exam 1

Question 1

Pure free market approach( capitalist, democratic approach to life)

Answer 1

Permits operation of business system and society free from all but foundational legal mechanisms
Individual judgments and consciences regulate life

Question 2

Ayn Rand’s philosophy

Answer 2

Objectivism
free market principles is necessary for a rational, moral life
Purpose of government is to protect individual rights
necessary components of government are the police, armed services, and law courts
Market forces and charity would replace government in providing social security, education, welfare, and housing

Question 3

Collectivism

Answer 3

Feature economic cooperation and varying degrees of centralized ownership and control of means of production
Contrast with capitalism

Question 4

Communism

Answer 4

Emphasizes economic justice
Contends that pursuit of wealth and self-interest erodes society’s moral core
Centralized government decision making
government controls production and employment

Question 5

Socialism

Answer 5

Rejects communist totalitarianism and embraces democracy
Calls for government intervention to correct economic and social ills
Associated with democratic governments and peaceful change
Aims to retain the benefits of industrialism

Question 6

Socialist Goals

Answer 6

1. Liberty
2. Social welfare
3. Fulfilling work
4. Community
5. Equality
6. Rationality

Question 7

The Third Way

Answer 7

social democracy
Provides healthy economic growth
Emphasizes collective welfare over individual preferences

Question 8

Democratic capitalism

Answer 8

Favors business to create wealth and government to regulate as needed

Question 9

State capitalism

Answer 9

Employs the market to build wealth, which is then controlled and distributed by the state for its sociopolitical purposes

Question 10

Libertarianism

Answer 10

Ethical theory rooted in personal liberty
Justice and fairness measured not by equality of results for all, but from ensuring equal opportunity for all to engage in informed decisions about their own welfare

Question 11

Teleology

Answer 11

Concerned with the consequences of an act rather than the act itself
(Utilitarianism)

Question 12

Utilitarianism

Answer 12

Good is to be weighed against evil to reach an ethical decision

Question 13

Act-utilitarianism

Answer 13

To identify the act that results in the greatest good or utility

Question 14

Rule-utilitarianism

Answer 14

To follow rules that generate the greatest good or utility

Question 15

Deontology

Answer 15

Principle is primary
Consequence is secondary or irrelevant
(formalism)

Question 16

Formalism

Answer 16

Measured by the rightness of rules and not by consequences
Every person should act on principles that he or she would prescribe as universal laws

Question 17

trends in business towards ethics

Answer 17

been repositioning its mission to include purpose, community work, and values

Question 18

FCPA

Answer 18

Foreign Corrupt Practices Act
Chief federal weapon against bribery abroad
Considers bribery criminal conduct
Requires rigorous internal accounting controls and careful record keeping
Does not forbid payments for securing the performance of a routine governmental action

Question 19

Lobbying-

Answer 19

Essential ingredient in big business strategy
Educates politicians about issues they must address but cannot master without assistance

Question 19

Lobbying-

Answer 19

Educates politicians about issues they must address but cannot master without assistance
95 of 100 highest spending lobbying organizations in 2012 represented business interests

Question 20

Corporate Social Responsibility

Answer 20

People launch nonprofits and businesses or take up jobs using entrepreneurial and managerial skills to address social problems
Profit-seeking remains central and essential, but social responsibility must be considered

Question 21

Profit maximization

Answer 21

Dominant concern is to maximize shareholders’ interests
Responsible and moral course of behavior is to reap high returns, within the law

Question 22

Long-term company interest

Answer 22

Some managers believe that a strong bottom line requires considerations beyond profit-maximizing interests

Question 23

Triple bottom line/sustainability

Answer 23

Approach that produces a sustainable, enduring global community
Employs free-market principles
Recognizes the necessity for financial success
Gives importance to social and environmental responsibilities
Corporations that give attention to social and economic duties have a competitive advantage

Question 24

Social Responsibility (CSR) Pyramid
Archie B. Carroll,

Question 25

Stakeholder Approach

Answer 25

Corporation identifies all groups (stockholders, customers, employees, communities, governments, unions, schools, etc.) that may significantly affect firm’s performance or be affected by it
To stakeholder advocates, simply maximizing profits to satisfy interests of primary stakeholders (shareholders) would not satisfy corporation’s social duties

Question 25

Stakeholder Approach

Answer 25

Corporation identifies all groups (stockholders, customers, employees, communities, governments, unions, schools, etc.) that may significantly affect firm’s performance or be affected by it
To stakeholder advocates, simply maximizing profits to satisfy interests of primary stakeholders (shareholders) would not satisfy corporation’s social duties

Question 26

Social Accountability 8000

Answer 26

First global standard measuring companies’ social and environmental records

Question 27

Shareholder Approach

Answer 27

Shareholders must remain consuming concern of management
Skilled focus on bottom line will result in greatest good for society
Company that maximizes profits automatically does not only what is best for its shareholders, but also what is best for society generally

Question 28

meaning of law

Answer 28

To maintain order in our diverse, rapidly changing society.
Rely on law to peacefully, fairly, and intelligently resolve conflicts.
Preserve dominant values and vital forces in guaranteeing freedom.

Question 29

Capitalism Challenged:

Answer 29

Late 2008 America’s financial markets near collapse
Lending $ froze, & normal business cannot be conducted.
Troubled Asset Relief Program (TARP) and other initiatives, are enacted by the government to
assist companies considered “too big to fail”
Controversial because federal government was dictating policy for key private sector business.
Extension of federal power was thought to have amounted to a temporary “nationalization” of
those businesses.

Question 30

The U.S Supreme Court may only hear a case of appeals from a circuit court of appeals.

Answer 30

false

Question 31

In a true free market society, government regulatory agencies, such as the Federal Trade Commission
and the FDA, would be unnecessary.

Answer 31

TRUE

Question 32

Some commentators question whether capitalism can provide broad prosperity and social fairness.

Answer 32

true

Question 33

Freedom of speech is limited right.

Answer 33

true

Question 34

In many nations, bribes to public officials are a routine ingredient of doing business.

Answer 34

true

Question 35

In criminal trials, guilt must be established by a preponderance of the evidence.

Answer 35

false

Question 36

According to Ayn Rand,

Answer 36

The United States was the first moral society in history.

Question 37

In many nations, bribes to public officials are a routine ingredient of doing business.

Answer 37

true

Question 38

In criminal trials, guilt must be established by a preponderance of the evidence.

Answer 38

false

Question 39

The population of America

Answer 39

is about 5% of the world