chapter 4 ent
A recent survey found that ______ of executives had a code of conduct for their company. a. the majority c. 99% percent b. a minority d. 0%
A
A statement of ethical practices or guidelines to which an enterprise adheres is termed a(n) a. code of conduct. c. ethical practice statement. b. personnel guideline. d. moral principle.
A
Ethical business decisions often have ______ outcomes. a. mixed c. conceptual b. finite d. integrative
A
Ethical process and structure refers to _____ that are designed to avoid ambiguity. a. the procedures b. the codes c. the conscripts d. the interrelationships e. none of the above
A
For the entrepreneur the dilemma of _____ versus ethical is a vital one. a. legal c. relative b. conceptual d. acceptable
A
Instead of relying on a set of fixed ethical principles, it is important to develop a. an ethical process. c. a concerned process. b. a luxury process. d. a vacillating process.
A
Legal requirements as set by the law, often ______ acceptable moral standards of society. a. lag behind c. serve as guides for b. lead d. discourage
A
Qualities such as innovation have produced complex trade-offs between _____ and social welfare. a. economic profits c. government b. businesses d. firm's costs
A
The Greek word ethos means a. mode of conduct. c. elan. b. morale. d. esprit de corps.
A
The holistic approach is a. a dual-focused approach. c. a multi-faceted approach. b. a single-focused approach. d. an approach for holy people.
A
Today's entrepreneurs are faced with many ethical decisions, especially during the _____ stages of their new venture. a. early c. late b. middle d. closing
A
Unethical behavior takes place because of a. greed. c. strict management structure. b. tax laws. d. personality disorders.
A
A change in society may result in a change in a. Congress. c. the business cycle. b. values. d. consumer tastes.
B
A decision to sell toys that pass minimum safety standards but can often result in minor accidents to children is an example of a(n) a. illegal and ethical decision. c. illegal and unethical decision. b. legal and unethical decision. d. legal and ethical decision
B
A definition of ethics in such a rapidly changing environment must be based more on _____ than on a static code. a. rules c. deterministic rule b. a process d. policy
B
Business decisions are complex for all of the following reasons except a. ethical decisions have extended consequences. b. ethical decisions have certain ethical consequences. c. ethical business decisions often have mixed outcomes. d. ethical equations have multiple alternatives.
B
Entrepreneurs now view social/environmental issues as a. global competition. c. a minor concern. b. part of the future of business. d. affecting only certain industries.
B
Ethical consciousness is developed a. by your boss. b. by establishing codes of ethics for the company. c. by parents. d. by the government.
B
Improving the moral climate of the new venture a. wins the public's confidence c. boosts employee morale b. is good business d. boosts sales
B
In focusing on an ethical position for entrepreneurs, high moral standards should be viewed as a. stifling c. something to work on later b. good business d. fine as long as profits are protected
B
In the _____ sense, ethics provides the basic rules or parameters for conducting any activity in an "acceptable manner." a. abstract c. narrowest b. broadest d. most concrete
B
Many medical researchers believe that the sale of cigarettes is a(n) a. illegal and ethical decision. c. illegal and unethical decision. b. legal and unethical decision. d. legal and ethical decision.
B
Morally questionable acts committed against the firm are termed a. role distortion. c. role assertion. b. role failure. d. corruption
B
Morals and law are not synonymous but may be viewed as _____ circles that are partially superimposed upon each other. a. one c. three b. two d. four
B
One study developed a typology of morally questionable acts that included which of the following distinctions? a. non-role assertion c. role assertion b. role failure d. managerial changes
B
The consequences of ethical decisions may affect all of the following except a. financial opportunities. c. venture success. b. industry climate. d. new-product development
B
The requirements of law may overlap at times but they do not duplicate the moral standards of society because a. legal requirements tend to be negative. b. some laws have no moral content whatsoever. c. morality tends to be negative. d. the two have totally different objectives
B
The topic of ethics has been important in philosophical thought since the time of a. Virgo. c. Kennedy. b. Socrates. d. Schumpeter.
B
When establishing a strategy for ethical responsibility, entrepreneurs should examine the a. legal implications of unethical behavior. b. ethical process and structure of the venture. c. ways of avoiding detection of unethical behavior. d. prior ethical training employees have received.
B
Which of the following best describes immoral management in terms of ethical norms? a. Management is neither moral nor immoral, but decisions lie outside the sphere to which moral judgments apply. b. Management decisions are discordant with accepted ethical principles. c. Ethical leadership is commonplace on the part of management. d. Management may imply a lack of ethical perception and moral awareness.
B
Which of the following causes conflict over the ethical nature of decisions? a. the firm's costs c. government regulations b. society undergoing dramatic change d. public policy toward business
B
A decision to sell pharmaceuticals that have not been cleared with the Federal Drug Administration is an example of a(n) a. illegal and ethical decision. c. illegal and unethical decision. b. legal and unethical decision. d. legal and ethical decision.
C
Ethics represents a set of principles prescribing a behavioral code that explains what is a. good and right. c. both a and b. b. bad and wrong. d. profit maximization for the firm.
