Test Bank For Business Ethics Ethical Decision Making and Cases 13th Edition

1. An ethical issue is defined as a problem, situation, or opportunity that _______.

  a.  has no correct answer

  b.  harms the environment

  c.  requires society as a whole to choose among several actions that must be evaluated as right or wrong

  d.  requires an individual, group, or organization to choose among several actions that must be evaluated as right or wrong, ethical or unethical

  e.  is a trade-off between equity and efficiency

ANSWER:   d

POINTS:   1

DIFFICULTY:   Moderate

REFERENCES:   5-3 Emerging Ethical Issues and Dilemmas in Business

QUESTION TYPE:   Multiple Choice

HAS VARIABLES:   False

LEARNING OBJECTIVES:   BE.FERR.13.ChO.05.03 – Delineate misuse of company resources, abusive and intimidating behavior, lying, conflicts of interest, bribery, corporate intelligence, discrimination, sexual harassment, fraud, consumer fraud, financial misconduct, and insider trading

NATIONAL STANDARDS:   United States – BUSPROG: Ethics – Ethics

STATE STANDARDS:   United States – None – DISC: Ethical Responsibilities – Ethical Responsibilities

DATE CREATED:   8/11/2021 3:14 PM

DATE MODIFIED:   8/11/2021 3:17 PM

2. Insider trading can be defined as which of the following?

  a.  The practice of offering something (often money) in order to gain an illicit advantage from someone in authority

  b.  The collection and analysis of information on markets, technologies, customers, and competitors, as well as on socioeconomic and external political trend

  c.  The process of dishonestly creating, distributing, promoting, and pricing products

  d.  Exaggerated advertising, blustering, and boasting upon which no reasonable buyer would rely

  e.  The buying or selling of stocks by insiders who possess information that is not yet public

ANSWER:   e

POINTS:   1

DIFFICULTY:   Easy

REFERENCES:   5-3 Emerging Ethical Issues and Dilemmas in Business

QUESTION TYPE:   Multiple Choice

HAS VARIABLES:   False

LEARNING OBJECTIVES:   BE.FERR.13.ChO.05.03 – Delineate misuse of company resources, abusive and intimidating behavior, lying, conflicts of interest, bribery, corporate intelligence, discrimination, sexual harassment, fraud, consumer fraud, financial misconduct, and insider trading

NATIONAL STANDARDS:   United States – BUSPROG: Ethics – Ethics

STATE STANDARDS:   United States – None – DISC: Ethical Responsibilities – Ethical Responsibilities

DATE CREATED:   8/11/2021 3:17 PM

DATE MODIFIED:   8/11/2021 3:19 PM

3. Which of the following is an important element of virtue and is defined as being whole, sound, and in an unimpaired condition?

  a.  Optimization

  b.  Ethical issue

  c.  Honesty

  d.  Trust

  e.  Integrity

ANSWER:   e

POINTS:   1

DIFFICULTY:   Easy

REFERENCES:   5-2 Foundational Values for Identifying Ethical Issues

QUESTION TYPE:   Multiple Choice

HAS VARIABLES:   False

LEARNING OBJECTIVES:   BE.FERR.13.ChO.05.02 – Examine ethical issues as they relate to the basic values of honesty, fairness, and integrity

NATIONAL STANDARDS:   United States – BUSPROG: Ethics – Ethics

STATE STANDARDS:   United States – None – DISC: Ethical Responsibilities – Ethical Responsibilities

DATE CREATED:   8/11/2021 3:19 PM

DATE MODIFIED:   8/11/2021 3:22 PM

4. A secret agreement between two or more parties for a fraudulent, illegal, or deceitful purpose is known as _______.

  a.  optimization

  b.  insider trading

  c.  collusion

  d.  a dilemma

  e.  a conflict of interest

ANSWER:   c

POINTS:   1

DIFFICULTY:   Moderate

REFERENCES:   5-1 Recognizing an Ethical Issue (Ethical Awareness)

QUESTION TYPE:   Multiple Choice

HAS VARIABLES:   False

LEARNING OBJECTIVES:   BE.FERR.13.ChO.05.01 – Define ethical issues in the context of organizational ethics

NATIONAL STANDARDS:   United States – BUSPROG: Ethics – Ethics

STATE STANDARDS:   United States – None – DISC: Ethical Responsibilities – Ethical Responsibilities

