Legal environment today 8th edition miller test bank.1.Legal Environment Today 8th Edition Miller Test BankFull clear download( no error farmatting) at:Environment Today 8th Edition Miller Solutions ManualFull clear download( no error farmatting) at:/ False1. Business ethics is not more complicated than personal ethics.a.
FalseANSWER: FalsePOINTS: 1DIFFICULTY: EasyREFERENCES: Business EthicsLEARNING OBJECTIVES: LO - 1NATIONAL STANDARDS: United States - BUSPROG: EthicsLOCAL STANDARDS: United States - OH - Default City - AICPA Critical ThinkingKEYWORDS: Bloom's: Knowledge2. Ethics is concerned with the fairness or justness of an action.a. FalseANSWER: TruePOINTS: 1DIFFICULTY: EasyREFERENCES: Business EthicsLEARNING OBJECTIVES: LO - 1NATIONAL STANDARDS: United States - BUSPROG: EthicsLOCAL STANDARDS: United States - OH - Default City - AICPA LegalKEYWORDS: Bloom's: Knowledge3. Adhering strictly to all business laws is all that is necessary to fulfill all business ethics obligations.a. FalseANSWER: FalsePOINTS: 1DIFFICULTY: EasyREFERENCES: Business EthicsLEARNING OBJECTIVES: LO - 1NATIONAL STANDARDS: United States - BUSPROG: EthicsLOCAL STANDARDS: United States - OH - Default City - AICPA Critical Thinking.KEYWORDS: Bloom's: Knowledge4. Business ethics focuses on ethical behavior in the business world.a.
FalseANSWER: TruePOINTS: 1DIFFICULTY: EasyREFERENCES: Business Ethics.LEARNING OBJECTIVES: LO - 1NATIONAL STANDARDS: United States - BUSPROG: EthicsLOCAL STANDARDS: United States - OH - Default City - AICPA Risk AnalysisKEYWORDS: Bloom's: Knowledge5. Ethics is less certain than law.a. FalseANSWER: TruePOINTS: 1DIFFICULTY: EasyREFERENCES: Business EthicsLEARNING OBJECTIVES: LO - 1NATIONAL STANDARDS: United States - BUSPROG: EthicsLOCAL STANDARDS: United States - OH - Default City - AICPA Risk AnalysisKEYWORDS: Bloom's: Knowledge6. Compliance with the law does not necessarily fulfill all ethical obligations.a. FalseANSWER: TruePOINTS: 1DIFFICULTY: EasyREFERENCES: Business EthicsLEARNING OBJECTIVES: LO - 1NATIONAL STANDARDS: United States - BUSPROG: EthicsLOCAL STANDARDS: United States - OH - Default City - AICPA Critical ThinkingKEYWORDS: Bloom's: Knowledge7.
Download Test Bank for The Legal Environment Today, 7th Edition, Roger L. Miller.Get complete Textbook chapters and study guide. The Legal Environment Today Business In Its Ethical Regulatory E Commerce and Global Setting 7th Edition Miller Solution Manual Complete Step by Step All Chapters Textbook Problems Solutions Manual Description THE LEGAL ENVIRONMENT TODAY: BUSINESS IN ITS ETHICAL, REGULATORY, E-COMMERCE, AND GLOBAL SETTING, 7th Edition gives students the working knowledge of business-related laws recommended.
Focusing on a firm's short-term profits without considering the company’s long-term needs may be acting unethically.a. FalseANSWER: TruePOINTS: 1DIFFICULTY: EasyREFERENCES: Business EthicsLEARNING OBJECTIVES: LO - 1NATIONAL STANDARDS: United States - BUSPROG: EthicsLOCAL STANDARDS: United States - OH - Default City - AICPA Critical ThinkingKEYWORDS: Bloom's: Knowledge8. The legality of an action is always clear.a. FalseANSWER: FalsePOINTS: 1.DIFFICULTY: EasyREFERENCES: Business EthicsLEARNING OBJECTIVES: LO - 1NATIONAL STANDARDS: United States - BUSPROG - Analytic - Business knowledge and analytic skillsLOCAL STANDARDS: United States - OH - Default City - AICPA Critical ThinkingKEYWORDS: Bloom's: Knowledge9. To be a 'good citizen,' when making decisions a business should not evaluate the public relations impact.a. FalseANSWER: FalsePOINTS: 1DIFFICULTY: EasyREFERENCES: Business EthicsLEARNING OBJECTIVES: LO - 1NATIONAL STANDARDS: United States - BUSPROG: EthicsLOCAL STANDARDS: United States - OH - Default City - AICPA Critical ThinkingKEYWORDS: Bloom's: Knowledge10.
Ethics can be highly subjective and subject change over time.a. FalseANSWER: TruePOINTS: 1DIFFICULTY: EasyREFERENCES: Business EthicsLEARNING OBJECTIVES: LO - 1NATIONAL STANDARDS: United States - BUSPROG: EthicsLOCAL STANDARDS: United States - OH - Default City - AICPA Critical ThinkingKEYWORDS: Bloom's: Knowledge11. Acting in good faith gives a business firm a better chance of defending its actions in court.a. FalseANSWER: TruePOINTS: 1DIFFICULTY: EasyREFERENCES: Business EthicsLEARNING OBJECTIVES: LO - 1NATIONAL STANDARDS: United States - BUSPROG: ReflectiveLOCAL STANDARDS: United States - OH - Default City - AICPA LegalKEYWORDS: Bloom's: Knowledge12. An ethical code of conduct typically outlines a company’s policies.a. False.ANSWER: TruePOINTS: 1DIFFICULTY: EasyREFERENCES: Business EthicsLEARNING OBJECTIVES: LO - 1NATIONAL STANDARDS: United States - BUSPROG: EthicsLOCAL STANDARDS: United States - OH - Default City - AICPA Critical ThinkingKEYWORDS: Bloom's: Knowledge13.
