Business Ethics Comprises

NOTE: 1. CASE 2, p316~324
1. Business ethics comprises

A) the laws and regulations that guide behavior in the world of business.
B) the morals, values, and customs that guide behavior in general.
C) the principles and standards that guide behavior in the world of business.
D) the obligations businesses assume to maximize their positive impact and minimize their negative impact on stakeholders.
E) the morals, values, and customs that parents teach their children.

2. Social responsibility is

A) an organization’s obligation to maximize its positive effects and minimize its negative effects on stakeholders.
B) principles and standards that guide behavior in the world of business.
C) a business’s responsibility not to pollute the environment.
D) a business’s responsibility to manufacture products that function properly without harming consumers.
E) charitable contributions made by a business to enhance its image.

3. Which of the following is not one of the rights spelled out by John F.Kennedy in his Consumers’ Bill of Rights? .

A) The right to choose
B) The right to safety
C) The right to be informed
D) The right to be ethical
E) The right to be heard

4. Business ethics was acknowledged as a field of study by business academics and practitioners in the .

A) 1990s.
B) 1980s.
C) 1970s.
D) 1960s.
E) years prior to 1960.

5. Which statement best describes the evolution of business ethics?

A) From a field of study to theological discussion to recognition of social issues
B) From recognition of social issues to a field of study to theological discussion
C) From a field of study to recognition of social issues to theological discussion
D) From recognition of social issues to theological discussion to a field of study
E) From theological discussion to recognition of social issues to a field of study

6. Before the 1960s, ethical issues related to business were often discussed

A) theologically.
B) economically.
C) politically.
D) sociologically.
E) psychologically.

7. The study of business ethics is important to better understand all of the following except

A) that a person’s own moral philosophies and decision-making experiences may not be sufficient to guide him or her in the business world.
B) how and why people make ethical or unethical decisions.
C) how to cope with conflicts between a person’s own values and those of the organization in which he or she works.
D) that business ethics is merely an extension of an individual’s own personal ethics.
E) how to identify ethical issues that arise in the business world.

8. Individuals’ personal ethics play a major role in the evaluation of business decisions only when their preferences or values

A) differ from those of their employer.
B) influence their performance in the workplace.
C) are unethical.
D) are ethical.
E) result in negative publicity for their employer.

9. The ability of a business organization to achieve its business goals is directly affected by whether its behavior is judged to be right or wrong by

A) society.
B) its union members.
C) its employees.
D) Congress.
E) its competitors.

10. An individual with acceptable personal ethics may not be able to handle complex business ethical issues if the individual has

A) family concerns.
B) an unethical boss.
C) limited business experience.
D) financial concerns.
E) a marketing background.

11. The study of business ethics in North America has evolved through _____ distinct stages.

A) five
B) four
C) three
D) ten
E) nine

12. Business professors began to teach and write about social responsibility during the

A) 1960s.
B) 1970s.
C) 1980s.
D) 1990s.
E) 2000s.

13. To be successful, relationships with investors must rest on dependability, _____, and commitment.

A) Profits
B) Dividends
C) Trust
D) Confidence
E) codes of ethics

14. Recently, what type of unethical behavior within business has resulted in a significant reduction of trust among the general public?

A) Accounting fraud
B) Environmentally unsafe practices
C) Employee discrimination and harassment
D) Defective products
E) Bribery

15. Which of the following is not one of the rewards for being ethical and socially responsible in business?

A) Greater employee commitment
B) Greater employee turnover
C) Improved customer trust and satisfaction
D) Increased investor willingness to entrust funds
E) Better financial performance

16. Employees’ perceptions of their firm as having an ethical climate lead to

A) lack of focus on goals.
B) negative performance.
C) social responsibility.
D) improved relationships with competitors.
E) performance-enhancing outcomes.

17. When employees see honesty, respect, and trust applied frequently in the workplace, they

A) feel less pressure to compromise ethical standards.
B) observe less misconduct.
C) are more satisfied with their organizations overall.
D) feel more valued as employees.
E) All of these

18. Investors are concerned about business ethics because they know that misconduct can

A) foster stability.
B) improve employee commitment.
C) improve customer loyalty.
D) lower stock prices.
E) raise stock prices.

19. Most strong organizational climates focus on the core value of placing ________ interests first.

A) customers’
B) employees’
C) stockholders’
D) suppliers’
E) distributors’

Ans:  A Format:  Multiple Choice Page:  21
20. In the history of business ethics, the 1990s can best be described as a time when business ethics was

A) formalized.
B) consolidated.
C) institutionalized.
D) popularized.
E) marginalized.

21. An ethical issue is a problem, situation, or opportunity

A) that harms consumers.
B) that harms the environment.
C) that requires society to choose among several actions that must be evaluated as right or wrong.
D) that requires an individual, group, or organization to choose among several actions that must be evaluated as ethical or unethical.
E) that requires an individual, group, or organization to choose between harming consumers or the environment and earning more profits.

22. Ethical issues in business are defined by

A) customers.
B) government regulators.
C) employees.
D) shareholders.
E) stakeholders.

23. Which of the following statements about stakeholders is correct?

A) None of the external stakeholders are primary stakeholders.
B) External stakeholders cannot be primary stakeholders.
C) All internal stakeholders are primary stakeholders.
D) Coop stakeholders cannot be secondary.
E) Secondary stakeholders can be tertiary.

24. Which of the following does not represent the set of primary stakeholders of a business?

A) Employees, customers, and investors
B) Shareholders, the community, and the media
C) Customers, investors, and government
D) Employees, investors, and shareholders
E) The community, employees, and government

25. The primary responsibility of ensuring that ethical, legal, and social standards are adhered to within a business rests with

A) the investors.
B) the government.
C) the management board.
D) the employees.
E) the customers.