Question 1

Housemate, Inc., makes and sells a variety of household products. With a fair amount of certainty, Housemate's decision makers can predict whether a given business action would be legal in

Accepted Answer

It is unlikely that any company can predict with full certainty that a given business action would always be legal in all situations. However, with knowledge of relevant laws and regulations, Housemate's decision makers can reasonably predict whether a given action would be legal in many situations.

Question 2

Import-Export Sales, Inc., like other businesses, has duties pre?scribed by

Accepted Answer

Import-Export Sales, Inc. has duties prescribed by both ethics and the law. They must follow ethical principles and legal regulations in all aspects of their business operations. Simply following demands of the market is not enough to ensure a responsible and sustainable business practice.

Question 3

Delta Equity Corporation provides other firms with capital to expand op?erations. If Delta strictly complies with existing laws, the firm will

Accepted Answer

Providing capital to other firms can have a significant impact on their operations and the community as a whole. Therefore, Delta Equity Corporation has some ethical obligations to consider the social and environmental impacts of their investments. While existing laws may provide some guidance, it is essential for the firm to consider broader ethical implications beyond legal requirements.

Question 4

Eve, the chief executive officer of Federated Corporation (FC), wants to en?sure that FC's activities are legal and ethical. The best course of Eve and FC is to act in

Accepted Answer

Acting in good faith entails ensuring that all business activities are conducted within the legal limits and with an ethical approach. This approach ensures that FC's reputation is not compromised, customers continue to trust the brand, and employees remain motivated to work for an ethical and socially responsible company. It also assures stakeholders that FC is committed to compliance and accountability, making it a sound investment choice. Therefore, the best course of action for Eve and FC is to act in good faith.

Question 5

In making decisions for United Merchandising Company, Viv uses a cost-benefit analysis. This is part of

Accepted Answer

Cost-benefit analysis is associated with utilitarianism, which focuses on maximizing overall happiness or utility. By weighing the costs and benefits of different decisions, Viv can determine which option will result in the greatest amount of overall utility, making it the best choice based on utilitarian principles.

Question 6

Any decision by the management of Standard Business Corporation may significantly affect its

Accepted Answer

Any decision made by the management of Standard Business Corporation can have a wide-ranging impact on not just the operators and owners of the company, but also its suppliers, the surrounding community, and the broader society as a whole. This is because corporations are embedded in a larger social and economic context, and their decisions can have both positive and negative consequences for these stakeholders. Therefore, it is essential for businesses to consider the potential impact of their decisions on multiple stakeholders and make informed and responsible choices.

Question 7

A common ethical dilemma faced by the management of Variety Business Corporation involves the effect that its decision will have on

Accepted Answer

The common ethical dilemma faced by the management of Variety Business Corporation involves the effect that its decision will have on one group, as opposed to another. This is because ethical decisions often involve balancing the needs and interests of different stakeholders, such as employees, customers, shareholders, and the community. Hence, the management must consider the consequences of its actions on all affected parties and choose the option that maximizes overall benefits while minimizing overall harms.

Question 8

Steve, the human resources director for Total Personnel Corporation, at?tempts to comply with the law in dealing with applicants and employ?ees. One of the challenges Steve faces is that the legality of an action is

Accepted Answer

The legality of an action in dealing with applicants and employees can sometimes be clear, but it can also vary depending on the specific situation and the interpretation of the law. Therefore, it is important for Steve and other HR professionals to stay informed about current employment laws and regulations and to seek legal guidance when necessary.

Question 9

Equity Capital Corporation provides other firms with funds to expand op?erations. Questions of what is ethical involve the extent to which Equity has

Accepted Answer

Ethical duties go beyond the legal duties mandated by law. Therefore, if Equity Capital Corporation wants to behave ethically, it should go beyond the legal requirements and fulfill its moral obligations to its stakeholders.

