Great Life, Mission, Ethics Chapter 3 1e Complete Test Bank

Package Title: Godfrey Test Bank

Course Title: Ethics and Business WileyPLUS

Chapter Number 3

Question type: Multiple-choice

1) The term eudemonia is best defined as which of the following?

a) The term refers to flourishing.

b) The term refers to being healthy.

c) The term refers to being overly philanthropic.

d) The term refers to being ethical in all circumstances.

Title: Chapter 3 Test Bank, Question 1

Difficulty: Easy

Bloomcode: Knowledge

Min: 1

AACSB: Ethics

Learning Objective: LO 3.1 Define hedonia, eudemonia, and PERMA, and identify the types of happiness described in each concept.

Section Reference: Sec: 3.1 Hedonia, Eudemonia, Flourishing, and a PERMA Life

Solution: The term eudemonia refers to flourishing and was set forth by Aristotle.

2) Happiness is generally considered to be which of the following?

a) part of an ethical life

b) a goal of business

c) achieved by material wealth and prosperity

d) only attained by a small percentage of the population

Title: Chapter 3 Test Bank, Question 2

Difficulty: Easy

Bloomcode: Knowledge

Min: 1

AACSB: Ethics

Learning Objective: LO 3.1 Define hedonia, eudemonia, and PERMA, and identify the types of happiness described in each concept.

Section Reference: Sec: 3.1 Hedonia, Eudemonia, Flourishing, and a PERMA Life

Solution: Happiness is considered a part of an ethical life.

3) Hedonism is best described as which of the following?

a) Hedonism is the feeling achieved by consistently making ethical choices.

b) Hedonism is the idea that happiness is positive affect, feeling good, or pleasure.

c) Hedonism is the idea that the path to happiness lies in self-sacrifice.

d) Hedonism is the idea that the denial of pleasure helps achieve happiness.

Title: Chapter 3 Test Bank, Question 3

Difficulty: Easy

Bloomcode: Knowledge

Min: 1

AACSB: Ethics

Learning Objective: LO 3.1 Define hedonia, eudemonia, and PERMA, and identify the types of happiness described in each concept.

Section Reference: Sec: 3.1 Hedonia, Eudemonia, Flourishing, and a PERMA Life

Solution: Hedonism is the idea that happiness is positive affect, feeling good, or pleasure

4) Which of the following correctly describes the term Eudaimonia?

a) Eudaimonia is a Greek word that means happiness.

b) Eudaimonia is a Greek word that relates to having a good guardian spirit.

c) Eudaimonia is a Greek word that refers to the power of one’s inner being.

d) Eudaimonia is a Greek word that relates to always doing the right thing in difficult circumstances.

Title: Chapter 3 Test Bank, Question 4

Difficulty: Easy

Bloomcode: Knowledge

Min: 1

AACSB: Ethics

Learning Objective: LO 3.1 Define hedonia, eudemonia, and PERMA, and identify the types of happiness described in each concept.

Section Reference: Sec: 3.1 Hedonia, Eudemonia, Flourishing, and a PERMA Life

Solution: Eudaimonia is a Greek word that relates to having a good guardian spirit.

5) The “managing by values” movement highlighted the importance of which of the following?

a) the need to outsource many nonessential business functions

b) the importance of financial over nonfinancial performance metrics

c) the importance of core values in firms that consistently performed well

d) the need to remove barriers to entry for underrepresented minorities such as immigrants

Title: Chapter 3 Test Bank, Question 5

Difficulty: Easy

Bloomcode: Knowledge

Min: 1

AACSB: Ethics

Learning Objective: LO 3.2 Describe the three categories of values leaders must consider when they “manage by values.”

Section Reference: Sec: 3.2 Leading by Values: A Tool for Organizational Leaders

Solution: The “managing by values” movement highlighted the importance of a set of core values as a key differentiator in firms that consistently performed well.

6) A recent survey indicated what percentage of companies list integrity as a core company value?

a) 87%

b) 28%

c) 57%

d) 42%

Title: Chapter 3 Test Bank, Question 6

Difficulty: Easy

Bloomcode: Knowledge

Min: 1

AACSB: Ethics

Learning Objective: LO 3.2 Describe the three categories of values leaders must consider when they “manage by values.”

