Question 1

Which of the following is a prescribed guideline for ethical decision making?

Accepted Answer

A decision maker who wishes to act ethically would look at all the alternatives possible in a creative manner.The solution is not simply to do or not do something;there are many solutions that are possible between the two extremes.

Question 2

Which of the following factors can impose direct penalties for corporate misbehavior?

Accepted Answer

Of all the devices for corporate control we have considered,only market forces and the law impose direct penalties for corporate misbehavior.

Question 3

Which of the following is a characteristic of profit maximization?

Accepted Answer

Profit maximization is considered a teleological ethical theory because it focuses on the results of business decisions taken.It is closely related to utilitarianism,but it differs fundamentally in how ethical decisions are made.

Question 4

Which of the following ethical theories illustrates that acting in one's selfish interests can ultimately result in ethical behavior and benefits to society?

Accepted Answer

By working in our own interests,in accordance with the profit maximization theory,we compete for society's scarce resources which are allocated to those people and businesses that can use them most productively and efficiently.

Question 5

Which of the following ethical theories focuses on a decisions or action alone,irrespective of the result it produces?

Accepted Answer

Theories that focus on decisions or actions alone are deontological ethical theories;they do not look at the consequences of an action or decision.

Question 6

_____ protects the rights of those who are less privileged in society.

Accepted Answer

The strength of the justice theory lies in the fact that it is concerned with ensuring the rights of those who are the least advantaged in society.

Question 7

Which of the following ethical theories judges our actions as good or bad depending on their consequences and is expressed as "the ends justify the means"?

Accepted Answer

A teleological theory,utilitarianism judges our actions as good or bad depending on their consequences.This is sometimes expressed as "the ends justify the means."

Question 8

Which of the following ethical theories emphasizes that certain human rights are fundamental and must be respected by other humans?

Accepted Answer

Rights theory encompasses a variety of ethical philosophies holding that certain human rights are fundamental and must be respected by other humans.

Question 9

_____ ethical theories focus on the consequences of a decision.

Accepted Answer

Theories that focus on the consequences of a decision are teleological ethical theories.

Question 10

The _____ requires a public company to disclose whether it has adopted a code of ethics for senior financial officers,and to disclose any change in the code or waiver of the code's application.

Accepted Answer

The Sarbanes-Oxley Act requires a public company to disclose whether it has adopted a code of ethics for senior financial officers,and to disclose any change in the code or waiver of the code's application.

Question 11

______ requires a decision maker to ensure the maximum good for the maximum number.

Accepted Answer

Utilitarianism tries to achieve the greatest good possible for society as a whole.

Question 12

Which ethical theory justifies the protection of a neo-Nazi's right to hateful speech,even though the cost of such speech includes damage to relations between ethnic groups,which may far outweigh any benefits the society receives from the speech?

Accepted Answer

Rights theory does not concern itself with the costs or benefits of requiring respect for another's right;it looks at an individual's rights as absolute.

Question 13

Which of the following ethical theories is a deontological theory?

Accepted Answer

Rights theory is a deontological theory because it focuses on decisions or actions alone.

Question 14

Which of the following ethical theories requires decision makers to maximize utility for the society as a whole?

Accepted Answer

In utilitarianism,the focus is on society as a whole and a utilitarian will act only if the benefits of the action to society outweigh the societal costs of the action.

Question 15

Profit maximization results in ethical conduct because:

Accepted Answer

Profit maximization results in ethical conduct because it requires society's members to act within the constraints of the law.A profit maximizer acts ethically by complying with society's mores as expressed in its laws.

Question 16

_____ categorizes using or manipulating others as an unethical action.

Accepted Answer

Kant had a formulation of the categorical imperative: "Always act to treat humanity,whether in yourself or in others,as an end in itself,never merely as a means." That is,we may not use or manipulate others to achieve our own happiness.

Question 17

Which of the following ethical theories has been criticized for promoting moral fanaticism and reducing innovation,entrepreneurship,and production?

Accepted Answer

Critics of Rights theory contend that it promotes moral fanaticism and creates a sense of entitlement,thus,reducing innovation,entrepreneurship,and production.

Question 18

_____ theory emphasizes that one should use the categorical imperative and judge an action by applying it universally.

Accepted Answer

Kant viewed humans as moral actors that are free to make choices.He believed humans are able to judge the morality of any action by applying his famous categorical imperative.One formulation of the categorical imperative is,"Act only on that maxim whereby at the same time you can will that it shall become a universal law." This means that we judge an action by applying it universally.

Question 19

_____ is a teleological ethical theory because it focuses on results by maximizing total social welfare.

Accepted Answer

By focusing on results-maximizing total social welfare-profit maximization is a teleological ethical theory.

Question 20

Kurt is trying to decide whether or not he should drive to work every day and has a number of questions.Will it save valuable time? Will he be adding to environment pollution? Will it add to the problems of heavy traffic on the roads? Would carpooling be a better idea? Which of the following ethical theories does Kurt adhere to?

Accepted Answer

Act utilitarianism judges each act separately,assessing an act's benefits and costs to society.

Quiz 4: Business Ethics, Corporate Social Responsibility, Corporate Governance, and Critical Thinking