A) Property rights are restricted when they conflict with the basic rules of society as embodied in law and custom. B) The connection between ownership and control that exists for personal property does not legally exist for corporate property. C) Investors buy their stocks with the hope of maximizing return on their investment. D) Stockholders in publicly traded corporations are better understood as investors rather than owners. 7 Which statement is true of Bowie's Kantian approach to business ethics? A) People have a duty both to not cause harm and to prevent harm. 5 4 6 4 7 4
B) Both causing no harm and preventing harm override other ethical considerations. C) While it is ethically good for managers to prevent harm or do some good, their duty to stockholders overrides these concerns. D) A narrow interpretation of Bowie's "cause no harm" imperative makes the duties faced by management under the neo-classical model significantly different from the classical model. 8 Select the reasons, historically speaking, why the modern corporation was established as a legal entity: A) Social benefits flow from corporate institutions. B) Corporations provide an efficient means for raising large amounts of capital needed to produce and distribute socially desired goods and services. C) Corporations distribute risks widely over large populations, minimizing the risk to any one individual. D) Corporations provide individuals with efficient means for the creation of wealth and for supplying jobs. E) All of the above. F) None of the above. 9 Which statement does not challenge the notion of a hypothetical social contract between society and corporations? A) If the social contract presupposes an amoral beginning, it seems to offer few guarantees that certain fundamental ethical rights will be protected under the contract. B) Micro-social contracts can be developed within particular local communities that establish the specific ethical rights and responsibilities within that community as long as they fit within the general limitations of the hypernorms governing any and all social contracts. C) It is difficult to specify exactly what responsibilities will be drawn from this hypothetical contract. D) If the theory already begins with certain fundamental rights and responsibilities, then the social contract may be irrelevant to providing an ethical justification for business' responsibilities. 10 Which statement represents a challenge to Evan's and Freedman's defense of the stockholder 8 6 9 4 10 4
theory against the classical model of corporate social responsibility? A) The law now recognizes a wide range of managerial obligations to such stakeholders as consumers, employees, competitors, the environment, the disabled. B) Courts and legislatures have recognized that the rights and interests of various constituencies affected by corporate decisions limit managers' fiduciary responsibility.
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- Business, Ethics, Corporate social responsibility, Norman Bowie