business law ch. 3

Ethics focuses on how persons making business decisions apply

moral principles.

An overemphasis on long-run profit maximization is a common reason for ethical problems that occur in business.

False

Conduct that is legal is ethically unquestionable.

False

Once a company has investigated any foreign suppliers, it is unnecessary to continue to monitor those suppliers.

False

The study of ethics goes no further than the requirements of the law to evaluate what is right for society.

False

Corporate social responsibility may increase a business's reputation or goodwill.

True

Ethical decision makers should test and reflect on the outcome of their decisions.

True

It can be difficult to predict with certainty how a court will apply a given law to a particular action.

True

One of the most important ways to maintain an ethical workplace is for management to set standards and expectations for ethical behavior.

True

One view of the role of business in society is the perceived duty of a company only to generate revenue for its owners.

True

The effectiveness of an industry code of ethics is partly determined by the commitment of the industry or company leadership to enforce it.

True

Business ethics looks at whether business decisions

are right or wrong.

Cloud Source LLC sells to Distribution Inc. a promising idea for a technological innovation that looks promising but that is still being developed. This is

ethical and legal.

If a company strictly complies with existing laws, the firm will

fulfill some business ethics obligations.

According to the theory of corporate social responsibility, any decision by corporate management should consider how an action affects the firm's

officers, shareholders, suppliers, customers, and community.

Ethical issues that a business manager is not likely to encounter include

protocols for company meetings.