1. An ethical dilemma involves a situation where:
Legal rules provide a direct answer.
The decision involves financial loss.
There is a clear right and wrong choice.
One must choose between two or more conflicting options, neither of which is unambiguously acceptable.
Explanation:
An ethical dilemma arises when values conflict (e.g., Loyalty to a friend vs. Truthfulness to the employer). There is often no single "perfect" solution.
2. A person of "Integrity" is best described as someone who:
Never makes a mistake.
Changes their principles based on the situation.
Adheres to moral and ethical principles consistently, even when no one is watching.
Is always successful in business.
Explanation:
Integrity involves honesty and consistency of character. It implies acting according to one's values regardless of the circumstances or lack of supervision.
3. Which ethical theory emphasizes "Duty" and rules over consequences? (e.g., "Do not lie even if it saves a life")
Utilitarianism
Virtue Ethics
Deontology
Egoism
Explanation:
Deontology (associated with Immanuel Kant) focuses on moral duties and rules. It argues that some acts are inherently right or wrong, regardless of their consequences.
4. Aristotle's "Virtue Ethics" focuses on:
Rules and Duties.
Social contracts.
The character of the moral agent.
Consequences of actions.
Explanation:
Virtue ethics emphasizes the development of virtuous character traits (like courage, honesty, wisdom). It asks "What sort of person should I be?" rather than "What should I do?"
5. Which statement correctly describes the relationship between Ethics and Law?
Ethics and Law are exactly the same.
Law defines the maximum standards of behavior, while ethics defines the minimum.
If an action is legal, it is always ethical.
If an action is illegal, it might still be ethical (e.g., civil disobedience).
Explanation:
Law provides the "floor" (minimum standards) of conduct enforced by the state. Ethics often sets a higher standard ("ceiling"). Something can be legal but unethical (e.g., adultery, breaking a promise), or illegal but ethical (e.g., breaking an unjust law).
6. Aristotle's "Golden Mean" suggests that virtue lies:
In the middle ground between excess and deficiency.
In the extreme deficiency.
In the extreme excess.
In following orders blindly.
Explanation:
For example, Courage is the golden mean between Cowardice (deficiency) and Rashness (excess). Ethical behavior is about balance.
7. Compliance is about following the law. Ethics is about:
Making maximum profit.
Doing the right thing even when not legally required.
Avoiding punishment.
Following orders.
Explanation:
Ethics goes beyond legal compliance ("Letter of the law") to the "Spirit of the law" and moral obligations.
8. "Moral Myopia" refers to:
Strict adherence to rules.
Ability to see ethical issues clearly.
Being short-sighted in business planning.
Inability to see ethical issues clearly or creating rationalizations to justify unethical behavior.
Explanation:
It is a distortion of moral vision that keeps ethical issues from coming into focus, often allowing individuals to act unethically without feeling guilty.
9. Which value is essential for a banker to maintain the "Secrecy" of customer accounts?
Creativity
Aggressiveness
Ambition
Confidentiality/Discretion
Explanation:
Confidentiality is the ethical value that directly supports the legal duty of secrecy. Without discretion, trust is broken.
10. The term "Work-Life Balance" is ethically significant because:
It increases costs for the company.
It is a legal mandate.
It prevents employees from working hard.
It recognizes the employee as a whole person with rights to well-being outside of economic utility.
Explanation:
From a deontological (duty) and virtue ethics perspective, respecting an employee's need for rest and family life treats them as ends in themselves, not just means to profit.
11. The "Newspaper Test" or "Sunshine Test" in ethical decision-making asks:
Will this make money?
How would I feel if my action was published on the front page of a newspaper tomorrow?
Is this legal?
What will my boss say?
Explanation:
This test relies on public scrutiny and shame. If you are uncomfortable with the public knowing your action, it is likely unethical.
