Test Bank For Business Ethics Ethical Decision Making Cases 12th Edition

Test Bank for Business Ethics: Ethical Decision Making & Cases, 12th Edition
Test Bank for Business Ethics: Ethical Decision

Making & Cases, 12th Edition
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1. Moral philosophy refers to
a. values developed in an organizational environment.
b. the morality of business activities.
c. the principles or rules that people use to decide what is right and wrong.
d. the legality of business activities.
e. the principles or rules that policymakers use to create legislation.
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 155
QUESTION TYPE: Multiple Choice
HAS VARIABLES: False
LEARNING OBJECTIVES: LO: 6-1 - Understand how moral philosophies and values influence individual and group
ethical decision making in business.
NATIONAL STANDARDS: United States - BUSPROG: Ethics
STATE STANDARDS: United States - None - DISC: Ethical Responsibilities - Ethical Responsibilities
KEYWORDS: Bloom's: Knowledge
DATE CREATED: 11/10/2017 10:23 AM
DATE MODIFIED: 11/10/2017 10:23 AM
2. Which moral philosophy evaluates the morality of an action on the basis of its consequences for everyone affected
(seeks the greatest good for the greatest number)?
a. Act deontology
b. Rule deontology
c. Egoism
d. Utilitarianism
e. Hedonism
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 158, Table 6-1, A Comparison of the Philosophies Used in Business Decisions
p. 159
LEARNING OBJECTIVES: LO: 6-2 - Compare and contrast the teleological, deontological, virtue, and justice
perspectives of moral philosophy
DATE CREATED: 11/10/2017 10:23 AM
3. This philosophy stipulates acts are morally right or acceptable if they produce some desired result, such as realization of
self-interest or utility.
a. Teleology
b. Deontology
Copyright Cengage Learning. Powered by Cognero. Page 1

c. The relativist perspective
d. Ethical formalism
e. Hedonism
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
p. 159
DATE CREATED: 11/10/2017 10:23 AM
4. Which moral philosophy focuses on the rights of individuals and on the intentions associated with a particular behavior,
rather than its consequences?
a. Deontology
b. The relativist perspective
c. Teleology
d. Egoism
e. Utilitarianism
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
p. 161
DATE CREATED: 11/10/2017 10:23 AM
5. _____ are person-specific, whereas _____ are based on decisions made by groups or when carrying out tasks to meet
business objectives.
a. Organizational factors; business ethics
b. Codes of conduct; individual factors
c. Individual factors; codes of conduct
d. Business ethics; moral philosophies

e. Moral philosophies; business ethics
ANSWER: e
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 155
KEYWORDS: Bloom's: Comprehension
DATE CREATED: 11/10/2017 10:23 AM
6. According to Kohlberg's model, as a person progresses through the stages of moral development, and with time,
education, and experience, he/she
a. is unlikely to change his/her values and ethical behavior.
b. may change his/her cognitive moral development and behavior.
c. will likely be promoted.
d. will depend more on the input of significant others in ethical decision making.
e. will experience less opportunity to behave unethically.
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 169-170
LEARNING OBJECTIVES: LO: 6-4 - Recognize the stages of cognitive moral development and its shortcomings
DATE CREATED: 11/10/2017 10:23 AM
7. An individual who defines what is right by considering his/her duty to society, not just to other specific people, is in
which of Kohlberg's stages of cognitive moral development?
a. Punishment and obedience
b. Individual instrumental purpose and exchange
c. Mutual interpersonal expectations, relationships, and conformity
d. Social system and conscience maintenance
e. Prior rights, social contract, or utility
ANSWER: d
POINTS: 1
DIFFICULTY: Moderate
REFERENCES: p. 170
DATE CREATED: 11/10/2017 10:23 AM
8. Which is the last of Kohlberg's stages of cognitive moral development?

