Business EthicsSeventh Edition, 2010ISBN-13 9780205731930Ri.docx

Business Ethics
Seventh Edition, 2010
ISBN-13: 9780205731930
Richard T. DeGeorge
Pearson/Prentice Hall
Unit1
Multiple Choice Questions (Enter your answers on the enclosed
answer sheet)
1. Which level of moral development does Kohlberg call the
“principled level”?
a. Level I
b. Level II
c. Level III
d. Level IV
2. What is the first level of moral development, according to
Lawrence Kohlberg?
a. Autonomous
b. Conventional
c. Preconventional
d. Postconventional
3. John Stuart Mill’s approach to ethics would be classified as
what sort of general ethical
approach?
a. Theological
b. Deontological
c. Utilitarian
d. Ontological
4. What is the name given to philosophers who attempt to use
only one ethical approach to ethical
questions?
a. Ethical monists
b. Utilitarians
c. Deontologists

d. Ethical pluralists
5. What is the name given to philosophers who construct their
ethical approaches with mixed
approaches?
a. Utilitarians
b. Ethical monists
c. Ethical pluralists
d. Deontologists
6. This type of utilitarianism holds that the basic human values
are pleasure and pain.
a. Hedonistic utilitarianism
b. Ideal utilitarianism
c. Eudaimonistic utilitarianism
d. Classic utilitarianism
7. This type of utilitarianism maintains that what has to be
calculated is not pleasure or happiness,
but all intrinsically valuable human goods such as friendship
and knowledge.
8. This type of utilitarianism holds that the basic human value is
happiness.
9. This type of utilitarianism holds that utility applies
appropriately to classes of actions rather
than to given individual actions.
a. Act utilitarianism
d. Rule utilitarianism
10. A Theory of Justice (1971) was written by:

a. John Rawls.
b. Lou Dobbs.
c. Ken Wilber.
d. Thomas Jefferson.
11. Normative ethical relativism claims that when any two
cultures or any two people hold
different moral views of an action:
a. only one can be right.
b. both can be right.
c. one is superior.
d. none of the above.
12. The ____________ of an action is a careful statement or
description of its essential features.
a. maxim
b. principle
c. rule
d. content
13. The first type of freedom is a human being’s ability to
choose:
a. their religious beliefs.
b. to act morally or immorally.
c. to express their thoughts.
14. According to the deontological position, if a maxim passes
all __________ tests, it is moral, if
it fails any one of them, it is immoral.
a. three
b. four
c. five
d. six
15. ___________ duties clearly describe actions that are
prohibited by moral law.
a. Imperfect
b. Perfect
c. Moral
d. Immoral

16. ___________ duties cannot be specified with precision and
the object of the action in question
is indeterminate.
a. Imperfect
b. Perfect
c. Moral
d. Immoral
17. The example to _____________ satisfies all three tests of
the Categorical Imperative.
a. act morally
b. help those in need
c. tell the truth at all times
d. none of the above
18. Moral ____________ are important, normative and
justifiable claims or entitlements.
a. actions
b. rights
c. duties
d. justice
19. ____________ rights protect an individual from interference
by both the government and other
people.
a. Negative
b. Positive
c. Ethical
d. Moral
20. ____________ rights require either the government or other
individuals to provide the bearer of
the right with certain positive goods or opportunities.
a. Negative
b. Positive
c. Ethical
d. Moral
21. ___________ rights are legal rights that typically apply to
citizens and not to all human beings.
a. ethical

b. moral
c. civil
d. human
22. Which of the following is NOT a condition for an action to
be considered a moral action?
a. It must take into consideration the particular circumstances.
b. It must be amenable to being made consistently universal.
c. It must respect rational beings as ends in themselves.
d. It must stem from, and respect, the autonomy of rational
beings
23. ____________ justice consists in compensating someone for
a past injustice or making good
some harm he or she has suffered in the past.
a. Compensatory
b. Retributive
c. Commutative
d. Distributive
24 ___________ justice concerns punishment due a lawbreaker
or evil-doer.
a. Compensatory
b. Retributive
c. Commutative
d. Distributive
25. ___________ justice refers to justice in transactions.
a. Compensatory
b. Retributive
c. Commutative
d. Distributive
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Unit2
answer sheet)
1. According to Aristotle, there are ___________ kinds of
virtues.

