LES 305 Koretz > Verified Multiple Choice and
Conceptual Actual Emended Exam Questions With
Reviewed 100% Correct Detailed Answers
Guaranteed Pass!!Current Update!!
1. Compliance with the law meets all ethical standards.
A) True
B) False
Answer: B
2. The inherence school of social responsibility holds that:
A) Managers should only act in ways that maximize shareholder profits.
B) Companies must balance profits with duties to stakeholders.
C) Firms should serve the greater good of society.
D) Corporations must always defer to government regulators.
Answer: A
3. Which ethical theory best supports a U.S. corporation engaging in a corporate
inversion to avoid higher taxes?
A) Utilitarianism
B) Divine Command Theory
C) Ethical Egoism
D) Contractarianism
Answer: C
4. According to the stakeholder theory of corporate responsibility, a business
should:
,A) Focus solely on maximizing shareholder wealth.
B) Consider the impact of its decisions on all parties affected, including
employees, customers, and the community.
C) Follow only the minimum legal standards.
D) Adopt policies only if the government requires them.
Answer: B
5. “I was just following orders” is considered:
A) An acceptable legal defense in most ethical dilemmas.
B) A valid excuse for violating ethical standards.
C) Not a valid defense for unethical or illegal behavior.
D) A principle under the inherence school.
Answer: C
6. Which missing step correctly completes this ethical decision-making model?
i. Gather the facts
ii. List missing information and assumptions
iii. Generate alternatives and apply ethical frameworks
iv. Evaluate resolutions for cost, legality, and impact
v. Recommend and take action
A) Consider only profitability
B) List each stakeholder’s interests
C) Obtain a written legal opinion
D) Submit to a board of directors
Answer: B
7. Which of the following is an example of the self-serving bias?
A) A client exaggerates the fairness of their actions in a legal dispute.
B) A student forgets the details of an exam question.
C) A manager lowers prices to increase sales.
,D) An employee fears losing a bonus and works harder.
Answer: A
8. A person who believes they are “more ethical than others” and therefore
immune to conflicts of interest is demonstrating:
A) Self-serving bias
B) Overconfidence bias
C) Anchoring bias
D) Loss aversion
Answer: B
9. A consumer posts positive reviews online after receiving discounts from a
business. This situation most clearly raises concerns about:
A) Loss aversion
B) Conflict of interest
C) Procedural due process
D) Legal compliance only
Answer: B
10. When an employee avoids reporting a defect because they fear losing their
end-of-year bonus, they are most likely influenced by:
A) Overconfidence bias
B) Self-serving bias
C) Loss aversion
D) Stakeholder theory
Answer: C
11. The Enlightened Self-Interest school of corporate social responsibility argues
that:
, A) A company benefits shareholders most by also serving society’s long-term
interests.
B) Businesses should serve society even at the cost of shareholder profits.
C) Companies should only meet legal obligations.
D) Firms should maximize profit regardless of external impact.
Answer: A
12. According to the Blanchard and Peale Test, which of the following is not a
guiding question?
A) Is it legal?
B) Is it balanced?
C) How does it make me feel?
D) Will it maximize shareholder profits?
Answer: D
13. The bias that leads people to prefer avoiding losses rather than acquiring
equivalent gains is called:
A) Overconfidence bias
B) Self-serving bias
C) Loss aversion
D) Hindsight bias
Answer: C
14. Which of the following schools of thought requires managers to act only if
their actions are profitable and legal, without considering ethics beyond that?
A) Inherence school
B) Stakeholder theory
C) Social responsibility school
D) Utilitarianism
Answer: A
Conceptual Actual Emended Exam Questions With
Reviewed 100% Correct Detailed Answers
Guaranteed Pass!!Current Update!!
1. Compliance with the law meets all ethical standards.
A) True
B) False
Answer: B
2. The inherence school of social responsibility holds that:
A) Managers should only act in ways that maximize shareholder profits.
B) Companies must balance profits with duties to stakeholders.
C) Firms should serve the greater good of society.
D) Corporations must always defer to government regulators.
Answer: A
3. Which ethical theory best supports a U.S. corporation engaging in a corporate
inversion to avoid higher taxes?
A) Utilitarianism
B) Divine Command Theory
C) Ethical Egoism
D) Contractarianism
Answer: C
4. According to the stakeholder theory of corporate responsibility, a business
should:
,A) Focus solely on maximizing shareholder wealth.
B) Consider the impact of its decisions on all parties affected, including
employees, customers, and the community.
C) Follow only the minimum legal standards.
D) Adopt policies only if the government requires them.
Answer: B
5. “I was just following orders” is considered:
A) An acceptable legal defense in most ethical dilemmas.
B) A valid excuse for violating ethical standards.
C) Not a valid defense for unethical or illegal behavior.
D) A principle under the inherence school.
Answer: C
6. Which missing step correctly completes this ethical decision-making model?
i. Gather the facts
ii. List missing information and assumptions
iii. Generate alternatives and apply ethical frameworks
iv. Evaluate resolutions for cost, legality, and impact
v. Recommend and take action
A) Consider only profitability
B) List each stakeholder’s interests
C) Obtain a written legal opinion
D) Submit to a board of directors
Answer: B
7. Which of the following is an example of the self-serving bias?
A) A client exaggerates the fairness of their actions in a legal dispute.
B) A student forgets the details of an exam question.
C) A manager lowers prices to increase sales.
,D) An employee fears losing a bonus and works harder.
Answer: A
8. A person who believes they are “more ethical than others” and therefore
immune to conflicts of interest is demonstrating:
A) Self-serving bias
B) Overconfidence bias
C) Anchoring bias
D) Loss aversion
Answer: B
9. A consumer posts positive reviews online after receiving discounts from a
business. This situation most clearly raises concerns about:
A) Loss aversion
B) Conflict of interest
C) Procedural due process
D) Legal compliance only
Answer: B
10. When an employee avoids reporting a defect because they fear losing their
end-of-year bonus, they are most likely influenced by:
A) Overconfidence bias
B) Self-serving bias
C) Loss aversion
D) Stakeholder theory
Answer: C
11. The Enlightened Self-Interest school of corporate social responsibility argues
that:
, A) A company benefits shareholders most by also serving society’s long-term
interests.
B) Businesses should serve society even at the cost of shareholder profits.
C) Companies should only meet legal obligations.
D) Firms should maximize profit regardless of external impact.
Answer: A
12. According to the Blanchard and Peale Test, which of the following is not a
guiding question?
A) Is it legal?
B) Is it balanced?
C) How does it make me feel?
D) Will it maximize shareholder profits?
Answer: D
13. The bias that leads people to prefer avoiding losses rather than acquiring
equivalent gains is called:
A) Overconfidence bias
B) Self-serving bias
C) Loss aversion
D) Hindsight bias
Answer: C
14. Which of the following schools of thought requires managers to act only if
their actions are profitable and legal, without considering ethics beyond that?
A) Inherence school
B) Stakeholder theory
C) Social responsibility school
D) Utilitarianism
Answer: A
