unit 1. introduction to ethics

DNYANSAGAR ARTS AND COMMERCE COLLEGE, BALEWADI, PUNE – 45

Subject: Business Ethics (302) CLASS: SYBBA III SEM (2013 PATTERN)

Prof. Gayatri A.Amate www.dacc.edu.in

Unit 1. Introduction to Ethics :

1. The principles of scientific Management were more concerned with the

problems at the ………..levels

A. Higher levels

B. Middle

C. Operating

D. None

Answer :C

2. Father of Modern Management theory is ………………

A. Henry Fayol

B. F.W.Taylor

C. Henry Gantt

D. None

Answer: A

3. ………….suggests that each communication going up or coming down must

flow through each position in the line of authority

A. Communication Pattern

B. Horizontal communications

C. Scalar chain

D. None of these

Answer :C

4. Management can be considered as………………..

A. Exact science

B. Inexact science

C. Psuedo science

D. B or C

Answer:D

5. …………………..is that phase of business enterprise that concerns itself with




the overall determination of institutional objectives and the policies necessary

to be followed in achieving those objectives.

A. Management

B. administration

C. Both of these

D. None

Answer :B

6. ……….has defined the basic problem of managing as the art of “knowing exactly what you

want men to do and then see that they do it in the best and cheapest way “

A. Henry Fayol

B. F.W. Taylor

C. Mary parker Follet

D. None of these

Answer:B

7. According to functional foremanship, the speed boss, Inspector, foreman and

gang boss are entrusted with the …………………aspect of work.

A. Planning

B. Organizing

C. Doing

D. None of these

Answer:C

8. …………..is undertaken to find out the one best way of doing the thing

A. Job Analysis

B. Merit rating

C. Job enrichment

D. None




Answer :A

9. The principle of Unity of command is contrary to Taylors……………………..

A. Rule of thumb

B. Unity of Direction

C. Functional foremanship

D. None of these

Answer:C

10. According to …………..principle, each group of activities with the same

objective must have one head and one plan

A. Unity of Direction

B. Unity of command

C. Either of these

D. None

Answer:A

11. Everything which goes to increase the importance of subordinates role

is……………….

A. Decentralization

B. Centralization

C. Either A or B

D. None

Answer :A

12. The Book “ Functions of Executive” was written by …………………..

A. P.F. Drucker

B. Chester Barnard

C. Herbert Simon




D. None

Answer:B

13. ………………..school of Management recognizes the existence of a centralized body of

knowledge for the Management.

A. System approach

B. Empirical

C. Contingency

D. Operational

Answer :D

14. …………..school of thought has developed on the idea that there is no single best method to

find solutions to Managerial problems

A. System approach

B. Empirical

C. Contingency

D. Operational

Answer :C

15. Koontz and O’Donnel are the advocates of ……………….approach to

management

A. System approach

B. Empirical

C. Contingency

D. Operational

Answer :D




16. According to …………… approach, management is a logical process and it can be expressed

in terms of mathematical symbols and relationships.

A. Empirical

B. Management science

C. Contingency

D. Operational

Answer:D

17. ……………….approach of management heavily concentrates on ‘People’

aspect of management.

A. Human relations

B. System

C. Empirical

D. Management science

Answer:A

18. ……………is the art of knowing exactly what you want men to do and then

seeing that how they do it in the best and cheapest way.

A. General management

B. Scientific Management

C. Administration

D. None

Answer : B

19. …………..is introduced to secure the benefits of division of labour or

specialization at the supervising level under scientific management

A. Operating management

B. Functional foremanship




C. Either a or b

D. None

Answer : B

20. ………………….helps to determine a fair days work and rest period to

complete it

A. Work study

B. Time study

C. Motion study

D. All of these

Answer :A

21. The main objective of ……………..study is to determine and eliminate

unnecessary and wasteful movements

A. Work study

B. Time study

C. Motion study

D. All of these

Answer :C

22. The author of the famous book “General and Industrial Management”

is……………………

A. Henry Fayol

B. F.W. Taylor

C. Henry Gantt

D. None

Answer :A

23. According to Fayol , the principles of Management are……………….




A. Rigid

B. Flexible

C. A or b

D. None

Answer :B

24. ……………..is the right of a superior to give orders to subordinates, take

decisions etc.

A. Authority

B. Responsibility

C. Accountability

D. None

Answer :A

25. Authority and responsibility are …………….to each other

A. Supplementary

B. Complementary

C. Contradictory

D. None

Answer:B

26. ………….principle states that an employee should receive orders form one

superior only

A. Unity of direction

B. Unity of command

C. Esprit de corps

D. None

Anwer :B

27. According to ………….principle, there should always exist one head and one plan for a

group of activities having the same objective

A. Unity of direction

B. Unity of command




C. Esprit de corps

D. None

Anwer :A

28. …………..is highly suitable for large organizations having large number of

managerial personnel at different levels.

