Question 1

Which of the following statements is correct with regard to the conflict of interest idea in business?
A) Conflicts of interest exist only in peoples' minds.
B) A conflict of interest occurs when an activity benefits an individual at the expense of the employer.
C) A conflict of interest occurs when employees of equal rank have a disagreement.
D) A conflict of interest occurs when a boss and a subordinate have a disagreement.
E) All of the statements are correct.

Accepted Answer

A conflict of interest occurs when an activity benefits an individual at the expense of the employer. Conflicts of interest are not only in peoples' minds, but they can have real and damaging consequences for businesses. Disagreements between employees of equal rank or between a boss and a subordinate may not necessarily be conflicts of interest. Therefore, option B is the correct statement.

Question 2

What is the difference between illegal behaviour and unethical behaviour?
A) What is illegal varies from country to country, but what is unethical does not.
B) Illegal behaviour is that which breaks a country's laws, but unethical behaviour may not break any laws.
C) It is not possible to say what the difference is between illegal and unethical behaviour.
D) Illegal behaviour covers a broader range of issues than unethical behaviour.
E) There is no real difference between illegal and unethical behaviour.

Accepted Answer

Illegal behaviour refers to breaking the law, whereas unethical behaviour refers to acting in a way that is morally wrong or goes against accepted norms or standards. In some cases, unethical behaviour may not be illegal, but in instances where it does break the law, it is both illegal and unethical. The other options are incorrect, either because they do not accurately capture the difference between illegal and unethical behaviour or because they are too vague or ambiguous to be useful.

Question 3

John is a salesperson who feels that he is not paid nearly enough money for the work that he does. He therefore "pads" his expense account in order to receive increased financial benefits. John's behaviour would be seen as ethical according to which criterion?
A) Rights
B) Justice
C) Utility
D) Caring
E) None of these

Accepted Answer

John's behaviour is unethical according to all of the listed criteria. Padding his expense account is a form of dishonesty and goes against the principles of honesty and integrity, which are foundational ethical principles. It violates the principles of rights, as John is essentially stealing from the company by claiming expenses that he did not actually incur. It is unjust, as it could lead to other employees being terminated or reprimanded for similar behaviour, even if they are not engaging in unethical activities. It does not promote overall utility, as it can harm the financial health of the company and potentially lead to layoffs or decreased benefits for other employees. Finally, it does not show caring, as it prioritizes John's personal financial gain over the well-being of the company and his colleagues. Thus, John's behaviour is unethical according to all criteria.

Question 4

Marlene is a shoe buyer for a large department store. Six months ago, she accepted a free trip to Barbados from one of the companies that she buys shoes from. Now, the company is strongly hinting that it wants Marlene to increase the size of her next order, and Marlene feels some obligation to do so because of the free trip she received. Marlene is involved in
A) illegal behaviour.
B) a conflict of interest.
C) collusion.
D) illegal and unethical behaviour.
E) unethical behaviour.

Accepted Answer

Marlene is experiencing a conflict of interest because her ability to make an unbiased decision regarding her shoe orders may be compromised by the personal benefit she received from the company.

Question 5

Behaviour that conforms to individual beliefs and social norms about what is right and good is referred to as
A) social reaction behaviour.
B) ethical behaviour.
C) generally accepted behaviour.
D) collusional behaviour.
E) motivational behaviour.

Accepted Answer

Ethical behavior refers to behavior that is consistent with individual beliefs and social norms about what is right and good. It is guided by moral principles, such as honesty, fairness, and responsibility. Social reaction behavior, generally accepted behavior, collusional behavior, and motivational behavior do not necessarily involve adherence to ethical principles.

Question 6

A 2014 survey of global managers found that an average of ________ percent of managers felt that corruption was widespread in their country.
A) 10
B) 30
C) 40
D) 60
E) 70

Accepted Answer

The answer of A 2014 survey of global managers found...

Question 7

"Cooking the books" to make a company's financial situation look better than it really is illustrates a behaviour that is
A) ethical but illegal.
B) ethical and illegal.
C) unethical but legal.
D) unethical and illegal.
E) there is no consensus on how this behaviour should be classified.

Accepted Answer

"Cooking the books" involves manipulating financial records to misrepresent a company's financial situation, which is both unethical and illegal.

