Exam: 500616RR – Moral Philosophy and Business
1. Which of the following is a correct statement?
A. Etiquette is socially correct behavior.
B. Moral behavior must follow the standards of etiquette.
C. Rules of etiquette are moral in character.
D. Any professional code is also a moral code.
2. A person who is a(n) _______ would believe that market relations should be totally unrestricted.
D. ethical economist
3. Which of the following is a correct statement about divine command theory?
A. According to the divine command theory, an action is considered to be immoral because God has forbidden it.
B. According to the divine command theory, people are moral if they’re religiously faithful.
C. According to the divine command theory, all moral standards are decrees given directly by God.
D. According to the divine command theory, what God proclaims is absolutely, precisely, and inherently true.
4. Which one of the following statements about moral standards is not correct?
A. Moral standards relate to behavior of serious consequence in human life.
B. Moral standards take priority over all other standards, including self-interest.
C. Moral standards have priority over all other standards, except self-interest.
D. Moral standards are valid to the extent that the arguments for them are valid.
5. Inequalities can be justified only if they work to the advantage of the least advantaged group. According to John Rawls, this controversial idea is known as the _______ principle.
6. According to Professor V. R. Ruggiero, three common concerns that arise in the context of trying to make ethical decisions are ________, effects, and ideals.
7. Which of the following statements regarding conformity is correct?
A. Psychologist Solomon Asch’s experiments demonstrated the concept of groupthink.
B. According to Asch, people who conform are happier than nonconformists.
C. Evidence suggests that people strongly resist going along with others.
D. Evidence suggests that people are easily influenced to go along with others.
8. A government’s right to claim private property against the owner’s will is called the power of
A. social justice.
B. moral authority of government.
C. economic redistribution.
D. eminent domain.
9. When people with different interests are trying to find common ground for a moral decision, the first productive step would be
A. determining the motives of the participating parties.
B. deciding how to defend the group’s decision to upper-level management.
C. reaching an agreement on the facts that bear on the matter.
D. agreeing to disagree about moral standards in favor of endorsing the best available practical option.
10. The theory that what’s right is determined by what a society or culture says is right is known as
A. ethical relativism.
B. social diversity.
D. divine command theory.
11. According to Robert Nozick’s _______ theory, people may hold goods, money, and property, using and disposing of them as they wish, provided that they’re acquired fairly.
12. The theory of psychological egoism maintains that the sole motivator of human behavior is
A. personal self-interest.
C. immediate advantage.
D. collective self-interest.
13. Two friends are discussing the utilitarian moral philosophy. Sarah says that because utilitarians evaluate actions in terms of their outcomes, almost any action might be considered morally correct under some set
of circumstances. Eileen points out that utilitarians acknowledge that one can’t know the future consequences of one’s actions. Which of the following statements is correct?
A. Only Sarah is correct.
B. Only Eileen is correct.
C. Both are correct.
D. Neither one of the two is correct.
14. In Kant’s ethical philosophy, will (as the term applies to good will) is best described as
B. the human capacity to make voluntary decisions.
D. the human capacity to act from principle.
15. Among the four kinds of law, _______ is/are laws enacted by legislative bodies.
A. administrative regulations
C. constitutional law
D. common law
16. According to your textbook, a business may be defined as any organization that
A. requires labor.
B. creates good or services for human use.
C. distributes wealth.
D. offers goods or services for profit.
17. Critics of _______ argue that the philosophy ignores blatant wrongs such as theft or murder.
D. Kant’s moral theory
18. Which of the following statements about the libertarian view of justice and economic distribution is not correct?
A. Libertarians view liberty as freedom from interference by others.
B. Liberty takes priority over all other moral concerns.
C. Libertarians reject utilitarianism.
D. Libertarians are willing to restrict the liberty of some to promote the common good.
19. For economists, successive additions to a person’s income produce, on average, less happiness or satisfaction than did earlier additions. This theory is referred to as the
A. declining marginal utility of money.
B. difference principle of economy.
C. freedom from economic interference.
D. reverse maximization of happiness.
20. With respect to ethics, Albert Carr maintains that business has its own rules, some of which may not apply in other arenas of daily life. In short, he thinks of business ethics as
A. the rules of a game.
B. guided by religious belief.
C. a type of practical immorality.
D. a type of practical morality.
Exam: 500617RR – American Business and Its Basis
1. Expressing a broad view of corporate social responsibility, Professor Keith Davis maintains that social responsibility arises from
