CH 02 PQ
CH 02 PQ
CH 02 PQ
Issues
1. Business ethics refers to standards of conduct and moral values applied in business decision
making.
a. True
b. False
Ans: A
LO: 1
AACSB: Ethics
Ans: B
LO: 1
AACSB: Ethics
3. Floyd Aranowski worked for Pillsbury while serving on the Board of Directors for
Entenmann’s. This would be considered
4. Technology has expanded the range and impact of unethical business practices.
a. True
b. False
Ans: A
LO: 1
AACSB: Ethics
Ans: D
LO: 2
AACSB: Ethics
Ans: C
LO: 2
AACSB: Ethics
Ans: A
LO: 2
AACSB: Ethics
LO 2.3: List the stages in the development of ethical standards, and discuss how
organizations shape ethical behavior.
9. People who are aware of and respond to their duty to others have achieved:
a. The preconventional stage of ethical development
b. The conventional stage of ethical development
c. The postconventional stage of ethical development
d. None of the above
Ans: B
LO: 3
AACSB: Ethical
10. A situation where an action benefiting one person has the potential to harm another is
called:
a. A conflict of interest
b. Whistle-blowing
c. A loyalty dilemma
d. Integrity
Ans: A
LO: 3
AACSB: Ethics
11. Identify how many employees who took the National Business Ethics Survey witnessed an
act of misconduct in their company within the past year.
a. More than one-half of employees
b. More than two-thirds of employees
c. Less than one-third of employees
d. More than three-fourths of employees
Ans: A
LO: 3
AACSB: Ethics
12. In the highest level of ethical and moral behavior, the individual is able to move beyond mere
self-interest and duty and take the larger needs of society into account as well. This stage of
ethical development is the:
a. Preconventional stage
b. Conventional stage
c. Postconventional stage
d. Metaethical stage
Ans: C
LO: 3
AACSB: Ethics
13. Which of the following would NOT be considered an appropriate response when asked for
donations at work?
a. Always give the suggested donation c. If you aren’t sure about the
amount or the amount that coworkers organization, ask for more information
at your employment level are giving. before writing a check.
b. Decline if you simply cannot afford it d. Offer to pool your resources with
at this time. coworkers in order to make a larger
single donation.
Ans: A
LO: 3
AACSB: Ethics
14. John spent at least an hour a day surfing the Internet at work. He justified his behavior by
noting that “everyone’s doing it.” This type of behavior is
LO 2.4: Describe how businesses’ social responsibility is measured, and summarize the
responsibilities of business to the general public, customers, and employees.
18. The federal agency charged with ensuring universal access to jobs and ending discrimination
in the workplace is the:
a. FTC
b. SEC
c. EPA
d. EEOC
Ans: B
LO: 4
AACSB: Ethics
Ans: A
LO: 4
AACSB: Ethics
Ans: A
LO: 4
AACSB: Ethics
Ans: B
LO: 4
AACSB: Ethics
23. The federal agency charged with ensuring universal access to jobs and ending discrimination
in the workplace is the:
a. FTC
b. SEC
c. EPA
d. EEOC
Ans: D
LO: 4
AACSB: Ethics
Ans: E
LO: 4
AACSB: Ethics
25. After graduating from trade school, Ann accepted a position as a mechanic in a shop where
she is the only woman. After a few months she complained to her supervisor about lewd jokes
and sexually explicit posters in the workplace. Her supervisor should:
a. Tell Ann to relax and try to be one of the boys
b. Listen to Ann and help her adjust to the environment
c. Realize that these occurrences can be construed as sexual harassment and need to be
addressed
d. Realize that women have no place in a work environment that was previously all male
Ans: C
LO: 4
AACSB: Ethics
Ans: D
LO: 4
AACSB: Ethics
27. A strategy that promotes environmentally safe products and production methods is called
LO 2.5: Explain why investors and the financial community are concerned with business
ethics and social responsibility.
29. Identify the federal agency responsible for investigating alleged unethical or illegal financial
behavior of publicly traded firms.
a. The Federal Deposit Insurance Corporation
b. The Secret Service
c. The Securities and Exchange Commission
d. The Federal Bureau of Investigation
Ans: C
LO: 5
AACSB: Ethics
30. The ____________protects investors and investigates unethical and illegal actions by
publicly traded companies.
a. SEC
b. EEPC
c. Sarbanes Oxley
d. SBA
Ans: A
LO: 5
AACBS: Ethics
31. Companies are required to publish their codes of ethics and inform the public of any changes
to them because of
Ans: A
LO: 5
AACSB: Ethics