Business Law and Ethics
Final Test Solutions
Course Introduction
Business Law and Ethics explores the fundamental legal concepts, frameworks, and ethical principles that govern business activities. The course introduces students to the basics of contract law, torts, agency relationships, and regulations affecting businesses, both domestically and globally. Through case studies and practical examples, students analyze real-world scenarios involving corporate governance, intellectual property, consumer protection, and the ethical responsibilities of businesses to stakeholders and society. Emphasizing critical thinking and decision-making, the course equips students with the skills to identify and navigate legal and ethical dilemmas in the modern business environment.
Recommended Textbook
Business Ethics Ethical Decision Making Cases 12th Edition by O. C. Ferrell
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12 Chapters
619 Verified Questions
619 Flashcards
Source URL: https://quizplus.com/study-set/2265 Page 2
Chapter 1: The Importance of Business Ethics
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51 Verified Questions
51 Flashcards
Source URL: https://quizplus.com/quiz/44996
Sample Questions
Q1) The Foreign Corrupt Practices Act outlawed
A)global accounting fraud.
B)price collusion.
C)corruption in foreign governments.
D)bribery of officials in other countries.
E)executive misconduct.
Answer: D
Q2) Values are
A)specific and pervasive boundaries for behavior that should not be violated.
B)acceptable behavior as defined by the company and industry.
C)attempts by businesses to minimize their negative impact on society.
D)a person's moral philosophies about what is right or wrong.
E)enduring beliefs and ideals that are socially enforced.
Answer: E
Q3) Many consumers are willing to pay more money for socially responsible products.
A)True
B)False
Answer: True
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3
Chapter
2: Stakeholder
Relationships, Social Responsibility, and Corporate Governance
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50 Verified Questions
50 Flashcards
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Sample Questions
Q1) Directors share a ______, which means all their decisions should be in the best interests of the corporation and its stakeholders.
A)duty of loyalty
B)duty of oversight
C)duty to audit
D)duty of control
E)duty of cooperation
Answer: A
Q2) Shareholders provide resources to an organization that are critical to long-term success. Which of the following does the book suggest that suppliers offer?
A)The promise of customer loyalty
B)Material resources and/or intangible knowledge
C)Infrastructure
D)Revenue
E)Leadership skills
Answer: B
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Chapter 3: Emerging Business Ethics Issues
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52 Verified Questions
52 Flashcards
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Sample Questions
Q1) Creating a perception or belief by words that intentionally deceives someone is
A)related to "noise."
B)related to lying by omission.
C)related to what is defined as a "white" lie.
D)related to lying by commission.
E)related to context and intent.
Answer: D
Q2) Abusive or intimidating behavior is the most common ethical problem for employees. Which of the following is not related to this concept?
A)Physical threats
B)Accusations
C)Being annoying
D)Profanity
E)Performance probation
Answer: E
Q3) Developing ethical issue awareness is the first step toward understanding business ethics.
A)True
B)False
Answer: True
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Chapter 4: The Institutionalization of Business Ethics
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53 Verified Questions
53 Flashcards
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Sample Questions
Q1) _____ law defines the rights and duties of individuals and organizations (including businesses).
A)Civil
B)Criminal
C)Competitive
D)Administrative
E)Regulatory
Q2) Title VII of the Civil Rights Act of 1964
A)prohibits discrimination on the basis of race, color, sex, religion, or national origin.
B)penalizes the top executives in an organization for misconduct.
C)is basically the same as the Sarbanes-Oxley Act.
D)discourages whistle-blowers from reporting misconduct.
E)prohibits pay discrimination on the basis of gender.
Q3) How do violations of the law usually start?
A)When businesspeople blatantly engage in misconduct
B)When organizational stakeholders are not prioritized
C)When the organization lacks an code of ethics
D)When businesspeople stretch the limits of ethical standards
E)When organizations engage in activities that are clearly illegal
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Page 6
Chapter 5: Ethical Decision Making
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58 Verified Questions
58 Flashcards
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Sample Questions
Q1) According to the ethical decision-making framework, the absence of punishment provides a(n) _____ for unethical behavior.
A)reason
B)significant other
C)individual factor
D)opportunity
E)ethical issue intensity
Q2) Which of the following is not one of the six "spheres of influence" to which individuals are subject when confronted with an ethical issue?
A)Educational attainment
B)Workplace
C)Family
D)Legal system
E)Community
Q3) Discuss how the three categories of institutions (political, economic, and social) are important in establishing a foundation for normative values.
Q4) Discuss, with examples, at least three ways that opportunity can affect the decision making process.
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Chapter 6: Individual Factors: Moral Philosophies and Values
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49 Verified Questions
49 Flashcards
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Sample Questions
Q1) Enlightened egoism
A)is when an individual puts spiritual feelings above all others.
B)centers completely on the short-term well-being of others.
C)centers on one's short-term self-interest.
D)centers on one's long-term self-interest but takes others' well-being into account.
E)centers on the long-term well-being of others.