There is no debate that employees have an absolute right to free expression to make negative posts in social mediaabout other employees and managers.a. FalseANSWER: FalsePOINTS: 1DIFFICULTY: EasyREFERENCES: Business Ethics and Social MediaLEARNING OBJECTIVES: LO - 1NATIONAL STANDARDS: United States - BUSPROG: EthicsLOCAL STANDARDS: United States - OH - Default City - AICPA Risk AnalysisKEYWORDS: Bloom's: Knowledge14.
Many companies have provided guidelines about what is appropriate when making posts on social media accounts.a. FalseANSWER: TruePOINTS: 1DIFFICULTY: EasyREFERENCES: Business Ethics and Social MediaLEARNING OBJECTIVES: LO - 1NATIONAL STANDARDS: United States - BUSPROG: EthicsLOCAL STANDARDS: United States - OH - Default City - AICPA Critical ThinkingKEYWORDS: Bloom's: Knowledge15. No one believes that judging a job candidate based on what he or she does outside the work environment is ethical.a. FalseANSWER: FalsePOINTS: 1DIFFICULTY: EasyREFERENCES: Business Ethics and Social MediaLEARNING OBJECTIVES: LO - 1NATIONAL STANDARDS: United States - BUSPROG: EthicsLOCAL STANDARDS: United States - OH - Default City - AICPA Critical ThinkingKEYWORDS: Bloom's: Knowledge.16. A company can broadly prohibit its employees from criticizing the company via social media.a. FalseANSWER: FalsePOINTS: 1DIFFICULTY: EasyREFERENCES: Business Ethics and Social MediaLEARNING OBJECTIVES: LO - 1NATIONAL STANDARDS: United States - BUSPROG: EthicsLOCAL STANDARDS: United States - OH - Default City - AICPA Critical ThinkingKEYWORDS: Bloom's: Knowledge17.
Ethical reasoning is the process through which an individual links his or her moral convictions or ethical standards tothe particular situation at hand.a. FalseANSWER: TruePOINTS: 1DIFFICULTY: EasyREFERENCES: Approaches to Ethical ReasoningLEARNING OBJECTIVES: LO - 2NATIONAL STANDARDS: United States - BUSPROG: EthicsLOCAL STANDARDS: United States - OH - Default City - AICPA Risk AnalysisKEYWORDS: Bloom's: Knowledge18. Duty-based ethical standards often come from religious precepts or through philosophical reasoning.a. FalseANSWER: TruePOINTS: 1DIFFICULTY: EasyREFERENCES: Approaches to Ethical ReasoningLEARNING OBJECTIVES: LO - 2NATIONAL STANDARDS: United States - BUSPROG: EthicsLOCAL STANDARDS: United States - OH - Default City - AICPA Critical ThinkingKEYWORDS: Bloom's: Knowledge19. According to German philosopher Immanuel Kant, individuals should evaluate their actions in light of theconsequences that would follow if they were the only members of society that acted in that way.a.
FalseANSWER: FalsePOINTS: 1DIFFICULTY: EasyREFERENCES: Approaches to Ethical ReasoningLEARNING OBJECTIVES: LO - 2.NATIONAL STANDARDS: United States - BUSPROG: EthicsLOCAL STANDARDS: United States - OH - Default City - AICPA Critical ThinkingKEYWORDS: Bloom's: Knowledge20. Absolute mandates such as the commandment “Thou shalt not steal” can be justifiably broken if there is a benevolentmotive.a. FalseANSWER: FalsePOINTS: 1DIFFICULTY: EasyREFERENCES: Approaches to Ethical ReasoningLEARNING OBJECTIVES: LO - 2NATIONAL STANDARDS: United States - BUSPROG: EthicsLOCAL STANDARDS: United States - OH - Default City - AICPA Critical ThinkingKEYWORDS: Bloom's: Knowledge21. The categorical imperative cannot be applied to many business actions.a. FalseANSWER: FalsePOINTS: 1DIFFICULTY: EasyREFERENCES: Approaches to Ethical ReasoningLEARNING OBJECTIVES: LO - 2NATIONAL STANDARDS: United States - BUSPROG: EthicsLOCAL STANDARDS: United States - OH - Default City - AICPA Critical ThinkingKEYWORDS: Bloom's: Knowledge22. In ethical terms, a cost-benefit analysis is an assessment of the negative and positive effects of alternative actions onindividuals.a. FalseANSWER: TruePOINTS: 1DIFFICULTY: EasyREFERENCES: Approaches to Ethical ReasoningLEARNING OBJECTIVES: LO - 2NATIONAL STANDARDS: United States - BUSPROG: EthicsLOCAL STANDARDS: United States - OH - Default City - AICPA Critical ThinkingKEYWORDS: Bloom's: Knowledge23.
