President Abraham Lincoln very succinctly explained his rationale for his condemnation of and opposition to slavery, to wi

PA RT 1QUESTION 1President Abraham Lincoln very succinctly explained his rationale for hiscondemnation of and opposition to slavery, to wit: "As I would not be a slave,so I shall not be a master." Lincoln’s reasoning best exemplifies what ethicaltheory?a Legal Positivism of Thomas Hobbs.b Ethical Relativism of the Sophists.c The Categorical Imperative of. Immanuel Kantd Utilitarianism of Bentham and Mills..QUESTION 2Pursuant to traditional philosophical analysis which of the followingstatements is/are true?a Morals and morality are different from. ethics.b Intrinsic values are different from. instrumental values.c Cultural relativism is different from ethical. relativism.d All of the above..QUESTION 3Which of the following is NOT part of the beliefs of Kantian ethics?All like cases should be treated alike.Treating others as you want to be treated.Choosing a course of action that produces the greatestgood for society.Abiding by the rules applied to others in makingdecisions.QUESTION 4Paul, the chief financial officer for Assembled Products Corporation, attemptsto apply Kantian ethical precepts in making moral decisions and in doingbusiness. In applying Kantian ethical principles, Paul would primarily considerWhether the decision is legal or illegalWhat his emotional reaction would beWhether the action treats human beings withdignity and respectThe consequences of putting the decision intoeffect.QUESTION 5Kantian ethics can best be characterized by:The consultation of an outside source, such as a book or person,for guidance.The belief that a person must decide what course of action isproper based on that person’s own set of beliefs or feelings.Determining which course of action produces the greatest amountof good for the greatest number of people.A set of universal moral rules based on reasoning which must beapplied regardless of consequences.QUESTION 6World Development Corporation suggests that its employees apply theCategorical Imperative to ethical issues that arise at work. This theoryrequires that the employeesSeek to overthrow unjust governments by any means at theirdisposalCategorize the issues according to profitability and legalityEvaluate their actions in light of how they treat human beingsTake whatever steps are necessary to survive since one can saycategorically that it is a “moral jungle” in the business world.QUESTION 7Which of the following is a correct statement?Plato likely would object to the hierarchy of authority found todayin the typical business corporation.For Aristotle, the highest good is the fulfillment of the physicalsenses, though he counsels moderation in seeking pleasures.Aristotle maintains in the Doctrine of the Mean that the virtuous ormoral choice is a rationally determined mean between twoextremes of deficiency or excess.An intelligent person resolves all moral issues by appealing to whatmost people feel is moral.QUESTION 8Juana applies Kant’s Categorical Imperative to decide whether to cheat on anexamination to get into an MBA program is the “right thing” to do. Thismeans that Juana evaluates her action in light ofWhether the “end” justifies the “means”Whether the action of cheating is moral in and of itselfWhether Juana feels that cheating is good or bad underthe circumstancesWhether she can cheat without getting caught.QUESTION 9Which of the following is a correct statement?According to the utilitarian ethical theory, a personal and subjective calculation of the goodis required since some people are more important and worthwhile than others.Utilitarianism underscores the long-term consequences of an action in determining itsmorality.Even though some consequences will never be fully knowable, autilitarian would advise that one guess and speculate as to theconsequences in order to determine the morality of an action.Since money is too materialistic a good, it cannot be used as a measurement in quantifyingpleasure and pain.QUESTION 10A problem with the Utilitarian ethical principle is that:It is difficult to foresee the long-term consequences of anaction.It is difficult to weigh and measure the good v. badconsequences of an action.It is difficult to ascertain how the good should be distributed.All are problems.PA RT 2QUESTION 1Albert is the Chief Financial Officer of a company that is regulated by theSarbanes-Oxley Act. Pursuant to this statute, Albert must:Comply with the Act’s certification statements.Not retaliate against whistleblowers.Not receive a personal loan from his company except for verylimited purposes.All of the above.QUESTION 2Lisa and Ann are disputing ownership of a piece of real estate. Lisa brings alawsuit to clear title to the property. This lawsuit must be heard:Before the state court in the county