Test Bank For
Business Ethics Ethical Decision Making and Cases 14th Edition by O. C. Ferrell, John Fraedrich,
Linda Ferrell Copyright 2026
Chapter 1-12
Chapter 01: The Importance of Business Ethics
1. Morals are enduring beliefs and ideals that are socially enforced.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1-1 Business Ethics Defined
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: LO1.1 - Illustrate what is meant by saying that human behavior is shaped by social
structure.
NATIONAL STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical Responsibilities
KEYWORDS: Bloom's: Remember
DATE CREATED: 3/3/2025 2:08 AM
DATE MODIFIED: 3/7/2025 1:06 AM
2. Every organization has the potential for unethical behavior.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1-2 Why Study Business Ethics?
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: LO1.2 - Question individualistic explanations of human behavior.
NATIONAL STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical Responsibilities
KEYWORDS: Bloom's: Remember
DATE CREATED: 3/3/2025 2:09 AM
DATE MODIFIED: 3/7/2025 1:06 AM
3. Until 1960, ethical issues related to business were often discussed in the domain of theology or philosophy.
a. True
b. False
ANSWER: True
POINTS: 1
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,DIFFICULTY: Easy
REFERENCES: 1-3 The Development of Business Ethics
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: LO1.3 - Describe the significance of studying diversity in contemporary society.
NATIONAL STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical Responsibilities
KEYWORDS: Bloom's: Remember
DATE CREATED: 3/3/2025 2:10 AM
DATE MODIFIED: 3/7/2025 1:06 AM
4. ISO 37301 is a set of 10 principles concerning human rights, labor, the environment, and anti-corruption.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1-4 Developing Organizational and Global Ethical Cultures
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: LO1.4 - Explain the origins of sociological thought.
NATIONAL STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical Responsibilities
KEYWORDS: Bloom's: Remember
DATE CREATED: 3/3/2025 2:10 AM
DATE MODIFIED: 3/7/2025 1:06 AM
5. The primary reason businesses adopt ethical practices is to improve financial performance, rather than as a reflection of
their responsibility as members of society.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1-5 The Benefits of Business Ethics
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: LO1.5 - Compare and contrast the major frameworks of sociological theory.
NATIONAL STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical Responsibilities
KEYWORDS: Bloom's: Remember
DATE CREATED: 3/3/2025 2:11 AM
DATE MODIFIED: 3/12/2025 7:16 AM
6. During the 1980s, the field of business ethics matured as a recognized discipline, influenced by both academic and
corporate developments. If you were a corporate leader in this era tasked with implementing ethical practices following
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,the Defense Industry Initiative (DII) principles, which action would align most effectively with these principles?
a. Conduct annual ethics training for employees and establish a safe mechanism for reporting unethical behavior
without fear of retribution.
b. Develop an internal policy to prioritize profit maximization, even at the expense of ethical considerations in
certain markets.
c. Limit ethics training to senior management while holding lower-level employees accountable for compliance
independently.
d. Focus exclusively on adhering to government-imposed regulations and ignore self-regulatory initiatives.
ANSWER: a
POINTS: 1
DIFFICULTY: Difficult
REFERENCES: 1-3 The Development of Business Ethics
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: LO1.3 - Describe the significance of studying diversity in contemporary society.
NATIONAL STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical Responsibilities
KEYWORDS: Bloom's: Apply
DATE CREATED: 3/3/2025 2:11 AM
DATE MODIFIED: 3/7/2025 1:06 AM
7. Ethically charged decisions:
a. are made at all levels of work and management.
b. are made primarily by top management.
c. stem from individual moral philosophies.
d. are less important than other decision-making processes.
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1-1 Business Ethics Defined
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: LO1.1 - Illustrate what is meant by saying that human behavior is shaped by social
structure.
