Business Ethics Exam 2 Practice Qs

Which of the following is an example of reciprocity in business?

A. Paying employees the minimum wage regardless of effort

B. A company offering profit-sharing and generous benefits to employees

C. Discriminating based on gender for a higher salary

D. Lying to customers about a product's capabilities

B

An individual who emphasizes others rather than themselves in making decisions is in which of Kohlberg's stages of development?

A. Universal ethical principles (Stage 6)

B. Mutual interpersonal expectations, relationships, and conformity (Stage 3)

C. Social system and conscience maintenance (Stage 4)

D. Punishment and obedience (Stage 1)

B

Which of the following is a violation of ethical corporate intelligence practices?

A. Using public sources such as press releases to gather competitive intelligence

B. Interviewing job applicants to learn about competitors' strategies

C. Using a proxy to gather confidential pricing information from a competitor

D. Monitoring competitors' social media to gain insights into their marketing strategies

C

Which of the following is one of the three criteria that must be met to constitute a hostile work environment?

A. Misconduct must be prevalent

B. The manager must be directly involved

C. The conduct was unwelcome

D. Discrimination must be proven

C

What is the primary purpose of an ethical decision-making model in business?

A. To provide a step-by-step guide to ethical decisions

B. To help individuals make informed ethical decisions

C. To determine if a decision is ethical or unethical

D. To eliminate all ethical dilemmas in business

B

What is one way to determine whether a specific business situation has an ethical component?

A. By measuring the company's financial success

B. By asking other individuals in the business how they feel about it

C. By ensuring that the business adheres to legal regulations only

D. By making sure the situation is covered in the media

B

Optimization is defined as which of the following?

A. The quality of being just, equitable, and impartial

B. A trade-off between equity and efficiency

C. An interchange of giving and receiving in social relationships

D. How wealth or income is distributed between employees within a company

B

Those who have influence in a work group and provide advice and information in both formal and informal ways are related to which of the following concepts?

A. External control

B. Internal control

C. Significant others

D. Institutional theory

C

Which of the following best describes a dual relationship?

A. Any repeated, unwanted behavior of a sexual nature perpetrated upon one individual by another

B. A sexual relationship between an employee and their immediate superior

C. A relationship in which both parties consented but then one party later claims sexual harassment

D. A personal, loving, and/or sexual relationship with someone with whom you share professional responsibilities

D

A manager decides to disclose product defects to a client, valuing honesty and ethical behavior above personal gain. Which moral philosophy best aligns with this decision?

A. Teleology

B. Enlightened Egoism

C. Virtue Ethics

D. Relativism

C

A manager at a company observes that several employees use their work computers for personal tasks, such as shopping and watching videos during work hours. The manager decides to implement a stricter policy to limit personal use. Which of the following actions best aligns with the approach taken by Coca-Cola in managing personal use of company resources?

A. Ban all personal use of company computers and phones during work hours

B. Set clear guidelines that allow personal use only during lunch breaks and after work hours

C. Allow personal use of company resources if it does not interfere with work responsibilities

D. Encourage employees to use their personal devices instead of company resources for personal tasks

C

A company is deciding whether to switch from using single-use plastic bags to paper bags. Applying the principles of moral philosophy, which action reflects a balanced approach to ethical decision-making?

A. Choosing materials with minimal environmental impact over their full lifecycle

B. Choosing the option that reduces production costs the most

C. Banning plastic bags outright to appeal to environmentally conscious consumers

D. Using both plastic and paper bags to provide customers with more choices

A

In the form of industry standards, normative business ethics considers which of the following types of reality outside the legal realm?

A. Descriptive

B. Political

C. Social

D. Economic

B

Which moral perspective defines ethical behavior subjectively from the unique experiences of individuals and groups?

A. Virtue Ethics

B. Egoism

C. Relativist Perspective

D. Absolutism

C

Which of the following is an example of a gray area that could be considered an ethical issue in a business environment?

