Chapter 7 - Ethics In Business

Chapter 7 1. Public interest in business ethics is at an all-time high. a. True b. False ANSWER: True 3. The ethics scandal that has come to define modern business ethics is the Enron debacle. a. True b. False ANSWER: True 8. The public's view of business ethics has always been very high until the recent scandals. a. True b. False ANSWER: False 9. Descriptive ethics is concerned with studying and describing the morality of a particular group of people. a. True b. False ANSWER: True 11. The major questions related to the conventional approach to business ethics are "Whose norms do we use?" and "What norms are prevailing?" a. True b. False ANSWER: True 15. In business decisions ethics, the environment and the law are not factors. a. Truc b. False ANSWER: False 16. Immoral management implies that decision makers know right from wrong, but choose to do wrong. a. True b. False ANSWER: True 27. At the macro level, big business is being questioned for its: a. ethical challenges b. legitimacy c. individual activities d. managerial relationships ANSWER: b 31. The magnitude of the current ethics problem is seen to be caused by a. rising social expectations. b. small increases, declines, and stability in actual business ethics. c. both rising social expectations and small increases, declines, and stability in actual business ethics. d. Ethics is not currently a problem. ANSWER: с 32. One of the functions of corporate governance is a. oversight of senior managers. b. capital budgeting. c. incorporating ethics into the strategic planning process. d. monitoring executive bonuses. ANSWER: a 33. The discipline that deals with what is good and bad and with moral duty and obligation is a. morality. b. deontology. c. ethics. d. moral philosophy. ANSWER: C 34. A doctrine or system regarding one's personal compass regarding right or wrong is called a. ethics. b. deontology. c. morality. d. moral philosophy. ANSWER: c 35. Business ethics is a. a special branch of ethics unto itself. b. concerned with moral issues that occur only in business. c. concerned with right and wrong behavior within a business context. d. a subset of business practice. ANSWER: C 38. Which of the following is not one of the major approaches to thinking about business ethics? a. conventional approach b. rights and duties approach c. principles approach d. ethical tests approach ANSWER: b 40. The approach to business ethics in which we compare a decision or practice to prevailing norms of acceptability is the a. virtue approach. b. principles approach. c. conventional approach. d. ethical tests approach. ANSWER: C 41. The minimum standard of ethical behavior can be thought of as a. following the Golden Rule. b. adhering to the law. c. living according to religious principles. d. avoiding punishment. ANSWER: b 42. Which of the following is not an element of making ethical judgments? a. observation of the decision or action b. comparison of the decision or action to prevailing norms of acceptability c. recognition that value judgments are made regarding the decision or action and the prevailing norms of acceptability d. awareness of the moral implications of a situation ANSWER: d 45. Characteristics of intentionally amoral managers include all of the following except a. They think ethics and business don't mix. b. They think business and ethics are separate spheres. c. They have an obsession with fairness. d. They are dying out. ANSWER: C 46. The normative question of ethics is a. what is? b. what ought to be? c. how do we get from what is to what ought to be? d. what is our motivation? ANSWER: b 47. The ethics test approach is more a. descriptive. b. normative. c. practical. d. motivational. ANSWER: C 48. The challenge in all managerial situations is take what can be done and what should be done and find a. a balance. b. the more practical solution. c. the least costly approach. d. the most effective action. ANSWER: a 49. Which of the following is not a model of ethical management provided in the textbook? a. immoral management b. semi-moral management c. moral management. d. amoral management ANSWER: b 50. The model of ethical management that implies a positive and active opposition to what is right is called a. immoral management. b. moral management. c. semi-moral management. d. amoral management. ANSWER: a 52. The model of ethical management in which managers fail to take morality into account when making decisions is a. immoral management. b. moral management. c. semi-moral management. d. amoral management. ANSWER: d 53. The key operating question of immoral management is a. can we make money with this action, regardless of what it takes? b. will this action be fair to all stakeholders? c. what effects will this action have on our major stakeholders? d. can we make money with this action? ANSWER: a