Business Ethics 2016 - QUIZ &
ANSWERS (2) - Ethics and Social
Responsibility of Business ,
WWW.TOP20MBA.COM / 06 DECEMBER 2016
BUSINESS ETHICS 2016
Case study guides and test bank and answer keys (2016)
The Legal Environment of Business and Online Commerce, 8e (Cheeseman)
The Legal Environment of Business and Online Commerce, 8e (Cheeseman)
Chapter 2 Ethics and Social Responsibility of Business
1) ________ is a set of moral principles or values that governs the conduct of an individual or a
group.
1. A) Rationality
2. B) Evolution
3. C) Ethics
4. D) Reason
Answer: C
Diff: 1
Skill: Legal Concepts
LO: 2.1 Describe how law and ethics intertwine.
AACSB: Analytical thinking
Classi cation: Concept
2) Which of the following cases is an example of agreement of ethics and laws?
1. A) a company outsourcing its work to a foreign country to take advantage of cheap labor
2. B) a person being penalized for bribing a judge to rule a case in the person's favor
3. C) a company not spending more to keep its emission rates below the legal standard
4. D) a person hiring an illegal alien worker whose family is destitute
Answer: B
Diff: 2
Skill: Legal Concepts
LO: 2.1 Describe how law and ethics intertwine.
AACSB: Analytical thinking
Classi cation: Concept
3) All laws are framed to meet the highest ethical standards.
,Answer: FALSE
Diff: 1
Skill: Legal Concepts
LO: 2.1 Describe how law and ethics intertwine.
AACSB: Analytical thinking
Classi cation: Concept
4) An ethically wrong state or condition can still be legal.
Answer: TRUE
Diff: 1
Skill: Legal Concepts
LO: 2.1 Describe how law and ethics intertwine.
AACSB: Analytical thinking
Classi cation: Concept
5) The False Claims Act permits private parties to sue the government on behalf of a corporation.
Answer: FALSE
Diff: 1
Skill: Legal Concepts
LO: 2.1 Describe how law and ethics intertwine.
AACSB: Analytical thinking
Classi cation: Concept
6) Under the False Claims Act, a whistleblower can be awarded up to 25 percent of the amount
recovered on behalf of the federal government, even if the informer has been a co-conspirator in
perpetrating the fraud.
Answer: TRUE
Diff: 1
Skill: Legal Concepts
LO: 2.1 Describe how law and ethics intertwine.
AACSB: Analytical thinking
Classi cation: Concept
7) Give an account of the relationship between ethics and law.
Answer: Ethics and the law are intertwined. Although much of the law is based on ethical
standards, not all ethical standards have been enacted as law. The law establishes a minimum
degree of conduct expected by persons and businesses in society. Ethics demands more.
Sometimes the rule of law and the rule of ethics demand the same response by a person
confronted with a problem. In some situations, the law may permit an act that is ethically wrong.
In some others, the law demands certain conduct, but a person's ethical standards are contrary.
Diff: 1
Skill: Legal Concepts
LO: 2.1 Describe how law and ethics intertwine.
, AACSB: Analytical thinking
Classi cation: Concept
8) ________ is an ethical theory according to which a person adheres to rules or commands that
are from an outside source, such as a book or a central gure.
1. A) Ethical fundamentalism
2. B) Utilitarianism
3. C) Ethical relativism theory
4. D) Rawls's social justice theory
Answer: A
Diff: 1
Skill: Legal Concepts
LO: 2.2 Describe the moral theories of business ethics.
AACSB: Analytical thinking
Classi cation: Concept
9) The ________ Act is a federal statute that permits private parties to sue companies for fraud on
behalf of the government.
1. A) Business Norms
2. B) Sarbanes-Oxley
3. C) Glass-Steagall
4. D) False Claims
Answer: D
Diff: 1
Skill: Legal Concepts
LO: 2.2 Describe the moral theories of business ethics.
AACSB: Analytical thinking
Classi cation: Concept
10) Jules Renton, a nancial accountant at Valkyrie Aviation, deals with Valkyrie's accounts with
the government. Valkyrie has a contract with the government to deliver a bomber plane called
Spearhead. When reviewing the Spearhead account, Renton noticed that Valkyrie has been falsely
charging the government for Spearhead's production. If Renton chooses to be a whistleblower
and expose the scam to the government, which Congress-enacted statute must he invoke?
1. A) Business Norms Act
2. B) Sarbanes-Oxley Act
3. C) Glass-Steagall Act
4. D) False Claims Act
Answer: B
Diff: 2
Skill: Factual Application
LO: 2.2 Describe the moral theories of business ethics.
