Question 1

Mariah works in the public relations department of New Trends Sales Company.Her job includes portraying New Trends's activities in their best light.In this context,ethics consist of
A)a different set of principles from those that apply to other activities.
B)the same moral principles that apply to non-business activities.
C)those principles that produce the most favorable financial outcome.
D)whatever saves New Trends's "face."

Accepted Answer

Ethics in public relations, as in any other aspect of life, consist of the same moral principles that apply to non-business activities. This includes honesty, integrity, fairness, and respect for others. Portraying New Trends's activities in their best light should not compromise these moral principles.

Question 2

To assist in detecting illegal bribes,Cut Rite Contractors,Inc. ,and all U.S.companies,must
A)conceal financial records that reveal past bribes.
B)keep records that "accurately and fairly" reflect financial activities.
C)make bribes through third parties rather than directly to officials.
D)permit payments to foreign officials that are unlawful in that country.

Accepted Answer

Keeping records that accurately and fairly reflect all financial activities can help identify any illegal bribes or payments made by the company. Concealing records or making illegal payments through third parties would only further hide any illegal activity, while permitting payments that are unlawful in a foreign country would violate both U.S. and international law.

Question 3

A common ethical dilemma faced by the management of General Holdings Corporation involves the effect that its decision will have on
A)one group as opposed to another.
B)the firm's competitors.
C)the government.
D)the U.S.Chamber of Commerce.

Accepted Answer

The most common ethical dilemma faced by management involves deciding between actions that benefit one group while potentially harming another. It is important for management to consider the impact of their decisions on all stakeholders, including employees, shareholders, customers, and communities. Considering only the interests of one group at the expense of another can lead to negative consequences and ethical challenges.

Question 4

John is sales manager for Kleen 'N Brite Products,Inc.Compared to John's personal activities,his business activities most likely involve
A)more complex ethical issues.
B)no ethical issues.
C)simpler ethical issues.
D)the same ethical issues.

Accepted Answer

Business activities typically involve more complex ethical issues than personal activities due to the involvement of multiple stakeholders, such as customers, employees, shareholders, and the community. Sales managers like John may face ethical dilemmas related to pricing, advertising, product quality, and customer relations, among others. These issues may require careful consideration of legal, social, and moral values and principles.

Question 5

Fealty Credit Corporation asks its employees to evaluate their actions and get on the ethical business decision-making "bandwagon." Guidelines for judging individual actions include all of the following except
A)an individual's conscience.
B)business rules and procedures.
C)loopholes in the law or company policies.
D)promises to others.

Accepted Answer

The guidelines for judging individual actions include an individual's conscience, business rules and procedures, and promises to others. However, loopholes in the law or company policies should not be considered as justification for unethical behavior.

Question 6

In making business decisions,Glenda,personnel manager for HVAC Maintenance,Inc. ,applies his 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 holds that all individuals have certain fundamental rights that should be respected and upheld. Glenda's belief in this principle indicates that she prioritizes the protection of individual rights in her business decisions.

Question 7

Any decision by the management of Fast-Food Franchise Corporation may significantly affect its
A)operators only.
B)operators,owners,suppliers,the community,or society as a whole.
C)owners only.
D)suppliers,the community,or society as a whole only.

Accepted Answer

Fast-Food Franchise Corporation is not an isolated entity, but operates within a larger ecosystem that includes operators, owners, suppliers, the community, and society as a whole. Therefore, any decision made by the management of the corporation will impact these stakeholders and may have significant consequences.

Question 8

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

Accepted Answer

The answer of Ethical standards would most likely be considered...

Question 9

Ergonomic Corporation convenes its employees for its managers to announce (1)a new company-wide ethical code of conduct, (2)an ad campaign to publicize the new code,and (3)the discharge of employees who do not adhere to the code.One of the most effective ways to set a tone of ethical behavior within a business organization is
A)to create an ethical code of conduct.
B)to discharge employees who do not create the appearance of impropriety.
C)to post a marketing campaign online touting the firm's ethical tone.
D)for management to direct employees to "do as we say,not as we do."

