1.CSR as a worldwide movement has over the years been _________.

A.mainly manifested among medium-sized companies

B.mostly confined to the United States

C.increasingly under criticism

D.gaining increased acceptance

2.Advertising is considered to be unethical if it is _________.

A.untruthful

B.expensive

C.harmful

D.tacky

3.The notion of due process can be used to argue against employment at will because _________.

A.employees should own the products of their labor

B.employment at will can be arbitrary

C.property rights are most fundamental

D.due process requires a written contract

4.Discrimination is widely considered unethical largely because it is _______.

A.unjust

B.illegal

C.harmful

D.merited

5.It is not generally illegal to discriminate on the basis of ________.

A.sex

B.age

C.ability

D.nationality

6.What is the most fundamental drawback of having cost-benefit analyses serve as the basis for ethical decisions in business?

A.Some things to no really have value.

B.A determinate value must be placed on things that have incalculable value.

C.Cost-benefit analysis are time-consuming and require specialized skill.

D.Cost-benefit analyses require a commitment to consequentialism.

7.A market economy is based fundamentally on _______.

A.ethical motivations

B.the profit motive

C.human welfare

D.manufacturing

8.A market with perfect competition would require ________.

A.agents to not be rational

B.that there be no contracts

C.that ethics not be necessary

D.ethical guidelines to be legally codified

9.It is not ethically sufficient to obey the law because ________.

A.the law does not apply to business in general

B.ethical constraints sometimes require that the law be ignored

C.ethics goes beyond what can be legally codified

D.the law itself is stricter than ethics

10.According to the "classical view," companies ________.

A.have a responsibility to their environment

B.can promote CSR without sacrificing profitability

C.are not essentially different from other types of organizations

D.exits for reasons other than promoting social responsibility

11.A fiduciary has the special responsibility to _________.

A.are for another's financial interests

B.sell goods as efficiently as possible

C.provide as much information as possible

D.take a professional interest in another's success

12.A market economy alone cannot sustain public goods because _________.

A.no one would want to take advantage of public goods

B.people would be free riders if they could be

C.people would try to sell each other public goods

D.participants in a market economy are imperfectly rational

13.Courts have difficulty determining _________.

A.what constitutes a trade secret

B.whether trade secrets should be protected

C.why companies want to protect trade secrets

D.the extent to which trade secrets have been pursued

14.The question of intellectual property ownership becomes most complicated when _________.

A.the intellectual property involves new technology

B.an inventor works for a company that manufactures the invention

C.the intellectual property is not related to work performed for the employer

D.the inventor owns the right to many different patents

15.One source of the idea that trade secrets are a form of property is the view that ________.

A.trade should always be free and unrestricted

B.each person owns the product of his/her labor

C.property should be had in common by all people

D.companies should be able to make a profit however they can

16.Why are legal restrictions placed on noncompetition agreements?

A.Most employees stay with the same company for a long time.

B.Most employees are not in a position to use trade secrets with another company.

C.They are difficult to enforce.

D.They can result in difficulty for an employee to subsequently find suitable work.

17.Arthur Andersen's double role with Enron represented a conflict of interest because _________.

A.Arthur Andersen made too much of a profit from one client

B.Enron executives did not reveal everything to Arthur Andersen that they should have

C.Arthur Andersen had incentive not to make criticisms that would hurt its consulting role

D.Arthur Andersen did not know Enron well enough to be both consulting and auditing the company

18.A whistle-blower is primarily motivated by ________.

A.retaliation

B.ethical concern

C.personal gain

D.fear of retribution

19.Which of the following is necessary for whistle-blowing to occur?

A.information

B.legal protection

C.a nondisclosure agreement

D.managing authority

20.One of the biggest issues in consumer privacy is when _______.

A.companies find out what customers most like

B.companies sell their collected information to others companies

C.companies use databases to store customer information

D.companies keep personal information on employees