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Name: _________________________
ID: _____________________
April 8, 2014
Exam 2 - Chapter 5 – 7: Ethical Decision Making and Ethical Leadership
MULTIPLE CHOICE
1. Which of the following is not one of the six "spheres of influence" to which individuals are subject
when confronted with an ethical issue?
a. Educational attainment
b. Workplace
c. Family
d. Legal system
e. Community
2. The _____ leader demands instantaneous obedience and focuses on achievement, initiative, and selfcontrol.
a. democratic
b. coaching
c. affiliative
d. coercive
e. pacesetting
3. The _____ can be defined as a set of values, norms, and artifacts, including ways of solving problems
shared by members of an organization.
a. corporate culture
b. intentions of a corporate
c. ethical issue awareness
d. determination of a corporation
e. individual factors
4. Which of the following types of leaders attempts to create employee satisfaction through bartering or
negotiating for desired behaviors or level of performance?
a. Pacesetting leaders
b. Coercive leaders
c. Transactional leaders
d. Transformational leaders
e. Transmogrified leaders
5. Studies have shown that _____ within the organization have more impact on a worker's decisions on a
daily basis than any other factor.
a. significant others
b. religion
c. education
d. chief executive officers
e. ethical issues
Exam 2: Chapters 5 – 7
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6. _____ is the first sign that an unethical decision has occurred.
a. Guilt
b. Reward
c. Punishment
d. Cognitive dissonance
e. Happiness
7. People who believe in _____, go with the flow because they feel the events in their lives are
uncontrollable.
a. ethical decision making
b. internal locus of control
c. an ethical culture
d. external locus of control
e. significant others.
8. Which of the following is not an individual factor that affects business ethics?
a. Nationality
b. Age
c. Religion
d. Significant others
e. Education
9. _____ is an organizational factor that gives a company specific characteristics. Over time, stakeholders
begin to see the company as like a living organism with a mind and will of its own.
a. Oversight
b. Significant others
c. Organizational culture
d. The ethical climate
e. The legal climate
10. The _____ leader can create a negative climate because of the high standards that he or she sets. This
style works best for attaining quick results from highly motivated individuals who value achievement
and take initiative.
a. authoritative
b. affiliative
c. democratic
d. coaching
e. pacesetting
11. The _____ of an organization can influence the acceptance of, adherence to, transmittal, and
monitoring of organizational norms, values, and codes of ethics.
a. nation of origin
b. locus of control
c. leadership style
d. production methods
e. opportunity
Exam 2: Chapters 5 – 7
April 8, 2014
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12. Moral philosophy refers to
a. a subject that most businesspeople do not consider very important.
b. the morality of business activities.
c. the principles or rules that people use to decide what is right and wrong.
d. the legality of business activities.
e. the principles or rules that policymakers use to create legislation.
13. Which moral philosophy evaluates the morality of an action on the basis of its consequences for
everyone affected (seeks the greatest good for the greatest number)?
a. Act deontology
b. Rule deontology
c. Egoism
d. Utilitarianism
e. Hedonism
14. Which moral philosophy considers an act to be morally right or acceptable if it produces some desired
result?
a. Teleology
b. Deontology
c. The relativist perspective
d. Ethical formalism
e. Hedonism
15. Which moral philosophy focuses on the rights of individuals and on the intentions associated with a
particular behavior, rather than its consequences?
a. Deontology
b. The relativist perspective
c. Teleology
d. Egoism
e. Utilitarianism
16. According to Kohlberg's model, as a person progresses through the stages of moral development, and
with time, education, and experience, he/she
a. is unlikely to change his/her values and ethical behavior.
b. may change his/her values and ethical behavior.
c. will likely be promoted.
d. will depend more on the input of significant others in ethical decision making.
e. will experience less opportunity to behave unethically.
17. An individual who defines what is right by considering his/her duty to society, not just to other
specific people, is in which of Kohlberg's stages of cognitive moral development?
a. Punishment and obedience
b. Individual instrumental purpose and exchange
c. Mutual interpersonal expectations, relationships, and conformity
d. Social system and conscience maintenance
e. Prior rights, social contract, or utility
Exam 2: Chapters 5 – 7
April 8, 2014
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18. _____ believe that no one thing is intrinsically good.
a. Hedonists
b. Pluralists
c. Relativists
d. Deontologists
e. Teleologists
19. Which moral perspective defines ethical behavior subjectively from the unique experiences of
individuals and groups?
a. Virtue ethics
b. Egoism
c. The relativist perspective
d. Absolutism
e. Justice
20. Enlightened egoism
a. is when an individual puts spiritual feelings above all others.
b. centers completely on the short-term well-being of others.
c. centers on one's short-term self-interest.
d. centers on one's long-term self-interest but takes others’ well-being into account.
e. centers on the long-term well-being of others.
