Business Ethics and Market Structures Quiz

<p>Norms and beliefs about right, wrong, good, and evil. (B)</p> Signup and view all the answers

<p>The standards a group has about right and wrong. (B)</p> Signup and view all the answers

<p>It's wrong to kill innocent people. (A)</p> Signup and view all the answers

<p>A belief about what is morally good (B)</p> Signup and view all the answers

<p>When one starts to question their own moral standards. (B)</p> Signup and view all the answers

<p>Companies have limited control over pricing due to competition. (A)</p> Signup and view all the answers

<p>A few sellers who supply a large portion of products. (B)</p> Signup and view all the answers

<p>To remain competitive since products are fairly similar. (B)</p> Signup and view all the answers

<p>Perfect competition has many sellers; a monopoly has only one. (C)</p> Signup and view all the answers

<p>A natural monopoly (A)</p> Signup and view all the answers

<p>A company with exclusive rights to a product through a patent. (D)</p> Signup and view all the answers

<p>Their role in providing essential services that would be inefficient to duplicate. (B)</p> Signup and view all the answers

<p>Other companies are most likely to follow suit by lowering their prices. (B)</p> Signup and view all the answers

<p>Maximization of profit, regardless of ethical concerns (D)</p> Signup and view all the answers

<p>Weakness (D)</p> Signup and view all the answers

<p>Directive and authoritarian (B)</p> Signup and view all the answers

<p>Strict legal compliance (C)</p> Signup and view all the answers

<p>As compliant within a strict interpretation of the law (D)</p> Signup and view all the answers

<p>An exponential increase in internal codes that become unworkable (C)</p> Signup and view all the answers

<p>A reactive approach to social responsibilities (C)</p> Signup and view all the answers

<p>Has a public mistake or costly event (C)</p> Signup and view all the answers

<p>Identifying the ethical implications of a situation. (C)</p> Signup and view all the answers

<p>Which option will produce the most good and do the least harm? (C)</p> Signup and view all the answers

<p>Fact gathering. (D)</p> Signup and view all the answers

<p>What are the possible impacts of the different options on the stakeholders? (C)</p> Signup and view all the answers

<p>Ethical decision making affects all levels of an organization, from corporate to societal. (A)</p> Signup and view all the answers

<p>Reflecting on the decision's outcome. (D)</p> Signup and view all the answers

<p>Balancing the good and harm caused, while respecting stakeholders' rights. (A)</p> Signup and view all the answers

<p>Identifying and eliminating unethical options before making a choice. (A)</p> Signup and view all the answers

<p>The ability to maintain something into the future. (D)</p> Signup and view all the answers

<p>Ensuring present needs are met without compromising future generations' ability to meet their needs. (B)</p> Signup and view all the answers

<p>Technological activities (D)</p> Signup and view all the answers

<p>Having the same amount of greenhouse gases removed from the atmosphere as are produced. (C)</p> Signup and view all the answers

<p>The burning of fossil fuels for energy. (B)</p> Signup and view all the answers

<p>Balancing emissions produced by removing an equivalent amount. (B)</p> Signup and view all the answers

<p>Materials are continuously reused and nature is regenerated. (C)</p> Signup and view all the answers

<p>The right to an equal inheritance of the world's natural resources. (A)</p> Signup and view all the answers

<p>To grant companies exclusive rights for a limited time to recover research and development costs. (B)</p> Signup and view all the answers

<p>To recover the high research, development, and production costs. (D)</p> Signup and view all the answers

<p>Voluntary exchange with no outside coercion or agency influence. (B)</p> Signup and view all the answers

<p>Ensuring that individuals and companies are neither forced into nor prevented from engaging in a business. (B)</p> Signup and view all the answers

<p>Participants engage in exchanges fully voluntarily, with informed consent. (A)</p> Signup and view all the answers

<p>Decentralized among numerous firms. (B)</p> Signup and view all the answers

<p>Choosing and evaluating alternatives based on ethical principles. (C)</p> Signup and view all the answers

<p>Costs and benefits go only to those directly involved in the transaction. (B)</p> Signup and view all the answers

The principles of conduct that guide individuals or groups. It encompasses the rules that govern personal lives and the study of morality.

The application of ethical principles to business institutions and activities. It involves understanding what is considered 'good' and 'right' in a business context.

Acting ethically can provide a significant competitive advantage for a company compared to those that are not ethical.

The standards an individual or group holds about what is right and wrong, good and evil. These standards guide our behavior and decisions.