According to utilitarianism, it matters how many people suffer a negative effect from an act.a. FalseANSWER: True.POINTS: 1DIFFICULTY: EasyREFERENCES: Approaches to Ethical ReasoningLEARNING OBJECTIVES: LO - 2NATIONAL STANDARDS: United States - AICPA: BB-Critical ThinkingUnited States - BUSPROG: EthicsKEYWORDS: Bloom's: Knowledge24. According to utilitarianism, an action that affects the majority adversely is morally wrong.a. FalseANSWER: TruePOINTS: 1DIFFICULTY: EasyREFERENCES: Approaches to Ethical ReasoningLEARNING OBJECTIVES: LO - 2NATIONAL STANDARDS: United States - BUSPROG: EthicsLOCAL STANDARDS: United States - OH - Default City - AICPA Critical ThinkingKEYWORDS: Bloom's: Comprehension25.
Corporations can be good citizens by promoting goals that society deems worthwhile.a. FalseANSWER: TruePOINTS: 1DIFFICULTY: EasyREFERENCES: Approaches to Ethical ReasoningLEARNING OBJECTIVES: LO - 2NATIONAL STANDARDS: United States - BUSPROG: ReflectiveLOCAL STANDARDS: United States - OH - Default City - AICPA Risk AnalysisKEYWORDS: Bloom's: Knowledge26. Corporations can be perceived as owing ethical duties to groups other than their shareholders.a.
FalseANSWER: TruePOINTS: 1DIFFICULTY: EasyREFERENCES: Approaches to Ethical ReasoningLEARNING OBJECTIVES: LO - 2NATIONAL STANDARDS: United States - BUSPROG: ReflectiveLOCAL STANDARDS: United States - OH - Default City - AICPA Risk AnalysisKEYWORDS: Bloom's: Knowledge27. If the interests of different stakeholders conflict, it can be difficult to determine which group’s interest should receivegreater weight.a. FalseANSWER: TruePOINTS: 1DIFFICULTY: EasyREFERENCES: Approaches to Ethical ReasoningLEARNING OBJECTIVES: LO - 2NATIONAL STANDARDS: United States - AACSB DiversityLOCAL STANDARDS: United States - OH - Default City - AICPA Critical ThinkingKEYWORDS: Bloom's: Knowledge28. A business firm's profits may suffer if the firm is not a “good corporate citizen.”a. FalseANSWER: TruePOINTS: 1DIFFICULTY: EasyREFERENCES: Approaches to Ethical ReasoningLEARNING OBJECTIVES: LO - 2NATIONAL STANDARDS: United States - BUSPROG: ReflectiveLOCAL STANDARDS: United States - OH - Default City - AICPA Critical ThinkingKEYWORDS: Bloom's: Knowledge29. Managers should apply the same ethical standards to themselves and to their employees.a. FalseANSWER: TruePOINTS: 1DIFFICULTY: EasyREFERENCES: Making Ethical Business DecisionsLEARNING OBJECTIVES: LO - 3NATIONAL STANDARDS: United States - BUSPROG: EthicsLOCAL STANDARDS: United States - OH - Default City - AICPA Critical ThinkingKEYWORDS: Bloom's: Knowledge30.
An ethics program can clarify what a company considers to be unacceptable conduct.a. FalseANSWER: TruePOINTS: 1DIFFICULTY: EasyREFERENCES: Making Ethical Business DecisionsLEARNING OBJECTIVES: LO - 3NATIONAL STANDARDS: United States - BUSPROG: EthicsLOCAL STANDARDS: United States - OH - Default City - AICPA Risk AnalysisKEYWORDS: Bloom's: Knowledge.31. The effectiveness of a company’s code of ethics is determined by the commitment of the company leadership toenforcing the code.a.
FalseANSWER: TruePOINTS: 1DIFFICULTY: EasyREFERENCES: Making Ethical Business DecisionsLEARNING OBJECTIVES: LO - 3NATIONAL STANDARDS: United States - BUSPROG: EthicsLOCAL STANDARDS: United States - OH - Default City - AICPA Critical ThinkingKEYWORDS: Bloom's: Knowledge32. Some companies set up confidential systems for employees to “raise red flags” about suspected unethical practices.a. FalseANSWER: TruePOINTS: 1DIFFICULTY: EasyREFERENCES: Making Ethical Business DecisionsLEARNING OBJECTIVES: LO - 3NATIONAL STANDARDS: United States - BUSPROG: EthicsLOCAL STANDARDS: United States - OH - Default City - AICPA Risk AnalysisKEYWORDS: Bloom's: Knowledge33.
Setting realistic workplace goals can increase the probability that employees will act unethically.a. FalseANSWER: FalsePOINTS: 1DIFFICULTY: EasyREFERENCES: Making Ethical Business DecisionsLEARNING OBJECTIVES: LO - 3NATIONAL STANDARDS: United States - BUSPROG: ReflectiveLOCAL STANDARDS: United States - OH - Default City - AICPA Critical ThinkingKEYWORDS: Bloom's: Knowledge34. Management’s behavior sets the ethical tone of a firm.a. FalseANSWER: TruePOINTS: 1DIFFICULTY: EasyREFERENCES: Making Ethical Business DecisionsLEARNING OBJECTIVES: LO - 3.KEYWORDS: Bloom's: ApplicationNATIONAL STANDARDS: United States - BUSPROG: EthicsLOCAL STANDARDS: United States - OH - Default City - AICPA Critical ThinkingKEYWORDS: Bloom's: Knowledge35. Bribery of foreign government officials is both an ethical and a legal issue.a. FalseANSWER: TruePOINTS: 1DIFFICULTY: EasyREFERENCES: Global Business EthicsLEARNING OBJECTIVES: LO - 5NATIONAL STANDARDS: United States - BUSPROG: ReflectiveLOCAL STANDARDS: United States - OH - Default City - AICPA Critical ThinkingKEYWORDS: Bloom's: KnowledgeMultiple Choice36. Any decision by the management of Fast-Food Franchise Corporation may significantly affect itsa.
