Business Law 2.0

Question 1

ethics

Answer 1

the study of what is right and or good for humans and human behavior

Question 2

ethics pursues:

Answer 2

the questions of what people should do or what goals they should pursue

Question 3

what is wrong with the terms “right and wrong”

Answer 3

they are subjective

Question 4

do truths exist regarding what is right or wrong in ethics?

Answer 4

yes - ie: child pornography is wrong

Question 5

who can motivate a company ethically?

Answer 5

government, owners/shareholders, management, customers, etc.

Question 6

what are some examples of ethical issues that arise in business

Answer 6

working conditions, fair wages, environmental issues, product dangers, marketing techniques, etc.

Question 7

what is the seeing-knowing-doing process model

Answer 7

1. you can identify an ethical issue 2. you know what to do about the ethical issue 3. Pursues the ethical decision or action

Question 8

central authority

Answer 8

core set of beliefs (the bible)

Question 9

ethical relativism

Answer 9

the ethical actor decides for themselves the most ethical course of action

Question 10

what is the issue with ethical relativism

Answer 10

that the ethical actor can have different interpretations of what is right or ethical in different situations

Question 11

situational ethics

Answer 11

where the ethical act depends on the situation; not based on the ethical actor and what they believe (drag out of building by the hair)

Question 12

utilitarianism

Answer 12

doctrine that assesses good and evil and the greatest good for the greatest amount of people

Question 13

act utilitarianism

Answer 13

assesses each separate rate according to pleasure over pain

Question 14

what are the cardinal virtues

Answer 14

practical wisdom, temperance/moderation, justice, and fortitude/courage

Question 15

practical wisdom

Answer 15

knowing what to do in a particular situation

Question 16

temperance/moderation

Answer 16

the golden mean - or avoiding extremes

Question 17

justice

Answer 17

ensuring everyone gets what they’re dued (good or bad)

Question 18

fortitude or courage

Answer 18

acting while afraid

Question 19

what components make up a corporation

Answer 19

(descending) shareholders, board of directors, management, employees

Question 20

why are businesses leaning towards an “outside” BoD over an “inside” BoD

Answer 20

because of bias, outside BoD have more experience and what they best for the company but also have outside knowledge, whereas inside BoD may vote on something for personal gain rather than corporate benefit

Question 21

3 reasons why we should not expect corporations to improve society

Answer 21

1. the goal should be to maximize shareholder wealth as much as possible 2. they lack expertise to improve society 3. unfairness to workers and or customers

Question 22

3 reasons why we SHOULD expect corporations to improve society

Answer 22

1. if they do, they will be profitable 2. social contract theory 3. less governmental regulation

Question 23

what is social contract theory

Answer 23

“we permit you, therefore you owe us” if the government allows the business to exist, they must benefit society or the consumer in some way