Business Ethics
Unit1
Multiple Choice Questions (Enter your answers on the enclosed answer sheet)
1. Which level of moral development does Kohlberg call the "principled level"?
a. Level I
b. Level II
c. Level III
d. Level IV
2. What is the first level of moral development, according to Lawrence Kohlberg?
a. Autonomous
b. Conventional
c. Preconventional
d. Postconventional
3. John Stuart Mill's approach to ethics would be classified as what sort of general ethical
approach?
a. Theological
b. Deontological
c. Utilitarian
d. Ontological
4. What is the name given to philosophers who attempt to use only one ethical approach to ethical
questions?
a. Ethical monists
b. Utilitarians
c. Deontologists
d. Ethical pluralists
5. What is the name given to philosophers who construct their ethical approaches with mixed
approaches?
a. Utilitarians
b. Ethical monists
c. Ethical pluralists
d. Deontologists
6. This type of utilitarianism holds that the basic human values are pleasure and pain.
a. Hedonistic utilitarianism
b. Ideal utilitarianism
c. Eudaimonistic utilitarianism
d. Classic utilitarianism
7. This type of utilitarianism maintains that what has to be calculated is not pleasure or happiness,
but all intrinsically valuable human goods such as friendship and knowledge.
a. Hedonistic utilitarianism
b. Ideal utilitarianism
c. Eudaimonistic utilitarianism
d. Classic utilitarianism
8. This type of utilitarianism holds that the basic human value is happiness.
a. Hedonistic utilitarianism
b. Ideal utilitarianism
c. Eudaimonistic utilitarianism
d. Classic utilitarianism
9. This type of utilitarianism holds that utility applies appropriately to classes of actions rather
than to given individual actions.
a. Act utilitarianism
b. Ideal utilitarianism
c. Eudaimonistic utilitarianism
d. Rule utilitarianism
10. A Theory of Justice (1971) was written by:
a. John Rawls.
b. Lou Dobbs.
c. Ken Wilber.
d. Thomas Jefferson.
11. Normative ethical relativism claims that when any two cultures or any two people hold
different moral views of an action:
a. only one can be right.
b. both can be right.
c. one is superior.
d. none of the above.
12. The ____________ of an action is a careful statement or description of its essential features.
a. maxim
b. principle
c. rule
d. content
13. The first type of freedom is a human being's ability to choose:
a. their religious beliefs.
b. to act morally or immorally.
c. to express their thoughts.
d. none of the above.
14. According to the deontological position, if a maxim passes all __________ tests, it is moral, if
it fails any one of them, it is immoral.
a. three
b. four
c. five
d. six
15. ___________ duties clearly describe actions that are prohibited by moral law.
a. Imperfect
b. Perfect
c. Moral
d. Immoral
16. ___________ duties cannot be specified with precision and the object of the action in question
is indeterminate.
a. Imperfect
b. Perfect
c. Moral
d. Immoral
17. The example to _____________ satisfies all three tests of the Categorical Imperative.
a. act morally
b. help those in need
c. tell the truth at all times
d. none of the above
18. Moral ____________ are important, normative and justifiable claims or entitlements.
a. actions
b. rights
c. duties
d. justice
19. ____________ rights protect an individual from interference by both the government and other
people.
a. Negative
b. Positive
c. Ethical
d. Moral
20. ____________ rights require either the government or other individuals to provide the bearer of
the right with certain positive goods or opportunities.
a. Negative
b. Positive
c. Ethical
d. Moral
21. ___________ rights are legal rights that typically apply to citizens and not to all human beings.
a. ethical
b. moral
c. civil
d. human
22. Which of the following is NOT a condition for an action to be considered a moral action?
a. It must take into consideration the particular circumstances.
b. It must be amenable to being made consistently universal.
c. It must respect rational beings as ends in themselves.
d. It must stem from, and respect, the autonomy of rational beings
23. ____________ justice consists in compensating someone for a past injustice or making good
some harm he or she has suffered in the past.
a. Compensatory
b. Retributive
c. Commutative
d. Distributive
24 ___________ justice concerns punishment due a lawbreaker or evil-doer.
a. Compensatory
b. Retributive
c. Commutative
d. Distributive
25. ___________ justice refers to justice in transactions.
