Question 1

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​
A)a different set of principles from those that apply to employees.
B)the same ethical principles that apply to employees.
C)those principles that produce the most favorable financial outcome.
D)whatever result is in the best interest of New Trends.

Accepted Answer

Ethical principles should apply equally to both management and employees in reviewing expense reports. Mary should use the same principles to ensure fairness and consistency in expense report review.

Question 2

Peak & Vale Accountants provides other firms with accounting services. Questions of what is ethical involve the extent to which Peak & Vale has​
A)a legal duty beyond those duties mandated by ethics.
B)an ethical duty beyond those duties mandated by law.
C)any duty beyond those mandated by both ethics and the law.
D)any duty when it is uncertain whether a legal duty exists.

Accepted Answer

Ethical duties go beyond legal duties, and firms like Peak & Vale Accountants are expected to prioritize ethical considerations in their decision-making processes. While legal duties are important, they provide only a baseline for ethical behavior, and do not encompass all ethical considerations. Answer A is incorrect because legal duties do not go beyond ethical duties. Answer C is incorrect because if there are no duties beyond those mandated by ethics and the law, there are no additional duties for Peak & Vale to consider. Answer D is incorrect because if it is uncertain whether a legal duty exists, it is still important for Peak & Vale to consider ethical duties.

Question 3

Ethical standards would most likely be considered violated if Team Logos Merchandising Corporation deals with a company in a developing nation that​
A)agrees to produce goods at Team Logos's desired price.
B)goes unnoticed by "corporate watch" groups.
C)routinely violates labor and environmental standards.
D)pays its workers less than the U.S.minimum wage.

Accepted Answer

The ethical standards would be violated if Team Logos Merchandising Corporation deals with a company in a developing nation that routinely violates labor and environmental standards. This is because such companies exploit their workers and pollute the environment, which goes against ethical standards. Thus, Team Logos should avoid dealing with such companies and instead work with suppliers who adhere to ethical standards.

Question 4

Donna works for eMarketing, Inc. Her job includes putting "spin" on the firm's successes and failures. In this context, ethics has to do with how businesspersons, in making their decisions, apply​
A)legal doctrine.
B)moral and ethical principles.
C)corporate guidelines.
D)financial priorities.

Accepted Answer

Ethics deals with moral and ethical principles, which guide decision-making and behavior in the business world. Legal doctrine, corporate guidelines, and financial priorities may play a role in decision-making, but they are not the sole determining factor for ethical behavior. Donna's job, which involves putting a spin on the firm's successes and failures, requires ethical considerations in how she presents the information.

Question 5

Morgan and other executive officers of Regional Economic Development Associates, Inc., applies the utilitarian theory of ethics in business contexts. Utilitarianism focuses on​
A)moral values.
B)religious beliefs.
C)the consequences of an action.
D)the nature of an action.

Accepted Answer

Utilitarianism focuses on the consequences of an action, seeking to maximize overall good or benefit for society. Therefore, in business contexts, the utilitarian theory of ethics would prioritize actions that have a positive impact on the company, its stakeholders, and society as a whole.

Question 6

Invested Capital Corporation provides other firms with funds to expand operations. If Invested Capital strictly complies with existing laws, the firm's business ethics obligations will​
A)be entirely met.
B)not be met.
C)be partially met.
D)not need to be met.

Accepted Answer

Strictly complying with existing laws may not necessarily meet all of Invested Capital's business ethics obligations. Business ethics go beyond legal requirements and include moral and societal responsibilities. Therefore, the firm's obligations will only be partially met.

Question 7

Major Construction & Manufacturing Corporation makes a side payment to a government official in India. Under the Foreign Corrupt Practices Act, this is permitted​
A)under no circumstances.
B)if the purpose is to secure a favorable contract.
C)under the dictum "When in Rome, do as the Romans do."
D)if the official is not a U.S.citizen.

Accepted Answer

The Foreign Corrupt Practices Act prohibits any form of bribery or side payment to government officials in order to secure business deals, regardless of the purpose or nationality of the official.

Question 8

Lucas is a corporate officer for Micro Manufacturing Company. Ethical dilemmas that Lucas is not likely to encounter include deciding
A)whether to report internal misconduct to a government agency.
B)whether to lay off employees or take a loss in corporate profits.
C)whether to provide federally mandated family medical leave to employees.
D)what to tell a reporter about the recent drop in corporate stock prices when the drop was due to mistakes made internally.

Accepted Answer

Providing federally mandated family medical leave is a legal requirement, not an ethical dilemma, as it is governed by law and not subject to personal ethical decision-making.

Question 9

Precision Engineering Inc., like other corporations, is subject to laws that are broad in their purpose and their scope. Compliance with these laws is not always sufficient to determine "right" behavior because​
A)the law does not codify all ethical requirements.
B)company codes are also sources of law.
C)business decisions can have negative impacts.
D)ethical problems occur in business.

Accepted Answer

Laws only provide minimum standards of behavior and may not encompass all ethical considerations. Therefore, compliance with the law alone is not sufficient to determine "right" behavior.