A. Centralization

B. Decentralization

C. Departmentalization

D. All of these

Anwer :B

29. ………….is defined as a chain of superiors ranging from the ultimate authority to the lowest

ranks

A. Structure

B. Scalar chain

C. Both of these

D. None of these

Answer :B

30. The book “Creative Experience was written by ………………..

A. Henry Fayol

B. F.W. Taylor

C. Mary parker Follet

D. None of these

Anwer :C

31. The book “functions of Executive” was written by……………….

A. Henry Fayol




B. F.W. Taylor

C. Mary Parker Follet

D. Chester I Barnard

Answer :D

32. …………….is the character of communication, in a formal organization by

virtue of which it is accepted by a member of the organization as governing

the action he contributes

A. Responsibility

B. Authority

C. Accountability

D. Power

Answer :B

33. …………..developed the “Need Hierarchy Theory” to explain human

behaviour within an organization.

A. A.H.Maslow

B. Douglas Mc. Gregor

C. Herzberg

D. Rensis Likert

Answer :A

34. The two factor theory of Motivation was developed by …………….

A. A.H.Maslow





C. Herzberg

D. Rensis Likert

Answer:C

35. Theory X and Theory Y was developed by ……………….

A. A.H.Maslow


C. Herzberg

D. Rensis Likert

Answer :B

36. …………….treats the organization as a complex system based on the

principles of supporting relationships in which decision making, leadership,

motivation, communication and control move together

A. A.H.Maslow


C. Herzberg

D. Rensis Likert

Answer :D

37. ……….has given the concept of administrative man as the model for decision making

A. A.H.Maslow


C. Herzberg

D. Herbert Simon

Answer :D




38. …………….developed the concept of Management by Objectives

A. A.H.Maslow

B. Herbert Simon

C. Herzberg

D. Peter F. Drucker

Answer: D

39. Motivation Hygiene theory was developed by ……..

A. A.H.Maslow

B. Herbert Simon

C. Herzberg

D. Rensis Likert

Answer: C

40. Management according to ……….Approach is the study of practical experience of Managers

and hence such a study would provide a better understanding to the effective way of Managing

an enterprise

A. Empirical


C. Contingency

D. Operational

Answer: A




Unit 2. Area of Business Ethics

41 ……….approach is based on the idea that an organization is studied in detail

and decisions are taken for each sub system, which in turn is in conformity

with the total system.

A. Empirical


C. Contingency

D. System

Answer: D

42. ………..school of thought has developed on the idea that there is no single best method to

find solutions to managerial problems

A. Empirical


C. Contingency

D. Operational

Answer: C

43. Koontz and O’Donnel are advocates of ………….approach to management

A. Empirical


C. Contingency

D. Operational

Answer: D

44. The introduction of computers in decision making process contributed a lot in popularizing

the ………approach in management




A. Empirical


C. System

D. Operational

Answer: C

45. ………….approach attempts to understand managerial problems and to

provide suitable solutions by the application of scientific methodology

A. Empirical


C. Contingency

D. Operational

Answer: B

46. The advocates of …………..approach view management as the direction of the activities of a

group of people towards the accomplishment of common

Objectives

A. Empirical


C. Contingency

D. Human behavior

Answer: D

47. According to ………………..Core competency must be the central subject of Corporate

strategy

A. Henry Fayol

B. F.W.Taylor

C. C.K. Prahlad

D. Peter F. Drucker




Answer: C

48. The book “Practice of Management was written by …………

A. Henry Fayol

B. F.W.Taylor

C. C.K. Prahlad

D. Peter F. Drucker

Answer: D

49. …………………believed that leaders are not born but also developed through proper

training in human behavior.

A. Mary Parker Follet

B. F.W.Taylor

C. C.K. Prahlad

D. Peter F. Drucker

Answer: A

50. The concept of Job enrichment is a contribution by……..

A. Frederick Herzberg

B. F.W.Taylor

C. C.K. Prahlad

D. Peter F. Drucker

Answer: A

51. --------- is considered as the primary function of management?

A. Organizing

B. Planning




C. c ) Staffing

D. Controlling

Answer: A

52. MBO stands for?

A. Management of Business Objectives

B. Management By Objectives

C. c ) Managing Business Operations

D. None of these

Answer :B

53. -------- is the process of selecting one best alternatives from different

alternatives.

A. Planning

B. Organizing

C. Decision making

D. Forecasting

Answer: C

54. -------- is the process of identifying and grouping of work to be performed

A. Organizing

B. Staffing

C. Division of labour

D. Planning

Answer: A

55. Operational guides to action is known as

A. Policies

B. `Procedures




C. Plan

D. None of these

Answer: B

56. -------- is a sequence of activities to be undertaken for implementing the

policies and achieving the objectives of an enterprise.

A. Procedures

B. Programme

C. Rule

D. Plans

Answer: B

57. -------- is an organizational structure which clearly defines duties,

responsibilities, and authority.

