Test Bank for Business and
Professional Ethics, 9th Edition
Business Responsibilities - ANSWERSA shift has occurred in what society believes business
responsibilities should be; today there is a greater emphasis on the bottom line than ever before.
Survival of Corporations - ANSWERSResponses to social and environmental issues will determine
which corporations are able to survive in today's competitive environment.
Integrity - ANSWERSIntegrity refers to the appropriateness of a corporation's behaviour, not to its
adherence to moral principles.
Ethics in Business - ANSWERSEthics apply to business in the same manner as they apply to religion.
Responsible Corporation - ANSWERSA responsible corporation is a business undertaking that
responds to social, ethical, and environmental responsibilities in addition to its economic obligations.
Universal Ethics - ANSWERSMost people agree there is a universal way to approach ethics and as
such, there is widespread agreement as to the appropriate behaviour by business in society.
Economic System - ANSWERSAn economic system defines the political party most active in any
country.
Responsible Enterprise System - ANSWERSThe responsible enterprise system acknowledges that
business has a responsibility beyond profit maximization for shareholders.
Adam Smith's Capitalism - ANSWERSAdam Smith argued for a system of capitalism that would see an
enhanced role for government.
Non-Profit Sector - ANSWERSThe non-profit sector is alternately known as the third sector or the
plural sector.
Laissez-Faire System - ANSWERSThe economic system in Canada is a laissez-faire system.
,Legal Requirements for Business - ANSWERSThere are very few legal requirements for an individual
establishing or operating a business in Canada.
Partnership - ANSWERSA partnership may involve two or more than two individuals sharing the
ownership of a business.
Concession Doctrine - ANSWERSThe concession doctrine implies that incorporation is a right, not a
privilege for businesses.
Freedom of Association - ANSWERSThe 'freedom of association' doctrine implies that incorporation
should occur without government intervention.
Legislative Safeguards - ANSWERSLegislative safeguards are imposed upon incorporation processes
to create and preserve an atmosphere of public confidence, as well as to create protections for
investors and creditors.
Social Licence - ANSWERSA social licence guarantees the absence of government regulation in an
open market.
Attitude Towards Business - ANSWERSCanadians' overall attitude towards business has been
basically positive over the last ten years.
Self-Interest in Business - ANSWERSSelf-interest by firms is an issue that the Canadian public
consistently identifies as a negative attribute of the business enterprise system.
Motivator of Self-Interest - ANSWERSSelf-interest acts as a motivator in the business enterprise
system and provides the drive for profit that encourages individuals to get things done.
Capitalistic Market - ANSWERSA system based on a capitalistic market virtually guarantees an
equitable distribution of income.
Social Media - ANSWERSSocial media describes the various forms of interaction or communication
enabled by technology-based tools, most of which are Internet based.
social licence - ANSWERSA concept based on ethics, values, expectations, and self-regulation,
considered preferable to social or governmental control.
,economic system - ANSWERSThe arrangement where government and business work collaboratively
with multiple stakeholders to use resources to meet societal needs.
capitalism - ANSWERSAn economic model where economic decision making is left to individuals or
enterprises who own the means of production.
free enterprise - ANSWERSAn economic system that emphasizes minimal government intervention
in the economy.
laissez-faire capitalism - ANSWERSA model where economic decision making is left to individuals or
enterprises, with minimal government involvement.
responsible enterprise - ANSWERSA business model that incorporates ethical considerations and
social responsibilities into its operations.
stakeholder capitalism - ANSWERSAn economic system where businesses consider the interests of
all stakeholders in their decision-making processes.
price fixing - ANSWERSAn illegal practice where businesses agree on prices to control the market,
often signaling monopolistic behavior.
supplier discrimination - ANSWERSA practice where a business unfairly favors one supplier over
others, which can indicate monopolistic behavior.
proprietorship - ANSWERSA business structure where an individual assumes all the risks and rewards
of business ownership.
partnership - ANSWERSA business structure where two or more individuals share ownership and
responsibilities.
corporation - ANSWERSA legal entity that is separate from its owners, providing limited liability to its
shareholders.
, incorporation - ANSWERSThe process of legally forming a corporation, which involves meeting
governmental requirements.
limited liability - ANSWERSA legal structure that protects owners from being personally liable for the
debts of the business.
concession doctrine - ANSWERSA principle that allowed state control over the granting of
incorporation.
freedom of association doctrine - ANSWERSA legal principle that supports the right of individuals to
form associations.
profit maximization doctrine - ANSWERSA principle that suggests businesses should operate to
maximize their profits.
direct owner - ANSWERSAn individual who holds ownership rights directly in a company.
indirect owner - ANSWERSAn individual who has ownership rights in a company through another
entity, such as a pension fund.
silent shareholder - ANSWERSA shareholder who does not participate in the management of the
company.
preferred shareholder - ANSWERSA shareholder who has preferential rights to dividends over
common shareholders.
privileged shareholder - ANSWERSA shareholder who has special rights or privileges not afforded to
other shareholders.
Direct owner - ANSWERSAn individual who has legal ownership of a business.
Indirect owner - ANSWERSAn individual who has ownership through another entity or person.
