Business Ethics, 8e Jennings
TEST BANK
UNIT ONE – ETHICAL THEORY, PHILOSOPHICAL
FOUNDATIONS,
OUR REASONING FLAWS, AND TYPES OF ETHICAL
DILEMMAS
True/False Questions
developed economies as unethical.
business.
soldier in London.
Business Ethics, 8e Jennings
as sources.
based on the benefits to be derived.
the issue from the perspective of the affected party.
to your proposed decision.
to the agent’s employer is ethical so long as the agent would have chosen that seller
anyway.
without disclosing that the agent owns 50% of the firm has committed an ethical violation.
without disclosure to either has not committed an ethical violation if both parties are
happy with the transaction.
conflict of interest in voting on the city’s award of a contract for the handling of the city’s
waste.
which he is a 10% shareholder does not have a conflict of interest so long as his stock
ownership is disclosed in his report on the drug.
conflict of interest if she has an endorsement contract with one of the shoe companies
that manufactures the shoes she will be evaluating.
company board is not a conflict of interest.
your spouse should not create perception problems so long as your purchasing decisions
are based on the merits.
evaluating collateral is not a conflict of interest.
Business Ethics, 8e Jennings
still an ethical violation.
researcher conducting studies has validated the firm’s claims is a conflict of interest.
parking fines and violations is unethical.
an ethical violation.
the costs from an insurer is unethical.
disclosure of study results harmful to the company and its products would be unethical.
not due to any lack of disclosure on your part, is ethical.
conduct and accommodations.
tickets for my city’s NBA team from the company that has supplied catering for the
company’s training sessions.
to say nothing and ignore the situation.
just wait and see if anything happens before taking any action.
agree to do it but remind him that I can’t make it a habit.
ride in them. It would be unethical to use a company car to drive you and your spouse to
a movie.
your duties at work. Each week you must submit case analyses to your professor. Using
work time to complete the analyses would be unethical.
Business Ethics, 8e Jennings
would be unethical.
purchasing, you were largely responsible for awarding that supplier the contract. The
supplier’s sales representative has just called and would like to take you to lunch to thank
you for the support. Going to lunch with the sale representative does not present any
ethical problems.
are pending.
Under county regulations, all steps in plumbing construction from the initial dig to the final
installation of sink and bathroom fixtures requires an inspection sign-off. Your plumbing
contractor friend has just called and wants to take you to dinner for your birthday at a
five-star restaurant. Because you are friends anyway, the dinner presents no ethical
problems.
using. You have taken one home and set it up for personal use. This is unethical
conduct.
in the district and supervise construction and remodeling and assess various building
needs. When you are traveling around to the various schools, you use a district vehicle
that is clearly marked as such. One day you stop at the country club and have lunch
before heading to the next school since the country club is on the way. You also stop at
the bank drive-thru teller to do some personal banking business. Both the lunch and the
bank stop are ethical breaches.
co-worker who is very bright and capable and hardworking. Your supervisor has asked
you to document everything Jane does and says that will help build a case for
termination. You should do as your supervisor tells you.
husband is not paying the child support the temporary court order requires. As a result,
Alice is broke until she can get her court hearing. Alice has been able, through diverting
checks returned to the company, to take about $2200 from the company to “temporarily
help her cover her bills,” as she has explained to you. You must report Alice’s
embezzlement.
stadium. The mayor has a conflict of interest and should not vote on the location of the
stadium when the city council takes action on the site.
major flaw in the company’s new paper-thin solar calculator. The calculator adds when
the subtract button is pressed if there are more than 3 figures to the right of the decimal
point. Since it is not your area, you should do and say nothing.
problem or refund money for those who already own the new calculator.
Business Ethics, 8e Jennings
Organists. Alice has been placed in charge of the Guild’s national convention. Each time
you pass by Alice’s desk or go to her to have some work done, you notice she is on the
phone discussing or working on the convention. Alice’s work on the convention during
work hours is an ethical violation.
his desk for several months. A secretary spotted the calendar and commented to your
supervisor that it was not appropriate for an office. Your supervisor took down the
calendar and has asked you to back him up if any complaints are filed. He has asked
you to say that you never saw the calendar. It would not be unethical for you to do as
your supervisor requests because he has removed the calendar.
member of Congress. You have indicated you have information about his private life but
will not share it. The reporter responds, “Tell me, just between you and me.” You share
the information and a quote from you on the private life of the member of Congress
appears in the newspaper the next day. The reporter was unethical in violating a trust.
through.
accepted employment with a particular firm.
company headquarters building for Smithco. A friend you have known since high school
works in Smithco’s capital budgeting area and has full knowledge of all the bids from all
firms. It would be unethical for your friend to share that information with you before you
submitted your bid.
information to your company.
other teams compete. The order of presentation is by luck of a draw. The team that is
the last to present left during one of the presentations, went to the computer room and
redid its PowerPoint slides and restructured its presentation based on what other teams
had presented. This team has done nothing wrong.
without taking time off.
paper, paper clips, pens) is not an ethical violation.
with your company.
your family.