Norms that we have about the kinds of actions we believe are morally right or wrong. Examples include 'Always tell the truth' and 'It's wrong to kill innocent people'.

Our beliefs about what are morally good or bad. Examples include 'Honesty is good' and 'Injustice is bad'.

Moral standards are typically based on principles of fairness, justice, and respect for others.

Consider the consequences of an action, if it violates fundamental moral principles, and if it is universally applicable.

A patent gives the inventor exclusive rights to use, sell, or make their invention for a specific period. This helps companies recoup their research and development costs.

Polaroid held the exclusive rights to instant-film technology for many years, charging high prices to recoup the high development costs. This is an example of a company enjoying a patent-based monopoly.

A perfect competition occurs when many companies compete freely and fairly, with no single company having significant market power.

Individuals are free to participate in a perfectly competitive market based on their abilities and resources.

All exchanges are voluntary in a perfectly competitive market, meaning buyers and sellers freely agree to the terms of exchange.

In a perfectly competitive market, no single buyer or seller can dictate the terms of trade. This ensures fairness and prevents monopolies.

The ethical decision-making process involves evaluating various alternatives against ethical principles to choose the most morally sound option.

Ethical decision-making involves applying ethical principles to business situations. This includes understanding what is right and wrong in a professional context.

A market structure where a few large firms dominate the industry. Each firm has a significant portion of the market share and has some control over pricing, but they must consider the reactions of their competitors.

A market structure where there is only one seller of a product or service. This seller has complete control over pricing and output.

A type of monopoly where it's more efficient for one firm to produce a good or service than for multiple firms to compete. This is often the case with public utilities.

A monopoly granted by the government to a firm that has exclusive rights to a product or process for a limited period of time. This is typically granted in exchange for innovation.

The practice of one firm lowering its prices to attract customers, which often forces other firms in the market to follow suit, leading to a price war.

The ability of a firm to set its own prices, influenced by factors like market share, competition, and the demand for the product.

When a company has a loyal customer base and is able to charge a higher price for its products due to the perceived value or brand preference.

The tendency for firms in an oligopoly to match each other's prices, often resulting in price stability or even collusion. This happens because if one firm lowers its price, its competitors are likely to follow suit to remain competitive.

The process starts by recognizing if a situation raises ethical concerns, asking questions like: Could this decision harm someone? Does it involve a choice between right and wrong?

This stage involves gathering all the relevant information about the situation. Questions asked include: What are the facts? What are the unknown facts? Who are the stakeholders?

This step involves evaluating different options for action by considering the potential consequences for those involved, weighing the moral implications, and assessing the option that maximizes good and minimizes harm.

This is the critical step where you act upon the chosen alternative based on the gathered information. This is where the ethical commitment transforms into action.

This stage involves reflecting on the consequence of your decision – what was the impact? Was it positive or negative? What lessons can be learned going forward?

The ability of something to continue functioning into the future.

A report published in 1987 by the UN World Commission on Environment and Development.

The three key areas that sustainability depends on: economic, social, and environmental.

The state where greenhouse gas emissions removed from the atmosphere balance out the emissions produced by human activities.

The process of reducing carbon emissions through various methods, such as renewable energy and carbon capture.

A system where materials are reused continuously and waste is minimized.

Gases that trap heat in the atmosphere and contribute to global warming.

The right of future generations to have access to the world's resources.

A company driven solely by profit maximization, with a focus on 'survival of the fittest.' It prioritizes profits over ethical considerations and may engage in unethical practices as long as they go undetected.

Companies in this stage operate solely within the boundaries of the law. They are driven by strict legal interpretation and often develop extensive internal codes to ensure compliance.

Companies in this stage recognize a broader responsibility beyond just legal compliance. They aim to balance profits with social responsibilities towards employees and communities.

This stage characterizes companies with a strong commitment to ethical practices exceeding legal requirements. They are proactive in promoting ethical behavior and social responsibility.

Companies in this stage actively embed ethical principles within their culture. They are known for their transparency, accountability, and commitment to building strong ethical relationships.

The company proactively shapes the ethical landscape. They go beyond traditional business models to drive positive social impact and advocate for ethical practices within their industry.

At this stage, companies consider the long-term impact of their actions on all stakeholders. They integrate ethical considerations into their business decisions and strive to contribute to a more just and sustainable society.

Companies in this stage prioritize purpose over profit. They are driven by a mission to make a meaningful difference in the world and operate with a deep sense of commitment to social justice and environmental sustainability.