CHAPTER 1

1. Unethical corporate behavior could impact a community negatively if it

were to lead to an economic decline.
True
False
2. Creditors, vendors, customers, suppliers, and wholesalers are all examples of
an organization’s___.
Stakeholders
3. Business ethics can be approached from two distinct perspectives:
prohibitive and preventative.
True
False
4. The belief that an activity is safe because it will never be found out is a
common rationalization behind an employee’s unethical conduct. What can
an organization do to deter unethical behavior based on this rationalization?
Managers should take punitive action in private.
Managers should punish the individuals publicly.
Managers should ideally ignore first-time offenders.
Managers should reprimand the individual discretely.
5. Business ethics can be approach from two different perspectives. The ___
perspective simply documents what is happening.
Descriptive
6. Which of the following perspectives of business ethics is a simple
documentation of what is happening
Arbitrative
Normative
Prescriptive
Descriptive
 7. Which of the following is true of stakeholders?
Not every stakeholder is relevant in every business situation.
The stakeholders of an organization are not affected by its unethical behavior.
The cancellation of an organization’s dividends has no impact upon stakeholders.
Creditors are not considered the stakeholders of
8. Stakeholders include stockholders, employees, and the federal government.
True
False
9. A company’s code of ethics comprises written standards of moral behavior
that are designed to guide managers and employees in making the decisions
and choices they face every day.
True
False
10.A stakeholder is someone with a share or interest in a business enterprise
True
False
[Link] the ___ principle to resolve an ethical dilemma involves
considering what would happen if everybody made the same decision as
you.
Rules-based
[Link] ethics can be approached from two different perspectives. The ___
perspective is a summation of the customs, attitudes, and rules that are
observed within a business.
Descriptive
13.A(n) ___ is defined as a central guide that supports day-to-day decision
making at work.
Business matrix
Code of ethics
 [Link] behavior should be the same both inside and outside a business
situation,
True
False
[Link] ___ principle for resolving an ethical dilemma considers which decision
would provide the greatest good for the greatest number of people.
Ends-based
Rules-based
Golden rule
Volcker’s rule
16. Business ethics can be approached from two different perspectives. The ___
perspective is the evaluation of the degree to which the observed customs,
attitudes, and rules can be said to be ethical.
Descriptive
Prohibitive
Normative
Preventative
17. How can companies reduce unethical behavior in their companies?
By disciplining unethical a corporate culture of trust
By creating and maintaining a corporate culture of trust
By giving their CEOs more power than their boards of directors
By not conducting audits and spot checks
18. Which of the following scenarios exemplifies instrumental value?
Victoria possesses half a million in her bank account.
Eighty-year Mathew is in good health.
Cathy is always happy.
Fernando is upset with his poor SAT scores.
19. A(n) ___ is just doing the right things, and it is something most people can
understand and support.
Simple truth
20. ___ can be said to have instrumental value
Money
Self-respect
Happiness
Health
21. Moral standards are independent of religious beliefs.
True
False
22. Kohlberg argued that the higher the reasoning stage, the more ethical the
decision.
True
False
23. An intrinsic value means that the pursuit of one value is a good way to reach
another value.
True
False
24. Jason is a high-school senior whose peers are into drugs. He also has a family
his tory of substance abuse. This will have no impact his moral standards.
True
False
25. Which of the following indicates the rules of appropriate individual behavior?
Jamie had a strict family upbringing that had major impact on his personal moral
standards.
Mitchell had never lied to her parents or done anything without their consent.
Damian always reached the workplace before time and is always the last one to
leave.
Alice travels to different countries for work and conducts herself according to the
culture of the country she visits.
26. Happiness and health are examples of instrumental values that are pursued to
reach another value.
True
False
27. The problem with virtue ethics is that societies can place different emphasis on
different virtues.
True
False
28. Riley was granted the title of Doctor of Medicine by a medical school in Ohio.
His parents were extremely happy and content with his achievement. The worth
attached to the feelings experienced by Riley’s parents is an example of___.
An unconventional value
An intrinsic value
An instrumental value
The Golden Rule
29. The theory of ___ places actions within a strictly moral context instead of
basing actions on the needs of a particular situation.
Normative ethics
Universal ethics
Reductionism
Utilitarianism
30. ___ is based on the assumption that one’s pursuit of an ethical ideal will match
other’s ethical ideals.
Golden Rule
31. The ___ approach focuses more on the integrity of the moral actor (the person)
than on the moral act itself (the decision or behaviour).
Utilitarian ethics
Integrity value
Virtue ethics
Universal ethics
33. Charlotte works at an advertising agency. She is usually late in responding to e-
mails. She realizes this after an important project, she was responsible for, was
delayed due to similar behavior from her manager. Now, Charlotte replies to her e-
mails on time. Which of the following would indicate that this change in
Charlotte’s behavior was a result of adopting the Golden rule?
Charlotte empathized with others when she faced a similar situation.
Charlotte was afraid that her manager would give her a low rating.
Charlotte wanted to impress her colleagues.
Charlotte had no friends and was lonely.
34. “You scratch my back, I’ll scratch yours.”
Stage 1
Stage 2
Stage 3
Stage 4
35. Kohlberg stated that it would be impossible for a person to comprehend the
moral issues and dilemmas at a level so far beyond his own her life experience and
education.
True
False
36. ___ can be said to have intrinsic value
Money
A package holiday
A job offer
Health
37. ___ is just doing the right thing, and it is something most people can
understand and support.
Memory conformity
The rule of differentiation
Double think
A simple truth
38. Which of the following is true of ethical relativism
The problem with this approach is that everyone is committed to doing the right
thing.
39. At the ___ stage, a person is focused on self-chosen ethical principal that are
found to be comprehensive and consistent.
“good boy/nice girl” ethical orientation
Law and order orientation
Universal ethical principle orientation
Obedience and punishment orientation
40. An ethical dilemma can be resolved with a satisfactory answer to the problem
True
False
41. The interests of creditors in an organization focus specifically on the
employment of local residents and the safety of the work environment.
True
False
42. Which of the following is true of business ethics?
The descriptive dimension of business ethics evaluates the degree to which the
observed customs, attitudes, and rules of a business are ethical.
43. ___ is the system that directs and controls business corporations.
Corporate governance
44. An organization’s code of ethics does not pertain to the everyday functioning
of its managers and employees.
True
False
45. The ___ principle for resolving an ethical dilemma considers what would
happen if everyone made the same decision as you.
Rules-based
Ends-based
Golden Rule
Volcker’s Rule