Student name:__________
TRUE/FALSE - Write 'T' if the statement is true and 'F'
if the statement is false.
1) Ethics are primarily based on religious beliefs.
⊚ true
⊚ false
2) Ethical ideas are present in all societies, all
organizations, and all individual persons.
⊚ true
⊚ false
3) If all people relied on ethical relativism, there would
be no universal ethical standards on which people around the
globe could agree.
⊚ true
⊚ false
4) Business must develop its own definition of what is
right and wrong, apart from ethics.
⊚ true
⊚ false
5) Business cannot expect to be profitable while adhering
to ethical principles of conduct.
⊚ true
⊚ false
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6) The U.S. Corporate Sentencing Guidelines provide a
strong incentive for businesses to promote their ethics at
work.
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⊚ true ⊚ false
7) The Sarbanes–Oxley Act requires that firms maintain
good financial practices, apart from high ethical standards, in
how they conduct and monitor business operations.
⊚ true
⊚ false
8) An ethical egoist acts for the benefit of others and
sacrifices self-interest.
⊚ true
⊚ false
9) Because managers make major decisions, they have
limited opportunity to influence the ethical tone of the firm.
⊚ true
⊚ false
10) Only in the last few years have scholars found a performance and attention
positive relationship between an organization's economic to spiritual values.
⊚ true
⊚ false
11) Managers in the same company are likely to be at the
same stages of moral reasoning at any given time.
⊚ true
⊚ false
12) For managers who
reason at stages 2 and 3,
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their personal rewards, recognition from others, or
compliance with the company's rules become their main
ethical compass.
⊚ true
⊚ false
13) According to utilitarian reasoning, an action is
ethically preferred when its benefits outweigh its costs.
⊚ true
⊚ false
14) Business managers should use all four methods of better understand ethical
ethical reasoning—virtues, utility, rights, and justice—to issues at work.
⊚ true
⊚ false
15) Moral intensity refers to the perception of how illegal
an ethical issue is.
⊚ true
⊚ false
MULTIPLE CHOICE - Choose the one alternative that
best completes the statement or answers the question.
16) A conception of right and wrong is
D) based on
A) impossible to know. stakeholder dialogue.
B) the definition of ethics.
C) determined by power.
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17) People's ethical principles come from
D) the
A) legislative action and judicial decisions. organization's code of
B) reading the company's profit and loss statements. ethics.
C) their religious background, family, and education.
18) Ethical relativism is most accurately defined by which
statement?
boundaries.
A) Ethical principles transcend all periods of time in D) All religions
history. agree on a common set of
B) What’s ethical in one society may be forbidden in universal ethical standards.
another.
C) Ethical beliefs are identical across international
19) Businesses are expected to be ethical in their
relationships with
D) All of these
A) stockholders. choices are correct.
B) customers.
C) competitors.
20) What normative reason is there for business to be
ethical, according to Figure 5.1?
D) to comply with
A) to enhance business performance legal requirements
B) to promote personal morality
C) to meet the demands of stakeholders
21) How do ethical business practices impact the
sentencing of an employee convicted of criminal activity,
according to the U.S. Corporate Sentencing Guidelines?
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D) The U.S.
A) There is no impact because a firm is never Corporate Sentencing
responsible for the actions taken by an employee. Guidelines are temporarily
B) The degree of blame is calculated based on how suspended while under
strong the firm’s ethical policies are. review.
C) The U.S. Sentencing Commission does not take
ethics into account when sentencing.
22) Under the Sarbanes–Oxley Act, corporations are
required to
D) transparently
A) have executives vouch for the accuracy of a firm’s report the number of
financial reports. employees who
B) have their audit committee comprised of only consistently do the right
executives employed by the firm. thing.
C) collect reimbursements from the U.S. government
if financial restatements occur.
23) A purchasing agent giving an exclusive contract to a
supplier, from which she received a valuable gift, is an
example of
D) altruistic
A) conflict of interest. behavior.
B) ethical relativism.
C) moral development.
24) Cross-cultural contradictions arise due to
ethical standards.
A) the emergence of a developing country’s economic D) All of these
power. choices are correct.
B) religious differences practiced by business
executives.
C) differences between home and host countries’
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25) An ethics issue based on cross-cultural contradictions
is best illustrated by which example?
D) false and
A) legally marketing a pesticide abroad that has been misleading advertising
banned in the United States claims
B) circumventing government regulations to ensure
company profits
C) hiring child workers in violation of civil law
26) A recent study found that, compared to the 1980s, values, such as honesty
managers today place what level of importance on moral and forgiveness?
D) triple the
A) less important importance
B) about the same importance
C) slightly more important
27) According to an annual Gallup poll, which occupation
was consistently ranked the highest for honesty and ethics?
C) nurses
A) lawyers D) clergy
B) bankers
28) Why do some disagree with the trend toward a
stronger presence of religion in the workplace?
D) People with a
A) Bringing religion into the workplace causes stress strong religious identity
for the majority of workers. tend to take less
B) Spirituality increases personal growth but has no responsibility for their
impact on the business world. decisions.
C) They cite the separation of church and state in the
United States and other countries.
29) As spirituality in the workplace has increased, how have some organizations
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responded?
activities on the job
A) partnered with local churches and temples to allow D) built separate
spiritual visits for workers physical areas for those
B) created ways to allow for religious diversity and who are religious and those
expression at work who are not
C) disallowed employees from engaging in religious
30) Which age groups within the stages of moral
development apply egocentric reasoning?
