Business Ethics Practice Exam

According to Hofstede's cultural dimensions, what does a high power distance indicate?

• A flat organizational structure with equal power

• A culture that values independence and self-reliance

• Acceptance of unequal power distribution in society

• Resistance to hierarchy and authority

Which of the following best distinguishes practical reasoning from theoretical reasoning?

• Practical reasoning seeks to understand the universe

• Practical reasoning focuses on what we should believe

• Practical reasoning helps decide how we should act

• Theoretical reasoning is based on ethical values

How can ethical leadership influence an organization?

• By minimizing profits to prioritize values

• By shaping employee behavior and corporate culture

• By enforcing strict penalties for rule violations

• By delegating all ethical decisions to employees

What is the primary focus of a compliance-based corporate culture?

• Creating shared values

• Maximizing employee engagement

• Adhering to legal rules and regulations

• Encouraging innovation and change

Why do some employers monitor employee activity in the workplace?

• To reduce trust and increase control

• To understand employee emotions

• To increase privacy and confidentiality

• To improve productivity and reduce risk

Which of the following is one of the Four Ps of marketing?

• Profit

• Product

• Publicity

What does 'prima facie' ethical legitimacy in market exchanges require?

• Government regulation of all transactions

• Informed and voluntary consent

• High product pricing

• Universal product availability

What distinguishes tort law from contract law in product liability cases?

• Tort law focuses on written agreements only

• Contract law applies to all consumer transactions

• Tort law imposes general duties even without agreements

• Contract law considers intent irrelevant

Which of the following is a criticism of strict product liability?

• It discourages innovation by consumers

• It requires proof of intent to harm

• It can lead to bankruptcy from unforeseen harms

• It encourages deceptive marketing

How can advertising violate consumer autonomy?

• By offering excessive product information

• By creating wants that consumers did not have before

• By lowering product prices

• By discouraging unnecessary purchases