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The most influential theory of corporate responsibility of the past century is:
The classical model.
 
A wider interpretation of the meaning of a stakeholder as any affected party places an impossible burden on managers who
would have to account for everyone who might be affected by a business decision.
True
 
Market failures occur in a variety of situations in which the pursuit of profit will not result in a net increase in consumer satisfaction
because in these situations markets fail to do what they were designed to do.
False
 
To use a company’s resources for a project that does not contribute to maximizing profits is sometimes acceptable and even
sometimes required under the classical model of corporate social responsibility.
False
 
Milton Friedman did not recognize that there are limits to the pursuit of profits.
False
 
Which of the following reasons might a free market economic theorist use to justify the hostile takeover of a company?
 
The takeover target company’s stock is undervalued. That is evidence that the resources are being inefficiently used.
If current management is not maximizing profits, it is violating the utilitarian imperative to maximize the overall good.
The organization seeking to take over the target company will maximize profits for the stockholders and will be serving the
public’s interests because it is only by satisfying consumer (public) demand that a business can make profits.
All of the above.
 
Which of the following statements does not represent a market failure, i.e., a situation in which the pursuit of profit will not
result in a net increase in consumer satisfaction?
Situations in which externalities have been internalized result in an equilibrium in the exchange price between true costs and benefits.
 
Bowie’s Kantian model of corporate social responsibility obliges managers to do no harm, but they must also be prepared at
times to do some good or prevent some harm.
False
 
Greater efficiency means that more beneficial consequences can result from each spending decision, in turn attracting more investors
whose resources can then be used to increase business.
True
 
Which statement is true of Bowie’s Kantian approach to business ethics?
While it is ethically good for managers to prevent harm or do some good, their duty to stockholders overrides these concerns.
 
We learn about market failures and thereby prevent harms in the future only by sacrificing the first generation as a means for
gaining this information.
True
 
The free market theory provides the rationale for the responsibility of managers to make as much money for their stockholders as possible.
True
 
The ethical roots of the classical model of corporate social responsibility are found in which statement:
 The free market theory which holds that managers are ethically obliged to make as much money as possible
for their stockholders because to do otherwise would undermine the very foundations of our free society.
 
Which statement represents a challenge to Evan's and Freedman's defense of the stockholder theory against the classical model of
corporate social responsibility?
Stakeholder theory cannot answer the question as to how, exactly, a manager should go about balancing the diverse
and competing claims of all parties.
 
Which statement does not support the claim that an unconditioned ethical directive such as the one the classical model of corporate
social responsibility demands of business management is inappropriate for utilitarian theory?
 A more precise formulation of a utilitarian-based principle would be to maximize profit whenever doing so produces the greatest
good for the greatest number, with the proviso that managers must consider the impact a decision will have in many ways other
than merely financial.
 
Ethical theories attempt to answer the question of how we should live, but do not give reasons to support their answers
False
 
Philosophical ethics provides justifications that must be applicable to all people regardless of their religious starting points
True
 
Deontological ethical traditions direct us to consider the moral character of individuals and how various character traits can contribute to, or obstruct, a happy and meaningful human life.
False
 
Utilitarianism has been called a consequentialist approach to ethics and social policy.
True
 
The ultimate ethical goal of deontology is to produce the best consequences for all parties affected by the decisions
False
 
Utilitarianism opposes policies that aim to benefit only a small social, economic, or political minority.
True
 
It is possible to argue on utilitarian grounds that child labor is ethically permissible because it produces better overall consequence than the alternatives.
True
 
The "administrative" version of utilitarianism considers competitive markets to be the most efficient means of maximizing happiness.
False
 
The "market" version of utilitarianism argues that questions of safety and risk should be determined by experts who establish standards that the business is required to meet.
False
 
Utilitarians would object to child labor as a matter of principle
False
 
The idea behind deontological ethics is commonsensical.
True
 
A social contract functions to organize and ease relations between individuals.
True
 
The concept of a human or moral right is central to the consequence-based ethical tradition.
False
 
Employees have a right to a minimum wage, equal opportunity, and to bargain collectively as part of a union. These rights are examples of contractual agreements with employers
False
 
An ethics of virtue shifts the focus from questions about who a person is, to what that person should do.
False
 
Virtue ethics emphasizes the more affective side of our character
True
 
Ethical reasoning falls into three major categories. Identify them.
Personal character, consequences, and principles
 
An ethical tradition that directs us to decide based on overall consequences of our acts is:
deontological ethics, utilitarianism
 
Identify the ethical tradition that directs us to act on the basis of moral principles.
Deontological ethical tradition
 
The study of various character traits that can contribute to, or obstruct, a happy and meaningful human life is part of:
virtue ethics.
 
Utilitarianism's fundamental insight is that we should decide what to do by:
considering the consequences of our actions.
 
Utilitarianism has been called a(n):
consequentialist approach to ethics.
 
