B Law Ch 7 (part 2) + Ch 2

Future business professionals ought to consider not just the moral and monetary costs of engaging in unethical business practices, but also the cost of lost business.

This is true. Future business professionals ought to consider not just the moral and monetary costs of engaging in unethical business practices, but also the cost of lost business. A tarnished reputation could mean losing contracts, sales, and partnerships in the future.

Legal compliance is the minimum standard essential for the development of business ethics.

This is true. The legality of the decision in choosing a method of production, how to compete with competing firms, and the social responsibilities of the firm is the minimal standard that must be met for a firm to be an ethical business. But the existence of that minimum standard is essential for the development of business ethics.

Insider-trading violations may also include "tipping" such information and trading on it by the person "tipped."

True

Although white-collar crime does not involve physical violence, there are still significant ______ and ______ costs that result from such conduct.

financial; social

The key distinction between larceny and robbery is that larceny does not require:

force

Examples of white-collar crimes include:

fraud, embezzlement

A crucial consideration of all ethical guidelines or approaches is considering the effect of a particular decision on:

stakeholders

The WPH process of ethical decision-making requires a business manager to focus on the "whom", also known as the ______, that may be affected by a decision.

stakeholders

The ______ of a firm are the many groups of people affected by the firm's decisions.

stakeholders

Business ethics refers to ______ business conduct.

standards of

The key distinction between blackmail and bribery is the presence of some form of:

threat

Ethical problems sometimes create difficult choices for business managers. For example, the purpose of most businesses is ______, but that purpose must sometimes give way to a greater good

to make a profit

Which of the following is not fraud under both federal and state statutes?

Sales talk

The Universalization Test, an ethical guideline available as a tool for businesses, asks the question:

"What if everyone acted this way?"

ABC Clothing Manufacturer, Inc., an American clothing manufacturer, chooses to use manufacturing plants in countries that do not prohibit child labor. Though this practice not illegal, many view this decision as unethical because of opposition to child labor in the United States. Identify the likely costs for the company associated with such unethical decisions.

-Loss of partnerships -Loss of sales -Loss of contracts

Acting on inside information in the purchase or sale of company stock, or insider trading, involves a breach of a(n)

-fiduciary duty -relationship of trust

Which of the following is not an element of fraud?

A false representation of a non-material opinion

is the intentional burning of another's dwelling.

Arson

is the offering, giving, soliciting, or receiving of money or any object of value for the purpose of influencing the judgment or conduct of a person in a position of trust.

Bribery

is the application of ethics to the special problems and opportunities experienced by businesspeople.

Business ethics

Tito tells Sam that he knows about a great investment opportunity in a new computer company. As a result, Sam gives Tito a check for $10,000 made out to Compu-Plus, the new computer company. Compu-Plus is actually Tito's company, and Tito deposits the check in his personal checking account and immediately withdraws $9,500 in cash which he uses as a down payment on a luxury car. Tito has committed what crime?

Embezzlement, because he lawfully had possession of Sam's money and then converted it for his own use.

is the study and practice of decisions about what is good or right.

Ethics

Fraud in the health care industry costs society an estimated $65 billion each year.

False

True or false: Only the use of fire in burning down the dwelling of another is sufficient to charge a suspect with arson.

False

Embezzlement is similar to larceny because the embezzler takes property from another person.

False. Embezzlement is distinguished from larceny because the embezzler does not take property from another; the embezzler is already lawfully entrusted with it.

Fraud in the health care industry costs society an estimated $65 billion each year.

False. Fraud in the health care industry costs society an estimated $100 billion each year.

True or false: John has invited his friend, James, back to his place of business for a meeting. While he is there, James takes some cash off of John's desk. James has committed the crime of burglary.

False. James did not enter the premises unlawfully.

Larceny is the non-secretive and wrongful taking and carrying away of the real property of another with the intent to temporarily deprive the rightful owner of its use or possession.

False. Larceny is the secretive and wrongful taking and carrying away of the personal property of another with the intent to permanently deprive the rightful owner of its use or possession.

Mr. Jacobs, a salesperson for Micro Corp., is considering padding his expense accounts slightly this month to cover a slight commission loss. Mr. Jacobs rationalizes this decision as acceptable because he has always been honest in his expense reports in the past, so he believes that the financial impact to his employer would be small. If Mr. Jacobs were to re-visit this decision by considering what the impact would be if all the salespeople took the same approach, he would be applying an ethical guideline known as the ______ Test.

Universalization

Which of the following collectively represent the basic unit of business ethics?