Question 10

Holly, a lawyer on the staff of International Group, applies the utilitar?ian theory of ethics in business contexts. Utilitarianism focuses on

Accepted Answer

Utilitarianism focuses on the consequences of an action, aiming to maximize overall well-being or happiness. Holly, as a lawyer for International Group, likely prioritizes the outcome of her actions and decisions over moral values or religious beliefs.

Question 11

Steele Tool Company's decision makers view a particular risk in the use of Steele's product as open and obvious. Continuing to market the product without telling consumers of the risk could be justified from a perspective of

Accepted Answer

Utilitarian ethics focuses on the greatest good for the greatest number. If the decision makers believe that the benefits of the product outweigh the risks, they might justify not informing consumers based on the overall utility or benefit to society.

Question 12

Harry, a vice-president of International Pharmaceuticals, Inc., does not ap?ply utilitarianism to business ethical issues. One problem with utili?tari?anism is that it

Accepted Answer

The problem that Harry has with utilitarianism is that it tends to justify human costs that many find unacceptable. Utilitarianism is focused on maximizing overall happiness or pleasure, and as a result, it may justify actions that harm certain individuals or groups if it leads to greater benefits for the majority. Harry seems to reject this approach because he believes that there are certain human costs that should never be justified in the pursuit of business goals.

Question 13

Some consumers misuse the products of Hardware Supplies, Inc., and are injured. In terms of responsibility, Hardware may have

Accepted Answer

The answer of Some consumers misuse the products of Hardware...

Question 14

In business deals, Elin, the chief executive officer of Frosted Donuts, Inc., follows duty-based ethical standards. These are most likely derived from

Accepted Answer

Duty-based ethics are typically derived from philosophical reasoning, such as the work of Immanuel Kant, which focuses on the moral obligation to do what is right regardless of the consequences. While a corporate ethics code may reflect this philosophy, it is not the source of it. Cost-benefit analysis and the law may provide some guidance for ethical decision-making, but they are not inherently based on duty-based ethics.

Question 15

Max lies to Nora, his spouse. This is

Accepted Answer

Lying to one's spouse may not be illegal, but it breaches the trust and honesty that are expected in a marital relationship, making it unethical.

Question 16

Quality Business Corporation (QBC) makes and sells its products nationwide. To be considered socially responsible when making a business decision, QBC could take into account the needs of

Accepted Answer

To be considered socially responsible, a business should take into account the needs of all stakeholders, including employees, owners, consumers, the community, and society. A socially responsible business considers the impact of its decisions on all these parties and strives to make decisions that benefit all stakeholders. Therefore, option C is the best choice.

Question 17

Eagle Manufacturing Corporation could demonstrate a commitment to ethical behavior by

Accepted Answer

Eagle Manufacturing Corporation should comply with the law, establish ethics codes, and make a profit to demonstrate a commitment to ethical behavior. Compliance with the law sets the minimum standard for behavior, but ethical behavior goes beyond mere legal compliance. Establishing ethics codes provides guidance for employees and reinforces the ethical culture of the organization. Making a profit is important because it allows Eagle Manufacturing Corporation to continue its operations, but it should not be pursued at the expense of ethical behavior.

Question 18

Make-It Construction Corporation makes a side payment to a govern?ment official in Nigeria to obtain a contract. In the United States, this is

Accepted Answer

Paying a government official to obtain a contract is considered bribery and is both illegal and unethical in the United States.

Question 19

Macro Manufacturing, Inc., needs to cut costs by downsizing. In determin?ing which employees to discharge, Macro will most likely weigh

Accepted Answer

The answer of Macro Manufacturing, Inc., needs to cut costs...

Question 20

Nora's best criticism of utilitari?anism is that it

Accepted Answer

Nora's best criticism of utilitarianism is that it results in human costs that many persons find unacceptable. Utilitarianism advocates maximizing the overall happiness or pleasure for the greatest number of people, even if it requires sacrificing the happiness of a few. Nora argues that this approach can justify actions that harm individuals in pursuit of the greater good, which many people consider ethically unacceptable.

Quiz 5: Ethics and Business Decision Making