Business Ethics and the Firm Practice Quiz (44 questions)

All questions and answers

1. What role does ethics play in economic and human relationships?

It establishes economic outcomes through individual competition rather than shared norms.
It replaces formal agreements by allowing each person to set rules independently.
It defines legal penalties that regulate relationships between people and organisations.
It builds rational consensus about living together and provides a shared foundation for relationships.

It builds rational consensus about living together and provides a shared foundation for relationships.

Explanation

Ethics helps people reach rational agreement about how to live together, creating common ground for economic and human relationships. Legal penalties can support social order, but they are not the shared foundation described here.

2. Why must a voting procedure rely on agreement that exists before the vote?

A vote creates its own rules by allowing each participant to approve the procedure afterward.
A vote selects an outcome, but prior agreement makes the procedure and its rules acceptable.
A vote determines which ethical principles will apply, so no prior agreement is needed.
A vote is valid when legal penalties ensure that every participant accepts the result.

A vote selects an outcome, but prior agreement makes the procedure and its rules acceptable.

Explanation

Voting can choose among outcomes, but agreement about the procedure must already be in place for the vote to be accepted. Treating the vote as the source of its own rules creates an infinite regress.

3. Why does a system of laws and penalties depend on willing compliance by most people?

Penalties establish the ethical agreement that makes voluntary compliance unnecessary for most people.
Penalties mainly address those who do not recognise the boundary themselves, while most people comply willingly.
Penalties replace shared expectations by making every person’s conduct depend on enforcement.
Penalties guide most people’s everyday choices, while willing compliance is mainly expected from rule-breakers.

Penalties mainly address those who do not recognise the boundary themselves, while most people comply willingly.

Explanation

Law and penalties mainly address the minority who do not sense the boundary, so the system depends on most people complying willingly. The idea that penalties replace voluntary compliance reverses this relationship.

4. How does Adam Smith’s account of motivation relate fellow-feeling to self-interest?

Fellow-feeling motivates people alongside self-interest, whose unchecked pursuit can endanger the economic system.
Fellow-feeling and self-interest are treated as equivalent motives, neither of which can threaten the system.
Self-interest is the sole motive in both works, while fellow-feeling describes an outcome of market exchange.
Fellow-feeling replaces self-interest in moral life, while self-interest operates without limits in economic life.

Fellow-feeling motivates people alongside self-interest, whose unchecked pursuit can endanger the economic system.

Explanation

Smith presents fellow-feeling as a motive alongside self-interest, while recognising self-interest as an important economic driver that can be dangerous when unchecked. Treating self-interest as the sole motive leaves out the role he gives to fellow-feeling.

5. When business ethics evaluates whether a manager’s decision was right, what is it primarily assessing?

The manager’s underlying moral character across different situations.
The organisation’s profitability compared with its competitors.
The manager’s personal motives apart from the action’s effects.
The rightness of the specific action the manager took.

The rightness of the specific action the manager took.

Explanation

Business ethics primarily evaluates the rightness of specific actions. Judging what kind of person the manager is concerns character rather than action analysis.

6. A company chooses profit maximisation as its objective but has not decided whose interests count, how long to pursue returns, or what risk is acceptable. What is missing?

A character assessment, because ethical decisions depend primarily on the manager’s personality.
A complete decision rule specifying the time horizon, beneficiaries, and acceptable risk.
A market mechanism, because firms cannot use profit as an economic objective.
A clear objective, because profit maximisation does not identify any organisational goal.

A complete decision rule specifying the time horizon, beneficiaries, and acceptable risk.

Explanation

Profit maximisation alone leaves important choices unspecified, including the time horizon, whose interests count, and acceptable risk. It does provide an objective, so the problem is incompleteness rather than the absence of a goal.

7. Which description best defines a business enterprise?

A legal framework that authorises operations for satisfying consumer needs and generating profit.
An independent organisation that meets consumer needs while generating profit and must remain profitable over the long term to survive.
A production unit whose survival depends on meeting consumer needs, whether or not it operates profitably.
An organisation whose main purpose is to maximise immediate returns, regardless of consumer needs.

