MULTIPLE CHOICE
1. Which of these factors distinguish business ethics from ethical decision-making?
A. There are no particular differences.
B. Business activity has a distinctive economic character.
C. Business activity takes place in large, impersonal organizations.
D. Both B and C.----------
E. None of these.
2. The distinction between morality and ethics is best expressed by which of the following?
A. Morality is society’s view of behavior that is right or wrong; ethics is the philosophical study of
morality.------------------
B. Ethics is society’s view of behavior that is right or wrong; morality is the philosophical study of
morality.
C. Legality is society’s view of behavior that is right or wrong; morality is the philosophical study of
morality.
D. There is no distinction between morality and ethics.
3. According to Boatright, which of the following conditions must any ethical theory have?
A. Morality is a matter of what we personally believe.
B. Morality is a matter of self-interest.
C. Morality is a matter of impartiality.---------------------------
D. Morality is a matter of what society wants.
4. What are the levels on which ethical decision making occurs?
A. Individual
B. Organizational
C. Business system
D. All of these-----------------------------
E. None of these
5. What is the most effective way to address ethical problems resulting from features of the economic
system?
A. Company policy
B. Individual decision making
C. Competition between competitors
D. Regulation and/or economic reform------------------------------
E. There is no solution to systemic problems
6. Which of the following are important features of the moral point of view?
A. Impartiality---------------------------
B. Reacting on emotion
C. Impetuousness
D. Competition
E. All of the above


7. James Burke (The Tylenol Crisis, Case 1.1) made the decision to be completely candid with the
medical community and the media. This was an example of which of the following?
A. Reacting on emotion
B. Impetuousness
C. Willingness to seek out and act on reasons-----------------------
D. Competition
E. All of the above
8. Economic efficiency is:
A. The means of production of the maximum output for the least amount of input.-----------
B. The point at which revenue surpasses cost.
C. The system under which the workers own the means of production.
D. All of these.
E. None of these.
9. Which of the following are reasons that the economic perspective cannot stand alone as the basis for
business decision making?
A. The “rules of the game” can be set by government alone.
B. The market system itself has no ethical justification------------------------
C. The market system does not require ethics.
D. Ethics influences economic behavior.
E. None of these.
10. Some argue that law is the only moral standard necessary to follow. Which schools of thought
support this view?
A. Ethics is a matter of personal conduct, but law applies to public matters like business.
B. All unethical conduct in business has already been addressed by the law.
C. All of these.--------------------
D. None of these.
11. Which of the following represent views advancing the thesis that “law is not enough?”
A. The law is inappropriate for regulating certain aspects of business activity.
B. The law is slow and needs time to develop.
C. The law includes moral concepts that are not precisely defined.
D. The law is inefficient.
E. All of these.--------------
12. Which of the following is a description of ethical management?
A. Managing effectively in situations that have an ethical aspect.
B. Managing effectively and acting ethically in business situations.
C. Deciding what is right and wrong and implementing ethics in business situations.
D. All of these.------------------
E. None of these.
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1. Which of the following are the strengths of teleological ethical theories?
A. They fit with much of our ordinary moral reasoning.---------
B. They focus on the nature of actions and the rules from which they follow.
C. They ignore the consequences of actions.
D. All of these.
E. None of these.
2. Which of the following are the strengths of deontological ethical theories?
A. They fit with very little of our ordinary moral reasoning.
B. They focus on the nature of actions and the rules from which they follow.------------
C. They pay close attention to the consequences of actions.
D. All of these.
E. None of these.
3. Utilitarianism is an example of which of the following ethical theories?
A. Virtue
B. Intuitionism
C. Deontological----------------
D. Teleological
E. Egoism
4. Rights that are recognized and enforced as part of a legal system are, strictly speaking,:
A. Moral rights.
B. Legal rights.----------------
C. Both moral and legal rights.
D. Neither moral nor legal rights.
5. The classical form of utilitarianism is expressed by which of the following?
A. An action is right if, and only if, it is done from the right intentions.
B. An action is right if, and only if, it produces the greatest balance of pleasure over pain for everyone.----------
C. An action is right if it brings about great benefit to some individual or another.
D. An action is right if, and only if, it is beneficial to society.
E. None of these.
6. Act-utilitarianism is characterized by:
A. Evaluation of the rightness of an act by the consequences of that act.
B. Determination of the rightness of an act by appeal to a relevant rule of morality.-------------
C. Both A and B.
D. Neither A nor B.
7. John Stuart Mill holds which of the following views about justice?
A. Equal treatment is a presumptive right and no inequality of treatment is ever justified.
B. Equal treatment is not a presumptive right, and inequality of treatment is justified by the
circumstances.
C. Equal treatment is not a presumptive right, but inequalityof treatment is difficult to justify.
D. Equal treatment is a presumptive right that requires any inequality of treatment to be justified.-----------
8. According to Bentham and Mill, happiness is:
A. Pleasure.
B. The absence of pain.
C. Pleasure and the absence of pain.---------------
D. Well-being.
E. None of these.
9. Bentham’s idea of a precise quantitative method for decision making is most fully realized in which
of the following?
A. The cost-benefit analysis-------------------
B. The cost-effectiveness analysis
C. The maximization of pleasure
D. The maximization of profit
E. The minimization of cost
10. Which of the following are problems with calculating utility?
A. A vast amount of information is needed.
B. Interpersonal comparisons of utility raise the question of whether the utility calculus is even possible.
C. It is difficult to determine both the amount of utility for each affected individual and the amount of
utility for the whole society.
