Business Ethics and Society Flashcards
Which of the following companies was NOT implicated in a scandal in the early 2000s?
A) Enron
B) Coca-Cola
C) Tyco International
D) All of the above were implicated in scandals
The correct answer is D:) All of the above were implicated in scandals. Due to the various different scandals occurring in the early 2000s, federal regulations concerning businesses were tightened. One example of this is the Sarbanes-Oxley Act.
Command and control regulations
A) Prevent a person in a position of power from exploiting their power for their own benefit.
B) Allow a lawyer to withdraw legal representation for their client.
C) Regulate how a company should manage certain processes that pollute the environment.
D) Make it illegal for any person to bribe a foreign official.
The correct answer is C:) Regulate how a company should manage certain processes that pollute the environment.
The purpose of the International Monetary Fund is to
A) Help developing countries strengthen their economies.
B) Prevent international trade crises.
C) Loan money to individual banks so that they don’t go bankrupt.
D) Meticulously track the flow of currency from country to country.
The correct answer is B:) Prevent international trade crises. It regulates the trade deficits of countries, and can loan them money if it is necessary.
Considered from an ethical standpoint, MNCs should
A) Conform to the labor standards of the country in which the particular business operates.
B) Conform to the highest standards in all businesses whether overseas or not.
C) Pick and choose with its businesses which laws to conform to.
D) Refuse to engage in outsourcing as it can only be harmful to the origin country’s economy.
The correct answer is B:) Conform to the highest standards in all businesses whether overseas or not. However, this can be expensive and hinder the business’ effectiveness. Therefore, the ethical and financial interests are at odds.
Which of the following describes a type of conflict of interest where a broker owns securities and spreads rumors about them to make the price go up, then sells them before the price goes back down?
A) Pump and dump
B) Family interest
C) Self-dealing
D) Outside employment
The correct answer is A:) Pump and dump.
Which of the following is true about spam?
A) It is messages sent electronically to a large number of people.
B) It is unsolicited.
C) It can be send through email, instant messaging, blogs or other electronic methods.
D) All of the above
The correct answer is D:) All of the above.
Business ethics is
A) A highly specialized brand of ethics which focuses on the correctness of businesses contributing to political campaigns.
B) A branch within most companies which works to ensure that employees are not cheating the business in any way.
C) An attempt to apply moral and ethical principles to business actions.
D) None of the above
The correct answer is C:) An attempt to apply moral and ethical principles to business actions. Although answer A may be one area to which business ethics could be applied, answer C is the most correct.
A noisy withdrawal would be done by which of the following?
A) Lawyers
B) Police officers
C) Managers
D) All of the above
The correct answer is A:) Lawyers. A noisy withdrawal is when a lawyer becomes aware of frauds committed by their client and withdraws legal representation for their client.
Noisy withdrawal is
A) The study of designing more comfortably or easily used equipment.
B) When a person is in a position to exploit their power for their own benefit.
C) A moral theory which claims that the morality of an action is determined by the morality of the action itself – regardless of the consequence.
D) When a lawyer withdraws legal representation for their client and notifies the proper authorities.
The correct answer is D:) When a lawyer withdraws legal representation for their client and notifies the proper authorities.
What is environmental justice?
A) When companies consider environmental issues when they make business decisions.
B) When issues are brought before a court which involve environmental factors.
C) A move toward equality among all races in issues relating to environmental hazards.
D) A collective movement by governments worldwide to decrease the emission of greenhouse gases.
The correct answer is C:) A move toward equality among all races in issues relating to environmental hazards.
A conflict of interest is
A) The study of designing more comfortably or easily used equipment.
B) When a person is in a position to exploit their power for their own benefit.
C) A moral theory which claims that the morality of an action is determined by the morality of the action itself – regardless of the consequence.
D) When a lawyer withdraws legal representation for their client and notifies the proper authorities.
The correct answer is B:) When a person is in a position to exploit their power for their own benefit.
A software designer knows that there are some minor problems with the software they are developing. However, if they wait to declare the product finished, it will not be released before another similar product, which would be highly damaging to its success. From the standpoint of an act utilitarian, the person would most likely
A) Consider the people that will be using the software and wait to release it because it would not be fair to them to sell a damaged product.
B) Decide that the benefits of releasing the software now outweigh the costs, and present the product as finished.
C) Release the software even with its flaws because their good intentions of protecting the products popularity absolve them of any feeling of dishonesty.
D) None of the above
The correct answer is B:) Decide that the benefits of releasing the software now outweigh the costs, and present the product as finished.
The CEO of a company works to raise stock prices because they will get a bonus if stock prices increase by a certain percentage. Which of Kohlberg’s stages are they in?
A) Stage 2
B) Stage 3
C) Stage 4
D) Stage 6
The correct answer is A:) Stage 2. In this stage, people are most concerned with obtaining rewards, such as a bonus because of a rise in stock prices.