a. two
b. three
c. four
d. five
2. ____________ virtues result from the proper functioning of
the higher aspects of human beings.
a. Moral
b. Intellectual
c. Character
d. Ethical
3. ___________ virtues come about from the proper control by
reason of the bodily appetites and
inclinations.
a. Moral
b. Intellectual
c. Character
d. Ethical
4. According to Aristotle, we become virtuous _____________.
a. at birth
b. with practice
c. when we are at our height of moral enlightenment
5. The _____________ of a person is the sum of his or her
virtues and vices.
a. character
b. beliefs
c. attitude
d. actions
6. The technique of moving to another level to find a solution is
called:
a. ethical arrangement.
b. ethical displacement.
c. ethical replacement.
c. ethical awareness.
7. In law, ___________ liability means that no excusing
conditions are accepted or applicable.

a. strict
b. closed
c. firm
d. absolute
8. Moral ___________ is the feeling of sorrow for our immoral
actions, together with an intention
not to perform similar actions in the future.
a. remorse
b. guilt
c. regret
d. consequences
9. One way of evaluating economic systems is a(n)
____________ approach.
a. open-state
b. end-state
c. productive
10. Which of the following is not a true statement?
a. In a free-market system, government controls everything.
b. In a free-market system, government does not set the price of
goods.
c. In a free-market system, government does not set wages.
d. In a free-market system, government does not control
production.
11. Historically, there have been ___________ types of
relations between government and
capitalism.
a. four
b. five
c. six
d. eight
12. Marxists claim capitalism is inherently immoral:
a. because it cannot exist without robbing the worker of his due.
b. because it necessarily involves the alienation of human
beings.
c. at the present time because it protects the vested interest of

the few and prevents the
many from achieving a better, more just society.
d. all of the above.
13. _____________ is usually a corollary of assuming a certain
position, function, or role in society
or an organization.
a. Moral responsibility
b. Role responsibility
c. Function responsibility
d. Ethical responsibility
14. One variant of the Myth of Amoral Business is:
a. Organizational View.
b. Moral Person View.
c. Ethical View.
d. None of the above.
15.There are __________ specific defining features of the
model of classical capitalism.
a. two
b. three
c. four
d. five
16. One of the features of the partial model of socialism is:
a. social ownership of the means of production.
b. private ownership.
c. control of production.
17. Under the capitalistic system, Marx observes ____________
come to dominate people.
a. immoral behavior
b. greed
c. objects
d. wealth
18. According to ____________, government should neither tax
people nor redistribute income
through welfare and other similar programs.
a. capitalists

b. socialists
c. libertarian
19. ___________ see government as inextricably intertwined
with big business.
a. Capitalists
b. Socialists
c. Libertarians
d. Advocates of Workers’ Democracy
20. Surplus Value, a Marxist terminology, is also known as:
a. profit.
b. loss.
c. a greater abundance of goods.
d. a greater abundance of workers.
21. Through its ____________, the American government
encourages charitable giving.
a. economic system
b. tax system
c. political system
d. judicial system
22. Concerning the role of government and business, the typical
libertarian is a(n):
a. minimalist.
b. anarchist.
c. advocate of government control.
23. Historically, business has not been ____________.
a. libertarian
b. capitalistic
c. socialist
24. ___________ historically suffers from cyclical crises.
a. Capitalism
b. Workers’ democracy
c. Socialism
d. All of the above.

