Business ethics now 50 mcqs

All of the following are sources of individuals’ moral standards except:
A) Family
B) Religion
C) Government
D) Friends

2 What is it that makes the study of ethics so complex?
A) Constant change
B) The grey area
C) Differing religions
D) Black and white decisions

3. Which of the following faces the problem that societies can place different emphases on different virtues?
A) Normative ethics
B) Utilitarianism
C) Virtue ethics
D) Universal ethics

4. All of the following are questions identified by Arthur Dorbin to resolve an ethical dilemma except:
A) What do your feelings tell you?
B) What are the alternatives?
C) What are the facts?
D) What will you think of yourself if you decide one thing or another?
5. How many stages are in Lawrence Kohlberg’s stages of ethical reasoning?
A) 3
B) 5
C) 6
D) 7
1 Instrumental value is pursued for its own sake, whether anything good comes from the pursuit or not.
A) True
B) False
2 Simple truth is one of the four basic categories of ethics and can be expressed simply as doing the right thing.
A) True
B) False
3 Utilitarianism is a belief in the ethical choices that offer the greatest good for the greatest number of people.
A) True
B) False
4 The final step in solving an ethical dilemma is to evaluate the results of your decision.
A) True
B) False
5 Kohlberg stated that it would be impossible for a person to comprehend the moral issues and dilemmas at a level so far beyond his or her life experience and education.
A) True
B) False
1. All of the following are stakeholders except:
A) customers
B) federal government
C) competitors
D) community