C
Morally questionable acts committed on behalf of the firm are termed a. non-role. c. role distortion. b. role failure. d. role change.
C
Moving from an immoral or amoral position to a moral position requires a great deal of _____ effort. a. attentive c. personal b. inactive d. group
C
Role failure acts are against the firm and involve a. not doing one's job c. accepting praise not deserved b. a person failing to fulfill a managerial role d. doing someone else's job
C
The dilemma of legal versus ethical is due to a. a lack of information on how the government works. b. misrepresentation of personal views. c. an imprecise judicial system. d. being a good citizen.
C
The most pro-active position for a corporation to take in regard to social responsibility would be termed a. social obligation. c. social responsiveness. b. social intensity. d. social decisiveness.
C
There are conflicting needs in the free enterprise system between a. honesty and social respect. c. generation of profits and integrity. b. jobs and efficiency. d. revenues and costs.
C
What is a holistic management approach? a. A triple-focused approach that includes "knowing how," "knowing that," and "knowing why." b. A technique used to set codes of conduct. c. An aesthetic, philosophical perspective, but the understanding of it reminds the administrator that there exist complementary forms of acquiring managerial knowledge. d. An approach that balances profit and ethical considerations.
C
Which of the following best describes the strategy of moral management? a. Exploit opportunities for corporate gain. c. Live by sound ethical standards. b. Give managers free rein. d. Forget profit.
C
Which of the following statements is one of the four rationalizations that managers use in justifying questionable conduct? a. The company will not condone it. b. It does not help the company. c. It is in the individual's or corporation's best interest. d. It will result in our losing money.
C
All of the following are managerial approaches to ethics except a. immoral. c. moral. b. amoral. d. quasi-moral.
D
During the 1990's, which new issue emerged as affecting entrepreneurs and ethics? a. misleading advertising c. favoritism in promotions. b. misleading financial reporting. d. the environment.
D
Legal behavior represents a. belief that an action is not actually illegal. b. belief that an action that aids the firm will be condoned. c. belief that the action is in the firm's best interest. d. none of the above.
D
Legal requirements tend to be ______; morality tends to be ______. a. positive because they regulate behavior; positive because it regulates morals b. positive because they regulate behavior; negative because it limits personal behavior c. Negative because they forbid certain acts; negative because it discourages certain acts d. negative because they forbid certain acts; positive because it encourages certain acts
D
One researcher established a framework that classified social actions of corporations into distinct categories that included a. social obligation. c. social action. b. social responsiveness. d. a and b only.
D
Price fixing is a form of a. maximizing sales revenue c. increasing demand b. beating the competition d. role assertion
D
Rationalizations for unethical behavior often appear _____ , given the behavior of many business enterprises today. a. logical c. trendy b. wrong d. realistic
D
What principle can be applied to the holistic approach? a. Set standards more than rules. b. Don't let yourself get isolated. c. Hire the right people. d. All the above can be applied to the holistic approach
D
"Ethos" means morality.
F
Entrepreneurs need not be concerned with establishing strategy for ethical responsibility because they are guided by what established firms do.
F
Ethics represents a set of principles prescribing a behavioral code that does not include moral duty and obligations.
F
Institutionalization is a deliberate step to incorporate the ethical objectives of society with the economic objectives of the venture.
F
Non-role acts are those acts against a firm in which the person fails to perform his or her managerial role.
F
Social responsibility consists of those obligations that society has to businesses.
F
The definition of ethics is "based on universal principles on which society agrees."
F
The most important principle for ethical management is setting standards more than rules.
F
Today's entrepreneurs are faced with few ethical decisions because the legal system imposes greater penalties on wrongdoers.
F
A code of conduct is a statement of ethical practices or guidelines to which an enterprise adheres.
T
An entrepreneur can never be certain what actual ethical consequences a decision will have.
T
Businesses face interest from both inside and outside their organizations that cause ethical conflict.
T
Ethics provides the basic rules or parameters for conducting any activity in an "acceptable" manner.
T
Firms need to be public about their ethical values and expectations.
T
Morals and law are not synonymous but may be viewed as two circles that are partially superimposed upon each other.
T
One of the most important principles for ethical management is to hire the right people.
T
One of the most important reasons firms want to adhere to a high moral code is that doing so protects free markets and is good business.
T
Problems can arise when people believe that laws represent morality.
T
Qualities such as innovation and risk-taking are qualities that have produced complex trade-offs between economic profits and social welfare.
T
Role distortion deals with morally questionable acts that are committed "for the firm."
T
Social obligation, social responsibility, and social responsiveness are all ways firms view their interactions with society.
T
Society operates in a dynamic and ever-changing environment making the definition of ethics fluid.
T
The Greek thinker, Chilon, felt that a merchant does better to take a loss than to make a dishonest profit.
T
The holistic management approach is an aesthetic, philosophical perspective, but the understanding of it "reminds the administrator that there exists complementary forms of acquiring managerial knowledge."
T
Venture success, financial opportunity, and new product development are all areas that may be impacted by decisions having ethical consequences.
T