Section Reference: Sec: 3.2 Leading by Values: A Tool for Organizational Leaders

Solution: A recent survey indicated 57% of companies list integrity as a core company value.

7) Which of the following represents a major risk of managing by values?

a) hypocrisy

b) bankruptcy

c) inconsistency among different business segments

d) increased scrutiny by the firm’s competitors

Title: Chapter 3 Test Bank, Question 7

Difficulty: Easy

Bloomcode: Knowledge

Min: 1

AACSB: Ethics

Learning Objective: LO 3.2 Describe the three categories of values leaders must consider when they “manage by values.”

Section Reference: Sec: 3.2 Leading by Values: A Tool for Organizational Leaders

Solution: A major risk of managing by values is the risk of hypocrisy. The firm may publicize values they don’t practice.

8) The term greenwashing refers to which of the following?

a) attempts by firms to make themselves look more profitable

b) firms attempting to use unethical practices to force competitors out of the market

c) firms espousing environmental values that they don’t practice

d) firm’s efforts and initiatives to become more environmentally friendly

Title: Chapter 3 Test Bank, Question 8

Difficulty: Easy

Bloomcode: Knowledge

Min: 1

AACSB: Ethics

Learning Objective: LO 3.2 Describe the three categories of values leaders must consider when they “manage by values.”

Section Reference: Sec: 3.2 Leading by Values: A Tool for Organizational Leaders

Solution: The term greenwashing refers to firms espousing values that they don’t practice.

9) Which of the following choices correctly represents the three fundamental categories of values?

a) basic beliefs, ethical values, and unethical values

b) ethical values, industrial values, and business values

c) basic beliefs, business values, and ethical values

d) ethical values, business values, and complex beliefs

Title: Chapter 3 Test Bank, Question 9

Difficulty: Easy

Bloomcode: Knowledge

Min: 1

AACSB: Ethics

Learning Objective: LO 3.2 Describe the three categories of values leaders must consider when they “manage by values.”

Section Reference: Sec: 3.2 Leading by Values: A Tool for Organizational Leaders

Solution: The three fundamental categories of values are basic beliefs, business values, and ethical values.

10) Which of the following correctly describes basic beliefs?

a) form the normative worldview of the business, or the theory of how the business operates

b) form the positive worldview of the business, or the theory of how the business operates

c) These types of beliefs represent virtues that Aristotle and Confucius taught.

d) the most intangible values that a business prioritizes

Title: Chapter 3 Test Bank, Question 10

Difficulty: Easy

Bloomcode: Knowledge

Min: 1

AACSB: Ethics

Learning Objective: LO 3.2 Describe the three categories of values leaders must consider when they “manage by values.”

Section Reference: Sec: 3.2 Leading by Values: A Tool for Organizational Leaders

Solution: Basic beliefs form the normative worldview of the business, or the theory of how the business operates.

11) Which of the following most accurately describes business values?

a) Business values were set forth in ideas expressed by both Aristotle and Confucius.

b) Business values are the most important intangible values that a business prioritizes and focuses on.

c) Business values form the normative worldview of the business.

d) Business values form the positivistic worldview of the business.

Title: Chapter 3 Test Bank, Question 11

Difficulty: Easy

Bloomcode: Knowledge

Min: 1

AACSB: Ethics

Learning Objective: LO 3.2 Describe the three categories of values leaders must consider when they “manage by values.”

Section Reference: Sec: 3.2 Leading by Values: A Tool for Organizational Leaders

Solution: Business values are the most important intangible values that a business prioritizes and focuses on.

12) Which of the following most accurately describes ethical values?

a) Ethical values form the normative worldview of the business.

b) Ethical values are the most important intangible values that a business prioritizes.

c) Ethical values often look like the virtues taught by Aristotle and Confucius.

d) Ethical values help form theories of how the business operates.

Title: Chapter 3 Test Bank, Question 12

Difficulty: Easy

Bloomcode: Knowledge

Min: 1

AACSB: Ethics

Learning Objective: LO 3.2 Describe the three categories of values leaders must consider when they “manage by values.”

Section Reference: Sec: 3.2 Leading by Values: A Tool for Organizational Leaders

Solution: Ethical values often look like the virtues taught by Aristotle and Confucius.

