7 Short Multiple Choice Questions.

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1. Which of the following is NOT true about law? A.Law should be demonstrably fair to all concerned. B.Law should accurately reflect the beliefs of the majority of citizens. C.Neither of the above is true D.Both of the above are true Question 31. Which of the following is the best example of an ethical act? A.Passing a law that guarantees that employees will be paid a ‘living wage’ that is higher than the federal minimum wage. B.Doing something that you sincerely believe is the right thing to do even if it does not benefit you personally is an example of an ethical act. C.Considering the impact on and perspectives of all significant stakeholders before making a decision. D.All the above are equally good examples of ethical acts. Question 41. If a proposed action is legal but does not maximize shareholder value, should the action be taken anyway? A.Yes. B.Take the action if it would unethical to refrain from taking the action. C.Take the action if it is an ethical action. D.No. Question 51. Which of the following is most correct about how law in various countries relates to corporate governance? A.Countries have arrived at a consensus of how the interests of various business stakeholders should be balanced, resulting in the direct facilitation of international trade and finance. B.Industrialized countries do not have public policy regarding laws that impact business, relying instead on the free market to regulate business behaviors. C.Much of the current debate on what constitutes good corporate governance turns on how much weight to give to the interests of shareholders, debtholders, employees, customers and suppliers, and to the protection of the environment. D.Both A and B are true. Question 61. Which of the following best describes how law and ethics are related? a.The law does not prohibit all bad behavior. An action that is unethical will nonetheless be illegal. b.The law does not prohibit all bad behavior. An action that is illegal may nonetheless be ethical. c.The law does not prohibit all bad behavior. An action that is unethical may nonetheless be legal. d.The law does not prohibit all bad behavior. An action that is unethical will nonetheless not be illegal. Question 71. Acme corporation’s manufacturing plant was discovered to be pouring toxic waste into a creek that flows to a large river. The Environmental Protection Agency fined the corporation one million dollars. Which of the following is true about this fine? A.It will not punish the wrongdoer(s). B.It will punish the wrongdoers because it will be paid by the parties who caused the toxic pollution. C.It will punish the wrongdoers because it will reduce the value of the stockholders shares, and they own the company. D.Both B and C are correct. Question 81. Which of the following is a topic considered in discussions of corporate social responsibility? A.Product Safety B.Targeted Advertising C.Conflicts of Interest D.All of the above. Purchase the answer to view it
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