1. Mary Tudor decides to use insider information to sell stock. She justifies this decision by saying that if she did not do this, she will lose money and have to cut down on her staff which will hurt her employees. This defense best illustrates

A. profit maximization

B. rights theory

C. Kant's categorical imperative.

D. Stakeholder theory

2. Who are the "stakeholders" that a corporate manager should not consider when making a management decision?

A. Owners of shares of stock in the corporation

B. Employees of the corporation

C. The community in which the corporation operates

D. Corporate manager's family

3. "I am entitled to a job, a place to live, food, and health care regardless of how hard I work, how motivated I am to work to earn those things." This is:

A. Rights Theory

B. Justice Theory

C. Utilitarianism

D. Profit Maximization

4. Enron's executives' creation of partnerships that allowed Enron to keep liabilities off the balance sheet yet generate income that could be recognized in the current period could be described as an example of:

A. Rule utilitarianism.

B. Act utilitarianism.

C. Profit maximization.

D. Kant's categorical imperative.

5. Which of the following is not the prescribed guideline for ethical decision making?

A. What facts impact my decision?

B. What are the alternatives?

C. What factors appeal to pity?

D. How do the alternatives impact the decision maker?

7. Debra is talking to Alex, her stockbroker. Debra asks Alex if she can trust his advice to purchase Acme Co. stock. Alex replies: "Of course you can." Debra asks: "Why can I trust you?" Alex says with a smile, "because I am a trustworthy person." Alex is engaging in:

A. circular reasoning.

B. a bandwagon fallacy.

C. argumentum ad baculum.

D. criminal sanctions to curb irresponsible corporate behavior.