NATIONAL STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical Responsibilities
KEYWORDS: Bloom's: Understand
DATE CREATED: 3/3/2025 2:12 AM
DATE MODIFIED: 3/7/2025 1:06 AM
8. Which of the following was developed in the 1980s to support organizations’ ethical programs?
a. Federal Sentencing Guidelines for Organizations
b. Defense Industry Initiative on Business Ethics and Conduct
c. Foreign Corrupt Practices Act
d. U.S. Sentencing Commission
ANSWER: b
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, POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1-3 The Development of Business Ethics
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: LO1.3 - Describe the significance of studying diversity in contemporary society.
NATIONAL STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical Responsibilities
KEYWORDS: Bloom's: Remember
DATE CREATED: 3/3/2025 2:13 AM
DATE MODIFIED: 3/7/2025 1:06 AM
9. Which of the following incentivizes firms to prevent and detect misconduct by offering rewards for compliance with
government regulations?
a. U.S. Sentencing Commission
b. Defense Industry Initiative on Business Ethics and Conduct
c. World Trade Organization
d. Federal Sentencing Guidelines for Organizations
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1-3 The Development of Business Ethics
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: LO1.3 - Describe the significance of studying diversity in contemporary society.
NATIONAL STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical Responsibilities
KEYWORDS: Bloom's: Remember
DATE CREATED: 3/3/2025 2:13 AM
DATE MODIFIED: 3/7/2025 1:06 AM
10. What is the primary difference between morals and values as defined in the context of business ethics?
a. Morals are socially enforced, while values are personal beliefs about right and wrong.
b. Morals are specific to individuals, while values are enduring beliefs enforced by society.
c. Morals define organizational principles, while values dictate legal requirements.
d. Morals are group norms, while values are personal philosophies.
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 1-1 Business Ethics Defined
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: LO1.1 - Illustrate what is meant by saying that human behavior is shaped by social
structure.
NATIONAL STANDARDS: United States - BUSPROG: Ethics - Ethics
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Business Ethics Ethical Decision Making and Cases 14th Edition by O. C. Ferrell, John Fraedrich,
Linda Ferrell Copyright 2026
Chapter 1-12
Chapter 01: The Importance of Business Ethics
1. Morals are enduring beliefs and ideals that are socially enforced.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1-1 Business Ethics Defined
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: LO1.1 - Illustrate what is meant by saying that human behavior is shaped by social
structure.
NATIONAL STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical Responsibilities
KEYWORDS: Bloom's: Remember
DATE CREATED: 3/3/2025 2:08 AM
DATE MODIFIED: 3/7/2025 1:06 AM
2. Every organization has the potential for unethical behavior.
a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1-2 Why Study Business Ethics?
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: LO1.2 - Question individualistic explanations of human behavior.
NATIONAL STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical Responsibilities
KEYWORDS: Bloom's: Remember
DATE CREATED: 3/3/2025 2:09 AM
DATE MODIFIED: 3/7/2025 1:06 AM
3. Until 1960, ethical issues related to business were often discussed in the domain of theology or philosophy.
a. True
b. False
ANSWER: True
POINTS: 1
Copyright Cengage Learning. Powered by Cognero. Page 1
,DIFFICULTY: Easy
REFERENCES: 1-3 The Development of Business Ethics
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: LO1.3 - Describe the significance of studying diversity in contemporary society.
NATIONAL STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical Responsibilities
KEYWORDS: Bloom's: Remember
DATE CREATED: 3/3/2025 2:10 AM
DATE MODIFIED: 3/7/2025 1:06 AM
4. ISO 37301 is a set of 10 principles concerning human rights, labor, the environment, and anti-corruption.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1-4 Developing Organizational and Global Ethical Cultures
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: LO1.4 - Explain the origins of sociological thought.
NATIONAL STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical Responsibilities
KEYWORDS: Bloom's: Remember
DATE CREATED: 3/3/2025 2:10 AM
DATE MODIFIED: 3/7/2025 1:06 AM
5. The primary reason businesses adopt ethical practices is to improve financial performance, rather than as a reflection of
their responsibility as members of society.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1-5 The Benefits of Business Ethics
QUESTION TYPE: True / False
HAS VARIABLES: False
LEARNING OBJECTIVES: LO1.5 - Compare and contrast the major frameworks of sociological theory.