Business Ethics, 8e Jennings
help your next employer.
not result in good feedback about you if your supervisors there are contacted.
through the lines of authority.
she is covering has a conflict of interest.
is no bid pending.
nothing from suppliers.
conflict of interest.
pending.
outmoded is acceptable when the insurer doesn’t question claims that amount to less
than $2,000.
particular course of conduct.
tests as a means for resolving ethical dilemmas.
an ethical issue.
lived or died.
Business Ethics, 8e Jennings
none assume accountability.
the summit were more memorable than when he did.
employer is not a breach of trust.
to a prospective employer is a breach of ethics.
were.
Business Ethics, 8e Jennings
dilemma is the Theory of Justice.
ethical behavior.
Kantian in their ethical standards.
example of virtue ethics.
created one of Wall Street’s most successful hedge funds.
Club.
member of Congress. You have indicated you have information about his private life but
will not share it. The reporter responds, “Tell me, just between you and me.” You share
the information and a quote from you on the private life of the member of Congress
appears in the newspaper the next day. The reporter was unethical in violating a trust.
Multiple Choice Questions
1. A recent survey found that 24% of Americans feel that it is always wrong to speed. In which of
the following schools of ethical thought would this 24% fit best?
2. Two male students fired guns off the balcony of Linda’s apartment. The police were able to see
which apartment it was by counting floors and windows. While the police run to Linda’s
apartment, her two friends run out her door and disappear into the crowd of students out and
about on a Friday night. When the police question Linda she refuses to tell them who her two
friends with the guns were. “I would never rat on a friend,” is Linda’s statement. One of the
police officers tells Linda she could be charged with obstruction of justice. Linda still refuses.
Which school of ethical thought would best suit Linda?
3. Which of the following people is associated with the “Front–Page-of-the-Newspaper” test for
ethical dilemmas?
4. Which philosopher would start with a tabula rasa and then develop ethical standards?
5. Which philosopher feels that we all hold a set of rights and that it is the role of government to
protect those rights?
6. Which philosopher developed the “greatest happiness principle”?
7. Which of the following would be considered a utilitarian?
8. Which school of ethical thought is found in The Fountainhead and Atlas Shrugged?
Business Ethics, 8e Jennings
9. Adam Smith fits into which category?
10. The Declaration of Independence relied on which ethical school of thought?
11. What reason did Jimmy Dunne III of Sandler O’Neill give for dedicating his time and resources to
helping the families of his employees who were killed in the World Trade Center attacks?
12. Which of the following would be consistent with the Divine Command Theory?
13. Who of the following philosophers subscribe to ethical egoism?
14. The Theory of Moral Sentiments:
15. Which of the following is an example of utilitarianism?
16. The goals of Locke and Rawls in developing their theory of ethics:
17. Which philosopher is associated with the Rights Theory?
18. Under the Rights Theory, who holds the responsibility for protection of rights?
19. Plato and Aristotle have which ethical school of thought in common?
20. “I did fudge on some of the numbers in our financial reports, but that kept 6,000 employees from
losing their jobs,” a statement by a CFO, is an example of:
21. The local fire chief of Penbrooke conducted an inspection of a small bakery in Penbrooke and
found a violation of the Penbrooke fire code: the bakery did not have a commercial ventilator
hood over its stove. The owner of the bakery asked where she could find a ventilator hood and
someone to install it. The fire chief referred her to Chimney Specialists, another business in
22. A professor asked a student, “Did you have a chance to look at the reading?” The student
responded, “Yes.” The professor commended the student for keeping up with assignments in the
course and awarded participation points to the student. The student had, in fact, looked at the
Business Ethics, 8e Jennings
reading, but he had not actually done the reading. “Hey, he just asked me if I had a chance to
look at the reading, and I told the truth.” The student:
23. A quid pro quo relates to which category of ethical dilemma?
24. Winking tolerance is associated with what category of ethical dilemma?
25. “Smoothing out earnings” can be a comfort name for:
26. “If you think what we’re doing now is bad, you should have seen our actions 10 years ago,” is an
example of:
27. The Barbara Walters/Andrew Lloyd Webber/Sunset Boulevard examples involves:
28. Which of the following models includes the question of legality of conduct as part of the ethical
analysis?
29. Who of the following follows the Front-Page-of–the-Newspaper test?
Business Ethics, 8e Jennings
30. Which of the following is not part of the Wall Street Journal model?
31. Which of the following is similar to Kant’s categorical imperative?
32. Who is the lead character and author of the article, “The Parable of the Sadhu”?
33. With reference to #32 above, where does the story take place?
34. With reference to #32 above, which country is not represented among the climbing parties?
35. With reference to #32 above, what happened to the Sadhu?
36. With reference to #32 above, how many times had the author successfully climbed Mt. Everest?
37. What were the effects of the Piper High School cheating issues on Piper?
38. What happened to the Piper High School teacher, Ms. Pelton?
39. Which of the following is not a step in analyzing ethical dilemmas and case studies?
40. Which category of ethical dilemma does line-cutting fall into?
41. What is the variable in uncovering resume fraud?
42. What category of ethical dilemma applies to the use of cell phone alibis?
a, Balancing ethical dilemmas
43. Which of the following phrases does not signal a potential ethical pitfall?
44. Which of the following is not an element of the Laura Nash’s model for evaluating ethical
dilemmas?
