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Chapter 2:Deciding What’s Right: A
Prescriptive Approach
Test Bank
True/False
1. An ethical dilemma is defined as a situation where two or more “right” values are in conflict.
Ans. : True
Response: See page 39
Difficulty: Easy
2. A challenge involved in using a strictly consequentialist approach is that it is often difficult to
obtain the information required to evaluate all of the consequences for all stakeholders who may be
directly or indirectly affected by an action or decision.
Ans.: True
Response: See page 41
Difficulty: Medium
3. The consequentialist approach protects the rights of the minority.
Ans.: False
Response: See page 42
Difficulty: Moderate
4. Business managers generally rely on the consequentialist approach.
Ans.: True
Response: See page 42
Difficulty: Moderate
5. A major challenge of deontological approaches is deciding which duty, obligation, right, or
principle takes precedence because ethical dilemma often pit these against each other.
Ans. : True
Response: See page 45
Difficulty: Moderate
6. A virtue ethics perspective considers the actor’s character, motivations, and intentions.
Ans. : True
Response : See page 46
Difficulty: Easy
7. A virtue ethics perspective requires a moral actor to look to the community that will hold the moral
actor to the highest ethical standard and support the moral actor’s intention to be a virtuous person.
Ans.: True
Response: See page 47
Difficulty: Medium
8. Ethical dilemmas represent conflicts in values.
Ans: True
Response: See page 39
Difficulty: Medium
9. According to Lawrence Kohlberg, developer of a key theory of moral reasoning, role taking is
useless as nothing is gained by putting yourself in the shoes of others.
Ans.: False
Response: See page 53
Difficulty: Moderate
10. In business, concerning yourself with how your decision making affects stakeholders is useless
given the number of stakeholders and their different interests.
Ans.: False
Response: See page 53
Difficulty: Moderate
11. Despite the disclosure rule, making decisions in private to avoid negative reaction is generally
best for a business as it safeguards your firm’s reputation and keeps competitive information away
from your competitors.
Ans.: False
Response: See page 56
Difficulty: Moderate
12. Creativity and thinking out of the box are just a scoundrel’s way of saying that coming up with
alternatives in solving how you handle ethical issues are valuable skills to keep you from getting
caught.
Ans.: False
Response: See pages 57-58
Difficulty: Moderate
13. An appearance of a conflict of interest can be as damaging as an actual conflict.
Ans.: True
Response: See page 60
Difficulty: Moderate
14. If you are asked to make hastily a decision that you believe raises potential ethical issues you
should be a good team player and proceed with the decision.
Ans.: False
Response: See page 60
Difficulty: Moderate
15. It is good advice to go with your gut.
Ans.: False
Response: See page 57-58
Difficulty: Moderate
16. Most business managers rely on a deontological approach.
Ans: False
Response: Most managers rely on a utilitarian (or teleological) approach. See page 42.
Difficulty: Moderate
17. Utilitarianism is the best known example of a consequential theory.
Ans: True
Response: See page 40
Difficulty: Easy
18. Although all of the philosophical approaches have limitations, an individual must choose one
approach and follow its guidance in every situation.
Ans: False
Response: See page 51
Difficulty: Moderate
19. Generally, ethical dilemmas are not routine. Therefore, there is no way that an individual can be
prepared or informed for a problem ahead of time.
Ans: False
Response: It is important that you do your homework and understand how to protect yourself and
your employer. This will give you a “head’s up” when you face potential ethical dilemmas. See page
58-59.
Difficulty: Easy
Multiple Choice
20. A _______________ is any person or group with a stake in the issue at hand.
a) stakeholder
b) large customer
c) community committee
d) government party
Ans: a
Response: page 40.
Difficulty: Easy
21. The ___________ approach to ethical decision making focuses on how people actually make
ethical decisions.
a) prescriptive
b) descriptive
c) illustrative
d) regulatory
Ans: b
Response: See page 38.
Difficulty: Easy
22. The ___________ approach to ethical decision making focuses on what decision an individual
should make.
a) prescriptive
b) descriptive
c) illustrative
d) regulatory
Ans: a
Response: See page 38.
Difficulty: Easy
23. The prescriptive approach is to ____________ as the descriptive approach is to _____________.
a) psychology; philosophy
b) philosophy; psychology
c) would; does
d) none of the above
Ans: b
Response: See pages 38-39.
Difficulty: Difficult
24. ______ is probably the best-known consequentialist theory.
a) Utilitarianism
b) The disclosure rule
c) Deontological
d) Principle of value
Ans: a
Response: See page 40.
Difficulty: Moderate
25. The ___________ states that an ethical decision should maximize benefits to society and
minimize harms.
a) principle of value
b) theory of cost-benefit analysis
c) principle of efficacy
d) principle of utility
Ans: d
Response: See page 40.