D. All of these.-------------
E. None of these.

11. Rights that involve claims on specific identifiable individuals are called:
A. Moral rights.
B. General rights.
C. Specific rights-----------
D. Negative rights.
E. Legal rights.
12. Rights that entail an obligation on the part of others to refrain from acting in certain ways are called:
A. Moral rights.
B. General rights.
C. In personam rights.
D. Negative rights.---------------
E. Legal rights.
13. Rights that impose obligations on others to provide us with some good are called:
A. In rem rights.
B. In personam rights.
C. Negative rights.
D. Positive rights.----------------------
E. Moral rights.
14. Which of the following deals with the distribution of benefits and burdens, mostly in the evaluation
of social, political, and economic institutions?
A. Retributive justice
B. Compensatory justice
C. Distributive justice--------------
D. All of these
E. None of these
15. Which of the following is concerned with the compensation of persons for wrongs done to them in
voluntary relations such as contract breaches?
A. Retributive justice
B. Compensatory justice--------------
C. Distributive justice
D. All of these
E. None of these
16. Which of the following involves the punishment of wrongdoers who have participated in involuntary
relations such as criminal acts?
A. Retributive justice------------
B. Compensatory justice
C. Distributive justice
D. All of these
E. None of these
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17. According to Jeremy Bentham, which of the following is true?
A. Utilitarianism places no value on equality and makes no allowance for justified unequal treatment.
B. Equal distributions generally produce more utility than unequal ones.--------------
C. Both A and B.
D. Neither A nor B.
18. According to John Stuart Mill, which of the following is true?
A. Utilitarianism places no value on equality and makes no allowance for justified unequal treatment.
B. Equal distributions generally produce more utility than unequal ones.
C. Equality alone is not enough to account for justice, so another criterion, utility, becomes necessary.-----------
D. Both A and B.
E. Neither A nor B.
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MULTIPLE CHOICE
1. Which of the following are prominent theories of justice examined in the text?
A. Aristotle’s principle of proportionate equality
B. John Rawls’ egalitarian theory of justice
C. John Mill’s theory of justice based on utility
D. Robert Nozick’s libertarian entitlement theory
E. All of these------
2. Kant’s moral philosophy is based on:
A. consequences of action.
B. human reason.------
C. false pretenses.
D. all of these.
E. none of these.
3. “Act only according to that maxim by which you can at the same time will that it should become a
universal law” is an example of which of the following?
A. Categorical imperative--------
B. Hypothetical imperative
C. Prudential imperative
D. All of these
E. None of these
4. “Act so that you treat humanity, whether in your own person or in that of another, always as an end
and never as a means only” is an example of which of the following?
A. Categorical imperative-------
B. Hypothetical imperative
C. Prudential imperative
D. All of these
E. None of these
5. Which of the following theories holds that rights, properly so called, belong to all persons solely by
virtue of being human?
A. Utilitarianism
B. Kantian or deontological theories
C. Natural Rights theory-----------
D. All of these
E. None of these
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Copyright 2009 Pearson Education, Inc. Upper Saddle River, NJ 07458
6. Which of the following theories holds that rights, properly so called, because they facilitate the human
good?
A. Utilitarianism---------
B. Kantian or deontological theories
C. Natural Rights theory
D. All of these
E. None of these
7. Which of the following theories holds that innate rights depend on some human convention or judicial act?
A. Utilitarianism
B. Kantian or deontological theories------
C. Natural rights theory
D. All of these.
E. None of these.
8. Which of the following describes “virtue?”
A. Those traits that everyone needs for the good life.
B. An excellence that is admired in a person.
C. A disposition to act in a certain way.
D. A specific state of character.
E. All of these.-----------
9. Which of the following is a strength of virtue ethics?
A. Virtue ethics does not address the problem of conflict.
B. Virtue ethics does not fit particularly well with our everyday moral experience.
C. Virtue ethics fits well with our everyday moral experience.----------
D. Virtue ethics is incomplete.
10. Which of the following is a weakness of virtue ethics?
A. Virtue ethics does not fit particularly well with our everyday moral experience.
B. Virtue ethics fits well with our everyday moral experience.
C. Virtue ethics is incomplete.------------
D. There are no weaknesses in virtue ethics.
11. According to John Rawls, perfect procedural justice does which of the following?
A. Always produces just outcomes.----------------
B. Produces just outcomes only to a certain extent.
C. Rarely produces just outcomes.
D. None of these.
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Copyright 2009 Pearson Education, Inc. Upper Saddle River, NJ 07458
12. Which of the following holds that all public offices and employment should be made available to
everyone?
A. The principle of equal liberty
B. The difference principle
C. The principle of equal opportunity------------
D. All of these
E. None of these
13. Which of the following states that each person has an equal right to the most extensive set of basic
liberties that are compatible with a system of liberty for all?
A. The principle of equal liberty-------------
B. The difference principle
C. The principle of equal opportunity
D. All of these
E. None of these
14. Which of the following allows an exception to the principle of that each person has an equal right to
the basic liberties if some unequal arrangement benefits the least well-off person?
A. The principle of equal liberty
B. The difference principle-----------
C. The principle of equal opportunity
D. All of these
E. None of these
15. According to Adam Smith’s “Invisible Hand” argument, each individual in pursuit of personal gain is:
A. Led by an invisible hand to promote an end (his own benefit) which was no part of his intention.
B. Led by an invisible hand to promote an end (his own self-interest) which was no part of his intention.
C. Led by an invisible hand to promote an end (the welfare of society) which was no part of his intention.----------
D. None of these.
16. According to Robert Nozick, under which of the following conditions is a person entitled to their
holdings?
A. The principle of just transfer
B. The principle of just original acquisition
C. The principle of rectification
D. A and B
E. All of these------------
17. The point of justice, for Nozick, is which of the following?
A. To protect rights and promote human well-being
B. To protect rights and achieve equality
C. To protect rights, promote human well-being, and achieve equality
D. To protect rights, not to promote human well-being or to achieve equality --------------