Theories of Business Ethics

Description: This quiz covers the various theories of business ethics, including their key concepts, proponents, and implications for business practices.
Number of Questions: 15
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Tags: business ethics ethical theories corporate social responsibility
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Which theory of business ethics emphasizes the importance of maximizing shareholder wealth?

  1. Stakeholder theory

  2. Shareholder theory

  3. Utilitarianism

  4. Deontological ethics


Correct Option: B
Explanation:

Shareholder theory is a normative theory of business ethics that holds that the primary responsibility of a corporation is to maximize the wealth of its shareholders.

According to stakeholder theory, who are the stakeholders of a business?

  1. Shareholders only

  2. Customers and employees only

  3. Shareholders, customers, employees, and suppliers

  4. All of the above


Correct Option: D
Explanation:

Stakeholder theory is a normative theory of business ethics that holds that a corporation has a responsibility to all of its stakeholders, including shareholders, customers, employees, and suppliers.

What is the primary focus of utilitarianism in business ethics?

  1. Maximizing shareholder wealth

  2. Promoting the interests of all stakeholders

  3. Minimizing harm and maximizing benefit

  4. Following moral rules and principles


Correct Option: C
Explanation:

Utilitarianism is a consequentialist theory of ethics that holds that the morally right action is the one that produces the greatest amount of good or happiness for the greatest number of people.

Which ethical theory emphasizes the importance of following moral rules and principles?

  1. Utilitarianism

  2. Deontological ethics

  3. Virtue ethics

  4. Social contract theory


Correct Option: B
Explanation:

Deontological ethics is a normative theory of ethics that holds that the morality of an action is determined by whether it conforms to a moral rule or principle, regardless of the consequences.

What is the central concept of virtue ethics in business?

  1. Maximizing shareholder wealth

  2. Promoting the interests of all stakeholders

  3. Developing good character traits

  4. Following moral rules and principles


Correct Option: C
Explanation:

Virtue ethics is a normative theory of ethics that holds that the morally right action is the one that is performed by a person with good character traits, such as honesty, integrity, and compassion.

According to social contract theory, what is the basis for the moral obligations of businesses?

  1. The profit motive

  2. The law

  3. The social contract

  4. The Bible


Correct Option: C
Explanation:

Social contract theory is a normative theory of ethics that holds that the moral obligations of businesses are based on the social contract between businesses and society.

Which ethical theory emphasizes the importance of respecting the rights of individuals?

  1. Utilitarianism

  2. Deontological ethics

  3. Virtue ethics

  4. Rights theory


Correct Option: D
Explanation:

Rights theory is a normative theory of ethics that holds that the morally right action is the one that respects the rights of individuals.

What is the primary focus of feminist ethics in business?

  1. Maximizing shareholder wealth

  2. Promoting the interests of all stakeholders

  3. Addressing gender inequality and discrimination

  4. Following moral rules and principles


Correct Option: C
Explanation:

Feminist ethics is a normative theory of ethics that focuses on addressing gender inequality and discrimination in business.

Which ethical theory emphasizes the importance of caring for the environment?

  1. Utilitarianism

  2. Deontological ethics

  3. Virtue ethics

  4. Environmental ethics


Correct Option: D
Explanation:

Environmental ethics is a normative theory of ethics that focuses on the moral relationship between humans and the environment.

What is the primary focus of animal rights ethics in business?

  1. Maximizing shareholder wealth

  2. Promoting the interests of all stakeholders

  3. Protecting the rights of animals

  4. Following moral rules and principles


Correct Option: C
Explanation:

Animal rights ethics is a normative theory of ethics that focuses on protecting the rights of animals.

Which ethical theory emphasizes the importance of promoting social justice?

  1. Utilitarianism

  2. Deontological ethics

  3. Virtue ethics

  4. Social justice theory


Correct Option: D
Explanation:

Social justice theory is a normative theory of ethics that focuses on promoting social justice.

What is the primary focus of business ethics in the Indian philosophical tradition?

  1. Maximizing shareholder wealth

  2. Promoting the interests of all stakeholders

  3. Fulfilling one's dharma

  4. Following moral rules and principles


Correct Option: C
Explanation:

In the Indian philosophical tradition, business ethics is primarily concerned with fulfilling one's dharma, or duty, to society.

Which ethical theory emphasizes the importance of non-violence and compassion in business?

  1. Utilitarianism

  2. Deontological ethics

  3. Virtue ethics

  4. Jainism


Correct Option: D
Explanation:

Jainism is an Indian religion that emphasizes the importance of non-violence and compassion in business.

What is the primary focus of business ethics in the Buddhist tradition?

  1. Maximizing shareholder wealth

  2. Promoting the interests of all stakeholders

  3. Achieving enlightenment

  4. Following moral rules and principles


Correct Option: C
Explanation:

In the Buddhist tradition, business ethics is primarily concerned with achieving enlightenment.

Which ethical theory emphasizes the importance of developing a balanced and harmonious life in business?

  1. Utilitarianism

  2. Deontological ethics

  3. Virtue ethics

  4. Confucianism


Correct Option: D
Explanation:

Confucianism is a Chinese philosophy that emphasizes the importance of developing a balanced and harmonious life in business.

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