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Multiple Choice Quiz for Chapter 6:
1) Philosopher John Rawls is famous for his theory of __________.
A) remunerative justice
B) principled justice
C) institutional justice
D) distributive justice
2) Rawls believes that:
A) Liberty precludes justice.
B) Arbitrary inequalities are inevitable.
C) Liberty and justice are related.
D) Justice precludes liberty.
3) Rawls posits four branches of government; which of the following is not one?
A) Communication
B) Allocation
C) Stabilization
D) Distribution
4) Robert Nozick is critical of socialism based on which of the following?
A) Public economy view
B) Free choice view
C) His Marxist views
D) It provides people’s needs
5) Rawls believes society is characterized by conflict and _____________.
A) an identity of interests
B) divergent interests
C) life interests
D) indifferent interests
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6) Rawls argues that utility runs counter to __________.
A) liberty
B) economy
C) justice
D) philosophy
7) Rawls believes in __________.
A) utilitarian ethics
B) social contract theory
C) economic ethics
D) natural ethics
8) Nozick posits that justice in holdings does not include which of the following?
A) Original acquisition of holdings
B) Transfer of holdings
C) Secondary or repeated transfer of holdings
D) Permanent equality of assets
9) According to Nozick, if the government wanted an equal distribution of goods to always be
the case, it would have to __________.
A) prevent transfer by individuals
B) reward the unjust
C) distribute items once a year
D) be in favor of utility
10) Nozick uses the person of Wilt Chamberlain in his example. Wilt Chamberlain was a famous
___________.
A) basketball player
B) musician
C) actor
D) jockey
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True/False Quiz for Chapter 6: Indicate whether each of the following is True or False.
1) Angola is a wealthy country.
2) Working on an offshore oil rig can be dangerous.
3) John Rawls is a social contract theorist.
4) Distribution is an enumerated principle of justice for Rawls.
5) Rawls believes justice can never exist with inequality.
6) Rawls assumes that a just society is likely to be a constitutional democracy.
7) Nozick believes the minimal state is the least extensive state that can be justified.
Correct answer: False
8) For Nozick, justice cannot allow the free transfer of holdings.
9) Nozick believes that whether a distribution is just depends upon how it came about.
10) Nozick is a socialist.
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Multiple Choice Quiz for Chapter 7
1) Ivermectin is a drug that can treat __________.
A) AIDS
B) River blindness
C) Leprosy
D) Typhus
2) Mutual confidence in certain rules of behavior typically is __________.
A) implicit
B) skeptical
C) explicit
D) multinational
3) A “public good” is ___________.
A) permanent
B) a demonstration of private property
C) government property
D) something we all generally benefit from
4) Milton Friedman believed that each business’s responsibility was to increase _________.
A) money supply
B) product distribution
C) its profits
D) customer outreach
5) Robert Frank draws parallels between ___________.
A) business practices and game theory
B) socialism and evolution
C) one-shot transactions and defections
D) cooperation and equilibrium
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6) Frank believes that the proper resolution of ethical dilemmas in business often involves
__________.
A) direct compensation
B) antagonizing competitors
C) anonymous punishment
D) higher costs
7) Lynn Sharp Paine believes businesses should foster climates that encourage___________.
A) leniency
B) exemplary behavior
C) compliance-oriented behavior
D) patterned behavior
8) In the early 1990’s, employees of Sears Auto Centers ___________.
A) were not properly trained in the repair of autos
B) acted as independent contractors
C) faced pressures to produce higher sales
D) helped restore the company’s image
9) “If it’s legal, it’s ethical” is __________.
A) always correct
B) always incorrect
C) an accurate slogan
D) a problematic slogan
10) In integrity strategy, ethics is ___________.
A) a line of business
B) a driving force
C) often overlooked
D) disregarded by company leaders
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True/False Quiz for Chapter 7
1) Companies must always deal with risks.
2) Adam Smith recognized that business depends on exchanges.
3) Business ethics can promote capitalist success.
4) Piece rate payment is attractive especially when individual productivity cannot be measured.
5) Distribution is a central concern of business ethics.
6) Commitment requires honest parties.
7) Quality assurance concerns exist between firms as well as between firms and consumers.
8) Consulting firms should freely share confidential information among their clients.
9) Organizations cannot affect an individual’s behavior.
10) Beech-Nut made a good business decision by passing off cheaper counterfeit liquid as apple
juice.
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Multiple Choice Quiz for Chapter 8
1) By December 2001, Enron was __________.
A) a well-run multinational corporation
B) an innovative success story
C) an example of corporate leadership
D) a “Ponzi” scheme
2) Enron started as ___________.
A) the result of a merger of two traditional companies
B) a maverick oil and gas concern
C) an energy trading concern
D) a South American company
3) Enron had a balance sheet littered with ____________.
A) debts
B) unusually creative accounting entries
C) subordinate notes
D) responsibilities of its parent company
4) Enron fell apart because of ___________.
A) the death of its chairman
B) the collapse of the oil market
C) its inability to raise funds to cover its “off balance sheet” transactions
D) excess liquidity
5) Enron was ___________.
A) a company with no assets
B) a limited liability partnership
C) a company with no international assets
D) the biggest bankruptcy in U.S. history
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6) Bureaucratic ethics is based on ___________.
A) too many people making decisions
B) the Protestant Ethic
C) managers’ rules for success
D) individual affluence
7) In modern American Bureaucratic companies _________.
A) details are pushed up and credit is pushed up
B) details are pushed down and credit is pushed up
C) details are pushed down and credit is pushed down
D) details are pushed up and credit is pushed down
8) Ethics in a Bureaucracy most often resembles __________.
A) a moral maze
B) a straight line
C) a ellipse
D) a jig-saw puzzle
9) Business managers tend to be morally ___________.
A) weak
B) congruent
C) incongruent
D) mute
10) Moral talk by managers is seen as:
A) a threat to the image of effectiveness
B) helpful to efficiency
C) both of the above
D) none of the above
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True/False Quiz for Chapter 8
1) The Sarbanes-Oxley Act affects auditors.
2) John C. Coffee, Jr. blames the rise in laborers’ compensation for much of the corporate
abuses of the 1990’s. Correct answer: False
3) All aggressive companies must eventually restate earnings.
4) The Sarbanes-Oxley Act affected directors of publicly traded companies.
5) The Sarbanes-Oxley Act affected officers of publicly traded companies.
6) Lawyers may never report the fraud of their clients.
7) Enron owned natural gas pipelines.
8) Enron made a fortune in broadband services.
9) Arthur Anderson served as Enron’s auditors.
10) Arthur Anderson always used the highest objective accounting standards with respect to
Enron.
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Multiple Choice Quiz for Chapter 9
1) The Pension Benefit Guaranty Corp is ___________.
A) a federal insurer
B) a private insurer
C) part of the Social Security Administration
D) always able to pay 100% of insured pensions
2) If Wal-Mart pays minimum wage, it is ___________.
A) deliberately hurtful to its employees
B) being overly generous
C) violating retirement laws
D) taking advantage of labor market conditions
3) The doctrine of Employment at Will means __________.
A) only the employer can end the relationship
B) either employer or employee can end the relationship
C) only the employee can end the relationship at any time
D) neither employer or employee can end the relationship
4) Typically:
A) Employers and employees are equal to each other.
B) Employees wield power over large employers.
C) Employers are in a position of power relative to prospective employees.
D) Employers wish to fire their employees.
5) Montana was the first state to ___________.
A) adopt employment at will
B) guarantee employees’ pension benefits
C) prohibit employee drug testing
D) comprehensively reject employment at will