Question 1

Sales people must often walk a fine line between persuasion and deception.

Accepted Answer

While the ultimate goal of salespeople is to persuade customers to buy their product or service, it is important that they do not cross the line into deception. Deceptive sales practices can harm the reputation of the company and ultimately lead to lost sales and legal consequences. Successful salespeople focus on building trust with customers and providing them with accurate information to make informed buying decisions.

Question 2

Without a strong commitment to integrity on the part of small business leadership, ethical standards can easily be compromised.

Accepted Answer

Without strong commitment to integrity, small businesses run the risk of compromising ethical standards.

Question 3

Small businesses that practice skimming of income are acting unethically and illegally.

Accepted Answer

Skimming of income involves withholding taxes and not reporting all sales, which is both unethical and illegal. It deprives the government of tax revenue and gives the business an unfair advantage over competitors who follow the rules.

Question 4

Entrepreneurs who do not behave in a way consistent with the noble values, beliefs, and principles they claim to hold are said to be compromising their integrity.

Accepted Answer

Integrity refers to the adherence to a set of values and principles. When entrepreneurs fail to behave consistently with these values and beliefs, they compromise their integrity.

Question 5

Nobel Prize winning economist Milton Friedman stated that there is only one social responsibility of business - to use its resources and engage in activities designed to increase profits no matter what is required.

Accepted Answer

Milton Friedman stated that the primary social responsibility of business is to increase profits while conforming to the basic rules of society, both those embodied in law and those embodied in ethical custom.

Question 6

Judeo-Christian values have traditionally been left in the churches and synagogues and have not entered the marketplace.

Accepted Answer

Judeo-Christian values have historically played a significant role in shaping Western societies and have influenced decision-making in various fields, including politics, economics, and business. In recent years, there has been a growing awareness of the importance of ethical values in the marketplace, and many businesses have embraced principles such as transparency, accountability, fairness, and responsibility. So, it is not correct to say that Judeo-Christian values have been left in the churches and synagogues and have not entered the marketplace.

Question 7

Business practices and other behaviors reflect the underlying values of the leaders and employees of a business.

Accepted Answer

The values held by leaders and employees drive the decisions and actions taken by a business, ultimately influencing its practices and behaviors.

Question 8

Stakeholders are those who neither can affect the performance of a company nor are they affected by it.

Accepted Answer

Stakeholders are individuals or entities that can affect or be affected by the performance of a company. Examples of stakeholders include customers, employees, investors, suppliers, government agencies, and local communities.

Question 9

According to a recent survey, many small business owners experienced ethical problems pertaining to the environment, but very few of them reported ethical problems in relationships with customers.

Accepted Answer

The answer of According to a recent survey, many small...

Question 10

Unlike employees in small firms, those who work for large corporations face pressure from various sources to act in ways that conflict with their own sense of what is right and wrong.

Accepted Answer

Employees in both small and large firms can face pressures that conflict with their personal ethics, though the sources and nature of these pressures may differ.

Question 11

Small business owners cannot formulate codes of ethics; they must be issued by law or by professional associations.

Accepted Answer

Small business owners can formulate their own codes of ethics, even though they may not be legally required to do so. Professional associations may offer guidance and resources for developing ethical standards, but ultimately it is up to the individual small business owner to create their own code of ethics.

Question 12

Because they are in contact with a much larger body of employees, the ethical influence of a leader in a large business is more pronounced than is that of a leader in a small firm.

Accepted Answer

The answer of Because they are in contact with a...

Question 13

In a recent survey of employees of small firms, less than half reported feeling no pressure to compromise their own ethical standards.

Accepted Answer

The statement says that less than half reported feeling no pressure to compromise their own ethical standards, which means that over half (more than half or at least half) did feel pressure to compromise their ethical standards. Therefore, the statement is false.

Question 14

Many entrepreneurs are people of principle, and integrity regulates their quest for profits.

Accepted Answer

Many successful entrepreneurs prioritize their values and ethics over solely pursuing profits. They aim to make a positive impact on society and operate their businesses with integrity.

Question 15

Income-tax cheating by small business is sufficiently widespread to be recognized as a general problem.

Accepted Answer

Studies have shown that income-tax cheating by small businesses is a widespread problem, with many businesses underreporting their income or claiming false deductions. This contributes to billions of dollars in lost tax revenue each year.

Question 16

Unethical business behaviors take place in every country, but some countries must deal with more serious forms of illegal business activity than others.

Accepted Answer

While unethical business behaviors occur worldwide, some countries do have to deal with more severe forms of illegal business activity such as corruption, money laundering, and human rights violations.

Question 17

Small firm owners may be tempted to rationalize bribery as a way of offsetting what seems to be a competitive disadvantage.

Accepted Answer

Small firm owners may rationalize bribery as a way to level the playing field and gain advantages over their competitors. However, this is illegal and unethical behavior that can harm the business and result in legal consequences.

Question 18

Religious values and other deeply felt convictions strengthen a manager's resolve to act ethically in the face of temptation.

Accepted Answer

Religious values and other deeply felt convictions can provide a strong moral compass for a manager and help them resist the temptation to act unethically.

Question 19

The essence of ethical relativism is captured in the following statement: "When in Rome, do as the Romans do."

Accepted Answer

Ethical relativism posits that what is morally right or wrong is relative to a particular culture or society, and therefore, the appropriate behavior should be determined by the norms and values of that group. The statement "When in Rome, do as the Romans do" reflects this idea, suggesting that one should conform to the moral standards of the culture they find themselves in, rather than imposing their own beliefs.

Question 20

Temptations and pressures to act unethically are thought to be greater in big business than in small business.

Accepted Answer

The answer of Temptations and pressures to act unethically are...

Quiz 2: Entrepreneurial Integrity and Ethics