where the property is located.In the state supreme court since it has original jurisdiction of allreal estate lawsuits in the state.In federal court since this is a title issue.Wherever Lisa resides.QUESTION 3Omega Sales, Inc., promotes employees on the basis of color. Employeeswith darker skin color are passed over in favor of those with lighter skincolor, regardless of their race. This is prohibited bythe Americans with Disabilities Actof 1990.the Equal Pay Act of 1963.Title VII of the Civil Rights Act of1964.none of the above.QUESTION 4Janet is hired as a driver for Speedy Delivery, Inc. as an employee at-will. Herboss tells her that she MUST speed on the roads to deliver packages in atimely manner just like all the other Speedy drivers do. Janet refuses sincethis is a dangerous, reckless, as well as illegal practice. Her boss fires her fornot following orders. The boss also tells Janet that she cannot sue Speedy forwrongful discharge since she is only an employee at-will. Which of thefollowing is the most accurate statement?a The boss is right as anyone can be fired for virtually anything if. one is an employee at-will.b The boss is right since everyone speeds..c The boss is wrong if Janet is a lesbian..d The boss is wrong since being fired under these circumstances is. likely a violation of the Public Policy doctrine.QUESTION 5Masud, a high-tech employee of Global Tech, signs a covenant not tocompete with the firm in which Masud promises not to work for a competitorof Global if and when he leaves the company’s employ for any reason. Thispromise can be best characterized as:Unenforceable since it is a restraint of trade.Unenforceable in most states if Masud is a single-parent and gotlaid-off through no fault of his own when his job was outsourced toIndia.Enforceable but only if Global pays Masud severance for sixmonths in accordance with the federal Family Medical Leave Act.Enforceable if the time period and the duration of the covenant arereasonable and Masud had access to confidential proprietaryinformation.QUESTION 6Local Delivery Company and Regional Trucking, Inc., attempt to enter into acontract in electronic form. Under the Electronic Signatures in Global andNational Commerce Act (ESIGN Act), because this contract is in electronicform, itmay be denied legaleffect.may not be denied legaleffect.will be limited to certainterms.will not be enforced.QUESTION 7Best Toy Company begins marketing a new toy that is highly flammable. TheConsumer Product Safety Commission mayban the toy’s future manufacture and sale, and order that the toybe removed from the market.ban the toy’s future manufacture and sale nothing until there is an injury or damage on which to base anaction.order that the toy be removed from the market only.QUESTION 8The District of Columbia sues several big gun manufacturers contending thatthe guns they sell in large quantities legally in Virginia often illegally findtheir way into the District where they are used to commit crimes and toinjure residents of the district as well as the criminals. The District wants torecover its public hospital expenses from the gun manufacturers andaccordingly sues them for the tort of negligence. The likely result of thislawsuit will be:The District will win since guns are very dangerous products forwhich the gun manufacturers are absolutely liable for.The District will win if the residents who are shot by the guns donot have health insurance.The District will lose if it cannot establish a factual and proximatecausation connection between the original sale of the guns and theharm to the District residents.The District will lose since Virginia is a state and the District is nota state.QUESTION 9Allie, an adult, is injured while using a very sharp kitchen knife manufacturedby Fearless Cutting to prepare a dinner. The knife is manufactured accordingto Fearless’ product standards. There is an adequate handle for the knife, asheath to enclose the knife, but no warning on the box, sheath, or knife itselfthat the knife is very sharp. Allie sues Fearless pursuant to the doctrine ofstrict liability, contending that the knife is a defective product. The likelyresult of such a lawsuit would be:a Fearless loses since it is deemed to be an insurer of an ultra. hazardous product which caused harm to a consumer.b Fearless loses since there was no warning on the product that the. knife was sharp and could cut.c Fearless loses since the knife was a flawed product..d Allie loses since the product was not defective and a reasonable. person should have been aware of the risk of being cut by aknife.QUESTION 10Danielle is the sales agent representing her company in a Caribbean country.She has negotiated the sale of a large amount of perishable goods to a buyerin that country. The goods have arrived at the local port but only can be offloaded