Conceptual Actual Emended Exam Questions With
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1. The Blanchard & Peale test asks three core questions. Which of the following is
NOT one of them?
A) Is it legal?
B) Is it balanced?
C) Does it maximize profits?
D) How does it make me feel?
Answer: C
2. The Blanchard & Peale test is primarily designed to:
A) Resolve disputes in court
B) Provide a quick ethical decision-making framework for managers
C) Replace all statutory and regulatory compliance rules
D) Justify self-interest in decision making
Answer: B
3. When considering "Is it legal?" in the Blanchard & Peale test, a manager is
asking:
A) Whether it complies with both statutory and case law
B) If it aligns with the company's mission statement
C) Whether it feels fair to stakeholders
D) If it maximizes short-run shareholder wealth
Answer: A
4. The "Is it balanced?" question in the Blanchard & Peale test focuses on:
A) The fairness of the decision to all stakeholders
B) Whether the decision is equally beneficial to the manager and the board
C) Balancing profits with losses
,D) The legal precedent in previous similar cases
Answer: A
5. Which of the following business actions BEST illustrates the use of the
Blanchard & Peale test?
A) A CEO rejects a lucrative overseas contract due to poor labor standards
B) A CFO approves a tax loophole strategy to maximize shareholder returns
C) A company refuses to disclose known safety issues to regulators
D) An attorney advises a client to “say nothing” in a regulatory inquiry
Answer: A
6. The Blanchard & Peale test differs from strict compliance programs because it:
A) Focuses only on legal compliance
B) Includes an internal evaluation of fairness and feelings
C) Is a mandatory legal requirement under federal law
D) Was designed to apply only in criminal cases
Answer: B
7. A manager applies the Blanchard & Peale test and finds the action is legal but
feels uneasy about it. According to the test, the manager should:
A) Proceed, since legality is sufficient
B) Ignore feelings if shareholders approve
C) Rethink the decision before proceeding
D) Seek judicial approval for protection
Answer: C
8. Which type of ethical reasoning is the Blanchard & Peale test most closely
aligned with?
A) Outcome-based ethics
B) Duty-based ethics
C) Virtue ethics
D) Egoism
Answer: B
,9. "How does it make me feel?" encourages managers to consider:
A) Stakeholder analysis
B) Their personal conscience and integrity
C) Compliance with antitrust laws
D) The profit/loss statement impact
Answer: B
10. Critics of the Blanchard & Peale test argue that:
A) It is too complex for real-world application
B) It relies too heavily on subjective feelings
C) It ignores the principle of legality
D) It was never widely adopted in corporate settings
Answer: B
Kant’s Categorical Imperative (Deontology)
1. Kant’s Categorical Imperative primarily asks whether:
A) The decision maximizes utility for the majority
B) The action could become a universal law of conduct
C) The manager’s decision is consistent with profit-maximization
D) The outcome benefits the decision-maker
Answer: B
2. A company lying to customers about delivery times would fail Kant’s Categorical
Imperative because:
A) It does not maximize profits
B) If universalized, it would make truth-telling meaningless
C) The majority of customers benefit from quicker promises
D) Customers lack the capacity to question the claim
Answer: B
3. Which type of ethics is Kant most closely associated with?
A) Consequentialism
B) Virtue Ethics
, C) Duty-based ethics (Deontology)
D) Ethical Egoism
Answer: C
4. Under Kantian ethics, an action is ethical if:
A) It produces the greatest good for the greatest number
B) It could be universalized without contradiction
C) It improves stakeholder profits
D) It avoids punishment from regulators
Answer: B
5. A manager refusing to bribe a foreign official because it would undermine the
rule of law is applying:
A) Ethical Egoism
B) Utilitarianism
C) Kant’s Categorical Imperative
D) Contractarianism
Answer: C
6. Which of the following is a criticism of Kant’s Categorical Imperative?
A) It focuses too much on individual conscience
B) It ignores outcomes entirely
C) It allows subjective interpretation of universal laws
D) It is too closely tied to religious doctrine
Answer: B
7. According to Kant, using another person merely as a means to an end is:
A) Sometimes justified
B) Always unethical
C) Acceptable if it benefits the majority
D) A utilitarian calculation
Answer: B
8. The universalizability test asks:
A) Would this action be legal under state law?