Ethical issues in business final exam

Aristotle's formal principal of justice states,

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

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

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

According to Adam Smith, the division of labor decreases economic activity.

False

None of the specific measures proposed by Marx and Engels in the Communist Manifesto have been implemented in capitalist countries.

False

Organizational norms always and inevitably lead to groupthink.

False

Two libertarians their concept of liberty includes a commitment

Private property

Primary social goods include

Status

Which statement is accurate in its description of consumer protection?

The Consumer Product Safety Commission has the power to order recalls, public warnings, and refunds.

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

etiquette refers to any special code of social behavior or courtesy

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

expanded the liability of manufacturers for injuries caused by defective products.

According to Kant

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

One of the four key features of capitalism is

private property.

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.

According to W. D. Ross, we have immediate intuitive knowledge of the basic prima facie moral obligations/principles.

true

Karl Marx believed that

under capitalism workers are alienated in several ways.

Externalities are

unintended side-effects.

The courts and the general public find corporate responsibility

useful and intelligible.

The first corporations

were towns, universities, and ecclesiastic orders.

For philosophers, the most important issue is not where our moral principles came from, but:

whether those moral principles can be justified

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

"social contract".

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

Businesses have other obligations besides making a profit.

Choose the statement that is a true reflection of moral beliefs.

Bystander apathy appears to result in part from diffusion of responsibility.

What utilitarian identifies as rights are really

Certain moral rules

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

Civil War

The only accurate statement about consequentalism is:

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

The debate over corporate moral agency hinges on which question?

Corporate punishment

"Etiquette" designates a special realm of morality.

False

According to Immanuel Kant, moral reasoning is based on factual knowledge.

False

According to John Stuart Mill, what makes capitalism a desirable economic system is the type of worker-capitalist relationship inherent in capitalism.

False

According to Marx, the best economic system would be one where the means of production and distribution are in the hands of the bourgeoisie.

False

An argument is valid only if all its premises are true.

False

An individual does not have to follow the code of one's profession.

False

As a classical moral justification of capitalism, the natural right to property is a utilitarian justification.

False

Capitalism is possible without private property.

False

Enron executives acted wrongly simply because they broke the law.

False

If your conduct is legal, it will also be moral.

False

Immanuel Kant believed that it is only when we act out of feeling or sentiment that our actions have moral worth.

False

Rules of etiquette are always moral rules.

False

The paradox of hedonism (or the paradox of selfishness) is that people who are exclusively concerned with their own interests tend to have happier and more satisfying lives than those who are concerned about other people.

False

Which philosopher referred to a bureaucracy as "rule by nobody"?

Hannah Arendt

Which of the following is true regarding Immanuel Kant's beliefs?

He believed that reason by itself can reveal the basic principles of morality.

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

Holdings

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.

Nozicks Libertarian theory proposes

If a person comes into possession of a holding through a legitimate transfer, then,

The difference principle of Rawls includes

Individuals are justified are working for the benefit of the least advantaged

Eminent domain is the ancient right of government to take what from individual

Property

According to divine command theory, if stealing is wrong then it is wrong because:

Stealing is wrong only because God commands us not to steal.

The media with the greatest advertising influence over children is

TV

Which statement is true from an ethical perspective?

The argument for strict liability is basically utilitarian.

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.

Our relationship with the law is best described by which of the following?

To a significant extent, law codifies a society's customs, norms, and moral values.

"Limited liability" means that members of a corporation are financially liable for corporate debts only up to the extent of their investments.

True

According to Adam Smith, individuals have natural endowments that should determine the kind of work they do.

True

According to Jeremy Bentham and John Stuart Mill, pleasure is the one thing that is intrinsically good or worthwhile.

True

According to Milton Friedman, business has no social responsibilities other than to maximize profits.