Q2) A marketing manager who orders that a manufacturing plant be refitted to make it safer for workers, no matter what the cost, may be a(n) _____ because he believes in the rights of all individuals.
A)egoist
B)utilitarian
C)deontologist
D)relativist
E)hedonist
Q3) Compare and contrast the two moral philosophies: teleology and deontology. Discuss the bases each philosophy type uses to evaluate the morality of a particular activity.
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Page 8
Chapter 7: Organizational Factors: the Role of Ethical
Culture and Relationships
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52 Verified Questions
52 Flashcards
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Sample Questions
Q1) Individuals, often from the same department, who have a common interest but not an explicit organizational structure are known as
A)quality circles.
B)informal groups.
C)teams.
D)work groups.
E)committees.
Q2) A cultural audit may be used to assess
A)how cultured a firm's employees are.
B)unethical employees.
C)unethical organizations.
D)an organization's values.
E)organizational structure.
Q3) Which of the following is an informal channel of communication?
A)Team communication
B)The grapevine
C)Performance evaluations
D)Reports
E)Presentations
Page 9
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Chapter 8: Developing an Effective Ethics Program
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49 Verified Questions
49 Flashcards
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Sample Questions
Q1) The support of top management is essential to the successful effectiveness of an ethics and compliance program.
A)True
B)False
Q2) Aurico is a company that offers ethics hotline maintenance for organizations. Which component of the Federal Sentencing Guidelines for Organizations compliance program does this service help organizations to satisfy?
A)Code of conduct
B)Enforcement of standards, codes, and rules
C)Delegation of authority to ethical persons
D)Systems for monitoring, auditing, and reporting misconduct
E)Ethics training
Q3) Which of the following is a common mistake made in implementing an ethics program?
A)Setting specific program objectives
B)Developing materials that are not understandable by the average employee
C)Adapting a firm's ethics program to its international operations
D)Allowing lower-level employees to make ethical decisions
E)Having one person take responsibility for implementing the ethics program
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Page 10
Chapter 9: Managing and Controlling Ethics Programs
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50 Verified Questions
50 Flashcards
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Sample Questions
Q1) Independent verification of the ethics audit is important because it lends the report
A)credibility and formality.
B)credibility and civility.
C)credibility and objectivity.
D)objectivity and civility.
E)objectivity and formality.
Q2) Which of the following compares standards with actual behavior?
A)Process controls
B)Shared values
C)Output controls
D)Formal controls
E)Ethics audits
Q3) Which of the following is important in defining the scope of the audit process?
A)The types of teams involved in the process
B)Opportunities the business has to manage ethics
C)Who has been assigned to oversee the audit
D)Government regulations outlining the process
E)Deciding on how to verify the results
Q4) Describe the process of conducting an ethics audit in detail.
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Chapter 10: Globalization of Ethical Decision Making
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55 Verified Questions
55 Flashcards
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Sample Questions
Q1) The _____ formed in 1995, and it administers its own trade agreements, facilitates future trade negotiations, settles trade disputes, and monitors the trade policies of member nations
A)International Monetary Fund
B)United Nations
C)World Trade Organization
D)North American Free Trade Act
E)European Union
Q2) An unconscious reference to one's own cultural values, experiences, and knowledge is referred to as the
A)cultural reference criterion.
B)consumerism movement.
C)cultural-self criterion.
D)self-reference criterion.
E)cultural relativism philosophy.
Q3) It is not uncommon for the revenues of multinational companies to surpass the GDP of entire countries.
A)True
B)False
Q4) Discuss the ethical issues associated with multinational corporations.
Page 12
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Chapter 11: Ethical Leadership
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59 Verified Questions
59 Flashcards
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Sample Questions
Q1) The _____ leader demands instantaneous obedience and focuses on achievement, initiative, and self-control.
A)democratic
B)coaching
C)affiliative
D)coercive
E)pacesetting
Q2) _____ provide(s) important guidelines for employees on how to act in different situations.
A)Leader-exchange theory
B)Small group communication
C)Interpersonal communication
D)Codes of ethics
E)Leader-follower congruence
Q3) _____ is the ability or authority to guide and direct others toward a goal.
A)Leadership
B)Collaboration
C)Democracy
D)Transparency
E)Pacesetting
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Chapter 12: Sustainability: Ethical and Social Responsibility
Dimensions
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41 Verified Questions
41 Flashcards
Source URL: https://quizplus.com/quiz/45007
Sample Questions
Q1) Which of the following does a cap-and-trade program reduce?
A)Carbon emissions
B)Waste
C)Water pollution
D)Deforestation
E)Fracking
Q2) Wind power holds great promise for the United States because of the _____________, and experts believe wind energy could meet as much as 20 percent of the nation's energy needs.
A)Rocky Mountains
B)Everglades
C)Great Lakes
D)Pacific Rim
E)Great Plains
Q3) Discuss the benefits of green marketing and the long-term pitfalls of greenwashing.
Q4) Why is the Environmental Protection Agency (EPA) said to be the most influential regulatory agency?
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