DATE CREATED:   8/11/2021 3:23 PM

DATE MODIFIED:   8/11/2021 3:24 PM

5. When an employee sorts through a competing business’s trash to see if there are any documents that could reveal secret information, this is an example of a misuse of which of the following?

  a.  An ethical issue

  b.  Corporate intelligence

  c.  Collusion

  d.  Puffery

  e.  A moral attribute

ANSWER:   b

POINTS:   1

DIFFICULTY:   Easy

REFERENCES:   5-3 Emerging Ethical Issues and Dilemmas in Business

QUESTION TYPE:   Multiple Choice

HAS VARIABLES:   False

LEARNING OBJECTIVES:   BE.FERR.13.ChO.05.03 – Delineate misuse of company resources, abusive and intimidating behavior, lying, conflicts of interest, bribery, corporate intelligence, discrimination, sexual harassment, fraud, consumer fraud, financial misconduct, and insider trading

NATIONAL STANDARDS:   United States – BUSPROG: Ethics – Ethics

STATE STANDARDS:   United States – None – DISC: Ethical Responsibilities – Ethical Responsibilities

DATE CREATED:   8/11/2021 3:24 PM

DATE MODIFIED:   8/11/2021 3:25 PM

6. Issues related to fairness and honesty may arise because business is often regarded as which of the following?

  a.  A legal case where everything must be done to the letter of the law

  b.  A contest with the most ethical firm “winning”

  c.  A guerilla war where businesses seek to destroy each other

  d.  A game governed by its own rules rather than those of society

  e.  A game governed by social values

ANSWER:   d

POINTS:   1

DIFFICULTY:   Moderate

REFERENCES:   5-2 Foundational Values for Identifying Ethical Issues

QUESTION TYPE:   Multiple Choice

HAS VARIABLES:   False

LEARNING OBJECTIVES:   BE.FERR.13.ChO.05.02 – Examine ethical issues as they relate to the basic values of honesty, fairness, and integrity

NATIONAL STANDARDS:   United States – BUSPROG: Ethics – Ethics

STATE STANDARDS:   United States – None – DISC: Ethical Responsibilities – Ethical Responsibilities

DATE CREATED:   8/11/2021 3:32 PM

DATE MODIFIED:   8/11/2021 3:34 PM

7. War metaphors are common in business. Why can this kind of mindset be dangerous for business leaders?

  a.  Because it may lead executives to become violent

  b.  Because it may foster the idea that anything is acceptable in business

  c.  Because it results in organizations that are not profitable

  d.  Because it encourages executives to commit blatantly illegal actions

  e.  Because business is more like a game than a war

ANSWER:   b

POINTS:   1

DIFFICULTY:   Easy

REFERENCES:   5-2 Foundational Values for Identifying Ethical Issues

QUESTION TYPE:   Multiple Choice

HAS VARIABLES:   False

LEARNING OBJECTIVES:   BE.FERR.13.ChO.05.02 – Examine ethical issues as they relate to the basic values of honesty, fairness, and integrity

NATIONAL STANDARDS:   United States – BUSPROG: Ethics – Ethics

STATE STANDARDS:   United States – None – DISC: Ethical Responsibilities – Ethical Responsibilities

DATE CREATED:   8/11/2021 3:34 PM

DATE MODIFIED:   8/11/2021 3:35 PM

8. Conflicts of interest arise when an individual must choose between which of the following?

  a.  To advance their own personal interests, those of the organization, or those of some other group

  b.  To advance the interests of the organization or those of society

  c.  To communicate in ways that deceive, manipulate, or conceal facts in order to harm others or to be honest

  d.  To carry out an assignment they perceive to be unethical or to act ethically

  e.  To report an unethical coworker to internal leadership or outside authorities

ANSWER:   a

POINTS:   1

DIFFICULTY:   Easy

REFERENCES:   5-3 Emerging Ethical Issues and Dilemmas in Business

QUESTION TYPE:   Multiple Choice

HAS VARIABLES:   False

LEARNING OBJECTIVES:   BE.FERR.13.ChO.05.03 – Delineate misuse of company resources, abusive and intimidating behavior, lying, conflicts of interest, bribery, corporate intelligence, discrimination, sexual harassment, fraud, consumer fraud, financial misconduct, and insider trading

NATIONAL STANDARDS:   United States – BUSPROG: Ethics – Ethics

STATE STANDARDS:   United States – None – DISC: Ethical Responsibilities – Ethical Responsibilities

DATE CREATED:   8/11/2021 4:01 PM

DATE MODIFIED:   8/11/2021 4:02 PM