13) Under the category of basic beliefs, which of the following is true?

a) Employees can be seen as interchangeable cogs or assets.

b) Employees are simply a means to an end.

c) It is okay for employees to act unethically if it betters the firm.

d) Employees are considered intangible assets.

Title: Chapter 3 Test Bank, Question 13

Difficulty: Easy

Bloomcode: Knowledge

Min: 1

AACSB: Ethics

Learning Objective: LO 3.2 Describe the three categories of values leaders must consider when they “manage by values.”

Section Reference: Sec: 3.2 Leading by Values: A Tool for Organizational Leaders

Solution: Under the fundamental category of basic beliefs, people can be seen as interchangeable cogs or assets.

14) Which of the following choices correctly represents the value of the 8-Question Framework?

a) The framework helps employees focus on not getting caught and punished for unethical behavior.

b) The framework sets forth a systematic method for making business and personal decisions.

c) The framework, when used properly, ensures that employees can never commit unethical acts.

d) The framework is designed to ensure that employees understand that unethical acts are permitted so long as these acts are not illegal.

Title: Chapter 3 Test Bank, Question 14

Difficulty: Easy

Bloomcode: Knowledge

Min: 1

AACSB: Ethics

Learning Objective: LO 3.4 Evaluate the ethical component of business decisions using the 8-Question Framework.

Section Reference: Sec: 3.4 Decision-Making and Ethics: Eight Questions That Combine Business and Ethics

Solution: The 8-Question Framework sets forth a systematic method for making business (and personal) decisions.

15) Which of the following is one of the four major areas of focus of the 8-Question Framework?

a) revenues associated with a decision

b) fit with what matters most

c) value focused on the firm’s employees

d) understanding ways to increase profitability

Title: Chapter 3 Test Bank, Question 15

Difficulty: Easy

Bloomcode: Knowledge

Min: 1

AACSB: Ethics

Learning Objective: LO 3.4 Evaluate the ethical component of business decisions using the 8-Question Framework.

Section Reference: Sec: 3.4 Decision-Making and Ethics: Eight Questions That Combine Business and Ethics

Solution: One of the four major areas of focus of the 8-Question Framework is to fit with what matters most.

16) The strategic perspective of the 8-Question Framework for business decision making focuses on which of the following?

a) Does this decision improve our sustainable competitive advantage, with respect to strategic fit?

b) How does this decision treat stakeholders as subjects with intrinsic value?

c) What extra risks need to be factored into the decision?

d) What alternative courses of action might exist?

Title: Chapter 3 Test Bank, Question 16

Difficulty: Easy

Bloomcode: Knowledge

Min: 1

AACSB: Ethics

Learning Objective: LO 3.4 Evaluate the ethical component of business decisions using the 8-Question Framework.

Section Reference: Sec: 3.4 Decision-Making and Ethics: Eight Questions That Combine Business and Ethics

Solution: The strategic perspective of the 8-Question Framework for business decision making focuses on how this decision improves our sustainable competitive advantage, with respect to strategic fit.

17) The models discussed in the chapter refer to which of the following?

a) People are rational, self-serving beings.

b) People are unified beings who need a sense of purpose and meaning.

c) People are irrational beings who need to feel they belong as part of a larger community.

d) People are irrational beings who always look out for their own interests.

Title: Chapter 3 Test Bank, Question 17

Difficulty: Easy

Bloomcode: Knowledge

Min: 1

AACSB: Ethics

Learning Objective: LO 3.5 Apply the tools and concepts you’ve learned in this chapter to real-life business situations.

Section Reference: Sec: 3.5 Mini-Cases and Discussions

Solution: The models discussed in the chapter refer to people as unified beings, needing a sense of purpose and an ethical system that includes both work and leisure activities.

18) The opening case in the chapter describes Martin Burt as which of the following?

a) an unhappy person living an unhappy life

b) a happy person living an unhappy life

c) a happy person living an ethical life

d) an unhappy person living an unethical life

Title: Chapter 3 Test Bank, Question 18

Difficulty: Easy

Bloomcode: Knowledge

Min: 1

AACSB: Ethics

Learning Objective: LO 3.5 Apply the tools and concepts you’ve learned in this chapter to real-life business situations.

Section Reference: Sec: 3.5 Mini-Cases and Discussions

Solution: The opening case in the chapter describes Martin Burt as a happy person living an ethical life.

