Conceptual Actual Emended Exam Questions
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1. An action may be legal but not ethical.
A) True
B) False
ANSWER True
2. Ethical codes of conduct can set the ethical tone of a firm.
A) True
B) False
ANSWER True
3. Simply obeying the law fulfills all ethical obligations.
A) True
B) False
ANSWER B) False
4. The minimal acceptable standard for ethical behavior is compliance with
the law.
A) True
B) False
ANSWER A
5. According to utilitarianism, an action that adversely affects the majority is
morally wrong.
, A) True
B) False
ANSWER A
6. Business ethics applies only to the owners, operators, and employees of
corporations.
A) True
B) False
ANSWER F
7. Acting in good faith gives a business firm a better chance of defending its
actions in court.
A) True
B) False
ANSWER T
8. Business ethics is consistent only with short-run profit maximization.
A) True
B) False
ANSWER F
9. Corporate ethical policies must be clearly communicated to be effective.
A) True
B) False
ANSWER T
10.Setting unrealistic workplace goals can increase the probability that
employees will act unethically.
A) True
B) False
ANSWER T
,11.Under the principle of rights theory, one person's set of values is as “right”
as another's.
A) True
B) False
ANSWER F
12.Ethics is the branch of philosophy that focuses on what constitutes right
and wrong behavior.
A) True
B) False ANSWER T
13.Bribery of foreign officials is an ethical issue but not a legal one.
A) True
B) False ANSWER F
14.The role played by women may present ethical problems for firms doing
business internationally.
A) True
B) False ANSWER T
15.Concurrent jurisdiction exists when both federal and state courts have the
power to hear a particular case.
A) True
B) False ANSWER T
16.Service of process is the process of notifying a defendant of a lawsuit.
A) True
B) False ANSWER T
17.Negotiation traditionally involves just the parties to a dispute without their
attorneys.
A) True
B) False ANSWER F
, 18.Mandatory arbitration clauses in employment contracts are always
unenforceable.
A) True
B) False ANSWER F
19.The doctrine of stare decisis requires courts to follow precedent in all cases,
even if the facts differ.
A) True
B) False ANSWER F
20.The legality of an action is always clear.
A) True
B) False ANSWER F
Part B — Multiple Choice (20 Questions)
21.The doctrine of stare decisis is most closely associated with:
A) Judicial review
B) Following precedent
C) Separation of powers
D) Commerce Clause
22.Which of the following is not a source of law in the United States?
A) The U.S. Constitution
B) Administrative regulations
C) Executive orders
D) Company policy manuals
23.In U.S. v. Morrison, the Supreme Court struck down part of the Violence
Against Women Act because:
A) It violated equal protection
B) It was beyond Congress’s commerce powers
C) It was preempted by state law
D) It lacked due process