Accepted Answer

Creating an ethical code of conduct sets clear expectations for employees and establishes a culture of ethical behavior within the organization. Discharging employees who do not adhere to the code may be necessary, but it should not be the primary way of setting a tone of ethical behavior. A marketing campaign can help promote the new code, but it alone cannot establish a culture of ethical behavior. Directing employees to "do as we say, not as we do" is not ethical leadership and undermines the credibility of the ethical code of conduct.

Question 10

Housemate,Inc. ,makes and sells a variety of household products.With a fair amount of certainty,Housemate's decision makers can predict whether a given business action would be legal in
A)all situations.
B)many situations.
C)no situations.
D)practically no situations.

Accepted Answer

While there may be certain extreme or unusual circumstances where a given business action may not be legal, in general, Housemate's decision makers can reasonably predict whether a given business action will be legal in many situations. This is likely due to the extensive legal regulations and precedents in the area of household products, as well as Housemate's experience in navigating legal requirements.

Question 11

Kennedy Capital Corporation provides other firms with funds to expand op?erations.If Kenney strictly complies with existing laws,the firm will
A)fulfill all business ethics obligations.
B)fulfill no business ethics obligations.
C)fulfill some business ethics obligations.
D)not need to fulfill any business ethics obligations.

Accepted Answer

By providing funds to other firms, Kennedy Capital Corporation has a responsibility to ensure that the funds are used ethically and in compliance with all laws and regulations. This implies that the firm has at least some business ethics obligations. However, the extent of these obligations may vary depending on the specific laws and regulations governing the industry and the type of funds being provided. Therefore, the best choice is C, which states that Kennedy will fulfill some business ethics obligations.

Question 12

Bilt-Well Construction Corporation makes a side payment to a govern?ment official in Nigeria to obtain a contract.In the United States,this is
A)illegal and unethical.
B)illegal but not unethical.
C)unethical but not illegal.
D)legal and ethical.

Accepted Answer

Making a side payment to a government official in order to obtain a contract is considered bribery and is both illegal and unethical in the United States.

Question 13

Flexo Trucking Company transports hazard?ous waste.Garn is a Flexo driver,whom the company knows drives longer hours than federal regulations permit.One night,Garn exceeds the limit and has an accident.Spilled chemicals contaminate Hill City's water source,forcing the residents to move away.Flexo acted unethically because
A)Flexo showed reckless disregard for Hill City's residents and others.
B)Garn exceeded the federal time limit.
C)harm was caused by an unfortunate accident.
D)Hill City should have better protected its water source.

Accepted Answer

Flexo acted unethically by knowingly allowing Garn to drive longer hours than federal regulations permit, which showed reckless disregard for the safety and well-being of Hill City's residents and others. The harm caused by the spill was not an unfortunate accident, but rather a direct result of Flexo's unethical actions. It is not appropriate to blame Hill City for not better protecting its water source in this situation.

Question 14

Lyle,vice-president of sales for Mi-T Electric,Inc. ,adheres to Judeo-Christian relig?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 usually absolute in nature, meaning they are based on fixed moral principles that should be followed regardless of the situation.

Question 15

Chuckie,president of DrinkUp Fresh Beverages,Inc. ,does not ap?ply utilitarianism to business ethical issues.One problem with utilitari?an?ism is that it
A)gives business profits priority over production costs.
B)ignores the practical costs of a given set of circumstances.
C)requires complex cost-benefit analyses of simple situations.
D)tends to justify human costs that many find unacceptable.

Accepted Answer

Utilitarianism justifies actions based on their ability to produce the greatest amount of happiness or pleasure for the greatest number of people. This can lead to justifying actions that have negative consequences for certain individuals or groups in the pursuit of overall happiness. Many find this unacceptable from an ethical standpoint, and this is likely why Chuckie does not apply utilitarianism in his business ethics.