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 only.ANSWER: bPOINTS: 1DIFFICULTY: ModerateREFERENCES: Business EthicsLEARNING OBJECTIVES: LO - 1NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: ReflectiveLOCAL STANDARDS: United States - OH - Default City - AICPA Critical ThinkingKEYWORDS: Bloom's: Comprehension37.
Lia works for Media Marketing Company. Her job includes putting “spin” on the firm’s successes and failures.
In thiscontext, ethics consist ofa. “bad” versus “good” publicity.b. Questions of rightness and wrongness.c. The firm’s quarterly revenue.d. Whatever is legal. ANSWER:b POINTS:1DIFFICULTY: ModerateREFERENCES: Business EthicsLEARNING OBJECTIVES: LO - 1NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: ReflectiveLOCAL STANDARDS: United States - OH - Default City - AICPA Critical Thinking.KEYWORDS: Bloom's: Application38. John is sales manager for Kleen ‘N Brite Products, Inc.
Compared to John’s personal activities, his business activitiesmost likely involvea. More complex ethical issues.b.
No ethical issues.c. Simpler ethical issues.d.
The same ethical issues.ANSWER: aPOINTS: 1DIFFICULTY: ModerateREFERENCES: Business EthicsLEARNING OBJECTIVES: LO - 1NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: ReflectiveLOCAL STANDARDS: United States - OH - Default City - AICPA Critical ThinkingKEYWORDS: Bloom's: Application39. Mary works in the public relations department of New Trends Sales Company. Her job includes portraying NewTrends’s activities in their best light. In this context, ethics consist ofa.
A different set of principles from those that apply to other activities.b. The same moral principles that apply to non-business activities.c. Those principles that produce the most favorable financial outcome.d. Whatever saves New Trends’s “face.”ANSWER: bPOINTS: 1DIFFICULTY: ModerateREFERENCES: Business EthicsLEARNING OBJECTIVES: LO - 1NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: ReflectiveLOCAL STANDARDS: United States - OH - Default City - AICPA Critical ThinkingKEYWORDS: Bloom's: Application40. Flexo Trucking Company transports hazardous waste. Garn is a Flexo driver, whom the company knows drives longerhours than federal regulations permit.
One night, Garn exceeds the limit and has an accident. Spilled chemicalscontaminate Hill City’s water source, forcing the residents to move away. Flexo acted unethically becausea. Flexo showed reckless disregard for Hill City’s residents and others.b. Garn exceeded the federal time limit.c.
Harm was caused by an unfortunate accident.d. Hill City should have better protected its water source.ANSWER: aPOINTS: 1DIFFICULTY: ModerateREFERENCES: Business EthicsLEARNING OBJECTIVES: LO - 1NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: ReflectiveLOCAL STANDARDS: United States - OH - Default City - AICPA Risk Analysis.41. In studying the legal environment of business, Professor Dooley’s students also review ethics in a business context.Ethics includes the study of what constitutesa. Fair or just behavior.b. Financially rewarding behavior.c. Legal behavior.d. Religious behavior.ANSWER: aPOINTS: 1DIFFICULTY: ModerateREFERENCES: Business EthicsLEARNING OBJECTIVES: LO - 1NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: ReflectiveLOCAL STANDARDS: United States - OH - Default City - AICPA Critical ThinkingKEYWORDS: Bloom's: Application42.
Peak & Vale Accountants provides other firms with accounting services. Questions of what is ethical involve theextent to which Peak & Vale hasa. A legal duty beyond those duties mandated by ethics.b. An ethical duty beyond those duties mandated by law.c. Any duty beyond those mandated by both ethics and the law.d. Any duty when it is uncertain whether a legal duty exists.ANSWER: bPOINTS: 1DIFFICULTY: ModerateREFERENCES: Business EthicsLEARNING OBJECTIVES: LO - 1NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: ReflectiveLOCAL STANDARDS: United States - OH - Default City - AICPA Critical ThinkingKEYWORDS: Bloom's: Application43.
According to the view that New Allied Manufacturing Corporation is a “citizen,” New Allied is expected toa. Participate in bettering communities and society.b. Primarily generate revenue for its owners.c. Have no responsibility other than profit maximization.d. Efficiently allocate scarce resources.ANSWER: aPOINTS: 1DIFFICULTY: ModerateREFERENCES: Business EthicsLEARNING OBJECTIVES: LO - 1NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: ReflectiveLOCAL STANDARDS: United States - OH - Default City - AICPA LegalKEYWORDS: Bloom's: Application44.
Destiny and Eduardo, investors in Competitive Acquisitions Corporation, are dissatisfied with the profit-maximization theory of corporate objectives. These investors and others who look beyond profits and dividends mayconsider the triple bottom line, which does not include a corporation’s.a. Impact on people.b. Impact on the planet.d. Congressional lobbying activities.ANSWER: dPOINTS: 1DIFFICULTY: ModerateREFERENCES: Business EthicsLEARNING OBJECTIVES: LO - 1NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: ReflectiveLOCAL STANDARDS: United States - OH - Default City - AICPA Critical ThinkingKEYWORDS: Bloom's: Application45.
