Question 1

Lack of awareness of the following problem results in executives not attributing enough value to the use of an environmental resource:
A)Commons problem
B)Ethics problem
C)Value problem
D)Risk-assessment problem
E)Moral problem

Accepted Answer

The commons problem refers to the situation where a resource is available to all, but no one takes responsibility for its upkeep and preservation. This leads to overuse and degradation of the resource. Lack of awareness of this problem can result in executives undervaluing the importance of preserving environmental resources as they do not realize the long-term impact of their actions.

Question 2

What is the most common measure of shareholder well-being:
A)Profit or loss
B)Profit or loss plus externalities
C)Profit or loss plus cost-benefit analysis
D)Profit or loss plus risk-benefit analysis
E)All of the above

Accepted Answer

The most common measure of shareholder well-being is profit or loss. Shareholders invest in a company with the expectation of receiving a return on their investment in the form of profits. Therefore, the company's profitability is the primary factor that affects shareholder well-being. However, it is important to note that profits should not be at the expense of ethical and sustainable practices, and companies should also consider externalities and cost-benefit analysis in their decision-making process.

Question 3

The costs of environmental clean-ups absorbed by downstream individuals, companies, or municipalities are referred to as:
A)Surrogates
B)Externalities
C)Future impacts
D)Collateral damages
E)Ethical costs

Accepted Answer

The costs of environmental clean-ups absorbed by downstream individuals, companies, or municipalities are a classic example of externalities. Externalities occur when the cost or benefit of an economic activity affects someone who did not choose to take part in that activity. In this case, the cost of the environmental clean-up is borne by someone other than the party that caused the pollution or environmental damage.

Question 4

Which of the following is not a stakeholder right?
A)Life, heath and safety
B)To earn a reasonable return on an investment
C)Freedom of speech
D)Fair treatment before the law
E)All of the above are stakeholder rights

Accepted Answer

The answer of Which of the following is not a...

Question 5

If a decision is expected to be unfair to a particular stakeholder group, the decision may be improved by:
A)Using stakeholder analysis
B)Using a decision making approach
C)Increasing the compensation to that stakeholder group
D)Increasing the compensation to all stakeholder groups
E)All of the above

Accepted Answer

The answer of If a decision is expected to be...

Question 6

These values are the combinations of a value and the probability of its occurrence:
A)Probable values
B)Common values
C)Present values
D)Expected values
E)Risk-adjusted values

Accepted Answer

These values are commonly used in statistics and probability theory and are referred to as expected values. They describe the average value that can be expected based on the probability distribution of a random variable.

Question 7

Completing the following steps in this order provides a sound basis for challenging a proposed decision:
A)Identify facts and stakeholders, rank stakeholders and their interests, and assess the impact of the proposed action
B)Identify a proper ethical decision framework, rank stakeholders and their interests, and assess the impact of the proposed action
C)Rank stakeholders and their interests, identify facts and stakeholders, and assess the impact of the proposed action
D)Identify a proper ethical decision framework, identify facts and stakeholders, and assess the impact of the proposed action
E)Rank stakeholders and their interests, identify a proper ethical decision framework, and assess the impact of the proposed action

Accepted Answer

The answer of Completing the following steps in this order...

Question 8

Pastin's approach adds the following concepts to stakeholder impact analysis:
A)Rule ethics
B)Ground rule ethics
C)End-point ethics
D)Social contract ethics
E)All of the above

Accepted Answer

Pastin's approach includes all of the mentioned concepts - rule ethics, ground rule ethics, end-point ethics, and social contract ethics. These concepts aim to provide a more comprehensive understanding of stakeholder impact analysis beyond just considering the immediate impact of actions on stakeholders. Rule ethics refer to ethical principles that guide decision-making, while ground rule ethics focus on the process of decision-making itself. End-point ethics consider the desired outcome of ethical decision-making, while social contract ethics emphasize the importance of balancing the interests of all stakeholders in a mutually beneficial way.

Question 9

Frequently, decision makers have been subject to unreasonable expectations and unrealistic deadlines, this is an example of:
A)Conforming to an unethical corporate culture
B)Focusing only on legalities
C)Conflicts of interests
D)Failure to identify all stakeholder groups
E)Failure to rank stakeholder interests

Accepted Answer

The answer of Frequently, decision makers have been subject to...

Question 10

These are character traits that dispose a person to act ethically and thereby make that person a morally good human being:
A)Norms
B)Moral judgements
C)Virtues
D)Values
E)Ethical judgements

Accepted Answer

Virtues are character traits that dispose a person to act ethically and make them a morally good human being. They include traits such as honesty, courage, compassion, and fairness. Virtues guide a person to make ethical decisions and live a life of integrity. Norms, moral judgments, values, and ethical judgments are all related to ethical behavior, but they are not character traits themselves.

Question 11

The AACSB Ethics Education taskforce has called for business students to be familiar with the following approaches to ethical decision making:
A)Consequentialism, deontology, and virtue ethics
B)Consequentialism, deontology, and moral imagination
C)Distributive justice, deontology, and virtue ethics
D)Distributive justice, deontology, and moral imagination
E)Consequentialism, deontology, and distributive justice

Accepted Answer

The answer of The AACSB Ethics Education taskforce has called...

Question 12

These costs can be measured indirectly by using costs incurred in similar circumstances or mirror image alternatives:
A)Surrogates
B)Externalities
C)Future impacts
D)Collateral damages
E)Ethical costs

Accepted Answer

The answer of These costs can be measured indirectly by...