True

According to Robert Nosick the basic moral rights possessed by all human beings are both negative and natural

True

According to Tom Regan, our considered moral beliefs are those we hold only after we have made a conscientious effort (a) to attain maximum conceptual clarity, (b) to acquire all relevant information, (c) to think about the belief and its implications rationally, (d) impartially, and with the benefit of reflection, (e) coolly.

True

According to divine command theory, if something is wrong, then the only reason it is wrong is that God commands us not to do it.

True

Adherents of the broad view of corporate responsibility claim that modern business is intimately integrated with the rest of society and that, as a result, although society expects business to pursue its economic interests, business has other responsibilities as well.

True

An argument is a group of statements, one of which is claimed to follow from the others.

True

An organization is a group of people working together to achieve a common purpose.

True

Business ethics is the study of what constitutes right and wrong, or good and bad, human conduct in a business context.

True

Bystander apathy appears to result in part from diffusion of responsibility.

True

Ethical relativism is the theory that what is right is determined by what a culture or society says is right.

True

For philosophers, the important question is not how we come to have the particular moral principles we have, but whether we can justify them.

True

Implicit in capitalism is the view that human beings aim to maximize their economic self-interest.

True

John Rawls justice states that in so far as inequalities are permitted that is in so far as it is compatible with Justice for some jobs or positions to bring greater rewards than others these positions must be open to all

True

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

True

Most people don't distinguish between a person's "morals" and his or her "ethics."

True

One feature about utilitarianism that makes it appealing as a standard for moral decisions in business and nonbusiness organizations is that it provides a clear and straightforward basis for formulating and testing policies.

True

One of the major characteristics of an organization is the shared acceptance of organizational rules by its members.

True

The connection between rights and duties is that, generally speaking, if you have a right to do something, then someone else has a correlative duty to act in a certain way.

True

The phrase the declining marginal utility of money means that successive additions to one's income produced on average less happiness or welfare then did early relations

True

Utilitarians reject the very idea of a natural right to property.

True

Worker control socialism is a hybrid economic system with no marketplace and no profits.

True

Utilitarianism is appealing as a standard for moral decision making in business. Which of the following provides a reason for this?

Utilitarianism provides an objective way of resolving conflicts of self-interest

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

Utilitarians

Milton Friedman argues that

a business has no social responsibilities other than to maximize profits.

If you want to go to law school, then you must take the LSAT exam." This statement is an example of

a hypothetical imperative.

According to the legal doctrine of strict product liability,

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

Critics of advertising contend that

advertising rarely gives consumers much useful information.

Proper logic states

all sound arguments are valid arguments.

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

an invisible hand to promote general good.

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

away from the reasonable-person standard

Morality and self-interest

can sometimes conflict.

Marxism states

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

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

concealment of facts.

According to Galbraith's "dependence effect",

consumer demand tends to be shaped by the production process.

The best statement to describe corporations is

corporate culture can be both explicit and implicit.

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

designing effective regulations is difficult.

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

employees.

Kenneth Arrow argues that

ethical codes can contribute to economic efficiency.

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

express and implied

Accepting a moral principle

generally involves a desire to follow that principle for its own sake

Capitalism operates on the debatable assumption that human beings find increased well-being through

greater material consumption

To properly protect consumers,

if a product poses a potential, serious threat, a company may need to take extraordinary measures to ensure continued safe use of it.

A tangible truth about having moral principles is

if you do the right thing only because you think it will pay off, you're not really motivated by moral concerns.

According to act utilitarianism, an action is morally right if and only if

it maximizes total, net happiness.

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

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

make money for its owners.

Legal paternalism is the doctrine that the law

may justifiably be used to restrict the freedom of individuals for their own good.

The profit motive

must be checked by competition if society is to benefit.

A common point of contention about corporations is

philosophers and business theorists disagree whether corporations are moral agents.

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

promote open and free competition.

The terms "best, finest, and most" are examples of

puffery.

According to mills utilitarianism

rights are certain moral rules, the observance of which is of the upmost importance for the long run, overall maximization of happiness

In the corporate world, the board of directors will

rubber stamp the policies and recommendations of the management.

