Chapter 01 Ethics and Business

Multiple Choice Questions:

1.1: Business Ethics as Ethical Decision Making
1. Which of the following best describes ethics?
A. An academic discipline which originated in the early 1900s.
B. A descriptive approach that provides an account of how and why people do act the way they
do.
C. The study of how human beings should properly live their lives.

1.2: Business Ethics as Personal Integrity & Social Responsibility

2. ________ is precisely this skill: to create the circumstances within which good people are able
to do good, and bad people are prevented from doing bad.
A. Ethical business leadership
B. Personal Integrity
C. Social Responsibility
D. Freedom
3. Philosophers often emphasize that ethics is ______, which means that it deals with a person’s
reasoning about how he or she Should act.
A. Normative
B. Descriptive
C. Persuasive
D. Reasonable
4. Like ethics, social sciences such as psychology and sociology also examine human decision
making and actions. They provide an account for how and why people Do Act, they are:
A. Normative in nature
B. Descriptive in nature
C. Persuasive in Nature
D. Logical in Nature
5. Individual codes of conduct based on one's value structures regarding how one should live,
how one should act, what one should do, and what kind of a person should one be is sometimes
referred to as _____.
A) Rationality
B) Independence
C) Morality
D) Leadership
6. Morality is the aspect of ethics that we can refer to by:
A. The underlying values on which our decisions are based
B. The underlying beliefs that cause us to act or to decide one way rather than another
C. Examine business institutions from a social rather than from an individual perspective
D. Standards of appropriate and proper behavior.
7. Which of the following is a true statement about norms?
A) They are underlying beliefs that cause people to choose one way or another.
B) They are standards of appropriate and proper behavior.
C) They consist of guidelines for bringing about positive behavioral change.
D) They provide benchmarks of desirable societal conditions.
8. Which of the following are underlying beliefs that cause us to act or to decide one way rather
than another?
A. Patterns
B. Codes
C. Sets
D. Values
9. Ethics requires that the promotion of human welfare be done:
A. Based on the personal opinions of the decision maker.
B. Based on the level of need of the beneficiaries.
C. Understanding the religious beliefs of the beneficiary.
D. In a manner that is acceptable and reasonable from all relevant points of view.

10. Social responsibility is defined as:

A. The standards for deciding how one should behave, what one should do, and what kind of
person one ought to be.
B. How one should live one's life, how one should act, what one should do, and what kind of
person one should be.
C. The broad social aspect of ethics that requires one to consider business institutions from a
social rather that from a personal perspective

1.3: Ethics and the Law

11. It is insufficient for a company to carry out its ethical duties merely by obeying the law
because _____.
A. The law is always ethical.
B. The law is very effective at promoting good.
C. Legal norms and ethical norms are not identical.
D. Legal norms are very clear.

1.4: Ethics as Practical Reason

12. _____ reasoning is reasoning about what we should do.
A. Practical
B. Descriptive
C. Theoretical
D. Notional
13. Theoretical reasoning is reasoning about:
A. What we actually do.
B. What we should do.
C. What we should believe.

True or False;
1. In business, every decision can be covered by economic, legal, or company rules and
regulations.
2. The law can be an efficient mechanism to prevent serious harm, and is very effective at
promoting 'goods'.
3. Ethical values are those values— those decision guiding beliefs—that Impartially promote
human well-being.
4. In civil law, there is no room for ambiguity in applying the law because much of the law is
established by past precedent.
5. Just like law ethics is binding and mandatory.
6. Within a business setting, individuals will constantly be asked to make decisions affecting
both their own personal integrity and their social responsibilities.
7. Ethics refers to the applications of those morals to the decisions themselves.
8. Responsible decision making must rely on the personal values and principles of the
individuals involved.