Chapter 01 - Ethics and BusinessChapter 01Ethics and BusinessTrue/False Questions1. Ethical decision making in business is limited to major corporate decisions with dramatic social consequences. Answer: FalseDifficulty: Easy Learning Objective: 01-01Topic: Introduction: Making the Case for Business EthicsBlooms Taxonomy: RememberAACSB: EthicsPage: 4Feedback: Ethical decision making in business is not at all limited to the type of major corporate decisions with dramatic social consequences. At some point, every worker, and certainly everyone in a management role, will be faced with an issue that will require ethical decision making.2. In business, every decision can be covered by economic, legal, or company rules and regulations.Answer: FalseDifficulty: Easy Learning Objective: 01-01Topic: Introduction: Making the Case for Business EthicsBlooms Taxonomy: RememberAACSB: EthicsPage: 4Feedback: At some point, every worker, and certainly everyone in a managerial role, will be faced with an issue that will require ethical decision making. Not every decision can be covered by economic, legal, or company rules and regulations.3. The direct costs of unethical business practice are more visible today than they have ever been before.Answer: TrueDifficulty: EasyLearning Objective: 01-01Topic: Introduction: Making the Case for Business EthicsBlooms Taxonomy: RememberAACSB: EthicsPage: 5Feedback: The direct costs of unethical business practice are more visible today than perhaps they have ever been before. The first decade of the new millennium has been riddled with highly publicized corporate scandals, the effects of which did not escape people of any social or income class.4. In a general sense, a business stakeholder is one who has made substantial financial investments in the business.Answer: FalseDifficulty: MediumLearning Objective: 01-01Topic: Introduction: Making the Case for Business EthicsBlooms Taxonomy: UnderstandAACSB: EthicsPage: 7Feedback: In a general sense, a business stakeholder will be anyone who affects or is affected by decisions made within the firm, for better or worse.5. A firms ethical reputation can provide a competitive advantage in the marketplace with customers, suppliers, and employees.Answer: TrueDifficulty: EasyLearning Objective: 01-01Topic: Introduction: Making the Case for Business EthicsBlooms Taxonomy: RememberAACSB: EthicsPage: 8Feedback: A firms ethical reputation can provide a competitive edge in the marketplace with customers, suppliers, and employees.6. The Grayson-Himes Pay for Performance Act was passed to amend the executive compensation provisions of the Emergency Economic Stabilization Act of 2008.Answer: TrueDifficulty: EasyLearning Objective: 01-01Topic: Introduction: Making the Case for Business EthicsBlooms Taxonomy: RememberAACSB: EthicsPage: 10Feedback:The Grayson-Himes Pay for Performance Act was passed “to amend the executive compensation provisions of the Emergency Economic Stabilization Act of 2008 to prohibit unreasonable and excessive compensation and compensation not based on performance standards.”7. Ethics refers to how human beings should properly live their lives.Answer: True Difficulty: EasyLearning Objective: 01-02Topic: Business Ethics as Ethical Decision MakingBlooms Taxonomy: RememberAACSB: EthicsPage: 11Feedback:Ethics refers not only to an academic discipline, but to that arena of human life studied by this academic discipline, namely, how human beings should properly live their lives. 8. Ethical business leadership is the skill to create circumstances in which bad people are taught to do good.Answer: FalseDifficulty: EasyLearning Objective: 01-03Topic: Business Ethics as Personal Integrity and Social ResponsibilityBlooms Taxonomy: RememberAACSB: EthicsPage: 12Feedback:Ethical business leadership is the skill to create the circumstances in which good people are able to do good, and bad people are prevented from doing bad.9. Norms appeal to certain values that would be promoted or attained by acting in a certain way.Answer: TrueDifficulty: MediumLearning Objective: 01-04Topic: Business Ethics as Personal Integrity and Social ResponsibilityBlooms Taxonomy: UnderstandAACSB: AnalyticPage: 17Feedback:Norms establish the guidelines or standards for determining what we should do, how we should act, what type of person we should be. Another way of expressing this point is to say that norms appeal to certain values that would be promoted or attained by acting in a certain way.10. Technically speaking, values are not necessarily positive or ethical in nature.Answer: TrueDifficulty: MediumLearning Objective: 01-04Topic: Business Ethics as Personal Integrity and Social ResponsibilityBlooms Taxonomy: UnderstandAACSB: EthicsPage: 18Feedba