21. _____ justice is based on the evaluation of outcomes or results of the business relationship.
a. Procedural
b. Interactional
c. Distributive
d. Ethical
e. Egotistical
22. _____ argues that ethical behavior involves not only adhering to conventional moral standards but also
considering what a mature person with a “good” moral character would deem appropriate.
a. Act utilitarianism
b. Virtue ethics
c. Reciprocity
d. Hedonism
e. Rule deontology
23. Which is not considered a white collar crime?
a. Corporate tax evasion
b. Credit card fraud
c. Insider trading
d. Identity theft
e. Mugging someone
Exam 2: Chapters 5 – 7
April 8, 2014
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24. Expert power usually stems from
a. a superior's credibility with his or her subordinates.
b. the belief that a certain person has the right to exert influence and that certain others have
an obligation to accept it.
c. a person's ability to influence the behavior of others by offering them something desirable.
d. a person's ability to penalize the actions or behavior of another.
e. a person's perceptions that his or her goals or objectives are similar to another's.
25. Which of the following statements about power is true?
a. The five bases of power are mutually exclusive.
b. People generally use only one base of power to effect change in others.
c. Expert power exists when one person takes actions that will lead that person and others to
achieve their mutual objectives.
d. Power can be used to motivate individuals ethically or unethically.
e. The use of power is unethical.
26. An organization that delegates decision-making authority as far down the chain of command as
possible and has relatively few formal rules is
a. centralized.
b. decentralized.
c. flat.
d. tall.
e. ethical.
27. The ability to influence behavior of others by offering them something desirable is best described as
a. coercive power.
b. reward power.
c. expert power.
d. legitimate power.
e. referent power.
28. An advantage of the decentralized organization is that
a. the focus is on formal rules, policies, and procedures backed up with elaborate control
systems.
b. there is a high level of bureaucracy.
c. each worker knows his or her job and what is specifically expected as well as how to carry
out designated tasks.
d. it is adaptable and can quickly respond to external change.
e. there is minimal upward communication.
29. When developing an ethical culture, there has to be a(n) _____ element because every organization has
employees that will try to take advantage if there is an opportunity for misconduct.
a.
b.
c.
d.
e.
rules-based
statement of mission
ethical
compliance
punitive
Exam 2: Chapters 5 – 7
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30. The apathetic organizational culture exhibits
a. high concern for people but minimal concern for performance.
b. little concern for people but a high concern for performance.
c. minimal concern for people and performance.
d. high concern for people and performance.
e. no concern for maintaining a cohesive organizational culture.
31. The exacting organizational culture is interested in
a. performance but has little concern for employees.
b. investors' impressions of profitability.
c. maintaining a strong corporate culture.
d. employees and performance.
e. employees' impressions.
32. No formal dress codes, working late, participation in extracurricular activities, gestures, and legends
represent
a. a complacent workplace.
b. codes of ethics.
c. a firm's organizational chart.
d. formal expressions of an organization's culture.
e. informal expressions of an organization's culture.
33. The 2010 passage of the Dodd-Frank Act proposed additional monetary incentives for whistleblowers. A primary concern about these new incentives is
a. they will encourage too many employees to attempt to blow the whistle on firms, even
those that have done nothing wrong.
b. people do not generally respond at all to monetary incentives.
c. whistle-blowers might be tempted to report to the SEC with their reports and not report the
misconduct to the company’s internal compliance program.
d. people may exaggerate their claims in order to get a reward.
e. the funds paid out to whistle-blower might bankrupt companies.
34. When a foreman orders an assembly-line employee to carry out a task, which the employee perceives
as unethical yet the employee feels compelled to complete, the foreman is exercising
a. legitimate power.
b. expert power.
c. reward power.
d. contingent punishment power.
e. noncontingent reward behavior.
35. Which of the following cultures combines high levels of concern for people and performance?
a. Apathetic culture
b. Caring culture
c. Integrative culture
d. Exacting culture
e. Cooperative culture
Exam 2: Chapters 5 – 7
April 8, 2014