Exam Two Business 110
According to Shaw and Barry, utilitarians
should include nonhuman animal pleasures and pains in the overall utilitarian calculus.
Aristotle's formal principle of justice states
similar cases must be treated alike except where there is some relevant difference
Melvin Anshen suggests that there is a relationship between business and society which he termed as
social contract
According to Holmes Rolston III
some natural objects are morally considerable in their own right, apart from human interests
Primary social goods include
status
Advertising
subsidizes the media
The "tragedy of the commons" is
that individual pursuit of self-interest can sometimes make everyone worse of
In consideration for the obligation to others
the US uses more than its proportional share of the world's resources.*
Evidence for the idea that American manufacturing is declining is
the fact that government now employs more people than manufacturing
According to the philosopher Joel Feinberg,
the rights of future generations are contingent upon those people coming into existence
Which of the following is true of factory farms
they permit the mass production of meat at low prices.
The veil of ignorance proposes that
those in the original position are supposed to choose principles on the basis of self interest, agreement seems unlikely
Who is more likely to be sympathetic with the idea of reducing the disparities of income in society
utilitarians
A basic of Adam Smith's invisible hand argument is
we often get what we want from other by offering something they need from us
The first corporations
were towns, universities, and ecclesiastic orders.
John Rawls' theory of justice lays within which type of tradition
All for one and one for all
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 statement best describes capitalism
Capitalism is an economic system that operates under the profit motive
Momentum for the corporate organization of business really gained momentum after which war?
Civil War
One of the key features of capitalism is
Competition
For years Bayer aspirin advertised that it contained "the ingredient doctors recommend most." This is an example of
Concealed facts
Milton Snoeyenbos argues that
Corporate moral codes can make it more reasonable to expect employees to behave ethically.
The debate over corporate moral agency hinges on which issue
Corporate punishment
Talk of justice and injustice appeals to the related notions of
Fairness, equality, desert
In Anarchy, State and Utopia, Robert Nozick advocated
Libertarianism
Which of the following is an example of price gouging
New York hotels that doubled or tripled their prices in the aftermath of the September 11, 2001, attacks.
According to John Rawls, people in the original position choose the principles of justice on the basis of
Self interest
Those with a broader view concerning business obligations believe that with power comes
Social responsability
Which statement is accurate in its description of consumer protection
The Consumer Product Safety Commission has the power to order recalls
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.
Which environmental statement is true
Tropical forests are earths richest, oldest and most complex ecosystems.
Milton Friedman argues that
a business's only social responsibility is to maximize profits within the rules of the game
Critics of advertising generally agree that
advertising rarely gives consumers much useful information.
Adam Smith proposed that in our pursuit of economic interests we are led by
an invisible hand to promote general good
Some critics of capitalism believe that it rests on a flawed view of human beings because
capitalism assumes that well being comes from greater material consumption
Marxism states
capitalism leads to a concentration of property and thus a concentration of resources and power in relatively few hands.
Karl Max believed that
capitalist workers suffer from alienation
The best statement concerning corporations is
corporate culture can be both explicit and implicit.
The statement that accurately describes corporations is
corporate shareholders have limited liability for their debts
Harvard business professor Theodore Levitt has
drawn an analogy between advertising and art.
Most Americans believe a corporation's top obligation is to its
employees
"Puffery" is an example of which of the following deceptive or misleading advertising techniques
exaggeration
People generally speak of two kinds of warranties. What are these two kinds of warranties
express and implied
The veil of ignorance assures us that people in the original position will be
impartial
The difference principle of Rawls states
inequalities are only justified if they benefit the least advanged
animal manure
is a large source of pollution.
According to Libertarianism
it would be unjust to coerce people to give food or money to the starving
Caveat emptor means
let the buyer beware
Which of the following is one of the three arguments in favor of narrow corporate social responsibility discussed in Chapter 5?
let-government-do-it
Legal paternalism is the doctrine that the law
may justifiably restrict the freedom of the individual for his or her own good.
Which of the following historical stages of capitalism came first
mercantile
Every year ____ of Americans require medical treatment from product related accidents
millions
A common point of contention about corporations is
philosophers and business theorists disagree whether corporations are moral agents
Which of the following is true concerning our environment today
polluted air is a health risk
The "rules of the game" for corporate work are intended to
promote open and free competition
For the first time since the industrial Revolution, less than percent of the American workforce was
10
Which of the following do advocates of the broader view of corporate social responsibility believe
Corporations have moral obligations to consumers, to employees, to suppliers and contractors, to the surrounding community, and to society at large.