David, the chief accounting officer of Tension Fencing Corporation, wants to be sure that all the company’s accountsare legal and ethical. Sometimes, however, he is unsure exactly what is legal and what is illegal. David shoulda. Not worry about what is legal or illegal as long as the corporate executives benefit in the short run.b. Try his best to not do anything illegal and keep documentation showing that he always acts in good faith.c. Not worry about what is legal or illegal as long as it benefits the shareholders.d.
Not worry about what is legal or illegal as long as it benefits the chief executive of the corporation.ANSWER: bPOINTS: 1DIFFICULTY: ModerateREFERENCES: Business EthicsLEARNING OBJECTIVES: LO - 1NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: ReflectiveLOCAL STANDARDS: United States - OH - Default City - AICPA LegalKEYWORDS: Bloom's: Application46. Eden, the chief executive officer of Flo-Thru Piping Corporation, wants to en-sure that Flo-Thru’s activities are legaland ethical. The best course for Eden and Flo-Thru is to act ina. Good faith.b. Ignorance of the law.c. Regard for the firm’s shareholders only.d.
Their own self interest.ANSWER: aPOINTS: 1DIFFICULTY: ModerateREFERENCES: Business EthicsLEARNING OBJECTIVES: LO - 1NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: ReflectiveLOCAL STANDARDS: United States - OH - Default City - AICPA Critical ThinkingKEYWORDS: Bloom's: Application47. With respect to the potential for Great American Discount Stores, Inc., and any other major corporation to sufferdamage to its reputation or loss of profits through negative publicity, the Internet hasa. Increased the potential.b. Decreased the potential.c. Had no impact.d. Allowed a company to keep negative information or opinions hidden.ANSWER: aPOINTS: 1DIFFICULTY: ModerateREFERENCES: Business EthicsLEARNING OBJECTIVES: LO - 1NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: ReflectiveLOCAL STANDARDS: United States - OH - Default City - AICPA Critical ThinkingKEYWORDS: Bloom's: Application48. PriceLess Retail Corporation specifies that its employees should not use social media to damage the company, harmanother person’s reputation, or violate company policies.
An employee who violates these rules may be subject todiscipline and could be fired. According to the National Labor Relations Board, this social media policya. Violates federal labor law.b.
Is too lenient toward employees.c. Is too stringent toward management.d.
Is necessary to prevent inaccurate statements from being spread across the Internet.ANSWER: aPOINTS: 1DIFFICULTY: ModerateREFERENCES: Business Ethics and Social MediaLEARNING OBJECTIVES: LO - 1NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: ReflectiveLOCAL STANDARDS: United States - OH - Default City - AICPA Critical ThinkingKEYWORDS: Bloom's: Application49. Ridgeline Excavation & Construction, LLC, creates an internal code of ethics. Like the codes of other firms,Ridgeline’s company code is nota. A set of rules that the company can enforce.c. An outline of the company’s policies.d. A guide for decision makers facing ethical questions.ANSWER: aPOINTS: 1DIFFICULTY: ChallengingREFERENCES: Business EthicsLEARNING OBJECTIVES: LO - 1NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: ReflectiveLOCAL STANDARDS: United States - OH - Default City - AICPA Critical ThinkingKEYWORDS: Bloom's: Application50. In business deals, Fiona, the chief executive officer of Snacks n’ Bites, Inc., follows duty-based ethical standards.These are most likely derived froma.
A corporate ethics code.b. A cost-benefit analysis.c. Philosophical reasoning.d.
The law.ANSWER: cPOINTS: 1DIFFICULTY: ModerateREFERENCES: Approaches to Ethical ReasoningLEARNING OBJECTIVES: LO - 2NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: ReflectiveLOCAL STANDARDS: United States - OH - Default City - AICPA Critical ThinkingKEYWORDS: Bloom's: Application51. Lyle, vice-president of sales for Mi-T Electric, Inc., adheres to Judeo-Christian re-lig-ious ethical standards. Withrespect to their application, these standards area. Utilitarian.ANSWER: aPOINTS: 1DIFFICULTY: ModerateREFERENCES: Approaches to Ethical ReasoningLEARNING OBJECTIVES: LO - 2NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: ReflectiveLOCAL STANDARDS: United States - OH - Default City - AICPA Critical ThinkingKEYWORDS: Bloom's: Application52.
Julia, the head executive of Fine Woolen Sweaters, Inc., is a committed Christian who strongly adheres to the TenCommandments. One of Julia’s employees is found to be stealing sweaters and giving them to a local homeless shelter. Juliais likely toa. Punish the employee for stealing even though the employee’s motive was benevolent.b. View the employee’s actions as justified because the employee was clothing the poor.c. Contribute more sweaters to the homeless shelter.d. Gently reprimand the employee without suggesting that the employee’s actions were unethical.ANSWER: aPOINTS: 1DIFFICULTY: ChallengingREFERENCES: Approaches to Ethical ReasoningLEARNING OBJECTIVES: LO - 2NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: ReflectiveLOCAL STANDARDS: United States - OH - Default City - AICPA Critical ThinkingKEYWORDS: Bloom's: Application53.
Carrie Ann works at Paper Products, Inc. She considers taking home a few sheets of stationery so she can write lettersto her ailing grandmother.
