Question 1

Ethical standards would most likely be considered violated if Team Logos Merchandising Corporation deals with a company in a developing nation that

Accepted Answer

The question mentions that the company in the developing nation routinely violates labor and environmental standards. By dealing with this company, Team Logos Merchandising Corporation would be supporting unethical practices that harm workers and the environment. Thus, it would be a violation of ethical standards.

Question 2

Fealty Credit Corporation asks its employees to evaluate their actions and get on the ethical business decision-making "bandwagon." Guidelines for judging individual actions most likely include all of the following except

Accepted Answer

The guidelines for judging individual actions are likely to include an individual's conscience, business rules and procedures, and promises to others, but loopholes in the law or company policies should not be considered as an ethical justification for any action.

Question 3

Major Construction & Manufacturing Corporation makes a side payment to a govern-ment official in India. Under the Foreign Corrupt Practices Act,this is permitted

Accepted Answer

The Foreign Corrupt Practices Act prohibits any form of bribery to foreign officials, regardless of the purpose or nationality of the official.

Question 4

Duncan is in charge of the ethics of Earth Eggs,Inc.,an organic egg raising company. As part of this responsibility,Duncan is most likely not in charge of

Accepted Answer

Duncan's responsibility is related to the ethics of the company and its employees. Reviewing the ethics of employees' family members is not directly related to Earth Eggs, Inc. and therefore, Duncan is most likely not in charge of it. The other options (A, B, and C) are all related to the company's ethics and are part of Duncan's responsibilities.

Question 5

To assist in detecting illegal bribes,International Civil Engineers,Inc.,and all other U.S. companies must

Accepted Answer

Keeping accurate and fair records is essential in detecting any illegal bribes. Concealing financial records or making bribes through third parties are both unethical and illegal. Permitting payments to foreign officials that are unlawful in that country is also illegal and goes against the Foreign Corrupt Practices Act (FCPA). Therefore, the best choice is to keep accurate and fair records to ensure that any irregularities can be detected and addressed.

Question 6

Lucas is a business manager for Micro Manufacturing Company. Ethical dilemmas that Lucas is not likely to encounter include deciding

Accepted Answer

Deciding what kind of pizza to order for a company meeting is a trivial matter and does not have ethical implications. The other options involve more serious ethical dilemmas that Lucas may encounter in his role as a business manager.

Question 7

Any decision by the management of Fast-Food Franchise Corporation may significantly affect its

Accepted Answer

Since Fast-Food Franchise Corporation is a large company with many locations and stakeholders, any decision made by management could have a ripple effect on operators, owners, suppliers, the community, or society as a whole. Therefore, it is important for management to consider the potential impacts on all stakeholders before making any major decisions.

Question 8

Mary works in the accounting department of New Trends Sales Company. Her job includes reviewing expense reports submitted by management and employees. In determining which expenses are "padding," Mary should apply to management

Accepted Answer

Mary should apply the same ethical principles to both management and employees when reviewing expense reports. This way, she can ensure that all expenses are necessary and legitimate, regardless of who incurred them. Applying different principles to management would be unfair and may result in a biased review. Choosing the principles that produce the most favorable financial outcome or whatever is in the best interest of the company may lead to unethical behavior, such as overlooking falsified or unnecessary expenses.

Question 9

Recreation & Sports Equipment Corporation sells a product that is capable of seriously injuring consumers who misuse it in a foreseeable way. Does the firm owe an ethical duty to take this product off the market? What con-flicts might arise if the firm stops selling this product?

Accepted Answer

The answer of Recreation & Sports Equipment Corporation sells a...

Question 10

Ridgeline Excavation & Construction,LLC,creates an internal code of ethics. Like the codes of other firms,Ridgeline's company code is not

Accepted Answer

A company's internal code of ethics is not law; it is a set of guidelines or principles that the company expects its employees to follow, but it does not have the legal authority of law.

Question 11

Frances,an executive with GMO Seed & Feed,Inc.,has to decide whether to market a product that could offer substantial benefits but might also have potentially serious side effects for a small per-centage of users. How should Frances de-cide whether to sell the product? How does the standard of ethics that is applied affect this answer?

Accepted Answer

The answer of Frances,an executive with GMO Seed & Feed,Inc.,has...

Question 12

At a meeting of employees,Fuel Injection Design & Manufacturing,Inc.'s managers announce the creation of a new company-wide code of ethical conduct and the initiation of an ad campaign to publicize the new code. They also say that any employees who do not adhere to the code will be discharged. The effectiveness of this code will be determined by

Accepted Answer

The effectiveness of the code will largely depend on the commitment of company leadership to enforcing it, as leadership sets the tone and ensures adherence through consistent actions and consequences.

Quiz 9: Business Ethics