Question 1

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

From a stakeholder perspective, an ethical decision must encompass all these aspects: it should demonstrate expected virtues, result in more benefits than costs, respect the rights of all stakeholders, and ensure a fair distribution of benefits and burdens.

Question 2

Frequently, decision makers are 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 3

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

Each option listed (A: bias, B: conforming to an unethical corporate culture, C: conflicts of interests, D: failure to consider the motivation for the decision) can lead to the failure of identifying all relevant stakeholder groups in a stakeholder impact analysis. Bias may cause overlooking certain groups, unethical corporate culture might discourage considering all stakeholders, conflicts of interest could lead to intentionally ignoring some stakeholders, and not considering the motivation for a decision might result in missing out on identifying relevant stakeholders.

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

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)The modified 5-question approach
B)The modified moral standards approach
C)The modified Pastin approach
D)All of the above
E)a and b only

Accepted Answer

The modified 5-question approach, the modified moral standards approach, and the modified Pastin approach are all ethical decision-making frameworks that focus on various aspects of ethical analysis. However, none of these specifically incorporate a thorough review of the motivation for decisions or the virtues or character traits expected, which are more closely associated with virtue ethics or motivational ethical theories.

Question 6

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, and virtues

Accepted Answer

The modified moral standards approach is based on the four standards of utilitarianism, individual rights, justice, and virtues.

Question 7

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 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

The answer of The first resource for guidance when a...

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)Conflict of interest
D)Failure to identify all stakeholder groups
E)None of the above

Accepted Answer

All the options (A, B, C, D) are examples of common ethical decision-making pitfalls. Conforming to an unethical corporate culture, focusing solely on legalities, having a conflict of interest, and failing to identify all stakeholder groups can all lead to poor ethical decisions.

Question 10

The costs of environmental cleanups 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 affect a party who did not choose to incur that cost or benefit. In the context of environmental cleanups, when the costs are absorbed by downstream individuals, companies, or municipalities, these are considered negative externalities because they are unintended consequences borne by those not responsible for the pollution.

Question 11

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 defined as the sum of all possible values each multiplied by the probability of its occurrence, used in statistics and probability theory.

Question 12

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, as it directly reflects the financial performance of a company and its impact on shareholder value.

Question 13

The modified Pastin approach adds the following concepts to stakeholder impact analysis.
A)Rule ethics
B)End-point ethics
C)Social contract ethics
D)Virtue ethics
E)All of the above

Accepted Answer

The modified Pastin approach to stakeholder impact analysis incorporates a broad spectrum of ethical theories, including rule ethics, end-point ethics, social contract ethics, and virtue ethics, to provide a comprehensive framework for evaluating the impacts of business decisions on stakeholders.

Question 14

A lack of awareness of the following problem results in executives not attributing enough value to the use of an environmental resource.
A)A commons problem
B)An ethics problem
C)A value problem
D)A risk-assessment problem
E)A moral problem

Accepted Answer

The commons problem, also known as the tragedy of the commons, refers to a situation where individuals, acting independently and rationally according to each one's self-interest, behave contrary to the whole group's long-term best interests by depleting a common resource. This lack of awareness can lead executives to not attribute enough value to the sustainable use of an environmental resource, as they may not fully consider the collective impact of their actions.

Question 15

Completing steps in the following 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, followed by ranking stakeholders and their interests to prioritize concerns, and finally assessing the impact of the proposed action to evaluate consequences.

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 judgments
C)Virtues
D)Values
E)Ethical judgments

Accepted Answer

Virtues are character traits that incline a person to act ethically, contributing to their moral goodness.

Question 17

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

Accepted Answer

A reasonable return on an investment is not a stakeholder right.

Question 18

The AACSB Ethics Education Task Force 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 AACSB Ethics Education Task Force recommends that business students be familiar with three primary approaches to ethical decision making: consequentialism, deontology, and virtue ethics. These approaches offer different perspectives on how ethical decisions should be made, focusing on outcomes, duties, and character, respectively.

Question 19

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 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

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

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

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

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

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

The following four standards make up the modified moral standards approach.

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

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

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

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

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

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

The modified Pastin approach adds the following concepts to stakeholder impact analysis.

A lack of awareness of the following problem results in executives not attributing enough value to the use of an environmental resource.

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

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

Which of the following is not a stakeholder right?

The AACSB Ethics Education Task Force has called for business students to be familiar with the following approaches to ethical decision making.

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

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