Ethical Decision Making in Business

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Questions and Answers

What is the primary focus of ethical decision making in the context of business?

Protecting the interests of stakeholders (correct)

Maintaining a positive public image

Ensuring compliance with laws and regulations

Maximizing profits for shareholders

Which of the following is a characteristic of an ethical dilemma?

A conflict between two or more ethical principles (correct)

A decision that requires minimal moral consideration

A clear right and wrong answer

A situation where ethics is not relevant

Which of the following normative ethical theories is based on the idea that an action is right if it promotes the greatest good for the greatest number of people?

Utilitarianism (correct)

Virtue Ethics

Ethical Relativism

Deontology

What is the primary purpose of the Five Tenets of ethical decision making?

To provide a framework for evaluating the ethics of a decision Signup and view all the answers

What is the difference between an ethical problem and an ethical dilemma?

An ethical problem is a situation where there is a clear right or wrong answer, while an ethical dilemma is a situation where there is no clear right or wrong answer Signup and view all the answers

What is the ultimate goal of ethical decision making in the context of business?

To make decisions that are morally justifiable and sustainable Signup and view all the answers

What is the primary goal of the utilitarian approach in ethical decision making?

To take the course of action that results in the greatest benefit to the greatest number of people Signup and view all the answers

Which of the following is a key consideration in the utilitarian approach?

The possible outcomes of a decision or action Signup and view all the answers

What is the primary focus of the deontological approach in ethical decision making?

The moral rightness of the decision, regardless of the outcome Signup and view all the answers

What is the purpose of the categorical imperative in ethical decision making?

To test the moral rightness of a decision Signup and view all the answers

Which of the following approaches emphasizes the importance of fairness and justice in ethical decision making?

The fairness and justice approach Signup and view all the answers

What is the primary goal of ethical decision making in the face of dilemmas?

To result in the least harm to the fewest number of people Signup and view all the answers

How many primary theoretical perspectives are used to make better ethical decisions?

5 Signup and view all the answers

What is the purpose of the Five Tenets of ethical decision making?

To assist in dealing more effectively with ethical dilemmas Signup and view all the answers

What would have been the consequence of Wessels issuing a qualified audit opinion?

Linkway would have been placed under public scrutiny Signup and view all the answers

What is the main principle of the First Tenet?

Do the least harm to the fewest people Signup and view all the answers

What would have been the consequence of Wessels stopping the audit and investigating the financial irregularity?

Linkway would have been exposed, and its stakeholders would have been protected Signup and view all the answers

What is the main test of Tenet 2?

Can the decision be made into a universal law that applies to everyone? Signup and view all the answers

What would have been the consequence of all auditing firms ignoring financial irregularities and issuing unqualified opinions?

No financial results could ever be trusted Signup and view all the answers

Why did Wessels' decision go against the First Tenet?

He did not consider taking an action that would do the least harm to the fewest people Signup and view all the answers

What is the primary objective of the First Tenet?

To do the least harm to the fewest people Signup and view all the answers

What is the test of Tenet 2 in relation to Wessels' decision?

Would the decision be a universal principle that applies to everyone? Signup and view all the answers

What question should Wessels have asked himself regarding the financial irregularity?

Where the funds were received from and whether it was appropriate Signup and view all the answers

What is the primary purpose of the accounting and auditing profession?

To safeguard stakeholder funds Signup and view all the answers

What was the consequence of Wessels' decision to ignore the financial irregularity?

He and other KPMG partners and executives either resigned or were fired Signup and view all the answers

What is the main goal of the Tenet 5 questions?

To assess whether a decision helps an individual meet their purpose or potential Signup and view all the answers

What should Wessels have considered when deciding whether to ignore the financial irregularity?

Whether the decision would serve the community as a whole Signup and view all the answers

What is implied by Wessels' decision to ignore the financial irregularity?

He was not concerned about the community's well-being Signup and view all the answers

What is the relationship between the Tenet 5 questions and Wessels' decision?

The Tenet 5 questions would have led Wessels to make a different decision Signup and view all the answers

What can be inferred about Wessels' decision-making process?

He prioritized his personal interests over the community's well-being Signup and view all the answers

Which type of professional requires formal licensing and is placed above the social efficiency barrier?

Auditor Signup and view all the answers

What is the primary function of professional bodies in terms of regulating entrance to the profession?

To regulate entrance to the profession through education and training Signup and view all the answers

Which of the following professional bodies is NOT linked to the accounting profession in South Africa?

Medical Association of South Africa Signup and view all the answers

What is the primary role of an accountant who performs duties of an accountant?

To service the private interests of clients Signup and view all the answers

Which of the following is a characteristic of a 'professing' professional?

Creates knowledge and is generally in the public interest Signup and view all the answers

What is the primary responsibility of professional bodies?

To protect the standing of their professions Signup and view all the answers

Which of the following professional bodies is responsible for administering a registration system for candidates?

Professional bodies Signup and view all the answers

What is the primary distinction between an accountant and an auditor?

An accountant performs duties of an accountant, while an auditor performs duties of an auditor Signup and view all the answers

Study Notes