PHI 445 Week 2 Quiz

PHI 445  Week 2 Quiz | PHI 445  Week 1 Discussion | Ashford University

Question 1

The government law that regulates mergers and acquisitions of companies is the

   Sherman Antitrust Act.  

Securities and Exchange Act.  

Sarbanes-Oxley Act.  

Clayton Antitrust Act.

Question 2

Which of the following statements is true within the philosophy of Karl Marx?

The utilitarian point of view is what motivates people to behave.  

Laborers and business owners cooperate to advance the working class. 

Workers perform repetitive tasks with no job satisfaction.  

Workers have a choice of what type of labor they perform and input into the products they make.

Question 3

A few years ago, the Bolivian government leased water rights in some of the country’s poor, drought-stricken regions to private companies, including the U.S. engineering company Bechtel. Shortly after Bechtel took control in one area, water prices tripled, sparking protests. The privatization of water is an example of

socialism. 

crony capitalism.    

free enterprise.    

capitalism.   

Question 4

A _______ is when the government gives financial support to a company who is having financial difficulty.

bailout  

grant  

payout  

dividend

Question 5

One of the main ideas of The Communist Manifesto is that the proletariat

must unite to overthrow the capitalist class.  

should allow the capitalists to control production.    

need to cooperate with the capitalists to gain economic rewards.  

should work harder to benefit the owners of business.

Question 6

After Superstorm Sandy hit New Jersey, some businesses such as gasoline stations and car repair stores raised prices to bring in windfall profits off desperate customers. This is an example of price

bidding.  

fixing.  

gouging.  

warfare.

Question 7

States have the authority to grant corporate charters, which give permission for corporations to exist. When a state decides to revoke a corporation’s charter because of some egregious crime, this is called corporate

incapacitation. 

death penalty.  

shaming.  

schizophrenia.

Question 8

The Triple Bottom Line approach measures the success of sustainable businesses in terms of

economic, legal, and environmental sustainability.  

economic, legal, and competitive sustainability.  

economic, social, and environmental sustainability.  

legal, competitive, and environmental sustainability.

Question 9

A Corporate Code of Ethics might include all of the following except

a statement of values.  

a letter from the CEO.  

personnel handbook.    

a statement of commitment to stockholders.

Question 10

You are a shareholder in a corporation that filed bankruptcy. The liabilities will be more than the assets. What you will be required to pay will be based on

nothing because you are not liable for the debt.  

the amount you have invested in the corporation.  

a proportion of all creditor claims based on the stocks you own.  

an amount based on the assets you claim on your taxes.

The answer is in Section 3.1 The Nature of Corporations in Introduction to Business Ethics.

Question 11

When a company’s leaders have the illusion of invulnerability that causes them to underestimate factors that lead to failure, this is an example of:

strategic misrepresentation  

profit motive 

organizational schizophrenia

groupthink

The answer is in Section 3.4 Threats to Ethical Corporate Culture in Introduction to Business Ethics.

Question 12

Which of the following statements is NOT true about shell corporations?

They exist only on paper and have no assets.  

They are illegal.  

Sometimes they are used for tax avoidance.  

They can be sold to someone else.