Since Paper Products produces thousands of sheets of stationery every day no one will miss thefew sheets she takes and company profits will not be affected. Carrie Ann then considers what would happen if everyemployee took some stationery home and decides not to take any. Carrie Ann is being influenced by.a. The categorical imperative.b.
The principle of rights.c. A cost-benefit analysis.d. Outcome-based ethics.ANSWER: aPOINTS: 1DIFFICULTY: ModerateREFERENCES: Approaches to Ethical ReasoningLEARNING OBJECTIVES: LO - 2NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: ReflectiveLOCAL STANDARDS: United States - OH - Default City - AICPA Critical ThinkingKEYWORDS: Bloom's: Application54. In making business decisions, Glenda, personnel manager for HVAC Maintenance, Inc., applies her belief that allpersons have fundamental rights.
A religious rule.b. The categorical imperative.c. The principle of rights.d. Utilitarianism.ANSWER: cPOINTS: 1DIFFICULTY: ModerateREFERENCES: Approaches to Ethical ReasoningLEARNING OBJECTIVES: LO - 2NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: ReflectiveLOCAL STANDARDS: United States - OH - Default City - AICPA Risk AnalysisKEYWORDS: Bloom's: Application55. Ryan, the owner of SuperMart Stores, Inc., adheres to the “principle of rights” theory. Under this theory, a key factorin determining whether a business decision is ethical is how that decision affectsa. The right determination under a cost-benefit analysis.b.
The rights of others.c. The “right”thing to do.d. The right to make a profit.ANSWER: bPOINTS: 1DIFFICULTY: ModerateREFERENCES: Approaches to Ethical ReasoningLEARNING OBJECTIVES: LO - 2NATIONAL STANDARDS: United States - BUSPROG: ReflectiveLOCAL STANDARDS: United States - OH - Default City - AICPA Critical ThinkingKEYWORDS: Bloom's: Application56. In making decisions for Smartt Investments, Rita uses a cost-benefit analysis. This is a part ofa. Duty-based ethics.b.
Kantian ethics.c. Rights-based ethics.d. Utilitarian ethics.ANSWER: dPOINTS: 1DIFFICULTY: ModerateREFERENCES: Approaches to Ethical ReasoningLEARNING OBJECTIVES: LO - 2NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: ReflectiveLOCAL STANDARDS: United States - OH - Default City - AICPA Critical ThinkingKEYWORDS: Bloom's: Application57. Hailey, a lawyer on the staff of International Group, always considers the consequences of an action rather than thenature of the action itself when making ethical decisions in a business context.
Hailey is applyinga. The utilitarian theory of ethics in business contexts.b. Religious beliefs in business contexts.c.
Kantian ethics in business contexts.d. The principle of rights theory of ethics in business contexts.ANSWER: aPOINTS: 1DIFFICULTY: ModerateREFERENCES: Approaches to Ethical ReasoningLEARNING OBJECTIVES: LO - 2NATIONAL STANDARDS: United States - BUSPROG: ReflectiveLOCAL STANDARDS: United States - OH - Default City - AICPA Critical ThinkingKEYWORDS: Bloom's: Application58.
Bob, research manager for CornAgri Products, Inc., applies utilitarian ethics to determine that an action is morallycorrect when it produces the greatest good fora. The fewest people.d. The most people.ANSWER: dPOINTS: 1DIFFICULTY: ModerateREFERENCES: Approaches to Ethical ReasoningLEARNING OBJECTIVES: LO - 2NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: ReflectiveLOCAL STANDARDS: United States - OH - Default City - AICPA Critical ThinkingKEYWORDS: Bloom's: Application59. In deciding questions of corporate social responsibility, Valley Disposal & Recycling, Inc., is concerned witha.
How the corporation can best fulfill any ethical duty to society.b. The effect on corporate profits of ignoring any ethical duty to society.c.
Whether the corporation owes any ethical duty to society.d. All of the choices.ANSWER: dPOINTS: 1DIFFICULTY: ModerateREFERENCES: Approaches to Ethical ReasoningLEARNING OBJECTIVES: LO - 2NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: ReflectiveLOCAL STANDARDS: United States - OH - Default City - AICPA Critical ThinkingKEYWORDS: Bloom's: Application60. MeatMen, Inc. Spends a great deal of money and effort to ensure that all employees are safe on the job, that allproducts are safe for consumers, and that the environmental impact of the corporation is minimal. MeatMen appears tostrongly believe in the concept ofa. The moral minimum.b. Corporate social responsibility.c.
“grey areas” in the law.d. Government oversight.ANSWER: bPOINTS: 1DIFFICULTY: ChallengingREFERENCES: Approaches to Ethical ReasoningLEARNING OBJECTIVES: LO - 2NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: ReflectiveLOCAL STANDARDS: United States - OH - Default City - AICPA Critical ThinkingKEYWORDS: Bloom's: Application61. Applied Business Corporation makes and markets its products nationwide. Under the stakeholder approach, to beconsidered socially responsible when making a business decision, Applied must take into account the needs ofa. Its consumers, the community, and society only.b. Its employees and owners only.c. Its employees, owners, consumers, the community, and society.d.
No one.ANSWER: cPOINTS: 1DIFFICULTY: ChallengingREFERENCES: Approaches to Ethical ReasoningLEARNING OBJECTIVES: LO - 2NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: ReflectiveLOCAL STANDARDS: United States - OH - Default City - AICPA Risk AnalysisKEYWORDS: Bloom's: Application62. A common ethical dilemma faced by the management of Spencer Hydraulics Corporation involves the effect that itsdecision will have ona. One group as opposed to another.b. The firm's competitors.c.