A. Formal

B. Informal

C. c ) Natural

D. None of these

Answer: A

58. --------organisation arises voluntarily or due to social interaction of people

A. Formal

B. Informal

C. c ) Line organization

D. All of these

Answer: B




59. Authority is the right to give -------- and the power to exact obedience

A. Information

B. Orders

C. Money

D. None of these

Answer:B

60. A superior cannot delegate

A. Authority

B. Responsibility

C. Duty

D. None of these

Answer :B

61. If the orders instructions or directions are delegated to a particular person, then it is known as

A. General delegation

B. Specific delegation

C. Written delegation

D. Informal delegation

Answer :B

62. --------- are certain assumptions about the future on the basis of which the plan will be

formulated

A. Programs

B. Planning premises

C. Planning issues

D. Procedures

Answer :B

63. Authority flows from




A. Top to Bottom

B. Bottom to top

C. Horizontally

D. All of these

Answer :A

64. ----------- refers to the maximum number of subordinates a superior can

effectively manage?

A. Scalar chain

B. Unity of direction

C. Accountability

D. Span of control

Answer :D

65. ----------- is the obligation of a subordinate to perform the duty assigned by his superior

A. Authority

B. Responsibility

C. Division of labour

D. Accountability

Answer :B

66. Military type of organization is also called

A. Informal organization

B. Line organization

C. Line & Staff

D. Functional

Answer :B

67. Concentration of authority of decision making at top levels of management is known as




A. Concentration

B. Decentralization

C. Centralization

D. None of these

Answer :C

68. Decentralization is

A. Compulsory

B. Optional

C. None of these

D. None of these

Answer :B

69. ---------- is a detailed and systematic study of jobs to know the nature and

characteristics.

A. Man power planning

B. Job analysis

C. Staffing

D. All of these

Answer :B

70. ----------is a statement showing the minimum acceptable qualities of the

persons to be placed on a Job.

A. Job analysis

B. Job description

C. Job specifications

D. Staffing

Answer :C




71. The result of job analysis written in a statement is known as

A. Job description

B. Job specifications

C. Man power planning

D. None of these

Answer :A

72. ------------is the process of searching for prospective employees and stimulating them to

apply for the Job.

A. Selection

B. Training

C. Recruitment

D. Induction

Answer:C

73. ---------- is considered as a negative function of management.

A. Selection

B. Recruitment

C. Training

D. Placement

Answer:A

74. --------- is the process of comparing actual performance with the standard and taking

corrective Action.

A. Controlling

B. (b) Management

A. Planning

B. Co-ordination

Answer:A




75 --------- a process of integrating the interdepartmental activities as unified

action towards the Achievement of the common goal of the organization.

A. Controlling

B. Directing

C. Co-ordination

D. All of these

Answer:C

76. --------- refers to co-ordination between activities of a manager and his

subordinates.

A. Vertical co-ordination

B. Horizontal co-ordinaiton

C. Diagonal co-ordination

D. None

Answer:A

77. ------------ aims at visualizing and identifying deviation before they actually

occur.

A. Predictive control

B. Concurrent control

C. Operational Control

D. All of these

Answer:A

78. In ---------type of organization, workers receive instructions from various

specialists.

A. Line

B. Functional

C. Informal




D. None

Answer:B

79. If duties and authority are shown in the organizational structure of the

enterprise, then it is called

A. Informal delegation

B. Formal delegation

C. Written delegation

D. None of these

Answer:B

80. -----------is an example of internal source of recruitment

A. Advertisement

B. Trade unions

C. Employment exchange

D. Promotion

Answer:D




Unit 3 Business Ethics in Global Economy :

81. -------- is the process of inducting an employee into the social set up of work.

A. Placement

B. Induction

C. Absorption

D. None of these

Answer:B

82. -------- is the act of increasing the knowledge and skills of an employee for

doing a job.

A. Training

B. Induction

C. Placement

D. Orientation

Answer:A

83. -------- means issuing orders, instructions and commands.

A. Directing

B. Unity of command

C. Authority

D. All of these

Answer:A

84. --------- is a statement of expected results expressed in quantitative terms for a period

A. Plan

B. Budget

C. Schedule




D. None of these

Answer:B

85. ------------ means an individual should receive orders and instructions from

only one superior

A. Unity of command

B. Span of control

C. Scalar chain

D. None of these

Answer:A

86. …………… is the activity of influencing people to strive willingly for group of objectives.

A. Motivation

B. Leadership

C. Communication

D. None of these

Answer:B

87. A leader should have …………..

A. Technical Knowledge

B. Empathy

C. Initiative

D. All of these

Answer:D

88. Autocratic style of leadership is also known as ………….

A. Authoritarian




B. Participative

C. Free rein

D. None of these

Answer:A

89. In ………… style of leadership a manager centralizes decision making power in himself

A. Autocratic

B. Participative

C. Free rein

D. None of these

Answer:A

90. ……………… leader tries to make the subordinates to feel that they are

actually participating in decision making even though he had already taken he

decision.