Which statement is true from an ethical perspective
The argument for strict liability is basically utilitarian
If libertarianism is true, which of these statements is true
We should have a night watchman state
In deciding whether an ad is deceptive, today the FTC basically follows
a "modified" ignorant-consumer standard
An ecosystem
can be upset by human behavior
A basic tenet of capitalism is that
capitalism requires private ownership of the major means of production.
The philosopher Tom Regan
claims that no impartial morally sensitive person could approve of the treatment of animals in factory farms if he or she knew what was going on
The moral theorist William T. Blackstone claims that the right to a livable environment
is a fundamental human right
The idea that corporations are moral agents
is accepted by many people and companies without hesitation
Some environmental regulations (like forbidding the burning of coal in cities) benefit each and every one of us because the air we all breather is cleaner. If an individual ignores the regulation and burns coal, while others obey the regulation, then he or she
is being a free rider
William F. Baxter addresses environmental ethics by noting
judgments about environmental problems ought to be people-oriented
Milton Friedman's perspective is that the only social responsibility of a business is to
make money for its owners
According to the legal doctrine of strict product liability
manufacturer need not be negligent to be held liable for a defective product
For employees who are paid handsomely for their efforts, Marx said their work would ultimately prove to be
meaningless to them
One truth about factory farms is
most animals we eat are from them
The profit motive
must be checked by competition if society is to benefit
From John Stuart Mill's viewpoint
not every issue of social utility was a matter of justice
According to John Rawls
people in the original position choose the principles on the basis of self-interest
The case of MacPherson v. Buick Motor Car in 1916 changed product liability law. As a result of it, the courts
permitted consumers to sue manufacturers with whom they had no contractual relationships
"Pollution permits" are an example of which of the following methods of achieving our environmental goals
pricing mechanisms
According to Galbraith's "dependence effect,"
producers use advertising to shape consumer wants.
In association with labor and capital, Mill had contrasting views of
profit sharing
Some argue for the narrow view of corporate social responsibility on the ground that managers have a fiduciary responsibility to maximize the profits of their shareholders. As discussed in Chapter 5, one problem with this argument is that
promises don't override all our other obligations
According to Locke
property is a moral right
The concept of the invisible hand meas
pursuit of private gain will bring the best overall results
According to Mill's utilitarianism
rights are certain moral rules whose observance is of the utmost importance for the long-run, overall maximization of happiness.
In the corporate world, the board of directors will typically
rubber stamp the policies and recommendations of the management
Mill justified utilitarianism from rival perspectives when he argued
that without utilitarianism to provide a determinate standard of justice, one is always left with a plethora of competing principles of justice, all of which seem to have plausibility but are mutual incompatible
According to the anthropocentric (or human-oriented) ethic of Baxter and others,
the Grand Canyon is valuable only because people care about it
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 direct contractual relationship between the producer and the consumer
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.
An exclusive focus on short term performance
has helped to create a high-pressure environment conducive to fraud
Which of the following is an accurate statement
A 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
An assessment of work in America is
American manufacturing is growing faster than ever
In 1972 Congress created one of the most important agencies for regulating product safety. This agency is the
Consumer Product Safety Commission
which statement accurately describes capitalism
In state welfare capitalism the government plays an active role in regulating economic activities in an effort to smooth out the boom and bust pattern of the business cycle
Which of the following is true of a regulatory approach to environmental problems
It requires the EPA or other body to determine the most effective, feasible pollutioncontrol technology for each different industry.
which of the following accurately reflects the concept of Marxism
Labor is alienated in a capitalist economic system because the labor of worker stands opposed to the worker as an autonomous power
Externalities are
Unintended Side-Effects
In Citizens United v. Federal Elections Commission, the U.S. Supreme Court
defended the first Amendment right of corporations to spend money to support political candidates they favor
One of the three important "limits to what the law can do" discussed by Christopher Stone is
designing effective regulations is difficult.
The first principle of Nozick's entitlement theory concerns the original acquisition of
goods, money, and property
Concerning future generations,
the social and environmental policies we adopt can affect who is born in the future
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
The case of FTC v. Standard Education was important in the legal transition
toward something like the ignorant consumer standard.
cost-benefit analysis
values costs over benefits.
one reason for believing that in practice capitalism fails to live up to its own ideal of competition is
we have government subsidies and protective tariffs