AACSB: Application of knowledge
Classi cation: Application
ANSWERS (2) - Ethics and Social
Responsibility of Business ,
WWW.TOP20MBA.COM / 06 DECEMBER 2016
BUSINESS ETHICS 2016
Case study guides and test bank and answer keys (2016)
The Legal Environment of Business and Online Commerce, 8e (Cheeseman)
The Legal Environment of Business and Online Commerce, 8e (Cheeseman)
Chapter 2 Ethics and Social Responsibility of Business
1) ________ is a set of moral principles or values that governs the conduct of an individual or a
group.
1. A) Rationality
2. B) Evolution
3. C) Ethics
4. D) Reason
Answer: C
Diff: 1
Skill: Legal Concepts
LO: 2.1 Describe how law and ethics intertwine.
AACSB: Analytical thinking
Classi cation: Concept
2) Which of the following cases is an example of agreement of ethics and laws?
1. A) a company outsourcing its work to a foreign country to take advantage of cheap labor
2. B) a person being penalized for bribing a judge to rule a case in the person's favor
3. C) a company not spending more to keep its emission rates below the legal standard
4. D) a person hiring an illegal alien worker whose family is destitute
Answer: B
Diff: 2
Skill: Legal Concepts
LO: 2.1 Describe how law and ethics intertwine.
AACSB: Analytical thinking
Classi cation: Concept
3) All laws are framed to meet the highest ethical standards.
,Answer: FALSE
Diff: 1
Skill: Legal Concepts
LO: 2.1 Describe how law and ethics intertwine.
AACSB: Analytical thinking
Classi cation: Concept
4) An ethically wrong state or condition can still be legal.
Answer: TRUE
Diff: 1
Skill: Legal Concepts
LO: 2.1 Describe how law and ethics intertwine.
AACSB: Analytical thinking
Classi cation: Concept
5) The False Claims Act permits private parties to sue the government on behalf of a corporation.
Answer: FALSE
Diff: 1
Skill: Legal Concepts
LO: 2.1 Describe how law and ethics intertwine.
AACSB: Analytical thinking
Classi cation: Concept
6) Under the False Claims Act, a whistleblower can be awarded up to 25 percent of the amount
recovered on behalf of the federal government, even if the informer has been a co-conspirator in
perpetrating the fraud.
Answer: TRUE
Diff: 1
Skill: Legal Concepts
LO: 2.1 Describe how law and ethics intertwine.
AACSB: Analytical thinking
Classi cation: Concept
7) Give an account of the relationship between ethics and law.
Answer: Ethics and the law are intertwined. Although much of the law is based on ethical
standards, not all ethical standards have been enacted as law. The law establishes a minimum
degree of conduct expected by persons and businesses in society. Ethics demands more.
Sometimes the rule of law and the rule of ethics demand the same response by a person
confronted with a problem. In some situations, the law may permit an act that is ethically wrong.
In some others, the law demands certain conduct, but a person's ethical standards are contrary.
Diff: 1
Skill: Legal Concepts
LO: 2.1 Describe how law and ethics intertwine.
, AACSB: Analytical thinking
Classi cation: Concept
8) ________ is an ethical theory according to which a person adheres to rules or commands that
are from an outside source, such as a book or a central gure.
1. A) Ethical fundamentalism
2. B) Utilitarianism
3. C) Ethical relativism theory
4. D) Rawls's social justice theory
Answer: A
Diff: 1
Skill: Legal Concepts
LO: 2.2 Describe the moral theories of business ethics.
AACSB: Analytical thinking
Classi cation: Concept
9) The ________ Act is a federal statute that permits private parties to sue companies for fraud on
behalf of the government.
1. A) Business Norms
2. B) Sarbanes-Oxley
3. C) Glass-Steagall
4. D) False Claims
Answer: D
Diff: 1
Skill: Legal Concepts
LO: 2.2 Describe the moral theories of business ethics.
AACSB: Analytical thinking
Classi cation: Concept
10) Jules Renton, a nancial accountant at Valkyrie Aviation, deals with Valkyrie's accounts with
the government. Valkyrie has a contract with the government to deliver a bomber plane called
Spearhead. When reviewing the Spearhead account, Renton noticed that Valkyrie has been falsely
charging the government for Spearhead's production. If Renton chooses to be a whistleblower
and expose the scam to the government, which Congress-enacted statute must he invoke?
1. A) Business Norms Act
2. B) Sarbanes-Oxley Act
3. C) Glass-Steagall Act
4. D) False Claims Act
Answer: B
Diff: 2
Skill: Factual Application
LO: 2.2 Describe the moral theories of business ethics.
AACSB: Application of knowledge
Classi cation: Application