Which of the following traditions is commonly identified with the principle of producing "the greatest good for the greatest number"?
Utilitarianism
 
Which of the following principles of utilitarianism indicates its support for democratic institutions and policies?
The greatest good for the greatest number
 
Which of the following traditions would support child labor because it produces better overall consequences than the available alternatives?
Utilitarianism
 
The utilitarian tradition has a long history of relying on _____ for deciding on the ethical legitimacy of alternative decisions.
social sciences
 
The "market" version of utilitarianism would promote all of the following policies except:
regulation of advertising.
 
Economists that view profit maximization as a central idea to corporate social responsibility are following the:
utilitarian framework of ethics
 
Which of the following would be advocated by the "administrative" version of utilitarianism?
Government regulation of business
 
The essence of utilitarianism is its:
reliance on consequences.
 
The statement, "the end justifies the means," reflects the principle of:
utilitarianism.
 
Which ethical framework goes against the ethical principle of obeying certain duties or responsibilities, no matter the end result?
Utilitarian framework of ethics
 
The idea behind deontological approach to ethics is:
commonsensical.
 
Which of the following approaches to ethics tells us that there are some rules that we ought to follow even if doing so prevents good consequences from happening or even if it results in some bad consequences?
Deontological
 
Which of the following statements reflects the deontological ethical tradition?
Obey the law
 
"All of my friends trust me because I never back down on my word and I never break promises, no matter what." Identify the ethical approach
that reflects this line of thought.
Deontological
 
"We ought to stop at a red light, even if no cars are coming and I could get to my destination that much sooner." Identify the ethical approach that follows this line of thought.
Ethics of principles
 
Lawyers, accountants, auditors, financial analysts, bankers have important roles to play within political and economic institutions. These roles insure the integrity and proper functioning of the economic, legal, or financial system and are termed as:
gatekeeper functions.
 
No group could function if members were free at all times to decide for themselves what to do and how to act. Which of the following functions
to organize and ease relations between individuals?
Social contracts
 
According to Immanuel Kant, there is essentially one fundamental moral duty:
respect the dignity of each individual.
 
Immanuel Kant claimed that the duty to respect human dignity could be expressed in several ways.
One version directs us to act according to those rules that could be universally agreed to by all people. This is the first form of the:
Kantian categorical imperative.
 
Which of the following is also known as the Kantian tradition in ethics?
Deontological ethics
 
The concept of moral rights is central to the:
principle-based ethical tradition.
 
The Kantian tradition claims that humans do not act only out of instinct and conditioning; they make free choices about how they
live their lives, about their own ends. In this sense, humans are said to have a fundamental human right of:
autonomy.
 
Which among the following is a legal right?
Right to bargain collectively as part of a union.
 
Which of the following approaches conceive of practical reason in terms
of deciding how to act and what to do?
Utilitarianism and deontology
 
Which of the following traditions seeks a full and detailed description of those character traits that would constitute
a good and full human life?
Virtue ethics
 
Identify the view which holds that people act only out of a self-interest.
Egoism
 
Identify the approach to ethics that shifts the focus from questions
about what a person should do, to a focus on who that person is.
Virtue ethics
 
Virtue ethics emphasizes the more _____ side of our character.
affective
 
Which of the following focuses on the concept of practices and what type of people these practices are creating?
Virtue ethics framework of ethics.
 
Virtue ethics directs us to consider the _____ of individuals and how various character traits can contribute to,
or obstruct a happy, meaningful life.
moral character
 
_____ is commonly identified with the principle of "maximize the overall good" or, in a slightly different version,
of producing "the greatest good for the greatest number."
Utilitarianism
 
The emphasis on producing the greatest good for the greatest number makes utilitarianism a _____.
Social Philosophy
 
People endorsing child labor by justifying that it brings in foreign investment within poor countries are mostly _____.
utilitarians
 
The " _____ " version of utilitarianism would be sympathetic with government regulation of business on the grounds
that such regulation will insure that business activities do contribute to the overall good.
administrative
 
One problem associated with utilitarianism is that the essence of utilitarianism is its reliance on _____.
consequences
 
Legal rules, organizational rules, role-based rules, and professional rules, all form a part of a social agreement called
the _____, which functions to organize and ease relations between individuals.
social contract
 
The basis of the ethical principle emphasized by _____ is to respect the dignity of individuals.
Immanuel Kant
 
Right to a minimum wage, equal opportunity, to bargain collectively as part of a union, and to be free from sexual
harassment are examples of _____ rights.
legal
 
_____ is a view that holds that people act only out of self-interest.
Egoism
 
Business ethics deals primarily with:
moral obligation
 
Crafting a strategic vision is typically the responsibility of a:
top-level manager
 
Three roles or activities within entrepreneurial work that arouse passion do NOT include:
human resources


Amanda is an ethically centered production manager so she will ship a product:
only after all its problems have been eliminated
 
According to concept of moral laxity, workers will often behave unethically because:
other issues seem more important at the time
 
Team leader Gary is scheduled to prepare a performance of Lisa, a team member who also happens to be his wife's
closest friend. The ethical temptation Gary faces is:
conflict of interest
 
Nick is a successful entrepreneur, so he probably emphasizes which of the following dimensions in his work?
innovativeness
 
