1) What is the internal contradiction unique to capitalism?

Competition can lead to successful companies eliminating competition.

Government regulations are unnecessary but politically popular.

Class conflict is inevitable and can't be avoided through ethical behaviors.

High worker wages discourage productivity rates.

2) In his Theory of Moral Sentiments, Smith argued that individuals usually ______ within the confines of morality.

self-regulate their free will

form self-transcendent habits

maximize pleasure and minimize pain

conform to the categorical imperative

3) An evolutionary perspective is necessary in order to understand how various conceptions of moral and immoral behaviors have developed over time.

True

False

4) Why is the total quality management of ethics process helpful for business ethics?

It provides a systematic approach to identifying the root cause of unethical actions.

It promotes ethical habit formation through imitation of moral exemplars.

It encourages businesses to maximize worker satisfaction.

It explains how human beings are designed to conform to the moral law

5) The Defense Industry Initiative was created so that companies could ______.

voluntarily implement self-regulations

hire better employees

avoid paying higher taxes

partner with government workers

6) If you are a business owner wishing to avoid excessive government regulations, what should you do?

Behave ethically because the more ethical one is, the more freedom one is granted.

Ignore any violations so you can claim plausible deniability for employee actions.

Petition the government to leave you alone.

Lobby congress to deregulate your industry in order to avoid scrutiny.

7) What argument should you make if you wanted to argue that capitalism is an ethically praiseworthy economic system?

Capitalism is a system designed to maximize human flourishing at the expense of profit margins.

Freedom means doing anything you want and capitalism promotes free actions.

Free people will choose to enter markets where there is the greatest need and opportunity.

Capitalism promotes human solidarity and protecting the vulnerable.

8) If you were a businessperson in England during the 1500s, why should you seek to join a chartered organization?

Charter members avoided jailtime for any past and future crimes.

Chartered organizations allowed for more risky business ventures and avoided certain punishments.

You could gain a high rank in the royal navy through participation in chartered organizations.

You would get to travel all over the world in relative safety and make lots of money in the process.

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9) Honesty, trust, integrity, and credibility are all important aspects of successful ______.

long-term organizational growth

Better Business Bureau recognition

stock price increases

Just Capital award winners

10 Why is the Fifth Amendment important for the conduct of commerce?

It gave the right to vote to anyone who had gainful employment.

It established the privacy clause which limits government interference.

It protects the right to property.

It declares that businesses are citizens and have free speech.

11) In the 1700s, why did business owners fight against unionization efforts in their workplaces?

Unionization led workers to act more unethically in the workplace.

Business owners didn't want to lose any profits because unions required goods to cost less.

Since they owned the business, they claimed their private property rights were violated by unions.

Unions had a history of violent behavior toward its own members.

12 One's view regarding whether society is getting better, getting worse, or staying the same is determined by ______.

scientific consensus

religious beliefs

how quality of life is measured

weather patterns

13 Why is the approach of the total quality management of ethics process preferable to simply blaming an employee for unethical action and disciplining them accordingly?

Immediately reporting a wrong will send a message to everyone else.

Blaming the employee will not identify the source of the problem.

Failing to address the concern will lead to more offenses occurring.

It costs too much money to hire a replacement.

14 Imagine that you are the CEO of a company and want it to become recognized as one of the world's most ethical companies. What is the ideal strategy to achieve this goal?

Build your business to be too big to fail, utilizing government help to prevent collapse.

Build ethical culture at the company, comply with ethics laws, and encourage social responsibility.

Encourage employees to overlook unethical behavior so it doesn't gain undue attention.

Create a marketing campaign for your company that talks up how ethical it is.