Deck 2: Business Ethics: The Controversy

Question 1

A corporation is_______ .

A) a real person
B) a group of people
C) stockholders
D) an artificial person

Answer 1

an artificial person

Question 2

A business need only be concerned about_____ .

A) money
B) people
C) the environment
D) there is no settled answer

Answer 2

there is no settled answer

Question 3

Milton Friedman is _____.

A) a Nobel Prize winning environmentalist
B) a Nobel Prize winning economist
C) a Professor of Business Administration
D) a company that makes industrial products

Answer 3

a Nobel Prize winning economist

Question 4

R. Edward Freeman is______ .

A) a Nobel Prize winning environmentalist
B) a Nobel Prize winning economist
C) a Professor of Business Administration
D) a company that makes industrial products

Question 5

H.B. Fuller is_______ .

A) a Nobel Prize winning environmentalist
B) a Nobel Prize winning economist
C) a Professor of Business Administration
D) a company that makes industrial products

Question 6

Milton Friedman's claim that businesses can have no explicit social responsibilities is best explained as an example of_______ .

A) deontological reasoning
B) virtue theory ethics
C) consequentialist theory
D) social contracting

Question 7

The Stakeholder Theory holds that:

A) The rights of all who may be affected need to be considered in making business decisions.
B) Anyone with stake in a corporation's behavior should be rewarded with a corresponding proportion of ownership.
C) Capitalism has long outlived its usefulness.
D) Virtue theory ethics alone is suitable for the 21^st Century.

Question 8

Resistol is_______ .

A) a toxic substance
B) the theory that we should resist change
C) a company with business in Central America
D) an organization concerned with corporate ethics

Question 9

When did the modern business corporation emerge as one of the most important innovations in human history?

A) in the 21^st Century
B) in the 20^th Century
C) in the 19^th Century
D) in the 18^th Century

Question 10

H. B. Fuller is best described as a company_________ .

A) that believed it was an ethical company
B) that was only concerned with making money
C) that made shoes in Central America
D) headquartered in Europe

Question 11

H.B. Fuller is a Honduran company.

Question 12

Resistol is marketed as an inhalant.

Question 13

Milton Friedman is a free market economist.

Question 14

Milton Friedman believed the doctrine of "social responsibility" involved the acceptance of a socialist view.

Question 15

Stakeholders are the same as Stockholders.

Question 16

R. Edward Freeman is a proponent of "managing for stakeholders."

Question 17

Modern business is no more complex than in the past.

Question 18

"Privity of contract" remains the only recognized relationship that an individual can have with a business.

Question 19

The "Separation Fallacy" holds that those who separate business decisions from ethics are wrong to do so.

Question 20

Stakeholder theory holds that business can be understood as a set of relationships among groups that have a stake in the activities that make up the business.