A. Employees choosing to follow safety protocols

B. A company paying employees on time

C. A small gift given to a client that could be perceived as a bribe

D. A firm providing excellent customer service

C

A business executive decides to establish an ethics program, despite no immediate legal requirement, because they believe it will enhance the company's reputation and contribute to a better society. This decision is best categorized under which cognitive moral development system?

A. Stage 2: Individual Instrumental Purpose and Exchange

B. Stage 4: Social System and Conscience Maintenance

C. Stage 5: Prior Rights, Social Contract, or Utility

D. Stage 6: Universal Ethical Principles

C

In applying the value of fairness, which of the following actions would be considered unethical?

A. Hiring the most qualified candidate

B. Discriminating based on race, gender, or religion

C. Rewarding employees for hard work

D. Treating all employees equally

B

What is the primary factor in business decisions that differentiates them from personal decisions?

A. Stakeholder Expectations

B. Corporate Culture

C. Profit Motive

D. Legal Requirements

C

An organization faces high competition in its industry and resorts to patent infringement. What ethical consideration does this situation highlight?

A. Political Compliance

B. Social Fairness

C. Economic Pressure

D. Religious Influence

C

A production manager is faced with the decision of whether to inform employees of impending layoffs, knowing that doing so might affect productivity. Applying the concepts of moral philosophy, which of the following considerations best illustrates an ethical dilemma the manager must navigate?

A. Maximizing short-term profit by keeping layoffs secret

B. Ensuring workers remain productive without disruption

C. Balancing the moral principle with the business objectives

D. Prioritizing shareholder satisfaction over employee morale

C

An activity is probably ethical if which of the following is true?

A. It is approved of by most members of an organization

B. It is approved of by no one in the organization

C. It is customary in the industry

D. It does not violate any laws

A

How do white-collar criminals typically exploit their positions?

A. By using physical force to coerce victims

B. By manipulating trust and authority for personal or organizational gain

C. By relying on violent tactics to intimidate others

D. By avoiding legal boundaries through secrecy and deception

B

A corporate executive manipulates financial records to increase the company's stock price, resulting in personal profit. Which type of crime is this an example of?

A. Cybercrime

B. Money Laundering

C. White-collar Crime

D. Organized Crime

C

Which of the following are used to obtain or retain business and are not generally considered illegal in the U.S.?

A. Facilitation Payments

B. Bribes

C. Gifts

D. Coercive Techniques

A

Which of the following best explains why it's important for organizations to have a strong ethics program in place?

A. It eliminates all ethical dilemmas within organizations

B. It helps employees understand the company's values and guidelines for ethical behavior

B

The belief that no one thing is intrinsically good is defined as:

A. Hedonism

B. Pluralism

C. Relativism

D. Deontology

B

If a company ignores normative considerations in decision-making, what risk does it face?

A. Higher profit margins

B. Better brand recognition

C. Damage to reputation

D. Faster product development

C

Which approach to business ethics emphasizes striving for ideals and values that promote social welfare?

A. Utilitarian Approach

B. Virtue Approach

C. Deontological Approach

D. Justice Approach

B

Which of the following are central to an organization and provide directions for action?

A. Core Values

B. Normative Approaches

C. Ethical Issues

D. Opportunities

A

In a workplace scenario, an employee falsifies their timecard to meet sales goals. What ethical issue does this scenario represent?

A. Misuse of company time

B. Giving or accepting bribes

C. Health and safety violations

D. Abuse of company resources

A

What is one potential impact of workplace bullying?

A. Increased job satisfaction

B. Reduced productivity due to psychological trauma

C. Improved employee engagement

D. Better team collaboration

B

Fairness in business is best described as:

A. Favoring one group over another

B. Discriminating based on religion

C. Being just, equitable, and impartial

D. Maximizing profits at any cost

C

According to Kohlberg's model, as a person progresses through the stages of moral development-- and with time, education, and experience--which of the following statements is true?