19) The move to “managing by values” became popular at what point?

a) in the mid-1990s upon publication of the book Built to Last

b) in the early 2000s, after various financial crises

c) in 2009, after the housing market collapse

d) when businesses realized short-term focus was more important than long-term focus

Title: Chapter 3 Test Bank, Question 19

Difficulty: Easy

Bloomcode: Knowledge

Min: 1

AACSB: Ethics

Learning Objective: LO 3.5 Apply the tools and concepts you’ve learned in this chapter to real-life business situations.

Section Reference: Sec: 3.5 Mini-Cases and Discussions

Solution: The move to “managing by values” became popular in the mid-1990s upon publication of the book Built to Last.

20) With which of the following definitions of happiness would utilitarian philosopher Jeremy Bentham agree?

a) Happiness is a high level of positive and low level of negative feelings.

b) Happiness is a low level of positive and a high level of negative feelings.

c) Happiness is the feeling of security that comes with material prosperity.

d) Happiness is having lived in a somewhat satisfactory way.

Title: Chapter 3 Test Bank, Question 20

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 3.1 Define hedonia, eudemonia, and PERMA, and identify the types of happiness described in each concept.

Section Reference: Sec: 3.1 Hedonia, Eudemonia, Flourishing, and a PERMA Life

Solution: Happiness is a high level of positive and low level of negative feelings.

21) Andrew has a eudaimonistic view of life. As such, he finds happiness is

a) a life lived in pursuit of material gain and wealth

b) a life lived in a manner that he finds satisfying

c) a life lived in self-sacrifice and self-denial

d) a life lived in service to himself and his family

Title: Chapter 3 Test Bank, Question 21

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 3.1 Define hedonia, eudemonia, and PERMA, and identify the types of happiness described in each concept.

Section Reference: Sec: 3.1 Hedonia, Eudemonia, Flourishing, and a PERMA Life

Solution: A life lived in a manner that an individual finds or has found satisfying is a happy life.

22)?How can Benito determine his happiness level using the hedonism happiness “index?”

a) Multiply the number of pleasurable feelings by his current age.

b) Add up his pleasurable feelings and subtract his negative feelings.

c) Add up his negative feelings and subtract his positive feelings.

d) Add up his negative feelings and divide by his age.

Title: Chapter 3 Test Bank, Question 22

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 3.1 Define hedonia, eudemonia, and PERMA, and identify the types of happiness described in each concept.

Section Reference: Sec: 3.1 Hedonia, Eudemonia, Flourishing, and a PERMA Life

Solution: Pleasurable feelings increase the happiness index, and negative feelings are subtracted from the index.

23) Aristotle captured the essence of living a happy and fulfilling life in which of the following?

a) eudemonia, which speaks to fulfillment

b) eudemonia, which speaks to increasing material wealth

c) hedonism, which speaks to always making ethical choices

d) hedonism, which speaks to not breaking the law

Title: Chapter 3 Test Bank, Question 23

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 3.1 Define hedonia, eudemonia, and PERMA, and identify the types of happiness described in each concept.

Section Reference: Sec: 3.1 Hedonia, Eudemonia, Flourishing, and a PERMA Life

Solution: Aristotle captured the essence of living a happy and fulfilling life in eudemonia, which speaks to fulfillment.

24) Which of the following is a key concept in Aristotle’s eudemonia?

a) the idea that an individual’s personal and professional lives are totally separate

b) the notion that one’s personal and professional lives interface

c) the idea that an individual’s overarching goal should be maximizing their wealth

d) the concept that ethical decisions are actually easy to make

Title: Chapter 3 Test Bank, Question 24

Difficulty: Easy

Bloomcode: Comprehension

Min: 2

AACSB: Ethics

Learning Objective: LO 3.1 Define hedonia, eudemonia, and PERMA, and identify the types of happiness described in each concept.

Section Reference: Sec: 3.1 Hedonia, Eudemonia, Flourishing, and a PERMA Life

Solution: A key concept in Aristotle’s eudemonia is the notion that one’s personal and professional lives interface.