Question 10

Ridgeline Excavation & Construction, LLC, creates an internal code of ethics. Like the codes of other firms, Ridgeline's company code is not
A)state law.
B)a set of rules that the company can enforce.
C)an outline of the company's policies.
D)a guide for decision makers facing ethical questions.

Accepted Answer

A company's internal code of ethics is not state law; it is a set of guidelines created by the company itself to govern its own operations and ethical standards.

Question 11

In deciding questions of corporate social responsibility, Waste Disposal & Recycling, Inc., is concerned with​
A)how the corporation can best fulfill any ethical duty to society.
B)the effect on corporate profits of ignoring any ethical duty to society.
C)whether the corporation owes any ethical duty to society.
D)all of the choices.

Accepted Answer

Waste Disposal & Recycling, Inc. should consider all of the choices in deciding questions of corporate social responsibility. The corporation should evaluate how it can best fulfill any ethical duty to society, as well as the effect on corporate profits of ignoring any ethical duty to society. Additionally, the corporation should consider whether it owes any ethical duty to society in the first place. Taking all of these factors into account will allow the corporation to make a well-rounded decision about its social responsibility.

Question 12

Sam, the chief accounting officer of Texas Fencing Corporation, wants to be sure that all the company's accounts are legal and ethical. Sometimes, however, he is unsure exactly what is legal and what is illegal. Sam should​
A)not worry about what is legal or illegal as long as the corporate officers benefit in the short run.
B)try his best to not do anything illegal and keep documentation showing that he always acts in good faith.
C)not worry about what is legal or illegal as long as it benefits the shareholders.
D)not worry about what is legal or illegal as long as it benefits the directors of the corporation.

Accepted Answer

Sam should always try his best to not do anything illegal and keep documentation showing that he always acts in good faith. It is his responsibility as the chief accounting officer to ensure that the company is following legal and ethical accounting practices. Choosing any of the other options goes against his ethical and legal responsibilities.

Question 13

Dyan, the owner of Expert Restoration Services, Inc., adheres to the "principle of rights" theory. Under this theory, a key factor in determining whether a business decision is ethical is how that decision​
A)complies with religious principles.
B)affects the rights of others.
C)causes consequences that would follow if everyone acted the same way.
D)supports the right to make a profit.

Accepted Answer

The principle of rights theory states that ethical decisions are based on how they affect the rights of others. This means that a key factor in determining whether a business decision is ethical is the impact it will have on the rights of those involved, such as customers, employees, and stakeholders. Compliance with religious principles, consequences of universal behavior, and the right to make a profit are not the key factors in the principle of rights theory.

Question 14

In making decisions for Commercial Janitorial & Maintenance Services, Inc., Isaiah uses a cost-benefit analysis. This analysis is part of​
A)duty-based ethics.
B)Kantian ethics.
C)the principle of rights.
D)utilitarianism.

Accepted Answer

Utilitarianism is a moral theory that advocates that the best choice is the one that produces the most overall happiness or pleasure and the least overall unhappiness or pain. A cost-benefit analysis is a tool used to measure the positive and negative consequences of a decision, which aligns with utilitarianism's focus on maximizing overall happiness. Therefore, using a cost-benefit analysis is consistent with the utilitarianism ethical framework.

Question 15

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​
A)the commitment of company leadership to enforcing the code.
B)the extent to which the employees comply with the code.
C)a marketing campaign posted online to tout the firm's ethical tone.
D)management directing employees to "do as we say, not as we do."

Accepted Answer

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

Question 16

As chief executive officer of Alabama Archery Supplies, Bertrand applies ethical standards derived from religious principles. For businesses, religious principles can be​
A)a unifying force for employees.
B)all of the choices.
C)a rallying point to increase employee motivation.
D)the basis for an action that leads to negative publicity.

Accepted Answer

Religious principles can serve as a unifying force, a rallying point for motivation, and sometimes lead to negative publicity, making all the choices applicable.

Question 17

According to the view that New Allied Manufacturing Corporation is a "citizen," New Allied is expected to​
A)participate in bettering communities and society.
B)primarily generate revenue for its owners.
C)have no responsibility other than profit maximization.
D)efficiently allocate scarce resources.

Accepted Answer

According to the view that New Allied is a "citizen," it is expected to participate in bettering communities and society as a responsible and socially conscious entity, not just generate profits for its owners. This view emphasizes corporate social responsibility and the role of companies in promoting the greater good.

Question 18

Palette Paints, Inc. expends funds and takes steps to ensure that all employees are safe on the job, that all products are safe for consumers, and that the environmental impact of the corporation is minimal. Palette Paints appears to believe in the concept of​
A)the moral minimum.
B)corporate social responsibility.
C)the categorical imperative.
D)utilitarianism.