A. The individual is unlikely to change his/her values and ethical behavior

B. Cognitive moral development and behavior may change

C. The individual will likely be promoted

D. Significant others become more influential in ethical decision-making

B

How does effective leadership contribute to an ethical corporate culture?

A. By setting financial goals

B. By increasing profits

C. By shaping shared values for ethical behavior

D. By outsourcing compliance efforts

C

Which moral philosophy evaluates the morality of an action on the basis of principles or rules designed to promote the greatest overall utility rather than by examining situations individually?

A. Rule Utilitarianism

B. Act Utilitarianism

C. Rule Deontology

D. Act Deontology

A

What do instrumentalists reject?

A. The importance of intentions in decision-making

B. The separation between ends and means

C. The idea of intrinsic goodness

D. The pursuit of knowledge

B

Which of the following describes the situation when subordinates simply follow the directives of a superior without question, demonstrating the influence that workplace significant others can exert?

A. Obedience to authority

B. Locus of control

C. Opportunity

D. Transactional leadership

A

Which factors shape business ethics evaluations and decisions according to the organizational ethical decision-making framework?

A. Legal regulations

B. Ethical issue intensity

C. Competitor strategies

D. Market trends

B

Ava, a manager, follows a policy of terminating employees whose productivity declines for four consecutive months. When faced with Matthew's situation--a once high-performing employee who has struggled due to depression but is expected to recover--Ava decides not to fire him. Which stage of cognitive moral development does Ava's decision most closely align with?

A. Stage 1: Punishment and Obedience

B. Stage 3: Mutual Interpersonal Expectations, Relationships, and Conformity

C. Stage 4: Social System and Conscience Maintenance

D. Stage 6: Universal Ethical Principles

B

Which of the following can be defined as a set of values, norms, and artifacts, including ways of solving problems shared by members of an organization?

A. Corporate culture

B. Intentions of a corporation

C. Ethical issue awareness

D. Determination of a corporation

B

What is the relationship between stakeholder objectives and corporate core values?

A. Stakeholder objectives rarely align with corporate core values

B. Corporate core values ignore stakeholder objectives

C. Stakeholder objectives can sometimes align with corporate core values

D. Core values only apply to internal stakeholders

C

A new employee joins a company that frequently promotes questionable advertising practices. How should the employee approach this situation based on moral philosophy principles?

A. Immediately report the practices to the media

B. Adapt their values to fit the corporate culture

C. Consider the company's core values and decide on appropriate actions

D. Ignore the advertising practices

C

Instead of focusing on the results of actions and the happiness created by them, which of the following emphasizes the means and motives by which actions are justified?

A. Pragmatism theories

B. Obligation theories

C. Unitarianism theories

D. Goodness theories

B

Which type of fraudulent activity could involve a consumer staging an accident to seek damages?

A. Whacking

B. Duplicity

C. Guile

D. Defamation

B

In the past, bond rating agencies were paid by the organizations that they rated, so organizations would shop around for the agency that gave them the best rating. This led to the agencies being accused of having which of the following?

A. An Unfair Advantage

B. Excessively complicated systems

C. A hostile workplace

D. Conflicts of interest

D

External and internal rewards relate to which part of the ethical decision-making framework?

A. Individual factors

B. Significant factors

C. Opportunity

D. Obedience to authority

C

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

C

A manager is faced with a decision that involves both ethical and financial considerations. Using the ethical decision-making model, which of the following steps should the manager take first?

A. Immediately make a decision based on personal values

B. Consider the potential ethical intensity of the decision

C. Focus only on the financial implications of the decision

D. Discuss the situation with the CEO for immediate guidance

B

How organizational decision makers approach ethical issues relates to which of the following?

A. Normative approaches

B. Individual approaches

C. Descriptive approaches

D. Organizational approaches

C