Sherri Jackson is a sales manager. She searches the Internet to find new potential markets for her products. Jackson is most
directly making use of ____ resources.
information
 
Controlling is primarily concerned with:
comparing actual performance to a predetermined standard
 
Political skills should be regarded as a:
supplement to job competence
 
At the higher levels of management, the four roles that are most important include:
liaison, spokesperson, figurehead, and strategic planner
 
Which one of the following is the modern viewpoint of the corporation?
stakeholder
 
It is said that a firm is having a good corporate social performance when:
stakeholders are satisfied with its level of social responsibility
 
A whistle blower is an employee who
exposes organizational wrongdoing
 
In the new terminology, an organization that is green:
makes a deliberate attempt to create a sustainable environment
 
A recommended way of minimizing unethical behavior is for employees to:
confront fellow employees about ethical deviations
 
Project manager Julia is acting as a social entrepreneur when she:
starts a unit for her company to reduce childhood starvation
 
The most popular initiative for implanting corporate social responsibility in relation to the balance between work and family life are:
flexible work schedules
 
A distinguishing feature of a multinational corporation is that it:
has units in two or more countries in addition to its own
 
A key feature of the global startup is that it:
begins business as an international company
 
The North American Free Trade Agreement (NAFTA) creates liberal trading relationships among:
the United States, Canada, and Mexico
 
The major purpose of the European Union (EU) is to turn member countries into:
a single marketplace for ideas, goods and services
 
The World Trade Organization:
liberalizes trade among many nations throughout the world
 
A major advantage of offshoring for some American companies is that they:
lower costs and therefore become more competitive
 
A major concern about offshoring is that it:
leads to the permeant loss of jobs in the United States
 
You have good global leadership skills when you can:
effectively lead people from other cultures
 
McDonald's, a U.S. based company, has a large presence in Japan. If the Japanese yen suddenly becomes much weaker, what effect will this have on profits at McDonald's?
profits reported in U.S. dollars will be smaller
 
The symptoms of culture shock usually stem from:
being abruptly places in a foreign culture
 
A major success factor in building a business in another country is to:
hire talented citizens of that country to fill important positions
 
Diversity refers to:
people with different group identities within the same work environment
 
The purpose of unconscious bias training is to help employees discover their unconscious biases that:
may adversely affect certain demographics and cultural groups
 
Strategic plans are designed to:
shape the destiny of the firm
 
The purpose of tactical panning is to:
translate strategic plans into specific goals and plans for organizational units
 
A contingency plan is implemented if the
original plan cannot be implemented
 
The purpose of a SWOT analysis is to assess
strengths, weaknesses, opportunities, threats
 
The firm's purpose and where it fits into the world is identified by the
mission
 
When two pharmaceutical firms get together to market a drug, their strategy is referred to as
a strategic alliance
 
A strategy for becoming and remaining a successful organization is to:
find and retain competent people
 
The first step in management by objectives (MBO) is to:
establish organizational goals
 
Assume the Lenovo developed a smartphone so small it comes with a band so it can be work as a finger ring. Which strategy does this product launch most likely fit?
product differentiation
 
What policies in an organization?
general
 
What is rules in an organization?
specific guidelines
 
What is a manager?
a person responsible for work performance of other people
 
What is management?
process of using organizational resources to achieve specific objectives through the functions of planning, organizing and staffing, leading and controlling.
 
What are top-level managers? (also called C-level managers)
empowered to make major decisions and give the organization its general direction
 
What are middle-level managers?
Serve as a link between top-level and first-level managers. Makes sure that work is accomplished and goals are achieved
 
What are first-level managers or supervisors?
manage and supervise the operations. Current emphasis on productivity and cost control increased their role
 
What is the main difference between entrepreneur and small business owner?
innovation, profit, growth and achievement
 
What is the stockholders view point?
business firms are responsible only to owners and stockholders
 
What is cultural sensitivity?
The awareness and sensitivity of local and national customs, and how they affect interpersonal relationships
 
To bring about a successful SWOT analysis, it is important to be clear about what you are doing and why.
True
 
Corporate-level strategy helps answer the question, "Which businesses should we enter?"
False
 
In planning, measuring external threats is part of defining the present situation.
True
 
The first step in the planning process is defining the present situation.
True
 
A key difference between a vision and a mission is that
the mission relates more to today's realities.
 
In management by objectives, the objectives start at the bottom of the organization and move upward.
False
 
A study of CEO failure indicated that 70 percent of the time their failures were attributed to
poor execution, not poor planning.
 
A SWOT analysis is often used to decide upon which weapons and tactics will be used to deal with a corporate crisis such as a contaminated food product.
False
 
Strategic plans are designed to
shape the destiny of the firm.
 
How do you add value to your business? Policies serve as guidelines to action
that still allow for some interpretation.
 
An exit strategy might be part of the contingency plan.
True
 
Krispy Kreme donuts, a well-known donut retailer (but much smaller than Dunkin Donuts), most likely emphasizes which one of the following business strategies?
True
 
With respect to taking risks, business strategy usually
results in taking risks.