Values

are positive abstractions that capture our sense of what is good or desirable. We derive our ethics from them, and they represent our understanding of the purposes we will fulfill by making particular decisions.

Values

Burglary is often known as: _______.

breaking and entering

Desperate for money, John Johnson breaks into a business that is closed for the evening and takes cash from a drawer. Johnson has committed:

burglary

Economist Milton Friedman argues that public problems should be addressed

by the government and the charity of private citizens

Suppose an employee of ABC Beverage company is offered $10,000 from a competitor to obtain a list of ingredients for a soon-to-be unveiled new beverage. The employee will likely face consequences for stealing trade secrets. The competitor beverage company would face charges for:

commercial bribery

Micro Corp. has been the national sponsor of a well-known charitable organization for years. Because Micro Corp. is having a particularly slow year, it is considering pulling its sponsorship from that charity. If considered against the Public Disclosure Test, Micro Corp. should

continue its sponsorship

Ethical principles of honesty and dependability have long shaped the legal framework associated with the law of:

contracts

Abigail is starting a new business venture and she desires that all her employees subscribe to a consistent set of company values. To achieve this, Abigail should consider:

drafting a statement of core values

Abigail has to decide whether to terminate a long-time employee whose productivity has failed to meet minimum guidelines over a period of time. One of the values that would impact Abigail's decision is:

efficiency

Marcus was scheduled to attend a business conference on behalf of his employer. Before leaving for the conference, Marcus was given $500 out of petty cash for travel incidentals and meals. He did not, however, attend the conference and pocketed the $500. If Marcus' employer discovers this, Marcus will likely be charged with:

embezzlement

Since opening almost 30 years ago, Abigail's Restaurant has always closed on Christmas Day. This year, the new owner of the restaurant is considering opening on Christmas. The restaurant would not be violating any local or state laws in remaining open. In considering the decision, the stakeholders who would be most affected by the decision to remain open are the :

employees

A(n) ______ dilemma is one in which the right answer is not always clearcut.

ethical

The Golden Rule is an example of a(n):

ethical guideline

While ethical dilemmas sometimes have no clear cut right or wrong answer, the study of business ethics has generated certain schools of thought or ethical theories, many of which provide ______ in decision making.

guidelines

A co-worker who has to leave work early to deal with a personal matter asks that you complete some time-sensitive paperwork and turn it into your supervisor before leaving at the end of the day. You agree and urge your co-worker to leave in order to address his personal matter, assuring him it will be addressed. At the end of the day, you neglect to carry through on your promise and do not complete the paperwork. The next day, your supervisor chastises your co-worker, indicating that a reprimand will be placed in their personnel file because of the failure. Your co-worker does not disclose that you had promised to complete the work. Using the Golden Rule as a guideline, you should:

intervene and tell the supervisor you had assumed responsibility for the paperwork and forgot

Heading to the office break room for a cup of coffee, Mary absentmindedly forgets to put her iphone in the top desk drawer and lock it. While delivering office supplies, a co-worker removes the iphone from the desk and puts it in his pocket. Mary's co-worker has most likely committed:

larceny

Regardless of whether a particular course of action is ethical, at a bare minimum, a business decision should be:

legal

If a builder offers the local building inspector a discount on construction services while the builder's occupancy permit is still pending, the builder has committed:

public official bribery

The focus of the Golden Rule is considering how your behavior will affect:

others

The premise behind the ______ test is that ethics is hard work - labor that we might avoid if we did not have frequent reminders that we live in a community.

public disclosure

Jacob holds a baseball bat over Abigail's head and threatens to hit her unless she hands over her laptop computer. Jacob has committed the crime of:

robbery

Most states define ______ as the forceful and unlawful taking of personal property.

robbery

Wrongfully taking someone's property, with the use of force or fear, is referred to in most jurisdictions as:

robbery

According to economist Milton Friedman, the only group a business is responsible to is:

shareholders

In addition to employees, shareholders, and customers, businesses should also consider the effect decisions have on the community where the business is located. When the business considers the impact of its decisions on the community, it is being

socially responsible

Threatening your employer with a gun in order to get a raise would not be considered a white-collar crime because this conduct involves:

violence

A large construction company has purchased a piece of property in a small suburban community that values historic preservation. The piece of property contains buildings that have significant historic value to the town, however, the law does not provide any protection that requires preservation of the buildings. A socially responsible construction company would probably:

work with community leaders to find a compromise for use of the buildings, while preserving historic features.