25. The American economic system is sometimes called a
___________.
a. capitalistic-enterprise system
b. free-enterprise system
c. closed-enterprise system
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Unit3
answer sheet)
1. The concept of Corporate Social Responsibility originated in
which time period?
a. 1920’s and 1930’s
b. 19th Century
c. 1980’s and 1990’s
d. 1960’s and 1970’s
2. Worldwide, about ___________ percent of businesses in the
private sector are small or medium
sized.
a. 80
b. 85
c. 90
d. 99
3. The generally accepted definition of a small business is one
with ____________ or fewer
employees.
a. 10
b. 20
c. 25
d. 50
4. The generally accepted definition of a medium business is
one with _____________ or fewer
employees.
a. 50

b.100
c. 200
d. 250
5. In the United States, small or medium sized businesses
provide over ___________ percent of
total employment.
a. 25
b. 40
c. 50
d. 75
6. Owners of stock in a corporation are only liable for
____________.
a. the amount they have invested in the company’s stock
b. their personal assets
c. the amount they have invested in the company’s stock and
their personal assets
7. A ____________ of an issue consists of weighing and
balancing all of the competing demands on
a firm by each of those who have a claim on it.
a. stakeholder analysis
b. board of directors analysis
c. corporation analysis
d. management analysis
8. The ____________ that corporations must meet is “do no
harm”.
a. moral obligation
b. moral minimum
c. moral requirement
d. moral duty
9. In large corporations, the ____________ is/are the legal
overseers of management.
a. CEO
b. shareholders
c. board members

10. The ____________ position is that a corporation can and
should be evaluated not only in terms of its financial bottom
line, but also in terms of its environmental bottom line and its
social/ethical bottom line.
a. Bottom line
b. Double Bottom line
c. Triple Bottom line
d. Final line
11. Triple Bottom Line reporting refers to:
a. using a low, medium and high estimates for profitability
forecasts.
b. measuring the impact of the firm on stockholders, customers
and employees.
c. measuring the social, environmental, and financial
performance of the firm.
d. measuring the impact of local, state, and federal governments
on the firm.
12. Corporate governance can be defined as:
a. the system used by firms to control the actions of their
employees.
b. the election process used to vote in a new Board of Director.
c. the corporate compliance system used by the firm.
d. the system used by firms to identify who the critical
stakeholders are for the firm.
13. The system that is used by firms to control and direct their
operations and the operations of
their employees is called:
a. Corporate Compliance.
b. Corporate Governance.
c. Corporate Control.
d. Corporate Directive.
14. Which board of directors committee is responsible for the
guidelines on how the board of
directors should operate.
a. Operating
b. Corporate governance

c. Corporate compliance
d. Guiding
15. The Sarbanes-Oxley Act was a direct response to which
ethics scandals?
a. Tyco
b. WorldCom
c. Enron
d. None of the above.
16. What is the name of the process in which an employee
informs another responsible employee
in the company about potentially unethical behavior?
a. Whistle-blowing
b. Purging and releasing
c. Identification
d, Information transfer
17. There are ___________ conditions that, if satisfied, change
the moral status of whistle blowing.
a. three
b. four
c. five
d. six
18. An example of a whistle blower whose actions were a form
of internal government whistle
blowing is:
a. Sherron Watkins.
b. Coleen Rowley.
c. Cynthia Cooper.
d. Lee Iacocca.
19. One whistle blower the text mentions is Cynthia Cooper
who was the vice president of
internal audit at ____________.
a. Enron
b. WorldCom
c. Tyco
20. One classic example of whistle-blowing is the:

a. Ford Pinto case.
b. Lincoln case.
c. Toyota case.
21. A whistle-blower:
a. doesn’t have to be a past or present member of the
organization.
b. doesn’t have to report activity that is illegal, immoral, or
harmful.
c. is any employer who spreads gossip.
d. far from being disloyal, may be acting in the best interest of
the organization.
22. The Sarbanes-Oxley Act:
a. makes it easier to fire whistle blowers.
b. reduces the law’s protection of employees who disclose
securities fraud.
c. makes it illegal for executives to retaliate against employees
who report possible
violations of federal law.
d. provides penalties for blowing the whistle illegitimately or
maliciously.
23. Inside traders ordinarily defend their actions by claiming
that they don’t injure:
a. their boss.
b. their family.
c. the government.
d. anyone.
24. Shareholders have the right to know all except:
a. Information on the management of the corporation
b. Trade secrets
c. The companies financial position
d. The companies general plans for the future.
25. Which act provides sweeping new legal protection for
employees who report possible securities
fraud making it unlawful for companies to “discharge, demote,
suspend, threaten, harass, or in