A. Participative

B. Free rein

C. Manipulative autocrat

D. None of these

Answer:C

91. ………………. Leadership gives complete freedom to subordinates

A. Authoritarian

B. Participative

C. Free rein

D. None of these

Answer:C




92. Participative leadership is also referred as …………………. leadership

A. Democratic

B. Consultative

C. Ideographic

D. All of these

Answer:D

93. ……………. Is vested with the democratic style of leadership

A. Negative Motivation

B. Centralization of authority

C. Decentralization of authority

D. One way communication

Answer:C

94. The relationship between the leader and his group is the same as that of father and his family

in ……

A. Autocratic

B. Participative

C. Free rein

D. Paternalistic

Answer:D

95. …………………. Leadership is also referred as fatherly leadership

A. Autocratic

B. Participative

C. Free rein

D. Paternalistic

Answer:D




96. …………. Means a process of stimulating people to action to accomplish

desired goals

A. Motivation

B. Leadership

C. Communication

D. None of these

Answer:A

97. Maslow’s theory of motivation is …………..

A. Theory X and Y

B. Two Factor Theory

C. Achievement Theory

D. None of these

Answer:D

98. Need Hierarchy theory was developed by …………

A. Mc Gregor

B. Abraham Maslow

C. Herzberg

D. Mc Clelland

Answer:B

99. According to Need Hierarchy theory, the human needs are ……….

A. Limited

B. Unpredictable

C. Unlimited

D. All of these

Answer:C




100. ………… needs are need for survival

A. Safety

B. Esteem

C. Social

D. Physiological

Answer:D

101. …………… is the need for love and affection

A. Safety

B. Esteem

C. Social

D. Physiological

Answer:C

102. The desire to reach the peak of one’s potential is called as ………..

A. Self Actualization need

B. Safety need

C. Esteem need

D. Social need

Answer:A

103. Two Factor Theory is also known as …………….

A. Theory X and Y

B. Motivation Hygiene Theory


D. None of these

Answer:B




104. Two Factor Theory was developed by …………….

A. Mc Gregor

B. Abraham Maslow

C. Herzberg

D. Mc Clelland

Answer:C

105. Achievement Theory was developed by ……….

A. Mc Gregor

B. Abraham Maslow

C. Herzberg

D. Mc Clelland

Answer:D

106. Achievement Theory is concerned with ………………..

A. Affiliation

B. Power

C. Achievement

D. All of these

Answer:D

107. Mc Gregor’s motivation theory is known as ………………

A. Theory X and Y

B. Two Factor Theory


D. None of these

Answer:A

108. …………….. is vested with negative motivation




A. Achievement Theory

B. Theory X

C. Theory Y

D. All of these

Answer:B

109. The techniques and tools for organizing and co-ordinating a group of

individuals working towards a common goal

A. Performance Management

B. Team Management

C. Performance Appraisal

D. None of these

Answer:B

110. ……….. Communication is also known as Grape wine

A. Formal

B. Informal

C. Lateral

D. None of these

Answer:B

111. The word MBO stands for ……………..

A. Management by Organisation

B. Management by Operation

C. Management by Objectives

D. None of these

Answer:C

112. ………….. Developed MBO

A. Henry Fayol




B. Rensis Likert

C. Michael Porter

D. Peter F Drucker

Answer:D

113. MBO gives emphasis on …………….

A. Top Management

B. b). Middle Management

C. Objectives

D. Lower Management

Answer:C

114. MBO establishes a …………………

A. Community of interest

B. Centralized organization

C. Rigid organisation structure

D. All of these

Answer:A

115. KRA in MBO stands for …………….

A. Kerala Rural Academy

B. Key Result Areas

C. Key Resources Availability

D. None of these

Answer:B

116. The word ‘Ethics’ is derived from Greek word ……….

A. Ethios




B. Ethikos

C. Ethoes

D. None of these

Answer:B

117. Ethics is a ………….

A. Pure science

B. Normative Science

C. Inexact Science

D. None of these

Answer:B

118. Ethics means ……….

A. Character

B. Manner

C. Custom

D. All of these

Answer:D

119. ……… deals with the right actions of individuals

A. Sincerity

B. Rules

C. Ethics

D. All of these

Answer:C

120. Ethics is a ……..

A. Social science

B. Science of conduct

C. Normative Science

D. All of these

Answer:D




Unit 3 Business Ethics in Global Economy :

121. The word ‘moral’ is derived from the Latin word ……….

A. Moralis

B. Morilitic

C. Monatic

D. None of these

Answer:A

122. Human nature is ………….

A. Learned

B. Programmed

C. Inherited

D. All of these

Answer:C

123. Personality is …………….

A. Learned

B. Inherited

C. Partially inherited and partially learned

D. Neither learned nor inherited

Answer:A

124. Culture is ………….

A. Learned

B. Programmed

C. Inherited

D. All of these

Answer:C




125. In …………. Culture the organisation provides a stable environment in which employees

can develop and exercise their skills

A. Fortress

B. Club

C. Baseball

D. Academy

Answer:D

126. ………. Culture exists in fast paced high risk organizations

A. Fortress

B. Club

C. Baseball

D. Academy

Answer:C

127. ……….. culture can be seen in military

A. Fortress

B. Club

C. Baseball

D. Academy

Answer:B

128. The traits or qualities that are considered as valuable are known as..…….

A. Culture

B. Values

C. Ethics

D. All of these




Answer:B

129. The term ‘value’ is derived from the French word ……………

A. Valoir

B. Valas

C. Velois

D. None of these

Answer:A

130. ……………… represent an individual’s highest priorities and deeply held

driving forces.

