Deck 5: Business Planning: Whats Your Legal Form and Strategy

Question 1

We should be honest because honesty is ethical and dishonesty is unethical behavior.

Answer 1

True

Question 2

"Do unto others as you would have them do unto you" is known as __________.

A)correct moral level
B)affirmative action
C)disclosure
D)the path to ethical righteousness
E)the Golden Rule

Answer 2

E

Question 3

_________ means standards of human decency govern right and wrong behavior.

A)Deontology
B)Numerology
C)Ethical deployment
D)Generalization
E)Teleology

Answer 3

A

Question 4

Which of the following is not true regarding managerial ethics?

A)Most professional associations in the functional areas of business have codes of ethics.
B)Most large corporations have developed written codes of ethics.
C)In codes of conduct, some companies have developed warning signs of unethical behavior.
D)Managing ethics provides a form of self-regulation that can lead to less government regulation.
E)Managers usually ignore codes of conduct and ethics policies.

Question 5

Which statement best describes how the 5 I's strategic analysis includes the stakeholder approach and ethics?

A)When making decisions on how to deal with issues, interested stakeholders and their incentives are identifies by ethical managers.
B)Alternative strategies are generated and evaluated by ethical managers.
C)Each alternative is assessed for the consequences to strategic stakeholders using a cost vs. benefit analysis in both the market and nonmarket environment.
D)Each alternative strategy must pass the test of being legal and ethical to be selected and implemented.
E)These would all be good descriptions.

Question 6

Which of the following would be considered external pressure or cross-cultural inconsistency?

A)Stakeholder satisfaction
B)Peer pressure
C)Penalties for not performing
D)Pressure from management
E)Global differences in perceptions of what constitutes ethical practices

Question 7

Which of the following is not among the questions in the "Five Question Test"?

A)Will it lose my company money?
B)Is it legal?
C)Is it right and fair?
D)Would I want everyone to know it?
E)Will I get caught?

Question 8

Who were credited with developing the first ethics theory?

A)Thomas Jefferson
B)St. Francis of Assisi
C)René Descartes
D)Aristotle
E)Plato

Question 9

Which of the following are elements in the three-way ethics test?

A)Generalization test
B)Utilitarian test
C)Virtues test
D)Antifraud test
E)Industrial test

Question 10

Which statements about the levels of moral development are correct?

A)At the lowest level of moral development, preconventional, behavior is motivated by self-interest-seeking rewards and avoiding punishment.
B)At the second level, conventional, behavior is motivated by meeting the group's expectations to fit in by copying others' behavior.
C)At the third level, postconventional, behavior is motivated by doing the right thing, even at the risk of alienating the group.
D)At the fourth level, hyperconventional, ethical behavior is ignored altogether.
E)At the highest level, superconventional, behavior is motivated by doing greater good, even to the point of breaking the law.

Question 11

What statements are true regarding management ethics and business ethics?

A)Management ethics and business ethics are essentially the same.
B)Managerial ethics differs from business ethics because managers are not only responsible for their individual behavior at work; they have ethical responsibilities because of their position.
C)Managers need only answer to the ethical questions involving their employees.
D)Managers are responsible for developing moral standard policies and procedures to guide employee behavior and for ensuring that their employees behave ethically.
E)Managers face more stakeholders with conflicting interests than employees.

Question 12

What are the different classifications of managers regarding morals?

A)Moral managers
B)Amoral managers
C)Immoral managers
D)Conscientious managers
E)Top shelf managers

Question 13

Why is the business plan so important?

Question 14

Describe the strategy formulation section of the business plan process.

Question 15

Describe at least seven of the nine major external factors in an external environment analysis.

Question 16

Phrases like "financial deficit," "negative cash flow," or "creative financing" are examples of _________.

A)Advantage comparison
B)Euphemistic labeling
C)Diffusion of responsibility
D)Efficient communication
E)Relativism ethics

Question 17

Which of the following is not a thinking process to justify unethical behavior?

A)Relativism ethics
B)Conventional justification
C)Critical thinking
D)Displacement of responsibility
E)Diffusion of responsibility

Question 18

_________ is the process of convincing oneself that a decision is rational and ethical, when in fact it really serves self-interest or provides an easy way out of the ethical dilemma.

A)Denying a problem exists
B)Turning a deaf ear
C)Labeling blame
D)Justifying unethical behavior
E)Ethical rationalization

Question 19

Managerial ethics and business ethics are essentially the same thing.

Question 20

There is no point in studying ethics because we all know what is right; it's just a matter of doing what is ethical.

Question 21

Penalties for not performing to a certain level can pressure people to act unethically.

Question 22

Situational characteristics affect the degree to which we are willing to be influenced by others' unethical behavior.

Question 23

You should consider rights of a person, group, or organization as another guide to making ethical decisions.

Question 24

If while pondering an ethical question you said something like, "Would my parents be proud of me if they knew I did this?" This would be considered common sense.

Question 25

Most of the time, a combination of ethical guides must be used to achieve complex ethical outcomes.

Question 26

Stakeholders rarely have conflicting interests.

Question 27

To pass the virtues test, the behavior must be honest, be based on good character traits, and maintain one's integrity and relationships.

Question 28

To pass the utilitarian test, a specific action will lead to more favorable consequences than any alternative decision.

Question 29

To guide employee decision-making and behavior, today few professional associations in the functional areas of business have codes of ethics.

Question 30

________ is the moral standard of right and wrong, and fairness that influences behavior.

A)Conscience
B)Generalization
C)Ethics
D)Law
E)Custom

Question 31

_________ contend that morals can change based on time, the circumstances of the situation, and personal opinion.

A)Relativism ethics
B)Global ethics
C)Universal ethics
D)Executive ethics
E)Utilitarian ethics

Question 32

A/n ________ occurs when a decision must be made in the midst of conflicting interests; sometimes there is no simple right and wrong answer.

A)shortfall
B)alternative strategy
C)ethical dilemma
D)justification
E)moral development

Question 33

Which statement is not a myth about business ethics?

A)Business ethics is simple; just follow a guide such as "don't do anything you wouldn't want to appear on the front page of the newspaper."
B)There is no point in studying ethics because we all know what is right; it's just a matter of doing what is ethical.
C)Ethics is just a matter of opinion.
D)We learn ethics as kids and really can't change our behavior to be more ethical as adults.
E)Ethics can be learned and taught.

Question 34

Which statement about the levels of moral development is not true?

A)At the lowest level of moral development, preconventional, behavior is motivated by self-interest-seeking rewards and avoiding punishment.
B)At the second level, conventional, behavior is motivated by meeting the group's expectations to fit in by copying others' behavior.
C)At the third level, postconventional, behavior is motivated by doing the right thing, even at the risk of alienating the group.
D)At the highest level, superconventional, behavior is motivated by doing greater good, even to the point of breaking the law.
E)At the highest level, behavior is meeting the group's expectations to fit in by copying others' good behavior.

Question 35

________ occurs when an individual's self-interest conflicts with behaving in the best interest of another when obligated to do so.

A)Moral turpitude
B)Conflict of interest
C)Peer pressure
D)Corporate oversight
E)Virtuous ethics