Professional Ethics, 9th Edition
Business Responsibilities - ANSWERSA shift has occurred in what society believes business
responsibilities should be; today there is a greater emphasis on the bottom line than ever before.
Survival of Corporations - ANSWERSResponses to social and environmental issues will determine
which corporations are able to survive in today's competitive environment.
Integrity - ANSWERSIntegrity refers to the appropriateness of a corporation's behaviour, not to its
adherence to moral principles.
Ethics in Business - ANSWERSEthics apply to business in the same manner as they apply to religion.
Responsible Corporation - ANSWERSA responsible corporation is a business undertaking that
responds to social, ethical, and environmental responsibilities in addition to its economic obligations.
Universal Ethics - ANSWERSMost people agree there is a universal way to approach ethics and as
such, there is widespread agreement as to the appropriate behaviour by business in society.
Economic System - ANSWERSAn economic system defines the political party most active in any
country.
Responsible Enterprise System - ANSWERSThe responsible enterprise system acknowledges that
business has a responsibility beyond profit maximization for shareholders.
Adam Smith's Capitalism - ANSWERSAdam Smith argued for a system of capitalism that would see an
enhanced role for government.
Non-Profit Sector - ANSWERSThe non-profit sector is alternately known as the third sector or the
plural sector.
Laissez-Faire System - ANSWERSThe economic system in Canada is a laissez-faire system.
,Legal Requirements for Business - ANSWERSThere are very few legal requirements for an individual
establishing or operating a business in Canada.
Partnership - ANSWERSA partnership may involve two or more than two individuals sharing the
ownership of a business.
Concession Doctrine - ANSWERSThe concession doctrine implies that incorporation is a right, not a
privilege for businesses.
Freedom of Association - ANSWERSThe 'freedom of association' doctrine implies that incorporation
should occur without government intervention.
Legislative Safeguards - ANSWERSLegislative safeguards are imposed upon incorporation processes
to create and preserve an atmosphere of public confidence, as well as to create protections for
investors and creditors.
Social Licence - ANSWERSA social licence guarantees the absence of government regulation in an
open market.
Attitude Towards Business - ANSWERSCanadians' overall attitude towards business has been
basically positive over the last ten years.
Self-Interest in Business - ANSWERSSelf-interest by firms is an issue that the Canadian public
consistently identifies as a negative attribute of the business enterprise system.
Motivator of Self-Interest - ANSWERSSelf-interest acts as a motivator in the business enterprise
system and provides the drive for profit that encourages individuals to get things done.
Capitalistic Market - ANSWERSA system based on a capitalistic market virtually guarantees an
equitable distribution of income.
Social Media - ANSWERSSocial media describes the various forms of interaction or communication
enabled by technology-based tools, most of which are Internet based.
social licence - ANSWERSA concept based on ethics, values, expectations, and self-regulation,
considered preferable to social or governmental control.
,economic system - ANSWERSThe arrangement where government and business work collaboratively
with multiple stakeholders to use resources to meet societal needs.
capitalism - ANSWERSAn economic model where economic decision making is left to individuals or
enterprises who own the means of production.
free enterprise - ANSWERSAn economic system that emphasizes minimal government intervention
in the economy.
laissez-faire capitalism - ANSWERSA model where economic decision making is left to individuals or
enterprises, with minimal government involvement.
responsible enterprise - ANSWERSA business model that incorporates ethical considerations and
social responsibilities into its operations.
stakeholder capitalism - ANSWERSAn economic system where businesses consider the interests of
all stakeholders in their decision-making processes.
price fixing - ANSWERSAn illegal practice where businesses agree on prices to control the market,
often signaling monopolistic behavior.
supplier discrimination - ANSWERSA practice where a business unfairly favors one supplier over
others, which can indicate monopolistic behavior.
proprietorship - ANSWERSA business structure where an individual assumes all the risks and rewards
of business ownership.
partnership - ANSWERSA business structure where two or more individuals share ownership and
responsibilities.
corporation - ANSWERSA legal entity that is separate from its owners, providing limited liability to its
shareholders.
, incorporation - ANSWERSThe process of legally forming a corporation, which involves meeting
governmental requirements.
limited liability - ANSWERSA legal structure that protects owners from being personally liable for the
debts of the business.
concession doctrine - ANSWERSA principle that allowed state control over the granting of
incorporation.
freedom of association doctrine - ANSWERSA legal principle that supports the right of individuals to
form associations.
profit maximization doctrine - ANSWERSA principle that suggests businesses should operate to
maximize their profits.
direct owner - ANSWERSAn individual who holds ownership rights directly in a company.
indirect owner - ANSWERSAn individual who has ownership rights in a company through another
entity, such as a pension fund.
silent shareholder - ANSWERSA shareholder who does not participate in the management of the
company.
preferred shareholder - ANSWERSA shareholder who has preferential rights to dividends over
common shareholders.
privileged shareholder - ANSWERSA shareholder who has special rights or privileges not afforded to
other shareholders.
Direct owner - ANSWERSAn individual who has legal ownership of a business.
Indirect owner - ANSWERSAn individual who has ownership through another entity or person.
