1. Susan is an accountant who works in a company owned by Richard. Richard is concerned about the amount of taxes he will owe for the year and asks Susan to falsify his income tax return. Susan refuses. Richard fires her. Susan asks you for advice telling you that Richard is unethical and that she is certain that the law prohibits all unethical conduct. Which of the following is the theory on which Richard will most likely rely?
The employer-freedom principle
The employment-at-will principle
The free-market theory
1. Which of the following is true regarding the Organization of Economic Cooperation and Development (OECD)?
It is comprised of nations form North America, Europe, and Asia-Pacific.
It is a subsidiary of the European Union.
It is comprised of nations who entered into the North American Free Trade Agreement.
It is comprised of states inside the U.S.
1. Jack decides to donate leftover food from his restaurant to a homeless shelter. Brock, an employee who was angry with Jack over not getting a raise, claimed that Jack decided to donate the food only for publicity and that Jack did not really care about homeless people. Peggy, another employee disagreed, contending that regardless of his motivation, Jack was acting ethically because of the consequences involved and the number of people helped. Upon which of the following would Jack most likely rely in contending that he donated the food because he was motivated to help the poor?
Rawlsian moral theory
Artificial person application
1. Which of the following international organizations adopted a convention criminalizing bribes to government officials and recommending a prohibition on the tax deductibility of bribes?
The Foreign Corrupt Practices Consortium
The Organization of Economic Cooperation and Development
The International Business Legal and Ethical Revision Association
1. Monica tells all her employees that she expects them to treat others as they would like to be treated. Which of following is a descriptive term for Monica’s requirement?
The Required Rule
The Accepted Rule
The Golden Rule
The Advanced Rule
1. Which of the following is the group given the ultimate legal authority to change management?
Human resource managers
The mayor in the applicable jurisdiction
The city council in the applicable jurisdiction
1. Which of the following is true regarding shareholder primacy?
It is never legally mandated.
It is always legally mandated.
It is legally mandated only in very narrow circumstances.
There is no such thing.
1. Which of the following is the leading association of CEOs in the United States?
The Ethical Association of CEOs
The CEO Association of America
The Business Roundtable
The World Concern Association of CEOs
1. In which of the following are a majority of Fortune 500 companies incorporated?
1. According to St. Thomas Aquinas, the only true laws were those that followed ____________.
11. Which of the following plays the most significant role in instilling a sense of ethics throughout an organization?
The human resources manager
Each employee’s immediate supervisor
The employees themselves
1. According to the Delaware Supreme Court, when does the role of a director shift from being a “protector of the corporate bastion” to being an “auctioneer” charged with obtaining the highest realizable short-term value for the shareholders?
Only when the breakup of the corporation or a change of control has become inevitable
Whenever a yearly loss is reflected
At the point that a yearly loss has been reflected for three straight years
When the CEO and the board of directors are in disagreement, and there has also been a yearly loss reflected for three straight years
1. Nobel prize winner Milton Friedman asserts that “social responsibility” is a fundamentally ____________ doctrine.
1. According to the Kantian theory of universalizability, the ethical worth of an act is determined by whether one
would want such a rule applied to minority members of society
would want everyone to perform in this manner
could get away with such an action
could live with the results of such an action
1. Which of the following are the three main theories under the comparative justice framework?
Retributive, Kantian, and Rawlsian
Compensatory, comparative, and retributive
Distributive, compensatory, and retributive
Utilitarianism, teleological, and compensatory
1. Under the “Ethical Business Leader’s Decision Tree” discussed in the text, which of the following is the first question managers should ask themselves when determining whether a proposed action is ethical?
Whether it will result in a loss of profits
Whether stockholders would approve
Whether the CEO would approve
Whether it is legal
1. Which of the following is part of Kant’s categorical imperative?
The form of an action rather than the intended result determines the ethical worth.
No one person’s interest is given more weight than another.
Distribution favors the person getting the worst share.
Both that no one person’s interest is given more weight than another and that distribution favors the person getting the worst share.
1. Which of the following illustrates that corporate conduct violating society’s expectations can result in new forms of regulation without regard for feasibility or cost?
The White-Rush Dow Jones Conciliatory Act of 2011
The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
The Corporate and Securities Reform and Retribution Consumer Protection Act of 2011
The Securities and Oversight Act of 2009.
1. Rawls believed that social policies developed behind the veil of ignorance would create a system that most benefits the
Least well off
Most well off
1. Which of the following statements regarding the teleological theory is false?
Teleological theory is concerned with consequences.
Teleological theory judges the ethical good of an action by the effect of the action on others.
Teleological theory focuses more on the motivation and principle behind an action.
Both that teleological theory is concerned with consequences and that teleological theory judges the ethical good of an action by the effect of the action on others.