235 Exam 1 Spring 2014 For Students 1 
235 Exam 1 Spring 2014
True/False
Indicate whether the statement is true or false.
____ 1. Ethics is the branch of philosophy that focuses on what constitutes right and wrong behavior.
____ 2. Acting in good faith gives a business firm a better chance of defending its actions in court.
____ 3. Corporations can be perceived as owing ethical duties to groups other than their shareholders.
____ 4. Ethics is concerned with the fairness or justness of an action.
____ 5. Business ethics focuses on ethical behavior in the business world.
____ 6. Business ethics applies only to the owners, operators, and employees of corporations.
____ 7. The minimal acceptable standard for ethical behavior is compliance with the law.
____ 8. An action may be legal but not ethical.
____ 9. An action may be legal and ethical.
____ 10. Simply obeying the law does not fulfill all ethical obligations.
____ 11. Business ethics is consistent only with short-run profit maximization.
____ 12. The most common reason that ethical problems occur in business is an overemphasis on long-run profit maximization.
____ 13. The legality of an action is always clear.
____ 14. A business firm can sometimes predict whether a given action is legal.
____ 15. Managers must apply different standards to themselves than they apply to their employees.
____ 16. Ethical codes of conduct can set the ethical tone of a firm.
____ 17. An ethics program can clarify what a company considers to be unacceptable conduct.
____ 18. Setting realistic workplace goals can reduce the probability that employees will act unethically.
____ 19. Corporate ethical policies must be clearly communicated to be effective.
____ 20. Ethical standards based on religious teachings tend to be absolute.
____ 21. Ethical reasoning is the process through which an individual rationalizes whatever action he or she chooses to take.
____ 22. Under the principle of rights theory, one person's set of values is as "right" as
True/False
Indicate whether the statement is true or false.
____ 1. Ethics is the branch of philosophy that focuses on what constitutes right and wrong behavior.
____ 2. Acting in good faith gives a business firm a better chance of defending its actions in court.
____ 3. Corporations can be perceived as owing ethical duties to groups other than their shareholders.
____ 4. Ethics is concerned with the fairness or justness of an action.
____ 5. Business ethics focuses on ethical behavior in the business world.
____ 6. Business ethics applies only to the owners, operators, and employees of corporations.
____ 7. The minimal acceptable standard for ethical behavior is compliance with the law.
____ 8. An action may be legal but not ethical.
____ 9. An action may be legal and ethical.
____ 10. Simply obeying the law does not fulfill all ethical obligations.
____ 11. Business ethics is consistent only with short-run profit maximization.
____ 12. The most common reason that ethical problems occur in business is an overemphasis on long-run profit maximization.
____ 13. The legality of an action is always clear.
____ 14. A business firm can sometimes predict whether a given action is legal.
____ 15. Managers must apply different standards to themselves than they apply to their employees.
____ 16. Ethical codes of conduct can set the ethical tone of a firm.
____ 17. An ethics program can clarify what a company considers to be unacceptable conduct.
____ 18. Setting realistic workplace goals can reduce the probability that employees will act unethically.
____ 19. Corporate ethical policies must be clearly communicated to be effective.
____ 20. Ethical standards based on religious teachings tend to be absolute.
____ 21. Ethical reasoning is the process through which an individual rationalizes whatever action he or she chooses to take.
____ 22. Under the principle of rights theory, one person's set of values is as "right" as