TBCH02RF - CHAPTER 2 Ethics and the Law TRUE FALSE...

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C H A P T E R 2 Ethics and the Law T RUE F ALSE Q UESTIONS 1. Compliance with the law is the baseline for effective and responsible managerial action. ANSWER: True SKILL LEVEL: AACSB Ethics OBJECTIVE: AICPA Legal 2. Boycotting is a way in which customers show displeasure with unethical corporate activity. ANSWER: True SKILL LEVEL: AACSB Analytic OBJECTIVE: AICPA Legal 3. Employment-at-will is mandated by federal law. ANSWER: False SKILL LEVEL: AACSB Analytic OBJECTIVE: AICPA Legal 4. Ethics and law are unrelated. ANSWER: False SKILL LEVEL: AACSB Ethics OBJECTIVE: AICPA Legal 5. The chief executive officer plays the most significant role in instilling a sense of ethics throughout the organization. ANSWER: True SKILL LEVEL: AACSB Ethics OBJECTIVE: AICPA Legal 6. Nobel Prize winner in economics Milton Friedman asserts that the only guiding criterion for the corporation should be profitability within the confines of the law. ANSWER: True SKILL LEVEL: AACSB Ethics OBJECTIVE: AICPA Legal 7. Employees are not stakeholders of a corporation. ANSWER: False SKILL LEVEL: AACSB Ethics OBJECTIVE: AICPA Legal 1
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2 ETHICS AND THE LAW 8. Although high ethical standards are admirable, it is an accepted fact that ethical behavior reduces corporate performance. ANSWER: False SKILL LEVEL: AACSB Ethics OBJECTIVE: AICPA Legal 9. Managers should remember that there is usually only one ethically correct way to look at a situation. ANSWER: False SKILL LEVEL: AACSB Ethics OBJECTIVE: AICPA Legal 10. The two main schools of ethical thought are teleological and deontological. ANSWER: True SKILL LEVEL: AACSB Ethics OBJECTIVE: AICPA Legal 11. Under the Teleological theory, the ethical good of an action is judged by the effect of the action on others. ANSWER: True SKILL LEVEL: AACSB Ethics OBJECTIVE: AICPA Legal 12. The Deontological theory focuses on the consequences of an action rather than on the motivation of the individual. ANSWER: False SKILL LEVEL: AACSB Ethics OBJECTIVE: AICPA Legal 13. Utilitarianism is a major deontological system that operates under the proposition that the ideal is to focus on motivation rather than on consequences. ANSWER: False SKILL LEVEL: AACSB Ethics OBJECTIVE: AICPA Legal 14. Utilitarianism seeks to equalize the benefit to everyone. ANSWER: False SKILL LEVEL: AACSB Ethics OBJECTIVE: AICPA Legal 15. Utilitarianism operates under the proposition that the ideal is to maximize the total benefit for everyone involved. ANSWER: True
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CHAPTER 2 ETHICS ANT THE LAW 3 SKILL LEVEL: AACSB Ethics OBJECTIVE: AICPA Legal 16. Kantian theory considers universalizability and reversibility. ANSWER: True SKILL LEVEL: AACSB Ethics OBJECTIVE: AICPA Legal 17. Rawlsian moral theory seeks to develop principles behind a “veil of information.” ANSWER: False SKILL LEVEL: AACSB Ethics OBJECTIVE: AICPA Legal 18. Rawlsian moral theory seeks to maximize the condition of the worst off person in society. ANSWER:
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This note was uploaded on 10/18/2011 for the course BUSS 240 taught by Professor Na during the Fall '10 term at Strayer.

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TBCH02RF - CHAPTER 2 Ethics and the Law TRUE FALSE...

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