Question 1

The AACSB Ethics Education taskforce has called for business students to be familiar with which of 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 AACSB Ethics Education taskforce has specifically named consequentialism, deontology, and virtue ethics as the approaches to ethical decision making that business students should be familiar with.

Question 2

Which of the following four standards make up the modified moral standards approach?
A) utilitarian, individual rights, justice, and virtues
B) utilitarian, individual rights, fairness, and virtues
C) legal, individual rights, justice, and virtues
D) utilitarian, moral rights, justice, and virtues
E) legal, moral rights, justice, virtues

Accepted Answer

The modified moral standards approach is a combination of four standards: utilitarian, individual rights, justice, and virtues.

Question 3

Which of 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. Norms, moral judgments, values, and ethical judgments can inform ethical behavior, but it is the possession and cultivation of virtues that make a person consistently act ethically.

Question 4

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 these are correct.

Accepted Answer

All of the listed reasons contribute to a failure to identify all relevant stakeholder groups for a proper stakeholder impact analysis. Bias may cause someone to overlook certain stakeholders who they do not have personal connections with or who do not align with their own beliefs. A corporate culture that does not prioritize ethics may not encourage a comprehensive stakeholder analysis. Conflicts of interest may cause someone to leave out certain stakeholders who could potentially raise issues that affect their own interests. And finally, failing to consider the motivation for the decision may result in overlooking stakeholders who may be affected in ways that are not immediately obvious.

Question 5

Which of 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 combinations of a value and the probability of its occurrence. The term describes the long-term average value of a random variable. The expected value is calculated by multiplying the probability of each outcome by the corresponding outcome and then adding up the products.

Question 6

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 mismanagement of a shared environmental resource due to lack of ownership or regulation. The lack of awareness of this problem can cause executives to undervalue the importance of the resource, leading to overuse or depletion.

Question 7

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

This scenario exemplifies conforming to an unethical corporate culture, where the pressure to meet unreasonable expectations and unrealistic deadlines can lead to unethical decision-making or practices.

Question 8

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 these are correct.

Accepted Answer

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

Question 9

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 these are correct.

Accepted Answer

All of the choices listed are examples of common ethical decision-making pitfalls, so none of them are incorrect.

Question 10

Which of 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 Which of these costs can be measured...

Question 11

Which of these approaches 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 these are correct.

Accepted Answer

The answer of Which of these approaches incorporates the expected...

Question 12

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 these are stakeholder rights.

Accepted Answer

While stakeholders have the right to earn a reasonable return on their investment, this is not considered a fundamental stakeholder right like life, health, safety, fair treatment before the law, or freedom of speech. Stakeholder rights are typically focused on protecting individuals or groups from harm or discrimination.

Question 13

Pastin's approach adds which of 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 these are correct.

Accepted Answer

Pastin's approach to stakeholder impact analysis incorporates all of these ethical concepts: rule ethics, ground rule ethics, end-point ethics, and social contract ethics. This comprehensive approach is designed to evaluate the impacts of decisions on stakeholders from multiple ethical perspectives.

Question 14

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 these are correct.

Accepted Answer

The most common measure of shareholder well-being is their profit or loss, which is directly related to the financial performance of the company. Other measures such as externalities, cost-benefit analysis, and risk-benefit analysis are important, but they are not as commonly used as profit or loss.

Question 15

Which of the following approaches 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 these are correct.
E) 5-question approach and the moral standards approach only

Accepted Answer

All the listed approaches (5-question approach, moral standards approach, and Pastin's approach) are designed to incorporate ethical considerations into decision-making, but they do not specifically focus on reviewing the motivation for decisions or the virtues/character traits expected. These approaches are more focused on ethical principles, outcomes, and processes rather than the intrinsic motivations or character virtues of the decision-makers.

Question 16

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 these must be satisfied for a decision to be considered ethical.

Accepted Answer

All of the listed requirements - demonstrating virtues, resulting in more benefits than costs, not offending rights, and fair distribution of benefits and burdens - must be satisfied to consider a decision ethical from a stakeholder perspective. Only by taking all these factors into account can a decision adequately address the concerns and interests of all stakeholders involved.

Question 17

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 these are correct.

Accepted Answer

The best resource for guidance when a businessperson or a professional accountant faces an ethical problem should be corporate and professional codes of conduct. These codes provide specific guidance on how to handle ethical dilemmas and are designed to ensure that individuals act according to the highest ethical standards in their profession or industry. While commonly accepted social norms, ethical decision-making frameworks, and philosophical approaches can also be helpful, they may not provide the specific guidance needed to address the particular ethical problem at hand. Therefore, the corporate and professional codes of conduct should be the first resource consulted.

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

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 term used for the costs of environmental clean-ups that are borne by downstream individuals, companies, or municipalities are called externalities.

Question 20

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.

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

Which of the following four standards make up the modified moral standards approach?

Which of these are character traits that dispose a person to act ethically and thereby make that person a morally good human being?

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

Which of these values are the combinations of a value and the probability of its occurrence?

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

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

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

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

Which of these costs can be measured indirectly by using costs incurred in similar circumstances or mirror-image alternatives?

Which of these approaches incorporates the expected future impacts of a decision into the analysis?

Which of the following is NOT a stakeholder right?

Pastin's approach adds which of the following concepts to stakeholder impact analysis?

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

Which of the following approaches does NOT specifically incorporate a thorough review of the motivation for the decisions involved, or the virtues or character traits expected?

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

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

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

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