Accepted Answer

Palette Paints, Inc. believes in corporate social responsibility, which refers to a corporation's obligation to consider the interests of all stakeholders, including employees, consumers, and the environment, in its operations and decision-making. The concept of the moral minimum suggests that a corporation should only comply with legal requirements, which is a lower standard than what Palette Paints appears to be following. The categorical imperative is a moral philosophy that focuses on acting in a way that can be universally applied, while utilitarianism is a theory that prioritizes actions that maximize overall happiness or utility. While these philosophies may inform corporate social responsibility, they are not the same concept.

Question 19

Duncan is in charge of the ethics program of Earth Eggs, Inc., an organic egg raising company. As part of this responsibility, Duncan is most likely not in charge of
A)an internal company ethical code.
B)ethics training programs.
C)internal ethical audits.
D)customer satisfaction surveys.

Accepted Answer

Customer satisfaction surveys are typically handled by the marketing or customer service departments, not the ethics program.

Question 20

Bob, research manager for CornAgri Products, Inc., applies utilitarian ethics to determine that an action is morally correct when it produces the greatest good for​
A)Bob.
B)CornAgri.
C)the fewest people.
D)the most people.

Accepted Answer

Utilitarianism suggests that the most ethical decision or action is the one that produces the greatest good for the greatest number of people. Therefore, Bob should determine that an action is morally correct when it produces the most good for the most people.

Quiz 7: Business Ethics

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​

Peak & Vale Accountants provides other firms with accounting services. Questions of what is ethical involve the extent to which Peak & Vale has​

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

Donna works for eMarketing, Inc. Her job includes putting "spin" on the firm's successes and failures. In this context, ethics has to do with how businesspersons, in making their decisions, apply​

Morgan and other executive officers of Regional Economic Development Associates, Inc., applies the utilitarian theory of ethics in business contexts. Utilitarianism focuses on​

Invested Capital Corporation provides other firms with funds to expand operations. If Invested Capital strictly complies with existing laws, the firm's business ethics obligations will​

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

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

Precision Engineering Inc., like other corporations, is subject to laws that are broad in their purpose and their scope. Compliance with these laws is not always sufficient to determine "right" behavior because​

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

In deciding questions of corporate social responsibility, Waste Disposal & Recycling, Inc., is concerned with​

Sam, the chief accounting officer of Texas Fencing Corporation, wants to be sure that all the company's accounts are legal and ethical. Sometimes, however, he is unsure exactly what is legal and what is illegal. Sam should​

Dyan, the owner of Expert Restoration Services, Inc., adheres to the "principle of rights" theory. Under this theory, a key factor in determining whether a business decision is ethical is how that decision​

In making decisions for Commercial Janitorial & Maintenance Services, Inc., Isaiah uses a cost-benefit analysis. This analysis is part of​

As chief executive officer of Alabama Archery Supplies, Bertrand applies ethical standards derived from religious principles. For businesses, religious principles can be​

According to the view that New Allied Manufacturing Corporation is a "citizen," New Allied is expected to​

Palette Paints, Inc. expends funds and takes steps to ensure that all employees are safe on the job, that all products are safe for consumers, and that the environmental impact of the corporation is minimal. Palette Paints appears to believe in the concept of​

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

Bob, research manager for CornAgri Products, Inc., applies utilitarian ethics to determine that an action is morally correct when it produces the greatest good for​

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

Peak & Vale Accountants provides other firms with accounting services. Questions of what is ethical involve the extent to which Peak & Vale has

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

Donna works for eMarketing, Inc. Her job includes putting "spin" on the firm's successes and failures. In this context, ethics has to do with how businesspersons, in making their decisions, apply

Morgan and other executive officers of Regional Economic Development Associates, Inc., applies the utilitarian theory of ethics in business contexts. Utilitarianism focuses on

Invested Capital Corporation provides other firms with funds to expand operations. If Invested Capital strictly complies with existing laws, the firm's business ethics obligations will

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

Precision Engineering Inc., like other corporations, is subject to laws that are broad in their purpose and their scope. Compliance with these laws is not always sufficient to determine "right" behavior because

In deciding questions of corporate social responsibility, Waste Disposal & Recycling, Inc., is concerned with

Sam, the chief accounting officer of Texas Fencing Corporation, wants to be sure that all the company's accounts are legal and ethical. Sometimes, however, he is unsure exactly what is legal and what is illegal. Sam should

Dyan, the owner of Expert Restoration Services, Inc., adheres to the "principle of rights" theory. Under this theory, a key factor in determining whether a business decision is ethical is how that decision

In making decisions for Commercial Janitorial & Maintenance Services, Inc., Isaiah uses a cost-benefit analysis. This analysis is part of

As chief executive officer of Alabama Archery Supplies, Bertrand applies ethical standards derived from religious principles. For businesses, religious principles can be

According to the view that New Allied Manufacturing Corporation is a "citizen," New Allied is expected to

Palette Paints, Inc. expends funds and takes steps to ensure that all employees are safe on the job, that all products are safe for consumers, and that the environmental impact of the corporation is minimal. Palette Paints appears to believe in the concept of

Bob, research manager for CornAgri Products, Inc., applies utilitarian ethics to determine that an action is morally correct when it produces the greatest good for