An independent organisation that meets consumer needs while generating profit and must remain profitable over the long term to survive.

Explanation

A business enterprise is an independent organisation focused on satisfying consumer needs while generating profit, and long-term profitability is necessary for survival. The legal framework is the firm, not the enterprise itself.

8. A company carries out production but does not risk its own capital, and its input and output prices are set outside market conditions. What does this imply about its independence as a business enterprise?

It is independent because carrying out production is enough to establish enterprise independence.
It is independent if its products meet consumer needs, regardless of capital risk or price formation.
It does not meet the stated conditions for independence, which require capital risk and real market pricing.
It is independent when its legal framework authorises operations, even without market pricing.

It does not meet the stated conditions for independence, which require capital risk and real market pricing.

Explanation

Independence requires the enterprise to risk its own capital and operate under real market conditions that determine input and output prices. Carrying out operations alone does not establish independence.

9. Why can a firm gain social legitimacy by addressing the problem behind consumer demand?

A firm gains legitimacy by setting consumer priorities, even when it does not address their underlying needs.
Consumers often seek a solution to a broader problem, and meeting that underlying need gives the firm social legitimacy.
A firm earns legitimacy from profitable sales, regardless of whether it solves a broader consumer problem.
Consumers usually seek a particular product, and producing it makes the firm independent of social needs.

Consumers often seek a solution to a broader problem, and meeting that underlying need gives the firm social legitimacy.

Explanation

Consumer demand often reflects a broader problem rather than a desire for one particular product, and meeting that underlying need gives the firm social legitimacy. Profitability alone does not establish that the underlying consumer need has been addressed.

10. A manufacturer wants the most general measure of how much new value it produces relative to resources used. Which measure should it use?

Productivity, measured as new value produced per unit of resource used.
Labour productivity, measured as output per worker or labour-hour.
Profitability, measured as revenue earned per unit of output sold.
Total factor productivity, measured as output per unit of labour alone.

Productivity, measured as new value produced per unit of resource used.

Explanation

Productivity is new value produced per unit of resource used and is the most general measure of efficiency. Labour productivity focuses on output relative to labour, rather than resources in general.

11. How does Adam Smith connect the social division of labour with the need for coordination?

Specialisation increases output and exchange, creating a need for coordination mechanisms, tools, and institutions.
Specialisation reduces exchange, so central administration must assign production and distribute all output.
Specialisation shifts production toward ownership, so firms coordinate mainly by aligning owners and managers.
Specialisation increases output by eliminating interdependence, making coordination mechanisms and institutions unnecessary.

Specialisation increases output and exchange, creating a need for coordination mechanisms, tools, and institutions.

Explanation

Smith links the division of labour to specialisation, greater output, and exchange, which in turn create coordination needs. The claim that specialisation eliminates interdependence reverses this relationship.

12. A firm coordinates internal work through managerial instructions while relying on market prices to coordinate exchanges with suppliers. Which description best fits this arrangement?

It replaces prices and administrative direction with informal cooperation across the economy.
It coordinates both internal work and external exchanges through administrative direction.
It combines administrative direction within organisations with price coordination in markets.
It uses price coordination within organisations and administrative direction between market participants.

It combines administrative direction within organisations with price coordination in markets.

Explanation

Real economies use both forms of coordination: administrative direction within organisations and prices in markets. The second description reverses where each mechanism typically operates.

13. In neoclassical theory, how is the firm represented when choosing how to produce?

As a collection of independent employees who choose production without a unified profit objective.
As a rational legal entity that uses complete price-mediated information to maximise profit within its production possibilities.
As a network of stakeholder groups that negotiates production goals according to competing social claims.
As a hierarchy that relies on internal administrative direction because price information is incomplete.

As a rational legal entity that uses complete price-mediated information to maximise profit within its production possibilities.