a. Compensatory
b. Retributive
c. Commutative
d. Distributive
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Unit2
Multiple Choice Questions (Enter your answers on the enclosed answer sheet)
1. According to Aristotle, there are ___________ kinds of virtues.
a. two
b. three
c. four
d. five
2. ____________ virtues result from the proper functioning of the higher aspects of human beings.
a. Moral
b. Intellectual
c. Character
d. Ethical
3. ___________ virtues come about from the proper control by reason of the bodily appetites and
inclinations.
a. Moral
b. Intellectual
c. Character
d. Ethical
4. According to Aristotle, we become virtuous _____________.
a. at birth
b. with practice
c. when we are at our height of moral enlightenment
d. none of the above
5. The _____________ of a person is the sum of his or her virtues and vices.
a. character
b. beliefs
c. attitude
d. actions
6. The technique of moving to another level to find a solution is called:
a. ethical arrangement.
b. ethical displacement.
c. ethical replacement.
c. ethical awareness.
7. In law, ___________ liability means that no excusing conditions are accepted or applicable.
a. strict
b. closed
c. firm
d. absolute
8. Moral ___________ is the feeling of sorrow for our immoral actions, together with an intention
not to perform similar actions in the future.
a. remorse
b. guilt
c. regret
d. consequences
9. One way of evaluating economic systems is a(n) ____________ approach.
a. open-state
b. end-state
c. productive
d. none of the above
10. Which of the following is not a true statement?
a. In a free-market system, government controls everything.
b. In a free-market system, government does not set the price of goods.
c. In a free-market system, government does not set wages.
d. In a free-market system, government does not control production.
11. Historically, there have been ___________ types of relations between government and
capitalism.
a. four
b. five
c. six
d. eight
12. Marxists claim capitalism is inherently immoral:
a. because it cannot exist without robbing the worker of his due.
b. because it necessarily involves the alienation of human beings.
c. at the present time because it protects the vested interest of the few and prevents the
many from achieving a better, more just society.
d. all of the above.
13. _____________ is usually a corollary of assuming a certain position, function, or role in society
or an organization.
a. Moral responsibility
b. Role responsibility
c. Function responsibility
d. Ethical responsibility
14. One variant of the Myth of Amoral Business is:
a. Organizational View.
b. Moral Person View.
c. Ethical View.
d. None of the above.
15.There are __________ specific defining features of the model of classical capitalism.
a. two
b. three
c. four
d. five
16. One of the features of the partial model of socialism is:
a. social ownership of the means of production.
b. private ownership.
c. control of production.
d. none of the above.
17. Under the capitalistic system, Marx observes ____________ come to dominate people.
a. immoral behavior
b. greed
c. objects
d. wealth
18. According to ____________, government should neither tax people nor redistribute income
through welfare and other similar programs.
a. capitalists
b. socialists
c. libertarian
d. none of the above
19. ___________ see government as inextricably intertwined with big business.
a. Capitalists
b. Socialists
c. Libertarians
d. Advocates of Workers' Democracy
20. Surplus Value, a Marxist terminology, is also known as:
a. profit.
b. loss.
c. a greater abundance of goods.
d. a greater abundance of workers.
21. Through its ____________, the American government encourages charitable giving.
a. economic system
b. tax system
c. political system
d. judicial system
22. Concerning the role of government and business, the typical libertarian is a(n):
a. minimalist.
b. anarchist.
c. advocate of government control.
d. none of the above.
23. Historically, business has not been ____________.
a. libertarian
b. capitalistic
c. socialist
d. none of the above
24. ___________ historically suffers from cyclical crises.
a. Capitalism
b. Workers' democracy
c. Socialism
d. All of the above.
