Question 1

A _____ argument states that we should or should not do something merely because one or more other people or firms do or do not do it.

Accepted Answer

This is a classic example of the bandwagon fallacy, where the argument tries to convince someone to do something just because others are doing it, without giving any logical reasoning.

Question 2

Debra asks Alex, her stock broker, if she can trust his advice to purchase the stocks for Acme Co. Alex replies, "Of course you can." Debra asks, "Why should I trust you?" Alex says, with a smile, "Because I am a trustworthy person." Alex is engaging in:

Accepted Answer

Alex is engaging in circular reasoning by using his conclusion as evidence for his argument. He is essentially saying "you can trust me because I am trustworthy," without providing any actual evidence or reasoning to support his claim.

Question 3

Speedster is an automobile manufacturing company that has a factory in Seattle, Washington. It has placed Keith McShane, the operations head of the factory, in charge of investigating the firm's decision whether to move the factory to Qingdao, China. Keith is against the idea of the factory relocating to Qingdao because his fellow Americans will loose their jobs to the Chinese. Therefore, he is desperately searching for information that favors Seattle over Qingdao. Which of the following prescribed guidelines for ethical decision making will Keith need to focus on to make an unbiased, ethical decision?

Accepted Answer

Keith should focus on gathering all the relevant and unbiased facts that impact the decision of relocating the factory. This will help him make a well-informed and ethical decision that aligns with the company's values and goals, rather than being swayed by personal biases or interests. The other options (A, C, and D) do not address the central ethical concern of making a fair and unbiased decision that prioritizes the company's welfare and social responsibility.

Question 4

Bob DeSlob, CEO of Westlake, Inc., had supported the development and distribution of the Super Widget, a product that is expensive to make. The Super Widget failed to meet its expected sales. Bob, now, decides to invest more resources to produce and aggressively market the Super Widget, rationalizing that if he did not invest more in the product, what he has invested would be lost. Bob is engaging in:

Accepted Answer

Bob is engaging in sunk cost fallacy by investing more resources in the Super Widget despite it failing to meet expected sales. He is rationalizing that he needs to invest more to avoid losing what he has already invested, which is an incorrect way of thinking.

Question 5

An "argumentum ad populum" used in an argument is a wrong conclusion:

Accepted Answer

An "argumentum ad populum" is a fallacy that relies on the idea that a popular belief is true, regardless of whether there is evidence to support it or not. Just because a lot of people believe something does not make it true.

Question 6

What two conditions must be met if profit-maximization is to maximize utility?

Accepted Answer

The answer of What two conditions must be met if...

Question 7

"Your decision will be better for your firm and other stakeholders if you consider your selfish interest." Considering that this statement is true, which of the following prescribed guidelines for ethical decision making should you focus on?

Accepted Answer

The guideline that should be focused on is how the alternatives impact the decision maker. This is because the statement suggests that considering one's own selfish interest would lead to a better decision for the firm and other stakeholders. Therefore, the decision maker should consider how the alternatives will impact them personally in order to make the best decision for everyone involved. The other options, such as shareholder support or increasing the number of shareholders, do not address the personal impact of the decision maker and may not necessarily result in the best decision for all stakeholders.

Question 8

Jack flipped a coin five times and each time it came up heads. His friend Atmel saw this and bet Jack that the next flip would come up tails. Atmel figured that it was overdue for a tails and so tails was a more likely outcome in the next flip. Atmel has fallen prey to:

Accepted Answer

Atmel has fallen prey to the gambler's fallacy, which assumes that future probabilities are impacted by past events, when in reality each flip of the coin is an independent event with a 50/50 chance of coming up heads or tails. Just because the previous five flips came up heads does not change the probability of the next flip coming up tails.

Question 9

A "non-sequitur" used in an argument is a conclusion:

Accepted Answer

A non-sequitur is a conclusion that does not logically follow from the premises or facts presented, meaning it is irrelevant or invalid in the context of the argument.

Question 10

Bill, a senior manager at Bizlaw, Inc., instructs Kim, a mid-level manager, to make false statements on the performance evaluation of Gloria, one of Kim's employees who has recently filed a discrimination claim against Bill. Bill tells Kim, "Look around you. Every manager makes up stories about employees Bizlaw wants to get rid of." Bill's argument illustrates:

Accepted Answer

Bill's argument illustrates the bandwagon fallacy, which is an appeal to popularity or the idea that because many people do something, it is acceptable or correct.

Question 11

Trisha has been given the responsibility of making an important decision for her firm. Which of the following actions strengthens the argument that Trisha is a justice theorist?

Accepted Answer

A justice theorist would choose the alternative that allocates society's benefits and burden most fairly.This requires the decision maker to consider whether everyone is getting what they deserve.

Question 12

Which of the following critical thinking errors is likely to occur among the subordinates if a leader is unethical?

Accepted Answer

The bandwagon fallacy is likely to occur among subordinates if a leader is unethical. This is because they may feel pressure to go along with the unethical behavior in order to fit in or avoid negative consequences. The other options do not directly relate to the influence of an unethical leader on subordinates' critical thinking.

Question 13

The last tactic to adopt in resisting a request to act unethically is to:

Accepted Answer

If all other tactics fail and it becomes clear that acting unethically is the only option remaining, preparing to leave the job may be the best course of action. Ultimately, it is better to preserve one's integrity than to compromise it for the sake of a job.

Question 14

Which of the following attacks the speaker for his argument, not his reasoning?

Accepted Answer

Argumentum ad hominem attacks the speaker instead of addressing the argument or reasoning. The other choices do not relate to attacking the speaker.

Question 15

Carol, an Acme Co. employee, regularly takes pens, paper, and other office supplies from the Acme office supply cabinet and brings them home for her husband to use in his home office. Carol defends this action by saying that: "I don't get paid enough, and besides, no one will miss the supplies." This statement is an example of:

Accepted Answer

Carol's statement about her pay and the assumption that no one will miss the supplies are not logically relevant to her decision to take office supplies home for personal use, making it a non sequitur fallacy.

Question 16

How can a corporation improve its corporate governance and corporate responsibility?

Accepted Answer

The answer of How can a corporation improve its corporate...

Question 17

Guilty by association is a form of:

Accepted Answer

Guilty by association is a form of argumentum ad hominem because it attacks the character or group associated with the argument rather than addressing the argument itself.

Question 18

Bennett is in the process of making an important decision for his firm. Which of the following actions strengthens the argument that Bennett is a utilitarian?

Accepted Answer

Utilitarianism is a normative ethical theory that states that ethical decisions should be based on maximizing the overall happiness or "utility" of society as a whole. Therefore, if Bennett chooses the alternative that promises the highest net welfare to society as a whole, it shows that he is making a utilitarian decision.

Question 19

What three things are seen in the corporate scandals of 2002, such as Enron and WorldCom?

Accepted Answer

The answer of What three things are seen in the...

Question 20

Which of the following is also called the slippery slope fallacy?

Accepted Answer

The slippery slope fallacy is also known as reductio ad absurdum, which argues that one event will lead to a chain reaction of negative events without providing evidence to support this claim.

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