Business Law, 8e: Chapter 2

Chapter 2
Business Ethics:

Your Full Name:

Your Email Address:

The Email address of an instructor to mail your quiz results:

1. According to the "egoist" ethical system, ethical decisions are based on what is best for the community.: a. True
b. False

2. Consequential ethics attempts to measure "rightness" and "wrongness" by determining the ratio of good to evil that will result from any given action.: a. True
b. False

4. According to "game theory," if lying is unethical, then "bluffing" is also unethical.: a. True
b. False

5. The Court in the Dodge v. Ford Motor Company case was the first example of corporate "social responsibility" by requiring the company put the interests of the community ahead of the stockholders.: a. True
b. False

6. Under the social contract theory, a business manager must base decisions affecting the business, at least in part, on the impact the decisions will have on the business's various constituent groups.: a. True
b. False

7. Utilitarianism focuses on the benefit to an individual.: a. True
b. False

8. Laws enacted by society establish a minimum standard of behavior that is expected from each member of that society.: a. True
b. False

9. A feminist view of ethics holds that those who have power must use it for the betterment of all women.: a. True
b. False

10. Kant's 'categorical imperative' is based on a consequential view of ethics.: a. True
b. False

11. Under the "Social Contract Theory," what does society require of a business enterprise?: a. The generation of profits.
b. Adherence to the laws of the society, but no more.
c. Satisfying changing social demands.
d. Reduction of costs and expansion of production.

12. Props, Inc. donated $10,000 for the renovation of a community theatre. Props was motivated to make this charitable contribution because of the potential for future business with the theatre. In making the donation:: a. Props is following the ethical theory of egoism. The $10,000 donation promotes the long-term interests of Props.
b. Props is following the Utilitarian approach to ethics. The $10,000 donation serves the greatest number of people in the community.
c. Props is following the ethical theory of categorical imperative because the $10,000 donation is a civic duty.
d. Props is following the veil of ignorance ethical theory. Props is ignoring its duty to the shareholders.

13. Garden Fresh, a grocery store chain in the upper Midwest, donated five tons of food to a Florida homeless shelter because of the devastation caused by a hurricane. In making the donation:: a. Garden Fresh is following the ethical theory of egoism because it is a "good" action.
b. Garden Fresh is following the utilitarianism approach to ethics because it serves the interests of society.
c. Garden Fresh is following the egotist theory of ethics because it will make Garden Fresh feel an exaggerated sense of self-importance.
d. Garden Fresh is following the veil of ignorance ethical theory. Garden Fresh is ignoring its duty to the shareholders.

14. During the last 100 years, government regulation of business has increased dramatically. According to the social contract theory, why has this happened?: a. Business has failed to act in such a manner that its actions can become the universal law; therefore government has been justified in making economic life more difficult for business.
b. Business has failed to respond in a proactive manner to the changing demands of society. Consequently, government has stepped in with a reactive solution.
c. Business has failed to act in such a way as to provide the greatest good for the greatest number of people; therefore government has been obligated to step in and correct that problem.
d. All of the above.

15. Immanuel Kant developed the ethical theory based on the categorical imperative. According to this theory, in order for a person to act ethically, a person must:: a. strive to act in a manner that provides the greatest good to the greatest number.
b. obey universal moral principles in order to act ethically.
c. act in accordance with his or her beliefs at all times, without regard to the beliefs of others.
d. adhere to his or her social duties in every aspect of life, without regard to other factors.