Question 8

With regard to the distinction between unethical and illegal behaviour, it is correct to say that
A) something that is illegal is also unethical.
B) a given act can be ethical, yet illegal.
C) the distinction between unethical and illegal behaviour has no practical significance.
D) it is impossible for something to be unethical and legal at the same time.
E) all of these are correct.

Accepted Answer

Unethical behavior refers to actions that violate moral standards, while illegal behavior refers to actions that violate laws or regulations. While some illegal behaviors may also be unethical, not all unethical behaviors are necessarily illegal. Therefore, it is possible for a given act to be ethical but illegal.

Question 9

Air Canada sued WestJet, claiming that WestJet had accessed an Air Canada website which contained confidential information. What was the outcome of the lawsuit?
A) The court ruled that there was nothing unethical about a person from WestJet accessing the website if they could figure out how to do it.
B) WestJet admitted it had behaved in an unethical fashion, paid Air Canada $5 million dollars, and gave $10 million to children's charities.
C) Air Canada was able to show that it had lost a lot of business because of the incident, and WestJet had to reimburse Air Canada for the lost business.
D) The court declined to rule on the case.
E) The court ruled that this was merely a competitive squabble between two companies and that no fine would be imposed.

Accepted Answer

WestJet admitted to unethical behavior, compensated Air Canada with $5 million, and also donated $10 million to children's charities as part of the resolution.

Question 10

The term "ethics" refers to
A) standards or moral values regarding what is right and wrong.
B) avoiding doing things that, if everyone did it, we would have a real mess.
C) believing what's right for one person is wrong for another.
D) conflicts of interest that develop between two co-workers.
E) bad behaviour by top managers in a company.

Accepted Answer

Ethics refers to the standards or moral values regarding what is right and wrong.

Question 11

________ refers to ethical or unethical behaviours by a manager or employee of an organization.
A) Social ethics
B) Social responsibility
C) Business ethics
D) Collusion
E) Cartelling

Accepted Answer

Business ethics refers specifically to ethical or unethical behaviours within the context of business or organizations. It takes into account the values and principles that guide decision-making in the workplace, including the treatment of employees, customers, and other stakeholders, as well as issues such as transparency, accountability, and honesty.

Question 12

What is the difference between "ethics" and "business ethics"?
A) The former refers to beliefs about what is right and wrong, while the latter doesn't deal with right and wrong, only with economic issues.
B) The former refers to a restricted range of acceptable behaviours, while the latter refers to a much broader range of acceptable behaviours.
C) There are no differences between the two terms.
D) The former refers to beliefs about what is right or wrong, while the latter refers to behaviours by managers or employees.
E) The former refers to the actions of government employees, while the latter refers to the actions of employees in private-sector firms.

Accepted Answer

Ethics refers to beliefs about what is right or wrong, whereas business ethics refers to the behaviors exhibited by managers or employees in a business setting. Business ethics focuses on the moral principles that guide behavior in the business world, such as honesty, integrity, fairness, and responsibility.

Question 13

Ethical and unethical behaviour is determined partly by the ________ and partly by ________.
A) society; culture
B) society; values
C) individual; culture
D) person; religion
E) culture; society

Accepted Answer

The answer of Ethical and unethical behaviour is determined partly...

Question 14

Which of the following behaviours is illegal?
A) Company executives encourage employees to invest in company stock while withholding information about financial problems.
B) An employee accepts a gift from a supplier in return for a large order.
C) A manager refuses to hire or promote a qualified visible minority in spite of company policy.
D) A manager underpays an employee, knowing that the employee can't afford to quit.
E) All of these actions are illegal.

Accepted Answer

The answer of Which of the following behaviours is illegal?
A)...

Question 15

Breaking the law in a totalitarian regime in order to carry out humanitarian efforts would probably be seen by most people as
A) ethical but illegal.
B) ethical and illegal.
C) unethical but legal.
D) unethical and illegal.
E) there is no consensus on how this behaviour should be classified.

Accepted Answer

Breaking the law in a totalitarian regime is illegal. However, if the intention is to carry out humanitarian efforts, it can be seen as ethical. Therefore, the statement "ethical but illegal" would be the best choice.

