1. An ethical dilemma involves a situation where:
There is a clear right and wrong choice.
One must choose between two or more conflicting options, neither of which is unambiguously acceptable.
Legal rules provide a direct answer.
The decision involves financial loss.
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.
Is always successful in business.
Never makes a mistake.
Adheres to moral and ethical principles consistently, even when no one is watching.
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
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:
Consequences of actions.
Social contracts.
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?
If an action is legal, it is always ethical.
Law defines the maximum standards of behavior, while ethics defines the minimum.
If an action is illegal, it might still be ethical (e.g., civil disobedience).
Ethics and Law are exactly the same.
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 following orders blindly.
In the middle ground between excess and 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:
Doing the right thing even when not legally required.
Avoiding punishment.
Following orders.
Making maximum profit.
Explanation:
Ethics goes beyond legal compliance ("Letter of the law") to the "Spirit of the law" and moral obligations.
8. "Moral Myopia" refers to:
Being short-sighted in business planning.
Inability to see ethical issues clearly or creating rationalizations to justify unethical behavior.
Strict adherence to rules.
Ability to see ethical issues clearly.
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
Creativity
Confidentiality/Discretion
Ambition
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 recognizes the employee as a whole person with rights to well-being outside of economic utility.
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:
Is this legal?
Will this make money?
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:
Legal obligation
External compliance
Self-regulation / Moral Agency
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
Utilitarianism (Consequence-based)
Deontology (Duty-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:
Cognitive Component
Behavioral Component
Affective 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:
Belief is a descriptive thought that something is true; Value is a judgment about what is important or good.
There is no difference.
Beliefs are about money; values are about people.
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)?
Meta-ethics
Applied Ethics
Descriptive Ethics
Normative 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.
God determines all ethics.
Ethics is defined by the law only.
There are universal moral truths applicable to everyone.
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:
Selfless concern for the well-being of others.
Logic and reason.
Self-interest.
Rule-following.
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?
How will it make me feel about myself?
Is it balanced (fair)?
Is it legal?
Will I get caught?
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:
Company policy.
Government laws.
Stock market trends.
Family, culture, education, and life experiences.
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:
Established rules.
Character of the person.
The motive behind the action.
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:
Greed.
Professional Ethics (External rules).
Lack of integrity.
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"?
The Law of Contract.
GAAP principles.
Honesty and Compassion.
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:
Ignoring the problem.
Asking "Can I sleep well at night after making this decision?"
Working until you fall asleep.
Testing mattresses.
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.