7) Why did the U.S. Sentencing Commission begin to focus on the ethical culture of the organization in 2004? A. Researchers had just recently introduced the idea of an ethical culture in 2002. B. More and more consultants were discussing ethical culture in their programs. C. Prior to the change, organizations used formal programs as window dressing. D. Prior to 2004, researchers did not have a definition of ethical culture.

1. MGT/216 Final Exam Guide
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1) The Myth of Amoral Business is consistent with which of the following?
A. Businesses and people in business are immoral.
B. Businesses and people in business are inherently ethical.
C. Businesses and people in business are not explicitly concerned with ethics.
D. Businesses and people in business are unethical.
2) Three major approaches to thinking about business ethics are the conventional approach,
the principles approach, and the ethical tests approach. Which of the following describes the
principles approach?
A. It involves comparing a decision or practice with prevailing norms of
acceptability.
B. It involves a set of practical questions that do not require deep moral thinking but
can help clarify an appropriate course of action.
C. It is based on a moral philosophical concept, guideline, or rule that can be applied
to assist in making an ethical decision.
D. It is based on legal mandates and regulations to guide decisions.
3) Moral management is the polar opposite of immoral management. Which of the following
statements most closely describes the primary focus of moral management?
A. The focus is solely on business, where different rules apply than in other realms of
life.
B. The focus is on profitability and organizational success at any price.

2. C. The focus is on both the letter of the law and the spirit of the law.
D. The focus is solely on obeying the law.
4) Students in which area of study may need more ethics training because research has found
that they rank lower in moral reasoning than other students?
A. Philosophy
B. Political science
C. Business
D. Medicine
5) Which of these is the best approach to the study of business ethics?
A. Special effects
B. Normative ethics
C. Casuistry
D. Metaethics
6) In the ethical decision-making process, which of these is the process of deciding what is
right?
A. Moral awareness
B. Moral cognition
C. Moral judgment
D. Moral behavior
7) Why did the U.S. Sentencing Commission begin to focus on the ethical culture of the
organization in 2004?
A. Researchers had just recently introduced the idea of an ethical culture in 2002.

3. B. More and more consultants were discussing ethical culture in their programs.
C. Prior to the change, organizations used formal programs as window dressing.
D. Prior to 2004, researchers did not have a definition of ethical culture.
8) Which of the following statements is true about a weak organizational culture?
A. Desirable if an organization has many subcultures
B. Desirable if an organization wants diversity of thought and action
C. Desirable if an organization wants behavioral consistency
D. Undesirable because they lead to weak organizations
9) Which of the following conditions is necessary for whistle-blowing to be morally
permissible, but not morally obligatory?
A. The firm will do serious and considerable harm to employees or to the public.
B. The whistle-blower has documented evidence that would convince a reasonable,
impartial observer that one’s view of the situation is correct.
C. The employee has good reason to believe that by going public, the necessary
changes will be brought about.
D. The whistle-blower has reason to believe that he or she will be seen as failing to
be loyal to the company.
10) Which of the following conditions is necessary for whistle-blowing to be morally
permissible, but not morally obligatory?
A. The company’s product poses a serious danger to the public.
B. The employee has good reason to believe that by going public, the necessary
changes will be brought about.
C. The whistle-blower has reason to believe that he or she will be seen as failing to
be loyal to the company.

4. D. The employee has exhausted the internal procedures and possibilities within the
firm, maybe even to the board of directors.
11) Which of the following conditions is necessary for whistle-blowing to be morally
obligatory?
A. The employee has exhausted the internal procedures and possibilities within the
firm, maybe even to the board of directors.
B. The whistle-blower has documented evidence that would convince a reasonable,
impartial observer that one’s view of the situation is correct, and that the company’s product
poses a serious danger to the public.
C. The firm will do serious and considerable harm to employees or to the public.
D. The employee has reported the serious threat to his or her immediate supervisor.
12) Which of the following conditions is necessary for whistle-blowing to be morally
permissible, but not morally obligatory?
A. The employee has reported the serious threat to his or her immediate supervisor.
B. The whistle-blower has documented evidence that would convince a reasonable,
impartial observer that one’s view of the situation is correct, and that the company’s product
poses a serious danger to the public.
C. The employee has good reason to believe that by going public, the necessary
changes will be brought about.
D. The whistle-blower has reason to believe that he or she will be seen as failing to
be loyal to the company.
13) The purpose of the Sarbanes-Oxley Act of 2002 was to
A. provide protection for corporations with whistle-blowers
B. make whistle-blowing illegal
C. provide some protection for whistle-blowers

5. D. create a federal office for whistle-blowers to report to
14) According to Aristotle, which of the following is the highest virtue?
A. Wisdom
B. Courage
C. Justice
D. Generosity
15) Which of the following would be the conclusion a virtue ethicist might make of one who
reacts to strong temptation by frequently giving in to it?
A. The person has an excellent character.
B. The person has an immoral character.
C. The person has a strong character.
D. The person has a weak character.
16) Which of the following describes a moral ideal?
A. A pleasure or happiness
B. A disposition
C. A goal toward which we can strive
D. A talent or ability
17) All actions by nations or companies involve—first and foremost—which of the
following?
A. Actions by individuals

6. B. Actions by legislative bodies
C. Actions by corporate entities
D. Actions by nation states
18) According to the Executive Ethical Leadership Reputation Matrix, which type of leader is
an executive characterized as a weak moral person and a strong moral manager?
A. Unethical leader
B. Ethical leader
C. Ethically neutral leader
D. Hypocritical leader
19) According to the Executive Ethical Leadership Reputation Matrix, which type of leader is
an executive characterized as a strong moral person and a strong moral manager?
A. Unethical leader
B. Ethical leader
C. Ethically neutral leader
D. Hypocritical leader
20) Which of the following is one of the moral responsibilities of management?
A. Management is responsible to the board.
B. Management is responsible to the workers.
C. Management is responsible to maximize profits.
D. Management is responsible to the shareholders.

7. 21) Which of the following is the general obligation derived from the system of free
enterprise that covers the wide range of issues from just compensation to truth in advertising
to providing the quality of goods or services that one represents oneself as providing?
A. The obligation to be fair in the transactions in which it engages
B. The obligation not to undermine the freedom and values of the system
C. The obligation to do no harm
D. The obligation to live up to the contracts into which one enters freely
22) Which of the following is the general obligation derived from the system of free
enterprise that is sometimes called the moral minimum?
A. The obligation to be fair in the transactions in which it engages
B. The obligation not to undermine the freedom and values of the system
C. The obligation to do no harm
D. The obligation to live up to the contracts into which one enters freely
23) Which of the following is the general obligation derived from the system of free
enterprise that holds that parties must be able to count on the actions of other agents with
whom they interact?
A. The obligation to be fair in the transactions in which it engages
B. The obligation not to undermine the freedom and values of the system
C. The obligation to do no harm
D. The obligation to live up to the contracts into which one enters freely
24) In an example of a conflict of interest, which of the companies below conducted a series
of off-the-books partnerships managed by the company’s executives to hide the
organization’s debt, inflate its stock price, and benefit the executives financially?

8. A. Merrill Lynch
B. Enron
C. Citicorp
D. Adelphia
25) There are a number of ways to categorize an organization's stakeholders. One way is to
use categories such as primary and secondary and social and nonsocial. Which of the
following describes primary stakeholders?
A. Their stake in the organization represents public or special interests.
B. They may include the government, civic institutions, and competitors.
C. They have a direct stake in the organization and its success.
D. They may include environmental pressure groups or animal welfare organizations.
26) Some theorists contend that there are three attributes that managers must take into
consideration when determining how to attend to or respond to stakeholder claims. They are
A. core, strategic, and environmental
B. production, management, and employee
C. legitimacy, power, and urgency
D. instrumental, descriptive, and normative
27) __________ is defined as the gap between the home market and a foreign market
resulting from the perception and understanding of cultural and business differences.
A. Psychic distance paradox
B. Social responsibility
C. Sustainability

9. D. Ethical relativity
28) “When in Rome, do as Romans do” is an example of
A. imperialism
B. ethical relativism
C. cultural collaboration
D. psychic distance paradox
29) According to the annual Corruption Perception Index (CPI), which country would be the
least corrupt?
A. United States
B. Haiti
C. Bangladesh
D. Denmark
30) Which of the following is legal according to the Foreign Corrupt Practices Act (FCPA)
passed in 1977?
A. Payments to high-ranking government officials
B. Grease payments to lower-level government officials
C. Bribes to political parties
D. Kickbacks to win overseas contracts