Chapter 1—Business Ethics in a Global Economy
MULTIPLE CHOICE
1. Principles are
a. laws and regulations that guide behavior in the world of business.
b. mores, values, and customs that guide behavior in general.
c. specific and pervasive boundaries for behavior that are universal and absolute.
d. the obligations businesses assume to maximize their positive impact and minimize their
negative impact on stakeholders.
e. the mores, values, and customs that parents teach their children.
ANS: C PTS: 1
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.
e. charitable contributions made by a business to enhance its image.
ANS: A PTS: 1
3. The _____ was/were enacted to restore confidence in financial reporting and business ethics after
the accounting scandals of the early 2000s.
a. Defense Industry Initiative on Business Ethics and Conduct
b. Sarbanes-Oxley Act
c. Federal Sentencing Guidelines for Organizations
d. Foreign Corrupt Practices Act
e. Dodd-Frank Wall Street Reform and Consumer Protection Act
ANS: B PTS: 1
4. The term business ethics is best described by the following statement:
a. It is the study and philosophy of human conduct, with an emphasis on determining right and
wrong.
b. It is an "inquiry into the nature and grounds of morality where the term morality is taken to
mean moral judgments, standards and rules of conduct."
c. It is the "study of the general nature of morals and of specific moral choices; moral philosophy;
and the rules or standards governing the conduct of the members of a profession."
d. It is an organization's obligation to maximize its positive effects and minimize its negative
effects on stakeholders.
e. It comprises the principles, values, and standards that guide behavior in the world of business.
ANS: E PTS: 1
, 5. 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
ANS: D PTS: 1
6. During the 1990s the institutionalization of business ethics was largely driven by which piece of
legislation?
a. Sarbanes-Oxley Act
b. Federal Sentencing Guidelines for Organizations
c. Dodd-Frank Wall Street Reform and Consumer Protection Act
d. Foreign Corrupt Practices Act
e. Global Sullivan Principles
ANS: B PTS: 1
7. Business ethics, as a field, has passed through which of the following states?
a. A field of study to theological discussion to recognition of social issues
b. Recognition of social issues to a field of study to theological discussion
c. A field of study to recognition of social issues to theological discussion
d. Recognition of social issues to theological discussion to a field of study
e. Theological discussion to recognition of social issues to a field of study
ANS: E PTS: 1
8. The 1960s saw a rise of consumerism. What is consumerism?
a. An increase in consumer rights by organizations and governments
b. The growth of international retail chain stores
c. Activities undertaken by independent individuals, and groups to protect their rights as
consumers
d. The widespread adoption of consumer oriented marketing strategies among businesses
e. Organizations’ tendency to seek ways to take advantage of consumers
ANS: C PTS: 1
9. Ethics is a part of decision making
a. at all levels of work and management.
b. primarily at the upper management levels of an organization.
c. mostly for policy makers.
d. that is less important than other decision making processes.
e. only at that lower levels of organizational management.
ANS: A PTS: 1
10. Which of the following was developed in the 1980s to guide corporate support for ethical conduct
by establishing a method for discussing best practices?
a. Federal Sentencing Guidelines for Organizations
b. Defense Industry Initiative on Business Ethics and Conduct
c. Corporate codes of conduct
, d. United States Sentencing Commission
e. MERCOSUR
ANS: B PTS: 1
11. The _____ focus(es) on firms taking action to prevent and detect business misconduct in
cooperation with government regulation.
a. United States Sentencing Commission
b. Defense Industry Initiative on Business Ethics and Conduct
c. World Trade Organization
d. United Nations Global Compact
e. Federal Sentencing Guidelines for Organizations
ANS: E PTS: 1
12. 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 experience 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 entirely an extension of an individual's own personal ethics.
e. how to identify ethical issues arising in the business world.
ANS: D PTS: 1
13. According to the rule of ethical culture in performance, all of these are drivers of profit except
a. ethical culture.
b. investor loyalty.
c. employee commitment.
d. customer satisfaction.
e. opportunity for misconduct.
ANS: E PTS: 1
14. More than a compliance program, business ethics is becoming
a. a management issue to achieve competitive advantage.
b. less accepted by society.
c. mainly a government regulatory issue.
d. an initiative led by nonprofit organizations.
e. a program that decreases profits but increases societal benefits.
ANS: A PTS: 1
15. Having acceptable personal ethics is probably not going to be sufficient to handle complex
business ethical issues when an individual has
a. family concerns.
b. an unethical boss.
c. limited business experience.
d. financial training.
e. a marketing background.
ANS: C PTS: 1
, 16. One of the major ethical issues President Obama’s administration focused on was
a. decreasing environmental legislation.
b. deregulation.
c. tax decreases.
d. incentives to oil companies.
e. health care and consumer protection.
ANS: E PTS: 1
17. Which of the following is generally not considered a business ethics issue?
a. Insider trading
b. Accounting fraud
c. Deceptive advertising
d. Misuse of organizational resources
e. Type of government
ANS: E PTS: 1
18. Which represented a far-reaching change to organizational control and accounting systems,
making securities fraud a criminal offense?
a. Council on Economic Priorities and Social Accountability 8000.
b. Sarbanes-Oxley Act.
c. Consumer Protection Act.
d. Defense Industry Initiative on Business Ethics and Conduct.
e. Dodd-Frank Wall Street Reform and Consumer Protection Act.
ANS: B PTS: 1
19. The Foreign Corrupt Practices Act outlawed
a. accounting fraud.
b. price collusion.
c. corruption in government.
d. bribery of officials in other countries.
e. executive misconduct.
