- A common law or principle stating that officers, directors, and managers of a corporation are not liable for losses incurred when the evidence demonstrates that decisions were reasonable and made in good faith is known as ________.
business judgment rule
2. Which of the following is an example of demonstrating ethical standards?
consequentialism
3. Which of the following examples best demonstrates the burden of the social contract that companies have with stakeholders?
Samsung’s recall paid refunds and limited potential lawsuits.
4. Virtue ethics is an ethical system based on the exercise of which virtues?
courage, honor, and loyalty
5. Which of the following are the opposing views of how large, publicly held corporations should approach social responsibility and ethics?
Business should behave ethically, being responsible to all stakeholders.
6. What is Rawls’s critique of utilitarianism?
A utility calculus can lead to tyranny.
7. What is ethics?
standards of behavior for professional and personal lives
8. Results of a recent study indicate corporations benefit from following Corporate Social Responsibility (CSR) policies in multiple ways. These benefits can add value to a business and are collectively called a(n) ________.
halo effect
9. According to Kantian ethics, how should the story Les Misérables best be understood?
Valjean’s motives and duty to his sister act as ends justifying means.
10. Which legislation was passed in 2002 that mandates reporting transparency by businesses in areas ranging from finance to accounting to supply chain activities?
Sarbanes-Oxley Act
11. Corporate law enables businesses to take advantage of a legal structure that ________.
separates liability from ownership and control
12. Which clause in the Constitution gives the federal government the right to regulate between states?
Commerce Clause
13. Besides culture, what is another major influence in the development of business ethics? Select the best answer.
the passage of time
14. Which of the following best describes the interplay of promises of businesses to stakeholders and vice versa?
on-time delivery and responsiveness
15. Ethics are the ________ to which we hold ourselves accountable in our professional and personal lives.
standards of behavior
16. Businesses that wish to achieve the dual goal of human flourishing and responsible profits should model which ethical behavior?
humanistic business model
17. What is the golden mean?
a middle ground value between deficiency and excess
18. Are ethical and legal responsibilities the same?
No, legal standards are necessary for a properly functioning society, and ethics deals with voluntary business conduct in accordance with laws, statutes, regulations, and policies.
19. In the case of Dodge v. Ford Motor Company, the Michigan Supreme Court ruled in favor of shareholder primacy. What was the decision?
Henry Ford must operate Ford Motor Company primarily to maximize profit for its shareholders.
20. As a form of philosophy, ethics was a major focus of ancient Athens leaders, including Aristotle, Socrates, and ________.
Plato
21. Which of the following best relates to prioritizing stakeholders?
Customers are considered high-priority stakeholder
22. Which of the following best describes how unconditioned ethics is a challenge to a global organization?
a global organization dealing with suppliers and multiculturalism
23. Which of the following describes the difference between enculturation and acculturation?
Enculturation refers to the process by which humans learn the rules, customs, skills, and values to participate in a society, whereas acculturation refers specifically to the cultural transmission and socialization process that stems from cultural exchange.
24. Which of the following definitions best describes consumerism?
the lifestyle characterized by the acquisition of goods and services
25. Which of the following terms refers to the process by which humans learn the rules, customs, skills, and values to participate in a society?
enculturation
26. Normative ethics means ________.
discovering right and delineating it from wrong
27. Which of the following is considered the most important internal stakeholder of a corporation?
board of directors
28. Which intellectual, emotional, and social human trait affects all decision-making, including ethical decisions?
bias
29. Which of the following is the best description for what it means to be a professional of integrity?
having an ethical mindset in business
30. What is a measure that accounts for an organization’s results in terms of its effects on profits, planet, and people?
triple bottom line
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