Question 16

Halley,a lawyer on the staff of International Group,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 rather than the inherent morality or nature of the action. Therefore, Halley's approach as a lawyer is to determine the action that will result in the greatest overall benefit to society.

Question 17

Spencer Hydraulics Corporation's ethics committee is asked a business ethics question-should the firm bid low to obtain a contract that it knows it can fulfill only at a higher price? A practical method to investigate and solve this question involves all of the following steps except
A)absolution.
B)decision.
C)inquiry.
D)justification.

Accepted Answer

Absolution, which means forgiving or pardoning, is not a relevant step in investigating and solving a business ethics question. The other three steps - decision, inquiry, and justification - are all necessary for a practical method to investigate and solve the question.

Question 18

Made4U Goods,Inc. ,asks its employees,many of whom are mem?bers of the National Machinists Union,to apply the utilitarian theory of ethics.This theory does not require
A)a choice among alternatives to produce the maximum so?cietal utility.
B)a determination of whom an action will affect.
C)an assessment of the effects of alternatives on those affected.
D)the acquiring of the means of production by workers.

Accepted Answer

The utilitarian theory of ethics does not require the acquiring of means of production by workers. Rather, it focuses on making choices that produce the maximum societal utility by assessing the effects of alternatives on those affected and determining whom an action will affect. So, options A, B, and C are required by the utilitarian theory of ethics.

Question 19

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

As a professional accounting firm, Peak & Vale has an ethical duty beyond those duties mandated by law to uphold the integrity of their profession and act in the best interest of their clients. While they also have legal obligations, ethical considerations may require them to go above and beyond what is legally required.

Question 20

In making decisions for United Merchandising Company,Vance uses a cost-benefit analysis.This is part of
A)duty-based ethics.
B)Kantian ethics.
C)the principle of rights.
D)utilitarianism.

Accepted Answer

Cost-benefit analysis is a tool used in utilitarianism which aims to maximize overall happiness or satisfaction by weighing the costs and benefits of different options. Therefore, Vance's use of cost-benefit analysis aligns with utilitarianism.

Quiz 5: B: Ethics and Business Decision Making

Mariah works in the public relations department of New Trends Sales Company.Her job includes portraying New Trends's activities in their best light.In this context,ethics consist of

To assist in detecting illegal bribes,Cut Rite Contractors,Inc. ,and all U.S.companies,must

A common ethical dilemma faced by the management of General Holdings Corporation involves the effect that its decision will have on

John is sales manager for Kleen 'N Brite Products,Inc.Compared to John's personal activities,his business activities most likely involve

Fealty Credit Corporation asks its employees to evaluate their actions and get on the ethical business decision-making "bandwagon." Guidelines for judging individual actions include all of the following except

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

Any decision by the management of Fast-Food Franchise Corporation may significantly affect its

Ethical standards would most likely be considered violated if Retail Mart Corporation deals with a company in a developing nation that

Housemate,Inc. ,makes and sells a variety of household products.With a fair amount of certainty,Housemate's decision makers can predict whether a given business action would be legal in

Kennedy Capital Corporation provides other firms with funds to expand op?erations.If Kenney strictly complies with existing laws,the firm will

Bilt-Well Construction Corporation makes a side payment to a govern?ment official in Nigeria to obtain a contract.In the United States,this is

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

Chuckie,president of DrinkUp Fresh Beverages,Inc. ,does not ap?ply utilitarianism to business ethical issues.One problem with utilitari?an?ism is that it

Halley,a lawyer on the staff of International Group,applies the utilitarian theory of ethics in business contexts.Utilitarianism focuses on

Spencer Hydraulics Corporation's ethics committee is asked a business ethics question-should the firm bid low to obtain a contract that it knows it can fulfill only at a higher price? A practical method to investigate and solve this question involves all of the following steps except

Made4U Goods,Inc. ,asks its employees,many of whom are mem?bers of the National Machinists Union,to apply the utilitarian theory of ethics.This theory does not require

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

In making decisions for United Merchandising Company,Vance uses a cost-benefit analysis.This is part of