Business Ethics: Decision Making for Personal Integrity & Social Responsibility 4th Edition Test ban
Topic: Ethics and the Law
76. Explain the difficulties associated with telling a business that its ethical responsibilities end with obedience to the law.
Telling a business that its ethical responsibilities end with obedience to the law is just inviting more legal regulation. The difficulty of trying to create laws to cover each and every possible business challenge would be enormous. The task would require such specificity that the number of regulated areas would become unmanageable.
Additionally, it was the failure of personal ethics among such companies as Enron and WorldCom, after all that led to the creation of the Sarbanes-Oxley Act and many other legal reforms. If business restricts its ethical responsibilities to obedience to the law, it should not be surprising to find a new wave of government regulations that require what were formerly voluntary actions.
AACSB: Analytical Thinking
AACSB: Ethics
Blooms: Understand
Difficulty: 1 Easy
Learning Objective: 01-05 Distinguish legal responsibilities from ethical responsibilities.
Topic: Ethics and the Law
77. Discuss the importance of precedents for most laws concerning business.
Most of the laws that concern business are based on past cases that establish legal precedents. Each precedent applies general rules to the specific circumstances of an individual case. In most business situations, asking "Is this legal?" is really asking "Are these circumstances similar enough to past cases that the conclusions reached in those cases will also apply here?" Since there will always be some differences between cases, the question will always remain somewhat open.
AACSB: Ethics
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-06 Explain why ethical responsibilities go beyond legal compliance.
Topic: Ethics and the Law
78. Define risk assessment.
Risk assessment is defined as a process to identify potential events that may affect the entity and manage risk to be within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives.
AACSB: Analytical Thinking
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-06 Explain why ethical responsibilities go beyond legal compliance.
Topic: Ethics and the Law
79. While using the risk assessment model, what might the decision makers include in their assessment before taking action?
Using the risk assessment model, decision makers might include in their assessment before taking action: • the likelihood of being challenged in court
• the likelihood of losing the case
• the likelihood of settling for financial damages
• a comparison of those costs
• the financial benefits of taking the action
• the ethical implication of the options available
AACSB: Ethics
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-06 Explain why ethical responsibilities go beyond legal compliance.
Topic: Ethics and the Law
80. Differentiate between practical reason and theoretical reason.
Practical reason is described as reasoning about what we should do, whereas theoretical reason involves reasoning about what we should believe.
AACSB: Ethics
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-07 Describe ethical decision making as a form of practical reasoning.
Topic: Ethics as Practical Reason
Chapter 01 Ethics and Business Summary
Category
# of Questions
AACSB: Analytical Thinking
37
AACSB: Ethics
67
Accessibility: Keyboard Navigation
55
Blooms: Remember
53
Blooms: Understand
27
Difficulty: 1 Easy
56
Difficulty: 2 Medium
23
Difficulty: 3 Hard
1
Learning Objective: 01-01 Explain why ethics is important in the business environment.
17
Learning Objective: 01-02 Explain the nature of business ethics as an academic discipline.
5
Learning Objective: 01-03 Distinguish the ethics of personal integrity from the ethics of social responsibility.
17
Learning Objective: 01-04 Distinguish ethical norms and values from other business-related norms and values.