UExcel Business Ethics 3

Question 1

Which ethical decision-making model uses the question 'What would a reasonable, prudent person do in this situation?'

Accepted Answer

The reasonable person standard

Answer

The reasonable person standard evaluates decisions by asking what a thoughtful, ethical person with average judgment would do.

Question 2

What is the primary purpose of a non-disclosure agreement (NDA) in business?

Accepted Answer

To protect confidential business information from being shared with outside parties

Answer

An NDA is a legal contract that obligates parties to keep specified information confidential and not disclose it to third parties.

Question 3

Price-fixing between competitors is considered unethical and illegal because it:

Accepted Answer

Eliminates fair market competition and harms consumers by artificially inflating prices

Answer

Price-fixing is a form of antitrust violation where competitors collude to set prices, removing competition and harming consumers.

Question 4

What ethical principle is violated when a company dumps toxic waste in a developing country to avoid US regulations?

Accepted Answer

The universality principle — applying different standards to different populations based on profit motives

Answer

This violates universality (Kant's principle) by applying lower ethical standards to one group while benefiting financially, exploiting regulatory disparities.

Question 5

What is 'at-will employment' in the US context?

Accepted Answer

Employment that can be terminated by either party for any legal reason at any time

Answer

At-will employment allows either the employer or employee to end the employment relationship at any time for any lawful reason.

UExcel Practice Test

UExcel Practice Test

UExcel Business Ethics 3