1. Business law is a vast body of state and federal law governing business activities that includes statutes (codes), common law, court cases, and: Choose 2 answers.

corporate citizenship.

ethics.

regulations.

constitutions.

2. Ethics is the consideration of how one should act, based on which of the following concepts?

the moral minimum

morality, or principles of right and wrong

cause and effect

strict legality and legal compliance

3. Under which principle of ethics would a person consider whether his or her action is one that every other person should take?

the principle of rights

religious principles of ethics

Kants categorical imperative

outcome-based ethics

4. When making a decision using the stakeholder theory of management, a business professional would place more weight on which of the following? Choose 2 answers.

the harm to customers from using the companys product over profits

the impact of its decision on the value of its stock

its profitability over the impact on employees

the impact of its decisions on employees over the profitability of the business

5. Which of the following activities is an example of corporate social responsibility?

careful compliance with employee safety regulations

establishment of a foundation that funds high school educational initiatives

ensuring all employees meet minimum licensure standards

funding a research project that supports the companys marketing initiative for a new product

6. Which of the following are methods of preventing unethical behavior? Choose 2 answers.

keeping an attorney on retainer

allowing lower-level managers to develop their own ethical rules

establishing a company code of ethics

terminating an employee for unethical behavior

7. Which of the following illustrates a financial or non-financial cost of unreported unethical behavior to a company? Choose 2 answers.

The Old Mill relocated one of its plants, at a cost of over $1 million, when it discovered it was polluting a local river.

Employee morale hit an all-time low when Scott, the line supervisor, ignored repeated instances of harassment by certain employees.

Sweet Home Diner lost half of its business when the community became outraged with the owner for failing to stop the racist social media postings of the restaurant manager.

Brown Shoe Manufacturing, Inc. recently lost one-third of its stitching room employees to a nearby competitor. The chief executive officer decided to forego a portion of his salary so the company could increase the salaries of all employees.

8. Under which theory of ethics would a decision be ethical if it provides the greatest benefit for the largest number of individuals?

duty-based ethics

utilitarianism

Kantianism

corporate social responsibility

9. A company exhibits responsible corporate citizenship when it:

develops a code of ethics.

maximizes profits for its shareholders.

expands globally.

uses its wealth and influence to benefit society as a whole.

10. Under the principle of rights, the term rights refers to:

the fundamental rights of human beings.

property rights.

shareholder rights.

citizenship rights.