A. cultural values.
B. vested interests.
C. social power.
D. social status.
2. According to your textbook, a hybrid economic system that blends socialism and capitalism is called
A. public capitalism.
C. worker-controlled socialism.
D. free market socialism
3. You believe that pure laissez-faire capitalism may do little to prevent poverty, and may even foster it. According to your textbook, your views would make you a(n)
A. repudiator of the capitalist system.
B. moderate defender of capitalism
C. uncertain defender of capitalism.
D. extreme defender of capitalism.
4. Which of the following statements about changing work attitudes among Americans is correct?
A. Most Americans continue to believe that persistent hard work will lead to success.
B. As Americans become better educated they’re more likely to believe in the “American dream”.
C. In terms of expressed life priorities, Americans feel that work ranks just a little below having a great love life.
D. On average, Americans work more hours per week than their counterparts in countries like Japan or France.
5. In his masterwork, An Inquiry into the Nature and Causes of the Wealth of Nations, Adam Smith asserted that the human inclination to self-interest that leads to the increased good of the whole is naturally
A. the profit motive.
B. moral sensibility.
6. Anna and Beatrice are discussing the positions adopted by economist Milton Friedman. Anna says that because corporate executives are selected by shareholders, their primary corporate responsibility must be to shareholders. Beatrice says that when executives spend corporate earnings for “social” purposes, they’re imposing a tax on shareholders and have become “civil servants.” Which of the following statements is correct?
A. Both Anna and Beatrice are correct.
B. Only Anna is correct.
C. Neither Anna nor Beatrice is correct.
D. Only Beatrice is correct.
7. “I believe in corporations. They are indispensable instruments of our modern civilization; but I believe that they should be so supervised and so regulated that they shall act for the interests of the community as
a whole.” Who said this?
A. John Kenneth Galbraith
B. Robert Reich
C. Bill Clinton
D. Theodore Roosevelt
8. Dale and Scott are debating the importance of America’s trade deficit. Dale points out that the value of American imports is now about twice the value of the nation’s exports. Scott maintains that all economists now agree that the U.S. trade deficit is leading toward unsustainable global imbalances. Which of the following statements is correct?
A. Only Scott is correct.
B. Both Dale and Scott are correct.
C. Only Dale is correct.
D. Neither Dale nor Scott is correct.
9. In the United States, a general trend toward the corporate organization of businesses began
A. under the influence of Elizabeth I.
B. under the influence of Alexander Hamilton after 1800.
C. after the Civil War.
D. with the corporate charters that identified the various colonies.
10. According to your textbook, capitalism controls the means of production and distribution through
A. public ownership in private hands.
B. public welfare and private profit.
C. free market socialism
D. private ownership.
11. A corporation’s members are financially liable for corporate debts only up to the extent of their investments. This concept is known as
A. limited liability.
B. social responsibility.
C. corporate responsibility.
D. institutionalized ethics.
12. Craig and Karen are discussing the relationship of ethical codes and economic efficiency. Craig, taking the position of economist Milton Friedman, argues that businesses should be concerned primarily with profits. Karen, taking the position of economist Kenneth Arrow, argues that under certain conditions, the goal of maximizing profits is socially inefficient. Which of the following statements is correct?
A. Only Karen is correct.
B. Only Craig is correct.
C. Neither Craig nor Karen is correct.
D. Both Craig and Karen are correct.
13. You would most properly associate Cornelius Vanderbilt, Cyrus McCormick, and John D. Rockefeller with the rise of _______ capitalism.
14. Which of the following describes the pattern of shared values and beliefs in a corporation that gives members meaning and that provides them with rules for behavior?
A. Corporate longevity
B. Corporate strategy
C. Corporate tactics
D. Corporate culture
15. If you agree with the position of economist Kenneth Arrow, you would say that
A. it’s profitable for buyers and sellers to have the same level of information.
B. businesses should be concerned primarily with profits.
C. maximizing profits is often socially inefficient.
D. businesses are ethically entitled to externalize social costs.
16. Under changes in management policy, Sears instituted work quotas and a high-pressure environment that encouraged employees to mislead customers into purchasing unneeded services. This case helps us understand the ethical and moral significance of corporate
17. According to Karl Marx, the separation of individuals from the objects they create is known as worker
18. If you reject a narrow view of corporate fiduciary responsibility, you would agree that corporations have
A. responsibilities to all those who are impacted by their actions.
B. no necessary good-faith responsibility to any stakeholders.
C. a primary responsibility to shareholders.
D. a primary responsibility to employees, not shareholders.
19. According to Adam Smith, the human disposition to trade and barter leads to the _______ of labor,
which in turn is the primary means for increasing economic productivity.
