Ethical Theories in Business: A Comprehensive Guide for Business Studies

Question 1

According to utilitarianism, what is the primary ethical goal?

Accepted Answer

Maximizing happiness for the greatest number of people.

Answer

Following religious commandments.

Answer

Developing virtuous character.

Answer

Prioritizing stakeholder interests.

Question 2

Which ethical theory emphasizes duties and obligations, regardless of consequences?

Accepted Answer

Deontology

Answer

Utilitarianism

Answer

Virtue ethics

Answer

Ethical egoism

Question 3

According to virtue ethics, which quality is essential for leading a virtuous life?

Accepted Answer

Integrity

Answer

Intelligence

Answer

Wealth

Answer

Physical strength

Question 4

Which ethical theory prioritizes the well-being of various groups affected by a decision?

Accepted Answer

Stakeholder theory

Answer

Utilitarianism

Answer

Deontology

Answer

Virtue ethics

Question 5

Which ethical principle prohibits lying, even in extreme circumstances?

Accepted Answer

Categorical imperative

Answer

Utilitarian principle

Answer

Virtue of honesty

Answer

Stakeholder principle

Question 6

A company that promotes ethical conduct among its employees is embracing which ethical theory?

Accepted Answer

Virtue ethics

Answer

Utilitarianism

Answer

Deontology

Answer

Stakeholder theory

Question 7

How does deontology guide ethical decision-making in corporate whistle-blowing situations?

Accepted Answer

By emphasizing adherence to universal moral principles like honesty and duty, regardless of consequences.

Answer

By allowing individuals to make ethical choices based solely on their personal beliefs.

Answer

By prioritizing the intentions of those involved in the situation.

Answer

By aiming to maximize overall happiness or benefit for the majority.

Question 8

Which ethical theory focuses on maximizing overall happiness by considering the consequences of actions?

Accepted Answer

Utilitarianism

Answer

Stakeholder theory

Answer

Virtue ethics

Answer

Deontology

Question 9

Which ethical theory emphasizes following moral rules and duties, regardless of the outcome?

Accepted Answer

Deontology

Answer

Stakeholder theory

Answer

Utilitarianism

Answer

Virtue ethics

Question 10

Which ethical theory focuses on developing good character traits and moral virtues?

Accepted Answer

Virtue ethics

Answer

Deontology

Answer

Utilitarianism

Answer

Stakeholder theory

Question 11

Which ethical theory considers the interests of all parties affected by business decisions, including employees, customers, and the community?

Accepted Answer

Stakeholder theory

Answer

Virtue ethics

Answer

Deontology

Answer

Utilitarianism

Question 12

A company decides to close a factory, resulting in job losses for some employees but increasing profits for the company and benefiting many shareholders. Which ethical theory might justify this decision?

Accepted Answer

Utilitarianism

Answer

Stakeholder theory

Answer

Deontology

Answer

Virtue ethics

Question 13

A company is considering selling a product that is potentially harmful to customers.  Which ethical theory would likely require the company to inform customers about the risks, even if it means losing sales?

Accepted Answer

Deontology

Answer

Utilitarianism

Answer

Virtue ethics

Answer

Stakeholder theory

Question 14

Which ethical theory emphasizes the importance of developing honesty, integrity, and fairness in business leaders?

Accepted Answer

Virtue ethics

Answer

Stakeholder theory

Answer

Utilitarianism

Answer

Deontology

Question 15

Which of the following is a potential weakness of utilitarianism?

Accepted Answer

It can sometimes justify actions that harm a minority group if the overall benefit to the majority is greater.

Answer

It considers the consequences of actions, which is important for ethical decision-making.

Answer

It aims to maximize happiness for the greatest number of people.

Answer

It is a straightforward and practical framework for decision-making.

Question 16

Which of the following is a limitation of deontology?

Accepted Answer

It can be difficult to determine which rules apply in specific situations, especially when rules conflict.

Answer

It emphasizes the importance of following rules, even if the consequences are negative.

Answer

It provides clear guidelines for decision-making.

Answer

It focuses on moral obligations, which is important for ethical behavior.

Question 17

Which ethical theory is most closely associated with the idea that the best action is the one that produces the greatest good for the greatest number of people?

Accepted Answer

Utilitarianism

Answer

Deontology

Answer

Stakeholder theory

Answer

Virtue ethics

Question 18

Which ethical theory focuses on an individual's duties and obligations, regardless of the consequences?

Accepted Answer

Deontology

Answer

Virtue ethics

Answer

Stakeholder theory

Answer

Utilitarianism

Question 19

What ethical theory emphasizes the development of good character traits like honesty and integrity?

Accepted Answer

Virtue ethics

Answer

Deontology

Answer

Utilitarianism

Answer

Stakeholder theory

Question 20

Which ethical approach prioritizes the interests and well-being of all stakeholders involved in a decision?

Accepted Answer

Stakeholder theory

Answer

Utilitarianism

Answer

Deontology

Answer

Virtue ethics

Question 21

Which ethical theory believes that certain actions are inherently right or wrong, even if they lead to good consequences?

