BUS 500 Midterm Exam 100% Correct Answers
Which of the following statements is true about ethical decision making in business?
- A) It is limited to the type of major corporate decisions with social consequences.
- B) It should rely on the personal values and principles of the individuals involved
- C) It involves significant general policy issues that affect entire organizations.
- D) Every employee, except workers in a process-oriented organization, will be faced with an issue that will require ethical decision making.
Which of the following best describes a business stakeholder?
- A) Anyone who affects or is affected by decisions made within a firm.
- B) Anyone who has acquired significant shareholding in a firm.
- C) Anyone with a controlling interest in a firm.
- D) Minority shareholders in a business entity.
The aspect of business ethics that examines business institutions from a social rather than an individual perspective is referred to as:
- A) institutionalized ethical responsibility.
- B) corporate cultural responsibility.
- C) decision making for social responsibility.
- D) institutional morality.
Kathy, your best friend and classmate, asks you to help her with a challenging ethical predicament. Which of the following would be your first step in the decision making process?
- A) Identifying the ethical issue
- B) Considering the available alternatives
- C) Determining the facts of the situation
- D) Making the decision
Which of the following statements reflects the concept of normative myopia?
- A) “I was so involved in our debate that I missed the red light. We need to limit our conversations in the car.”
- B) “I may have exaggerated the features of the product to get this sale. You knew how important this deal was for me.”
- C) “Brad met with an accident because he was drunk while driving. I hope he has learnt his lesson.”
- D) “I never expected Draco to steal from me; he has been my friend for so long.”
In the ethical decision-making process, once we have examined the facts and identified the ethical issues involved, we should next:
- A) make the decision.
- B) consider the available alternatives.
- C) identify stakeholders.
- D) monitor and learn from the outcomes.
Which of the following explains the term “satisficing?”
- A) Considering limited alternatives while making decisions.
- B) Selecting the alternative that meets minimum decision criteria.
- C) Following simplified decision rules.
- D) Selecting the alternative simply because it is the easy way out.
Ethical reasoning falls into three major categories. Identify them.
- A) Utility, virtue, and values
- B) Universal rights, values, and moral principles
- C) Personal character, consequences, and principles
- D) Universal rights, cultural norms, and mores
The study of various character traits that can contribute to, or obstruct, a happy and meaningful human life is part of:
- A) philosophical ethics.
- B) virtue ethics.
- C) deontological ethics.
- D) utilitarianism.
Utilitarianism has been called a(n):
- A) consequentialist approach to ethics.
- B) behavioral approach to ethics.
- C) commonsensical approach to ethics.
- D) intuitive approach to ethics.
Which of the following traditions would support child labor because it produces better overall consequences than the available alternatives?
- A) Virtue ethics
- B) Deontological ethics
- C) Utilitarianism
- D) Classicism
Economists that view profit maximization as a central idea to corporate social responsibility are following the:
- A) Kantian framework of ethics.
- B) utilitarian framework of ethics.
- C) deontological framework of ethics.
- D) virtue-based framework of ethics.
Which of the following is true about corporate culture?
- A) Corporate cultures shape the people of the organization, without getting affected by them.
- B) Corporate cultures are generally static, but can be changed by voluntary action of the top managers.
- C) Corporate cultures can hinder individuals in making the “right” decisions.
- D) Corporate Cultures cannot hinder individuals in making the “right” decisions.
Which of the following statements is true about ethical corporate cultures?
- A) Ethical organizational culture cannot have a direct impact on the bottom line.
- B) If attended to and supported, a strong ethical culture can serve as a deterrent to stakeholder damage.
- C) Even if ignored, organizational culture could reinforce a perception that “anything goes,” and “any way to a better bottom line is acceptable,” building long-term sustainability.
- D) The responsibility for creating and sustaining ethical corporate cultures rests on law enforcement agencies.
Which of the following is true about corporate culture?
- A) An integrity-based culture is one that reinforces a particular set of rules.
- B) A compliance culture is only as strong and as precise as the rules that workers are expected to follow.
- C) Values-based organizations do not include a compliance structure.
- D) A values-based culture emphasizes obedience to the rules as the primary responsibility of ethics.
Which of the following involves the disclosure of unethical or illegal activities to someone who is in a position to take action to prevent or punish the wrongdoing?
- A) Gentrification
- B) Redlining
- C) Whistleblowing
- D) Flyposting
The law has created a form of business that limits the liability of individuals for the risks involved in business activities. Identify the form of business.
- A) Corporation
- B) Partnership
- C) Limited partnership
- D) Proprietorship
Which of the following is true about the economic model of CSR?
- A) It holds that businesses should not only pursue profits, but it should also do its part for environment sustainability.
- B) It has its roots in the Kantian tradition of ethics.
- C) According to this model, profit is a direct measure of how well a business firm is meeting society’s expectations.
- D) It holds that social goals should be at the heart of a firm’s mission.
“Just as individuals have no ethical obligation to contribute to charity or to do volunteer work in their community, business has no ethical obligations to serve wider social goods. But, just as charity is a good thing and something that we all want to encourage, business should be encouraged to contribute to society in ways that go beyond the narrow obligations of law and economics.” Identify the model of CSR that reflects this line of thought.
- A) Integrative model
- B) Stakeholder theory
- C) Philanthropic model
- D) Social Web model
Philosophers distinguish between three different types of responsibilities. The most demanding responsibility is often called duty or obligation in order to indicate that they oblige us in the strictest sense. Identify this responsibility.
- A) A business should not sell a product that causes harm to consumers.
- B) A business should volunteer for society or environment-friendly work.
- C) A business should engage in charitable work for the development of the society.
- D) A business should prevent harm even in those cases where it is not the cause.
The practice of attending to the “image” of a firm is referred to as:
- A) crisis management.
- B) branding.
- C) reputation management.
- D) gentrification.
Identify the correct statement about “bullying.”
- A) The mistreatment of an employee needs to be physically threatening to be termed as bullying.
- B) Bullying does not involve a boss who is constantly yelling dictates at workers because that is his job.
- C) When a coworker spreads rumors about another in order to sabotage his position, he is not bullying because he is not higher than the other employee in the hierarchy of authority.
- D) Bullying can lead to a complete loss of personal dignity, intimidation, and fear.
Identify the doctrine which holds that employers are free to fire an employee at any time and for any reason, unless an agreement specifies otherwise.
- A) The doctrine of estoppel
- B) The doctrine of constructive notice
- C) The doctrine of employment at will
- D) The doctrine of constructive dismissal
During to process of downsizing, allowing a worker to remain in a position for a period of time once she or he has been notified of impending termination might not be the best option. Identify the correct justification for this statement.
- A) Workers will interpret early notice as an effort to allow them time to come to grips with the loss of their jobs.
- B) Terminated workers will not be inclined to put their best effort, which might result in lost revenues.
- C) Terminated workers may interpret early notice as an effort to get the most out of them before departure.
- D) Workers who are not terminated will have a bad impression about the organization for terminating their coworkers.
Which of the following is discrimination against those traditionally considered to be in power or the majority?
- A) Reverse discrimination
- B) Affirmative action
- C) Inverse discrimination
- D) Converse discrimination