25. The American economic system is sometimes called a ___________.
a. capitalistic-enterprise system
b. free-enterprise system
c. closed-enterprise system
d. none of the above
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Unit3
Multiple Choice Questions (Enter your answers on the enclosed answer sheet)
1. The concept of Corporate Social Responsibility originated in which time period?
a. 1920's and 1930's
b. 19th Century
c. 1980's and 1990's
d. 1960's and 1970's
2. Worldwide, about ___________ percent of businesses in the private sector are small or medium
sized.
a. 80
b. 85
c. 90
d. 99
3. The generally accepted definition of a small business is one with ____________ or fewer
employees.
a. 10
b. 20
c. 25
d. 50
4. The generally accepted definition of a medium business is one with _____________ or fewer
employees.
a. 50
b.100
c. 200
d. 250
5. In the United States, small or medium sized businesses provide over ___________ percent of
total employment.
a. 25
b. 40
c. 50
d. 75
6. Owners of stock in a corporation are only liable for ____________.
a. the amount they have invested in the company's stock
b. their personal assets
c. the amount they have invested in the company's stock and their personal assets
d. none of the above.
7. A ____________ of an issue consists of weighing and balancing all of the competing demands on
a firm by each of those who have a claim on it.
a. stakeholder analysis
b. board of directors analysis
c. corporation analysis
d. management analysis
8. The ____________ that corporations must meet is "do no harm".
a. moral obligation
b. moral minimum
c. moral requirement
d. moral duty
9. In large corporations, the ____________ is/are the legal overseers of management.
a. CEO
b. shareholders
c. board members
d. none of the above
10. The ____________ position is that a corporation can and should be evaluated not only in terms of its financial bottom line, but also in terms of its environmental bottom line and its social/ethical bottom line.
a. Bottom line
b. Double Bottom line
c. Triple Bottom line
d. Final line
11. Triple Bottom Line reporting refers to:
a. using a low, medium and high estimates for profitability forecasts.
b. measuring the impact of the firm on stockholders, customers and employees.
c. measuring the social, environmental, and financial performance of the firm.
d. measuring the impact of local, state, and federal governments on the firm.
12. Corporate governance can be defined as:
a. the system used by firms to control the actions of their employees.
b. the election process used to vote in a new Board of Director.
c. the corporate compliance system used by the firm.
d. the system used by firms to identify who the critical stakeholders are for the firm.
13. The system that is used by firms to control and direct their operations and the operations of
their employees is called:
a. Corporate Compliance.
b. Corporate Governance.
c. Corporate Control.
d. Corporate Directive.
14. Which board of directors committee is responsible for the guidelines on how the board of
directors should operate.
a. Operating
b. Corporate governance
c. Corporate compliance
d. Guiding
15. The Sarbanes-Oxley Act was a direct response to which ethics scandals?
a. Tyco
b. WorldCom
c. Enron
d. None of the above.
16. What is the name of the process in which an employee informs another responsible employee
in the company about potentially unethical behavior?
a. Whistle-blowing
b. Purging and releasing
c. Identification
d, Information transfer
17. There are ___________ conditions that, if satisfied, change the moral status of whistle blowing.
a. three
b. four
c. five
d. six
18. An example of a whistle blower whose actions were a form of internal government whistle
blowing is:
a. Sherron Watkins.
b. Coleen Rowley.
c. Cynthia Cooper.
d. Lee Iacocca.
19. One whistle blower the text mentions is Cynthia Cooper who was the vice president of
internal audit at ____________.
a. Enron
b. WorldCom
c. Tyco
d. none of the above
20. One classic example of whistle-blowing is the:
a. Ford Pinto case.
b. Lincoln case.
c. Toyota case.
d. none of the above.
21. A whistle-blower:
a. doesn't have to be a past or present member of the organization.
b. doesn't have to report activity that is illegal, immoral, or harmful.
c. is any employer who spreads gossip.
d. far from being disloyal, may be acting in the best interest of the organization.
22. The Sarbanes-Oxley Act:
a. makes it easier to fire whistle blowers.
b. reduces the law's protection of employees who disclose securities fraud.
c. makes it illegal for executives to retaliate against employees who report possible
violations of federal law.
d. provides penalties for blowing the whistle illegitimately or maliciously.
23. Inside traders ordinarily defend their actions by claiming that they don't injure:
a. their boss.
b. their family.
c. the government.
d. anyone.
24. Shareholders have the right to know all except:
a. Information on the management of the corporation
b. Trade secrets
c. The companies financial position
d. The companies general plans for the future.
