Question 1

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

The law does not encompass all ethical standards, meaning that legal compliance does not automatically equate to ethical behavior. Ethical considerations often extend beyond the scope of what is written in law.

Question 2

Lyle,vice-president of sales for Mi-T Electric,Inc.,adheres to Judeo-Christian re-lig-ious ethical standards.With respect to their application,these standards are
A)absolute.
B)analytical.
C)discretionary.
D)utilitarian.

Accepted Answer

Judeo-Christian religious ethical standards are based on absolute values and principles, such as the Ten Commandments, and are not subject to interpretation or situational decision-making. Therefore, adhering to these standards means following absolute ethical guidelines.

Question 3

David,the chief accounting officer of Tension 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.David should
A)not worry about what is legal or illegal as long as the corporate executives 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 chief executive of the corporation.

Accepted Answer

As the chief accounting officer, David has a responsibility to ensure that the company's accounts are legal and ethical. Even if he is unsure of some legal and ethical requirements, he should try his best to avoid doing anything that is illegal and keep documentation showing that he always acts in good faith. This approach will protect both him and the company in case of any legal or ethical challenges in the future. Choosing any of the other options would lead to negative consequences for the company and its stakeholders.

Question 4

PriceLess Retail Corporation specifies that its employees should not use social media to damage the company,harm another person's reputation,or violate company policies.An employee who violates these rules may be subject to discipline and could be fired.According to the National Labor Relations Board,this social media policy
A)violates federal labor law.
B)is too lenient toward employees.
C)is too stringent toward management.
D)is necessary to prevent inaccurate statements from being spread across the Internet.

Accepted Answer

The National Labor Relations Act protects employees' rights to engage in protected concerted activity, which includes discussing wages, working conditions, and other terms and conditions of their employment. Prohibiting employees from using social media to criticize or discuss their employer could be seen as a violation of their NLRA rights. Therefore, PriceLess Retail Corporation's social media policy may violate federal labor law.

Question 5

In deciding questions of corporate social responsibility,Valley 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

Valley Disposal & Recycling, Inc. should consider all choices as ethical duty towards society cannot be ignored, it can have an impact on corporate profits, and the corporation has a responsibility towards society. Hence, it is crucial to evaluate all the possible options before deciding on corporate social responsibility.

Question 6

With respect to the potential for American Discount Stores,Inc.,and any other major corporation to suffer damage to its reputation or loss of profits through negative publicity,the Internet has
A)increased the potential.
B)decreased the potential.
C)had no impact.
D)allowed a company to keep negative information or opinions hidden.

Accepted Answer

The Internet has increased the potential for a company like American Discount Stores, Inc., and other major corporations to suffer damage to their reputation or loss of profits through negative publicity. With social media and online review platforms, negative information or opinions can spread quickly to a vast audience, making it difficult for companies to control the narrative and manage their brand image.

Question 7

In business deals,Fiona,the chief executive officer of Snacks n' Bites,Inc.,follows duty-based ethical standards.These are most likely derived from
A)a corporate ethics code.
B)a cost-benefit analysis.
C)philosophical reasoning.
D)the law.

Accepted Answer

Duty-based ethical standards are often derived from philosophical reasoning, which focuses on the inherent rightness or wrongness of actions rather than their consequences.

Question 8

In making business decisions,Glenda,personnel manager for HVAC Maintenance,Inc.,applies her belief that all persons have fundamental rights.This is
A)a religious rule.
B)the categorical imperative.
C)the principle of rights.
D)utilitarianism.

Accepted Answer

The principle of rights is a moral principle that asserts that all individuals have certain inherent and fundamental rights, such as the right to life, liberty, and property. When making business decisions, Glenda is applying this principle by considering the impact of her decisions on the fundamental rights of all individuals involved. This is not a religious rule or the categorical imperative, and it is not based solely on the idea of maximizing overall happiness or utility (which is the focus of utilitarianism).