If a person owns a cupcake business and works in a cupcake factory, what type of conflict of interest is it considered?
A) Pump and dump
B) Family interest
C) Self-dealing
D) Outside employment
The correct answer is D:) Outside employment. This is when a person has two jobs which conflict with each other.
Which of the following terms describes a moral theory which derives morality from actions?
A) Teleological ethics
B) Consequentialism
C) Deontological ethics
D) None of the above
The correct answer is C:) Deontological ethics. Deontological ethics claims that the morality of an action is determined by the morality of the action itself – regardless of the consequence.
Which of the following statements is TRUE?
A) According to teleological ethics an action’s morality is determined based on its consequence.
B) According to Kantian ethics an action’s morality is determined based on its consequence.
C) According to deontological ethics an action’s morality is independent of its consequence.
D) According to consequentialism an action’s morality is independent of its consequence.
The correct answer is A:) According to teleological ethics an action’s morality is determined based on its consequence. Teleology is a type of consequentialism.
Which of the following best describes soft money?
A) Money that is donated to political parties for the purpose of party building activities.
B) Money that the government injects into the economy for a short time to stimulate investment.
C) Money that is donated to political candidates to help fund their campaigns.
D) Money that is not based on the gold standard, but rather holds its value on the faith of citizens.
The correct answer is A:) Money that is donated to political parties for the purpose of party building activities. It used to be that soft money was not regulated as strictly and it was an easy way for wealthy individuals and corporations to get around hard money contribution limits.
Which of the following situations would be considered moral under Kantian theory?
A) Studying for a test because you know that if you do, then you will do well on the test.
B) Stealing from a store because you know that if you do then you will have nicer things and be happier.
C) Helping an elderly neighbor because you feel sorry that they have no one to help them.
D) Telling the truth because you think that it is the right thing to do.
The correct answer is D:) Telling the truth because you think that it is the right thing to do. Kant believed that emotions and consequences were irrelevant to morality.
The president of a company must decide whether to continue to sell textbooks that he knows have incorrect information in them or not. Considered from the standpoint of Kantian ethics, the president would most likely
A) Discontinue the sale of the textbooks because of a perceived responsibility to society.
B) Continue the sale of the textbooks because as a general rule the practice is not unconditional.
C) Discontinue the sale of the textbooks because as a general rule the practice is not unconditional.
D) Continue the sale of the textbooks because it would be detrimental to the company to cease sales.
The correct answer is C:) Discontinue the sale of the textbooks because as a general rule the practice is not unconditional.
A manager implements new safety procedures because they feel obligated to protect the safety of their employees. Which of Kohlberg’s stages does this describe?
A) Stage 3
B) Stage 4
C) Stage 5
D) Stage 6
The correct answer is C:) Stage 5. In this stage, people act because they feel an obligation to society, like the manager feels an obligation to protect their workers.
Which of the following is a standard which aids companies in improving their environmental practices?
A) ISO 14001
B) ISO 2052
C) Clean Air and Water Act
D) Both A and B
The correct answer is A:) ISO 14001. ISO 14001 is a voluntary standard which attempts to aid companies in creating continually improving practices.
Hiring family members would be considered which type of conflict of interest?
A) Pump and dump
B) Nepotism
C) Outside employment
D) Self-dealing
The correct answer is B:) Nepotism. Nepotism, or family interest, refers to considering the interests of family ahead of what is truly best for the business. It can occur in terms of hiring, firing, promoting, employment benefits or other factors.
The Alien Tort Claims Act
A) Regulates the marketing and sale of potentially dangerous products.
B) Prevents U.S. citizens from exercising legal rights in foreign countries.
C) Creates equal trade of agricultural products among all nations.
D) Allows foreign citizens to bring a citizen of the United States to trial in the United States.
The correct answer is D:) Allows foreign citizens to bring a citizen of the United States to trial in the United States. This is useful for preventing multinational corporations for engaged in illegal business practices in countries outside the United States.
Which of the following is NOT a type of loophole that developed in response to limitations placed on hard money contributions?
A) Issue ads
B) Non-point source contributions
C) PACs
D) Independent expenditures
The correct answer is B:) Non-point source contributions. The correct term is nonpoint source pollution and it is not related to campaign contributions.
The purpose of the World Bank is to
A) Help developing countries strengthen their economies.
B) Prevent international trade crises.
C) Loan money to individual banks so that they don’t go bankrupt.
D) Monitor the flow of valuable materials from country to country.
The correct answer is A:) Help developing countries strengthen their economies. The World Bank has the responsibility of fostering economic development. It loans with the purpose of the countries using that money to grow economically and then be able to pay back the loan.
A person helps an old lady across the street because they think that it is the right thing to do, and makes them feel useful and happy. Which of Kohlberg’s stages are they in?
A) Pre-conventional
B) Conventional
C) Nominal
D) Post conventional
The correct answer is D:) Post conventional. In the post conventional stage, a person is ruled by conscience instead of society.
