Ethical Considerations in Business Practices: Exam Insights

Question 1 Correct 6.25 points out of 6.25 Flag question Question text The _____ ethical tradition would see a simple situation of an agreement for an exchange between two parties as upholding respect for individuals by treating them as autonomous agents capable of pursuing their own ends. Select one: a. role-based b. rights-based c. rules-based d. strategy-based Question 2 Correct 6.25 points out of 6.25 Flag question Question text A simple situation in which two parties come together and freely agree to an exchange is only prima facie ethically legitimate because: Select one: a. research studies prove that a simple exchange does not involve unethical situations. b. it involves the consent of both parties involved and leaves no room for unethical acts. c. certain conditions must be met before it can be concluded that autonomy has been respected and mutual benefit has been achieved. d. it rejects the assumption that individuals are capable of pursuing their own ends. Question 3 Correct 6.25 points out of 6.25

Flag question Question text Unlike tort law, contract law states that: Select one: a. the only duties that a person owes are those that have been explicitly promised to another party. b. one owes other people certain general duties, even if one has not voluntarily assumed them. c. no matter how careful a business is in its product, if harm results from use, the business is liable. d. the reasonable person standard can be interpreted in various ways. Question 4 Correct 6.25 points out of 6.25 Flag question Question text Which of the following is the ethical basis for implied warranty of merchantability? Select one: a. Manufacturers would not sell a product if they had reason to believe that their product would harm consumers during normal use. b. Consumers would not consent to purchase a product if they had reason to believe that they would be harmed by it during normal use. c. Consumers understand products fully, and they are free to choose not to purchase certain things. d. A prudent business will never seek to limit its liability by explicitly disowning any promise or warranty. Question 5 Correct 6.25 points out of 6.25

Flag question Question text Identify a true statement about strict product liability laws in the United States. Select one: a. They are highly favored by the business community. b. They hold that the government must pay consumers in situations where neither the producer nor the consumer is at fault. c. They hold a business responsible for any harm from product use, even if it is not the result of business negligence. d. They are similar to the strict liability standards adopted by the European Union. Question 6 Correct 6.25 points out of 6.25 Flag question Question text Along with product safety, _____ is another area of marketing that has received significant legal and philosophical attention within business ethics. Select one: a. customer service b. distribution c. advertising d. manufacturing Question 7 Correct 6.25 points out of 6.25 Flag question

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Question text Consumer vulnerability occurs when: Select one: a. a person has an impaired ability to make an informed consent to the market exchange. b. a person has access to too much information about a product and the market exchange process. c. the consumer is treated as an end in itself. d. there are too many manufacturers in the market. Question 8 Correct 6.25 points out of 6.25 Flag question Question text According to economist John Kenneth Galbraith, advertising and marketing were creating the very consumer demand that production then aimed to satisfy. The assertion that consumer demand relies upon what producers have to sell is termed: Select one: a. the Hawthorne effect. b. the dependence effect. c. the reverse channel effect. d. the supplemental effect. Question 9 Correct 6.25 points out of 6.25 Flag question Question text UniCo—a multinational corporation that specializes in designing, developing, and selling consumer electronics—outsources manufacturing products to a third-world country company. Human rights activists have criticized UniCo for operating inhumane sweatshops at the manufacturing plants to gain profits. Although UniCo is not directly liable for the labor exploitation, it threatens to pull out its business from the contracted company if the laborers are not provided with dignified wages and

good working conditions. Which of the following responsibilities did the company fulfill in this scenario? Select one: a. Caveat emptor b. Implied merchantability c. Respondent superior d. Strict liability Question 10 Correct 6.25 points out of 6.25 Flag question Question text Market failure occurs when: Select one: a. no markets exist to create a price for important social goods. b. manufacturers use substitutes for certain resources. c. businesses conform to regulatory requirements. d. no economic solutions are used to address environmental problems. Question 11 Correct 6.25 points out of 6.25 Flag question Question text In economic terms, all resources: Select one: a. are infinite because they can be replaced by substitutes. b. are distributed fairly by the government.

c. can be made available everywhere. d. are distributed efficiently in the market. Question 12 Correct 6.25 points out of 6.25 Flag question Question text Which of the following is a problem associated with the regulatory approach to environmental challenges? Select one: a. The regulatory model assumes that economic growth is environmentally and ethically benign. b. If people rely on the law to protect the environment, environmental protection will extend beyond the law. c. Business passively responds to consumer desires, and consumers are unaffected by the messages that business conveys. d. National regulations are the only means to effectively address international environmental challenges. Question 13 Correct 6.25 points out of 6.25 Flag question Question text The three goals of sustainable development that include economic, environmental, and ethical sustainability are referred to as the: Select one: a. tripartite goals. b. three pillars of sustainability. c. three-pronged charter.

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d. shoulders of sustainability. Question 14 Correct 6.25 points out of 6.25 Flag question Question text Which of the following is true of a service-based economy? Select one: a. A service-based economy tends to consumers' demands for clothes cleaning, floor covering, illumination, entertainment, and so forth. b. A service-based economy interprets consumer demand as a demand for washing machines, carpets, lights, consumer electronics, and so forth. c. A service-based economy weakens the production efficiencies. d. A service-based economy increases material and energy costs significantly. Question 15 Correct 6.25 points out of 6.25 Flag question Question text Identify the gatekeepers who guarantee that executives act on behalf of the stockholders' interests. Select one: a. Underwriters b. Board of directors c. Auditors d. District attorneys Question 16 Correct 6.25 points out of 6.25

Flag question Question text Which of the following is an internal mechanism that seeks to ensure ethical corporate governance? Select one: a. European Union 8 th Directive b. The Sarbanes-Oxley Act c. The COSO framework d. European Union 7 th Directive Question 17 Correct 6.25 points out of 6.25 Flag question Question text According to the Federal Sentencing Guidelines (FSG) for boards, a board must: Select one: a. work with executives to analyze the incentives for ethical behavior. b. avoid exercising reasonable oversight with respect to the effectiveness and implementation of an ethics program. c. leave the evaluation of all board policies, procedures, governance structure, and position descriptions to the executives. d. always resolve conflicts of interest in favor of an individual board member. Question 18 Correct 6.25 points out of 6.25 Flag question

Question text Tom, an employee of Electronixx, adjusted credits and debits of the company's ledger to show high profits. He also created false documents, underreported the company's income, and evaded paying taxes for a year. Tom can be convicted for _____. Select one: a. unethical insider trading b. conflicts of interest in corporate governance c. conflicts of interest in accounting d. unfair executive excessive compensation Question 19 Correct 6.25 points out of 6.25 Flag question Question text Which of the following scenarios gives rise to conflicts of interest in corporate governance? Select one: a. Senior executives determining the compensation received by board members b. Board members hand-selecting employees in their company c. A CEO not chairing the board of directors d. The absence of cross-fertilization of boards Question 20 Correct 6.25 points out of 6.25 Flag question Question text Sara, an employee of PentaComp Inc., passed on confidential information of her company to her friend. Her friend benefitted from selling PentaComp's stock based on the information shared by Sara. In this scenario, Sara can be convicted of _____. Select one:

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a. insider trading b. falsifying documents c. underreporting income d. evading taxes

Graded Exam #4 BUS

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