20. Within a modern corporate organization, individual responsibility tends to vanish
A. because no one in an organization has any sense of moral responsibility.
B. because of the actions of a few “bad apples.”
C. due to a diffusion of responsibility.
D. as a result of public apathy.
Exam: 500618RR – Business and Society
1. Nature can have value in and of itself, apart from human beings and their interests. This statement illustrates
A. natural humanism.
B. radical naturism.
C. the ecological principle of interconnectedness.
D. the naturalistic ethic.
2. Which of the following statements about consumer safety is correct?
A. In the United States, no products can go to market without regulation.
B. The Consumer Product Safety Commission has the power to order recalls.
C. Statistics show that safety regulations rarely succeed in increasing safety.
D. Critics exaggerate the cost of safety regulations and product recalls.
3. For years, the Bayer company advertised that its aspirin tablets contained “the ingredient doctors recommend most.” The ingredient that’s referred to is, in fact, aspirin. This advertisement is an example of
C. psychological appeals.
D. concealed facts.
4. The idea that laws may justifiably be used to restrict the freedom of others for their own good is called
B. judicial discretion.
C. judicial determinism.
D. legal paternalism.
5. One result of the Kyoto Protocol has been the emergence of a global market for the trade of
A. carbon-emission credits.
B. old-growth hardwoods.
C. water rights.
D. endangered species.
6. According to the legal doctrine of strict product liability,
A. consumers must assume all risks whenever they buy products.
B. the producer of a product is responsible for any injury the consumer suffers.
C. product liability presupposes negligence by more than one party.
D. a manufacturer need not be negligent to be held liable for a defective product.
7. In the __________ view, ecological responsibility to future generations is aimed at maximizing total human happiness through time.
8. The United States represents about 4.6 percent of the world’s population, but uses _______ of the world’s refined oil.
A. 30 percent
B. 60 percent
C. 2 percent
D. 90 percent
9. Which of the following terms describes the science of the interrelationships of organisms and their environment?
C. Environmental protection
D. Pollution control
10. Which of the following statements correctly describes John Kenneth Galbraith’s “dependence effect?”
A. Production depends upon the wants of consumers.
B. Advertising depends on consumerism.
C. Advertising depends on the wants of consumers.
D. Advertising is used to shape consumer wants.
11. In your textbook, all of the following are discussed as specific methods for achieving environmental goals, except
B. state and federal regulations.
C. creating externalities.
D. pricing mechanisms.
12. An interdependent natural community that includes both living and nonliving entities is called a(n)
B. natural region.
C. inhabited region.
13. Today, in deciding whether an advertisement is deceptive or not, the Federal Trade Commission follows the
A. pure consumer standard.
B. reasonable consumer standard.
C. informed consumer standard.
D. “modified” ignorant consumer standard.
14. In 1916, the case of MacPherson v. Buick Motor Car changed product liability law by
A. adopting the principle of caveat emptor.
B. permitting consumers to sue manufacturers with whom they had no contractual relationships.
C. permitting consumers to sue the retailer from whom they had purchased a product.
D. adopting the principle of strict liability.
15. Puffery, the use of superlative and subjective praise in advertisements, is an example of which of the following misleading advertising techniques?
A. Concealed facts
C. Psychological appeals
16. If the government gives companies a tax break for purchasing and using pollution-control equipment, the government is providing an economic _______ to use the equipment.
A. pricing mechanism
17. In the United States, the federal agency that’s responsible for policing the marketing process from manufacture to final sale is the
A. Consumer Product Safety Commission.
B. Securities and Exchange Commission.
C. Fair Packaging and Labeling Commission.
D. Federal Drug Administration Agency.
18. In advertising, all of the following are considered to be examples of labeling or packaging deceptions, except
A. illusions due to package size or shape.
B. omitting corporate logos.
C. an “economy size” package that actually costs more than regular packages.
D. raising prices in higher-income areas.
19. In a well-known case, Toys “R” Us threatened not to buy toys from any manufacturer who sold toys to a cost-cutting competitor. This illegal practice is known as
A. price gouging.
B. advertising ambiguity.
C. price fixing.
D. concealed facts.
20. Some sellers are exploiting a short-term situation in which buyers have few purchase options. The sellers are unnecessarily raising the price of an item. These sellers are engaging in price
Exam: 500619RR – The Organization and the People in It
1. When an employment decision is based on a person’s membership in a particular group, rather than on individual merit, the situation is known as
A. sexual harassment.
B. job stereotyping.
C. job discrimination.
D. institutional prejudice.
2. According to the principle of _______, employers may hire, fire, promote, or demote any employee for whatever reason the employer wishes, and at any time.