NATIONAL STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical Responsibilities
KEYWORDS: Bloom's: Remember
DATE CREATED: 3/3/2025 2:11 AM
DATE MODIFIED: 3/12/2025 7:16 AM
6. During the 1980s, the field of business ethics matured as a recognized discipline, influenced by both academic and
corporate developments. If you were a corporate leader in this era tasked with implementing ethical practices following
Copyright Cengage Learning. Powered by Cognero. Page 2
,the Defense Industry Initiative (DII) principles, which action would align most effectively with these principles?
a. Conduct annual ethics training for employees and establish a safe mechanism for reporting unethical behavior
without fear of retribution.
b. Develop an internal policy to prioritize profit maximization, even at the expense of ethical considerations in
certain markets.
c. Limit ethics training to senior management while holding lower-level employees accountable for compliance
independently.
d. Focus exclusively on adhering to government-imposed regulations and ignore self-regulatory initiatives.
ANSWER: a
POINTS: 1
DIFFICULTY: Difficult
REFERENCES: 1-3 The Development of Business Ethics
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: LO1.3 - Describe the significance of studying diversity in contemporary society.
NATIONAL STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical Responsibilities
KEYWORDS: Bloom's: Apply
DATE CREATED: 3/3/2025 2:11 AM
DATE MODIFIED: 3/7/2025 1:06 AM
7. Ethically charged decisions:
a. are made at all levels of work and management.
b. are made primarily by top management.
c. stem from individual moral philosophies.
d. are less important than other decision-making processes.
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1-1 Business Ethics Defined
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: LO1.1 - Illustrate what is meant by saying that human behavior is shaped by social
structure.
NATIONAL STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical Responsibilities
KEYWORDS: Bloom's: Understand
DATE CREATED: 3/3/2025 2:12 AM
DATE MODIFIED: 3/7/2025 1:06 AM
8. Which of the following was developed in the 1980s to support organizations’ ethical programs?
a. Federal Sentencing Guidelines for Organizations
b. Defense Industry Initiative on Business Ethics and Conduct
c. Foreign Corrupt Practices Act
d. U.S. Sentencing Commission
ANSWER: b
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, POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1-3 The Development of Business Ethics
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: LO1.3 - Describe the significance of studying diversity in contemporary society.
NATIONAL STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical Responsibilities
KEYWORDS: Bloom's: Remember
DATE CREATED: 3/3/2025 2:13 AM
DATE MODIFIED: 3/7/2025 1:06 AM
9. Which of the following incentivizes firms to prevent and detect misconduct by offering rewards for compliance with
government regulations?
a. U.S. Sentencing Commission
b. Defense Industry Initiative on Business Ethics and Conduct
c. World Trade Organization
d. Federal Sentencing Guidelines for Organizations
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
REFERENCES: 1-3 The Development of Business Ethics
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: LO1.3 - Describe the significance of studying diversity in contemporary society.
NATIONAL STANDARDS: United States - BUSPROG: Ethics - Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical Responsibilities
KEYWORDS: Bloom's: Remember
DATE CREATED: 3/3/2025 2:13 AM
DATE MODIFIED: 3/7/2025 1:06 AM
10. What is the primary difference between morals and values as defined in the context of business ethics?
a. Morals are socially enforced, while values are personal beliefs about right and wrong.
b. Morals are specific to individuals, while values are enduring beliefs enforced by society.
c. Morals define organizational principles, while values dictate legal requirements.
d. Morals are group norms, while values are personal philosophies.
ANSWER: b
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: 1-1 Business Ethics Defined
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: LO1.1 - Illustrate what is meant by saying that human behavior is shaped by social
structure.
NATIONAL STANDARDS: United States - BUSPROG: Ethics - Ethics
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