2 A(n) _______ is the combination of two contradictory terms.
A) oxymoron
B) synonym
C) antonym
D) metaphor
3 According to the text, which of the following is not an ethical cliché?
A) Do what’s legal
B) Consult the company code of ethics
C) Do what I do
D) Do what you think is best
4 In which type of conflict would you face the following question: Do you perceive the issue as a question of dispensing justice or dispensing mercy?
A) Short-term versus long-term
B) Truth versus loyalty
C) Individual versus community
D) None of these
5 Every unethical act that goes undiscovered reinforces which of the following:
A) A belief that the activity is “safe” because it will never be discovered or publicized
B) A belief that the activity is within reasonable ethical and legal limits
C) A belief that the activity is in the individual’s or the corporations’ best interest
D) A belief that because the activity helps the company, the company will condone it and even protect the person who engages in it
1 All of the following are key functions of an organization except:
A) Sales
B) Information systems
C) Marketing
D) R&D
2 What is the real ethical dilemma faced by the R&D department?
A) Product costs
B) Product quality
C) Production time
D) Product originality
3 Ideally, the human resources function within an organization should be directly involved in all of the following except:
A) the creation of a career development program for the employee
B) the creation of the job description for the position
C) the marketing of the organization’s products
D) the documentation of periodic performance reviews
4 Advocates of ethical business conduct argue that the HR department needs to ensure that all of the following critical areas are addressed except:
A) HR must keep track of all of the company’s financial transactions
B) HR professionals must help ensure that ethics are a top priority
C) HR is responsible for ensuring that the right programs and policies are in place
D) HR must stay abreast ethical issues
5 What is the number one reason explaining why employees stretch the truth in the workplace?
A) Acceptance by co-workers
B) Profits
C) Investor relations
D) Stakeholder relations
1 Which approach to corporate management states that the only obligation of a corporation is to maximize profits for its shareholders?
A) Shareholder approach
B) Social contract approach
C) Economic approach
D) Instrumental approach
2 Which approach to corporate management is considered simplistic because it assumes that there are no external consequences to the actions of the corporation?
A) Shareholder approach
B) Social contract approach
C) Economic approach
D) Instrumental approach
3 All of the following are major trends behind the CSR phenomenon except:
A) sustainability
B) globalization
C) the failure of the private sector
D) knowledge
4 Corporations pursue operational efficiency through detailed monitoring of their bottom line in all of the following areas except:
A) ethical activities
B) financial performance
C) social activities
D) environmental activities
5 Which of the following is one of the newest and increasingly questionable practices in the world of CSR?
A) Risk management and emergency preparedness
B) Water conservation
C) Greenhouse gas conscience
D) “Carbon neutral” operations
1 The owners of a corporation are typically a fragmented group consisting of all of the following, except:
A) individual public shareholders
B) the government
C) employees
D) other companies
2 Who is responsible for overseeing the financial reporting process of an organization?
A) The board of directors
B) The audit committee
C) The frontline managers
D) The compensation committee
3 What would be a negative consequence of merging the roles of the chief executive officer and the board of directors?
A) Extensive company knowledge
B) Efficiency
C) Ethical reasoning
D) Effectiveness
4 All of the following personalities received media coverage for corporate scandals, except:
A) Wagoner at General Motors
B) Lay at Enron
C) Scrushy at HealthSouth
D) Rigas at Adelphia Cable
5 Which of the following is NOT a question on Walter Salmon’s checklist to assess the quality of an organization’s board?
A) Are the insiders limited to the CEO, the COO, and the CFO?
B) Is your board the right size (15 to 20 members)?
C) Do you take the right measures to build trust among directors?
D) Are there three or more outside directors to every insider?
1 Under which area does the FCPA require corporations to fully disclose any and all transactions conducted with foreign officials and politicians, in line with the SEC provisions?
A) Prohibition
B) Disclosure
C) Exclusion
D) Prevention
2 All of the following are principles included in the DII, except:
A) Each company will have and adhere to a written code of business ethics and conduct
B) Each company will create a free and open atmosphere that allows and encourages employees to report violations of its code to the company without fear of retribution for such reporting
C) Each company has the responsibility to live by the standards to increase investors’ confidence in the defense industry
D) Each company must have public accountability for its commitment to these principles
3 Which of the following is NOT a step in calculating a fine sentenced by the FSGO?
A) The culpability score
B) The total fine amount
C) The determination of the base fine
D) The determination of the mitigating factors
4 An effective compliance program includes all of the following, except:
A) Management oversight
B) Consistent discipline
C) Coercive action
D) Compliance with standards and procedures
5 All of the following are covered under Title II: Auditor Independence, except:
A) prohibits specific “nonaudit” services of public accounting firms as violations of auditor independence
B) requires the external auditor to report to the client’s audit committee on specific topics
C) requires auditors to disclose all other written communications between management and themselves
D) requires audit committees to be independent and undertake specified oversight responsibilities
1 Who was the CEO of Enron when Sherron Watkin’s blew the whistle?
A) Joseph Berardino
B) Jeffery Skilling
C) Bernard Ebbers
D) Kenneth Lay
2 Whistle-blowing is ethical under all of the following conditions, except:
A) when the motivation is financial gain
B) when the employee identifies a serious threat of harm
C) when the company will cause serious and considerable harm to the public
D) when the employee’s immediate supervisor does not act, and the internal procedures and chain of command have been exhausted
3 All of the following women were recognized by Times magazine as a “Person of the Year,” except:
A) Martha Jenkins
B) Cynthia Cooper
C) Coleen Rowley
D) Sherron Watkins
4 Congress took an integrated approach to the matter of whistle-blowing by prohibiting retaliation against whistleblowers and encouraging the act of whistle-blowing under which act?
A) The Sarbanes-Oxley Act
B) The Whistleblower Protection Act of 1989
C) False Claims Act of 1963
D) Federal Sentencing Guidelines Act
5 Given the new legal environment surrounding whistleblowers, employers would be wise to put all of the following mechanisms in place, except:
A) a detailed report of all investigations, documenting all corporate officers involved and all actions taken
B) a well-defined process to document how such complaints are handled
C) an employee hotline to file such complaints
D) a prompt and thorough investigation of serious complaints
1 Which of the following has NOT changed with our work environment over the last two decades?
A) Desktop computers
B) Instant messaging
C) The World Wide Web
D) Face-to-face communication
2 Why has arriving at a satisfactory resolution of the opposing arguments surrounding electronic monitoring proven to be difficult?
A) Both sides are unwilling to negotiate the issue
B) Employers view electronic monitoring as a necessity to preserve the interests of their stakeholders
C) Employees feel their corporate culture will be negatively impacted
D) It has become increasingly difficult to determine precisely where work ends and where an employee’s personal life begins
3 Which of the following describes an “outbound telesales agent?”
A) Employees who phone other company employees at work to explain and offer their company’s services.
B) Employees who visit customers at their home with the aim of selling the company’s services.
C) Employees who phone customers at home with the aim of selling the company’s services.
D) Employees who visit large corporations with the goal of selling the company’s services.
4 What type of liability implies that a party may be held responsible for injury or damage even thought it was not actively involved in the incident?
A) Cyber
B) Vicarious
C) Associative
D) Mutual
5 All of the following are invasive tools used to monitor employees at the workplace, except:
A) keystroke loggers
B) GPS micro-chips
C) “smart” ID cards
D) video surveillance
1 Which of the following companies have NOT been in hot water for relying on the assumption that “what works here works there?”
A) E*Trade
B) Coca-Cola
C) Bacardi
D) Pepsi
2 All of the following are arguments advocates use to promote the downside of globalization, except:
A) developing countries are ravaged for their raw materials
B) globalization brings unprecedented improvements in wealth and standards of living
C) workers are exploited
D) corporations are free to take full advantage of less-restrictive legal environments
3 In the pursuit of profit and expansion, MNCs have been guilty of all of the following, except:
A) bribery
B) pollution
C) the promotion of human rights
D) questionable product quality
4 All of the following are principles of the Global Compact under the area of environment, except:
A) businesses should support a precautionary approach to environmental challenges
B) businesses should undertake initiatives to promote greater environmental responsibility
C) businesses should encourage the development and diffusion of environmentally friendly technologies
D) businesses should work against all forms of corruption
5 The OECD guidelines promote principles and standards of behavior in the all of the following areas, except:
A) finance
B) human rights
C) labor relations
D) consumer protection
1 Which of the following is NOT a stage in creating a long-lasting ethical culture?
A) Follow the competitors
B) Establish a code of ethics
C) Hire an ethics officer
D) Promote your organizations commitment to ethical behavior
2 Which of the following is NOT a consideration in creating a code of ethics from scratch?
A) Get endorsement from management from various levels
B) Find a champion
C) Pick a well-tested model
D) Try it out first
3 According to the Ethics and Compliance Officers Association survey, which of the following did not rank in the top five as the main responsibilities of an ethics officer?
A) Training design
B) Organization-wide communications
C) Oversight of hotline/guideline/internal reporting
D) Conducting investigations of wrongdoing
4 All of the following are examples of rewards for successful behavior, except:
A) awarding prizes for ethical behavior, which the employee chooses
B) celebration of good ethical behavior in the company newsletter
C) declaration an Ethics Day and allowing every department to share their success
D) awarding prizes to any employee who finds unethical behavior within the organization
5 Which of the following terms describes the characteristic of public commitment to the highest level of professional standards and then sticking to that commitment?
A) Organizational integrity
B) Business ethics
C) Utilitarianism
D) Proactive ethics

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