Business Ethics: Decision Making for Personal Integrity & Social Responsibility 4th Edition Test ban
Chapter 01 Ethics and Business Key
True / False Questions
1. Ethical decision making in business is limited to major corporate decisions with dramatic social consequences.
FALSE
Ethical decision making in business is not at all limited to major corporate decisions with dramatic social consequences. At some point, every worker, and certainly everyone in a management role, will be faced with an issue that will require ethical decision making.
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Explain why ethics is important in the business environment.
Topic: Introduction: Making the Case for Business Ethics
2. In business, every decision can be covered by economic, legal, or company rules and regulations.
FALSE
At some point, every worker, and certainly everyone in a managerial role, will be faced with an issue that will require ethical decision making. Not every decision can be covered by economic, legal, or company rules and regulations.
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Explain why ethics is important in the business environment.
Topic: Introduction: Making the Case for Business Ethics
3. Due to the high incidence of corporate frauds today, the direct costs of unethical business practice are less visible now than they have ever been before.
FALSE
The direct costs of unethical business practice are more visible today than perhaps they have ever been before. The first decade of the new millennium has been riddled with highly publicized corporate scandals, the effects of which did not escape people of any social or income class.
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Explain why ethics is important in the business environment.
Topic: Introduction: Making the Case for Business Ethics
4. In a general sense, a business stakeholder is one who has made substantial financial investments in the business.
FALSE
In a general sense, a business stakeholder will be anyone who affects or is affected by decisions made within the firm, for better or worse.
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-01 Explain why ethics is important in the business environment.
Topic: Introduction: Making the Case for Business Ethics
5. A firm's ethical reputation can provide a competitive advantage in the marketplace with customers, suppliers, and employees.
TRUE
A firm's ethical reputation can provide a competitive edge in the marketplace with customers, suppliers, and employees.
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Understand
Difficulty: 2 Medium
Learning Objective: 01-01 Explain why ethics is important in the business environment.
Topic: Introduction: Making the Case for Business Ethics
6. The Grayson-Himes Pay for Performance Act was passed to amend the executive compensation provisions of the Emergency Economic Stabilization Act of 2008.
TRUE
The Grayson-Himes Pay for Performance Act was passed "to amend the executive compensation provisions of the Emergency Economic Stabilization Act of 2008 to prohibit unreasonable and excessive compensation and compensation not based on performance standards."
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-01 Explain why ethics is important in the business environment.
Topic: Introduction: Making the Case for Business Ethics
7. Ethics refers to how human beings should properly live their lives.
TRUE
Ethics refers not only to an academic discipline, but to that arena of human life studied by this academic discipline, namely, how human beings should properly live their lives.
AACSB: Ethics
Accessibility: Keyboard Navigation
Blooms: Remember
Difficulty: 1 Easy
Learning Objective: 01-02 Explain the nature of business ethics as an academic discipline.
Topic: Business Ethics as Ethical Decision Making
8. Ethical business leadership is the skill to create a work environment that helps employees guiltlessly embrace their own good and bad facets.