45. Under the Blanchard/Peale model, which of the following statements is correct?
46. Ben Small, a sole practitioner, has just decided to form a law partnership with his lifetime friend,
Harvey Steptoe. They agree to name the firm Steptoe and Small and to split all profits. Ben is
also a director for a publicly-traded telecommunications firm, NewVector, Inc. Ben has just
learned that Harvey is lead counsel is a lawsuit against NewVector. Ben continues to serve as a
board member and participates in sensitive discussions about the lawsuit. Ben does not disclose
that Steptoe is his partner. Ben’s feeling is that he and Harvey are as honest as the day is long
and neither would compromise their duties to NewVector and client, respectively.
47. Randy White is the executive director of a non-profit preschool for special needs children. Part of
Randy’s responsibilities include fundraising for the preschool. Because of his experience and
success in operating specialty pre-schools, Randy is sought after as a consultant at locations
around the country to assist in the start-up and operation of such facilities. Randy does so quite
frequently. Randy does not take vacation time for this work, and his consultant fees (which range
from $750 – $1500 per day) are kept by him as personal income. Randy uses his secretary at the
preschool to book his travel arrangements and prepare his consultant reports and bills for these
outside engagements.
48. Beth Williams is an exercise physiologist who serves as an expert consultant for Women’s
Walkers, Inc., a shoe company specializing in manufacturing walking shoes for women. Dr.
Williams is paid an annual consulting fee along with additional fees for drafting reports and
making media and public appearances for the company. Executive Woman, a national
magazine, has asked Dr. Williams to serve as one of three experts on a panel that will evaluate
the full market range of women’s walking shoes. Dr. Williams will be paid a consulting fee by
Executive Woman as well.
49. Which of the following is not a conflict of interest?
Business Ethics, 8e Jennings
50. Jeff Sanders, head of finance for Components, Inc. has just interviewed Laura Dern, an employee
from the finance department of InChip, Components’ chief competitor. Laura has explained that
she has been passed over one too many times for a promotion at InChip and is thus in the job
market. As Laura is leaving she whispers to Jeff, “Look, I have no contract at InChip that
obligates me in anyway. I can begin immediately. Further, I have been able to obtain copies of
our newest computer chip designs. You’ll have them before InChip even begins production.”
51. An application for graduate school admission at Arizona State University includes the following
request for information:
Please list all institutions attended since graduation from high school.
Marie Davis, a returning student, is applying for admissions to the Masters in Architecture
program. Marie attended the University of Arizona for one semester in 1976. Marie had a
substance abuse problem and did not attend many of her classes. She left the University of
Arizona before classes ended that semester. She did not take her final exams and earned 15
credit hours of “E” for that semester. After 8 years, the policy of the University of Arizona is to
expunge the records of non-matriculating students. Marie’s record was expunged in December
1994.
52. A radar detector:
53. A professor for one of your courses has assigned reading materials from various publications. He
tells you that the materials are on reserve and that each student should go and copy the materials
individually. He notes that for him to copy the materials for students and then sell them or
distribute them would be a violation of copyright law. The professor’s conduct:
54. You had quite a night last night of partying. Because of excessive drinking, you are unable to get
to work today. When you call your supervisor you:
55. Professor Reba McGintry is the head of the Student Conduct Board. Charges have been brought
against three students who are also members of the university basketball team. The charges are
based on the criminal charges brought by the local district attorney against the three men for
sexual assault. Professor McGintry’s husband was one of the staff attorneys in the DA’s office
who made the decision to go forward with the prosecution. Professor McGintry:
56. Medical Purchasing Agents (MPC) is a company that represents groups of hospitals as their
agents for purchasing medical supplies. MPC is able to obtain discounts for the hospital group
because of their sheer volume needs when they are grouped together. MPC’s CEO, CFO and
general counsel own 51% of the stock of a company called Medi-Pump. Medi-Pump is the sole
supplier to the hospitals for feeding pumps, IV pumps and other forms of hi-tech medical pumps
and supplies. MPC has negotiated a low-cost supply contract from Medi-Pump to the hospitals.
MPC:
57. Mary Pickford is an analyst for Munford Stanley, an investment banker. She has touted the stock,
an initial primary offering (IPO), of an obscure biotech firm as a “must buy.” Munford Stanley is
the underwriter for the IPO. Pickford:
58. Suppose, with reference to #57 above, that Pickford already owns an interest in the biotech firm,
but Munford Stanley is not the underwriter. Pickford: