Question 1

A manager who deceives employees because he believes that the deception maximizes pleasure over pain is acting consistently with which ethical theory?

Accepted Answer

The manager's action is consistent with act utilitarianism, which suggests that an action is morally right if it results in the greatest amount of pleasure for the greatest number of people. By deceiving employees because he believes it maximizes pleasure over pain, the manager is applying the principle of act utilitarianism, focusing on the consequences of individual actions to determine their moral worth.

Question 2

A manager may think it is wrong to terminate a person whose spouse has a terminal illness because a company has an absolute obligation to support its employees when they are vulnerable. With which ethical theory is the business manager acting consistently?

Accepted Answer

Deontology focuses on the adherence to moral duties and rules, suggesting that certain actions are inherently right or wrong, regardless of their consequences. In this scenario, the manager believes in the absolute obligation to support employees during vulnerable times, aligning with deontological ethics which prioritize duty over outcomes.

Question 3

A difficulty with the application of virtue ethics is ________.

Accepted Answer

The challenge with virtue ethics often lies in the subjective nature of what constitutes "the good life," as different cultures and individuals may have varying interpretations of this concept.

Question 4

The ethical system in which the development of virtues, or positive character traits such as courage, justice, and truthfulness, is the basis for morality is called ________.

Accepted Answer

Virtue ethics focuses on the inherent character of a person rather than on the specific actions they perform, emphasizing the importance of developing good character traits or virtues.

Question 5

[Accounting Advice] Chris, a newly hired Certified Public Accountant, was asked by a business client, a chief executive officer, about the effect of the Sarbanes-Oxley Act on an accounting issue. Chris assured the client that the client should not be concerned about the act because it is very vague, unspecific, and difficult to understand. Chris also told the CEO that the CEO could not be held personally responsible, regardless of what happened, because only company business was involved. Finally, Chris told the CEO that there is no oversight involved with the act. Later that same day, Chris's coworker discovered that the CEO had been involved in misstating some financial reports and had also destroyed financial documents to cover up fraud. An employee at the company, Olivia, had informed the coworker as well as the SEC. When the issue was mentioned to the CEO, he immediately fired Olivia.
-Does the Sarbanes-Oxley act create a board of oversight; and, if so, what is it called?

Accepted Answer

The Sarbanes-Oxley Act established the Public Company Accounting Oversight Board (PCAOB) to oversee the audits of public companies, in order to protect the interests of investors and further the public interest in the preparation of informative, accurate, and independent audit reports.

Question 6

The duties we owe others imply that humans have fundamental rights. This ________ is foundational to Western culture and asserts that whether a business decision is ethical depends on how the decision effects the rights of all involved.

Accepted Answer

The correct answer is the Principle of rights, which posits that humans have fundamental rights and that ethical decisions should consider how they affect these rights. This principle is foundational to Western culture and emphasizes the importance of respecting individuals' rights in decision-making processes.

Question 7

[Fast Food Dilemma] Aiden, who just started at his new job as an assistant manager at a fast-food restaurant, wants to make a good impression. He thinks that things are going well. On only the second day on the job, however, he sees his manager, Debbie, slink out of the restaurant with a big box of hamburgers. She puts them in her car and speeds away. Aiden is fairly certain that Debbie did not pay for the hamburgers. Aiden asks advice of his best friend, Kyle; his girlfriend, Mia; his sister, Katie; and his dad, Joe. Kyle says that there are no real objective standards and that Aiden should just decide to do what is best for himself. Mia says that Aiden should think about the consequences and focus on the greatest benefit to all involved. She believes that it will do no real harm for Aiden to keep his mouth shut because the fast-food restaurant is making plenty of money and probably does not pay Debbie enough anyway. Plus, getting in trouble with Debbie could cause problems at work, and if Aiden loses his job, Aiden and Mia might have to put off their impending marriage. Katie says that on balance, following the rule of producing the greatest good would mean that he should report Debbie to her boss because stealing does not generally produce the greatest satisfaction. Aiden's dad says that as a matter of principle, Aiden should report Debbie to her boss because stealing is simply wrong.
-Which theory most accurately fits the advice given by Katie?

Accepted Answer

Katie's advice aligns with rule utilitarianism because she suggests that Aiden should follow the rule (reporting theft) that generally produces the greatest good or satisfaction for the greatest number of people.

Question 8

How is absolutism different from ethical relativism and situational ethics?

Accepted Answer

Absolutism posits that moral principles are universal and unchanging, unlike ethical relativism and situational ethics, which suggest that morality can vary based on culture, situation, or individual perspective.

Question 9

________ is one type of consequentialism.

Accepted Answer

Utilitarianism is a form of consequentialism because it evaluates the morality of actions based on their outcomes, specifically aiming for the greatest happiness for the greatest number.