12. Ethical behavior that comes from internal conviction rather than fear of punishment is known as:
Self-regulation / Moral Agency
Legal obligation
External compliance
Forced obedience
Explanation:
True ethics is self-imposed. It involves doing the right thing because it is right, not just because it is the rule.
13. A bank manager decides to fund a polluting factory because it creates thousands of jobs for the local community. Which ethical theory is he primarily applying?
Kant's Categorical Imperative
Deontology (Duty-based)
Utilitarianism (Consequence-based)
Virtue Ethics
Explanation:
He is weighing the consequences: the "greater good" (jobs/economic welfare) vs the harm (pollution). Utilitarianism looks at the net benefit to the maximum number of people.
14. The component of "Attitude" that relates to feelings and emotions is called:
Behavioral Component
Rational Component
Affective Component
Cognitive Component
Explanation:
Attitudes have three components (ABC Model): Affective (Feeling), Behavioral (Action), and Cognitive (Belief/Thought). Affective deals with emotions (like/dislike).
15. A "Belief" differs from a "Value" in that:
Belief is a descriptive thought that something is true; Value is a judgment about what is important or good.
There is no difference.
Values are temporary; beliefs are permanent.
Beliefs are about money; values are about people.
Explanation:
Belief: "I believe lying is risky." Value: "I value honesty." Values guide behavior and are deeply held convictions about priorities.
16. Which branch of ethics deals with the practical application of moral considerations (e.g., Business Ethics, Bioethics)?
Applied Ethics
Meta-ethics
Normative Ethics
Descriptive Ethics
Explanation:
Applied Ethics examines specific controversial issues (like abortion, animal rights, corporate corruption) and uses ethical theories to resolve them.
17. "Ethical Relativism" claims that:
Moral principles are not universal but depend on culture, society, or individual choice.
There are universal moral truths applicable to everyone.
Ethics is defined by the law only.
God determines all ethics.
Explanation:
It suggests that "When in Rome, do as the Romans do." What is ethical in one culture (e.g., bribery as "gift giving") might be unethical in another.
18. "Altruism" is the ethical principle of:
Self-interest.
Rule-following.
Logic and reason.
Selfless concern for the well-being of others.
Explanation:
Altruism is the opposite of egoism. It involves acting to benefit others, sometimes at a cost to oneself.
19. Which question is NOT part of the "Blanchard and Peale" model for resolving ethical dilemmas?
Will I get caught?
Is it legal?
How will it make me feel about myself?
Is it balanced (fair)?
Explanation:
The 3 questions are: 1. Is it legal? 2. Is it balanced? 3. How does it make me feel about myself? "Will I get caught" is a question based on fear of punishment, not ethics.
20. Personal values are primarily formed by:
Family, culture, education, and life experiences.
Government laws.
Stock market trends.
Company policy.
Explanation:
Values are deep-seated beliefs shaped by early socialization (family/school) and later environment (culture/experience).
21. Consequentialism assesses the morality of an action based on:
The outcome or result of the action.
Character of the person.
Established rules.
The motive behind the action.
Explanation:
Utilitarianism is a form of Consequentialism. It holds that the "ends" determine the rightness of the "means".
22. A lawyer defending a client they know is guilty is acting based on:
Professional Ethics (External rules).
Personal Morality (Internal beliefs).
Lack of integrity.
Greed.
Explanation:
Legal ethics require a lawyer to provide the best defense for their client, regardless of personal belief in their guilt. This illustrates how professional ethics can differ from personal morality.
23. Which of the following is a "Personal Value"?
The Law of Contract.
Honesty and Compassion.
GAAP principles.
GDP growth rate.
Explanation:
Personal values are internal beliefs about what is right and wrong, such as honesty, courage, and kindness.
24. The "Sleep Test" in ethics refers to:
Asking "Can I sleep well at night after making this decision?"
Working until you fall asleep.
Testing mattresses.
Ignoring the problem.
Explanation:
This is a simple intuition test. If a decision causes guilt or anxiety (preventing sleep), it violates one's conscience and is likely unethical.