QUESTION 1

A business that is willing to sacrifice some income in order to avoid during harm to others is typically applying which value to business?

A. Moral and ethical
B. Maximizing profit
C. Legal
D. Shareholder interest.

QUESTION 2

Laredo believes that all ethical standards and principles are set forth in a book called Ethics for All that was written by a prominent ethics philosopher. Laredo refers to this book for guidance and rules by which to lead his life. Which of the following ethical theories most accurately describes Laredo's approach and conduct?

A. Kantian ethics
B. Utilitarianism
C. Ethical Relativism
D. Social Darwinism

QUESTION 3

Mandatory, random, observed drug testing by an employer ethically could be deemed:

A. Moral pursuant to Ethical Egoism for the employer if it conducts the testing in a careful and proper manner and as a result reduces accidents, lost time at work, and health care costs.
B. Moral pursuant to Utilitarianism if the drug testing reduces illegal drug use in society for the betterment of the people as a whole even though some people may feel their rights to privacy have been or may be infringed upon.
C. Immoral pursuant to Kantian ethics if some people feel that mandatory, random, observed drug testing is a disrespectful and demeaning act and an invasion of their privacy.
D. All of the above.

QUESTION 4

Bribery of foreign government officials can be:

A. Legal as a "facilitating and expediting" exception under the Foreign Corrupt Practices Act.
B. Moral pursuant to Utilitarian ethics if all the stakeholders benefit.
C. Moral pursuant to Ethical Relativism.
D. All of the above.

QUESTION 5

As chief executive officer for Consolidated Industries, Inc., Stephanie engages in personal activities and business activities on and off the firm's premises. Compared to personal activities, business activities involve

A. Higher ethical principles since business is generally immoral and not "above the law"
B. Lower ethical principles due to the well-known fact that business is all about profits
C. The same fundamental ethical principles
D. No ethical standards since most business people are amoral anyway.

QUESTION 6

Utilitarianism can best be characterized by:

A. The consultation of an outside source, such as a person or a book, for guidance.
B. The belief that a person must decide what course of action is proper based on that person's own set of beliefs and feelings.
C. Determining which course of action produces the greatest amount of good for society.
D. A set of universal rules based on reasoning that must be applied in all situations and characterized by reversibility.

QUESTION 7

A company is considering using its local agents to pay a bribe in the form of a very expensive "good will" gift to a foreign government official in order to assure approval by the official for a contract with the foreign government that the company desperately needs to survive. How best would Machiavelli "ethically" advise the company?

A. Do not pay the bribe as bribery is a legal wrong everywhere with no exceptions and thus bribery is everywhere immoral.
B. Do not pay the bribe as bribery is "categorically" a moral wrong everywhere and at all times and with no ethical exceptions.
C. Pay the bribe since it is absolutely necessary, but be smart, shrewd, and very careful about it, and then know that you have acted in a "virtuous" manner.
D. Pay the bribe only if you have the full express approval of the U.S. Department of Justice Legal Affairs Department as well as the Business Ethics Office and also the approval of foreign government official's government.

QUESTION 8

Big Sneaker Multinational Company has an Asian manufacturing facility which would be regarded as a "sweat-shop," where young, teen-age girls are exploited, working for poor wages and with minimal safety precautions, as well as some of the girls being sexually harassed by managers in the making of sneakers. The company, however, is acting legally in Asia and, moreover, produces a lot of money for the Asian and U.S. economies, the company's shareholders and distributors and retailers; and furthermore the U.S. consumer gets a very good product at a reasonable price. The Asian girls have some type of a job, at least. Under these circumstances, Kant based on his Categorical Imperative would say:

A. If those type of working conditions are considered to be normal and the customary practice in Asian societies then the facility is a moral one.
B. If the facility produces the greater good for U.S. and the Asian society then it is a moral one despite some suffering by the employees.
C. If the facility produces overall good for the company, despite a little bad publicity which the "PR people" can handle, then it is moral.
D. If the working conditions at the facility are not improved and if the sexual harassment of the girls is not stopped, the facility is an immoral one as it fails the Kingdom of Ends and Agent/Receiver tests.

QUESTION 9

A business that continues to operate its domestic factories in order to avoid layoffs rather than shift its production to lower cost facilities overseas is most directly applying which value?

A. Legal positivism
B. Profit maximization
C. Stakeholder interests
D. Moral Heroism.

QUESTION 10

Regarding the use of nudity in advertising of bath products, what would an Ethical Relativist say?

A. When in Rome, act as the Romans.
B. Morality is a societal-based notion.
C. One society may say that nudity is moral; another that it is immoral; and both are right.
D. All of the above.