Explanation

The neoclassical firm is modelled as a rational legal entity that knows prices and chooses within its production possibilities to maximise profit. The hierarchy description belongs to an account focused on internal organisational coordination.

14. A company budgets for manufacturing, gathering and evaluating price information, and negotiating and enforcing supplier agreements. Which costs beyond production costs are transaction costs?

The costs of producing goods and paying employees for their work.
The costs of expanding production possibilities and calculating maximum profit.
The costs of issuing internal instructions and reconciling stakeholder claims.
The costs of obtaining and evaluating price information and reaching and enforcing agreements.

The costs of obtaining and evaluating price information and reaching and enforcing agreements.

Explanation

Transaction costs include acquiring and evaluating price information and reaching and enforcing agreements, in addition to production costs. Manufacturing expenses are production costs rather than the additional costs specified in the definition.

15. A firm is deciding how to weigh claims from its owner, employees, the state, and consumers. Which set of claims does stakeholder theory recognise as valid interests to reconcile?

Wages for the owner, fair conditions for consumers, quality for the state, and profit for employees.
Profit for the owner, tax for employees, wages for the state, and low prices for consumers.
Quality for the owner, profit for employees, tax for consumers, and wages for the state.
Profit for the owner, wages and fair conditions for employees, tax for the state, and quality for consumers.

Profit for the owner, wages and fair conditions for employees, tax for the state, and quality for consumers.

Explanation

Stakeholder theory recognises owners' claims to profit, employees' claims to wages and fair conditions, the state's claim to tax, and consumers' claims to quality. The second set misassigns the employee and state claims.

16. Which work systematically presents the firm as a network of stakeholder relationships?

Adam Smith's account of the division of labour, published in 1776.
Mitchell, Agle, and Wood's stakeholder salience model, published in 1997.
Donaldson and Preston's stakeholder typology, published in 1995.
Freeman's Strategic Management: A Stakeholder Approach, published in 1984.

Freeman's Strategic Management: A Stakeholder Approach, published in 1984.

Explanation

Freeman's 1984 work systematically presents the firm as a network of stakeholder relationships. Donaldson and Preston's work is associated with a typology of stakeholder theory rather than this presentation.

17. A firm is considering entering a market. Which assessment best reflects how its mission and entry prospects relate to the relevant market?

Its production technology alone defines the relevant market, while entry depends on acceptance by existing players and barriers.
Its mission broadly defines the relevant market, while entry depends on price prospects and barriers but not risk prospects.
Its mission broadly defines the relevant market, while entry depends on income and risk prospects, acceptance by existing players, and entry and exit barriers.
Its mission broadly defines the relevant market, while entry depends on expected income and risk but not existing players or market barriers.

Its mission broadly defines the relevant market, while entry depends on income and risk prospects, acceptance by existing players, and entry and exit barriers.

Explanation

The firm's mission broadly defines its relevant market, and entry decisions consider income and risk, incumbent acceptance, and barriers to entry and exit. The second description leaves out both incumbent acceptance and barriers.

18. How can a firm participate in markets beyond acting as a seller of goods?

It can buy capital, labour, and information, compete with other firms, and cooperate through networks and alliances.
It can buy goods, sell capital and labour, and cooperate through networks without competing with other firms.
It can buy capital and information, sell labour, and compete through alliances without cooperating with partners.
It can buy labour and goods, sell information, and cooperate through networks without acting as a competitor.

It can buy capital, labour, and information, compete with other firms, and cooperate through networks and alliances.

Explanation

A firm can sell goods, buy capital, labour, and information, compete, and cooperate through networks and strategic alliances. The second description incorrectly treats the firm as a seller of capital and labour.

19. A government changes tax rates and subsidies, then establishes rules for competition and environmental impacts. How are these interventions classified?