Question 16

A manager who discriminates against any ethnic minority in hiring exhibits behaviour that is
A) ethical but illegal.
B) ethical and illegal.
C) unethical but legal.
D) unethical and illegal.
E) there is no consensus on how this behaviour should be classified.

Accepted Answer

Discrimination on the basis of ethnicity is both unethical and illegal. It violates the basic principles of human rights and equality in the workplace. It is also prohibited under several anti-discrimination laws and regulations. Therefore, a manager who discriminates on this basis is engaging in unethical and illegal behavior.

Question 17

The practice of jeitinho is an element of business activity in which country?
A) Canada
B) Japan
C) Indonesia
D) Brazil
E) Czech Republic

Accepted Answer

Jeitinho is a cultural practice that is commonly used in Brazil, particularly in business settings, to overcome obstacles or find ways to achieve goals through informal and flexible means. It involves using personal connections, negotiation, and creativity to get things done, often bypassing rules or regulations. This practice is not commonly found in Canada, Japan, Indonesia, or the Czech Republic.

Question 18

Joe paid his subordinate John less than John deserved because Joe knew that John needed the job badly. Joe's behaviour is
A) illegal but not unethical.
B) unethical but not illegal.
C) both illegal and unethical.
D) neither illegal nor unethical.
E) It is not possible to say without determining how John feels about his pay.

Accepted Answer

Joe's behavior is unethical because he knowingly paid John less than he deserved, which is a violation of principles of fairness and justice. However, it is not necessarily illegal, as there may not be any specific laws governing this type of situation.

Question 19

The Personal Information Protection and Electronic Documents Act (PIPEDA)
A) is designed to protect electronic documents from computer hackers.
B) requires organizations to obtain consent before they collect, use, or disclose information about individuals.
C) has been declared unconstitutional.
D) prohibits organizations from using personal information about their employees.
E) applies almost exclusively to universities.

Accepted Answer

The Personal Information Protection and Electronic Documents Act (PIPEDA) requires organizations to obtain consent before they collect, use, or disclose information about individuals. The act applies to private sector organizations engaged in commercial activities in Canada, with the exception of provinces that have their own substantially similar legislation.

Question 20

.If a politician sits on a board that grants money to companies and that executive owns a company that is applying for a grant from the board, he or she is most likely facing a(n)
A) ethical dilemma.
B) utility norm.
C) illegal situation.
D) conflict of interest.
E) justice norm.

Accepted Answer

This situation describes a clear conflict of interest where the politician's personal interests (owning a company that is applying for a grant) may influence their decisions on the board. This creates a potential for bias and undermines the integrity of the decision-making process. It is important for politicians to avoid conflicts of interest and recuse themselves from decision-making in situations where they could benefit personally.

Quiz 3: Conducting Business Ethically and Responsibly

Which of the following statements is correct with regard to the conflict of interest idea in business?

What is the difference between illegal behaviour and unethical behaviour?

John is a salesperson who feels that he is not paid nearly enough money for the work that he does. He therefore "pads" his expense account in order to receive increased financial benefits. John's behaviour would be seen as ethical according to which criterion?

Behaviour that conforms to individual beliefs and social norms about what is right and good is referred to as

A 2014 survey of global managers found that an average of ________ percent of managers felt that corruption was widespread in their country.

"Cooking the books" to make a company's financial situation look better than it really is illustrates a behaviour that is

With regard to the distinction between unethical and illegal behaviour, it is correct to say that

Air Canada sued WestJet, claiming that WestJet had accessed an Air Canada website which contained confidential information. What was the outcome of the lawsuit?

The term "ethics" refers to

________ refers to ethical or unethical behaviours by a manager or employee of an organization.

What is the difference between "ethics" and "business ethics"?

Ethical and unethical behaviour is determined partly by the and partly by .

Which of the following behaviours is illegal?

Breaking the law in a totalitarian regime in order to carry out humanitarian efforts would probably be seen by most people as

A manager who discriminates against any ethnic minority in hiring exhibits behaviour that is

The practice of jeitinho is an element of business activity in which country?

Joe paid his subordinate John less than John deserved because Joe knew that John needed the job badly. Joe's behaviour is

The Personal Information Protection and Electronic Documents Act (PIPEDA)

.If a politician sits on a board that grants money to companies and that executive owns a company that is applying for a grant from the board, he or she is most likely facing a(n)