BUSINESS ETHICS FERRELL FRAEDRICH
TEST BANK 2026 QUESTIONS WITH
SOLUTIONS GRADED A+
⩥ In business, every decision can be covered by economic, legal, or
company rules and regulations. Answer: False
⩥ In a general sense, a business stakeholder is one who has made
substantial financial investments in the business. Answer: False
⩥ Ethics refers to how human beings should properly live their lives.
Answer: True
⩥ Values are the only guidance individuals need to act in ways that are
positive or ethical. Answer: False
⩥ Societies that value individual freedom legally stipulate codes of
personal integrity and common decency to safeguard this freedom.
Answer: True
⩥ In civil law, there is no room for ambiguity in applying the law
because much of the law is established by past precedent. Answer: False
,⩥ Identify a true statement about ethical decision making in business.
Answer: Ethical decision making is not limited to major corporate
decisions with dramatic social consequences.
⩥ Identify a true statement about ethical decision making in business
Answer: At some point, every worker will be faced with an issue that
will require ethical decision making.
⩥ In a general sense, anyone who affects or is affected by decisions
made within a firm can be called a business ________. Answer:
stakeholder
⩥ Which of the following is an approach advocated while teaching
ethics? Answer: Teachers should challenge students to think for
themselves.
⩥ Philosophers often state that ethics is ________, which means that it
focuses on people's reasoning about how they should act. Answer:
normative
⩥ Social sciences such as psychology and sociology are different from
ethics owing to the fact that they are ________. Answer: descriptive in
nature
,⩥ Individual codes of conduct based on one's value structures regarding
how one should live, how one should act, what one should do, and what
kind of a person should one be is sometimes referred to as ________.
Answer: morality
⩥ Ethics refers to the applications of ________ on which people's
decisions are based. Answer: morals
⩥ The aspect of business ethics that examines business institutions from
a social rather than an individual perspective is referred to as: Answer:
decision making for social responsibility.
⩥ Which of the following is a true statement about norms? Answer:
They are standards of appropriate and proper behavior.
⩥ Which of the following is true about values? Answer: Values are
underlying beliefs that cause us to act or to decide in a certain way.
⩥ Dramatic examples of tyrannical regimes in history demonstrate that:
Answer: one's ethical responsibility may run counter to the law.
⩥ Which of the following is the pursuit of the highest standard for what
we should believe? Answer: Theoretical reason
, ⩥ The first step in making decisions that are ethically responsible is to
consider all of the people affected by a decision, the people often called
stakeholders. Answer: False
⩥ Missing a highway turn-off as a result of speaking on a cell phone
while driving is an example of ________. Answer: inattentional
blindness
⩥ In the ethical decision-making process, once one examines the facts
and identifies the ethical issues involved, one should next ________.
Answer: identify the stakeholders
⩥ Ethical decisions cannot be made on economic grounds. Answer:
False
⩥ Inattentional blindness is the inability to recognize ethical issues.
Answer: False
⩥ Normative myopia occurs only in business. Answer: False
⩥ A critical element of comparing and weighing the alternatives is the
consideration of ways to mitigate, minimize, or compensate for any
possible harmful consequences. Answer: True
TEST BANK 2026 QUESTIONS WITH
SOLUTIONS GRADED A+
⩥ In business, every decision can be covered by economic, legal, or
company rules and regulations. Answer: False
⩥ In a general sense, a business stakeholder is one who has made
substantial financial investments in the business. Answer: False
⩥ Ethics refers to how human beings should properly live their lives.
Answer: True
⩥ Values are the only guidance individuals need to act in ways that are
positive or ethical. Answer: False
⩥ Societies that value individual freedom legally stipulate codes of
personal integrity and common decency to safeguard this freedom.
Answer: True
⩥ In civil law, there is no room for ambiguity in applying the law
because much of the law is established by past precedent. Answer: False
,⩥ Identify a true statement about ethical decision making in business.
Answer: Ethical decision making is not limited to major corporate
decisions with dramatic social consequences.
⩥ Identify a true statement about ethical decision making in business
Answer: At some point, every worker will be faced with an issue that
will require ethical decision making.
⩥ In a general sense, anyone who affects or is affected by decisions
made within a firm can be called a business ________. Answer:
stakeholder
⩥ Which of the following is an approach advocated while teaching
ethics? Answer: Teachers should challenge students to think for
themselves.
⩥ Philosophers often state that ethics is ________, which means that it
focuses on people's reasoning about how they should act. Answer:
normative
⩥ Social sciences such as psychology and sociology are different from
ethics owing to the fact that they are ________. Answer: descriptive in
nature
,⩥ Individual codes of conduct based on one's value structures regarding
how one should live, how one should act, what one should do, and what
kind of a person should one be is sometimes referred to as ________.
Answer: morality
⩥ Ethics refers to the applications of ________ on which people's
decisions are based. Answer: morals
⩥ The aspect of business ethics that examines business institutions from
a social rather than an individual perspective is referred to as: Answer:
decision making for social responsibility.
⩥ Which of the following is a true statement about norms? Answer:
They are standards of appropriate and proper behavior.
⩥ Which of the following is true about values? Answer: Values are
underlying beliefs that cause us to act or to decide in a certain way.
⩥ Dramatic examples of tyrannical regimes in history demonstrate that:
Answer: one's ethical responsibility may run counter to the law.
⩥ Which of the following is the pursuit of the highest standard for what
we should believe? Answer: Theoretical reason
, ⩥ The first step in making decisions that are ethically responsible is to
consider all of the people affected by a decision, the people often called
stakeholders. Answer: False
⩥ Missing a highway turn-off as a result of speaking on a cell phone
while driving is an example of ________. Answer: inattentional
blindness
⩥ In the ethical decision-making process, once one examines the facts
and identifies the ethical issues involved, one should next ________.
Answer: identify the stakeholders
⩥ Ethical decisions cannot be made on economic grounds. Answer:
False
⩥ Inattentional blindness is the inability to recognize ethical issues.
Answer: False
⩥ Normative myopia occurs only in business. Answer: False
⩥ A critical element of comparing and weighing the alternatives is the
consideration of ways to mitigate, minimize, or compensate for any
possible harmful consequences. Answer: True
