Test Bank For Legal and Regulatory Environment of Business 16th Edition Pagnattaro

CHAPTER NO 2

Student: ___________________________________________________________________________

1. Federal sentencing guidelines reduce criminal fines for legal violations in companies that have taken specific steps to self-police ethical/legal conduct.
   True False
2. Economist Adam Smith believed that humans could not look beyond self-interest. True False
3. Growing diversity in the workplace has reduced concerns over ethical values. True False
4. Diverse societies are characterized as societies that have a single, unified system of ethical values that guide behavior.

   True False

5. Because of the increased influence of the Internet and extensive coverage of business in the news media, it has become increasingly difficult for businesses to hide questionable behavior.
   True False
6. Federal law reduces criminal penalties for companies that take steps to control their ethical conduct. True False
7. Adam Smith, the author of The Wealth of Nations, perhaps the most famous book on economic theory ever written, denied the existence of any moral element in human nature that goes beyond self- interest.
   True False
8. It is appropriate for those engaged in international business to assume that all countries have the same ethical and moral values.
   True False
9. Ultimately, the commitment to ethical values is superior to mere observance of the law in ensuring responsible business behavior.
   True False
10. Formalism is primarily a duty-based view of ethics that creates moral obligations that one must satisfy in order to be ethical.
    True False