Business Ethics - C717 questions and answers
Why Study Business Ethics? Correct Answer: to help you do ethics and be ethical
What are a company's core values? Correct Answer: Beliefs and principles that provide the ultimate
guide in its decision making
In What Year did Congress pass the Sarbanes-Oxley Act Correct Answer: 2002
What is the Sarbanes-Oxley Act Correct Answer: law to address the wave of corporate and accounting
scandals
Section 406 of the Sarbanes-Oxley Act Correct Answer: Code of Ethics for Senior Financial Officers,
requires corporations to have a code of ethics applicable to its principal financial officer and comptroller
or principal accounting officer, or persons performing similar functions
Code of Ethics (of the Sarbanes-Oxley Act) must include 3 standards: Correct Answer: 1. honest and
ethical conduct, including the ethical handling of actual or apparent conflicts of interest between
personal and professional relationships
2. full, fair, accurate, timely, and understandable closure in the periodic reports required to be filled by
the issuer; and
3. compliance with applicable governmental rules and regulations
Core Values Correct Answer: beliefs and principles that provide the ultimate guide in its decision making
Business Ethics Correct Answer: 1. refers to those values, standards, and principles that operate within
business
2. refers to an academic discipline that not only studies those standards, values, and principles, but also
seeks to articulate and defend those that ought to or should operate in business
The word ethics is derived from which greek word Correct Answer: ethos, meaning customary or
conventional
What is the difference between ethos and ethics Correct Answer: what IS valued and what OUGHT to be
valued
Philosophical Ethics Correct Answer: distinguishes what people DO value from what people SHOULD
value
morality Correct Answer: how each of us should live our lives
virtues Correct Answer: character traits
Why is studying ethics relevant to Business? Correct Answer: it is essential to living a responsible and
meaningful life
, What are the three components of the goal of Business Ethics? Correct Answer: 1. understanding
ethical issues
2. analyzing ethical issues
3. becoming sensitive to the importance of ethics
What are the challenges of living an ethical life Correct Answer: deciding how to act, who to be, and
how to live
Steps to making a responsible decision Correct Answer: 1. Knowing and understanding the facts
2. Identifying the ethical issues involved
3. Identifying all stakeholders (Identify the people that might be affected by the situation)
4. Understanding how those stakeholders will be affected(understand how they might be affected)
5. Employing Moral Imagination to understand alternatives (Consider alternative courses of action)
6. Consider how others will judge your decision (Step back and decide how the public will react)
7. Making a decision and monitoring and learning from the results
Social Ethics Correct Answer: questions of public policy, law, civic virtue, and political philosophy
Relativism Correct Answer: a theory that knowledge is relative to the limited nature of the mind and the
conditions of knowingb : a view that ethical truths depend on the individuals and groups holding them
Virtue ethics reminds one to look to the actual practices one finds in the business world and ask?
