BA5103 Week 4 Quiz [Mid Term Solutions]

 

Question 1

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A common law or principle stating that officers, directors, and managers of a corporation are not liable for losses incurred when the evidence demonstrates that decisions were reasonable and made in good faith is known as ________.

Select one:

a.

corporate personhood

b.

corporate social responsibility

c.

sustainability

d.

business judgment rule

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The correct answer is:
business judgment rule

Question 2

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Which of the following is an example of demonstrating ethical standards?

Select one:

a.

consequentialism

b.

junzi

c.

categorical imperative

 

d.

eudaimonia

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The correct answer is:
consequentialism

Question 3

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Which of the following examples best demonstrates the burden of the social contract that companies have with stakeholders?

Select one:

a.

Samsung’s recall paid refunds and limited potential lawsuits.

b.

Samsung’s washers had a spin-cycle problem in 2017.

c.

Samsung assumed the risk of exposure and picked up the washers.

d.

Samsung warned customers that the machines could tip over.

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The correct answer is:
Samsung’s recall paid refunds and limited potential lawsuits.

Question 4

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Virtue ethics is an ethical system based on the exercise of which virtues?

Select one:

a.

courage, decency, and leadership

b.

courage, honor, and loyalty

c.

conscientiousness, honor, and accountability

d.

courage, decorum, and accountability

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The correct answer is:
courage, honor, and loyalty

Question 5

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Which of the following are the opposing views of how large, publicly held corporations should approach social responsibility and ethics?

Select one:

a.

Business should behave ethically, focusing exclusively on shareholders/investors.

b.

Business should behave ethically, fulfilling a strategic mission.

c.

Business should behave ethically, being responsible to all stakeholders.

d.

Business should behave ethically, focusing only on environmentalism.

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The correct answer is:
Business should behave ethically, being responsible to all stakeholders.

Question 6

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What is Rawls’s critique of utilitarianism?

Select one:

a.

The majority should prevail over the minority.

b.

A utility calculus can lead to tyranny.

c.

there is no problem with redistribution.

d.

Anything done through coercion or force is acceptable.

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The correct answer is:
A utility calculus can lead to tyranny.

Question 7

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What is ethics?

Select one:

a.

someone who is acting empathetic

b.

standards of behavior for professional and personal lives

c.

setting norms for ways one interacts only with coworkers

d.

standards of behavior for business only

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The correct answer is: standards of behavior for professional and personal lives

Question 8

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Results of a recent study indicate corporations benefit from following Corporate Social Responsibility (CSR) policies in multiple ways. These benefits can add value to a business and are collectively called a(n) ________.

Select one:

a.

"revolving door” effect

b.

economic benefit

c.

legal duty

d.

halo effect

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The correct answer is: halo effect

Question 9

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According to Kantian ethics, how should the story Les Misérables best be understood?

Select one:

a.

Valjean’s action was unethical, although perhaps not illegal.

 

b.

Extenuating circumstances need to be considered for empirical reasons.

c.

Valjean’s motives and duty to his sister act as ends justifying means.

d.

Valjean is guilty as charged for stealing bread and should be incarcerated.

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The correct answer is: Valjean’s motives and duty to his sister act as ends justifying means.

Question 10

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Which legislation was passed in 2002 that mandates reporting transparency by businesses in areas ranging from finance to accounting to supply chain activities?

Select one:

a.

Citizens United

b.

Fair Labor Standards Act

c.

Commerce Clause

d.

Sarbanes-Oxley Act

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The correct answer is: Sarbanes-Oxley Act

Question 11

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Corporate law enables businesses to take advantage of a legal structure that ________.

Select one:

a.

separates liability from ownership and control

b.

shields owners from publicity

c.

means the corporation is only liable in the state where its headquarters is located

d.

gives the corporate entity protection from all liability

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The correct answer is: separates liability from ownership and control

Question 12

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Which clause in the Constitution gives the federal government the right to regulate between states?

Select one:

a.

Small Government Clause

b.

States’ Right Clause

c.

Commerce Clause

d.

Government Regulation Clause

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The correct answer is:
Commerce Clause

Question 13

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Besides culture, what is another major influence in the development of business ethics? Select the best answer.

Select one:

a.

cultural norms

b.

universal values

c.

the passage of time

d.

code of ethics

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The correct answer is:
the passage of time

Question 14

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Which of the following best describes the interplay of promises of businesses to stakeholders and vice versa?

Select one:

a.

on-time delivery and responsiveness

b.

promise of quality that is greater than advertised

c.

only accepting cash and not credit

d.

supporting offshore philanthropy

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The correct answer is:
on-time delivery and responsiveness

Question 15

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Ethics are the ________ to which we hold ourselves accountable in our professional and personal lives.

Select one:

a.

standards of behavior

b.

high-level manners

c.

utmost conduct

d.

challenges in decision-making

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The correct answer is:
standards of behavior

Question 16

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Businesses that wish to achieve the dual goal of human flourishing and responsible profits should model which ethical behavior?

Select one:

a.

humanity in ethics

b.

business values

c.

humanistic business model

d.

code of ethics

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The correct answer is: humanistic business model

Question 17

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What is the golden mean?

