Cross 9e TBB Ch04
Chapter 4
Business Ethics
N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows.
N A question new to this edition of the Test Bank.
+ A question modified from the previous edition of the Test Bank.
= A question included in the previous edition of the Test Bank.
TRUE/FALSE QUESTIONS
1. Unless a corporation violates a law, its actions do not raise questions about the role of corporations and the effect of corporate ethics on profit.
ANSWER: F PAGES: Section 1 TYPE: N BUSPROG: Ethics AICPA: BB-Risk Analysis
2. An overemphasis on long-run profit maximization is the most common reason that ethical problems occur in business.
ANSWER: F PAGES: Section 1 TYPE: + BUSPROG: Analytic AICPA: BB-Critical Thinking
3. The study of business ethics is concerned with the purposes of a business and how that business achieves those purposes.
ANSWER: T PAGES: Section 1 TYPE: N BUSPROG: Ethics AICPA: BB-Critical Thinking
4. Ethics is as well defined as the law.
answer: F PAGES: Section 1 TYPE: N BUSPROG: Ethics AICPA: BB-Critical Thinking
5. Originally, the only goal or duty of a corporation was to maximize profits.
answer: T PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Critical Thinking
6. An action may be legal but not ethical.
ANSWER: T PAGES: Section 1 TYPE: = BUSPROG: Analytic AICPA: BB-Critical Thinking
7. Acting in good faith gives a business firm a better chance of defending its actions in court.
answer: T PAGES: Section 1 TYPE: = BUSPROG: Analytic AICPA: BB-Legal
8. Company codes are not law.
ANSWER: T PAGES: Section 1 TYPE: N BUSPROG: Ethics AICPA: BB-Risk Analysis
9. Ethics is based more on research than judgment.
answer: F PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
10. Compared to business ethics, employee ethics is not an important issue.
ANSWER: F PAGES: Section 2 TYPE: N BUSPROG: Ethics AICPA: BB-Critical Thinking
11. Religious rules generally are
Business Ethics
N.B.: TYPE indicates that a question is new, modified, or unchanged, as follows.
N A question new to this edition of the Test Bank.
+ A question modified from the previous edition of the Test Bank.
= A question included in the previous edition of the Test Bank.
TRUE/FALSE QUESTIONS
1. Unless a corporation violates a law, its actions do not raise questions about the role of corporations and the effect of corporate ethics on profit.
ANSWER: F PAGES: Section 1 TYPE: N BUSPROG: Ethics AICPA: BB-Risk Analysis
2. An overemphasis on long-run profit maximization is the most common reason that ethical problems occur in business.
ANSWER: F PAGES: Section 1 TYPE: + BUSPROG: Analytic AICPA: BB-Critical Thinking
3. The study of business ethics is concerned with the purposes of a business and how that business achieves those purposes.
ANSWER: T PAGES: Section 1 TYPE: N BUSPROG: Ethics AICPA: BB-Critical Thinking
4. Ethics is as well defined as the law.
answer: F PAGES: Section 1 TYPE: N BUSPROG: Ethics AICPA: BB-Critical Thinking
5. Originally, the only goal or duty of a corporation was to maximize profits.
answer: T PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Critical Thinking
6. An action may be legal but not ethical.
ANSWER: T PAGES: Section 1 TYPE: = BUSPROG: Analytic AICPA: BB-Critical Thinking
7. Acting in good faith gives a business firm a better chance of defending its actions in court.
answer: T PAGES: Section 1 TYPE: = BUSPROG: Analytic AICPA: BB-Legal
8. Company codes are not law.
ANSWER: T PAGES: Section 1 TYPE: N BUSPROG: Ethics AICPA: BB-Risk Analysis
9. Ethics is based more on research than judgment.
answer: F PAGES: Section 1 TYPE: N BUSPROG: Analytic AICPA: BB-Legal
10. Compared to business ethics, employee ethics is not an important issue.
ANSWER: F PAGES: Section 2 TYPE: N BUSPROG: Ethics AICPA: BB-Critical Thinking
11. Religious rules generally are