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TESTBANK FOR Business Ethics Ethical Decision Making and Cases 14th Edition Ferrell

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Business Ethics Ethical Decision Making and Cases 14th Edition Ferrell


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,Chapter 01: The Importance of Business Ethics
1. Morals are enduring beliefs and ideals that are socially enforced.
a. True
b. False

ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1-1 Business Ethics Defined
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES:LO1.1 - Illustrate what is meant by saying that human behavior is
shaped by social structure.
NATIONAL STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
KEYWORDS: Bloom's: Remember
DATE CREATED: 3/3/2025 2:08 AM
DATE MODIFIED: 3/7/2025 1:06 AM

2. Every organization has the potential for unethical behavior.
a. True
b. False

ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1-2 Why Study Business Ethics?
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: LO1.2 - Question individualistic explanations of human behavior.
NATIONAL STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
KEYWORDS: Bloom's: Remember
DATE CREATED: 3/3/2025 2:09 AM
DATE MODIFIED: 3/7/2025 1:06 AM

3. Until 1960, ethical issues related to business were often discussed in the domain of theology or
philosophy.
a. True
b. False

ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1-3 The Development of Business Ethics
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: LO1.3 - Describe the significance of studying diversity in
Copyright Cengage Learning. Powered by Cognero. Page 1

, contemporary society.
NATIONAL STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
KEYWORDS: Bloom's: Remember
DATE CREATED: 3/3/2025 2:10 AM
DATE MODIFIED: 3/7/2025 1:06 AM

4. ISO 37301 is a set of 10 principles concerning human rights, labor, the environment, and anti-
corruption.
a. True
b. False

ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1-4 Developing Organizational and Global Ethical Cultures
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: LO1.4 - Explain the origins of sociological thought.
NATIONAL STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
KEYWORDS: Bloom's: Remember
DATE CREATED: 3/3/2025 2:10 AM
DATE MODIFIED: 3/7/2025 1:06 AM

5. The primary reason businesses adopt ethical practices is to improve financial performance, rather than
as a reflection of their responsibility as members of society.
a. True
b. False

ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1-5 The Benefits of Business Ethics
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES:LO1.5 - Compare and contrast the major frameworks of sociological
theory.
NATIONAL STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
KEYWORDS: Bloom's: Remember
DATE CREATED: 3/3/2025 2:11 AM
DATE MODIFIED: 3/12/2025 7:16 AM

6. During the 1980s, the field of business ethics matured as a recognized discipline, influenced by both
academic and corporate developments. If you were a corporate leader in this era tasked with
implementing ethical practices following the Defense Industry Initiative (DII) principles, which action
Copyright Cengage Learning. Powered by Cognero. Page 2

,would align most effectively with these principles?
a. Conduct annual ethics training for employees and establish a safe mechanism for reporting unethical behavio
of retribution.
b. Develop an internal policy to prioritize profit maximization, even at the expense of ethical considerations in c
markets.
c. Limit ethics training to senior management while holding lower-level employees accountable for compliance
independently.
d. Focus exclusively on adhering to government-imposed regulations and ignore self-regulatory initiatives.

ANSWER: a
POINTS: 1
DIFFICULTY: Difficult
REFERENCES: 1-3 The Development of Business Ethics
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: LO1.3 - Describe the significance of studying diversity in contemporary societ
NATIONAL STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical Responsibilitie
KEYWORDS: Bloom's: Apply
DATE CREATED: 3/3/2025 2:11 AM
DATE MODIFIED: 3/7/2025 1:06 AM

7. Ethically charged decisions:
a. are made at all levels of work and management.
b. are made primarily by top management.
c. stem from individual moral philosophies.
d. are less important than other decision-making processes.

