Chapter 3- Business Ethics, Social Forces, and the Law
D
Among the guidelines for balancing the interests of various stakeholders to resolve ethical dilemmas in business are: a. identify potential parties who could be injured by the proposed action. d. define problems from both the decision maker's and opposing viewpoints. c. ask whether you would be willing to describe a proposed action to your family, the board of directors, a congressional hearing, or other public forum. d. all of the above.
C
Companies with 100 years of consistent dividends: a. use positive laws as a guide for ethical decisions. b. have a goal of profitability no matter what the cost. c. have a strong commitment to values. d. all of the above.
A
Immanuel Kant's categorical imperative theory: a. requires that we avoid one-sided benefits as a result of ethical decisions. b. makes it easier to settle international business ethical decisions. c. believes you have to be fair and ethical whether you want to be or not. d. all of the above.
A
Laws that prohibit defamation, invasions of privacy, and reputation exist primarily: a. for protection of the person. b. for protection of public health, safety, and morals. c. for protection of property. d. for protection of the state.
B
Laws that prohibit mislabeling of food, speeding, and sale of alcohol to minors exist primarily: a. for the protection of the person. b. for protection of public health, safety, and morals. c. for the protection of property. d. for the protection of the state.
C
Laws that prohibit theft, operation of a factory in areas zoned residential, and copyright infringement exist primarily: a. for the protection of the person. b. for protection of public health, safety, and morals. c. for the protection of property. d. for the protection of the state.
A
Positive law: a. is enacted by government authority. b. ensures that business will follow a high level of ethical standards. c. is also known as natural law. d. all of the above.
D
Rights Theory: a. is also known as an entitlement theory. b. states that everyone has a set of rights. c. believes that it is the government's responsibility to protect our rights. d. all of the above.
True
T/F: An accumulation of complaints from employees, customers, or investors can lead to imposition of restrictive new regulations and laws.
True
T/F: Civil disobedience is the remedy natural proponents use to change positive law.
False
T/F: Courts look at each case at a given point in time and are not concerned with former cases and rulings when making current decisions.
True
T/F: Credit laws and laws regarding checks, notes and drafts were developed to help facilitate trade.
False
T/F: Despite the importance of ethical behavior for business success, few Fortune 500 companies have codes of ethics to resolve ethical dilemmas.
False
T/F: Differences among businesses preclude the development of any universal categories of ethical behavior.
False
T/F: Ethical egoism believes that feeling guilty about poor ethical decisions will lead to better future decisions.
True
T/F: Ethical violations can cause lasting detriment to a company's ability to do business through impacts on the company's reputation.
True
T/F: Ethics is a philosophical concept that deals with values related to the nature of human conduct.
True
T/F: Federal laws on the disclosure in the sales of securities and shareholder relations were developed following the stock market crash of 1929.
True
T/F: Freedom from economic domination is a personal right protected under United Sates law.
True
T/F: In addition to issues of social responsibility, business values and ethics play an important role in the success or failure of a business.
False
T/F: In applying the stakeholder model of business ethics, only the interests of important constituencies affected by an action need to be satisfied.
False
T/F: Individual intentions, as expressed in contracts and wills, will not be given effect in the United States unless expressly authorized by law.
False
T/F: Kant's theory understood that sometimes you have to use someone to achieve a one-sided benefit.
True
T/F: Maintaining confidentiality is an ethical issue for both employees and company management.
True
T/F: Moral relativists believe that ethical decisions will differ based on circumstances.
True
T/F: Moral standards based on positive law may allow businesses to conduct themselves unfairly so long as their actions are not illegal.
False
T/F: Mortgages, security interests, and surety relationships are legal mechanism created primarily to promote stability and flexibility in trade.
True
T/F: Over half of all Fortune 500 firms train their employees to recognize and deal with particular types of behavior that breach ethical codes.
False
T/F: Recognizing that an ethical dilemma exists is usually far more difficult than resolving the dilemma once it is recognized.
False
T/F: The field of business ethics recognizes that social values typically yield to the profitability motive.
True
T/F: The often competing rights of both debtors and creditors are balanced and protected from excesses under United States law.
True
T/F: The theory of justice is based on the concept that if there were no laws or rules reasonable people would develop fair rules and standards.
True
T/F: There is often a conflict between the goal of making money for shareholders and the goal of solving social problems through business.
True
T/F: Trust is a fundamental basis of the capitalist system that is central to the expectations of investors, customers, and other firm stakeholders.
False
T/F: Under United States law, the legal owner (titleholder) of property is free to engage in any use of the property that her or she may desire.
False
T/F: Unfortunately, there is no evidence that commitment to ethical values is linked with financial performance of business organizations.
False
T/F: United Sates common law requires that case precedents be followed under all circumstances.
False
T/F: Unwillingness of businesses to voluntarily improve the ethics of their practices has little practical effect on the regulatory environment.
C
The U.S. Patriot act and airport security regulations were enacted for the protection of: a. the person. b. public, health, safety and morals. c. the state. d. personal rights.
B
The Utilitarian Theory: a. holds that we all act in our own self-interest. b. is based on doing the most good for most people. c. resolves ethical dilemmas according to time and place. d. believes that solving ethical dilemmas requires training.
D
The ethical category of integrity and truthfulness is best expressed as maintaining one's values and principles: a. so long as profits can be maintained. b. so long as the costs are not great. c. unless deviating will go unnoticed. d. despite the consequences.
A
The importance of trust as a fundamental principle underlying business transactions is illustrated by expectations that: a. investors will be able to earn a return on their investments. b. employees may be discharged at any time for any reason without notice. c. litigation is inevitable because parties to agreements usually break promises. d. more common
B
The passage of federal securities disclosure laws occurred largely as the result of: a. voluntarily self-regulation by ethics experts in the securities industry. b. the stock market crash of 1929. c. changes in the international market for securities and negotiable instruments. d. all of the above.
B
Voluntary improvements in the fairness and ethics of business behavior are: a. less effective than those brought about by the government regulation. b. less costly and intrusive than those brought about by government regulation. c. virtually nonexistent in corporate America. d. more common in third-world countries than in the United States.