A child cleans their room so that they will be allowed to go to a friend’s house. Which of Kohlberg’s stages are they in?
A) Pre-conventional
B) Conventional
C) Post conventional
D) Nominal
The correct answer is A:) Pre-conventional. In the pre-conventional stage the main goal of a person is survival. The justification of actions comes from a simple understanding of punishment and reward systems.
Which of the following is NOT related to the interactions that occur between government and businesses?
A) Bipartisan Campaign Reform Act
B) Federal Election Campaign Act
C) Truth in Advertising regulations
D) All of the above are related to government and business interactions
The correct answer is D:) All of the above are related to government interactions. The laws named in answers A and B relate to how businesses can donate to political campaigns. Truth in advertising regulations are a way that governments regulate businesses.
Which of the following statements is NOT true?
A) The debate over the ethics of bluffing is ongoing.
B) It is only logical that a businessperson would feel obliged to in many cases to not share all of the information available to them, and to bluff where necessary to achieve the best outcome for the company.
C) Any company that is caught bluffing in negotiations for government contracts is immediately brought under investigation by the SEC and those involved may face criminal charges.
D) In many cases bluffing and deception can be a large hindrance to the progression of negotiations and just make it more difficult for all involved. It can also cause a bad reputation to be formed of an executive or company that would be detrimental.
The correct answer is C:) Any company that is caught bluffing in negotiations for government contracts is immediately brought under investigation by the SEC and those involved may face criminal charges.
Which of the following moral theories considers the action resulting in the greatest benefit to all people as the most moral action?
A) Act utilitarianism
B) Rule utilitarianism
C) Relativism
D) Deontology
The correct answer is A:) Act utilitarianism. This practice is called maximizing utility.
Cost benefit considerations would be most typical of which of type of ethics?
A) Consequentialism
B) Egoism
C) Kantian
D) Utilitarianism
The correct answer is D:) Utilitarianism. The idea behind utilitarianism is to “maximize utility.” In other words the focus is on considering the benefits and costs and if the benefits are greater than the costs then the action is moral.
Which of the following acts conflict with the Privacy Act of 1974?
A) Patriot Act
B) US Foreign Corrupt Practices Act
C) Sarbanes-Oxley Act
D) Bipartisan Campaign Reform Act
The correct answer is A:) Patriot Act.
Which of the following is NOT a responsibility that should be considered by businesses?
A) Economic
B) Fiduciary
C) Philanthropic
D) Legal
The correct answer is B:) Fiduciary. The four types of responsibility are economic, legal, ethical and philanthropic.
Which of the following statements is FALSE about the merger between Delta Air Lines and Northwest Airlines in 2008?
A) The merge brought into question whether or not the new airline would have market power because it was the largest airline in the world.
B) It was determined that the merge did not create a monopolistic situation because the two airlines were focused in different areas.
C) Because Delta and Northwest are not the only two airlines there is no way that the merge could be considered anticompetitive.
D) All of the above statements are true.
The correct answer is C:) Because Delta and Northwest are not the only two airlines there is no way that the merge could have been considered anticompetitive. If the merge had created a monopolistic situation, such as if Delta and Northwest were the only two airlines which had flights to New York (or another city), than the merge would have been anticompetitive.
Which of the following is NOT an example of how corporate espionage can occur?
A) Hacking into a company’s computer systems
B) Bugging a competitor’s office
C) Digging through a competitor’s trash cans
D) All of the above are examples of corporate espionage
The correct answer is D:) All of the above are examples of corporate espionage.
Which type of responsibility is the LEAST regulated?
A) Economic
B) Legal
C) Ethical
D) Philanthropic
The correct answer is D:) Philanthropic. Because philanthropic responsibilities are essentially charitable acts, it is fundamentally impossible for there to be any sort of requirements or regulations surrounding them.
Corporate citizenship is
A) A policy which demands that a company “gives back” to the communities in which it operates.
B) The responsibility of a business to ensure the maximum returns to its investors.
C) A system of accountability, oversight and control within the company.
D) The consideration of large companies about the well-being of society when they make business decisions.
The correct answer is D:) The consideration of large companies about the well-being of society when they make business decisions. Corporate citizenship is also referred to as corporate social responsibility (CSR).
Which of the following statements about Corporate Social Responsibility is FALSE?
A) It describes the consideration of large companies about the well being of society when they make business decisions.
B) It is unanimously agreed that there is a dire need for it in today’s society.
C) It requires that companies consider people and the environment along with their own profit.
D) All of the above statements are true.
The correct answer is B:) It is unanimously agreed that there is a dire need for it in today’s society. Some feel that CSR disrupts the normal function of an economy and over regulates business practices. Others feel that this fact outweighs the negative impacts caused by irresponsible business practices.
Businesses with a mindset of “the customer is always right” often find themselves subject to more of which type of fraud?