a. Individual instrumental purpose and exchange
b. Need achievement
c. Social system and conscience maintenance
d. Punishment and obedience
e. Universal ethical principles
ANSWER: e
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 170
DATE CREATED: 11/10/2017 10:23 AM
9. A person who offers a facilitation payment in order to secure a contract that will keep her company from going
bankrupt and laying off hundreds of employees may be a(n) ________ because she is trying to secure the greatest good
for the greatest number of people.
a. egoist.
b. deontologist.
c. utilitarian.
d. relativist.
e. humanitarian.
ANSWER: c
POINTS: 1
DATE CREATED: 11/10/2017 10:23 AM
10. Which moral philosophy evaluates the morality of an action on the basis of its conformity to general moral principles
based on logic and respect for individual rights?
a. The relativist perspective
b. Act utilitarianism
c. Rule utilitarianism
d. Act deontology
e. Rule deontology
ANSWER: e
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 162
DATE CREATED: 11/10/2017 10:23 AM
11. _____ is considered the father of free market capitalism. He believed that business was and should be guided by the
morals of good men.
a. John Maynard Keynes
b. Immanuel Kant
c. Aristotle
d. Adam Smith
e. Lawrence Kohlberg
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 155
DATE CREATED: 11/10/2017 10:23 AM

12. _____ believe that no one thing is intrinsically good.
a. Hedonists
b. Pluralists
c. Relativists
d. Deontologists
e. Teleologists
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 158
DATE CREATED: 11/10/2017 10:23 AM
13. Kant's categorical imperative and the Golden Rule are examples of which moral philosophy?
a. Teleology
b. Deontology
d. Egoism
e. Utilitarianism
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 162
DATE CREATED: 11/10/2017 10:23 AM
14. A marketing manager who orders that a manufacturing plant be refitted to make it safer for workers, no matter what
the cost, may be a(n) _____ because he believes in the rights of all individuals.
a. egoist
b. utilitarian
c. deontologist
d. relativist
e. hedonist
ANSWER: c
POINTS: 1
REFERENCES: p. 161
LEARNING OBJECTIVES:LO: 6-2 - Compare and contrast the teleological, deontological, virtue, and justice
DATE CREATED: 11/10/2017 10:23 AM
15. 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
c. Rule deontology
d. Act deontology
e. Egoism
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 160
DATE CREATED: 11/10/2017 10:23 AM
16. Which moral philosophy evaluates the morality of an action on the basis of the equity, fairness, and impartiality of the
action, with rules serving as guidelines in the decision-making process?
a. Rule utilitarianism
c. Rule deontology
d. Act deontology
e. The relativist perspective
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 162
DATE CREATED: 11/10/2017 10:23 AM
17. Which moral perspective defines ethical behavior subjectively from the unique experiences of individuals and groups?
a. Virtue ethics
b. Egoism
d. Absolutism
e. Justice
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 163
DATE CREATED: 11/10/2017 10:23 AM
18. Through time, an act can come to be viewed as unethical under which of the following philosophies and perspectives?
b. Teleology
c. Deontology
d. Egoism
e. Rule deontology
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 163
DATE CREATED: 11/10/2017 10:23 AM
19. _____ typically focuses on the end result of actions and happiness created by them, whereas _____ emphasizes the
means and motives by which actions are justified.
a. Pragmatism; hedonism
b. Deontology; pragmatism
c. Utilitarianism; deontology
d. Utilitarianism; a goodness theory
e. A goodness theory; an obligation theory
ANSWER: e
POINTS: 1
DATE CREATED: 11/10/2017 10:23 AM
20. An individual who believes that an action is ethical because others within his or her company and industry regularly
engage in the activity is probably a(n)
a. utilitarian.
b. relativist.
c. teleologist.
d. deontologist.
e. egoist.
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 163
DATE CREATED: 11/10/2017 10:23 AM
21. Enlightened egoism
a. is when an individual puts spiritual feelings above all others.
b. centers completely on the short-term well-being of others.
c. centers on one's short-term self-interest.
d. centers on one's long-term self-interest but takes others’ well-being into account.
e. centers on the long-term well-being of others.
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 159
DATE CREATED: 11/10/2017 10:23 AM
22. Which moral philosophy is based on the premise that equal respect must be given to all persons?
b. Deontology
c. Egoism
d. Teleology
e. Utilitarianism
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 161
DATE CREATED: 11/10/2017 10:23 AM
23. _____ have lower ethical issue sensitivity, meaning they are less likely to detect ethical issues. They may be more
committed to completing projects and more dedicated to group values and objectives.
a. Relativists
b. Hedonists
c. Pragmatists
d. Deontologists
e. Teleologists
ANSWER: a
POINTS: 1
DATE CREATED: 11/10/2017 10:23 AM
24. _____ justice is based on the evaluation of outcomes or results of the business relationship.
a. Procedural
b. Interactional
c. Distributive
d. Ethical
e. Egotistical
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 166
DATE CREATED: 11/10/2017 10:23 AM
25. Kohlberg's six stages of cognitive moral development can be reduced to three levels of ethical concern. Persons at the
second level
a. define right as that which conforms to the expectations of good behavior of the larger society.
b. see beyond the norms, laws, and authority of groups or individuals.
c. are concerned with their immediate interests and with external rewards and punishments.
d. are concerned with their long-term interests and with internal rewards and punishments.
e. are unethical.
ANSWER: a
POINTS: 1
REFERENCES: p. 170
DATE CREATED: 11/10/2017 10:23 AM
26. _____ argues that ethical behavior involves not only adhering to conventional moral standards but also considering
what a mature person with a “good” moral character would deem appropriate.
a. Act utilitarianism
b. Virtue ethics
c. Reciprocity
d. Hedonism
e. Rule deontology
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
p. 164
DATE CREATED: 11/10/2017 10:23 AM
27. When a person defines right and wrong on the basis of legal contracts, he or she is using which of Kohlberg's stages of
development?
a. Punishment and obedience (stage )
b. Mutual interpersonal expectations, relationships, and conformity (stage 3)
c. Social system and conscience maintenance (stage 4)
d. Prior rights, social contract, or utility (stage 5)
e. Universal ethical principles (stage 6)
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 170
DATE CREATED: 11/10/2017 10:23 AM
28. _____ deals with the issue of what individuals feel they are due based on their rights and performance in the
workplace, and therefore is more likely to be based on deontological moral philosophies than on teleological or utilitarian
ones.
a. Rights
b. Virtue ethics
c. Justice
d. Relativism
e. Egoism
ANSWER: c
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 166
DATE CREATED: 11/10/2017 10:23 AM
29. A central problem with relativism is

