In selling a product, a business offers tacit assurances that the product is reasonably
suitable for its purpose. The law refers to this as the:
a. doctrine of caveat emptor.
b. implied warranty of merchantability.
c. doctrine of caveat lector.
d. implied warranty of productivity.
Comparison of the probabilities of harm involved in various activities would determine
the _____.
a. acceptable level of risks
b. absolute risks
c. speculative risks
d. relative risks
Over the long term, resources and energy cannot be used, nor waste produced, at rates
at which the biosphere cannot replace or absorb them without jeopardizing its ability to
sustain life. These are what Herman Daly calls the:
a. ‘economic limitations.’
b. ‘backcasting effect.’
c. ‘biophysical limits to growth.’
d. ‘un-expandable boundaries.’
Identify the correct statement about government standards in the government-regulated
ethics approach to health and safety.
a. Due to its focus on prevention rather than compensation, standards cannot address the
‘first generation’ problem of the market controlled approach to health and safety.
b. Standards would favor individual bargaining between employers and employees as
the approach to workplace health and safety.
c. Standards can overcome market failures that result from insufficient information.
d. Standards call for the determination of comparison of probabilities of harm involved
in various activities.
_____ establish the guidelines or standards for determining what one should do, how
one should act, what type of person one should be.
a. Roles
b. Attitudes
c. Norms
d. Laws
A rights-based ethical framework would object to child labor because:
a. of all the likely consequences of a practice of employing young children in factories.
b. such practices are a means to production and economic growth.
c. such practices violate our duty to treat children with respect.
d. child labor does not produce beneficial consequences.
How is a market version of utilitarianism different from an administrative version?
a. The market version ensures that experts establish the safety standards a business is
expected to meet.
b. The market version uses social sciences to predict consequences.
c. The market version requires a government body to regulate business.
d. The market version produces those goods that the consumers want.
Which of the following is true of a market-based approach to resolving environmental
challenges?
a. It is critical of the narrow, philanthropic view of corporate social responsibility
(CSR).
b. It asserts that limited resources should not be distributed in the market.
c. It suggests that environmental problems deserve economic solutions.
d. It conveys that resources are infinite and fungible.
Which of the following statements is true about cost-benefit analysis?
a. It treats health and safety merely as an intrinsic value and denies its instrumental
value.
b. It requires that an economic value be placed on one’s life and bodily integrity.
c. It adopts the least expensive and most efficient means available to achieve existing
standards.
d. It uses ethical criteria in setting standards.
Which of the following is true about ethical leaders?
a. Ethical business leaders do not need to talk about ethics and act ethically on a
personal level.
b. They do not say ‘no’ to conduct that would be inconsistent with their organization’s
and their own personal values.
c. If an executive is ‘quietly ethical’ within the confines of the top management team,
but more distant employees do not know about her or his ethical stance, they are more
likely to be perceived as an ethical leader.
d. They expect others to say no to them.
Which of the following is the second step of the ethical decision-making process?
a. Considering available alternatives
b. Making the decision
c. Identifying the ethical issues involved
d. Considering the impact of the on stakeholders
Section 406 of the Sarbanes-Oxley Act addresses the:
a. rules of professional responsibility for attorneys.
b. codes of ethics for senior financial officers.
c. management assessment of internal controls.
d. services outside the scope of auditors.
Identify the barrier where individuals or groups select the option that meets the
minimum decision criteria, the one that people can live with, even if it might not be the
best.
a. Considering simplified decision rules
b. Satisficing
c. Optimizing
d. Selecting easy decisions
Which of the following is true of ethics based on rights?
a. Rights and duties can be easily defined.
b. There is no agreement on the scope and range of rights.
c. Application of theory to real-life situations is easy.
d. Rights and desires can be easily differentiated.
Which of the following is true about culture?
a. The specific culture within an organization can be defined easily and objectively.
b. The incentives an organization employs do not help in determining the organization’s
specific culture.
c. Attitude and behavior are the biggest fraction of the elements that determine culture.
d. Perception may actually impact the culture in a circular way.
How is an ethical, effective leader different from an effective leader?
a. An ethical leader will take decisions based only on a set of rules.
b. An ethical leader will follow a set of rules regardless of consequences.
c. An ethical leader will empower the employees in decision making.
d. An ethical leader will achieve his or her goals through intimidation.
Which of the following statements reflects the approach of a principle-based ethical
tradition?
a. Obey the law
b. Ends justify the means
c. Maximize the overall good
d. Survival of the fittest
A business will seek to limit its liability by explicitly disowning any promise or
warranty by:
a. using the caveat venditor principle.
b. issuing a disclaimer of liability.
c. completely disclaiming the implied warranty of merchantability.
d. denying responsibility for the behavior of its suppliers.
Which of the following is an advantage of drug testing?
a. Drug testing does not present any ethical challenges for employers.
b. Drug testing tends to provide a productivity benefit for companies.
c. There are no possibilities of incorrect presumptions in connection with drug testing.
d. There are no legal issues relating to monitoring employees through drug testing.
Which of the following is an often overlooked aspect of advertising?
a. Pricing function
b. Evaluation function
c. Educational function
d. Watchdog function
Which of the following allows organizations to uncover silent vulnerabilities that could
pose challenges later to the firm, serving as a vital element in risk assessment and
prevention? a. Code of conduct b. Ongoing ethics audit c. Whistleblowing
d. Ombudsman
Which of the following approaches shifts the focus from questions about what a person
should do, to a focus on who that person is?
a. Altruism
b. Principle-based
c. Utilitarianism
d. Virtue ethics
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 constructive dismissal
d. The doctrine of employment at will
Outline the implication of the social contract tradition within business.
_____ is discrimination against those traditionally considered to be in power or the
majority.
Ethics holds a higher position in the firm if a highly skilled individual is hired into an
exclusive position as _____ and is given a staff and a budget to support the work
required.
Summarize the three issues pertaining to marketing ethically.
According to the _____ model of CSR, the social responsibility of business managers is
simply to pursue profit within the law.