A) Consumer
B) Accounting
C) Marketing
D) More than one of the above
The correct answer is A:) Consumer. A mindset of “the customer is always right” denotes that a company works to please and cater to its customers. This gives customers more room to manipulate or deceive the business.
Fossil fuels are a
A) Renewable resource
B) Non-point source pollutant
C) Non-renewable resource
D) Threat to environmental justice
The correct answer is C:) Non-renewable resource. Non-renewable resources are resources which either cannot be replenished, or which, like fossil fuels, take millions of years to do so.
The merger between Delta Air Lines and Northwest Airlines raised concerns about which of the following?
A) Monopolies
B) Government intervention in the economy
C) Tariffs
D) Subsidies
The correct answer is A:) Monopolies. The merger resulted in Delta becoming the largest airline in the world, and it had to be determined whether it would give them market power.
Ethical and philanthropic responsibilities are important in building
A) Reputation
B) Gross profit margins
C) Corporate governance
D) None of the above
The correct answer is A:) Reputation. Good ethics and philanthropic actions help a business in developing its reputation. A good reputation can take decades to develop, and can really make a difference in the success of a business. Reputation affects everyone from employees to investors to consumers. In a very real sense, a business’s reputation can be what gives it its value.
If a resource is used at the same rate at which it can be replenished it is described as
A) Environmental degradation
B) Environmental neutralization
C) Environmental equilibrium
D) Environmental renewal
The correct answer is C:) Environmental equilibrium. Although this is obviously preferable to environmental degradation, it is a fairly precarious balance.
Which of the following is NOT a reason that President Clinton’s attempt at health care reform in the early 1990s failed?
A) Poor timing. The proposal took so long to complete that people weren’t worried anymore.
B) Ethics. Most people felt that the program (which charged more for middle class people) was highly unethical and would not support it.
C) Politics. Congress members were annoyed that they had little involvement in its creation.
D) All of the above are correct reasons for the failure.
The correct answer is B:) Ethics. Most people felt that the program (which charged more for middle class people) was highly unethical and would not support it. Timing and political reasons, along with the role of insurance corporations in criticizing it, played the largest role in the failure of the bill.
Which of the following is NOT an attempt at creating a universal ethical standard?
A) Global Sullivan Principles
B) United Nations Global Compact
C) Caux Round Table
D) Universal Ethics Protocol Organization
The correct answer is D:) Universal Ethics Protocol Organization. Principles of the Global Sullivan Principles include promoting equality and respect for human rights, refusing to accept bribes and ensuring employee safety. The GSP has been accepted by over 30 large companies. The UN’s Global Compact similarly is signed by many large companies and focuses on protecting the environment, abolishing child labor and permitting unions to form. The Caux Round Table is an independent organization which works to teach and spread ethical practices to companies throughout the world.
Which of the following is NOT an example of social engineering?
A) Dumpster diving
B) Shoulder surfing
C) Password guessing
D) Phone eavesdropping
The correct answer is A:) Dumpster diving. Dumpster diving is a form of corporate espionage, but is not a form of social engineering. Shoulder surfing, password guessing and eavesdropping on phones are all common ways of social engineering however. Social engineering is using, tricking or deceiving individuals in an attempt to gain access to private information about a company.
Which of the following groups would not be considered a stakeholder?
A) Customers
B) Employees
C) Management
D) All of the above are stakeholders
The correct answer is D:) All of the above are stakeholders. Stakeholders are people who are affected by the decisions that the company makes. This can include not only the shareholders, but also the managers and other employees, people who reside in the area and customers of the company.
Which of the following is TRUE?
A) PACs are organized by SIGs
B) PACs and SIGs are organized by political parties
C) SIGs are organized by PACs
D) None of the above
The correct answer is A:) PACs are organized by SIGs. A special interest group (SIG) is any group which uses involvement in politics to further their beliefs and positions. Special interest groups do this by organizing political action committees (PACs).
Who has legal responsibility for a company’s actions in a corporation?
A) Chief Executive Officer
B) Board of Directors
C) Stakeholders
D) Shareholders
The correct answer is B:) Board of Directors. The board of directors holds legal responsibility for the success of the firm and use of its assets, however they rarely control the day to day management of the firm. Rather, the board meets a few times a year and the managers and corporate officers oversee the actual day to day workings of the business.
Which of the following is the best example of point source pollution?
A) An oil spill
B) Fertilizer runoff
C) Smoke stacks
D) Smog
The correct answer is A:) An oil spill. Point-source pollution is a term relating to water pollution that has a specific and identifiable source. Answer C is specific and identifiable, but it is a form of air pollution.
Which of the following terms is most synonymous with philanthropy?
A) Implied falsity
B) Reciprocity
C) Altruism
D) Egoism
The correct answer is C:) Altruism. Altruism refers to placing the needs of another above oneself, such as through philanthropic acts. Reciprocity is the idea of treating others how you would wish to be treated.
