Moral Issues Exam 2
Advertising is best known for
the persuasion to purchase the product
Socialism is an economic system characterized by public ownership of property and a planned economy
true
Karl Marx believed that
under capitalism workers are alienated in several ways
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
Which of the following do proponents of the broader view of corporate social responsibility believe?
Businesses have other obligations besides making a profit
Which statement best describes capitalism
Capitalism is an economic system that operates under the profit motive.
Which of the following consumer goods is responsible for the greatest number of individual social ills?
Cigarettes
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
Regulation is always the most effective way to allocate the costs of environmental protection
False
What society finds to be useful and desirable is always brings profitability to companies.
False
"Limited liability" means that members of a corporation are financially liable for corporate debts only up to the extent of their investments
True
Defenders of advertising claim that, despite criticisms, advertising enjoys protection under the first Amendment as a form of speech
True
Legally a corporation is a thing that can endure beyond the natural lives of its members and that has incorporators who may sue and be sued as a unit and who are able to consign part of their property to the corporation for ventures of limited liability.
True
Outsourcing is a practice where companies buy parts or whole products from other producers
True
Statistics indicate that the faith consumers place in manufacturers is often misplaced.
True
The idea that corporations will impose their values on us supports one of the arguments for the narrow view of corporate social responsibility.
True
Which of the following is an example of price gouging?
a New York hotel tripling its room prices after 9/11
For years, Bayer aspirin advertised that it contained "the ingredient doctors recommend most." This is an example of
concealment of facts
The best statement to describe corporations is
corporate culture can be both explicit and implicit
Corporations are limited-liability companies which means that
corporate shareholders are liable for corporate debts only up to the extent of their investments
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
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
Business must be sensitive to its impacts on the physical environment primarily because of the
interdependence of an ecosystem's elements
The term ecology refers to the science of the
interrelationships among organisms and their environments
Cost-benefit analysis
involves value judgments and factual uncertainties
Legal paternalism is the doctrine that the law
may justifiably be used to restrict the freedom of individuals for their own good
Which of the following historical stages of capitalism came first?
mercantile
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
One of the four key features of capitalism is
private property
Which of the following is a drawback to the regulatory approach?
regulation can take away an industry's incentive to do more than the minimum
In the corporate world, the board of directors will
rubber stamp the policies and recommendations of the management
Advertising
subsidizes the media
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
The "tragedy of the commons" is
that individual pursuit of self-interest can sometimes make everyone worse off