Question 9

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

The view that New Allied Manufacturing Corporation is a "citizen" implies that it has a responsibility to not just generate revenue, but also participate in bettering communities and society. Therefore, option A is the best choice. Option B, which suggests that New Allied's primary goal is to generate revenue for its owners, is a narrow interpretation of corporate responsibility. Option C, which suggests that New Allied has no responsibility other than profit maximization, is not aligned with the concept of corporate citizenship. Option D, which suggests that New Allied should efficiently allocate scarce resources, is a valid goal, but does not fully address its broader responsibilities as a citizen.

Question 10

Hailey,a lawyer on the staff of International Group,always considers the consequences of an action rather than the nature of the action itself when making ethical decisions in a business context.Hailey is applying
A)the utilitarian theory of ethics in business contexts.
B)religious beliefs in business contexts.
C)Kantian ethics in business contexts.
D)the principle of rights theory of ethics in business contexts.

Accepted Answer

Hailey's approach of considering the consequences aligns with the utilitarian theory of ethics, which holds that actions should be taken to maximize overall happiness or benefit for the majority involved.

Question 11

Carrie Ann works at Paper Products,Inc.She considers taking home a few sheets of stationery so she can write letters to her ailing grandmother.Since Paper Products produces thousands of sheets of stationery every day no one will miss the few sheets she takes and company profits will not be affected.Carrie Ann then considers what would happen if every employee took some stationery home and decides not to take any.Carrie Ann is being influenced by
A)the categorical imperative.
B)the principle of rights.
C)a cost-benefit analysis.
D)outcome-based ethics.

Accepted Answer

The categorical imperative is a principle from Kantian ethics that states that actions should only be taken if they can be universalized without contradiction. In this scenario, Carrie Ann considers what would happen if every employee took stationery home, recognizing that it would not be ethical for everyone to do so. Therefore, she decides not to take any. This decision is in line with the categorical imperative.

Question 12

Julia,the head executive of Fine Woolen Sweaters,Inc.,is a committed Christian who strongly adheres to the Ten Commandments.One of Julia's employees is found to be stealing sweaters and giving them to a local homeless shelter.Julia is likely to
A)punish the employee for stealing even though the employee's motive was benevolent.
B)view the employee's actions as justified because the employee was clothing the poor.
C)contribute more sweaters to the homeless shelter.
D)gently reprimand the employee without suggesting that the employee's actions were unethical.

Accepted Answer

Julia is likely to punish the employee for stealing because, as a committed Christian adhering to the Ten Commandments, she would view stealing as wrong regardless of the motive.

Question 13

Ryan,the owner of SuperMart Stores,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 affects
A)the right determination under a cost-benefit analysis.
B)the rights of others.
C)the "right" thing to do.
D)the right to make a profit.

Accepted Answer

The "principle of rights" theory is focused on the rights of others, meaning that ethical decision-making should consider the impact on the fundamental rights of those affected by the decision. Therefore, the key factor in determining whether a business decision is ethical is how that decision affects the rights of others. Choices A, C, and D are not directly linked to the "principle of rights" theory.

Question 14

Destiny and Eduardo,investors in Competitive Acquisitions Corporation,are dissatisfied with the profit-maximization theory of corporate objectives.These investors and others who look beyond profits and dividends may consider the triple bottom line,which does not include a corporation's
A)impact on people.
B)profits.
C)impact on the planet.
D)congressional lobbying activities.

Accepted Answer

The triple bottom line includes social, environmental, and financial impacts of a corporation. The option D, which refers to congressional lobbying activities, is not an element of the triple bottom line.

Question 15

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

Although the company code serves as a guide for decision makers facing ethical questions, it is not a law that can be enforced by the company or legal system. The code is more of a set of guidelines and principles for ethical decision-making within the company.

Question 16

Bob,research manager for CornAgri Products,Inc.,ap-plies utilitarian eth-ics to determine that an action is morally cor-rect when it produces the greatest good for
A)Bob.
B)CornAgri.
C)the fewest people.
D)the most people.

Accepted Answer

Utilitarian ethics is based on the principle of maximizing overall happiness or well-being. In this case, Bob is applying this principle to determine the morally correct action that produces the greatest good for the most people, not just for himself or CornAgri. Therefore, the best choice is D, which aligns with the principle of maximizing overall well-being.