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

self-interest

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

social responsibility.

Consequentialism

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

Advertising

subsidizes the media

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

the "modified" gullible-consumer standard

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 contractual relationship between the producer and the consumer

Evidence for the idea that American manufacturing is declining is

the fact that government now employs more people than manufacturing.

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.

The consumer's main source of product information is

the label and package.

Though many jobs are outsourced, most economists believe

. the economy will create new jobs

For the first time since the Industrial Revolution, less than _____ percent of the American workforce was employed by manufacturing.

10

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 considerations about utilitarism is correct?

Bentham was concerned with the quantity of pleasure that an action produces, not with distinctions based on the type of the pleasure.

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

Consumer Product Safety Commission.

According to Adam Smith, if business is left to pursue its self-interest, the good of society will be compromised and harmed.

False

Which of the following accurately describes Ross' prima facie duties?

Intuitively compelling moral demands that are binding unless they conflict with equal or stronger moral

Rawls reject utilitarianism because

It might permit and unfair distribution of burdens and benefits

Which philosopher referred to a bureaucracy as "a circle from which no one can escape" ?

Karl Marx

Which of the following accurately reflects the concept of Marxism?

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

In anarchy, state and Utopia Robert Nosick advocates

Libertarianism

I Nosicks example of Wilt Chamberlin, he argues that the other theories of economic justice inevitably fail to respect peoples

Liberty

Rather than strong work ethic, a more commonly seen role is:

Me - first

Moral attitudes are best depicted by which of the following?

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

Which statement is true concerning moral principles and self interests?

Morality serves to restrain our purely self-interested desires so that we can all live together.

Which of the following is an example of price gouging?

New York hotel tripling its room prices after 9/11

According to John Rawls

People in the original position chose the principal on the basis of self interest

The benefits within moral standards are best seen in which statement?

Professional codes are the rules that are supposed to govern the conduct of members of a given profession.

According to Locke

Property is a moral right

john rawls theory of justice lays within which tyoe of tradition

Social contract

The Supreme Court game decision-making power for eminent domain to the

State and local communities

Terms like "can be," "as much as," and "help," are examples of

ambiguity.

Good moral judgments should be logical and

based on facts and acceptable moral principles.

The authors use the murder of Kitty Genovese to illustrate

bystander apathy.

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.

Which of the following consumer goods is responsible for the greatest number of individual social ills?

cigarettes

Which of the following is an accurate statement?

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.

Corporations are limited-liability companies which means that

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

Harvard business professor Theodore Levitt has

drawn an analogy between advertising and art.

The famous experiments by social psychologist Solomon Asch show

even temporary groups can pressure people to conform.

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

exaggeration

The narrow view of corporate social responsibility argues companies must make money within the "rules of the game" which rules out all of the following except for:

harm.

The view of ignorance demands people in the original position

impartial

many utilitarians would agree

increased worker participation in industrial life is beneficial

If an argument is valid, then

its conclusion must be true, if its premises are.

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

meaningless to them

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

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

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

outsource and likely produce only the package and the label .

In Citizens United v. Federal Election Commission, the U.S. Supreme Court ruling included

support for corporations' First Amendment right to participate in the political process

When religion and morality are considered:

the moral instructions of the world's great religions are often general and imprecise.

Advertising is best known for

the persuasion to purchase the product.

Philosophical discussion of moral issues typically involves

the revision and modification of arguments.

Our conscience evolved as we internalized the moral instructions of the parents or other authority figures who raised us as children.

true

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

When ethical relativism is put into practice, it implies that

we cannot say that slavery is wrong if the society in question believes it is right.

The example of Huckleberry Finn shows

we shouldn't rely uncritically on what our conscience says.

Ethical relativism supports the theory that:

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

f you adopt egoism as your moral code, then

you believe that it is morally right to do whatever promotes your best interest.