Both tax and subsidy measures and environmental rules are indirect influence because they affect firms.
Taxes and subsidies are indirect influence; rules governing competition and environmental effects are direct influence.
Both tax and subsidy measures and competition rules are direct influence because they come from the state.
Taxes and subsidies are direct influence; rules governing competition and environmental effects are indirect influence.

Taxes and subsidies are direct influence; rules governing competition and environmental effects are indirect influence.

Explanation

Taxes and subsidies directly influence the economy, while rules governing relationships such as competition and environmental effects are indirect influence. The second description reverses these categories.

20. What did *The Limits to Growth* use computer models to demonstrate?

Profit reinvestment eliminates environmental costs.
Decentralised production consistently improves industrial efficiency.
Market competition ensures resources remain abundant.
Ecological limits constrain unrestricted economic growth.

Ecological limits constrain unrestricted economic growth.

Explanation

The report used computer models to show that ecological limits constrain unrestricted economic growth. Its argument concerns environmental constraints, not a guarantee that competition preserves resource abundance.

21. How does a social enterprise typically use the profit it earns?

It pays the profit to members as a regular dividend.
It distributes the profit to investors and seeks public grants.
It reinvests the profit rather than distributing it as dividends.
It replaces sales revenue with donations and public funds.

It reinvests the profit rather than distributing it as dividends.

Explanation

A social enterprise earns revenue through profit and reinvests that profit instead of distributing it as dividends. Reliance on donations and public funds describes non-profit organisations, not the social-enterprise model in this distinction.

22. Which assumption does alternative economics reject?

That environmental preservation can influence organisational decisions.
That organisations can earn revenue by selling goods and services.
That economic activity can be organised at a human scale.
That self-interest and economic growth are central ends of economic activity.

That self-interest and economic growth are central ends of economic activity.

Explanation

Alternative economics rejects treating exclusive self-interest and growth as a primary goal in themselves. This differs from conventional assumptions that may place those aims at the centre of economic activity.

23. What moral concern did Heller associate with the spread of the money economy?

Economic schools could disagree about the causes of social welfare.
Prices could be set without regard to production costs or consumer demand.
Public funds could be used to support organisations serving communities.
Wealth could be accumulated through exploiting others' distress or lack of information.

Wealth could be accumulated through exploiting others' distress or lack of information.

Explanation

Heller highlighted concerns about wealth accumulation and unjust enrichment through taking advantage of others' distress or limited information. The issue was not simply that prices might depart from production costs.

24. What did the ethical school criticise in classical economics?

Its concern with unjust enrichment through exploiting distress.
Its isolated view of the economy and neglect of social welfare and moral nature.
Its account of economic thought through the formation of problems.
Its emphasis on public funding and charitable support for organisations.

Its isolated view of the economy and neglect of social welfare and moral nature.

Explanation

The ethical school, including Sismondi, Carlyle, and Ruskin, challenged classical economics' isolated view and its neglect of social welfare and moral nature. Heller's account of tracing problems through economic thought is a separate idea.

25. In Akerlof's used-car example, what happens when buyers cannot verify car quality?

They offer an average-quality price, prompting good-car owners to withdraw and lowering supply quality.
They offer a low-quality price, prompting all owners to withdraw and ending trade.
They offer a high-quality price, prompting poor-car owners to withdraw and raising supply quality.
They offer a quality-adjusted price, prompting owners to disclose condition and stabilising supply.

They offer an average-quality price, prompting good-car owners to withdraw and lowering supply quality.

Explanation

When buyers cannot distinguish car quality, they offer an average-quality price; owners of good cars then withdraw, and average supply quality falls further. The example does not predict that buyers can adjust prices to each car's verified condition.

26. Which set of conditions is needed for a self-regulating market to work as assumed?

Partial information, comprehensive contracts, costly enforcement, no externalities, and limited bargaining-power differences.
Complete information, comprehensive contracts, costless enforcement, no externalities, and limited bargaining-power differences.
Partial information, flexible contracts, costly enforcement, some externalities, and equal bargaining-power differences.
Complete information, limited contracts, costless enforcement, some externalities, and large bargaining-power differences.

