Course Introduction
Business Ethics
Pre-Test Questions
Business Ethics explores the moral and ethical issues that arise in the world of business and professional practice. The course examines fundamental ethical theories and principles, decision-making frameworks, and the responsibilities of businesses to stakeholders, including employees, customers, society, and the environment. Through case studies and real-world examples, students analyze ethical dilemmas in areas such as corporate governance, social responsibility, workplace diversity, sustainability, and global business conduct, developing the skills to recognize, assess, and address ethical challenges in both local and international business settings.
Recommended Textbook
Understanding Business Ethics 3rd Edition by
Peter A. Stanwick
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13 Chapters
687 Verified Questions
687 Flashcards
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Page 2
Chapter 1: The Foundation of Ethical Thought
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Sample Questions
Q1) The property principle involves making affirmative efforts for those individuals who need help in their personal pursuits, and it also helps protect those individuals who are vulnerable to unethical actions.
A)True
B)False
Answer: False
Q2) Which of the following ethical frameworks focuses on the duty or obligation in determining whether the actions are wrong or right?
A) Teleological
B) Sidgwick's dualism
C) Deontological
D) Ethical egoism
Answer: C
Q3) Which of the following is not an example of fairness?
A) Distributive fairness
B) Reciprocal fairness
C) Procedural fairness
D) Fiduciary fairness
Answer: D
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Page 3
Chapter 2: The Evolving Complexities of Business Ethics
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49 Verified Questions
49 Flashcards
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Sample Questions
Q1) Copying information from journal articles and generic sources such as Wikipedia without stating the source is allowable behavior.
A)True
B)False
Answer: False
Q2) The most ethically related significant event of the United States during the 2000s was the passage of the _____________.
A) Civil Rights Act
B) Sherman Antitrust Act
C) Foreign Corrupt Practices Act
D) Sarbanes-Oxley Act
Answer: D
Q3) The discovery of ethics began with discussions initiated by all of the following individuals except
A) Socrates
B) Aristotle
C) Plato
D) Napoleon
Answer: D
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Page 4
Chapter 3: Stakeholders and Corporate Social Responsibility
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53 Verified Questions
53 Flashcards
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Sample Questions
Q1) A benefit corporation is an organization that integrates financial, social, and environmental objectives.
A)True
B)False
Answer: True
Q2) Which coffee shop paid $1.26 per pound for fair trade coffee beans in the case?
A) Mountain People's Co-Op
B) Whole Foods
C) Costa Coffee
D) Starbucks
Answer: A
Q3) ________________ uses the potential synergies that can be created between their operational activities and their philanthropic activities.
A) Constricted philanthropy
B) Peripheral philanthropy
C) Dispersed philanthropy
D) Strategic philanthropy
Answer: A
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Chapter 4: Ethics and Financial Reporting
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51 Verified Questions
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Sample Questions
Q1) Which of the following is not an ethical perspective that affects accounting-based decisions?
A)Self-interest
B) Universal rules
C) Economic efficiency
D) Creative accounting
Q2) ______________ accounting comes from the concept that management can manipulate the financial results of a company by adding or taking away reserves depending on the circumstances.
A) Hypothetical
B) Lease accounting
C) Cookie jar
D) Virtual
Q3) The fundamental flaw of a Ponzi scheme is that it never ends until the person committing the fraud is caught and disappears.
A)True
B)False
Q4) In a short essay, list and discuss the three primary objectives of financial reporting.
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Page 6
Chapter 5: Ethical Leadership and Corporate Governance
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Sample Questions
Q1) In a short essay, describe and evaluate Strebel's contingent perspective of corporate governance.
Q2) Martha Stewart could be an example of a(n) _______________ leader in that her media empire was built on the correct way to entertain and interact with other people, but her conviction may cause other employees within her empire to question whether any of her statements after her convictions were true.
A) Unethical
B) Ethical
C) Hypocritical
D) Inconsistent
Q3) The passive board is also called the rubber stamp board.
A)True
B)False
Q4) The operating board actually makes the key decisions for the firm, and the top-level management is responsible for implementing the board's decisions.
A)True
B)False
Q5) In a short essay, discuss corporate governance.
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Chapter 6: Strategic Planning, Corporate Culture, and Corporate Compliance
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55 Flashcards
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Sample Questions
Q1) The taking of money illegally from a firm or other source is called
A) Extortion
B) Bribery
C) Embezzlement
D) Fraud
Q2) In the Snyder model that develops a framework to address ethical crises, which of the following is not an external abnormal factor?
A) Terrorism
B) Strike
C) Natural disaster
D) Reputation issues
Q3) _______________ is defined as the shared values and beliefs of employees within any given organization.
A) Social culture
B) Corporate culture
C) Strategic planning
D) Ethical judgment
Q4) In a short essay, list and discuss the decision-making steps in the ethical cycle.