A. Values

B. Principles

C. Culture

D. Ethics

Answer:A

131. A set of characteristics that sets one group of people apart from another is

called as …………

A. Culture

B. Values

C. Ethics

D. None of these

Answer:A

132. Indian life has ………….. fundamental goals

A. Three

B. Five

C. Four




D. Two

Answer:C

133. Indian ethos is the outcome of ……….. way of life

A. Budha

B. Hindu

C. Christian

D. Muslim

Answer:B

134. IEM stands for ……………

A. Indian Economic Management

B. Institute for Education in Management

C. Indian Ethos in Management

D. International Environmental Management

Answer:C

135. The ‘guna’ of dark force is ………….

A. Raja Guna

B. Satva Guna

C. Tams Guna

D. None of these

Answer:C

136. Holism m,eans ………….

A. Oneness

B. Divinity

C. Materiality

D. All of these




Answer:A

137. Indian model of management is …………..

A. Value driven holistioc

B. Ratopnal holistic

C. Hybrid

D. Noneof these

Answer:A

138. Fundamental theories of Indian Model include …………….

A. Purushartha Theory

B. Panchakosas Theory

C. Theory of Gunas

D. All of these

Answer:D

139. ……………… refers to certain norms governing the conduct of workers

involved in a work situation

A. Team Work

B. Work Ethos

C. Work Group

D. Work Management

Answer:B

140. ………… seeks to determine norms and values

A. Culture

B. Normative science

C. Value

D. None of these.

Answer:B




141. …………………is primarily concerned with the relationship of business goals and

techniques to specifically human ends

A. Business ethics

B. Code of conduct

C. All of these

D. None

Answer:A

142. …………are the principles, which govern and guide business people to

perform business functions

A. Business ethics

B. Code of conduct

C. All of these

D. None

Answer:A

143. ………………….is the guiding principle for decision making in an economics based view

of management

A. Profit maximization

B. Wealth Maximisation

C. Value maximization

D. None

Answer:A

144. …………….is a process that allows people to make decisions based on their deeper values

which will be economically, socially and environmentally




sound.

A. Holistic approach

B. Ethics management

C. Code of conduct

D. None of these

Answer:A

145. A ……………..is a written document, inspirational in contents and specify

clearly what is acceptable or unacceptable behavior at workplace and

beyond, when the employees represent their organizations outside.

A. Code of conduct

B. Business Ethics

C. All of these

D. None of these

Answer:A

146. …………specifies methods for reporting violations, disciplinary action for

violations and the structure of the due process to be followed

A. Business Ethics

B. Code of ethics

C. All of these

D. None

Answer:B

147. ………….is a set of values, beliefs, goals , norms and ways of solving problems by the

members of the organization.

A. Corporate culture

B. Organizational culture

C. Both of these




D. None of these

Answer:A

148. Which among the following are advantages of managing business ethics in the workplace?

A. Cultivate strong team work and productivity

B. Avoid criminal acts

C. Lower fines

D. All of these

Answer:D

149. A ……………..is a buzz word to employees to observe ethical norms and

forms the basis for rules of conduct.

A. Code of ethics

B. Business Ethics

C. All of these

D. None

Answer:A

150. ……….would be charged with implementing and administering an ethical

management programme.

A. Top management

B. Ethics management committee

C. Middle management

D. None of these

Answer:B

151. When new employees are to be recruited,………….training should be

arranged for them.




A. Apprenticeship

B. Induction

C. Vestibule

D. None of these

Answer:B

152 ……………….is a new framework for decisions making on all levels that is based on

resource management of the whole

A. Holistic Management

B. Ethics management

C. Code of conduct

D. None of these

Answer:A

153. ……….term includes employees, customers, suppliers and the wider

community

A. Stock holder

B. Stake holder

C. Both of these

D. None of these

Answer:B

154. Ethics in workplaces can be managed through the use of

A. Codes of ethics

B. Codes of conduct,

C. Roles of ethics

D. All of these

Answer:D

155. The first step in holistic process of management is …………..




A. Define the whole under management

B. Develop a written goal statement

C. Assess current situation

D. Brainstorming to achieve goal.

Answer:A

[Environmental Concerns] Sana, the president of a company that makes paper, has an interest in

