Chapter 2

In a business organization, an ethics officer is an individual who _____. A. listens to complaints of ethics violations B. suspends and penalizes the violators of ethics C.criticizes the existing ethical values of the organization D. recruits candidates who have high ethical standards for the organization

A.

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

Morality

Many laws don't address ethical concerns.

True

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

True

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

True

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

True Reason: This is true. A serious ethical problem arises from economic interdependence and the modern corporation. The problem with economic interdependence is that stakeholders, and not corporate leaders, are the real owners of corporations.

A dominant form of consequentialism that judges actions by whether they serve to increase the common good is known as _____. Multiple choice question. a. utilitarianism b. the social contract theory c. the categorical imperative d. formalism

a.

In many codes of business ethics, applied examples address specific types of business conduct, while general statements of shared ethical values _____. Multiple choice question. a. remind employees what their companies stand for b. include examples for ethical behavior like those listed by the Business Roundtable c. elaborate the ethical guidelines for situations covered by the applied examples d. enlist the types of business decisions that do not require ethical deliberation

a.

It is not considered sufficiently responsible for businesses to merely observe the law because _____. Multiple choice question. a. legal regulation is inadequately informed to be the only social guide for business decision making b. laws that are based on ethical principles or guidelines cannot be held in court c. legal regulation is too flexible and does not define a fixed code of conduct for businesses to follow d. laws have no basis in ethical principles or guidelines

a.

What is the impact of lack of openness in communication among individuals in business corporations? Multiple choice question. a. Ethical decision making is hindered. b. Promotion of trust occurs. c. Corporate resources are controlled by shareholders. d. Formation of large groups takes place.

a.

Select all that apply Identify the true statements about shared moral values. (Check all that apply.) Multiple select question. a They limit appropriate behavior. b. They are a significant means of social control. c. They lead people to trust and accept others. d. They hinder social cooperation. e. They create social harmony.

b, c, e

Companies that are perceived as acting in an ethically responsible manner can _____. Multiple choice question. a. encourage governmental regulation b. attract loyal employees, investors, and customers c. limit further self-regulation d. overrule federal sentencing guidelines

b.

Consequentialism is a principal system of ethics that _____. Multiple choice question. a. focuses on the worth of the individual b. focuses on the common good c. is concerned with the morality of actions d. is based on duty

b.

Due care in one's behavior is a major ethical principle that can be drawn from the law. It derives from _____. Multiple choice question. a. an individual's desires about what he or she wants to achieve b. society's expectations about how fair and reasonable actions are c. legal rules that are independent of moral systems and principles d. ethical rules that exempt individuals from responsibility for their own actions

b.

Due care in one's behavior is a major ethical principle that can be drawn from the law. It derives from _____. Multiple choice question. a. legal rules that are independent of moral systems and principles b. society's expectations about how fair and reasonable actions are c. an individual's desires about what he or she wants to achieve d. ethical rules that exempt individuals from responsibility for their own actions

b.

Identify a statement that is synonymous with the principles of utilitarianism. Multiple choice question. a. One should act with a good intent in order to be ethical. b. The end justifies the means. c. A particular act is in itself right or wrong, always and in every situation. d. One should focus on the worth of the individual.

b.

Identify a true statement about the systems of ethics known as formalism and consequentialism. Multiple choice question. a. They have little to no impact on theories about morality in Western civilization. b. They begin from different assumptions. c. They cannot be used together while making ethical choices. d. They are mutually exclusive in their outcomes.

b.

Select all that apply What are the impacts of the decline of the Protestant ethic on the modern business corporation? (Check all that apply.) Multiple select question. a. How a profit is made becomes more important than the way in which it is made. b. Emphasis on corporate profit alone sometimes conflicts with ethical responsibility. c. The responsibility for profit making is centralized. d. How a profit is made becomes less important than that it is made.

b.

The ultimate source of ethical values for decision making in business comes from the _____. Multiple choice question. a. government b. individual c. colleagues of an employee d. ethical policies of an organization

b.