Question 17

In making decisions for Smartt Investments,Rita uses a cost-benefit analysis.This is a part of
A)duty-based ethics.
B)Kantian ethics.
C)rights-based ethics.
D)utilitarian ethics.

Accepted Answer

Cost-benefit analysis is a tool/technique used in utilitarian ethics, where the decision is based on the outcomes that bring the greatest overall happiness or satisfaction to the maximum number of people.

Question 18

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

Peak & Vale may have legal duties as a business, but as accountants providing services to other firms, they also have ethical duties to their clients that may not be mandated by law. It is important for them to consider both their legal obligations and their ethical responsibilities. Option A is not the best choice because it suggests that Peak & Vale has duties beyond ethics, which may not be accurate. Option C is not the best choice because it suggests that there may be duties beyond ethics and the law, which is not likely. Option D is not the best choice because uncertainty about legal duties does not necessarily negate ethical duties.

Question 19

Eden,the chief executive officer of Flo-Thru Piping Corporation,wants to en-sure that Flo-Thru's activities are legal and ethical.The best course for Eden and Flo-Thru is to act in
A)good faith.
B)ignorance of the law.
C)regard for the firm's shareholders only.
D)their own self interest.

Accepted Answer

Acting in good faith means conducting business in a manner that is honest, fair, and with a sincere intention of doing the right thing. This ensures that Flo-Thru's activities are legal and ethical, and takes into consideration the interests of all stakeholders, not just shareholders. Ignorance of the law or solely focusing on self-interest can lead to unethical and illegal behavior, which could result in negative consequences for the company and its stakeholders.

Question 20

In studying the legal environment of business,Professor Dooley's students also review ethics in a business context.Ethics includes the study of what constitutes
A)fair or just behavior.
B)financially rewarding behavior.
C)legal behavior.
D)religious behavior.

Accepted Answer

Ethics refers to the principles and values that determine what is right and wrong behavior. In a business context, ethics involves an examination of behavior that is fair or just, not necessarily financially rewarding or legal, and not necessarily based on religious beliefs. Thus, choice A is the best option.

Quiz 3: Ethics and Business Decision Making

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

Lyle,vice-president of sales for Mi-T Electric,Inc.,adheres to Judeo-Christian re-lig-ious ethical standards.With respect to their application,these standards are

David,the chief accounting officer of Tension 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.David should

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

With respect to the potential for American Discount Stores,Inc.,and any other major corporation to suffer damage to its reputation or loss of profits through negative publicity,the Internet has

In business deals,Fiona,the chief executive officer of Snacks n' Bites,Inc.,follows duty-based ethical standards.These are most likely derived from

In making business decisions,Glenda,personnel manager for HVAC Maintenance,Inc.,applies her belief that all persons have fundamental rights.This is

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

Hailey,a lawyer on the staff of International Group,always considers the consequences of an action rather than the nature of the action itself when making ethical decisions in a business context.Hailey is applying

Julia,the head executive of Fine Woolen Sweaters,Inc.,is a committed Christian who strongly adheres to the Ten Commandments.One of Julia's employees is found to be stealing sweaters and giving them to a local homeless shelter.Julia is likely to

Ryan,the owner of SuperMart Stores,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 affects

Destiny and Eduardo,investors in Competitive Acquisitions Corporation,are dissatisfied with the profit-maximization theory of corporate objectives.These investors and others who look beyond profits and dividends may consider the triple bottom line,which does not include a corporation's

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

Bob,research manager for CornAgri Products,Inc.,ap-plies utilitarian eth-ics to determine that an action is morally cor-rect when it produces the greatest good for

In making decisions for Smartt Investments,Rita uses a cost-benefit analysis.This is a part of

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

Eden,the chief executive officer of Flo-Thru Piping Corporation,wants to en-sure that Flo-Thru's activities are legal and ethical.The best course for Eden and Flo-Thru is to act in

In studying the legal environment of business,Professor Dooley's students also review ethics in a business context.Ethics includes the study of what constitutes