Which of the following is not an example of ethical egoism? 

1. The statement that “the good is that at which all things aim” is by
A. Plato.
B. Locke.
C. Aristotle.
D. Hobbes.

2. Virtue Ethics helps us determine
A. Whether an action is moral.
B. Whether a form of ethical reasoning is virtuous.
C. How to calculate between consequential and non consequential reasoning.
D. How we ought to be.

3. Which of the following is not an example of ethical egoism?
A. We should treat others well because we want to be treated well in return.
B. We should treat others well so they will treat others well.
C. We should work hard because a “job well done is its own reward.”
D. We should work hard because doing so is a good model for our children.

1. The break-even point is equal to (Points : 1)
A fixed costs divided by (sales price per unit — variable cost per unit).
B fixed costs divided by unit variable costs.
C fixed costs divided by selling price per unit.
D (sales price per unit — variable cost per unit) times the fixed costs.

2. The payment of dividends may indirectly result in closer monitoring of management’s investment activities, thus increasing shareholder value by (Points : 1)
A reducing agency costs.
B increasing information asymmetry.
C increasing a company’s amount of free cash flow.
D reducing auditing fees.

3. A firm that uses large amounts of debt financing in an industry characterized by a high degree of business risk would have ________ earnings per share fluctuations resulting from changes in levels of sales. (Points : 1)
A no
B constant

C large
D small

Question 1

A business that is concerned solely with the financial implications of lawful alternative courses of actions is likely applying which value to business?
Moral and ethical
Maximizing profits lawfully
Satisfying stakeholder interests
Social responsibility.

Question 2
A few years ago, a large clothing manufacturer decided that it had to close its last operating manufacturing facilities in the United States and locate the production to plants located in countries with low labor costs. The manufacturer provided the workers who lost their jobs with a much larger severance package than was required by their employment contracts and by statute. This caused considerable expense to the company. In making this decision, which of the following is true about how the company must have viewed the relative importance of the theories of business values discussed in the text?
Profit maximization was equal in importance to corporate social responsibility.
Corporate social responsibility was more important than profit maximization.
Profit maximization was more important than Utilitarian ethics.
The company did not believe in the value of legality.

Question 3
Which statement is correct regarding the application of the term “social responsibility” to business?
One social responsibility dilemma faced by corporate management at times is the proper nature and extent of a company’s social responsibility activities in the community.
Most state legislatures in the U.S. have now compelled corporations to adopt detailed social responsibility codes.
Social responsibility is equivalent to Kant’s Categorical Imperative ethical principle.
Under social responsibility analysis, the shareholder stakeholder group is paramount and absolute and the sole focus of any value analysis.

Question 4
Being socially responsible legally requires a company to adhere to:
Kantian ethics
Moral Saint status
Business Hero status
None of the above.

1. Which of the following was not one of the founders of utilitarianism?
A. James Mill
B. Jeremy Bentham
C. John Stuart Mill
D. Rene Descartes

2. According to utilitarianism which of the following is useful for evaluating the morality of an action?
A. People’s intentions
B. The nature of the act
C. The process of accomplishing the result
D. The result

3. Which of the following is not necessary to act morally according to utilitarianism?
A. To consider all the variables involved in an action.
B. To act as the majority wishes.
C. To consider all people to be of equal value.
D. To produce a result that produces the greatest good for the greatest number.

 

1. Sweet Tooth Bakery bakes and sells pies. Sweet Tooth has annual fixed costs of $880,000 and a variable cost per pie of $7.50. Each pie sells for $15.50 each. The firm expects to sell 500,000 pies annually. What is the break-even point in sales dollars? (Points : 1)
A $3,100,000
B $2,875,000
C $1,705,000
D $1,625,000

2. Amish Enterprises makes wooden play sets. The company pays annual rent of $400,000 per year and pays administrative salaries totaling $150,000 per year. Each play set requires $400 of wood, ten hours of labor at $70 per hour, and variable overhead costs of $100. Fixed advertising expenses equal $100,000 per year. Each play set sells for $3,200. What is Amish Enterprises’ break-even output level? (Points : 1)
A 340 play sets
B 325 play sets
C 297 play sets
D 258 play sets

3. How frequently do corporations generally pay dividends? (Points : 1)
A Annually
B Semi-annually
C Quarterly
D Monthly

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