TJ_Comp 20_TB_Ch03 - Chapter 3—BUSINESS ETHICS, SOCIAL...

TJ_Comp 20_TB_Ch03
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Chapter 3—BUSINESS ETHICS, SOCIAL FORCES, AND THE LAW TRUE/FALSE 1. Ethics is a philosophical concept that deals with values related to the nature of human conduct. ANS: T MSC: AACSB Analytic 2. The field of business ethics recognizes that social values typically must yield to the profitability motive. ANS: F MSC: AACSB Analytic 3. Moral standards based on positive law may allow businesses to conduct them-selves unfairly so long as their actions are not illegal. ANS: T MSC: AACSB Analytic 4. Under a moral standard based on natural law, it may be necessary to violate positive law to preserve fundamental individual rights. ANS: T MSC: AACSB Analytic 5. Situational ethics is a moral system whose rigidity makes it unnecessary to examine motivation behind conduct in order to label it right or wrong. ANS: F MSC: AACSB Analytic 6. In applying the stakeholder model of business ethics, only the interests of important constituencies af- fected by an action need to be satisfied. ANS: F MSC: AACSB Analytic 7. There is often a conflict between the goal of making money for shareholders and the goal of solving social problems through business. ANS: T MSC: AACSB Analytic 8. In addition to issues of social responsibility, business values and ethics play an important role in the success or failure of a business. ANS: T MSC: AACSB Analytic 9. Trust is a fundamental basis of the capitalist system that is central to the expectations of investors, cus- tomers, and other firm stakeholders. ANS: T MSC: AACSB Analytic 10. Ethical conduct is desirable but not necessary; business could be done relying solely on positive law and its enforcement in the courts. ANS: F MSC: AACSB Analytic
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11. Economic growth tends to be fastest among developing countries where payments to key administrat- ors can increase transaction efficiency. ANS: F MSC: AACSB Analytic 12. Unfortunately, there is no evidence that commitment to ethical values is linked with financial perform- ance of business organizations. ANS: F MSC: AACSB Analytic 13. Evidence suggests that there may be relationships among ethical customer and employee relations and long-term ability to pay dividends. ANS: T MSC: AACSB Analytic 14. Ethical violations can cause lasting detriment to a company's ability to do business through impacts on the company's reputation. ANS: T MSC: AACSB Analytic 15. An accumulation of complaints from employees, customers, or investors can lead to imposition of re- strictive new regulations and laws. ANS: T MSC: AACSB Analytic 16. Unwillingness of businesses to voluntarily improve the ethics of their practices has little practical ef- fect on the regulatory environment. ANS: F MSC: AACSB Analytic 17. Under U.S. law, the legal owner (titleholder) of property is free to engage in any use of the property that he or she may desire. ANS: F
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