1 We should be honest because honesty is ethical and dishonesty is unethical behavior.
(A) True
(B) False
2 ________ occurs when an individual‘s self-interest conflicts with behaving in the best
interest of another when obligated to do so.
(A) Moral turpitude
(B) Conflict of interest
(C) Peer pressure
(D) Corporate oversight
(E) Virtuous ethics
3 _________ is the process of convincing oneself that a decision is rational and ethical, when
in fact it really serves self-interest or provides an easy way out of the ethical dilemma.
(A) Denying a problem exists
(B) Turning a deaf ear
(C) Labeling blame
(D) Justifying unethical behavior
(E) Ethical rationalization
4 Which of the following is not a thinking process to justify unethical behavior?
(A) Relativism ethics
(B) Conventional justification
(C) Critical thinking
(D) Displacement of responsibility
(E) Diffusion of responsibility
5 Phrases like “financial deficit,” “negative cash flow,” or “creative financing” are examples
of _________.
(A) Advantage comparison
(B) Euphemistic labeling
(C) Diffusion of responsibility
(D) Efficient communication
(E) Relativism ethics
6 “Do unto others as you would have them do unto you” is known as __________.
(A) correct moral level
(B) affirmative action
(C) disclosure
(D) the path to ethical righteousness
(E) the Golden Rule
7 Which statements about the levels of moral development are correct?
(A) At the lowest level of moral development, preconventional, behavior is motivated by self-
interest—seeking rewards and avoiding punishment.
(B) At the second level, conventional, behavior is motivated by meeting the group’s expectations to fit in
by copying others’ behavior.
(C) At the third level, postconventional, behavior is motivated by doing the right thing, even at the risk of
alienating the group.
(D) At the fourth level, hyperconventional, ethical behavior is ignored altogether.
(E) At the highest level, superconventional, behavior is motivated by doing greater good, even to the
point of breaking the law.
8 What statements are true regarding management ethics and business ethics?
(A) Management ethics and business ethics are essentially the same.
(B) Managerial ethics differs from business ethics because managers are not only responsible for their
individual behavior at work; they have ethical responsibilities because of their position.
(C) Managers need only answer to the ethical questions involving their employees.
(D) Managers are responsible for developing moral standard policies and procedures to guide employee
behavior and for ensuring that their employees behave ethically.
(E) Managers face more stakeholders with conflicting interests than employees.
9 What are the different classifications of managers regarding morals?
(A) Moral managers
(B) Amoral managers
(C) Immoral managers
(D) Conscientious managers
(E) Top shelf managers
10 Which of the following would be considered external pressure or cross-cultural
inconsistency?
(A) Stakeholder satisfaction
(B) Peer pressure
(C) Penalties for not performing
(D) Pressure from management
(E) Global differences in perceptions of what constitutes ethical practices
11 Which of the following is not among the questions in the “Five Question Test”?
(A) Will it lose my company money?
(B) Is it legal?
(C) Is it right and fair?
(D) Would I want everyone to know it?
(E) Will I get caught?
12 Who were credited with developing the first ethics theory?
(A) Thomas Jefferson
(B) St. Francis of Assisi
(C) René Descartes
(D) Aristotle
(E) Plato
13 Which of the following are elements in the three-way ethics test?
(A) Virtues test
(B) Antifraud test
(C) Industrial test
(D) Generalization test
(E) Utilitarian test
14 Describe the differences between universal and relativism ethics.
Answer:
15 Explain the relationship between business ethics and ethical dilemmas.
Answer:
16 What is conflict of interest?
Answer:
17 List five of the ten general guidelines to ethical decision making.
Answer:
18 Which statement about the levels of moral development is not true?
(A) At the third level, postconventional, behavior is motivated by doing the right thing, even at
the risk of alienating the group.
(B) At the highest level, superconventional, behavior is motivated by doing greater good, even to the
point of breaking the law.
(C) At the highest level, behavior is meeting the group’s expectations to fit in by copying others’ good
behavior.
(D) At the lowest level of moral development, preconventional, behavior is motivated by self-interest—
seeking rewards and avoiding punishment.
(E) At the second level, conventional, behavior is motivated by meeting the group’s expectations to fit in
by copying others’ behavior.
19 Which statement is not a myth about business ethics?
(A) Business ethics is simple; just follow a guide such as “don’t do anything you wouldn’t want
to appear on the front page of the newspaper.”
(B) There is no point in studying ethics because we all know what is right; it’s just a matter of doing what
is ethical.
(C) Ethics is just a matter of opinion.
(D) We learn ethics as kids and really can’t change our behavior to be more ethical as adults.
(E) Ethics can be learned and taught.
20 A/n ________ occurs when a decision must be made in the midst of conflicting interests;
sometimes there is no simple right and wrong answer.
(A) shortfall
(B) alternative strategy
(C) ethical dilemma
(D) justification
(E) moral development
21 Managerial ethics and business ethics are essentially the same thing.
(A) True
(B) False
22 There is no point in studying ethics because we all know what is right; it’s just a matter of
doing what is ethical.
(A) True
(B) False
23 Penalties for not performing to a certain level can pressure people to act unethically
(A) True
(B) False
24 Situational characteristics affect the degree to which we are willing to be influenced by
others’ unethical behavior
(A) True
(B) False
25 You should consider rights of a person, group, or organization is another guide to making
ethical decisions.
(A) True
(B) False
26 If pondering an ethical question, you said something like, “Would my parents be proud of
me if they knew I did this?” would be considered common sense.
(A) True
(B) False
27 Most of the time, a combination of ethical guides must be used to achieve complex ethical
outcomes.
(A) True
(B) False
28 Stakeholders rarely have conflicting interests.
(A) True
(B) False
29 To pass the virtues test, the behavior must be honest, be based on good character traits,
and maintain one’s integrity and relationships.
(A) True
(B) False
30 To pass the utilitarian test, a specific action will lead to more favorable consequences than
any alternative decision.
(A) True
(B) False
31 To guide employee decision making and behavior, today few professional associations in the
functional areas of business have codes of ethics.
(A) True
(B) False
32 _________ means standards of human decency govern right and wrong behavior.
(A) Deontology
(B) Numerology
(C) Ethical deployment
(D) Generalization
(E) Teleology
33 Which of the following is not true regarding managerial ethics?
(A) Most professional associations in the functional areas of business have codes of ethics.
(B) Most large corporations have developed written codes of ethics.
(C) In codes of conduct, some companies have developed warning signs of unethical behavior.
(D) Managing ethics provides a form of self-regulation that can lead to less government regulation.
(E) Managers usually ignore codes of conduct and ethics policies.
34 Which statement best describes how the 5 Is strategic analysis includes the stakeholder
approach and ethics?
(A) When making decisions on how to deal with issues, interested stakeholders and their
incentives are identified by ethical managers.
(B) Alternative strategies are generated and evaluated by ethical managers.
(C) Each alternative is assessed for the consequences to strategic stakeholders using a cost vs. benefit
analysis in both the market and nonmarket environment.
(D) Each alternative strategy must pass the test of being legal and ethical to be selected and
implemented.
(E) These would all be good descriptions.
35 ________ is the moral standard of right and wrong, and fairness that influences behavior.
(A) Conscience
(B) Generalization
(C) Ethics
(D) Law
(E) Custom
36 _________ contend that morals can change based on time, the circumstances of the
situation, and personal opinion.
(A) Relativism ethics
(B) Global ethics
(C) Universal ethics
(D) Executive ethics
(E) Utilitarian ethics
37 Describe utilitarian (or cost-benefit analysis) as it relates to ethics.
Answer: