Question 1

Which of the following is a belief held by advocates of the humanist school of ethical thought?

Accepted Answer

The answer of Which of the following is a belief...

Question 2

The Model Rules of Professional Responsibility were established by the ________.

Accepted Answer

The Model Rules of Professional Responsibility were established by the American Bar Association.

Question 3

Sam believes that corporations should focus on business and that the government should pay the associated social cost with the money generated as tax. Which of the following theories of social responsibilities is best associated with Sam's beliefs?

Accepted Answer

The profit-oriented school of responsibility posits that the primary responsibility of a corporation is to its shareholders, and its main goal should be to maximize profits. This view aligns with Sam's belief that corporations should focus on business, while the government handles social costs through taxation.

Question 4

Classical economists, who advocate the profit-oriented school of responsibility, would argue that ________.

Accepted Answer

Classical economists emphasize the focus on profit and argue that the social costs of doing business are a collective responsibility of the government, not the responsibility of individual businesses. They believe that the government should not interfere with the free market and instead allow businesses to pursue their own self-interest, which they argue will ultimately benefit society as a whole.

Question 5

Membership in the American Institute of Certified Public Accountants (AICPA) is suspended without a hearing if a judgment of conviction is filed with the secretary of the institute as related to ________.

Accepted Answer

AICPA rules specify that membership can be suspended without a hearing for serious offenses such as the willful failure to file an income tax return, reflecting the profession's emphasis on adherence to tax laws and ethical standards.

Question 6

The deontological and humanist theories of ethical thought are similar in that both theories ________.

Accepted Answer

Both deontological and humanist theories recognize the inherent value of human beings and their traits. Deontological ethics emphasizes duty and the intrinsic value of individuals, while humanist ethics emphasizes human dignity, autonomy, and potential. Both theories prioritize the importance of treating individuals with respect and recognizing their inherent worth. The other choices do not accurately describe similarities between these two ethical theories.

Question 7

A proponent of the ________ school of social responsibility would argue that efforts at pollution control and bringing equality of payment to the workforce are tasks of the government and not of the private sector, which is incapable of making such choices and is not elected in a democratic society to do so.

Accepted Answer

The answer of A proponent of the ________ school of...

Question 8

Which of the following codes of ethics generally provide a "hybrid model" including "dos and don'ts" that address subjects such as honest and fair dealings with customers and nondeceptive advertising?

Accepted Answer

Industry codes of ethics are developed and enforced by trade associations, professional organizations, and other industry groups. They typically provide a hybrid model that includes both aspirational principles and specific dos and don'ts related to business practices, such as honest dealings with customers and nondeceptive advertising. Unlike professional codes of ethics, which are specific to a particular profession, industry codes apply to a broader range of businesses within a particular industry or sector. Corporate codes of ethics are developed and enforced by individual companies and may vary widely in content and scope. Individual codes of ethics are personal guidelines developed by individuals for their own behavior and decision-making.

Question 9

The profit-oriented school of social responsibility argues that businesses ________.

Accepted Answer

The profit-oriented school of social responsibility argues that businesses should be judged solely on the basis of economic efficiency and growth. They believe that a business's primary responsibility is to maximize profits for its shareholders, and any other social responsibility is secondary. Therefore, they do not consider non-profit activities or unintended impacts of profit-making activities to be important when judging a business's social responsibility.

Question 10

A member of the board of directors of a large corporation who holds the belief that businesses should be judged solely on criteria of economic efficiency and how well they contribute to growth in productivity is a proponent of the ________ school of social responsibility.

Accepted Answer

The belief that businesses should only be judged on economic efficiency and productivity growth aligns with the profit-oriented school of social responsibility, which prioritizes maximizing profits for shareholders above all else.

Question 11

Lucas is the general manager of an organization that manufactures school uniforms. Numerous competing firms have outsourced their production to sweatshops in developing countries where workers are paid less than minimum wages. However, Lucas refuses to do this, and his firm consequentially starts to lose market share. In this instance, which of the following schools of ethical thought is guiding Lucas's actions?

Accepted Answer

Lucas's actions are guided by a deontological approach to ethics, which emphasizes the moral obligation to follow certain principles and rules, regardless of their consequences. In this case, Lucas believes that it is morally wrong to exploit workers in developing countries, even if it means losing market share to competitors who do so. His decision is based on a commitment to ethical principles and values, rather than on the outcome or consequences of his actions.

Question 12

Which of the following statements is true of the managerial school of social responsibility?

Accepted Answer

The managerial school of social responsibility emphasizes the importance of a firm maintaining trust with all its stakeholders, both internal and external, to ensure long-term success and sustainability.

Question 13

Proponents of the profit-oriented theory of social responsibility would argue that ________.

Accepted Answer

The profit-oriented theory of social responsibility states that the main goal of businesses is to maximize profits while staying within the legal and ethical boundaries. Proponents of this theory believe that businesses should not take on additional responsibilities that detract from this primary goal, and that any social benefits provided by the company should be a result of their pursuit of profits. Therefore, they would argue that the social cost of doing business should be borne by the government rather than the business itself.

Question 14

The ________ required publicly traded companies to set up confidential internal systems by April 2003 so that employees and others could have a method of reporting possible illegal or unethical auditing and accounting practices.

Accepted Answer

The requirement described is part of the Sarbanes-Oxley Act, which was enacted in response to financial scandals such as Enron and WorldCom. The Homeland Security Act deals with issues related to national security, the Whistleblower Protection Act provides protection to individuals reporting government misconduct, and the Glass-Steagall Act (which is no longer in effect) regulated the banking industry.

Question 15

A proponent of the managerial theory of social responsibility would argue that ________.

Accepted Answer

The answer of A proponent of the managerial theory of...

Question 16

Which of the following best describes the term externalities?

Accepted Answer

Externalities refer to the unintended consequences of profit-seeking activities, which can have an impact on third parties not involved in the original transaction. This can include positive externalities, such as a business creating jobs in a local community or negative externalities, such as pollution caused by a manufacturing plant.

Question 17

The production and marketing emphases of organizations have evolved into what is called a(n) ________.

Accepted Answer

The term "corporate culture" refers to the shared values, beliefs, and attitudes within an organization that guide its behavior and decision-making processes. This includes the organization's production and marketing strategies, as well as its overall approach to doing business.

Question 18

Which of the following assertions does a managerial theorist agree with?

Accepted Answer

A managerial theorist would agree that firms cannot survive by ignoring the claims of important interest groups. This is because managerial theorists believe that a company is a system of interrelated parts, and these parts must work together harmoniously for the company to succeed. Ignoring the claims of important interest groups can create tensions that disrupt this harmonious system and harm the company's long-term prospects. Therefore, a good manager must be aware of and responsive to the concerns of all relevant stakeholders.

Question 19

Which of the following is a characteristic of people who are referred to as professionals?

Accepted Answer

A set of written ethical standards that is continually enforced is a defining characteristic of a professional. Licensing examination requirements may apply to certain professions, but not all. There is no universal minimum wage entitlement for professionals, and belonging to a formal association or group that functions purely online does not necessarily qualify someone as a professional.

Question 20

Section 806 of the Sarbanes-Oxley Act ________.

Accepted Answer

Section 806 of the Sarbanes-Oxley Act prohibits any publicly traded company from discriminating against an employee who provides information to the government regarding the violation of the securities laws. This section provides protection to whistleblowers who report potential fraud or misconduct within their organization.

Quiz 7: Ethics, Social Responsibility, and the Business Manager