Accepted Answer

Deontology

Answer

Stakeholder theory

Answer

Utilitarianism

Answer

Virtue ethics

Question 22

In utilitarianism, the best ethical decision is the one that:

Accepted Answer

Maximizes overall happiness or well-being.

Answer

Strictly follows established moral rules.

Answer

Prioritizes the interests of the most powerful stakeholders.

Answer

Minimizes harm to the fewest people.

Question 23

Which ethical theory suggests that businesses have a responsibility to consider the interests of all groups affected by their decisions?

Accepted Answer

Stakeholder theory

Answer

Virtue ethics

Answer

Deontology

Answer

Utilitarianism

Question 24

What is one advantage of using ethical theories in business decision-making?

Accepted Answer

They provide a framework for analyzing and evaluating moral issues.

Answer

They eliminate all ethical dilemmas and uncertainties.

Answer

They guarantee the best possible outcome for all stakeholders.

Answer

They ensure that decisions are always based on personal values.

Question 25

A company lays off 100 employees to cut costs, even though it knows this will cause hardship for the workers and their families. This decision prioritizes the company's financial well-being over the employees' well-being. Which ethical theory aligns most closely with this decision?

Accepted Answer

Utilitarianism

Answer

Deontology

Answer

Virtue Ethics

Answer

Stakeholder Theory

Question 26

A manager is respected by colleagues and employees for her honesty, integrity, and fairness. Which ethical theory emphasizes the importance of these personal virtues in decision-making?

Accepted Answer

Virtue Ethics

Answer

Stakeholder Theory

Answer

Deontology

Answer

Utilitarianism

Question 27

Before expanding into a new country, a company carefully considers its potential impacts on the local community, environment, and employees. This approach aligns most closely with which ethical theory?

Accepted Answer

Stakeholder Theory

Answer

Deontology

Answer

Virtue Ethics

Answer

Utilitarianism

Question 28

A business owner is faced with a dilemma:  he can either pay his employees a fair wage but reduce his profits, or he can pay them a lower wage and increase his profits. Which ethical theory emphasizes the importance of fairness and justice in this scenario, suggesting that he should prioritize fair wages for his employees?

Accepted Answer

Deontology

Answer

Virtue Ethics

Answer

Utilitarianism

Answer

Stakeholder Theory

Question 29

A company is considering launching a new product that is environmentally friendly but less profitable than their existing products. Which ethical theory would likely support this decision, even though it may result in lower profits for the company?

Accepted Answer

Virtue Ethics

Answer

Utilitarianism

Answer

Deontology

Question 30

A company is considering outsourcing some of its operations to a country with lower labor costs. This decision could potentially benefit the company financially but may have negative consequences for workers in the home country. Which ethical theory would likely raise concerns about the potential negative impact on workers in the home country?

Accepted Answer

Stakeholder Theory

Answer

Utilitarianism

Answer

Virtue Ethics

Answer

Deontology

Question 31

A company is facing a significant ethical dilemma. They can either follow the law, which might harm their profits, or break the law and potentially increase their profits. Which ethical theory would likely suggest that the company should follow the law, even if it might result in lower profits?

Accepted Answer

Deontology

Answer

Utilitarianism

Answer

Stakeholder Theory

Answer

Virtue Ethics

Question 32

A company is faced with a decision that could significantly benefit its shareholders but may negatively impact the local community. Which ethical theory would likely emphasize the need to consider the interests of the local community, even if it means sacrificing some shareholder profits?

Accepted Answer

Stakeholder Theory

Answer

Utilitarianism

Answer

Deontology

Answer

Virtue Ethics

Question 33

A pharmaceutical company is deciding whether to release a new drug that has shown promising results in trials but also has potential side effects. Which ethical theory would prioritize maximizing the overall benefit to society, even if it means accepting some risks?

Accepted Answer

Utilitarianism

Answer

Deontology

Answer

Stakeholder Theory

Answer

Virtue Ethics

Question 34

A company is considering using cheaper materials that could potentially harm the environment in the long term.  Which ethical theory would argue against this decision based on the principle of universalizability, regardless of potential profits?

Accepted Answer

Deontology

Answer

Virtue Ethics

Answer

Utilitarianism

Question 35

A manager who always strives for honesty, fairness, and transparency in their dealings with employees and customers is demonstrating principles aligned with which ethical theory?

Accepted Answer

Virtue Ethics

Answer

Utilitarianism

Answer

Deontology

Question 36

Which ethical theory emphasizes the responsibility of a business to consider the interests of all groups and individuals affected by its actions, including employees, customers, suppliers, and the community?

Accepted Answer

Stakeholder Theory

Answer

Deontology

Answer

Utilitarianism

Answer

Virtue Ethics

Question 37

A company prioritizes employee well-being and fair wages, even if it slightly reduces profits. This decision aligns with which ethical theory?

Accepted Answer

Stakeholder Theory

Answer

Utilitarianism

Answer

Deontology

Question 38

A company donates a portion of its profits to a local charity. While this action might be seen as ethically commendable, which theory might question whether it truly maximizes overall happiness if it leads to lower dividends for shareholders?