ANS: D PTS: 1
MULTIPLE CHOICE
1. Principles are
a. laws and regulations that guide behavior in the world of business.
b. mores, values, and customs that guide behavior in general.
c. specific and pervasive boundaries for behavior that are universal and absolute.
d. the obligations businesses assume to maximize their positive impact and minimize their
negative impact on stakeholders.
e. the mores, values, and customs that parents teach their children.
ANS: C PTS: 1
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.
e. charitable contributions made by a business to enhance its image.
ANS: A PTS: 1
3. The _____ was/were enacted to restore confidence in financial reporting and business ethics after
the accounting scandals of the early 2000s.
a. Defense Industry Initiative on Business Ethics and Conduct
b. Sarbanes-Oxley Act
c. Federal Sentencing Guidelines for Organizations
d. Foreign Corrupt Practices Act
e. Dodd-Frank Wall Street Reform and Consumer Protection Act
ANS: B PTS: 1
4. The term business ethics is best described by the following statement:
a. It is the study and philosophy of human conduct, with an emphasis on determining right and
wrong.
b. It is an "inquiry into the nature and grounds of morality where the term morality is taken to
mean moral judgments, standards and rules of conduct."
c. It is the "study of the general nature of morals and of specific moral choices; moral philosophy;
and the rules or standards governing the conduct of the members of a profession."
d. It is an organization's obligation to maximize its positive effects and minimize its negative
effects on stakeholders.
e. It comprises the principles, values, and standards that guide behavior in the world of business.
ANS: E PTS: 1
, 5. 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
ANS: D PTS: 1
6. During the 1990s the institutionalization of business ethics was largely driven by which piece of
legislation?
a. Sarbanes-Oxley Act
b. Federal Sentencing Guidelines for Organizations
c. Dodd-Frank Wall Street Reform and Consumer Protection Act
d. Foreign Corrupt Practices Act
e. Global Sullivan Principles
ANS: B PTS: 1
7. Business ethics, as a field, has passed through which of the following states?
a. A field of study to theological discussion to recognition of social issues
b. Recognition of social issues to a field of study to theological discussion
c. A field of study to recognition of social issues to theological discussion
d. Recognition of social issues to theological discussion to a field of study
e. Theological discussion to recognition of social issues to a field of study
ANS: E PTS: 1
8. The 1960s saw a rise of consumerism. What is consumerism?
a. An increase in consumer rights by organizations and governments
b. The growth of international retail chain stores
c. Activities undertaken by independent individuals, and groups to protect their rights as
consumers
d. The widespread adoption of consumer oriented marketing strategies among businesses
e. Organizations’ tendency to seek ways to take advantage of consumers
ANS: C PTS: 1
9. Ethics is a part of decision making
a. at all levels of work and management.
b. primarily at the upper management levels of an organization.
c. mostly for policy makers.
d. that is less important than other decision making processes.
e. only at that lower levels of organizational management.
ANS: A PTS: 1
10. Which of the following was developed in the 1980s to guide corporate support for ethical conduct
by establishing a method for discussing best practices?
a. Federal Sentencing Guidelines for Organizations
b. Defense Industry Initiative on Business Ethics and Conduct
c. Corporate codes of conduct
, d. United States Sentencing Commission
e. MERCOSUR
ANS: B PTS: 1
11. The _____ focus(es) on firms taking action to prevent and detect business misconduct in
cooperation with government regulation.
a. United States Sentencing Commission
b. Defense Industry Initiative on Business Ethics and Conduct
c. World Trade Organization
d. United Nations Global Compact
e. Federal Sentencing Guidelines for Organizations
ANS: E PTS: 1
12. 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 experience 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 entirely an extension of an individual's own personal ethics.
e. how to identify ethical issues arising in the business world.
ANS: D PTS: 1
13. According to the rule of ethical culture in performance, all of these are drivers of profit except
a. ethical culture.
b. investor loyalty.
c. employee commitment.
d. customer satisfaction.
e. opportunity for misconduct.
ANS: E PTS: 1
14. More than a compliance program, business ethics is becoming
a. a management issue to achieve competitive advantage.
b. less accepted by society.
c. mainly a government regulatory issue.
d. an initiative led by nonprofit organizations.
e. a program that decreases profits but increases societal benefits.
ANS: A PTS: 1
15. Having acceptable personal ethics is probably not going to be sufficient to handle complex
business ethical issues when an individual has
a. family concerns.
b. an unethical boss.
c. limited business experience.
d. financial training.
e. a marketing background.
ANS: C PTS: 1
, 16. One of the major ethical issues President Obama’s administration focused on was
a. decreasing environmental legislation.
b. deregulation.
c. tax decreases.
d. incentives to oil companies.
e. health care and consumer protection.
ANS: E PTS: 1
17. Which of the following is generally not considered a business ethics issue?
a. Insider trading
b. Accounting fraud
c. Deceptive advertising
d. Misuse of organizational resources
e. Type of government
ANS: E PTS: 1
18. Which represented a far-reaching change to organizational control and accounting systems,
making securities fraud a criminal offense?
a. Council on Economic Priorities and Social Accountability 8000.
b. Sarbanes-Oxley Act.
c. Consumer Protection Act.
d. Defense Industry Initiative on Business Ethics and Conduct.
e. Dodd-Frank Wall Street Reform and Consumer Protection Act.
ANS: B PTS: 1
19. The Foreign Corrupt Practices Act outlawed
a. accounting fraud.
b. price collusion.
c. corruption in government.
d. bribery of officials in other countries.
e. executive misconduct.
ANS: D PTS: 1