The government.d. Chamber of Commerce.ANSWER:POINTS:a1DIFFICULTY: ModerateREFERENCES: Approaches to Ethical ReasoningLEARNING OBJECTIVES: LO - 2NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: ReflectiveLOCAL STANDARDS: United States - OH - Default City - AICPA Critical ThinkingKEYWORDS: Bloom's: Application63. At a meeting of employees, Fuel Injection Design & Manufacturing, Inc.’s managers announce the creation of a newcompany-wide code of ethical conduct and the initiation of an ad campaign to publicize the new code. They also say thatany employees who do not adhere to the code will be discharged. The effectiveness of this code will be determined bya.
The commitment of company leadership to enforcing the code.b. The extent to which the employees comply with the code.c. A marketing campaign posted online to tout the firm’s ethical tone.d.
Management directing employees to “do as we say, not as we do.”ANSWER: aPOINTS: 1DIFFICULTY: ChallengingREFERENCES: Making Ethical Business DecisionsLEARNING OBJECTIVES: LO - 3NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: ReflectiveLOCAL STANDARDS: United States - OH - Default City - AICPA Critical ThinkingKEYWORDS: Bloom's: Application64. Precision Engineering Inc., like other corporations, is subject to laws that are broad in their purpose and their scope.Compliance with these laws is not always sufficient to determine “right” behavior becausea. The law does not codify all ethical requirements.b. Company codes are also sources of law.c. Business decisions can have negative impacts.d.
Ethical problems occur in business.ANSWER: aPOINTS: 1DIFFICULTY: ModerateREFERENCES: Making Ethical Business DecisionsLEARNING OBJECTIVES: LO - 3NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: ReflectiveLOCAL STANDARDS: United States - OH - Default City - AICPA Critical ThinkingKEYWORDS: Bloom's: Application65. Ergonomic Corporation convenes its employees for its managers to announce (1) a new company-wide ethical code ofconduct, (2) an ad campaign to publicize the new code, and (3) the discharge of employees who do not adhere to the code.One of the most effective ways to set a tone of ethical behavior within a business organization isa. To create an ethical code of conduct.b. To discharge employees who create the appearance of impropriety. C.to post a marketing campaign online touting the firm’s ethical tone. D.for management to direct employees to “do as we say,not as we do.”.ANSWER:POINTS:a1DIFFICULTY: ChallengingREFERENCES: Making Ethical Business DecisionsLEARNING OBJECTIVES: LO - 4NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: ReflectiveLOCAL STANDARDS: United States - OH - Default City - AICPA Critical ThinkingKEYWORDS: Bloom's: Application66. Straitway Company encourages its managers to behave ethically, reasoning that the employees will take their cuesfrom management.
One of the most important ways to create and maintain an ethical behavior workplace is for managementtoa. Demonstrate a commitment to ethical decision making.b. Discreetly engage in unethical or illegal acts.c. Look the other way when an employee engages in an unethical act.d.
Direct employees to “do as we say,not as we do.”ANSWER: aPOINTS: 1DIFFICULTY: ModerateREFERENCES: Making Ethical Business DecisionsLEARNING OBJECTIVES: LO - 4NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: ReflectiveLOCAL STANDARDS: United States - OH - Default City - AICPA Critical ThinkingKEYWORDS: Bloom's: Application67. Richard suspects his supervisor of unethical accounting practices. However, he does not want to lose his job if hereports the supervisor and the supervisor finds out who reported him. An important feature of online reporting systems likeNAVEX Global isa. The employee reporting the unethical behavior can do so anonymously.b.
The employee reporting the unethical behavior is financially compensated if he loses his job as a result of thereport.c. The employee reporting the unethical behavior must give his full name when making the report.d. The employee reporting the unethical behavior must have another employee supporting him.ANSWER: aPOINTS: 1DIFFICULTY: ModerateREFERENCES: Making Ethical Business DecisionsLEARNING OBJECTIVES: LO - 4NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: ReflectiveLOCAL STANDARDS: United States - OH - Default City - AICPA Critical ThinkingKEYWORDS: Bloom's: Application68. Margaret is the top manager of Pecans, Inc.
She sets strict ethical standards for all employees. Margaret, however,often takes some of the company’s best nuts and sells them from her house.
The ethical tone at Pecans, Inc. Likely to be good because Margaret has set such strict standards for her employees.b. Not likely to be good because although Margaret sets strict ethical standards for the other employees, she doesnot follow them.c. Not related to either Margaret’s ethical standards or her own unethical behavior.d. Not likely to be good because employees tend to resent strict ethical standards.ANSWER: bPOINTS: 1DIFFICULTY: ModerateREFERENCES: Making Ethical Business DecisionsLEARNING OBJECTIVES: LO - 4NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: ReflectiveLOCAL STANDARDS: United States - OH - Default City - AICPA Decision ModelingKEYWORDS: Bloom's: Application69.
Ethical standards would most likely be considered violated if Team Logos Merchandising Corporation deals with acompany in a developing nation thata. Agrees to produce goods at Team Logos’s desired price.b. Goes unnoticed by “corporate watch” groups.c. Routinely violates labor and environmental standards.d. Pays its workers less than the U.S. Minimum wage.ANSWER: cPOINTS: 1DIFFICULTY: ModerateREFERENCES: Global Business EthicsLEARNING OBJECTIVES: LO - 5NATIONAL STANDARDS: United States - BUSPROG: ReflectiveReflective - BUSPROG: ReflectiveLOCAL STANDARDS: United States - OH - Default City - AICPA Critical ThinkingKEYWORDS: Bloom's: Application70. To assist in detecting illegal bribes, International Civil Engineers, Inc., and all other U.S.
