Intro to Business: Chapter 2

For profit businesses will be successful if they focus mostly on profitability.

• True
• False

Which of the following is not an ethical philosophy or concept?

• a) Utilitarianism
• b) Deontology
• c) Favoritism
• d) Individual Rights

Which of the following is considered an unethical business activity?

• a) Offering competitive wages to employees
• b) Using company resources without authorization
• c) Providing accurate product information to customers
• d) Supporting community development projects

How can organizations encourage ethical behavior among employees?

• a) Ignoring minor ethical violations
• b) Establishing a code of ethics
• c) Focusing solely on profit maximization
• d) Keeping ethical guidelines vague

The "Feelings Test" in ethical decision-making involves:

• a) Checking for legal compliance
• b) Assessing comfort level with the decision
• c) Consulting the company's mission statement
• d) Comparing decisions with industry standards

Corporate social responsibility (CSR) extends company responsibilities beyond investors to:

• a) All stakeholders
• b) Employees and customers
• c) The government and competitors
• d) Legal authorities exclusively

What characterizes a socially responsible company?

• a) Compliance with laws but no additional voluntary actions
• b) Focus on profits regardless of social impact
• c) Actions that go beyond legal requirements for societal welfare
• d) Exclusive attention to investor returns

A key responsibility of businesses to employees is to:

• a) Prioritize cost-cutting over job security
• b) Provide a safe and inclusive working environment
• c) Limit employee decision-making authority
• d) Disregard employee welfare to maximize profits

Which of the following is NOT an example of how W.S. Badget Company acts socially responsible?

• a) Focuses on product margins and maximizing profits

• b) Highest paid employee is capped at 5 times the lowest paid employee

• c) Allows new parents to bring their babies to work

• d) Matches employee donations to organizations they support

The "Newspaper Test" suggests that one should:

• a) Avoid making any public statements
• b) Consider how a decision would look in a public news story
• c) Limit company information shared with the public
• d) Make decisions based only on internal company policies