Correct Answer: what type of people are being created by these peactices
Principles, practices, obligations, deserved recompense, and duties are concepts that are the heart of
(which type of ethics)? Correct Answer: Principle based ethics
Identify the intellectual capacities for achieving the goals of business ethics Correct Answer: 1. a finely
tuned set of analytical skills to evaluate ethical issues
2. A better understanding of ethical issues
3. a refined sensitivity to appreciate the significance of leading an ethical life
True or False: A student will be fully prepared for a career in accounting, finance, or any area of business
even if he/she is unfamiliar with ethical issues of these fields Correct Answer: False
True or False: One of the reasons a business manager has to be concerned with the ethical standards of
his or her organization is that the law demands it Correct Answer: True
Identify the code that corresponds to Section 406 of the Sarbanes-Oxley Act Correct Answer: Code of
Ethics for Senior Financial Officers
In the context of contemporary business management. It is clear that a company that does not pay
attention to ethical standards can___________________
A.) reduce the risk of its employees going to jail
B.) lose in the marketplace and can go out of business
C.) survive any competition without much effort
Why Study Business Ethics? Correct Answer: to help you do ethics and be ethical
What are a company's core values? Correct Answer: Beliefs and principles that provide the ultimate
guide in its decision making
In What Year did Congress pass the Sarbanes-Oxley Act Correct Answer: 2002
What is the Sarbanes-Oxley Act Correct Answer: law to address the wave of corporate and accounting
scandals
Section 406 of the Sarbanes-Oxley Act Correct Answer: Code of Ethics for Senior Financial Officers,
requires corporations to have a code of ethics applicable to its principal financial officer and comptroller
or principal accounting officer, or persons performing similar functions
Code of Ethics (of the Sarbanes-Oxley Act) must include 3 standards: Correct Answer: 1. honest and
ethical conduct, including the ethical handling of actual or apparent conflicts of interest between
personal and professional relationships
2. full, fair, accurate, timely, and understandable closure in the periodic reports required to be filled by
the issuer; and
3. compliance with applicable governmental rules and regulations
Core Values Correct Answer: beliefs and principles that provide the ultimate guide in its decision making
Business Ethics Correct Answer: 1. refers to those values, standards, and principles that operate within
business
2. refers to an academic discipline that not only studies those standards, values, and principles, but also
seeks to articulate and defend those that ought to or should operate in business
The word ethics is derived from which greek word Correct Answer: ethos, meaning customary or
conventional
What is the difference between ethos and ethics Correct Answer: what IS valued and what OUGHT to be
valued
Philosophical Ethics Correct Answer: distinguishes what people DO value from what people SHOULD
value
morality Correct Answer: how each of us should live our lives
virtues Correct Answer: character traits
Why is studying ethics relevant to Business? Correct Answer: it is essential to living a responsible and
meaningful life
, What are the three components of the goal of Business Ethics? Correct Answer: 1. understanding
ethical issues
2. analyzing ethical issues
3. becoming sensitive to the importance of ethics
What are the challenges of living an ethical life Correct Answer: deciding how to act, who to be, and
how to live
Steps to making a responsible decision Correct Answer: 1. Knowing and understanding the facts
2. Identifying the ethical issues involved
3. Identifying all stakeholders (Identify the people that might be affected by the situation)
4. Understanding how those stakeholders will be affected(understand how they might be affected)
5. Employing Moral Imagination to understand alternatives (Consider alternative courses of action)
6. Consider how others will judge your decision (Step back and decide how the public will react)
7. Making a decision and monitoring and learning from the results
Social Ethics Correct Answer: questions of public policy, law, civic virtue, and political philosophy
Relativism Correct Answer: a theory that knowledge is relative to the limited nature of the mind and the
conditions of knowingb : a view that ethical truths depend on the individuals and groups holding them
Virtue ethics reminds one to look to the actual practices one finds in the business world and ask?
Correct Answer: what type of people are being created by these peactices
Principles, practices, obligations, deserved recompense, and duties are concepts that are the heart of
(which type of ethics)? Correct Answer: Principle based ethics
Identify the intellectual capacities for achieving the goals of business ethics Correct Answer: 1. a finely
tuned set of analytical skills to evaluate ethical issues
2. A better understanding of ethical issues
3. a refined sensitivity to appreciate the significance of leading an ethical life
True or False: A student will be fully prepared for a career in accounting, finance, or any area of business
even if he/she is unfamiliar with ethical issues of these fields Correct Answer: False
True or False: One of the reasons a business manager has to be concerned with the ethical standards of
his or her organization is that the law demands it Correct Answer: True
Identify the code that corresponds to Section 406 of the Sarbanes-Oxley Act Correct Answer: Code of
Ethics for Senior Financial Officers
In the context of contemporary business management. It is clear that a company that does not pay
attention to ethical standards can___________________
A.) reduce the risk of its employees going to jail
B.) lose in the marketplace and can go out of business
C.) survive any competition without much effort