Accepted Answer

Utilitarianism

Answer

Virtue Ethics

Answer

Deontology

Answer

Stakeholder Theory

Question 39

Which ethical theory argues that ethical actions stem from cultivating virtuous character traits, such as honesty, integrity, and compassion?

Accepted Answer

Virtue Ethics

Answer

Deontology

Answer

Utilitarianism

Question 40

A company is facing a challenging ethical dilemma with no easy solutions.  Which ethical theory would suggest seeking a solution that aligns with the decision-maker's sense of moral duty and universal principles?

Accepted Answer

Deontology

Answer

Virtue Ethics

Answer

Utilitarianism

Answer

Stakeholder Theory

Question 41

Which ethical theory acknowledges the interconnectedness of various stakeholders and emphasizes the importance of dialogue and engagement in ethical decision-making?

Accepted Answer

Stakeholder Theory

Answer

Deontology

Answer

Virtue Ethics

Answer

Utilitarianism

Question 42

Which ethical theory places the primary focus on the maximization of happiness for the greatest number of people?

Accepted Answer

Utilitarianism

Answer

Virtue ethics

Answer

Deontology

Answer

Stakeholder theory

Question 43

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

Accepted Answer

Deontology

Answer

Virtue ethics

Answer

Stakeholder theory

Answer

Utilitarianism

Question 44

Which ethical theory focuses on developing and acting in accordance with virtues, such as honesty, courage, and compassion?

Accepted Answer

Virtue ethics

Answer

Stakeholder theory

Answer

Utilitarianism

Answer

Deontology

Question 45

Which ethical theory considers the interests and rights of all stakeholders when making decisions?

Accepted Answer

Stakeholder theory

Answer

Virtue ethics

Answer

Deontology

Answer

Utilitarianism

Question 46

Which of the following is not a strength of utilitarianism?

Accepted Answer

Provides clear and specific guidance for decision-making

Answer

Maximizes overall happiness

Answer

Considers the effects of actions on all individuals

Question 47

Which ethical theory would suggest that a decision to close a factory, resulting in job losses, is justified if the overall economic benefits to society outweigh the negative impact on the affected workers?

Accepted Answer

Utilitarianism

Answer

Stakeholder theory

Answer

Deontology

Answer

Virtue ethics

Question 48

A company is considering expanding its operations into a developing country where labor laws are less stringent. Which ethical theory would likely emphasize the potential harm to workers in this decision?

Accepted Answer

Deontology

Answer

Virtue ethics

Answer

Utilitarianism

Question 49

A pharmaceutical company is faced with a difficult decision: whether to raise the price of a life-saving drug to maximize profits or keep the price affordable to ensure wider access. Which ethical theory would likely prioritize the greatest good for the greatest number of people?

Accepted Answer

Utilitarianism

Answer

Stakeholder theory

Answer

Virtue ethics

Answer

Deontology

Question 50

A manager is considering offering a promotion to a colleague who has consistently demonstrated integrity and fairness in their work. Which ethical theory aligns with this decision based on character and moral virtues?

Accepted Answer

Virtue ethics

Answer

Deontology

Answer

Utilitarianism

Answer

Stakeholder theory

Question 51

A company is facing a public relations crisis due to its environmental practices. Which ethical theory would suggest considering the interests of all stakeholders, including employees, customers, and the community, in managing the crisis?

Accepted Answer

Stakeholder theory

Answer

Deontology

Answer

Utilitarianism

Answer

Virtue ethics

Question 52

A company is developing a new product that could potentially have harmful side effects. Which ethical theory would emphasize the importance of adhering to universal moral principles, even if it means sacrificing potential profits?

Accepted Answer

Deontology

Answer

Virtue ethics

Answer

Utilitarianism

Answer

Stakeholder theory

Question 53

Which of the following is NOT a key characteristic of utilitarianism?

Accepted Answer

Focuses on individual rights and duties

Answer

Considers the consequences of actions

Answer

Seeks to maximize overall happiness

Answer

Emphasizes the greatest good for the greatest number

Question 54

Which ethical theory emphasizes the development of moral character and virtues as essential for ethical decision-making?

Accepted Answer

Virtue ethics

Answer

Utilitarianism

Answer

Deontology

Answer

Stakeholder theory

Question 55

A company is considering outsourcing its manufacturing operations to a country with lower labor costs. Which of the following is a potential ethical concern associated with this decision from a deontological perspective?

Accepted Answer

Exploiting workers in the outsourcing country by paying them unfair wages

Answer

Losing control over the quality of the manufactured products

Answer

Reducing the company's overall profits

Question 56

Which of the following is a strength of stakeholder theory as an ethical framework for business decision-making?

Accepted Answer

It encourages a more holistic approach to considering the interests of various parties affected by business decisions.

Answer

It provides clear-cut rules for making ethical choices in all situations.

Question 57

A company is facing a dilemma: whether to invest in a new technology that is environmentally friendly but less profitable or to continue using a less sustainable but more profitable technology. Which ethical theory would likely emphasize the importance of considering the long-term environmental impact of the decision?

Accepted Answer

Utilitarianism

Answer

Virtue ethics

Answer

Deontology

Answer

Stakeholder theory