25) Which of the following most accurately describes the “level of happiness” as set forth by the hedonistic approach?

a) This represents the difference between an individual’s pleasurable feelings and negative feelings.

b) This represents the happiness one can attain based on material wealth and possessions.

c) This represents the highest level of happiness one can attain in his or her life.

d) This speaks to the balance of happiness attained between personal and professional pursuits.

Title: Chapter 3 Test Bank, Question 25

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 3.1 Define hedonia, eudemonia, and PERMA, and identify the types of happiness described in each concept.

Section Reference: Sec: 3.1 Hedonia, Eudemonia, Flourishing, and a PERMA Life

Solution: The “level of happiness” as set forth by the hedonistic approach represents the net difference between an individual’s pleasurable feelings and negative feelings.

26) Due to a close connection between a philosopher’s views of pleasure and pain and economists’ views of utility

a) hedonism is often translated into economic terms

b) eudemonia is often associated with material gain

c) hedonism is often translated into ethical and nonethical terms

d) eudemonia is often associated with both personal and professional happiness and ethics

Title: Chapter 3 Test Bank, Question 26

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 3.1 Define hedonia, eudemonia, and PERMA, and identify the types of happiness described in each concept.

Section Reference: Sec: 3.1 Hedonia, Eudemonia, Flourishing, and a PERMA Life

Solution: Due to a close connection between a philosopher’s views of pleasure and pain and economists’ views of utility, hedonism is often translated into economic terms.

27) Which of the following is an assumption of hedonism within a business?

a) It is better to be a worker than the boss because of decreased responsibility.

b) It is better to be a boss than a worker because of authority, power, and status.

c) It is better to view work as a means to an end for self-enrichment.

d) It is better and more fulfilling to always act ethically in the workplace.

Title: Chapter 3 Test Bank, Question 27

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 3.1 Define hedonia, eudemonia, and PERMA, and identify the types of happiness described in each concept.

Section Reference: Sec: 3.1 Hedonia, Eudemonia, Flourishing, and a PERMA Life

Solution: An assumption of hedonism within a business is that it’s better to be a boss than a worker because of authority, power, and status.

28) Which of the following is a common reason hedonism is advocated in society?

a) Hedonism promotes self-sacrifice and always acting ethically.

b) Hedonism promotes spending money.

c) Hedonists often believe that material wealth will lead to happiness.

d) Hedonism is actively encouraged by the rich and famous.

Title: Chapter 3 Test Bank, Question 28

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 3.1 Define hedonia, eudemonia, and PERMA, and identify the types of happiness described in each concept.

Section Reference: Sec: 3.1 Hedonia, Eudemonia, Flourishing, and a PERMA Life

Solution: A common reason hedonism is advocated in society is because hedonists often believe that material wealth will lead to happiness.

29) Caitlyn tells her friend Dwight that she cannot wait to graduate and get a high-paying job. She says she wants to buy a big house with a pool and a sports car within the first year. That she says, will make her happy. Dwight asks Caitlyn if she’s read any research findings on happiness because it shows that

a) money is the root of all happiness.

b) material possessions actually do not make people happier.

c) material possessions help individuals to feel empowered and thus happier.

d) the key to happiness is found in not being caught for unethical acts.

Title: Chapter 3 Test Bank, Question 29

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 3.1 Define hedonia, eudemonia, and PERMA, and identify the types of happiness described in each concept.

Section Reference: Sec: 3.1 Hedonia, Eudemonia, Flourishing, and a PERMA Life

Solution: Research has shown that material possessions do not make people happier.

30) Which of the following most accurately describes the hedonic treadmill?

a) This term is used for attaining different levels of happiness on the hedonic scale.

b) This term is used to describe how hedonists attain happiness by constantly minimizing their need for material possessions.

c) This term refers to the ever-increasing amount of physical or psychic pleasure it takes to provide the same level of happiness.

d) This term is associated with eudemonia in the sense that both terms posit that happiness is only obtained through always acting ethically.

Title: Chapter 3 Test Bank, Question 30

Difficulty: Easy

Bloomcode: Knowledge

Min: 2

AACSB: Ethics

Learning Objective: LO 3.1 Define hedonia, eudemonia, and PERMA, and identify the types of happiness described in each concept.

Section Reference: Sec: 3.1 Hedonia, Eudemonia, Flourishing, and a PERMA Life

Solution: The term hedonic treadmill refers to the ever-increasing amount of physical or psychic pleasure it takes to provide the same level of happiness.