Complete information, comprehensive contracts, costless enforcement, no externalities, and limited bargaining-power differences.

Explanation

The assumptions include complete information, contracts covering everything, costless enforcement, no externalities, and no large differences in bargaining power. The presence of some externalities, as in another choice, violates one of these conditions.

27. Which set names the three ways Ferraro, Pfeffer, and Sutton say theory shapes reality?

It supplies problem language, sets norms of reasonableness, and becomes embedded in institutions.
It predicts market prices, eliminates bargaining gaps, and reduces enforcement costs.
It defines contract terms, verifies product quality, and prevents external effects.
It supplies problem language, settles moral disputes, and removes institutional incentives.

It supplies problem language, sets norms of reasonableness, and becomes embedded in institutions.

Explanation

The three ways are supplying language for problems, creating norms of reasonableness, and becoming embedded in institutions such as pay systems and performance targets. Predicting prices and reducing enforcement costs are not the identified mechanisms.

28. A researcher asks what employees believe about accepting gifts from suppliers, what they should do, and what kind of claim the judgement “accepting gifts is wrong” expresses. Which sequence classifies these three questions?

Descriptive, normative, and metaethical
Metaethical, normative, and descriptive
Normative, descriptive, and metaethical
Descriptive, metaethical, and normative

Descriptive, normative, and metaethical

Explanation

The first question concerns what people believe, the second asks what they should do, and the third examines the nature of a moral judgement. A normative question concerns what should happen, so it does not classify the first question about employees’ beliefs.

29. A company argues that bribery is acceptable because it is common in its industry. What does Hume’s dictum imply about this argument?

Its prevalence makes the moral judgement a report about industry behaviour.
Its prevalence describes what happens but does not establish that bribery is acceptable.
Its prevalence shows that bribery is a moral rule rather than a business practice.
Its prevalence establishes that bribery is acceptable when competitors also use it.

Its prevalence describes what happens but does not establish that bribery is acceptable.

Explanation

Hume’s dictum holds that an “ought” cannot be derived from an “is,” so the frequency of bribery does not prove its moral acceptability. The fact that competitors also engage in it remains descriptive and cannot, by itself, justify the practice.

30. Which description best captures how morals are commonly acquired?

They are systematic theories of right and wrong, developed primarily through formal scholarly study.
They are personal and shared convictions about right and wrong, developed largely through social life.
They are legal standards for right and wrong, developed through decisions by public authorities.
They are organisational policies about acceptable conduct, developed mainly through professional training.

They are personal and shared convictions about right and wrong, developed largely through social life.

Explanation

Morals are convictions about right and wrong in how people treat others, and they are acquired largely through social life without formal instruction. Scholarly study is more characteristic of ethics as the systematic examination of right and wrong.

31. A student compares competing theories of right and wrong and subjects their arguments to critical examination. What is the student engaged in?

Social psychology, the study of how groups influence behaviour
Morals, the shared convictions acquired through everyday social life
Descriptive inquiry, the reporting of what people believe and do
Ethics, the systematic scholarly study of right and wrong

Ethics, the systematic scholarly study of right and wrong

Explanation

Ethics is the systematic scholarly study of right and wrong, learned through study and open to examination. Everyday convictions acquired through social life describe morals, not the scholarly analysis in this scenario.

32. A business-ethics researcher studies a company’s internal decision-making protocols. Which level of analysis is this?

The micro level, which concerns the individual
The supra level, which concerns the global order
The macro level, which concerns the national economy
The meso level, which concerns the organisation

The meso level, which concerns the organisation

Explanation

The meso level focuses on the organisation, so internal company protocols belong at that level. The micro level concerns individuals rather than an organisation’s systems and protocols.

33. A project manager considers the immediate personal choice involved in a case. Which level of analysis best fits that question?

