike work and will do everything they can to avoid it

Which of the following is true of factory farms?

Have the largest and most devastating impact on animals.

Which of the following statements is true regarding human rights?

Human rights are equal rights; if X is a human right, then everyone has this right.

____ is a major ethical issue in market segmentation, targeting, and positioning.

Invasion of privacy

The statement that best defines rights is:

a right is an entitlement to act or to have others act in a certain way.

Proper logic states

all sound arguments are valid arguments.

Utilitarians believe that:

an action that leads to unhappiness is morally right if any other action that you could have performed instead would have brought about even more unhappiness.

Employers have the right to fire an employee who performs inadequately, but they should do so

as painlessly as possible

Advocates of "comparable worth"

believe women and men should be paid on the same scale for doing equivalent jobs and different jobs involving equivalent skill, effort, and responsibility.

A "trade secret"

can be almost any information not generally known if it is valuable to its possessor and treated confidentially.

The code or principles of conduct that a person accepts

can be distinguished from the person's morality in a broader sense that includes his or her values, ideals, and aspirations.

According to common-law, to legally terminate an employee, an employer

can have any reason or no reason.

A basic tenet of capitalism is that:

capitalism requires private ownership of the major means of production.

Corporations are limited-liability companies which means that

corporate shareholders are liable for corporate debts only up to the extent of their investments.

The concept of the "invisible hand" means:

each person's private pursuit of wealth will result in the most beneficial overall organization and distribution of economic resources.

Business ethics is important in the following organizational performances

employee commitment, investor loyalty, customer satisfaction

Since Congress passed the Americans With Disabilities Act in 1994

employers must make "reasonable accommodations" for disabled workers

Choose the statement that gives the most accurate description of etiquette:

etiquette refers to any special code of social behavior or courtesy

Which of the following is the U.S government regulation on food safety

FDA

Strong ethical leaders have a passion for all of the followings except

Satisfy shareholders before other stakeholder groups.

Which statement is true about the hiring and employment process?

According to common law, unless there is an explicit contractual provision to the contrary, every employment is employment "at will."

Which of the following is NOT a principle of ethical leadership:

Challenge others

Out of these four, which one is the only correct statement concerning OSHA?

Critics call OSHA a "toothless tiger".

The Federal Sentencing Guidelines for organization

Encourages businesses to take preventative actions against ethical misconduct.

Moral attitudes are best depicted by which of the following?

Moral standards typically concern behavior that can be of serious consequence to human welfare

Opponents of comparable worth insist which one of these ideas support their position?

Most women have freely chosen the lower paying occupations.

Which of the following is a conclusion reached regarding childhood obesity?

Over the decades that childhood obesity has increased, so too has the amount of advertising.

Which of the following represents a utilitarian belief?

We should bring about the most happiness for everyone affected by our actions.

The veil of ignorance demands people in the original position to be

impartial.

Animal manure:

is a large source of pollution

Which of the following is the most plausible argument FOR affirmative action?

it is necessary to break the cycle that keeps minorities and women locked into low-paying, low-prestige jobs

Used properly, personality tests serve two purposes in the work place. Which of the following is one of those purposes?

personality tests help screen applicants for jobs by indicating areas of adequacy and inadequacy.

All of the following are criticism leveled against marketing EXCEPT:

providing consumer with many product choices

U.S. companies have a history of paying off foreign officials for business favors. Such acts were declared illegal by

the Foreign Corrupt Practices Act (FCPA) of 1977

Today most large corporations not only accept the necessity of affirmative action but also find that _____ benefits when they make themselves more diverse?

the bottom line

Though many jobs are outsourced, most economists believe

the economy will create new jobs.

Evidence for the idea that American manufacturing is declining is

the fact that government now employs more people than manufacturing.

Sexual comments that one woman appreciates might distress another women. The courts decide when such behavior is inappropriate by seeing if the behavior would be offensive to

the hypothetical "reasonable person"