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Flashcards in Ch 3 Test 1 Deck (69)
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1

TRUE/FALSE

Ethics is a philosophical concept that deals with values related to the nature of human conduct.

True

2

TRUE/FALSE

The field of business ethics recognizes that social values typically must yield to the profitability motive.

False

3

TRUE/FALSE

Moral standards based on positive law may allow businesses to conduct themselves unfairly so long as their actions are not illegal.

True

4

TRUE/FALSE

Civil disobedience is the remedy natural law proponents use to change positive law.

True

5

TRUE/FALSE

Kant’s theory understood that sometimes you have to use someone to achieve a one-sided benefit.

False

6

TRUE/FALSE

The theory of justice is based on the concept that if there were no laws or rules reasonable people would develop fair rules and standards.

True

7

TRUE/FALSE

Ethical egoism believes that feeling guilty about poor ethical decisions will lead to better future decisions.

False

8

TRUE/FALSE

Moral relativists believe that ethical decisions will differ based on circumstances.

True

9

TRUE/FALSE

In applying the stakeholder model of business ethics, only the interests of important constituencies affected by an action need to be satisfied.

False

10

TRUE/FALSE

There is often a conflict between the goal of making money for shareholders and the goal of solving social problems through business.

True

11

TRUE/FALSE

In addition to issues of social responsibility, business values and ethics play an important role in the success or failure of a business.

True

12

TRUE/FALSE

Trust is a fundamental basis of the capitalist system that is central to the expectations of investors, customers, and other firm stakeholders.

True

13

TRUE/FALSE

Unfortunately, there is no evidence that commitment to ethical values is linked with financial performance of business organizations.

False

14

TRUE/FALSE

Ethical violations can cause lasting detriment to a company's ability to do business through impacts on the company's reputation.

True

15

TRUE/FALSE

An accumulation of complaints from employees, customers, or investors can lead to imposition of restrictive new regulations and laws.

True

16

TRUE/FALSE

Unwillingness of businesses to voluntarily improve the ethics of their practices has little practical effect on the regulatory environment.

False

17

TRUE/FALSE

Under United States law, the legal owner (titleholder) of property is free to engage in any use of the property that he or she may desire.

False

18

TRUE/FALSE

Freedom from economic domination is a personal right protected under United States law.

True

19

TRUE/FALSE

Individual intentions, as expressed in contracts and wills, will not be given effect in the United States unless expressly authorized by law.

False

20

TRUE/FALSE

Federal laws on the disclosure in the sales of securities and shareholder relations were developed following the stock market crash of 1929.

True

21

TRUE/FALSE

Credit laws and laws regarding checks, notes and drafts were developed to help facilitate trade.

True

22

TRUE/FALSE

The often competing rights of both debtors and creditors are balanced and protected from excesses under United States law.

True

23

TRUE/FALSE

Mortgages, security interests, and surety relationships are legal mechanisms created primarily to promote stability and flexibility in trade.

False

24

TRUE/FALSE

Courts look at each case at a given point in time and are not concerned with former cases and rulings when making current decisions.

False

25

TRUE/FALSE

United States common law requires that case precedents be followed under all circumstances.

False

26

TRUE/FALSE

Despite the importance of ethical behavior for business success, few Fortune 500 companies have codes of ethics to resolve ethical dilemmas.

False

27

TRUE/FALSE

Differences among businesses preclude the development of any universal categories of ethical behavior.

False

28

TRUE/FALSE

Over half of all Fortune 500 firms train their employees to recognize and deal with particular types of behavior that breach their ethical codes.

True

29

TRUE/FALSE

Maintaining confidentiality is an ethical issue for both employees and company management.

True

30

TRUE/FALSE

Recognizing that an ethical dilemma exists is usually far more difficult than resolving the dilemma once its existence is recognized.

False