when the appropriate custom forms are stamped by the customsinspector. The inspector is taking his time; and Danielle is beginning to worryabout the condition of the goods. Consequently, Danielle makes a "good will"tip of $200 to the inspector who then promptly processes the forms, therebyreleasing the goods for shipment to the buyer. Under the Foreign CorruptPractices Act, Danielle likely will be deemed to be acting:Illegally by paying a bribe to a foreign government official.Illegally since the amount of the tip was too much for such a lowerlevel foreign government official.Legally since all payments to foreign government officials are legalso long as they are not high level officials.Legally since she made a "facilitating and expediting" payment.QUESTION 11Eagle Corporation contracts to sell to Frosty Malts, Inc., six steel mixers for$5,000. When Eagle fails to deliver, Frosty buys mix¬ers from GreatCompany, for $6,500. Frosty’s measure of damages is$6,500.$5,000.$1,500 plus incidentaldamages.nothing.QUESTION 12Kilgore, an electrician, was testing various fuses with a standard tester.Kilgore had not purchased any of these fuses but had been supplied them bya friend, a fellow electrician. While Kilgore was testing a Royal Crystal fusemanufactured by Big Electric Company, the fuse explodes, injuring Kilgore’seye. Upon later examination, it was discovered that this fuse had beenincorrectly wired during manufacture, despite the fact that Big ElectricCompany had exercised the highest degree of care and maintained thehighest standards of product quality control, testing, and inspection. Kilgoresues Big Electric Company for negligence, breach of warranty, and strictliability for her injuries. Which of the following is a true statement regardingthis lawsuit?A.B.C.D.Kilgore will prevail on the negligence claim since the productcaused him harm.Kilgore will prevail on the warranty claim if the product isdeemed to be not "merchantable."Kilgore will prevail on the strict liability claim if the product isdeemed to be "flawed."Both b. and c. are true.QUESTION 13Carl holds himself out as a partner of Delta Associates, a partnership, eventhough he has no connec¬tion to the firm. Carl obtains a loan based on themisrepresentation. Carl’s default on the loan results inCarl and Delta’s joint liability for theamount.Carl’s sole liability for the amount.Delta’s sole liability for the amount.neither Carl’s nor Delta’s liability.QUESTION 14Jill offers to sell her car to Kelly, stating that the offer will stay open for thirtydays. Jill may revoke the offerbefore Kelly accepts the offer.before thirty days have expired, whether or not Kelly hasaccepted the offer.only after Kelly accepts the offer.only after thirty days.QUESTION 15Memorial Hospital hires Large Construction Company to renovate itsemergency room. Construction Company submits plans that the Hospitalapproves. Construction Company completes the major renovation, paints theinterior, and supplies the necessary fixtures, equipment, and furnishings. TheHospital, however, rejects some of the furnishings because, due to the lackof oversight of a Construction supervisor, they do not exactly match theplans. The Hospital subsequently refuses to allow Construction Company tofinish the work or to collect any payment. Whereupon, Large ConstructionCompany sues for breach of contract. The most accurate statementregarding the resolution of this lawsuit is?A.B.C.D.Hospital wins since Construction’s performance was not perfectaccording to the Perfect Tender ruleHospital wins Construction’s supervisor was negligent.Construction wins since Hospital acted in a deceitful manner.Construction wins and recovers the contract price minus theamount necessary to correct the defects and finish the workpursuant to the Substantial Performance doctrine.QUESTION 16Gil sends a letter to Holly in which he falsely accuses her of embezzling. Thisis defamation if the letter is read bya public figure.any third person.Holly.only Holly’s employer or a potentialemployer.QUESTION 17Home Products Company issues common stock for sale to the public. If Irabuys ten shares of the stock, he has a proportionate interest with regard tocontrol only.earnings and net assetsonly.control, earnings, and netassets.none of the above.QUESTION 18Dan and Eve sign a contract under which Dan agrees to repair Eve’scomputer for $150. Later, they agree that Eve will pay the $150 directly toDan’s creditor, First State Bank. The bank isa intendedbeneficiary.QUESTION 19Ken, a teacher, sells Larry a parcel of land, claiming that it is "perfect" forcommercial development. Larry later learns that it is not zoned forcommercial uses. Larry may rescind the contractonly if Ken knew about the zoning law.only if Larry did not know about thezoning law.only if the zoning law was not commonknowledge.under no