Which of the following statements is TRUE?
A) Trade secrets are new, non-obvious things that a company produces.
B) Trademarks are information that a company wishes to keep private.
C) Logos, jingles and brand names can all be examples of trademarks.
D) Patents can be obtained for written materials.
The correct answer is C:) Logos, jingles and brand names can all be examples of trademarks. A trademark is anything which can be used to identify a specific product.
Which of the following is NOT a regulation for insiders trading stock?
A) They must report stock trades within two business days of the trade
B) They cannot buy and sell within a six month time frame
C) They can only sell stock amounting to a 10 million dollar value at a time
D) All of the above are regulations over insider trading
The correct answer is C:) They can only sell stock amounting to a 10 million dollar value at a time. Answers A and B are required for insiders legally trading stock.
Which of the following is NOT a conflict of interest?
A) When a detective is involved with a case in which a close friend is a suspect.
B) When a Congressman votes on a bill which benefits them financially.
C) When a manager hires an employee who is also a close friend.
D) All of the above are conflicts of interest.
The correct answer is D:) All of the above are conflicts of interest.
The fact that in many cases a company’s worth is greater than the value of its tangible assets is referred to as
A) Corporate value
B) Social value
C) Goodwill
D) Equity
The correct answer is C:) Goodwill. There are intangible benefits which come as a result of having a good reputation and the intangible benefit that makes a company worth more when it is purchased by another company is referred to as goodwill.
Which of the following best describes rule utilitarianism?
A) A person considers an action independently of a situation and determines whether it is more often moral or immoral to determine how to classify it in all situations.
B) A person considers a situation and decides upon the easiest course of action.
C) A person considers an action and determines whether it would end favorably for them.
D) A person examines a situation, considers all possible actions they could take and decides which one would end most favorably for all involved.
The correct answer is A:) A person considers an action independently of a situation and determines whether it is more often moral or immoral to determine how to classify it in all situations.
A person is given the opportunity to volunteer at a local food bank. They consider the other things they could do at that time, such as cleaning and watching TV. They know that the work that they do could really benefit people at the food bank, whereas the other activities only benefit themselves. They decide that the service is the best decision for them. What type of ethical theory does their thought process and decision follow?
A) Rule utilitarianism
B) Act utilitarianism
C) Deontological theory
D) Ethical egoism
The correct answer is B:) Act utilitarianism. A person examines a situation, considers all possible actions they could take and decides which one would end most favorably for all involved.
Which of the following statements is TRUE?
A) A grease payment involves relatively large amounts of money in comparison to bribes.
B) A bribe involves extremely low level officials whereas a grease payment involves higher officials.
C) A grease payment makes things that would normally occur happen at a faster rate.
D) All of the above statements are incorrect.
The correct answer is C:) A grease payment makes things that would normally occur happen at a faster rate. In comparison, a bribe is an attempt to influence someone to act in a way that they normally would not. Therefore, bribes are illegal and grease payments are not.
If people object to something being built near their homes it is referred to as
A) NIMBY
B) NIMHS
C) NIMN
D) Residential objectivity
The correct answer is A:) NIMBY. This stands for “not in my backyard.”
Which of the following statements is TRUE?
A) Taxes have only positive impacts on the economy because they increase the amount of money that people spend which is healthy for the economy.
B) Taxes are universally bad. They are unethical, unnecessary and harmful to efficient market operations.
C) Taxes negatively impact efficient economic operations by driving a wedge between businesses and customers. However, they are often necessary.
D) None of the above statements are true.
The correct answer is C:) Taxes negatively impact efficient economic operations by driving a wedge between businesses and customers. However, they are often necessary. Taxes make it so the price that customers pay is higher than the revenue that the company receives. The mismatch makes the economy run less efficiently.
Arable land is used for
A) Farming
B) Home development
C) Business purposes
D) Landfills
The correct answer is A:) Farming. Arable land is suitable for agricultural uses, i.e., farming.
Which of the following is NOT a concern relative to outsourcing?
A) Language and cultural barriers
B) Security
C) Long distance management difficulties
D) All of the above are concerns about outsourcing
The correct answer is D:) All of the above are concerns about outsourcing. Other problems that arise are fraud, the qualifications of employees and questions about the responsibility of a company that outsources for the actions of the company it hires.
Which of the following moral theories is NOT consequentialist?
A) Teleology
B) Act utilitarianism
C) Egoism
D) Kantian ethics
The correct answer is D:) Kantian ethics. Kantian ethics determines morality based on the morality of the action itself, not its consequences. It is deontological.
Which of the following statements is TRUE?
A) Sustainable development requires that all people be prevented from overusing resources through government regulations.
B) Sustainable development emphasizes the development of new and innovative technologies to reduce the overuse of natural resources.
C) Sustainable development describes a tenuous state in which resource use is equal to consumption. While it can be sustained, it is not optimal.
