1. Jayne is opening her own bakery. As she develops her company policies, she is concerned about the morality of her actions and how those actions will affect her employees, her stakeholders, and herself. Jayne studying the rightness or wrongness of her actions as they apply to her business constitutes the study of:

morality.

the common good.

ethics.

business ethics.

2. Juan owns a manufacturing company that wants to expand its line of plastics. To expand and still make a profit, pollution into the local river will be significantly increased. In evaluating his decision, Juan tries to determine whether expanding the companys line of plastics would produce the greatest amount of good for the greatest number of people. In doing so, Juan is following the ethical principle known as:

the principle of rights.

utilitarianism.

duty based ethics.

religious ethical principles.

3. Karishma and Stephen, co-owners of Roundtree Corporation, are discussing a new benefits package they are considering for their employees. The proposed plan is more expensive for the company than the current plan but will offer better benefits to the employees. Stephen wants to decide based solely on the effect on the owners of the corporation, while Karishmas position is that the employees should be taken into consideration as well. Stephen is more concerned with the _____________ theory of management, and Karishma is more concerned with the __________ theory of management.

stakeholder; shareholder

shareholder; stakeholder

owner; employee

employee; owner

4. Samantha has been the top salesperson at her company for the last six months in a row. Samantha has been using high-pressure techniques to meet the unrealistically high sales quotas in her division, including marking up the price so she can offer a good discount to the customers, lying about the quality of the product, and telling customers that the items are one-of-a-kind when they are not. Her manager, Samuel, is aware of the tactics Samantha is using but does not say anything because Samantha makes their division look great. Here, the parties guilty of unethical behavior include:

Samuel only.

neither Samantha nor Samuel.

Samantha only.

Samantha and Samuel.

5. Alexander, the CEO of Westwind Baby Furnishings, received a report from one of his quality inspectors about a possible defect in the Baby Sleeptime Crib Westwind had just started to market. The report said the bed was not safe for older babies, because there was a chance it would collapse if the baby climbed up onto the railing. Westwind had manufactured 20,000 Baby Sleeptime Cribs and would lose a great deal of money if it could not market the cribs. Alexander decided to proceed with the sale of the cribs anyway, to maximize company short-run profits. Possible consequences Westwind could face for such unethical conduct include:

large settlements only.

bad publicity only.

lawsuits, large settlements, and bad publicity.

lawsuits only.