31) The results of research on hedonism have indicated which of the following?

a) The more material possessions people attain, the happier they are.

b) A focus on hedonia leads to long-term satisfaction.

c) The fewer material possessions people attain, the happier they are.

d) A focus on hedonia only leads to short-term satisfaction.

Title: Chapter 3 Test Bank, Question 31

Difficulty: Easy

Bloomcode: Knowledge

Min: 2

AACSB: Ethics

Learning Objective: LO 3.1 Define hedonia, eudemonia, and PERMA, and identify the types of happiness described in each concept.

Section Reference: Sec: 3.1 Hedonia, Eudemonia, Flourishing, and a PERMA Life

Solution: The results of research on hedonism have indicated that a focus on hedonia only leads to short-term satisfaction.

32) The notion of leading a life that people would find desirable is encapsulated in which of the following?

a) hedonism, which advocates for self-sacrifice and self-denial

b) eudaimonia, which speaks to having a good guardian spirit

c) hedonism, as advocated by Aristotle and other prominent thinkers

d) eudaimonia, which reflects how highly others think of us

Title: Chapter 3 Test Bank, Question 32

Difficulty: Easy

Bloomcode: Knowledge

Min: 2

AACSB: Ethics

Learning Objective: LO 3.1 Define hedonia, eudemonia, and PERMA, and identify the types of happiness described in each concept.

Section Reference: Sec: 3.1 Hedonia, Eudemonia, Flourishing, and a PERMA Life

Solution: The notion of leading a life that people would find desirable is encapsulated in eudaimonia, which speaks to having a good guardian spirit.

33) Which of the following represents a key difference between eudaimonia and emotional well-being?

a) Emotional well-being is only concerned with the individual, not with others.

b) Eudaimonia is focused more on the balance between personal and professional happiness.

c) Eudaimonia may include times of grief and sorrow.

d) There is no difference between eudaimonia and emotional well-being.

Title: Chapter 3 Test Bank, Question 33

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 3.1 Define hedonia, eudemonia, and PERMA, and identify the types of happiness described in each concept.

Section Reference: Sec: 3.1 Hedonia, Eudemonia, Flourishing, and a PERMA Life

Solution: A key difference between eudaimonia and emotional well-being is that eudaimonia may include times of grief and sorrow.

34) In the PERMA model, positive emotion

a) is limited to joy found in relationships outside the workplace, such as friends and family and perhaps close relatives

b) is limited to simple pleasurable emotions of temporary satisfaction

c) goes beyond simple pleasurable emotions and captures feelings of deep satisfaction

d) helps people become self-absorbed for long periods of time when they focus positively on themselves

Title: Chapter 3 Test Bank, Question 34

Difficulty: Medium

Bloomcode: Knowledge

Min: 2

AACSB: Ethics

Learning Objective: LO 3.1 Define hedonia, eudemonia, and PERMA, and identify the types of happiness described in each concept.

Section Reference: Sec: 3.1 Hedonia, Eudemonia, Flourishing, and a PERMA Life

Solution: In the PERMA model, positive emotion goes beyond simple pleasurable emotions and captures feelings of deep satisfaction.

35) In the context of the PERMA model, positive relationships do which of the following?

a) Positive relationships build on ethical virtues of respect for others and concern for their well-being.

b) Positive relationships focus on empowerment and attainment of the individual.

c) Positive relationships are concerned with living a transcendent life.

d) Positive relationships can be encapsulated in the need for the individual to not be alone.

Title: Chapter 3 Test Bank, Question 35

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 3.1 Define hedonia, eudemonia, and PERMA, and identify the types of happiness described in each concept.

Section Reference: Sec: 3.1 Hedonia, Eudemonia, Flourishing, and a PERMA Life

Solution: In the context of the PERMA model, positive relationships build on ethical virtues of respect for others and concern for their well-being.

36) Suppose a company claims to value diversity, but makes no effort to hire employees of different backgrounds. Which of the following best represents a potential problem for that company -?

a) They may experience lower employee turnover.

b) They may discredit themselves and be seen as hypocritical by employees, customers, or other stakeholders.

c) They may inadvertently increase their share price, resulting in increased value for all stakeholders.

d) They may not be able to take advantage of financial incentives such as tax credits.