D) None of the above
The correct answer is B:) Sustainable development emphasizes the development of new and innovative technologies to reduce the overuse of natural resources. Through developing new technologies that are more energy efficient, people can continue to operate as they had previously without having to sacrifice the health of the environment.
Which of the following lists the four P’s of advertising?
A) Product, Place, Promotion, Price
B) Protocols, Product, Place, Process
C) Place, Promotion, Product, Protocols
D) None of the above
The correct answer is A:) Product, Place, Promotion, Price. Each of these advertising factors has a number of ethical concerns involved with it.
Which of the following is NOT an unethical pricing strategy?
A) Dumping
B) Price cancellation
C) Price discrimination
D) Predatory pricing
The correct answer is B:) Price cancellation. Dumping, price discrimination and predatory pricing are all types of unethical pricing strategies.
Which of the following is NOT a rule for creating maxims under Kantian ethics?
A) A maxim must be unconditional
B) A maxim must be specific
C) A maxim must be universal
D) All of the above are rules for creating maxims
The correct answer is B:) The maxim must be specific. Maxims used in Kantian ethics are supposed to generalized.
Who is best known for creating the categorical imperative?
A) Lawrence Kohlberg
B) Jean Piaget
C) Immanuel Kant
D) John Stuart Mill
The correct answer is C:) Immanuel Kant. The categorical imperative is used to create the maxims which Kant believed morality should be determined using.
Which of the following statements would be most correct under a classical view of business?
A) Government regulations are useful in helping the economy run more efficiently.
B) Government regulations should be considered on a cost-benefit analysis.
C) Government regulations are always detrimental because the economy is selfcorrecting.
D) None of the above
The correct answer is C:) Government regulations are always detrimental because the economy is self-correcting.
Which act makes it illegal for US citizens to participate in bribes?
A) Sarbanes-Oxley Act
B) Anti-Bribery Act
C) Foreign Corrupt Practices Act
D) Whistleblower Act
The correct answer is C:) Foreign Corrupt Practices Act. The Foreign Corrupt Practice Act also makes it illegal for a person of any nationality to further a bribe while on United States soil.
An employee of a donut shop does not steal donuts because they are afraid they would get fired if they did. Which of Kohlberg’s stages are they in?
A) Stage 1
B) Stage 2
C) Stage 4
D) Stage 6
The correct answer is A:) Stage 1. In this stage a person is most concerned with avoiding punishment, such as getting fired.
Does the Foreign Corrupt Practices Act include grease payments?
A) Yes, grease payments are considered bribes and are therefore illegal under the FCPA.
B) Yes, grease payments are not considered bribes and are therefore illegal under the FCPA.
C) No, grease payments are considered bribes and are therefore not illegal under the FCPA.
D) No, grease payments are not considered bribes and are therefore not illegal under the FCPA.
The correct answer is D:) No, grease payments are not considered bribes and are therefore not illegal under the FCPA.
A stable state economy is in a state of
A) Sustainable development
B) Environmental renewal
C) Efficient energy consumption
D) Environmental equilibrium
The correct answer is D:) Environmental equilibrium.
Which of the following is NOT regulated by the FDA?
A) Blood transfusions
B) Illegal drugs
C) Vaccines
D) Cosmetics
The correct answer is B:) Illegal drugs. Illegal drugs are monitored by the Drug Enforcement Agency (DEA).
Which of the following is NOT a type of discrimination investigated by the EEOC?
A) Gender
B) Disability
C) Education
D) Religion
The correct answer is C:) Education. The EEOC investigates situations of discrimination based on age, gender, disability, race, color or religion.
The EEOC investigates violations of the
A) WARN Act
B) Kyoto Protocol
C) Sarbanes-Oxley Act
D) Civil Rights Act of 1964
The correct answer is D:) Civil Rights Act of 1964.
What does EEOC stand for?
A) Equivalent Employment Opening Committee
B) Equal Employment Opportunity Commission
C) Equivalent Employment Opportunity Commission
D) Equal Employment Opening Committee
The correct answer is B:) Equal Employment Opportunity Commission. The EEOC investigates discrimination based on age, gender, disability, race color and religion.
A business practices underhanded accounting practices to raise stock prices and make money. Which type of ethics does this fall under?
A) Social
B) Economical
C) Legal
D) Both A and C
The correct answer is B:) Economical. Economic ethics have to do with business and money related issues.
Which of the following describes in kind contributions?
A) When a person contributes to a cause because they are in a good mood.
B) When a person or company trades goods or services in place of money.
C) When a company receives federal aid to implement a required environmental safety program.
D) None of the above
The correct answer is B:) When a person or company trades goods or services in place of money. For example, donating lumber to an organization which builds homes for homeless people.
Which of the following is NOT a benefit which can come to companies as a result of sustainable business practices?
