Multiple Choice Answers

1
Maria owns her own business and has just attended a cash flow management seminar where it was suggested the businesses should delay paying their suppliers as long as absolutely possible even if doing so violates the stated payment terms. Maria decides to continue paying her supplies on time in accordance with their payment terms because Maria would like her customers to pay her on time. Maria has reached her decision primarily in accordance with:
Ethical relativism
Utilitarianism
Corporate social responsibility
Kantian ethics.
2
Edward Executive makes $100,000 a year. Ned Newguy, a recent business school graduate, is willing to do Ed’s job for $55,000. Ed has been with the company for 30 years. In a cost-saving move, the company fires Ed and replaces him with the younger and cheaper Ned Newguy. This action could be
Illegal
Immoral pursuant to Kantian ethics
Moral pursuant to Ethical Egoism
All of the above.

3
Global Clothing Corporation, like other businesses today, has enforceable duties prescribed by
Ethics only
The law
Ethics and the law
Social responsibility.
4
Which of the following is a correct statement?
The legal law ultimately rests on coercion and force, whereas ethics relies on persuasion and social sanctions to enforce moral rules.
Inductive reasoning involves reasoning from general principles or definitions.
Socrates thought that obtaining knowledge was impossible and thus the search for knowledge was a waste of time and effort.
An ethics based on one’s conscience or religion is a very scientific form of ethics since appeals to one’s conscience or intuition as a moral guide are objective and impersonal and not subject to rationalization.
5
The theory of business social responsibility that holds that a business owes duties to the various constituencies such as customers and employees in addition to shareholders is best described as:
Moral minimum
Maximizing profits
Stakeholder interests
Corporate legal status

6
Which of the following corporate governance reform strategies, if adopted, would be MOST LIKELY to decrease the amount of immoral and “irresponsible” corporate behavior?
Requiring the study of business ethics in business schools and corporate training
Increasing the amount of legal regulation of business and imposing stronger penalties for violations
Increasing executives’ power to determine their fellow executives’ compensation packages
Reducing the amount of government regulation of business since market forces invariably will operate to deter corporate misconduct.
7
Which of the following corporate governance reform strategies, if adopted, would be LEAST LIKELY to decrease the amount of immoral and “irresponsible” corporate behavior?
Answer
Requiring the study of business ethics and applied business ethics in business schools and corporate training
Increasing the amount of legal regulation of business and imposing stronger penalties for violations
Increasing shareholder power to approve executives’ compensation packages
Reducing the amount of government regulation of business since market forces invariably will operate to deter corporate misconduct.
8
Big U.S. sneaker and clothing manufacture complies with all local laws in its facilities in Thailand. These facilities, however, are condemned by U.S. labor organizations as exploitative “sweatshops” since the Thai laws are very minimal. The Thai workers are used to these conditions, though, and are grateful for a job – any job. This U.S. manufacturer is likely acting:
Legally in the host country.
Morally in the host county based on ethical egoism and ethical relativism.
Immorally in the host country pursuant to Kantian ethics.
All of the above.
9
Zapco is a small company of 14 employees that makes fireworks. The company contributes to local charities and sponsors a youth sports team. Federal safety regulations require that large firecrackers have two dividing walls inside, so that all their gunpowder does not explode at once. Zapco is unaware of the regulations, and includes only one dividing wall in each of its large firecrackers. Little Timmy lights a Zapco firecracker, and before he can throw it, it explodes and seriously injures him. At the trial, it is established that a second dividing wall would have prevented the harm. Zapco is best described as
Not morally responsible since they are good corporate citizens in the local community
Not morally responsible since they were unaware of the regulations and they were just a small company
Not legally responsible because their company employs under 15 people and they were unaware of the regulations
None of the above.
10
Which of the following is NOT a correct statement?
Ignorance will always excuse a person from any responsibility for acting immorally.
The principle of Last Resort indicates when a person has a legal obligation to act.
Acting immorally can be argued as acting imprudently against one’s self-interest.
One’s role as a member of a profession may require a degree of socially responsible behavior.