a. that it emphasizes people’s differences, not similarities.
b. that few people believe that these principles are important.
c. that it is very complicated.
d. that it represents unattainable goals.
e. that many feel that it only works in theory.
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 163
DATE CREATED: 11/10/2017 10:23 AM
30. Which is not considered a white collar crime?

a. Corporate tax evasion
b. Credit card fraud
c. Insider trading
d. Identity theft
e. Mugging someone
ANSWER: e
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES: LO: 6-5 - Introduce white-collar crime as it relates to moral philosophies, values, and
corporate culture.
DATE CREATED: 11/10/2017 10:23 AM
31. An individual who emphasizes others rather than himself or herself in making decisions is in which of the following 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)
e. Prior rights, social contract, or utility (stage 5)
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 169
DATE CREATED: 11/10/2017 10:23 AM
32. While he is normally against the idea of harming animals, Eric views animal research in the pharmaceutical industry
as a way to improve drugs that will benefit mankind. Which moral philosophy most closely represents his viewpoint?
a. Egoism
b. Relativism
c. Humanitarianism
d. Utilitarianism
e. Individualism
ANSWER: d
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 159
DATE CREATED: 11/10/2017 10:23 AM
33. In Kohlberg’s model, the stage of mutual interpersonal expectations, relationships, and conformity (stage 3) differs
from the stage of individual instrumental purpose and exchange (stage 2) in terms of the individual’s motives in
a. considering fairness to others.
b. maintaining the social order.
c. considering duty to society.
d. upholding the basic values of society.
e. maintaining obedience to authority.
ANSWER: a
POINTS: 1
REFERENCES: p. 170
DATE CREATED: 11/10/2017 10:23 AM
34. The elements of _____ important to business transactions have been defined as trust, self-control, empathy, fairness,
and truthfulness.
a. egoism
b. utilitarianism
c. deontology
d. moral philosophy
e. virtue
ANSWER: e
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 165
DATE CREATED: 11/10/2017 10:23 AM
35. _____ justice considers the processes and activities that produce the outcome or results.
a. Disruptive
b. Procedural
c. Interactional
d. Communications
e. Evaluative
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 166
DATE CREATED: 11/10/2017 10:23 AM
36. What is white collar crime and why has it become such a widespread problem?
ANSWER: White-collar crimes (WCCs) are nonviolent business crimes defined by the Department of
Justice as a "non-violent criminal act involving deceit, concealment, subterfuge and other
fraudulent activity." Examples include antitrust violations, computer and Internet fraud,
credit card fraud, bankruptcy fraud, health care fraud, tax evasion, violating environmental
laws, insider trading, bribery, kickbacks, money laundering, and theft of trade secrets. WCC
is more widespread, and that may be due to corporate cultures becoming deviant and
encouraging unethical behavior. The incidents of WCC tends to increase in years following
an economic recession, but the reasons for this increase are not easy to pinpoint. See Table
6-5, Common Justifications for White-Collar Crime on page 158.
POINTS: 1
DIFFICULTY: Easy
p. 173, Table 6-4, U.S. Consumer Fraud Complaints
p. 174, Table 6-5, Common Justifications for White-Collar Crime