the environment. She recently went to a seminar on environmental dangers and has decided to

take steps to clean things up. She started at home and has now felt compelled to change things at

work. Sana had to face the fact that her company has been cheating and is not in compliance

with applicable environmental regulations due to dumping in a nearby river. Her company has

never been cited because it employs a very large number of people in the community,

including the mayor's husband and the chief-of-police's brother. On her mission to clean things

up, Sana has decided to go even further than the law requires and implement the very latest

environmental protections. When she announced her plan, the chair of the company's board of

directors, Jessica, had a meeting with Sana. Jessica told Sana to analyze the situation carefully

because the cost of the additional equipment would mean no dividend to shareholders and no

raise for employees. Furthermore, Jessica told Sana that installing all the new equipment would

result in higher prices for the company's paper product and could bankrupt the company because

of foreign competition. Jessica hinted that Sana could be fired if she persisted. Jessica

suggested that Sana should just be concerned with a minimal standard of ethics.

Sana decides to go forward with her plan to clean things up under the theory that she wants to

treat others in the same manner that she wants to be treated. Under Sana's theory, if she did not

understand the importance of the environmental improvements, she would want them to be thrust

upon her.

156) Which statement is true regarding meeting the minimal standard of business ethics

suggested by Jessica?

A) Decisions must receive a majority vote of acceptance by employees.

B) Decisions must meet the criteria of a follower of utilitarianism.

C) Decisions must meet the criteria of a follower of deontology.

D) Decisions must be legal.

E) Decisions must be legal and decisions must also receive a majority vote of acceptance by

employees.




Answer :D

157) Which of these would be a stakeholder in the above company?

A) The community, shareholders, and future generations

B) The community and shareholders only

C) Future generations only

D) The community only

E) The shareholders only

Answer :A

158) Sana's idea is best referred to as _.

A) The Sarbanes-Oxley Rule

B) The Greenhouse Rule

C) The Golden Rule

D) The Help Peers Test

E) The Disclosure Principle

Answer :C

159) Positive abstractions that capture our sense of what is good or desirable are called _.

A) Values

B) Ethical ideas

C) Conscience demands

D) Desirable principles

E) Action goals

Answer :A




Unit 4 Moral Issues in Business :

160) Which of these is or are in the WPH process of ethical decision-making?

A) Freedom, security, and efficiency

B) Security only

C) Freedom only

D) Efficiency only

E) Freedom and security, but not efficiency

Answer :A

161) The idea that we should interact with other people in a manner consistent with the

manner in which we would like them to interact with us is called the .

A) Ethical Realization Rule

B) Equalization Rule

C) Ten Commandments Rule

D) Golden Rule

E) Silver Rule

Answer :D

162) What is the law signed by President George W. Bush as a result of several corporate

accounting scandals?

A) The Sarbanes-Oxley Act

B) The Certified Public Accounting Act

C) The Public Accounting Act

D) The Whaley-Mall coat Act

E) The Corporate Scandal Act




Answer :A

163) Which of the following is true regarding activities of the Public Company Accounting

Oversight Board?

A) The Board requires that companies devise a system that allows employees to report

suspicions of unethical behavior, but it does not address financial reports prepared by auditors

and public accounting firms.

B) The Board requires that the universalization test be used as the primary ethical guideline

and also mandates protection for whistle-blowers who report suspicious activity involving

financial reports.

C) The Public Company Accounting Oversight Board was abolished during the Obama

administration and no longer exists.

D) The Board ensures that auditors and public accounting firms compile accurate and

truthful financial reports for the companies they audit, but it has no responsibility in regard to

whistle-blowing protection.

E) The Board ensures that auditors and public accounting firms compile accurate and

truthful financial reports for the companies they audit and also requires that companies devise a

system that allows employees to report suspicions of unethical behavior.

Answer:E

164) According to the text, which of the following may be a part of the "how" in the WPH

process of decision making?

A) Values, public disclosure, and security

B) Public disclosure, universalization, security, and the Golden Rule

C) Profit maximization, security, and public disclosure

D) Public disclosure, universalization, and the Golden Rule

E) Whistle-blowing, the Golden Rule, values, and public disclosure

Answer :D

165) According to the text, which of the following may be a part of the "WHO" in the WPH





A) Foreign entities, government officials, public/private partnerships

B) Legislatures, ethicists, owners

C) Consumers, owners and management

D) Shareholders, foreign entities, legislatures

E) Communities, public/private partnerships, and owners

Answer :C

166) According to the text, which of the following may be a part of the "Purpose" in the WPH


A) Efficiency, security, profit maximization, and ethics

B) Security, ethics, community standards, and universalization

C) Ethics, efficiency, golden, and television test

D) Ethics, community standards, golden rule, and universalization

E) Freedom, security, justice, and efficiency

Answer :E

167) A company has to dispose of bio-hazardous waste products. Dropping them in the landfill

anonymously would be the cheapest solution, but the company does not do this because it is

frightened of the bad publicity which could result if it was found out. In considering the possible

complicity, the company's decision was shaped by the:

A) Golden rule

B) Public disclosure test

C) Universalization

D) Profit Motive

E) WPH Method

Answer: B




168) A company has to dispose of bio-hazardous waste products. Dropping them in the landfill

anonymously would be the cheapest solution, but the company does not do this because it is

frightened that other companies might do the same and its workers would end up breathing in or

drinking pollutants. In considering the possible complicity, the company's decision was shaped

by the:

A) WPH Method

B) Golden rule

C) Public disclosure test

D) Universalization test

E) Profit Motive

Answer: B

169) Which theory most accurately fits the advice given by Mia?

