Business Ethics Midterm

  1. What is a right?
    A justified claim on others
  2. The right to privacy is an example of a _______ right that claims for each person a zone of non-interference from others.
    Negative right
  3. Immanuel Kant claimed that humanity must always be treated as ____, not merely as _____
    An end, a means
  4. T/F: In general, if an individual has a moral right, then it is morally wrong to interfere with that right even if large numbers of people would benefit from such interference.
  5. Command Economy
    An economic system where the government is the primary decision maker about what is produced, who will produce it, and who will get it, is called a
  6. Market Economy
    An economic system where the individuals privately make decisions about what they will produced and who will get it, is called a
  7. "Free markets" are "free" in what sense?
    Free from interference by government
  8. John Locke's defense of free markets appeals to what ethical value?
    Natural Rights
  9. "The state of nature" is Locke's name for
    A human society without any government
  10. What are the three Lockean rights?
    • The right to life
    • The right to property
    • The right to liberty
  11. The principle of utilitarianism is sometimes described as saying that the right act is the act that produces "the greatest net benefits to society." That an act produces the greatest net benefits means that the act produces _____.
    the largest sum total when total costs to society are subtracted from total benefits to society
  12. In his version of utilitarianism, Jeremy Bentham defined benefits and harms in terms of ________
    Pleasure and pain
  13. T/F: According to utilitarianism's standard of right conduct, I only need to consider the short-term consequences of my actions, and not their long-term consequences.
  14. Adam Smith’s defense of free markets appeals to what ethical value?
  15. T/F: According to Velasqeuz, monopoly markets achieve the same ethical results as perfectly competitive free markets
  16. T/F: An oligopoly is a market shared by a small number (e.g., 3-8) of large firms that together can influence prices.
  17. ______  explains why it is that the more goods a consumer purchases, the less that consumer will be willing to pay for them.
    The principle of diminishing marginal utility
  18. T/F: According to Velasquez, a perfectly competitive free market achieves a certain kind of justice, maximizes utility, and respects certain moral rights.
  19. According to Milton Friedman, what is the social responsibility of business executives?
    To make as much money for their companies as possible
  20. T/F: Milton Friedman thinks that corporate executives’ spending company money on social causes will help strengthen the foundations of a free, democratic society.
  21. T/F: Milton Friedman thinks that when a corporate executive spends company money on social causes, they are improperly imposing a tax on the stockholders, customers, and employees of the company.
  22. T/F: Milton Friedman thinks that corporate executives should never use their own personal money to social objectives (e.g., cleaning up the environment). 
  23. On page 3 Milton Friedman discusses the idea of there being a corporate social responsibility to fight inflation. According to Friedman, would corporate executives have the expertise needed to know how to spend their company's money to successfully fight inflation?
    No, Friedman thinks corporate executives lack this expertise
  24. According to R. Edward Freeman, "the dominant model of business activity" is ____.
    "shareholder capitalism", the same view endorsed by Milton Friedman
  25. T/F: According to R. Edward Freeman, the legal system has evolved to make the interests of stockholders the only ones that really matter for corporations, and to minimize the rights of consumers, employees, and local communities.
  26. T/F: According to R. Edward Freeman, stockholders are considered stakeholders in corporations.
  27. According to R. Edward Freeman, which one of the following is an example of a secondary stakeholder?
  28. T/F: According to R. Edward Freeman, executives have the responsibility to try to maximize value for all stakeholders.
  29. According to R. Edward Freeman, who are the primary stakeholders?
  30. T/F: According to Norman Bowie, a business has an obligation to tell the truth.
  31. T/F: According to Norman Bowie, a business has no special obligation to conserve natural resources over and above what the law requires.
  32. T/F: According to Norman Bowie, a business should be able to intervene in the political arena to oppose environmental regulations.
  33. T/F: According to Norman Bowie, businesses have an obligation to produce environmentally friendly products regardless of how much consumers care about the environment and are willing to pay extra for environmentally friendly products. 
  34. T/F: According to Norman Bowie, businesses have an obligation to use their expertise and marketing abilities to educate consumers about environmental issues. 
  35. T/F: Michael Hoffman agrees with Norman Bowie about the environmental obligations of business and about the proper relationship between business and government concerning environmental issues
  36. On pages 171-172, Hoffman discusses an example of a paper company. This company spent millions of dollars trying to stop polluting a stream, without seeking any help from the government to get the company's competitors to follow the same environment standards.  Does Hoffman think the owner of the paper company did the right thing?
    No, Hoffman thinks this was the wrong company strategy
  37. T/F: Hoffman thinks that business ethics should not be based on the rationale that "good ethics is good for business."
  38. What is the name of the position on environmental ethics which contends that all things which are alive or which are an integral part of the ecosystem are intrinsically valuable?
    Biocentric view
  39. T/F: Carr thinks the ethics of business is a kind of game ethics.
  40. T/F: Carr thinks bluffing in business is never ethically permissible.
  41. Carr discusses the example of a Cornell graduate asked in a job interview about what magazines he reads (pp. 144-145). How did the applicant answer this question, and what's Carr's opinion of that answer?
    Carr thinks the applicant did the right thing by hiding the fact that he read Playboy
  42. When discussing the ethics of poker, Carr categorizes keeping an ace up your sleeve as
  43. When discussing the ethics of poker, Carr categorizes trying to get your opponents drunk as
    Unethical but doesn't count as cheating
  44. Carr believes that in business, breaking the law _____.
    Is not ethically justified
  45. T/F: Carr thinks the golden rule is a poor guide for business ethics.
  46. According to Carr, how often should business people bluff?
    On those occasions when they can obtain a short-term benefit from bluffing, but not so often so as to create long-term problems for the business (e.g., by harming the company's reputation)
  47. According to David Holley, what is "the primary justification" for a market-based economic system?
    that it provides an efficient way of satisfying people's desires for goods and services
  48. According to David Holley, what is required for a market exchange to be mutually beneficial to the seller and the buyer?
    That exchange be voluntary
  49. According to David Holley,  the ______ condition for a voluntary exchange requires that both buyer and seller understand about the terms of the contract they are agreeing to.
  50. T/F: David Holley argues that the primary duty of salespeople to customers is to ensure that they meet the conditions of an ideal exchange.
  51. According to David Holley, what practical guideline should a salesperson follow about what and how much information they should provide to their customers?
    "Tell customers everything you'd want to know if you were the customer considering buying the product"
  52. T/F: David Holley believes that it can, in some circumstances, be morally acceptable for salespeople to appeal to their customers’ emotions in order to make a sale.
  53. T/F: Under the principle of caveat emptor, sales are legally enforceable even if the seller fails to inform the buyer of serious defects in the goods that are sold. (Covered in Carson's text)
  54. T/F: Carson completely agrees with Holley about the moral obligations of salespeople.
  55. T/F: Carson believes salespeople have a duty to refrain from lying and deception in their dealings with customers.
Card Set
Business Ethics Midterm
Business Ethics Midterm