1. An ethical dilemma involves a situation where:
The decision involves financial loss.
Legal rules provide a direct answer.
One must choose between two or more conflicting options, neither of which is unambiguously acceptable.
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:
Adheres to moral and ethical principles consistently, even when no one is watching.
Changes their principles based on the situation.
Is always successful in business.
Never makes a mistake.
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
Utilitarianism
Egoism
Deontology
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:
Social contracts.
Consequences of actions.
Rules and Duties.
The character of the moral agent.
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?
Law defines the maximum standards of behavior, while ethics defines the minimum.
Ethics and Law are exactly the same.
If an action is illegal, it might still be ethical (e.g., civil disobedience).
If an action is legal, it is always ethical.
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 following orders blindly.
In the extreme excess.
In the middle ground between excess and deficiency.
In the extreme deficiency.
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.
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:
Inability to see ethical issues clearly or creating rationalizations to justify unethical behavior.
Being short-sighted in business planning.
Ability to see ethical issues clearly.
Strict adherence to rules.
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?
Aggressiveness
Ambition
Creativity
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 recognizes the employee as a whole person with rights to well-being outside of economic utility.
It increases costs for the company.
It is a legal mandate.
It prevents employees from working hard.
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:
What will my boss say?
Will this make money?
Is this legal?
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
Legal obligation
External compliance
Self-regulation / Moral Agency
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?
Virtue Ethics
Utilitarianism (Consequence-based)
Kant's Categorical Imperative
Deontology (Duty-based)
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
Cognitive Component
Behavioral Component
Rational 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:
Beliefs are about money; values are about people.
There is no difference.
Belief is a descriptive thought that something is true; Value is a judgment about what is important or good.
Values are temporary; beliefs are permanent.
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
Normative Ethics
Descriptive Ethics
Meta-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.
Ethics is defined by the law only.
There are universal moral truths applicable to everyone.
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:
Rule-following.
Logic and reason.
Selfless concern for the well-being of others.
Self-interest.
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?
Is it legal?
Will I get caught?
Is it balanced (fair)?
How will it make me feel about myself?
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:
Stock market trends.
Family, culture, education, and life experiences.
Government laws.
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 motive behind the action.
The outcome or result of the action.
Character of the person.
Established rules.
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:
Personal Morality (Internal beliefs).
Professional Ethics (External rules).
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"?
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:
Testing mattresses.
Working until you fall asleep.
Asking "Can I sleep well at night after making this decision?"
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.