25. Which act provides sweeping new legal protection for employees who report possible securities
fraud making it unlawful for companies to "discharge, demote, suspend, threaten, harass, or in
any other manner discriminate against" them?
a. Sarbanes-Oxley Act of 2002
b. Foreign Corruption Act
c. Economic Espionage Act
d. U.S. vs. O'Hagan
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Unit4
Multiple Choice Questions (Enter your answers on the enclosed answer sheet)
1. In the U.S., until ___________, prescription drugs could not be advertised directly to consumers.
a. 1965
b. 1970
c. 1980
d.1985
2. In 2005, the pharmaceutical industry spent_________ on TV ads.
a. $2.5 million
b. $500 million
c. $1.19 billion
d. $11.1 billion
3. The U.S. and ___________ are the only two developed nations that allow direct-to-consumer
advertising of pharmaceutical drugs.
a. U.K.
b. Japan
c. Canada
d. New Zealand
4. ____________ refers to the practice of a seller putting a much higher price on the item for sale
than is considered fair or reasonable.
a. Overpricing
b. Price gouging
c. Mark-up
d. Price inflation
5. All of the following are major arms suppliers, except:
a. Korea.
b. the United States.
c. Russia.
d. France.
6. The National Advertising Review Board (NARB) was formed in:
a. 1956.
b. 1968.
c. 1971.
d. 1997.
7. The Equal Pay Act of ____________ guarantees the right to equal pay for equal work and is
aimed especially at wage discrimination against women.
a. 1954
b.1960
c. 1963
d. 1974
8. The first level of affirmative action involves the active recruiting of:
a. women and members of minority groups.
b. women only.
c. minority groups only.
d. none of the above.
9. Trademarks ____________ after a certain length of time and the rights one has continue
indefinitely.
a. expire
b. do not expire
c. expire after one year
d. expire after five years
10. Currently, copyrighted material is protected for life of the author plus:
a. 5 years.
b. 25 years.
c. 50 years.
d. 70 years.
11. ____________ applies to the authorized use of copyrighted material without permission under
certain conditions.
a. Fair use
b. Fair act
c. Common use
d. Common sharing
12. The stealing of funds or assets by computer has resulted in the loss to business of what is
conservatively estimated to be ____________ annually.
a. $1 billion
b. $2 billion
c. 3 billion
d. $5 billion
13. Data _________ is a technique of using special software to sift through large databases in order
to derive information that is implicit but not explicit in the data.
a. mining
b. hacking
c. cracking
d. monitoring
14. _________ refers to land and to the buildings and additions on the land.
a. intellectual property
b. tangible
c. real property
d. none of the above.
15. From an ethical perspective, which is the proper response with regards to the length of a
copyright?
a. The longer contemporary period is better than the shorter historical period.
b. Ethics cannot provide a specific period.
c. The shorter historical period is better than the longer contemporary period.
d. Both the shorter historical period and the longer contemporary period are best for their
time periods
16. Which of the following is not covered by the doctrine of fair use?
a. Scholarly criticism and scholarship
b. Using copies instead of assigning a text
c. News reporting
d. Research
17. The EEO laws require an employer to give greater care to ____________ than many employers
did prior to the laws.
a. writing the job description for a position
b. safety training
c. positive feedback
d. salary negotiations
18. The Age Discrimination in Employment Act protects those between the ages of _____________.
a. 40 and 60
b. 40 and 70
c. 50 and 70
d. 50 and 80
19. The right to privacy with relation to the Internet is:
a. ethically covered, but not legally.
b. is legally covered, but not ethically.
c. is neither ethically nor legally covered.
d. is both legally and ethically covered.
20. ____________ property refers to land and to the buildings and additions on the land.
a. Tangible
b. Real
c. Intangible
d. Concrete
21. Money, stocks, bonds, and other financial securities are what type of property?
a. Tangible
b. Real
c. Intangible
d. Concrete
22. _____________ is significantly different from the other types of property because it can be
shared with others without losing any part of it oneself.
a. Intellectual property
b. Intangible property
c. Tangible property
d. Real property
23. Once revealed, _____________ are no longer legally protected.
a. trade secrets
b. patents
c. copyrights
d. none of the above
24. Patents filed after 1995 afford protection for a period of ____________ years from the date of
application.
a. 10
b. 20
c. 25
d. 50
25. ____________ prevent others from using the same or a very similar type of symbol to represent
their products.
a. Trademarks
b. Patents
c. Copyrights
d. Trade secrets