Question 13

From a stakeholder point of view, which of the following must be satisfied for a decision to be considered ethical?
A)The decision should demonstrate virtues reasonabley expected
B)The decision should result in more benefits than costs
C)The decision should not offend the rights of any other stakeholders
D)The distribution of benefits and burdens should be fair
E)All of the above must be satisfied for a decision to be considered ethical

Accepted Answer

All of the listed criteria must be satisfied for a decision to be considered ethical.

A) The decision should demonstrate virtues reasonably expected: This means that the decision should reflect virtues such as honesty, integrity, fairness, compassion, and accountability that stakeholders reasonably expect from those making decisions that affect them.

B) The decision should result in more benefits than costs: This means that the decision should maximize the positive outcomes and minimize the negative consequences for all stakeholders affected by the decision.

C) The decision should not offend the rights of any other stakeholders: This means that the decision should respect and protect the basic rights of all stakeholders involved, such as the right to privacy, freedom of speech, and access to healthcare.

D) The distribution of benefits and burdens should be fair: This means that the decision should allocate the benefits and burdens of the decision in a way that is just and equitable for all stakeholders involved.

Thus, all of these criteria must be met to ensure that a decision is ethical from a stakeholder point of view.

Question 14

The first resource for guidance when a businessperson or a professional accountant faces an ethical problem should be:
A)Commonly accepted social norms
B)Corporate and professional codes of conduct
C)Ethical decision-making frameworks
D)Commonly accepted philosophical approaches
E)All of the above

Accepted Answer

Corporate and professional codes of conduct should be the first resource for guidance when facing an ethical problem. These codes outline the ethical standards and values that should be upheld by the business or profession and provide guidance on how to handle ethical dilemmas. While commonly accepted social norms, ethical decision-making frameworks, and philosophical approaches can also be useful resources, they may not be as specific to the particular business or profession in question. Therefore, it is best to start with the codes of conduct.

Question 15

The following three standards make up the moral standards approach:
A)Utilitarian, Individual rights, and Justice
B)Utilitarian, Individual rights, and Fairness
C)Legal, Individual rights, and Justice
D)Utilitarian, Moral rights, and Justice
E)Legal, Moral rights, and Justice

Accepted Answer

The answer of The following three standards make up the...

Question 16

Which of the following is not an example of a common ethical decision-making pitfall?
A)Conforming to an unethical corporate culture
B)Focusing only on legalities
C)Conflicts of interests
D)Failure to identify all stakeholder groups
E)None of the above

Accepted Answer

All the options listed are examples of common ethical decision-making pitfalls. Therefore, none of them can be the answer to this question.

Question 17

Failure to identify all relevant stakeholder groups for a proper stakeholder impact analysis may be the result of:
A)Bias
B)Conforming to an unethical corporate culture
C)Conflicts of interests
D)Failure to consider the motivation for the decision
E)All of the above

Accepted Answer

Failure to identify all relevant stakeholder groups may result from a combination of bias, unethical company culture, conflicts of interest, and failure to consider the motivation behind the decision. All of these factors can contribute to a narrow view of the potential impact on stakeholders, leading to incomplete stakeholder analysis.

Question 18

The following approach does not specifically incorporate a thorough review of the motivation for the decisions involved, or the virtues or character traits expected:
A)5-question approach
B)Moral standards approach
C)Pastin's approach
D)All of the above
E)aand bonly

Accepted Answer

All of the given approaches do not specifically incorporate a thorough review of the motivation for the decisions involved, or the virtues or character traits expected.

Question 19

Which of the following is not one of the 5 questions in Graham Tucker's original approach to ethical decision making?
A)Is it profitable
B)Is it right?
C)Is it fair?
D)Is it legal?
E)Does it demonstrate the virtues expected?

Accepted Answer

The answer of Which of the following is not one...

Quiz 4: Practical Ethical Decision Making

Lack of awareness of the following problem results in executives not attributing enough value to the use of an environmental resource:

What is the most common measure of shareholder well-being:

The costs of environmental clean-ups absorbed by downstream individuals, companies, or municipalities are referred to as:

Which of the following is not a stakeholder right?

If a decision is expected to be unfair to a particular stakeholder group, the decision may be improved by:

These values are the combinations of a value and the probability of its occurrence:

Completing the following steps in this order provides a sound basis for challenging a proposed decision:

Pastin's approach adds the following concepts to stakeholder impact analysis:

Frequently, decision makers have been subject to unreasonable expectations and unrealistic deadlines, this is an example of:

These are character traits that dispose a person to act ethically and thereby make that person a morally good human being:

The AACSB Ethics Education taskforce has called for business students to be familiar with the following approaches to ethical decision making:

These costs can be measured indirectly by using costs incurred in similar circumstances or mirror image alternatives:

From a stakeholder point of view, which of the following must be satisfied for a decision to be considered ethical?

The first resource for guidance when a businessperson or a professional accountant faces an ethical problem should be:

The following three standards make up the moral standards approach:

Which of the following is not an example of a common ethical decision-making pitfall?

Failure to identify all relevant stakeholder groups for a proper stakeholder impact analysis may be the result of:

The following approach does not specifically incorporate a thorough review of the motivation for the decisions involved, or the virtues or character traits expected:

Which of the following is not one of the 5 questions in Graham Tucker's original approach to ethical decision making?