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Chapter 7: Decision Making and Human Resource Issues
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Sample Questions
Q1) Production deviance and political deviance would be more harmful to the firm while political deviance and personal aggression would be more harmful to individuals within the firm.
A)True
B)False
Q2) In the Milgram study of 1963, what proportion of volunteers would have obeyed the instruction to "kill" the subject?
A) 12%
B) 65%
C) 25%
D) 40%
Q3) ______________ occurs when a relatively small number of people with a large stake in the action of the firm are impacted by the decision.
A) Social consensus
B) Magnitude of consequences
C) Concentration of effect
D) Temporal immediacy
Q4) In a short essay, list and discuss the six stages in the moral development of an individual.
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Chapter 8: Ethics and the Environment
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Sample Questions
Q1) Friends of the Earth is the oldest and largest environmental group in the United States.
A)True
B)False
Q2) According to the text, the majority of greenhouse gases originate from _____________.
A) carbon dioxide
B) hydrogen peroxide
C) nitrous oxide
D) methane
Q3) Which of the following types of risk is based on the premise that firms with high GHG emission levels will be threatened more frequently with lawsuits similar to those established in the tobacco, pharmaceutical and asbestos industries?
A) regulatory risk
B) supply chain risk
C) physical
D) litigation risk
Q4) In a short essay outline how a can transform itself through adopting Sustainable Strategies
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Chapter 9: Ethics and Information Technology
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Sample Questions
Q1) The American Management Association/ePolicy Institute survey examined the relationship between ethics and technology. One finding stated that 45% of firms monitored the time spent and numbers called on the phone.
A)True
B)False
Q2) Downloading of music and movies has become a large problem as more and more Internet users develop attitudes that if the music is there, it is for entertainment purposes and it is free.
A)True
B)False
Q3) Which of the following is not a guideline dealing with information security compliance?
A) Maintain stable information security controls even when business changes occur
B) Design information systems to permit later auditing
C) Hold third party service providers to high standards
D) Monitor personnel to prevent information misuse or loss
Q4) In a short essay, list and discuss any three of the five issues that managers have to consider when deriving an ethical policy for information technology.
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Chapter 10: Ethics and Information Technology
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Sample Questions
Q1) Examples of why not? Products include nondisposable diapers.
A)True
B)False
Q2) Products in the win-win category are identified as having a clear and transparent environmental benefit with little compromise needed by the customer.
A)True
B)False
Q3) In June 2012, The Walt Disney Company announced that all products that will be advertised on the children-based television channels, radio stations, and websites owned by the company must comply with strict nutritional standards.
A)True
B)False
Q4) Which is not one of the financial costs of a recall?
A) Communication costs
B) Engineering costs
C) Marketing costs
D) Legal costs
Q5) In a short essay, list the seven steps to developing a customer relationship management model.
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Chapter 11: Ethical Issues in the Developing World
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Sample Questions
Q1) All of the following are principles for social business except
A) Investors of the organization will only receive a 5% return on their full investment amount
B) The business objective of the organization is to address a social problem and not to maximize profitability
C) When the investment amount is paid in full to all the investors, the subsequent profits will be invested back into the firm for expansion and improvement opportunities
D) The employees of the organization will receive market wages with superior working conditions
Q2) Which is not one of the key human rights as defined by the UN General Assembly in 1948?.
A) Freedom
B) Justice
C) Peace
D) Prosperity
Q3) Ethanol is also known as hydrogen peroxide.
A)True
B)False
Q4) In a short essay, list and discuss the root causes of hunger.
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Chapter 12: Establishing a Code of Ethics and Ethical Guidelines
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Q1) The UN Global Impact was established in January 1999 based on a challenge by former Secretary-General of the United Nations Kofi Annan for businesses to adopt universal environmental and social principles.
A)True
B)False
Q2) The four ethical values that firms should consider when developing and/or modifying a code of ethics are integrity, justice, competence, and utility.
A)True
B)False
Q3) Which of the following organizations published a comprehensive code of ethics but did not carry them out?
A) Metlife
B) Enron
C) J. C. Penney
D) GE
Q4) In a short essay, describe the main elements of a Living Code of Ethics.
Q5) The annual report of the firm is an element of the Living Code of Ethics.
A)True
B)False
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Chapter 13: Evaluating Corporate Ethics
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Sample Questions
Q1) The three categories of classification determining how fraud is detected are corporate control, corporate culture, and beyond the influence of management.
A)True
B)False
Q2) Internal communication ethical tools such as an ethics hotline would be considered too impersonal and not appropriate for a(n) ______________ based culture.
A) Individualism
B) Collectivism
C) High uncertainty avoidance
D) Low uncertainty avoidance
Q3) Feminine cultures focus on material goods, status, accomplishment, and reward for ambition.
A)True
B)False
Q4) Establishing an ethics program is a challenge only for large publicly traded companies.
A)True
B)False
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Page 15