A) Act utilitarianism

B) Rule utilitarianism

C) Virtue ethics

D) Deontology

E) Ethical relativism

Answer: A

170) Which theory most accurately fits the advice given by Katie?

A) Deontology

B) Rule utilitarianism

C) Ethical relativism

D) Act utilitarianism

E) Virtue ethics




Answer: B

171) Ethical conversation is primarily about finding the one and only right thing to do.

A) True

B) False

Answer: B

172) Business ethics is the application of ethics to the special problems and opportunities

experienced by business people.

A) True

B) False

Answer: A

173) Business ethics results in a set of correct decisions.

A) True

B) False

Answer: B

174) The only social responsibility that businesses have is to focus on how business decisions

affect company operations.

A) True

B) False

Answer: B




175) Insurer American International Group (AIG) is well known in the insurance industry for its

ethical business practices.

A) True

B) False

Answer: B

176) Legal rules governing contract laws have been shaped in large part by our sense of

commercial ethics.

A) True

B) False

Answer: A

177) In some countries, businesses must pay bribes to receive supplies they need to stay in

business.

A) True

B) False

Answer: A

178) In an ethical analysis using the WPH Framework referenced in the text, owners are the most

important stakeholders and should receive the greatest consideration in decision making

regardless of the type of problem addressed.

A) True

B) False

Answer: B




179) Under the WPH framework for ethical business decisions, business decisions are made in

pursuit of a particular purpose and are instruments toward an ethical end.

A) True

B) False

Answer: A

180) The terms shareholder and stakeholder have the same meaning.

A) True

B) False

Answer: B

181) The community in which a firm operates would not be considered a stakeholder of the firm.

A) True

B) False

Answer: B

182) Ethical relativism and situational ethics mean the same thing.

A) True

B) False

Answer: B




Unit 5. Functional Ethics:

183) Consequentialism provides a rigid set of rules to follow regardless of the situation.

A) True

B) False

Answer: B

184) One form of consequentialism is utilitarianism.

A) True

B) False

Answer: A

185) Ethical issues do not exist in accounting because the field involves primarily objective

data.

A) True

B) False

Answer: B




186) Which of the following presents a problem when considering the theory of ethics known

as absolutism?

A) The fact that most individuals associated with this theory have been proven to have acted

to the detriment of their followers in one way or another.

B) The allegation that an excessive number of followers actually follow consequentialism.

C) The unquestionable nature of the rules in most absolutist repositories seems overly

inflexible when applied to different situations.

D) The lack of objectivity.

E) The questionable nature of the rules in most absolutist repositories seems overly flexible

when applied to different situations.

Answer: C

187) Which of the following is the application of ethics to special problems and opportunities

experienced by those in business?

A) Business utilitarianism

B) Business ethics

C) Situational ethics

D) Sarbanes-Oxley principles

E) Consequentialism

Answer: B

188) Which of the following is the study and practice of decisions about what is good, or right?

A) Business

B) Consequences

C) Law




D) Morals

E) Ethics

Answer: E

189) A company is struggling to make a decision but the manager finds there is no clear right

decision available. This is an example of

A) A no-win situation

B) An ethical dilemma

C) A consequential dilemma

D) A win-win situation

E) A legal dilemma

Answer: B

190) An electrician working in a small town is the only electrician within a 100-mile radius. He

knows that people who have medical equipment at home have the highest need for power, so he

charges them double to fix problems with their electricity, compared with the average customer.

The community is angry about this choice. This business practice is most likely:

A) Ethical because it is not illegal for a company to set its prices based on maximizing

profits.

B) Ethical because owners should focus only on the impact of decisions on the firm.

C) Unethical because businesses operate in a community and communities have expectations

for behavior of individuals, groups, and businesses.

D) Unethical because it is against the law for a company to charge one customer more than

another.

E) Unethical because there is only one morally proper thing to do in any situation.

Answer: C




191) A local Chamber of Commerce plans a seminar on "the social responsibility of business in

our community." What does that term reference?

A) The responsibility of business to make profit for shareholders.

B) The expectations of employees regarding wage rates.

C) The expectations that the community imposes on firms doing business inside its borders.

D) The responsibility of business to have annual meetings.

E) The expectations of management in regard to adequate utility resources.