QUESTION TYPE: Essay
STUDENT ENTRY MODE: Basic
LEARNING OBJECTIVES:LO: 6-5 - Introduce white-collar crime as it relates to moral philosophies, values, and
corporate culture.
DATE CREATED: 11/10/2017 10:23 AM
37. Compare and contrast the two teleological philosophies: egoism and utilitarianism. Include a discussion of the bases
that each type uses to evaluate the morality of activities.
ANSWER: Egoists believe they should make decisions that maximize their own self-interest. Utilitarians
believe they should make decisions that result in the greatest total utility, or the greatest
benefit for all those affected by a decision. In an ethical decision-making situation, an egoist
will probably choose the alternative that contributes most to his or her self-interest, while a
utilitarian decision maker calculates the utility of the consequences of all possible
alternatives and then selects the one that results in the greatest benefit.
POINTS: 1
DIFFICULTY: Easy
DATE CREATED: 11/10/2017 10:23 AM
38. Compare and contrast the two moral philosophies: teleology and deontology. Discuss the bases each philosophy type
uses to evaluate the morality of a particular activity.
ANSWER: Teleological philosophies assess the moral worth of a behavior by looking at its
consequences, deontologists argue that there are some things we should not do, even to
maximize utility. For example, deontologists would consider it wrong to kill an innocent
person or commit a serious injustice against someone, no matter how much greater social
utility might result from doing so, because such an action would infringe on individual rights.
The utilitarian, however, might consider an action resulting in a person’s death acceptable if
that action lead to some greater benefit.
POINTS: 1
DIFFICULTY: Easy
DATE CREATED: 11/10/2017 10:23 AM
39. Discuss the distinctions between the rule and act categories of utilitarianism and deontology. Why do you think some
people evaluate the morality of an action on the basis of the action itself, whereas others evaluate it in terms of its
conformity to particular moral principles or rules of conduct?
ANSWER: Rule utilitarians determine behavior on the basis of principles or rules designed to promote
the greatest utility, while act utilitarians examine specific actions and assess whether they
result in the greatest utility. Rule deontologists believe in conformity to general moral
principles such as the Golden Rule, while act deontologists hold that actions are the proper
basis to judge morality. Adherents of different personal moral philosophies may disagree in
their evaluations of a given action, yet all are behaving ethically according to their own
standards.
POINTS: 1
DATE CREATED: 11/10/2017 10:23 AM
40. Explain how the levels of Kohlberg's model of cognitive moral development may influence a person's perception of
and response to an ethical issue.
ANSWER: A person in stage 1 responds to rules and labels of “good” and “bad” in terms of the physical
power of those who determine such rules. In stage 2 they evaluate behavior on the basis of
its fairness to them. In stage 3 ethical motivation is still derived from obedience to rules. In
stage 4, duty, respect for authority, and the maintenance of the social order become the focal
points. Individuals in stage 5 feel a sense of obligation or commitment to other groups and
recognize in some cases legal and moral points of view may conflict. A person in stage 6
believes right is determined by universal ethical principles everyone should follow.
POINTS: 1