Select one:

a.

justice as fairness

b.

a middle ground value between deficiency and excess

c.

the aim of ethical behavior

d.

treating every person the same

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The correct answer is: a middle ground value between deficiency and excess

Question 18

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Are ethical and legal responsibilities the same?

Select one:

a.

Yes, they are the same standards of behavior and must be followed.

b.

No, legal standards are necessary for a properly functioning society, and ethics deals with voluntary business conduct in accordance with laws, statutes, regulations, and policies.

c.

Yes, because companies have duties of legal and ethical responsibility to assert right or wrong.

d.

No, because law is always superior to ethics.

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The correct answer is:
No, legal standards are necessary for a properly functioning society, and ethics deals with voluntary business conduct in accordance with laws, statutes, regulations, and policies.

Question 19

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In the case of Dodge v. Ford Motor Company, the Michigan Supreme Court ruled in favor of shareholder primacy. What was the decision?

 

Select one:

a.

Henry Ford must operate Ford Motor Company primarily for the benefit of creditors.

b.

Henry Ford must operate Ford Motor Company primarily to maximize profit for its shareholders.

c.

Henry Ford must operate Ford Motor Company primarily for the benefit of its workers.

d.

Henry Ford must operate Ford Motor Company primarily to maximize profit for the directors.

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The correct answer is:
Henry Ford must operate Ford Motor Company primarily to maximize profit for its shareholders.

Question 20

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As a form of philosophy, ethics was a major focus of ancient Athens leaders, including Aristotle, Socrates, and ________.

Select one:

a.

Parmenides

b.

Pythagoras

c.

Hippocrates

d.

Plato

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The correct answer is:
Plato

Question 21

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Which of the following best relates to prioritizing stakeholders?

Select one:

a.

Customers are not considered high-priority stakeholders.

b.

Corporations need to maintain initial priority of stakeholders.

c.

Customers are considered high-priority stakeholders.

d.

Corporations need to manage expectations of customers.

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The correct answer is: Customers are considered high-priority stakeholders.

Question 22

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Which of the following best describes how unconditioned ethics is a challenge to a global organization?

Select one:

a.

a domestic organization dealing with governmental licensing

b.

a global organization dealing with nongovernmental organizations and cross-border morality

c.

a global organization dealing with suppliers and multiculturalism

d.

a domestic organization dealing with lobbyists and local political interests

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The correct answer is:
a global organization dealing with suppliers and multiculturalism

Question 23

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Which of the following describes the difference between enculturation and acculturation?

Select one:

a.

Enculturation refers to the process of humans learning what is considered appropriate behavior in their surrounding cultures, whereas acculturation refers to the culture all humans are born with, regardless of their origin.

b.

Enculturation refers to the culture all humans are born with, regardless of their origin, whereas acculturation refers to the process of humans learning what is considered appropriate behavior in their surrounding cultures.

c.

Enculturation refers to the process by which humans learn the rules, customs, skills, and values to participate in a society, whereas acculturation refers specifically to the cultural transmission and socialization process that stems from cultural exchange.

d.

Enculturation refers specifically to the cultural transmission and socialization process that stems from cultural exchange, whereas acculturation refers to the process by which humans learn the rules, customs, skills, and values to participate in a society.

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The correct answer is: Enculturation refers to the process by which humans learn the rules, customs, skills, and values to participate in a society, whereas acculturation refers specifically to the cultural transmission and socialization process that stems from cultural exchange.

Question 24

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Which of the following definitions best describes consumerism?

Select one:

a.

the challenges of outsourcing production to lower costs and increase profits

b.

the resistance to a culture or way of life emphasizing consumer goods

 

c.

the lifestyle characterized by the acquisition of goods and services

d.

the theory that global wealth is static and prosperity comes from wealth through extraction

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The correct answer is: the lifestyle characterized by the acquisition of goods and services

Question 25

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Which of the following terms refers to the process by which humans learn the rules, customs, skills, and values to participate in a society?

Select one:

a.

norms and values

b.

enculturation

c.

culture

d.

acculturation

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The correct answer is:
enculturation

Question 26

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Normative ethics means ________.

 

Select one:

a.

developing rules and norms for corporate decision-making only

b.

discovering right and delineating it from wrong

c.

discovering right and not focusing on wrong

d.

developing rules or norms for the greatest good for the greatest number

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The correct answer is:
discovering right and delineating it from wrong

Question 27

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Which of the following is considered the most important internal stakeholder of a corporation?

Select one:

a.

marketing directors

b.

board of directors

c.

governmental affairs office

d.

executive management

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The correct answer is:
board of directors

Question 28

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Which intellectual, emotional, and social human trait affects all decision-making, including ethical decisions?

Select one:

a.

attitude

b.

self-awareness

c.

values

d.

bias [This is the correct answer]

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The correct answer is:
bias

Question 29

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Which of the following is the best description for what it means to be a professional of integrity?

Select one:

a.

ensuring employee happiness

b.

having an ethical mindset in business

c.

following the investment style of Warren Buffet

d.

thinking long term when investing

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The correct answer is: having an ethical mindset in business

Question 30

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What is a measure that accounts for an organization’s results in terms of its effects on profits, planet, and people?

Select one:

a.

greenwashing

b.

stakeholder prioritization

c.

triple bottom line

d.

corporate social responsibility

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The correct answer is:

triple bottom line