ANSWER: a
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1-1 Business Ethics Defined
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES:LO1.1 - Illustrate what is meant by saying that human behavior is
shaped by social structure.
NATIONAL STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
KEYWORDS: Bloom's: Understand
DATE CREATED: 3/3/2025 2:12 AM
DATE MODIFIED: 3/7/2025 1:06 AM

8. Which of the following was developed in the 1980s to support organizations’ ethical programs?
a. Federal Sentencing Guidelines for Organizations
b. Defense Industry Initiative on Business Ethics and Conduct
c. Foreign Corrupt Practices Act
d. U.S. Sentencing Commission


Copyright Cengage Learning. Powered by Cognero. Page 3

,ANSWER: b
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1-3 The Development of Business Ethics
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES:LO1.3 - Describe the significance of studying diversity in
contemporary society.
NATIONAL STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
KEYWORDS: Bloom's: Remember
DATE CREATED: 3/3/2025 2:13 AM
DATE MODIFIED: 3/7/2025 1:06 AM

9. Which of the following incentivizes firms to prevent and detect misconduct by offering rewards for
compliance with government regulations?
a. U.S. Sentencing Commission
b. Defense Industry Initiative on Business Ethics and Conduct
c. World Trade Organization
d. Federal Sentencing Guidelines for Organizations

ANSWER: d
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1-3 The Development of Business Ethics
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES:LO1.3 - Describe the significance of studying diversity in
contemporary society.
NATIONAL STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
KEYWORDS: Bloom's: Remember
DATE CREATED: 3/3/2025 2:13 AM
DATE MODIFIED: 3/7/2025 1:06 AM

10. What is the primary difference between morals and values as defined in the context of business
ethics?
a. Morals are socially enforced, while values are personal beliefs about right and wrong.
b. Morals are specific to individuals, while values are enduring beliefs enforced by society.
c. Morals define organizational principles, while values dictate legal requirements.
d. Morals are group norms, while values are personal philosophies.

ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 1-1 Business Ethics Defined
QUESTION TYPE: Multiple Choice
Copyright Cengage Learning. Powered by Cognero. Page 4

,HAS VARIABLES: False
LEARNING OBJECTIVES: LO1.1 - Illustrate what is meant by saying that human behavior is
shaped by social structure.
NATIONAL STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
KEYWORDS: Bloom's: Understand
DATE CREATED: 3/3/2025 2:14 AM
DATE MODIFIED: 3/7/2025 1:06 AM

11. Which of the following best describes the role of stakeholders in determining business ethics?
a. Stakeholders always have uniform judgments about ethical decisions.
b. Stakeholders influence the acceptance or rejection of business practices by society.
c. Stakeholders consist of customers and investors in a business context.
d. Stakeholders determine the corporate culture of an organization.

ANSWER: b
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1-1 Business Ethics Defined
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES:LO1.1 - Illustrate what is meant by saying that human behavior is
shaped by social structure.
NATIONAL STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
KEYWORDS: Bloom's: Remember
DATE CREATED: 3/3/2025 2:14 AM
DATE MODIFIED: 3/7/2025 1:06 AM

12. As more than a compliance program, what is business ethics becoming?
a. An integral part of management’s efforts to achieve competitive advantage
b. A guaranteed way to earn higher financial returns
c. Mainly a government regulatory issue
d. An initiative led by nonprofit organizations

ANSWER: a
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1-5 The Benefits of Business Ethics
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES:LO1.5 - Compare and contrast the major frameworks of sociological
theory.
NATIONAL STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
KEYWORDS: Bloom's: Remember
Copyright Cengage Learning. Powered by Cognero. Page 5

,DATE CREATED: 3/3/2025 2:15 AM
DATE MODIFIED: 3/7/2025 1:06 AM

13. Employees who view their organizational culture as ethical are more likely to:
a. ask for a raise.
b. use their personal moral philosophies in decision-making.
c. make personal sacrifices for the organization.
d. gain more organizational training.

ANSWER: c
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1-5 The Benefits of Business Ethics
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES:LO1.5 - Compare and contrast the major frameworks of sociological
theory.
NATIONAL STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
KEYWORDS: Bloom's: Understand
DATE CREATED: 3/3/2025 2:16 AM
DATE MODIFIED: 3/7/2025 1:06 AM

14. You are tasked with developing a corporate ethics program for a multinational organization. Based on
the framework for studying business ethics, which of the following steps would best ensure the ethical
decision-making process is integrated into organizational practices?
a. Focusing exclusively on individual factors, such as moral philosophies.
b. Establishing a compliance management system aligned with ISO 37301.
c. Creating a single code of ethics without monitoring or enforcement mechanisms.
d. Relying solely on organizational culture to resolve ethical dilemmas.

ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 1-6 Our Framework for Studying Business Ethics
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: LO1.6 - Discuss a model for studying business ethics
NATIONAL STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
KEYWORDS: Bloom's: Apply
DATE CREATED: 3/3/2025 2:16 AM
DATE MODIFIED: 3/7/2025 1:06 AM

15. What is the key distinction between ordinary decisions and ethical decisions in a business context?
a. Ethical decisions are made based on profits, while ordinary decisions follow established rules.
b. Ordinary decisions follow established rules, while ethical decisions require weighing values of
Copyright Cengage Learning. Powered by Cognero. Page 6

, situations.
c. Ordinary decisions prioritize stakeholder needs, while ethical decisions are guided by
corporate culture.
d. Ethical decisions are influenced only by legal regulations, while ordinary decisions follow
personal morals.

ANSWER: b
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1-1 Business Ethics Defined
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: LO1.1 - Illustrate what is meant by saying that human behavior is shaped by s
NATIONAL STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical Responsibilitie
KEYWORDS: Bloom's: Understand
DATE CREATED: 3/3/2025 2:17 AM
DATE MODIFIED: 3/7/2025 1:06 AM

16. A far-reaching change to organizational control and accounting systems, making securities fraud a
criminal offense, was accomplished by which of the following?
a. Foreign Corrupt Practices Act
b. Sarbanes-Oxley Act
c. Consumer Protection Act
d. Defense Industry Initiative on Business Ethics and Conduct

ANSWER: b
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1-3 The Development of Business Ethics
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES:LO1.3 - Describe the significance of studying diversity in
contemporary society.
NATIONAL STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
KEYWORDS: Bloom's: Remember
DATE CREATED: 3/3/2025 2:18 AM
DATE MODIFIED: 3/7/2025 1:06 AM

17. What does the Global Business Ethics Survey (GBES) measure?
a. Profitability of global organizations
b. Workplace integrity and key ethics outcomes
c. Employee productivity in leading economies
d. Corporate social responsibility initiatives

ANSWER: b
POINTS: 1
Copyright Cengage Learning. Powered by Cognero. Page 7

, DIFFICULTY: Easy
REFERENCES: 1-2 Why Study Business Ethics?
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: LO1.2 - Question individualistic explanations of human behavior.
NATIONAL STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
KEYWORDS: Bloom's: Understand
DATE CREATED: 3/3/2025 2:19 AM
DATE MODIFIED: 3/7/2025 1:06 AM

18. The Sarbanes-Oxley Act resulted in which of the following?
a. It stiffened penalties for personal fraud.
b. It created an accounting oversight board.
c. It required stakeholders to approve financial statements.
d. It outlawed bribery of officials in other countries.

ANSWER: b
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1-3 The Development of Business Ethics
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES:LO1.3 - Describe the significance of studying diversity in
contemporary society.
NATIONAL STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical
Responsibilities
KEYWORDS: Bloom's: Remember
DATE CREATED: 3/3/2025 2:19 AM
DATE MODIFIED: 3/7/2025 1:06 AM

19. An employee in a multinational corporation observes a colleague engaging in favoritism toward
certain team members, leading to unequal treatment within the team. The employee knows the
organization's ethics code prohibits such behavior. Based on the findings of the Global Business Ethics
Survey (GBES), which of the following actions would best align with workplace integrity and ethical
decision-making principles?
a. Ignore the misconduct to avoid potential retaliation from management.
b. Discuss the observed favoritism with a trusted mentor to seek advice on the next steps.
c. Report the misconduct through the company’s anonymous ethics hotline.
d. Confront the colleague directly and demand an explanation for their behavior.

ANSWER: c
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 1-2 Why Study Business Ethics?
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
Copyright Cengage Learning. Powered by Cognero. Page 8

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