Question 10

[Fast Food Dilemma] Aiden, who just started at his new job as an assistant manager at a fast-food restaurant, wants to make a good impression. He thinks that things are going well. On only the second day on the job, however, he sees his manager, Debbie, slink out of the restaurant with a big box of hamburgers. She puts them in her car and speeds away. Aiden is fairly certain that Debbie did not pay for the hamburgers. Aiden asks advice of his best friend, Kyle; his girlfriend, Mia; his sister, Katie; and his dad, Joe. Kyle says that there are no real objective standards and that Aiden should just decide to do what is best for himself. Mia says that Aiden should think about the consequences and focus on the greatest benefit to all involved. She believes that it will do no real harm for Aiden to keep his mouth shut because the fast-food restaurant is making plenty of money and probably does not pay Debbie enough anyway. Plus, getting in trouble with Debbie could cause problems at work, and if Aiden loses his job, Aiden and Mia might have to put off their impending marriage. Katie says that on balance, following the rule of producing the greatest good would mean that he should report Debbie to her boss because stealing does not generally produce the greatest satisfaction. Aiden's dad says that as a matter of principle, Aiden should report Debbie to her boss because stealing is simply wrong.
-Which theory most accurately fits the advice given by Kyle?

Accepted Answer

Kyle's advice reflects ethical relativism, suggesting there are no objective moral standards and that Aiden should do what he believes is best for himself, indicating a subjective approach to ethics.

Question 11

[Fast Food Dilemma] Aiden, who just started at his new job as an assistant manager at a fast-food restaurant, wants to make a good impression. He thinks that things are going well. On only the second day on the job, however, he sees his manager, Debbie, slink out of the restaurant with a big box of hamburgers. She puts them in her car and speeds away. Aiden is fairly certain that Debbie did not pay for the hamburgers. Aiden asks advice of his best friend, Kyle; his girlfriend, Mia; his sister, Katie; and his dad, Joe. Kyle says that there are no real objective standards and that Aiden should just decide to do what is best for himself. Mia says that Aiden should think about the consequences and focus on the greatest benefit to all involved. She believes that it will do no real harm for Aiden to keep his mouth shut because the fast-food restaurant is making plenty of money and probably does not pay Debbie enough anyway. Plus, getting in trouble with Debbie could cause problems at work, and if Aiden loses his job, Aiden and Mia might have to put off their impending marriage. Katie says that on balance, following the rule of producing the greatest good would mean that he should report Debbie to her boss because stealing does not generally produce the greatest satisfaction. Aiden's dad says that as a matter of principle, Aiden should report Debbie to her boss because stealing is simply wrong.
-Which theory most accurately fits the advice given by Mia?

Accepted Answer

Mia's advice aligns with act utilitarianism because she suggests considering the consequences and focusing on the greatest benefit for all involved, which is a core principle of act utilitarianism.

Question 12

An employer who cheats on his payroll and federal withholding tax because he believes that everyone has a right to cheat on their payroll tax would believe in a(n) ________.

Accepted Answer

The answer of An employer who cheats on his payroll...

Question 13

Kantian ethics is associated with which of the following ethical theories?

Accepted Answer

Kantian ethics is a form of deontology, which emphasizes duty, rules, and the inherent moral value of actions independent of their consequences.

Question 14

An ethical theory that urges managers to take those actions that provide the greatest pleasure after having subtracted the pain or harm associated with the action in question is called ________.

Accepted Answer

Utilitarianism is the ethical theory that focuses on outcomes and consequences, specifically aiming to maximize pleasure or happiness and minimize pain or harm. This approach evaluates the moral worth of an action based on its overall utility in providing the greatest happiness to the greatest number of people.

Question 15

________ would see murder in the realm of self-defense as a moral action as long as the murderer believes that the action is justified for his self-preservation.

Accepted Answer

Ethical relativism posits that moral standards are relative to cultures or individual beliefs. Therefore, if an individual believes that murder in self-defense is morally justified for their self-preservation, ethical relativism would accept this as a moral action within that individual's moral framework.

Question 16

Which statement is true concerning the relationship between ethical relativism and situational ethics?

Accepted Answer

Ethical relativism posits that moral standards are culturally based and therefore subject to a society's beliefs and practices, while situational ethics focuses on the context of a situation to determine the most loving or beneficial action, allowing for judgment of actions based on their outcomes rather than fixed moral rules. This makes A correct because it highlights the key difference: situational ethics allows for judgment of actions based on their context, unlike ethical relativism which is more about understanding and respecting different cultural norms without necessarily judging them.

Question 17

The advice given by Joe most accurately fits which theory?

Accepted Answer

The answer of The advice given by Joe most accurately...

Question 18

________ requires that we evaluate the morality of an action by putting ourselves in the position of the person that is facing the ethical dilemma.

Accepted Answer

Situational ethics focuses on the context of a moral decision, suggesting that the ethical action depends on the specifics of the situation rather than on absolute rules. It requires understanding and evaluating the morality of an action by considering the unique circumstances, which often involves putting oneself in the position of the person facing the ethical dilemma.

Question 19

Unlike ethical relativism and situational ethics, ________ holds that whether an action is moral does not depend on the perspective of the person facing the ethical dilemma.

Accepted Answer

The answer of Unlike ethical relativism and situational ethics, ________...

Question 20

What is a reason why the principle of deontology may be difficult to apply?

Accepted Answer

Deontology focuses on the adherence to duty or rules, regardless of the outcome. The difficulty in applying deontology arises from disagreements about the nature and hierarchy of these duties, as people have different views on what our obligations are to each other and which of these obligations should take precedence.

Quiz 2: Business Ethics