Business Law (Chapter 1)

Engaging in unethical behavior can lead to serious consequences for a company.

• True

• False

What does deontological ethics focus on?

• The outcomes of an action.

• The inherent rightness or wrongness of an action.

• The happiness generated by an action.

• The greatest good for the greatest number.

According to Milton Friedman, the sole duty of managers is to:

• Maximize community benefits.

• Ensure environmental sustainability.

• Maximize shareholder profits while following the law.

• Balance the needs of all stakeholders equally.

Immanuel Kant’s "Categorical Imperative" suggests that a business leader should:

• Act only on rules that they would be willing to see become a universal law.

• Always choose the path that results in the highest quarterly profit.

• Focus on developing the personal character traits of a "good person."

• Perform a cost-benefit analysis for every stakeholder involved.

Which ethical test involves imagining how a decision would look if it were reported in the media?

• The Social Media Test

• The Front Page Test

• The Bystander Test

• The Life Principles Test

What is the primary goal of utilitarian ethics?

• To ensure actions are inherently right.

• To create universal ethical principles.

• To produce the greatest good for the greatest number.

• To maximize personal benefits.

What is corporate social responsibility?

• A commitment to contributing positively to the community.

• A focus on maximizing profits for shareholders.

• The development of internal employee programs.

• A focus on reducing corporate taxes.

Which of the following examples aligns with utilitarian ethics?

• Refusing to lie, even if it would save someone’s life.

• Allowing an organ donor to die to save multiple lives.

• Supporting ethical decisions only if they align with personal beliefs.

• Treating all people equally, regardless of their societal contributions.

Which of the following is an example of a "conflict of interest"?

• A coach giving extra playtime to their own child.

• A company exaggerating product benefits in marketing.

• Employees copying unethical behavior from peers.

• A group ignoring ethical violations by leadership.

Which of the following best describes the "Moral Minimum"?

• The highest level of ethical perfection a business can reach.

• The idea that the law is the lowest level of behavior society will tolerate.

• A set of laws that only apply to small businesses.

• The minimum profit a company must make to stay ethical.