Question: _law cases involve either two Individuals or two organizations.
Answer Options:
A. Civil
B. Legal realism
C. Criminal
D. Precedent
E. Public
Answer: A) Civil
Question: Jerrod is down on his luck and decides to rob a convenience store. When he is brought to trial, which of the following laws would be applied to him?
Answer Options:
A. CMI
B. Procedural
C. Private
D. Consumer
E. Criminal
Answer: E) Criminal
Question: Contracts, employment decisions, and payments to suppliers are protected by business law.
Answer Options:
True or False
Answer: True
Question: The decision of a state supreme court is binding on a lower court that is located in the same state.
Answer Options:
True or False
Answer: True
Question: Business law consists of the enforceable rules of conduct that govern commercial relationships.
Answer Options:
True or False
Answer: True
Question: A local Chamber of Commerce plans a seminar on “the social responsibility of business in our community.” What does that term reference?
Answer Options:
A. The responsibility of business to generate profit for its shareholders.
B. The responsibility of business to hold annual shareholder meetings.
C. The expectations that the community imposes on firms doing business inside its borders.
D. The expectations of employees regarding a livable wage.
E. The responsibility of business to generate profit for its stakeholders.
Answer: C) The expectations that the community imposes on firms doing business inside its borders.
Question: Which of the following is the application of ethics to special problems and opportunities experienced by those in business?
Answer Options:
A. Situational ethics
B. Consequentialism
C. Business ethics
D. Sarbanes-Oxley principles
E. Business utilitarianism
Answer: C) Business ethics
Question: Economist Milton Friedman argued that the only social responsibility of business is which of the following?
Answer Options:
A. Increase profits
B. Provide a living wage for employees
C. Improve customer service
D. Increase stakeholder value
E. Sustain the environment
Answer: A) Increase profits
Question: A large company is about to lay off several employees due to an economic recession. The company must make a difficult decision regarding whether to lay off higher-paid, experienced, older workers who have devoted years of service to the firm, or lower-paid, less experienced, younger workers who have not been with the company for very long. The company is faced with which of the following?
Answer Options:
A. An ethical mandate
B. Criminal Indictment
C. An ethical dilemma
D. A legal mandate
E. A social responsibility audit
Answer: C) An ethical dilemma
Question: If a business decides to act outside of the prevailing ethical norms of that community:
Answer Options:
A. It risks damage to its reputation and ill will.
B. It will be subject to a social audit performed by the local Chamber of Commerce.
C. It must only be concerned about the legal implications of its actions.
D. It will be prosecuted and subjected to a substantial criminal fine.
E. There should be no concerns because the business can move to another community if necessary.
Answer: A) It risks damage to its reputation and ill will.
Question: Which of the following is true regarding business ethics?
Answer Options:
A. Business ethics refers to standards of business conduct but does not result in a set of correct decisions.
B. Business ethics results in a set of correct decisions and does not simply refer to standards of business conduct.
C. Business ethics produces a list of correct business decisions that all ethical businesses will make so long as the theory of deontology is followed.
D. Business ethics produces a list of correct business decisions that all ethical businesses will make so long as the theory of rule utilitarianism is followed.
E. Business ethics produces a list of correct business decisions that all ethical businesses will make so long as the theory of virtue ethics is followed.
Answer: A) Business ethics refers to standards of business conduct but does not result in a set of correct decisions.
Question: How do law and business ethics relate to each other?
Answer Options:
A. Ethics is unrelated to the law because ethics answers only moral questions.
B. Ethics entirely determines what the laws will be, as ethics is focused on finding one right answer to every question.
C. The law establishes what is ethical, as anything that is legal is automatically ethical.
D. The law establishes ethical rules and boundaries because laws take multiple stakeholders into consideration.
E. Law and business ethics serve as an interactive system, informing and assessing each other.
Answer: E) Law and business ethics serve as an interactive system, informing and assessing each other.
Question: Which of the following is true about how ethical conceptions shape business law and business relationships in different countries?
Answer Options:
A. Ethics does not shape business law or business relationships because law and ethics are separate and not interrelated.
B. Business law and business relationships should be the same in all countries because ethics provides one correct answer to all questions.
C. Business law should be the same in all countries because protecting the rights of shareholders is always the ethically proper course of action.
D. Different ethical understandings exist in different countries, but fairness is the highest ethical standard so countries must create uniform laws.
E. Different ethical understandings prevail in different countries, so ethical conceptions shape business law and business relationships uniquely in each country.
Answer: E) Different ethical understandings prevail in different countries, so ethical conceptions shape business law and business relationships uniquely in each country.
Question: Which of the following is a consideration in meeting the minimal standard for a firm to be considered an ethical business?
Answer Options:
A. Meeting the requirements of deontology.
B. Meeting the requirement of the public disclosure test.
C. Meeting the requirement of utilitarianism.
D. Satisfying the company’s board of directors.
E. Considering the legality of a decision when choosing the means of production.
Answer: E) Considering the legality of a decision when choosing the means of production.