Question 1

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

Under the Foreign Corrupt Practices Act, it is illegal for any U.S. individual or company to make a payment to a foreign government official in order to secure or maintain business relationships or for any other reason. Therefore, it is not permitted under any circumstances.

Question 2

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

Accepted Answer

Keeping accurate and fair financial records can help to detect illegal bribes and ensure transparency in financial transactions. Concealing past bribes, making bribes through third parties, and permitting unlawful payments to foreign officials are all illegal and can lead to legal consequences for the company.

Question 3

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 answer of At a meeting of employees, Fuel Injection...

Question 4

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 &...

Question 5

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 to ensure fairness and consistency in the review process. These principles should align with the company's values and policies regarding expenses. Choosing option C, which suggests selecting principles that produce the most favorable financial outcome, could lead to bias in favor of certain expenses and be detrimental to the company's financial health. Option D, which suggests doing what is in the best interest of the company, is too broad and open-ended, making it difficult to determine what actions are ethical or legal.

Question 6

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

Accepted Answer

The management of Fast-Food Franchise Corporation can affect not only its operators and owners, but also its suppliers, the community, and society as a whole. Any decision to change pricing, for instance, can affect the cost of goods for suppliers and impact the community's access to affordable food. Additionally, any decision to open or close locations can impact the job market and economic development in the community. Therefore, the best choice is B.

Question 7

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

It is not within Duncan's responsibility to conduct ethical reviews of employees' family members. The other options listed are all within the scope of his role.

Question 8

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

Accepted Answer

Ethical standards require companies to avoid dealing with suppliers who regularly violate labor and environmental standards. By engaging in business with such a company, Team Logos Merchandising Corporation would be tacitly condoning their unethical practices, which would be a significant ethical violation. Choices A, B, and D are not necessarily ethical violations in and of themselves, as long as the company is not engaging in unethical practices.

Question 9

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 does not involve ethical considerations or implications. It is simply a matter of personal preference and does not affect anyone's well-being or rights. The other options, however, have ethical implications that could impact people's lives and require careful consideration of values and principles.

Question 10

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 should not include loopholes in the law or company policies because ethical business decision-making should go beyond just following the minimum legal or corporate requirements. The other options mentioned - an individual's conscience, business rules and procedures, and promises to others - are all valid factors to consider when evaluating ethical actions.

Question 11

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 12

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

Accepted Answer

The answer of Ridgeline Excavation & Construction, LLC, creates an...

Quiz 9: Business Ethics