Business Ethics Essay

1496 Words Sep 17th, 2013 6 Pages
LAW & ETHICS IN THE BUSINESS ENVIRONMENT 6e
Test Bank
Revisions for the 7th edition by Eric D. Yordy, The W. A. Franke College of Business at Northern Arizona University
CHAPTER 1
Law, Ethics, Business: An Introduction

Questions
1. Select the best definition of ethics:
a. a fairly clear cut set of guides for decision making.
b. a set of relatively unclear principles regarding what we must do.
c. a set of relatively unclear principles regarding what we should do.
d. religious views about the world.
ANSWER: B PAGE: 1

2. Laws must be static and unyielding in order to provide stability for a society.
a. True
b. False
ANSWER: B PAGE: 1

3. Choose the statement regarding duty to rescue that is false:
a. There
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obedience to independent moral rules or duties
ANSWER: C PAGE: 25

10. Which of the following statements is INCORRECT regarding the rights of shareholders?
I. voting power on major issues and ownership in a portion of the company
II. right to transfer ownership and dividend entitlement
III. hire and fire management and select and appoint a chief executive
a. I and II
b. I, II, and III
c. I only
d. III only
ANSWER: D PAGE: 30

11. According to Citizens United v. Federal Election Commission, which of the following is not a reason to allow corporations the right to spend money and advertise for political candidates?
a. Political speech is the most important, and most protected, speech that exists. It is crucial to the democratic process that political speech be encouraged and heard.

b. The immense wealth of a corporation allows it to be the most accurate in providing messages to people.

c. Presidents and members of Congress often consult with corporate leaders on a number of issues, suppressing all corporate political speech would eliminate the ability for non-profits and smaller corporations to oppose or reject publicly the position of those larger corporations being consulted.

d. Restrictions do not protect minority or dissenting shareholders because they can address disagreement through the corporate democratic process. ANSWER: B PAGE: 33-34

12. Corporate director or officer decisions to
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