Question 1

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

Consequentialism, deontology, and virtue ethics are the three approaches to ethical decision making that the AACSB Ethics Education taskforce has called for business students to be familiar with.

Question 2

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

Conforming to an unethical corporate culture is an example of frequently decision makers have been subject to unreasonable expectations and unrealistic deadlines.

Question 3

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. This reflects the financial performance of the company and directly impacts shareholder value. While the other options may also be considered, profit or loss is the primary measure used by investors and analysts to determine the financial health of a company.

Question 4

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...

Question 5

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 tendency for shared resources, such as environmental resources, to be overused or depleted because individuals or groups do not fully account for the negative impacts of their actions on others who also rely on the resource. Executives who are not aware of this problem may not attribute enough value to environmental resources and therefore may not prioritize their conservation or sustainable use.

Question 6

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 reasonably 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 above must be satisfied for a decision to be considered ethical.
A decision that is ethical should not only demonstrate virtues that are reasonably expected, but it should also result in more benefits than costs, not offend the rights of any other stakeholders, and have a fair distribution of benefits and burdens among stakeholders. Therefore, all of these factors must be considered and satisfied for a decision to be deemed ethical from a stakeholder perspective.

Question 7

Which of the following is NOT a stakeholder right?
A)Life, health 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 8

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 provide specific guidelines and standards for ethical behavior in a particular industry or organization. These codes often reflect widely accepted social norms and values and can be used as a resource for ethical decision-making. While ethical decision-making frameworks and philosophical approaches can also be helpful, they may not be as specific to the industry or organization in question.

Question 9

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)(a)and (b)only

Accepted Answer

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

Question 10

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 concepts mentioned in the options - rule ethics, ground rule ethics, end-point ethics, and social contract ethics. These concepts are used to analyze the impact of a particular action or decision on different stakeholders, taking into consideration their respective ethical norms and values. Therefore, the best choice is E - all of the above.

Question 11

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

Externalities are costs or benefits that are not reflected in the prices of goods or services, and are instead borne by society as a whole. Environmental clean-up costs that are not factored into the production or consumption of goods and services are a prime example of negative externalities. Downstream individuals, companies, or municipalities are forced to bear the costs of environmental clean-ups, which can have significant financial, health, and social impacts.

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

Surrogates are a way of measuring costs indirectly by using costs incurred in similar circumstances or mirror image alternatives. This can provide insight into the potential costs of a decision or action before it is taken.

Question 13

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 of the options listed are common ethical decision-making pitfalls, so none of them would not be an example of one. Therefore, E is the correct answer.

Question 14

This approach incorporates the expected future impacts of a decision into the analysis:
A)Virtue ethics
B)Consequentialism
C)Cost-benefit analysis
D)Risk-benefit analysis
E)All of the above

Accepted Answer

The answer of This approach incorporates the expected future impacts...

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

Utilitarian, Individual rights, and Justice are the three standards that make up the moral standards approach.

Question 16

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. Other choices such as norms and values may influence ethical behavior, but they do not inherently make a person moral. Moral judgments and ethical judgments are related to evaluating actions as right or wrong, but they do not necessarily relate to a person's character.

Question 17

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

Expected values are the values that are expected to occur based on the probability distribution. It takes into account the probabilities of all possible values to provide an average value. It is commonly used in decision-making and statistical analysis.

Question 18

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

Identifying facts and stakeholders first ensures a clear understanding of the situation, which is crucial before ranking stakeholders and assessing impacts.

Question 19

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 can be caused by a variety of factors, including bias, unethical corporate culture, conflicts of interest, or failure to consider the motivation for the decision. Therefore, all of the options listed are potential reasons for not including all relevant stakeholder groups in a stakeholder impact analysis.

Question 20

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...

Quiz 4: Practical Ethical Decision Making

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

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

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

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

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

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

Which of the following is NOT a stakeholder right?

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

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

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

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

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

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

This approach incorporates the expected future impacts of a decision into the analysis:

The following three standards make up the moral standards approach:

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

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:

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

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