any other manner discriminate against” them?
a. Sarbanes-Oxley Act of 2002
b. Foreign Corruption Act
c. Economic Espionage Act
d. U.S. vs. O’Hagan
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Unit4
answer sheet)
1. In the U.S., until ___________, prescription drugs could not
be advertised directly to consumers.
a. 1965
b. 1970
c. 1980
d.1985
2. In 2005, the pharmaceutical industry spent_________ on TV
ads.
a. $2.5 million
b. $500 million
c. $1.19 billion
d. $11.1 billion
3. The U.S. and ___________ are the only two developed
nations that allow direct-to-consumer
advertising of pharmaceutical drugs.
a. U.K.
b. Japan
c. Canada
d. New Zealand
4. ____________ refers to the practice of a seller putting a
much higher price on the item for sale
than is considered fair or reasonable.
a. Overpricing
b. Price gouging
c. Mark-up

d. Price inflation
5. All of the following are major arms suppliers, except:
a. Korea.
b. the United States.
c. Russia.
d. France.
6. The National Advertising Review Board (NARB) was formed
in:
a. 1956.
b. 1968.
c. 1971.
d. 1997.
7. The Equal Pay Act of ____________ guarantees the right to
equal pay for equal work and is
aimed especially at wage discrimination against women.
a. 1954
b.1960
c. 1963
d. 1974
8. The first level of affirmative action involves the active
recruiting of:
a. women and members of minority groups.
b. women only.
c. minority groups only.
9. Trademarks ____________ after a certain length of time and
the rights one has continue
indefinitely.
a. expire
b. do not expire
c. expire after one year
d. expire after five years
10. Currently, copyrighted material is protected for life of the
author plus:
a. 5 years.
b. 25 years.

c. 50 years.
d. 70 years.
11. ____________ applies to the authorized use of copyrighted
material without permission under
certain conditions.
a. Fair use
b. Fair act
c. Common use
d. Common sharing
12. The stealing of funds or assets by computer has resulted in
the loss to business of what is
conservatively estimated to be ____________ annually.
a. $1 billion
b. $2 billion
c. 3 billion
d. $5 billion
13. Data _________ is a technique of using special software to
sift through large databases in order
to derive information that is implicit but not explicit in the data.
a. mining
b. hacking
c. cracking
d. monitoring
14. _________ refers to land and to the buildings and additions
on the land.
a. intellectual property
b. tangible
c. real property
15. From an ethical perspective, which is the proper response
with regards to the length of a
copyright?
a. The longer contemporary period is better than the shorter
historical period.
b. Ethics cannot provide a specific period.
c. The shorter historical period is better than the longer

contemporary period.
d. Both the shorter historical period and the longer
contemporary period are best for their
time periods
16. Which of the following is not covered by the doctrine of fair
use?
a. Scholarly criticism and scholarship
b. Using copies instead of assigning a text
c. News reporting
d. Research
17. The EEO laws require an employer to give greater care to
____________ than many employers
did prior to the laws.
a. writing the job description for a position
b. safety training
c. positive feedback
d. salary negotiations
18. The Age Discrimination in Employment Act protects those
between the ages of _____________.
a. 40 and 60
b. 40 and 70
c. 50 and 70
d. 50 and 80
19. The right to privacy with relation to the Internet is:
a. ethically covered, but not legally.
b. is legally covered, but not ethically.
c. is neither ethically nor legally covered.
d. is both legally and ethically covered.
20. ____________ property refers to land and to the buildings
and additions on the land.
a. Tangible
b. Real
c. Intangible
d. Concrete
21. Money, stocks, bonds, and other financial securities are
what type of property?

a. Tangible
b. Real
c. Intangible
d. Concrete
22. _____________ is significantly different from the other
types of property because it can be
shared with others without losing any part of it oneself.
a. Intellectual property
b. Intangible property
c. Tangible property
d. Real property
23. Once revealed, _____________ are no longer legally
protected.
a. trade secrets
b. patents
c. copyrights
24. Patents filed after 1995 afford protection for a period of
____________ years from the date of
application.
a. 10
b. 20
c. 25
d. 50
25. ____________ prevent others from using the same or a very
similar type of symbol to represent
their products.
a. Trademarks
b. Patents
c. Copyrights
d. Trade secrets

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