D) youth, early
A) adulthood only adulthood
B) mature adulthood
C) childhood, youth
31) In early adulthood, young people can improve their
level of moral reasoning by
D) watching
A) learning the give-and-take of group life. family-oriented television
B) spending quality time with mature adults. daily.
C) being caregivers to infants and children.
32) How would a manager at moral reasoning level 4, full
adulthood, likely respond to a new government regulation?
D) complain to
A) comply with the law management
B) ignore the new ruling
C) consult with a group
33) Mature adults typically base their ethical reasoning on
broad principles and relationships such as
human dignity.
A) human rights and constitutional guarantees of B) universal
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principles of justice, such as equal treatment. equal treatment” are
C) customs and traditions displayed by their peers. correct.
D) Both “human rights and constitutional guarantees
of human dignity” and “universal principles of justice, such as
34) Business managers need a set of ethical guidelines to
help them
problem.
A) understand the changing customs throughout the D) decide which
world. action is likely to bring the
B) justify their own self-serving solutions. best financial result.
C) identify and analyze the nature of an ethical
35) Aristotle argued
D) high-
A) self-control is the most virtuous of values. mindedness delivers
B) faith is a road to charity and modesty. human integrity.
C) moral virtue is a mean between two vices.
36) When the benefits of an action outweigh its costs, the
action is considered ethically preferred according to
D) Plato and
A) utilitarian reasoning. Aristotle.
B) virtue ethics.
C) theological reasoning.
37) The main drawback to utilitarian reasoning is that
benefits.
A) the majority may override the rights of those in the D) cost-benefit
minority. calculations can only be
B) managers using this reasoning process often fail to provided by accountants.
consider the means taken to reach the end.
C) it is difficult to accurately measure both costs and
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38) At the core of rights reasoning is the belief that
D) economic and
A) the company's right to a profit must be protected. political powers determine
B) respecting others is the essence of human rights. who is right.
C) the right to join a union is no longer universally
accepted.
39) A just or fair ethical decision occurs when
proportions.
A) the rights of all affected are considered. D) benefits exceed
B) the greatest good for those with power is achieved. costs.
C) benefits and burdens are distributed in fair
40) The reason(s) behind the uncertainty of an ethical
decision is(are) that different people and groups
D) All of these
A) may use different sources of information. choices are correct.
B) may rank various rights in different ways.
C) may not share the same meaning of justice.
41) One factor in determining the moral intensity of an
ethical issue is how quickly the consequences take effect, a
factor that is known as
C) proximity.
A) temporal immediacy. D) probability.
B) social consensus.
42) As a factor of moral intensity, how does the proximity
of an issue affect the decision maker?
intensity.
A) The shorter the physical distance, the lower the B) The greater the
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psychological distance, the higher the intensity. intensity.
C) The greater the empathy, the higher the intensity.
D) The shorter the social distance, the lower the
43) Why is it important for an ethical decision maker to
consider the probability that the action will lead to the
consequences predicted?
D) to save face if
A) to solve the problem before time runs out things don’t work out
B) to mitigate the likelihood of harm
C) to stay in line with social consensus
44) A high magnitude of consequences that increases the
moral intensity of an ethical issue is best exemplified by
which of the following?
from the supply closet.
A) A manager used company funds to pay for personal D) A food product
expenses. contaminated with
B) A contract employee recorded more hours than he salmonella was distributed
or she actually worked. to stores.
C) An employee stole several packs of paper clips
45) Which type of ethical issue did 3M face with regard to N95 Respirators for
price gouging accusations, according to the case “3M and Americans”?
D) personal gain
A) cross-cultural contradictions and selfishness
B) competitive pressures on profits
C) conflicts of interest
46) Which factor of moral intensity likely played the
biggest role in 3M’s response to FEMA’s request, according
to the case “3M and N95 Respirators for Americans”?
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C) magnitude
A) probability D) proximity
B) social consensus
SHORT ANSWER. Write the word or phrase that best 47) Briefly discuss the
completes each statement or answers the question. meaning of ethics.
48) Discuss why businesses should be ethical.
49) Explain the purpose of the Sarbanes–Oxley Act. What
issues does the act address? Is this act still a potent
government tool?
50) Four reasons given in the textbook state why ethical
problems occur in business. Identify the nature of each ethical
problem and the typical approach taken in response to the
problem.
51) How does a
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person’s spirituality influence his or her ethical behavior? accommodate their
How have organizations responded to the increased attention employees?
to spirituality and religion at work in their attempt to
52) Define and discuss the six stages of moral is the basis of ethics
development. What is the ethics referent at each stage? What reasoning at each stage?
53) What are the four methods of ethical reasoning?
Discuss the limitations of each of the four methods.
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Answer Key
Test name: Lawrence_chapter5
1) FALSE
2) TRUE
3) TRUE
4) FALSE
5) FALSE
6) TRUE
7) FALSE
8) FALSE
9) FALSE
10) FALSE
11) FALSE
12) TRUE
13) TRUE
14) TRUE
15) FALSE
16) B
17) C
18) B
19) D
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20) B
21) B
22) A
23) A
24) C
25) A
26) C
27) C
28) C
29) B
30) C
31) A
32) A
33) D
34) C
35) C
36) A
37) C
38) B
39) C
40) D
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41) A
42) C
43) B
44) D
45) B
46) C
47) Answers may vary.
48)Answers may vary.
49)Answers may vary.
50)Answers may vary.
51)Answers may vary.
52)Answers may vary.
53)Answers may vary.
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