A. employment at will (EAW)
3. Jamison Brothers Concrete wants to land a contract with Owens Construction to become the primary supplier of concrete for a shopping mall project. Todd Jamison gets together with Martina Owens, and a deal is struck. Jamison will get the contract. However, for every invoice remittance to Jamison, five percent
of the amount due will be deposited in a safety deposit box at Martina’s bank, in cash. If Martina agrees to this inducement, she will be accepting a(n)
B. trade secret.
C. insider trade.
4. Which of the following statements about the Foreign Corrupt Practices Act of 1977 is correct?
A. The act fails to prohibit the creation of corporate slush funds.
B. The act merely provides auditing services to companies doing business overseas.
C. The act doesn’t prohibit grease payments to petty clerical or administrative officials.
D. The act is concerned with the bribery of foreign officials, but doesn’t define kickbacks.
5. Executives at Lowell Industries monitor employee phone calls, e-mails, and voice mail. However, no such monitoring of executives is permitted. Which of the following moral philosophers would consider this inequity to be a violation of a basic moral principle?
A. Immanuel Kant
B. Jeremy Bentham
C. Robert Nozick
D. Milton Friedman
6. A formula, ingredient, or technique that gives a company an advantage over its competitors is known as a
A. legally unprotected process.
B. registered trade mark.
D. trade secret.
7. The Sarbanes-Oxley Act of 2002 offers legal protection for employees who report _______ to the SEC.
A. securities fraud
B. kickbacks and bribes
C. environmental violations
D. sexual harassment
8. President John F. Kennedy’s 1961 Executive Order 10925 became historically notable for having first used the term
A. “racial desegregation.”
B. “equal pay for equal work.”
C. “affirmative action.”
D. “age discrimination.”
9. When a company is gathering information from job applicants, the term “_______ consent” implies that an employee would voluntarily take a personality or polygraph test and be fully aware of the consequences of taking the test.
10. When a job is broken down into repetitive tasks that are repeated thousands of times per day, workers are most likely to suffer from
A. cancerous tumors.
B. cuts and burns.
C. eye injuries.
D. musculoskeletal injuries.
11. In general, you would be justified in blowing the whistle on your company if
A. your action is based on a sound moral principle.
B. you’ve bypassed all internal channels and gone directly to a regulatory agency with your evidence.
C. your action has no real chance of success, but you feel it’s a matter of principle.
D. you can’t point to specific misconduct, but you suspect harmful effects related to particular activities.
12. Which of the following statements about the workplace and child-care policies in the United States is correct?
A. The United States views child care as a national responsibility.
B. In the United States, employers make few or no provisions for child care.
C. The United States is number one in the world when it comes to providing child care for workers.
D. The United States doesn’t publicly subsidize child care.
13. Drug testing of employees is not considered to violate privacy when it’s relevant to the
A. state law.
B. moral imperative.
C. employment contract.
D. greater good.
14. When you’re hired to work for a company, the traditional law of _______ requires you to act loyally and to carry out all lawful instructions from your company.
C. employment ethics
15. Jeff and Maria are discussing the concept of privacy. Maria says that privacy is an absolute value that’s described and protected in the U.S. Constitution. Jeff says that there’s no consensus among lawyers or philosophers as to how to define privacy. Which of the following statements is correct?
A. Only Maria is correct.
B. Both Jeff and Maria are partly correct.
C. Neither Jeff nor Maria is correct.
D. Only Jeff is correct.
16. Which of the following statements about insider trading is not correct?
A. Insider traders normally defend their activities as being harmless to others.
B. Insider trading can harm outside investors who don’t know what the insider knows.
C. A person who doesn’t personally profit from insider trading has still crossed a moral line.
D. As a rule, insider trading based on nonpublic information directly harms others.
17. In a corporate campaign, a union enlists the assistance of a company’s _______ to pressure the company into negotiations over labor concerns.
18. Which management style proposes that employees like work and see it as natural and rewarding?
A. Theory Z
B. Theory X
C. Theory Y
D. Theory W
19. In an employment situation, the practice of showing favoritism to relatives and close friends is called
20. Which of the following statements about the Wagner Act of 1935 is correct?
A. The act prohibited hiring discrimination based on race, creed, gender, or ethnicity.
B. The act outlawed the practice of requiring workers to join a union upon being hired by a company represented by a union.
C. The act upheld the position that unions had an inherent right to organize.
D. The act upheld the common-law standard for employee loyalty to the employer.