1. Principles are
a. laws and regulations that guide behavior in the world of business.
b. mores, values, and customs that guide behavior in general.
c. specific and pervasive boundaries for behavior that are universal and absolute.
d. the obligations businesses assume to maximize their positive impact and minimize their negative impact on
stakeholders.
e. the mores, values, and customs that parents teach their children.
2. Social responsibility is
a. an organization’s obligation to maximize its positive effects and minimize its negative effects on stakeholders.
b. principles and standards that guide behavior in the world of business.
c. a business‘s responsibility not to pollute the environment.
d. a business’s responsibility to manufacture products that function properly.
e. charitable contributions made by a business to enhance its image.
3. The was/were enacted to restore confidence in financial reporting and business ethics after the accounting
scandals of the early 2000s.
a. Defense Industry Initiative on Business Ethics and Conduct
b. Sarbanes-Oxley Act
c. Federal Sentencing Guidelines for Organizations
d. Foreign Corrupt Practices Act
e. Dodd-Frank Wall Street Reform and Consumer Protection Act
4. The term business ethics is best described by the following statement:
a. It is the study and philosophy of human conduct, with an emphasis on determining right and wrong.
b. It is an “inquiry into the nature and grounds of morality where the term morality is taken to mean moral
judgments, standards and rules of conduct.”
c. It is the “study of the general nature of morals and of specific moral choices; moral philosophy; and the rules
or standards governing the conduct of the members of a profession.”
d. It is an organization‘s obligation to maximize its positive effects and minimize its negative effects on
stakeholders.
e. It comprises the principles, values, and standards that guide behavior in the world of business.
5. Which of the following is not one of the rights spelled out by John F. Kennedy in his “Consumers’ Bill of Rights”?
a. The right to choose
b. The right to safety
c. The right to be informed
d. The right to be ethical
e. The right to be heard
6. During the 1990s the institutionalization of business ethics was largely driven by which piece of legislation?
a. Sarbanes-Oxley Act
b. Federal Sentencing Guidelines for Organizations
c. Dodd-Frank Wall Street Reform and Consumer Protection Act
d. Foreign Corrupt Practices Act
e. Global Sullivan Principles
7. Business ethics, as a field, has passed through which of the following states?
a. A field of study to theological discussion to recognition of social issues
b. Recognition of social issues to a field of study to theological discussion
c. A field of study to recognition of social issues to theological discussion
d. Recognition of social issues to theological discussion to a field of study
e. Theological discussion to recognition of social issues to a field of study
8. The 1960s saw a rise of consumerism. What is consumerism?
a. An increase in consumer rights by organizations and governments
b. The growth of international retail chain stores
c. Activities undertaken by independent individuals, and groups to protect their rights as consumers
d. The widespread adoption of consumer oriented marketing strategies among businesses
e. Organizations’ tendency to seek ways to take advantage of consumers
9. Ethics is a part of decision making
a. at all levels of work and management.
b. primarily at the upper management levels of an organization.
c. mostly for policy makers.
d. that is less important than other decision making processes.
e. only at that lower levels of organizational management.
10. Which of the following was developed in the 1980s to guide corporate support for ethical conduct by establishing a
method for discussing best practices?
a. Federal Sentencing Guidelines for Organizations
b. Defense Industry Initiative on Business Ethics and Conduct
c. Corporate codes of conduct
d. United States Sentencing Commission
e. MERCOSUR
11. The focus(es) on firms taking action to prevent and detect business misconduct in cooperation with
government regulation.
a. United States Sentencing Commission
b. Defense Industry Initiative on Business Ethics and Conduct
c. World Trade Organization
d. United Nations Global Compact
e. Federal Sentencing Guidelines for Organizations
12. The study of business ethics is important to better understand all of the following except
a. that a person‘s own moral philosophies and decision-making experience may not be sufficient to guide him or
her in the business world.
b. how and why people make ethical or unethical decisions.
c. how to cope with conflicts between a person‘s own values and those of the organization in which he or she
works.
d. that business ethics is entirely an extension of an individual’s own personal ethics.
e. how to identify ethical issues arising in the business world.
13. According to the role of ethical culture in performance, all of these are drivers of profit except
a. trust.
b. investor loyalty.
c. employee commitment.
d. customer satisfaction.
e. opportunity for misconduct.
14. More than a compliance program, business ethics is becoming
a. a management issue to achieve competitive advantage.
b. less accepted by society.
c. mainly a government regulatory issue.
d. an initiative led by nonprofit organizations.
e. a program that decreases profits but increases societal benefits.
15. Having acceptable personal ethics is probably not going to be sufficient to handle complex business ethical issues
when an individual has
a. family concerns.
b. an unethical boss.
c. limited business experience.
d. financial training.
e. a marketing background.
16. One of the major ethical issues President Obama’s administration focused on was
a. decreasing environmental legislation.
b. deregulation.
c. tax decreases.
d. incentives to oil companies.
e. health care and consumer protection.
17. Which of the following is generally not considered a business ethics issue?
a. Harassment
b. Accounting fraud
c. Employee theft
d. Misuse of organizational resources
e. Corporate hierarchy
18. Which represented a far-reaching change to organizational control and accounting systems, making securities fraud a
criminal offense?
a. Council on Economic Priorities and Social Accountability 8000.
b. Sarbanes-Oxley Act.
c. Consumer Protection Act.
d. Defense Industry Initiative on Business Ethics and Conduct.
e. Dodd-Frank Wall Street Reform and Consumer Protection Act.
19. The Foreign Corrupt Practices Act outlawed
a. accounting fraud.
b. price collusion.
c. corruption in government.
d. bribery of officials in other countries.
e. executive misconduct.
20. Which of the following was not a provision of the Sarbanes-Oxley Act?
a. It stiffened penalties for corporate fraud.
b. It created an accounting oversight board that requires corporations to establish codes of ethics for financial
reporting.
c. It required top executives to sign off on their firms‘ financial statements.
d. It outlawed bribery of officials in other countries.
e. It made securities fraud a criminal offense.
21. Which of the following is not cited as an example of a global collaborative effort to establish standards of business
conduct?
a. Council on Economic Priorities’ Social Accountability 8000
b. Ethical Trading Initiative
c. U.S. Apparel Industry Partnership
d. United States Sentencing Commission
e. World Trade Organization
22. Because of Sarbanes-Oxley, publicly traded companies must develop
financial reporting.
a. ethics officers
b. ethics programs
c. codes of ethics
d. legal counsel
e. accountants
to assist in maintaining transparency in