Business Law 231: Test 1 -Chapter 2

Ethics is the branch of philophsy that focuses on what constitutes right and wrong behavior. True or false?
An ethics program can clarify what a company considers to be unacceptable conduct. True or false?
If an action is ethical from an outcome-based perspective, it is always ethical from a duty-based perspective. True or false?
One guideline for evaluating the ethics of a particular action is to “let your conscience be your guide.” True or false?
Bribery of foreign government officials is both an ethical and a legal issue. True or false?
Any decision by the management of the Fast-Food Franchise Corporation may significantly affect it
a. Operators only
b. Operators, owners, suppliers, the community, or society as a whole
c. Owners only
d. Suppliers, the community, or society as a whole
Eden, the chief executive officer of Flo-Thru Piping Corporation, wants to ensure that Flo-Thru’s activities are legal and ethical. The best course for Eden and Flo-Thru is to act in
a. Good faith
b. Ignorance of the law
c. Regard for the firm’s shareholders only
d. their own self-interest
Applied Business Coporation makes and markets its products nationwide. Under the stakeholder approach, to be considered socially responsible when making a business decision, Applied must take into account the needs of
a. Its consumers, the community, and society only
b. Its employees and owners only
c. Its employees, owners, the community, and society
d. No one
Fealty Credit Corporation asks its employees to evaluate their actions and get on the ethical business decision-making “bandwagon.” Guidelines for judging individual actions include all of the following except
a. An individual’s conscience
b. Business rules and procedures
c. Loopholes in the law or company policies
d. Promises to others
To assist in detecting illegal bribes, Cut Rite Contractors, Inc., and all U.S. Companies, must
a. Conceal financial records that reveal past bribes
b. Keep records that “accurately and fairly” reflect financial activities
c. Make bribes through third parties rather than directly to officials
d. Permit payments to foreign officials that are unlawful in that country