Multiple choice

Question 1 

Engel Tool Company’s decision-makers view a particular risk in the use of the company’s product as “open and obvious.” Continuing to market the product without telling consumers of the risk could be best justified from a perspective of

Aristotle’s Virtue Ethics 

Kantian ethics 

Natural Law theory 

Utilitarian ethics. 


Question 2 

Fine Clothes Company buys clothing assembled by Gamma, Ltd, a foreign firm that employs young children for long hours and low pay. Gamma’s nation does not enforce its child labor laws. Human International Politics (HIP), a political activist organization, discovers Fine Clothes’ connection to Gamma and plans to reveal this information. Before HIP does so, however, Fine Clothes publicly releases the information itself, states that it is “shocked and disappointed” by Gamma, and announces that it is severing its relationship with Gamma. Fine Clothes adroitly publicizes its action in its advertising, and the company’s sales and profits increase, apparently as a direct result. From an ethical perspective, Fine’s conduct can best be characterized as:

Legal, moral, and socially responsible 

Ethically egoistic 

Immoral since most advertisers usually misrepresent things 

In conformity with Kantian ethics. 


Question 3 

Today, the term “corporate governance” encompasses:

Legal restrictions on corporate behavior, particularly from the Sarbanes-Oxley Act. 

Moral restrictions on corporate behavior, particularly from company codes of ethics. 

A societal expectation that a corporation today must be a “socially responsible” one. 

All of the above. 


Question 4 

A business that continues to operate its domestic factories in order to avoid layoffs rather than shift its production to lower cost facilities overseas is most directly applying which value?

Legal positivism 

Profit maximization 

Stakeholder interests 

Moral Heroism.


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