circumstances.QUESTION 20Carol is a salesperson who works for Delta Products, Inc. In determiningwhether Carol is Delta’s employee or an independent contractor, the mostimportant factor isthe degree of control that Delta exercises overCarol.the distinction between Delta’s business andCarol’s occupation.the length of the working relationship betweenDelta and Carol.the method of payment.PA RT 3QUESTION 1When it comes to doing traditionally and conventionally "bad" actions inbusiness, such as deceiving and misleading, Machiavelli would likely say:Do not do them since they are probably illegal.Do not do them since people may condemn them as immoral acts.Do them only if absolutely necessary and do them in a smart,clever, and crafty way.Do not do them since they are regarded as wrong andtransgressions by religions.QUESTION 2Today, critics of the corporation argue for various corporate governancereform proposals to improve the legal, moral, and socially responsiblebehavior of the corporation. Which of the following is the most convincingargument FOR these proposals?Corporate managers should never have any duty other than tomaximize profits for the shareholdersMarket forces invariably operate to deter any corporatemisbehaviorExisting law already establishes clear standards for what is and isnot moral corporate behavior globallyThese corporate governance reform proposals will help thecompany to act in a moral manner, especially when the law issilent or vague as to the legality of an action.QUESTION 3The Chinese government publicly executes convicted criminals of seriouscrimes, and then "harvests" and sells their organs to wealthy Westerners andpeople from the Middle East, presumably with the "consent" of the prisonersfacing execution. This practice is:a Immoral pursuant to Ethical Emotism if one initially feels. emotionally sick when reading or hearing about the practice.b Moral under Ethical Egoism if one desperately needs an organ. and has the money.c Moral pursuant to Ethical Relativism if one is in China and the. Chinese have no problems with and thus accept this practice ofexecutions and organ sales.d All of the above..QUESTION 4In the old, American, pre-Civil War South, slavery ethically could beconsidered:a Moral if one was a Legal. Positivist.b Moral if one was an Ethical. Relativistc Immoral if one was a Kantian.d All of the above..QUESTION 5In order to be considered a profession what attributes of a profession doesmanagement have to work on and develop?Autonomy and self-governance.Codes of ethics that apply to management as whole and are"policed" and enforceable.An oath with an appropriate ceremony when entering themanagement profession.All of the above.QUESTION 6Which of the following statements is true?Ethics focuses on the way in which ethical principles apply inmaking moral determinations in life.Ethics is not concerned with the way moral rules are derived.The immoral conduct of corporate management is not likely toaffect the behavior of lower level employees.Ethical codes of conduct cannot help to set the ethical tone of afirm.QUESTION 7Danny, an accountant for Engineering Associates, Inc., attempts to apply theduty-based approach to ethical reasoning in conflicts that occur on the job.This approach is based on the idea that a personHas a duty not to engage in unethical behavior no matter howdesirable the consequences may beHas a duty to conform one’s behavior to society’s ethical standardsHas a duty to one’s employer and family that is superior to anyduty owed to society as a wholeMay engage in unethical behavior if it achieves a greater good.QUESTION 8Abraham Lincoln’s famous condemnation of slavery, "So I would not be aslave, therefore I shall not be a master," best reflects what type of ethicalthinking:Ethical relativismUtilitarianismRousseau’s General WilltheoryKant’s CategoricalImperativeQUESTION 9Bribery of foreign government officials can be:Legal as a "facilitating and expediting" exception under the ForeignCorrupt Practices Act.Moral pursuant to Utilitarian ethics if all the stakeholders benefit.Moral pursuant to Ethical Relativism.All of the above.QUESTION 10A large business horizontal merger, such as the United Airlines – ContinentalAirlines merger, could be considered moral pursuant to:a Ethical egoism from the standpoint of the new gigantic merged. business despite some short-term expense, stress, anddislocation if the merger is approved by the government andoverall it benefits the company and its stakeholders in the longterm.b Utilitarianism if society benefits overall from the merger. although some employees (mainly middle managers) lost theirjobs and there is now less competition on some routes (but morecompetition on others).c Legal Positivism if the government approves the merger..d All of the above..

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