A) Assurance of the ability to operate in the future
B) Lower energy costs and waste disposal costs in the long run
C) Better relations with stakeholders
D) All of the above are possible benefits
The correct answer is D:) All of the above are possible benefits. There are many benefits which come to companies as a result of safe and sustainable practices, of which answers A, B and C are all examples.
What is the responsibility of the FDA?
A) To regulate the marketing and sale of potentially dangerous products.
B) To create regulations which limit the ability of grocery stores to advertise.
C) To create equal trade of agricultural products among all nations.
D) To ensure and protect public health and safety.
The correct answer is D:) To ensure and protect public health and safety. The FDA works to ensure that products are safe, sanitary and properly labeled.
Which of the following is regulated by the FDA?
A) Toys and appliances
B) Alcohol
C) Radioactive products
D) Advertisement
The correct answer is C:) Radioactive products. Advertisement of most products is not regulated by the FDA, and neither are toys, appliances or alcohol. However, radioactive products are regulated by the FDA because they are a threat to public safety.
The Kimberley Process Certification Scheme was created to stop the circulation of what?
A) Rough diamonds
B) Cut diamonds
C) Conflict diamonds
D) Uncertified diamonds
The correct answer is C:) Conflict diamonds. Conflict diamonds are also called war diamonds or blood diamonds.
Which of the following is NOT an example of an in kind contribution?
A) Donating lumber to an organization which builds homes for homeless people.
B) Donating money to a humanitarian organization for the purchase of blankets.
C) When two companies or people exchange services in place of paying each other.
D) A broadcasting company airing a message for free instead of donating to a political campaign.
The correct answer is B:) Donating money to a humanitarian organization for the purchase of blankets. In kind contributions are when a person or company trades goods or services in place of money. In this example money is donated.
The origins of the FDA can be traced to which of the following Acts?
A) Pure Food and Drug Act
B) Sarbanes-Oxley Act
C) Sanitary Production Act
D) Corporate Social Responsibilities Act
The correct answer is A:) Pure Food and Drug Act. The Pure Food and Drug Act was passed in 1906 to force food producing industries to practice sanitation.
Which of the following is NOT a right outlined in the Privacy Act of 1974?
A) A person has the right to request corrections to documents about them that are incomplete or incorrect.
B) The act prevents unauthorized disclosure of information from systems of records to other people or government agencies.
C) A person has the right to remove documents about themselves from government records.
D) A person has the right to know of government records kept about them (in systems of records).
The correct answer is C:) A person has the right to remove documents about themselves from government records. A, B and D all correctly describe rights of the Privacy Act, however the act does not give a person the right to remove documents about themselves.
Which of the following is NOT a way in which businesses are regulated?
A) Protection of consumers
B) Regulation of competition
C) Ensure safety and equality
D) All of the above are ways in which businesses are regulated
The correct answer is D:) All of the above are ways in which businesses are regulated. Business can regulated through actual laws (as in the three areas above) and through their own ethical codes.
Which of the following is NOT a way that governments can influence businesses?
A) Through PACs
B) Taxes
C) Procompetitive laws
D) Tariffs
The correct answer is A:) Through PACs. PACs, or Political Action Committees are groups that work to campaign for a particular candidate. It is therefore a way that businesses can influence politics, not the other way around.
OSHA was created to do which of the following?
A) Protect consumers’ rights
B) Ensure worker safety
C) Ensure equality in the workplace
D) Protect the market against monopolies
The correct answer is B:) Ensure worker safety. OSHA is the Occupational Safety and Health Administration and works to enforce safety laws and improve safety in the workplace.
A virus is
A) A piece of software which is able to delete information or damage programs on a computer.
B) A piece of code which spreads from computer to computer and can disrupt computer functions.
C) A piece of software which can send information over the internet to allow personalization.
D) A type of message which is sent indiscriminately to a large number of people over the internet.
The correct answer is B:) A piece of code which spreads from computer to computer and can disrupt computer functions. For example, viruses can delete information, slow the computer down or damage software.
What are conflict diamonds?
A) Diamonds which are sold with the purpose of funding insurrection or war.
B) Diamonds which different companies start a war over control for.
C) Diamonds for which the country of origin is not known.
D) None of the above
The correct answer is A:) Diamonds which are sold with the purpose of funding insurrection or war. For this reason they are also called war diamonds or blood diamonds.
Which of the following is NOT an agency responsible for protecting worker’s health?
A) OSHA
B) EPA
C) KPCS
D) All of the above are responsible for protecting workers health
The correct answer is C:) KPCS. The Kimberly Protocol Certification Scheme (KPCS) works to reduce the circulation of conflict diamonds. OSHA and the EPA are responsible for protecting worker’s health.
Protections for workers from workplace hazards are regulated and mandated by which agency?
A) OSHA
B) EPA
C) KPCS
D) Labor unions
The correct answer is A:) OSHA. OSHA stands for the Occupational Safety and Health Administration.