Difficulty: Moderate
26. A ________ focuses on doing what is “right” (based on moral principles or values such as
honesty), whereas a _________ focuses on doing what will maximize societal welfare.
a) utilitarian; virtue follower
b) deontologist; consequentialist
c) virtue follower; utilitarian
d) consequentialist; deontologist
Ans: b
Response: See page 42.
Difficulty: Difficult
27. A major challenge of _____ approaches is deciding which duty, obligation, right, or principle
takes precedence because, as we said earlier, ethical dilemmas often pit these against each other.
a) utilitarian
b) deontological
c) teleological
d) consequentialist
Ans: b
Response: See page 45.
Difficulty: Moderate
28. The _____ approach focuses more on the integrity of the moral actor (the person) than on the
moral act itself (the decision or behavior).
a) utilitarian
b) deontological
c) teleological
d) virtue ethics
Ans: d
Response: See page 46.
Difficulty: Moderate
29. The __________ challenges one to ask, “how would you feel if your behavior appeared in The
Wall Street Journal?”
a) veil of ignorance
b) categorical imperative
c) disclosure rule
d) confession constraint
Ans: c
Response: See page 50.
Difficulty: Moderate
30. Which of these is the first step in the sound ethical decision making in business?
a) Define the ethical issues
b) Gather the facts
c) Identify the affected parties
d) Check your gut
Ans: b
Response: See page 51.
Difficulty: Moderate
31. Which of these is the final step in the sound ethical decision making in business?
a) Define the ethical issues
b) Gather the facts
c) Identify the affected parties
d) Check your gut
Ans: d
Response: See page 57.
Difficulty: Moderate
Matching Exercise I
Reference: Matching Key Terms and Descriptions (each can be used more than once)
a) Deontological approach
b) Teleological (or Consequential) approach
c) Virtue ethics approach
32. Focuses on doing what is “right” based on broad, absolute and universal moral principles or
values
Ans: a
Response: See page 42.
Difficulty: Moderate
33. “What kind of world would this be if everyone behaved this way or made this kind of decision in
this type of situation?”
Ans: a
Response: See page 44.
Difficulty: Easy
34. Focuses on the integrity of the moral actor.
Ans: c
Response: See page 46.
Difficulty: Moderate
35. The______________ approach best known as consequentialist theory is Utilitarianism.
Ans: b
Response: See page 40.
Difficulty: Medium
36. For example, followers of this approach would rely on Western biblical tradition or moral
intuition for guidance.
Ans: a
Response: See page 43.
Difficulty: Medium
37. A philosophical tradition that began with Aristotle and primarily considers the actor’s character,
motivations, and intentions.
Ans: c
Response: See page 46
Difficulty: Medium
38. Focuses on the results or consequences of the decision or action.
Ans: b
Response: See page 41.
Difficulty: Medium
Matching Exercise II
Reference: Matching Approach and Weakness (each can be used more than once)
a) Deontological approach
b) Teleological approach
c) Virtue ethics approach
39. This approach that stresses community standards is limited in business because in many areas of
business there is limited agreement about what the standards are.
Ans: c
Response: See page 47.
Difficulty: Difficult
40. An individual’s principles may be in conflict with what is best and causes the least amount of
harm to another individual. For example, an individual who believes that he or she should not lie
would be conflicted about telling the Nazi’s he or she is hiding Jews in the basement.
Ans: a
Response: See pages 45-46.
Difficulty: Difficult
41. It is difficult to obtain the information required to evaluate all of the consequences for all indirect
and direct stakeholders.
Ans: b
Response: See page 41.
Difficulty: Difficult
42. The rights of a minority group can easily be sacrificed for the benefit of the majority (for
example, slavery in the United States).
Ans: b
Response: See page 42.
Difficulty: Difficult
43. A major challenge is deciding which duty, obligation, right, or principle takes precedence.
Ans: a
Response: See page 45.
Difficulty: Medium
Essay Questions
44. Discuss the disclosure rule and the ethical role model rule. When might the disclosure rule be
most helpful? When might the role model rule be most helpful?
Ans: See page 50
Difficulty: Moderate
45. You are working with an important vendor who has offered you a “sweet” deal. However, the
vendor has made it clear that he wants a decision now and your internal warning system (i.e. your
gut) is telling you that this deal might be an ethical dilemma. Using what you have learned from this
chapter, briefly describe how you should proceed. Will you answer him now? How will you think
about the “dilemma” and respond to the vendor?
Ans: Students should recognize that they should not make potential ethical decisions immediately
without time for consideration. Students should include asking for more time to think over the
decision as well as possible rules, principles, or approaches to consider (for example, the disclosure
rule) before accepting or rejecting the deal.
Response: See pages 59-60.
Difficulty: Difficult