The macro level, which concerns local regulation
The micro level, which concerns the immediate individual choice
The meso level, which concerns organisational protocols
The supra level, which concerns duties across institutional settings

The micro level, which concerns the immediate individual choice

Explanation

The micro level addresses the individual’s immediate choice in the project-manager case. Organisational protocols are a meso-level concern, not the manager’s personal decision itself.

34. An employee faces two moral duties that cannot both be fulfilled, and either choice violates a moral value. What makes this a moral dilemma?

A decision is uncertain because the employee lacks enough information about likely outcomes.
A moral duty conflicts with a tempting option that carries no comparable moral claim.
Competing moral demands must be faced, and satisfying one necessarily violates a moral value.
A difficult choice affects several people, even though every moral duty can be fulfilled.

Competing moral demands must be faced, and satisfying one necessarily violates a moral value.

Explanation

A moral dilemma involves simultaneous moral demands that cannot all be satisfied, so choosing entails violating some moral value. A duty opposed by mere temptation is instead the structure of a pseudo-dilemma.

35. A worker must choose between keeping a promise to a colleague and reporting serious wrongdoing that could harm others. How is this choice best classified?

A real dilemma, because it pits morally comparable claims against each other
A real dilemma, because any choice with adverse consequences creates competing claims
A pseudo-dilemma, because one claim involves a colleague and the other involves the public
A pseudo-dilemma, because a moral duty conflicts with personal temptation

A real dilemma, because it pits morally comparable claims against each other

Explanation

This is a real dilemma because keeping a promise and reporting wrongdoing can each represent a morally significant claim. A pseudo-dilemma instead contrasts a moral duty with a tempting but non-equivalent alternative.

36. Which set contains the four recurring moral-dilemma patterns identified by Rushworth Kidder?

Honesty versus privacy, employee versus employer, profit versus growth, equality versus efficiency
Truth versus fairness, individual versus organisation, urgency versus accuracy, punishment versus reward
Loyalty versus obedience, community versus society, present versus past, justice versus forgiveness
Truth versus loyalty, individual versus community, short term versus long term, justice versus mercy

Truth versus loyalty, individual versus community, short term versus long term, justice versus mercy

Explanation

Kidder’s four patterns are truth versus loyalty, individual versus community, short term versus long term, and justice versus mercy. The other sets substitute related ethical concerns for these specific recurring patterns.

37. A manager first has an immediate intuitive reaction to an ethical problem, then pauses to evaluate it carefully. How does Kahneman’s framework describe these processes?

The immediate reaction is System 1; the careful evaluation is System 2.
Both processes are System 2 because each concerns an ethical decision.
The immediate reaction is System 2; the careful evaluation is System 1.
Both processes are System 1 because each contributes to moral judgement.

The immediate reaction is System 1; the careful evaluation is System 2.

Explanation

System 1 is fast, automatic, and intuitive, while System 2 is slow, effortful, and analytical; both contribute to moral judgement. Reversing the labels would incorrectly assign deliberate analysis to System 1 and intuition to System 2.

38. How do neutralisation and rationalisation differ in their relationship to an unethical act?

Neutralisation justifies an act afterward, while rationalisation lowers the threshold beforehand.
Neutralisation lowers the threshold before an act, while rationalisation justifies it afterward.
Neutralisation follows peer approval, while rationalisation refers to denying that a choice was available.
Neutralisation describes shared organisational incentives, while rationalisation describes formal ethical codes.

Neutralisation lowers the threshold before an act, while rationalisation justifies it afterward.

Explanation

Neutralisation occurs before an act and makes it easier to proceed, whereas rationalisation offers justification after the act has happened. The reverse sequence is a common confusion, but it swaps the two concepts.

39. Why may detailed ethics codes fail to prevent misconduct even when employees receive training?

Strong character and training determine conduct, while detailed codes leave incentives largely unchanged.
Situational incentives and organisational climate shape conduct, while detailed rules can invite loophole-seeking.
Organisational climate matters mainly after misconduct, while detailed codes prevent shared justifications.
Training chiefly affects technical competence, while detailed codes make personal character less important.

