1. An ethical dilemma involves a situation where:
Legal rules provide a direct answer.
One must choose between two or more conflicting options, neither of which is unambiguously acceptable.
The decision involves financial loss.
There is a clear right and wrong choice.
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:
Changes their principles based on the situation.
Never makes a mistake.
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")
Virtue Ethics
Deontology
Utilitarianism
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:
The character of the moral agent.
Consequences of actions.
Rules and Duties.
Social contracts.
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?
If an action is illegal, it might still be ethical (e.g., civil disobedience).
Ethics and Law are exactly the same.
If an action is legal, it is always ethical.
Law defines the maximum standards of behavior, while ethics defines the minimum.
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 extreme deficiency.
In the extreme excess.
In the middle ground between excess and deficiency.
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:
Doing the right thing even when not legally required.
Making maximum profit.
Following orders.
Avoiding punishment.
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?
Ambition
Aggressiveness
Confidentiality/Discretion
Creativity
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?
Is this legal?
What will my boss say?
How would I feel if my action was published on the front page of a newspaper tomorrow?
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:
Forced obedience
Self-regulation / Moral Agency
External compliance
Legal obligation
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?
Deontology (Duty-based)
Utilitarianism (Consequence-based)
Kant's Categorical Imperative
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:
Affective Component
Rational Component
Behavioral 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:
There is no difference.
Beliefs are about money; values are about people.
Values are temporary; beliefs are permanent.
Belief is a descriptive thought that something is true; Value is a judgment about what is important or good.
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)?
Normative Ethics
Meta-ethics
Applied 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.
Company policy.
Government laws.
Stock market trends.
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 motive behind the action.
Established rules.
Character of the person.
The outcome or result of 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:
Lack of integrity.
Greed.
Professional Ethics (External rules).
Personal Morality (Internal beliefs).
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"?
GAAP principles.
Honesty and Compassion.
GDP growth rate.
The Law of Contract.
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:
Working until you fall asleep.
Asking "Can I sleep well at night after making this decision?"
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.