DATE CREATED: 11/10/2017 10:23 AM
41. Which of the following describes the categorical imperative?

a. "Pursue pleasure in this lifetime as the ultimate good."
b. "Thou should seek the greatest good for the greatest number of people."
c. "Do unto others as you would have them do unto you."
d. "Act as if the maxim of thy action were to become by thy will a universal law of nature.
e. "When in Rome, do as the Romans do."
ANSWER: d
POINTS: 1
REFERENCES: p. 161
KEYWORDS: Blooms: Knowledge
DATE CREATED: 11/10/2017 10:23 AM
42. Why might an individual's moral philosophies differ when making a personal decision versus a work-related decision?
a. Individuals tend to act more unethically in large work groups than alone.
b. Businesses train individuals to adopt different moral philosophies at work.
c. Personal temptations are rarely a problem in the business environment.
d. Ethics is not held to be a high concern among managers in the workplace.
e. Goals and pressures in the workplace are different from those outside of work.
ANSWER: e
POINTS: 1
REFERENCES: p. 167
LEARNING OBJECTIVES: LO: 6-3 - Discuss the impact of philosophies on business ethics.
DATE CREATED: 11/10/2017 10:23 AM
43. What is one of the problems of Kohlberg's cognitive moral development theory?
a. The original theory was transferred from children to adults.
b. It can only apply to those with a deontological perspective.
c. It assumes that very few adults ever reach stage 6.
d. The theory has little reliability or validity.
e. All of the moral philosophies are regarded as equal to one another.
ANSWER: a
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 171
DATE CREATED: 11/10/2017 10:23 AM
44. The concept of moral philosophies is inexact.

a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 168
QUESTION TYPE: True / False
LEARNING OBJECTIVES: LO: 6-3 - Discuss the impact of philosophies on business ethics.
DATE CREATED: 11/10/2017 10:23 AM
45. Interactional justice considers the processes and activities that produce a particular outcome.
a. True
b. False
ANSWER: False
POINTS: 1
REFERENCES: p. 167

DATE CREATED: 11/10/2017 10:23 AM
46. Teleological philosophies are often referred to as consequentialism.

a. True
b. False
ANSWER: True
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 159
DATE CREATED: 11/10/2017 10:23 AM
47. The moral philosophy of idealism is a branch of the economic value orientation that views ethics as whether an act
produces more economic value for its effort.
a. True
b. False
ANSWER: False
POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 156
DATE CREATED: 11/10/2017 10:23 AM
48. Economist Adam Smith viewed profit as the ultimate goal of an enterprise and did not believe it was businesses'
responsibility to be concerned about their impact on society.
a. True
b. False
ANSWER: False

POINTS: 1
DIFFICULTY: Easy
REFERENCES: p. 155
LEARNING OBJECTIVES:LO: 6-1 - Understand how moral philosophies and values influence individual and group
DATE CREATED: 11/10/2017 10:23 AM
49. This philosophy defines right or acceptable actions as those that maximize a particular person’s self-interest as defined
by the individual.
a. Teleology
b. Egoism
c. Utilitarianism
d. Deontology
e. Relativism
ANSWER: b
POINTS: 1
DIFFICULTY: Easy
KEYWORDS: Bloom’s: Knowledge
DATE CREATED: 11/20/2017 9:06 AM
50. The famous statement “Act as if the maxim of thy action were to become by thy will a universal law of nature” is
called
a. categorical imperative.
b. economic imperative.
c. philosophy of action.
d. rule of deontologists.
e. utilitarianism.
ANSWER: a
POINTS: 1
Test Bank for Business Ethics: Ethical Decision Making & Cases, 12th Edition

DATE CREATED: 11/20/2017 9:12 AM
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