Situational incentives and organisational climate shape conduct, while detailed rules can invite loophole-seeking.

Explanation

Conduct is strongly shaped by situational incentives, organisational climate, and shared justifications, and overly detailed codes can encourage loophole ethics. The idea that training and character determine conduct overlooks those organisational influences.

40. Within Friedman's account, what should executives do as agents of a company's owners?

Pursue the owners' wishes within society's basic rules, grounded in law and ethical custom.
Direct company resources toward social priorities selected by executives, regardless of owner consent.
Pursue owners' wishes without regard to ethical custom when the law permits the decision.
Maximise benefits for every interested group, even when owners' wishes conflict with that goal.

Pursue the owners' wishes within society's basic rules, grounded in law and ethical custom.

Explanation

Friedman treats executives as agents with fiduciary duties to owners, pursuing their wishes within rules rooted in law and ethical custom. Ignoring ethical custom would remove a stated constraint on the pursuit of owners' wishes.

41. A manager treats a company as a network of interested groups and seeks to create value jointly among them; which approach does this reflect?

Stakeholder theory, which frames management as joint value creation across relationships.
A profitability-based view, which supports ethical conduct when it improves returns.
Shareholder primacy, which treats management as serving owners within basic social rules.
A fiduciary-duty view, which assigns social priorities to political institutions.

Stakeholder theory, which frames management as joint value creation across relationships.

Explanation

Stakeholder theory presents the firm as a network of relationships and management as responsible for joint value creation among interested groups. The shareholder-primacy view instead centers executives' duties to owners.

42. A company finds that ethical conduct improves its reputation and staff retention, but some ethical decisions reduce profits; what does this imply about relying on profitability as the basis for ethical action?

It is unreliable because ethical conduct may not pay off in every case.
It is reliable because reputational gains generally offset any immediate financial cost.
It is unnecessary because ethical conduct has no meaningful effects on business outcomes.
It applies to staff retention but not to capital costs or regulatory and litigation risks.

It is unreliable because ethical conduct may not pay off in every case.

Explanation

Ethical conduct can bring business benefits, including stronger reputation and retention and lower capital or legal risks, yet profitability is an unreliable foundation if ethical conduct does not pay off. The possibility of reputational benefits does not guarantee that they will offset every cost.

43. How is the course assessment weighted, including its seminar bonus and total available percentage?

Two written tests count for 50% each, with up to 6% bonus across seminars 1–3 and 106% available.
Two written tests count for 50% each, with up to 6% bonus across seminars 2–4 and 106% available.
Two written tests count for 40% each, with up to 6% bonus across seminars 2–4 and 86% available.
Two written tests count for 50% each, with up to 3% bonus across seminars 2–4 and 103% available.

Two written tests count for 50% each, with up to 6% bonus across seminars 2–4 and 106% available.

Explanation

The assessment has two written tests weighted at 50% each and up to 6% in seminar bonus points, giving 106% available in total. The bonus is distributed across seminars 2–4, not seminars 1–3.

44. A student earns 32% during the study period but scores 48% on the first written test; does the student meet the stated exam eligibility threshold?

Yes, because at least 30% during the study period meets one eligibility route.
No, because eligibility requires at least 50% on the first written test.
No, because eligibility requires both 30% during the study period and 50% on the first test.
Yes, because any score below 50% on the first test qualifies after the study period.

Yes, because at least 30% during the study period meets one eligibility route.

Explanation

Eligibility can be met through either at least 30% during the study period or at least 50% on the first written test, and this student meets the first route. The 50% test threshold is an alternative route, not an additional requirement.

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Lock in the answers with 93 flashcards on Business Ethics and the Firm.

What shared role does ethics play in economic and human relationships?

It provides a shared foundation for those relationships.

Why can voting not establish its own prior rules?

Doing so would create an infinite regress.

What must voting depend on before its procedure begins?

An agreement that exists before and outside the procedure.

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