Answer: C

192) If a company does not care about community expectations:

A) It should honor them anyway, to a certain extent, because of the threat that legislation

will impose social obligations on them.

B) It should ignore them completely because a company's ethical obligation is to maximize

profits to shareholders.

C) It should ignore them completely because a company's only obligation is to obey the law.

D) It should ignore them completely because it is the company's choice whether to comply

with the desires of the community.

E) It should inform the community it will not honor its expectations because the company

has a moral obligation to provide this information.

Answer: A

193) The Economist published an interview of 500 top American business executives, who listed

four factors they believe are essential for profits and corporate citizenship to function as partners.

These four factors are:

A) Compliance with community standards at all levels, focus on profit above ethics,

community engagement, and a focus on fairness




B) Ethics at all levels, leadership at all levels, community engagement at all levels, and a

focus on profit as the ultimate goal for all levels.

C) Ethics at all levels, leadership at all levels, community engagement at all levels, and

private ownership

D) Leadership at all levels, ethics at the upper level, community engagement at all levels,

and positive employee/employer feedback.

E) Leadership at all levels; employee engagement; rigorous measurement of achievement;

and public private partnerships.

Answer: E

194) Which of the following is a consideration in meeting the minimal standard for a firm to be

considered an ethical business?

A) Meeting the requirement of the public disclosure test.

B) Considering the legality of a decision when choosing the means of production.

C) Meeting the requirements of deontology.

D) Meeting the requirement of utilitarianism.

E) Satisfying the company's board of directors.

Answer: B

195) A company wants to open a branch in a foreign country but discovers it would have to bribe

government officials to get a permit to obtain the materials necessary to build its headquarters.

Which of the following is an example of an ethical response?

A) Paying the bribe because the company's first obligation is to its shareholders.

B) Not paying the bribe and convincing a local company to illegally sell materials to them,

since demanding bribes is unethical behavior.

C) Paying the bribe because it is customary in the country where the business is to be

constructed.




D) Paying the bribe because the company only has to comply with the community standards

in the community where it will be operating.

E) Not paying the bribe and bringing in outside materials from a foreign country to complete

the construction.

Answer: E

196) A company pays bribes in foreign countries in order to conduct operations there. What legal

consequences can the company face?

A) Legal consequences under Glass-Steagall

B) No legal consequences as long as the bribe was legal in the country where it was paid.

C) Legal consequences under the Foreign Corrupt Practices Act

D) No legal consequences as long as the company was acting in the best interests of

shareholders

E) No legal consequences as long as the company had no choice but to pay the bribe if it

wished to do business in the foreign country.

Answer: C

197) Which of the following is true regarding business ethics?

A) Business ethics results in a set of correct decisions and does not simply refer to standards

of business conduct.

B) Business ethics produces a list of correct business decisions that all ethical businesses

will make so long as the theory of rule utilitarianism is followed.

C) Business ethics produces a list of correct business decisions that all ethical businesses

will make so long as the theory of virtue ethics is followed.

D) Business ethics produces a list of correct business decisions that all ethical businesses

will make so long as the theory of deontology is followed.




E) Business ethics refers to standards of business conduct but does not result in a set of

correct decisions.

Answer: E

198) How do law and business ethics relate to each other?

A) Ethics is unrelated to the law because ethics answers only moral questions.

B) The law establishes ethical rules and boundaries, because laws take multiple stakeholders

into consideration.

C) Ethics entirely determines what the laws will be, as ethics is focused on finding one right

answer to every question.

D) Law and business ethics serve as an interactive system, informing and assessing each

other.

E) The law establishes what is ethical, as anything which is legal is automatically ethical.

Answer: D

199) Which of the following is an example of how ethics shapes business laws?

A) Business law requires companies to put profits above all else, because protecting the

rights of shareholders is the ethically proper course of action.

B) Bribery is legal for U.S. companies doing business in foreign countries because

respecting foreign cultures is part of our community ethics.

C) Contract laws require parties to obey even unenforceable agreements because of our

ethical belief that every promise must be kept at all times.

D) Contract laws require parties to live up to promises because keeping promises is part of

our ethical inclination to encourage trust.

E) Bribery is legal for U.S. companies doing business in foreign countries because foreign

businesses can pay bribes and our ethical inclination is to level the playing field for American

businesses.

Answer: D




200) Which of the following is true about how ethical conceptions shape business law and

business relationships in different countries?

A) Different ethical understandings prevail in different countries, so ethical conceptions

shape business law and business relationships uniquely in each country.

B) Business law should be the same in all countries because protecting the rights of

shareholders is always the ethically proper course of action.

C) Different ethical understandings exist in different countries, but fairness is the highest

ethical standard so countries must create uniform laws.

D) Ethics does not shape business law or business relationships because law and ethics are

separate and not interrelated.

E) Business law and business relationships should be the same in all countries because

ethics provides one correct answer to all questions.

Answer: A

unit 1. introduction to ethics

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