Which of the following BEST describes affirmative action?
A) Any program at a university which aims at increasing the presence of minority groups.
B) A set of quotas that must be met by universities in admitting people of minority races.
C) Any program which seeks to reverse the effects of any form of discrimination.
D) A requirement under the ADA which forces employers to favor disabled workers.
The correct answer is C:) Any program which seeks to reverse the effects of any form of discrimination. The term affirmative action is most often used in terms of minority groups, though it technically applies to all forms of discrimination.
Which of the following statements is TRUE?
A) In almost every case, autocratic leadership has a negative impact on the workplace and should be substituted with either delegative or democratic styles.
B) Although both compliance and values oriented ethical programs improve short run ethical practices in a workplace, in the long run values oriented programs show negative effects.
C) The shareholder model of corporate governance is the precursor to the stakeholder model.
D) An effective leader should be able to switch between transformational and transactional leadership styles.
The correct answer is D:) An effective leader should be able to switch between transformational and transactional leadership styles. Neither transformational nor transactional leadership is considered to be outright better than the alternative, and most people believe that a truly effective leader should be able to use both styles as the situation may demand.
Some people believe that women earn less than men because female held jobs have been historically devalued, and that women should be given equal pay for equal work. This belief is called
A) Comparable worth
B) Affirmative action
C) Glass ceiling
D) Absenteeism
The correct answer is A:) Comparable worth. The idea is that jobs typically held by women receive lower pay on average than jobs typically held by men. Advocates of comparable worth work to ensure that jobs typically held by women that require the same amount of effort and risk as jobs typically held by men (even though they may not be similar) receive equal pay.
Which of the following statements best describes the difference between corporate intelligence and corporate espionage?
A) There is no difference between corporate intelligence and corporate espionage. They are two terms for the same thing.
B) Both are illegal forms of information gathering. Corporate espionage focuses on the social engineering and more personal aspect of gathering information and corporate intelligence involves hacking and other software based methods of information gathering.
C) Corporate espionage involves legally gathering information about a company and corporate intelligence involves illegally gathering information about a company.
D) Corporate intelligence involves legally gathering information about a company and corporate espionage involves illegally gathering information about a company.
The correct answer is D:) Corporate intelligence involves legally gathering information about a company and corporate espionage involves illegally gathering information about a company.
If a person were to sue a company for not fulfilling a contractual obligation, it would be a
A) Civil rights case
B) Civil case
C) Criminal case
D) Affirmative action case
The correct answer is B:) Civil case. In civil cases on party (the person) sues another party (the company) because they feel like their rights have been violated, in this case because the company did not fulfill their obligations.
Which of the following statements is FALSE?
A) Criminal laws are enforced by the government.
B) The only ethical regulations businesses follow are mandated by the government.
C) The ADA requires that “reasonable accommodation” be given to disabled employees.
D) All of the above are true statements.
The correct answer is B:) The only ethical regulations businesses follow are mandated by the government. This is incorrect because many businesses have their own ethical standards and ethics programs. Also, many are governed by core practices which are ethical codes that are inherent within the business (for example, quality checks on products).
The perceived “us” versus “them” mentality that emerges when doing business with different cultures is referred to as
A) Egoistic perception
B) Self reference criterion
C) Cultural displacement
D) Relativism
The correct answer is B:) Self reference criterion.
An ombudsman is
A) A type of program that is used in cost-benefit analysis to help companies make decisions.
B) A leader in a movement to establish a union in a workplace.
C) An intermediary who investigates complaints against a group.
D) None of the above
The correct answer is C:) An intermediary who investigates complaints against a group. An ombudsman is hired by the group about which they investigate complaints and can be very helpful in increasing workplace efficiency.
Which of the following does not relate in some manner to international trade?
A) Kyoto Protocol
B) NAFTA
C) EEOC
D) WTO
The correct answer is C:) EEOC. The EEOC (Equal Employment Opportunities Commission) has to do with employment in the United States whereas NAFTA (North American Free Trade Agreement), WTO (World Trade Organization) and the Kyoto Protocol all relate to trade on a multinational level.
Which of the following did the Bipartisan Campaign Reform Act NOT do?
A) Prohibited non-partisan ads funded by corporations or unions near elections.
B) Stated that contributions exceeding $10,000 must be disclosed.
C) Raised the amount of hard money that could be raised.
D) The act did all of the above.
The correct answer is D:) The act did all of the above.
Oversight refers to
A) Finding ways to ensure that the decisions of managers and employees are aligned with the ethical principles and goals of the company.
B) Finding ways to eliminate the opportunities for employees to act unethically.
C) The ability of the company to consider decisions and improve where necessary.
D) An ineffective leadership style in which leaders are constantly checking on the performance of employees.
The correct answer is B:) Finding ways to eliminate the opportunities for employees to act unethically. Specifically, oversight refers to creating a set of checks and balances which prevent employees from making unethical decisions.