In a business organization, an ethics officer is an individual who _____. Multiple choice question. a. suspends and penalizes the violators of ethics b. recruits candidates who have high ethical standards for the organization c. criticizes the existing ethical values of the organization d. listens to complaints of ethics violations

d.

The collection of values that guide human behavior is known as _____. Multiple choice question. a. logic b. stimulus c. custom d. morality

d.

_____ is the principal element that triggers liability against a defendant in negligence law. Multiple choice question. a. Failure to demonstrate good faith in one's transactions b. Failure to honor confidentiality c. Failure to respect the liberty of others d. Failure to exercise due care in one's behavior

d.

_____ is the principal element that triggers liability against a defendant in negligence law. Multiple choice question. a. Failure to respect the liberty of others b. Failure to honor confidentiality c. Failure to demonstrate good faith in one's transactions d. Failure to exercise due care in one's behavior

d.

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

False

An ethical problem that can arise from the modern corporation and economic interdependence is that _____. A. stockholders are not the real owners of corporations B. managers can manipulate corporate actions for their own benefit C. corporate executives can own significant stock percentages of large companies D. corporate leaders are the real owners of corporations

C.

Companies that are perceived as acting in an ethically responsible manner can _____. A. limit further self-regulation B. overrule federal sentencing guidelines C. attract loyal employees, investors, and customers D. encourage governmental regulation

C.

___________ 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

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

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

General statements of shared __________ remind employees what their companies stand for and at the same time serve to encourage ethical behavior in situations not covered by specific ethical guides.

Values

Select all that apply Identify the characteristics of the system of ethics known as formalism. (Check all that apply.) Multiple select question. a. It affirms an absolute morality. b. It judges actions by their usefulness. c. It focuses on the worth of the individual. d. It views morality as relative to a situation.

a, c

Select all that apply Identify the effects of profit making in a modern business corporation. (Check all that apply.) Multiple select question. a. Promotion of the common good b. Dismissal of more employees c. Decline of the Protestant ethic d. Motivation of the economic system

a, d

Which of the following is a difference between ethics and law? Multiple choice question. a. Ethical systems are enforced through civil and criminal sanctions, while legal systems are not. b. The motivation to observe ethical rules comes in the form of state sanctions, while the motivation to observe the law does not come from enforcement. c. The legal system is an institution of the state, while ethical systems are not. d. The motivation to observe the law comes from within the individual, while the motivation to observe ethical rules comes from outside the individual.

c

______ is necessary for ethical corporate decision making because of the complexity of information required to evaluate the implications of many business decisions. Multiple choice question. a. Emphasis on profit b. The existence of large groups c. Openness in communication d. The control of resources by nonowners

c

Select all that apply Identify the meanings of good faith according to the Uniform Commercial Code. (Check all that apply.) Multiple select question. a. Judgment of action b. Conflict of mutual interest c. Honesty in intent d. Honesty in fact

c, d

Select all that apply Identify the roles of ethics officers in business organizations. (Check all that apply.) Multiple select question. a. They recruit candidates with high ethical values for organizations. b. They mete out harsh punishments to the violators of ethical codes. c. They investigate abuses of ethical values. d. They develop ethics policies.

c, d

A dominant form of consequentialism that judges actions by whether they serve to increase the common good is known as _____. Multiple choice question. a. the categorical imperative b. the social contract theory c. utilitarianism d. formalism

c.

Which of the following statements is true of the system of ethics known as formalism? Multiple choice question. a. It is primarily a utilitarian view of ethics. b. It is concerned with the moral consequences of actions. c. It is primarily a duty-based view of ethics. d. It is concerned with the common good.

c.

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

consequentialism

A characteristic of the codes of ethics for accountants and marketers is that _____. Multiple choice question. a. they cannot be appropriately termed self-regulation by marketing or accounting organizations b. the state enforces them c. they can be aptly called law d. each code comprises many rules that apply to specific situations arising in the marketer-client and accountant-client relationship

d.