Companies musta. Conceal financial records that reveal past bribes.b.
Keep records that “accurately and fairly” reflect their financial activitiesc. Make bribes through third parties rather than directly to officials.d. Permit payments to foreign officials that are unlawful in that country.ANSWER: bPOINTS: 1DIFFICULTY: ChallengingREFERENCES: Global Business EthicsLEARNING OBJECTIVES: LO - 5NATIONAL STANDARDS: United States - BUSPROG: Reflective Thinking: Re - BUSPROG: Reflective ThinkingLOCAL STANDARDS: United States - OH - Default City - AICPA LegalKEYWORDS: Bloom's: ApplicationEssay71. Olaf, an executive with Pharma Product Distribution, Inc., has to decide whether to market a product that might haveundesirable side effects for a small percentage of users.
How should Olaf decide whether to sell the product? How doesthe standard of ethics that is applied affect this answer?ANSWER: When a corporate executive has to decide whether to market a product that might haveundesirable side effects for a small percentage of users but that would be beneficial for most.users, the decision turns on the benefit to the many versus the harm to the few.
Of course, allpossible precautions should be taken to protect the few. A more specific answer depends onwhich system of ethics is applied.From a religious duty-based perspective, the answer might be absolute: do not sell theproduct because some would be harmed, sell the product only to those who would not beharmed, or sell the product with clear warnings of the possible harm. Similar conclusionsmight be reached through a philosophical, “categorical imperative,” duty-based approach,which would consider the result if every corporation chose to sell the product. A principle-of-rights duty-based approach might likewise come to the same conclusions, reasoning that allpersons have a right to life, for example, and that the corporation has an ethical duty torespect that right and act accordingly. From a utilitarian perspective, under a cost-benefitanalysis, if the product were sold, it could benefit the greatest number of persons—future andcurrent employees, as well as shareholders, and most consumers. If there was “bad”publicity, and it was adverse enough to reduce sales, however, more persons could benefitfrom the decision not to market the product. Under any of the different corporate socialresponsibility theories, the decision whether to market the product would acknowledge thefirm’s duty to act ethically and be accountable to society.
There might be a balancing of theinterests of competing stakeholder groups or a shouldering of the responsibility to behave in asocially beneficial way as a good corporate citizen. Of course, the firm would likely have toaccept any legal liability that would arise from its sale of the product.To apply any of these approaches, the executive might evaluate the situation according to thesix guidelines for making ethical business decision.
Is the action legal? Is it in line with thecompany’s rules? If so, is it in accord with the “spirit” of the law, those policies, and one’sconscience?
Could it withstand the glare of publicity and satisfy promises made to others? Itseems probable that sales of the product would violate the company’s rules—at the leastbecause in the long run the sales could negatively impact corporate profits when some areharmed by the product’s use—and that, thus, the sales could not withstand publicity,promises to others, or any individual’s conscience.
Under the five-step procedure to reviewthe ethical conflicts, the first step is to specify the facts, the problem, and the ethicalprinciples at issue. The second step is to discuss potential actions and their effects. The thirdstep is to come to a consensus as to what to do. This consensus should withstand moralscrutiny (the fourth step) and fulfill corporate, community, and individual values (the fifthstep). It seems unlikely that a proposed sale of the product would survive the fourth step,under either a duty-based or an outcome-based ethical standard.POINTS: 1DIFFICULTY: ChallengingREFERENCES: Approaches to Ethical ReasoningBusiness EthicsMaking Ethical Business DecisionsLEARNING OBJECTIVES: LO - 1LO - 2LO - 3LO - 4NATIONAL STANDARDS: United States - AICPA: BB-Critical ThinkingUnited States - BUSPROG: EthicsKEYWORDS: Bloom's: Application72. Recreation & Sports Equipment Corporation sells a product that is capable of seriously injuring consumers whomisuse it in a foreseeable way. Does the firm owe an ethical duty to take this product off the market?
What conflicts mightarise if the firm stops selling this product?ANSWER: Ethical behavior can sometimes generate sufficient good will to warrant practicing it out of adesire for increased profits. By the same token, unethical behavior can sometimes generateenough bad publicity to warrant avoiding it out of the same desire.
A business firm’sactivities that are perceived as ethical and receive wide publicity can benefit the firm’s.owners in the short run-and even in the long run if the firm’s enhanced public imagecontinues to attract more consumers to its products. There is nothing unethical about makinga profit. It is the behavior that generates the profit that can be questionable. Business ethicsthus has a practical element. A business firm should act in its best interest. A firm interestedin profits should also be interested in the public’s opinion.
Of course, it is not a company’sfault when consumers misuse its product. If continuing to sell a product is not a strictviolation of the law, stopping its sale would likely reduce profits. This could impact thefirm’s owners, employees, and others. But suspending sales could reduce injuries, and itcould lead to increased profits from the sales of other products, if the suspension stopsnegative publicity. When a business entity decides to respond to what it sees as a moral orethical obligation by removing a product from the market, an ethical conflict is raisedbetween the firm and its employees and between the firm and its shareholders. This conflictarises directly out of the impact that the decision has on the firm’s profits.