Title: Chapter 3 Test Bank, Question 36

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 3.2 Describe the three categories of values leaders must consider when they “manage by values.”

Section Reference: Sec: 3.2 Leading by Values: A Tool for Organizational Leaders

Solution: When companies don’t practice the values they publicly espouse, they may discredit themselves and be seen as hypocritical by employees, customers, or other stakeholders.

37) Which of the following choices correctly represents a basic belief?

a) A manager thinks that his or her promotional prospects are tied to the firm’s profitability.

b) An executive thinks that outsourcing certain company functions overseas is worth the risk.

c) A firm is deciding whether to go public or stay private.

d) A firm that aspires to integrity attempts to cover up reports of it polluting a local stream as it is afraid of the negative publicity.

Title: Chapter 3 Test Bank, Question 37

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 3.2 Describe the three categories of values leaders must consider when they “manage by values.”

Section Reference: Sec: 3.2 Leading by Values: A Tool for Organizational Leaders

Solution: A manager believes that his or her promotional prospects are tied to the firm’s profitability.

38) Which of the following choices most accurately represents a business value?

a) the role of employees within the firm

b) the firm’s commitment to integrity and honesty

c) orientation toward risk

d) the promotion of diversity, equity, and inclusion

Title: Chapter 3 Test Bank, Question 38

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 3.2 Describe the three categories of values leaders must consider when they “manage by values.”

Section Reference: Sec: 3.2 Leading by Values: A Tool for Organizational Leaders

Solution: Orientation toward risk is a business value discussed in the chapter.

39) Which of the following most accurately represents an ethical value?

a) relationships among employees within the firm

b) a firm’s commitment to honesty and integrity

c) the relationship between products and profits

d) the orientation and structure of the firm

Title: Chapter 3 Test Bank, Question 39

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 3.2 Describe the three categories of values leaders must consider when they “manage by values.”

Section Reference: Sec: 3.2 Leading by Values: A Tool for Organizational Leaders

Solution: A firm’s commitment to honesty and integrity represents an ethical value.

40) A firm’s mission statement of providing the cheapest price with the best customer service would be an example of

a) a core value

b) an aspirational value

c) accidental values

d) permission-to-play values

Title: Chapter 3 Test Bank, Question 40

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 3.2 Describe the three categories of values leaders must consider when they “manage by values.”

Section Reference: Sec: 3.2 Leading by Values: A Tool for Organizational Leaders

Solution: A firm’s mission statement of providing the cheapest price with the best customer service would be an example of a core value.

41) A firm’s public commitment to diversity, equity, and inclusion would be an example of

a) a core value

b) an aspirational value

c) accidental values

d) permission-to-play values

Title: Chapter 3 Test Bank, Question 41

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 3.2 Describe the three categories of values leaders must consider when they “manage by values.”

Section Reference: Sec: 3.2 Leading by Values: A Tool for Organizational Leaders

Solution: A firm’s public commitment to diversity, equity, and inclusion would be an example of an aspirational value as this is something they wish to incorporate into the future.

42) Ethical values and expectations of a company would represent which of the following values?

a) core values

b) aspirational values

c) accidental values

d) permission-to-play values

Title: Chapter 3 Test Bank, Question 42

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 3.2 Describe the three categories of values leaders must consider when they “manage by values.”

Section Reference: Sec: 3.2 Leading by Values: A Tool for Organizational Leaders

Solution: Ethical values and expectations of a company would represent permission-to-play values as they are typically taken for granted.

43) A culture of dishonesty and fraud that has permeated from the executive suite at a firm could be an example of

a) a core value

b) an aspirational value

c) an accidental value

d) a permission-to-play value

Title: Chapter 3 Test Bank, Question 43

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 3.2 Describe the three categories of values leaders must consider when they “manage by values.”

Section Reference: Sec: 3.2 Leading by Values: A Tool for Organizational Leaders

Solution: A culture of dishonesty and fraud that has permeated from the executive suite at a firm could be an example of accidental values because it conflicts with aspirational core values such as inclusion, teamwork, and dedication to work tasks.

44) Which of the following most correctly describes the importance of a mission statement?

a) A mission statement speaks to a firm’s identity, purpose, and core values.

b) A mission statement is typically fluid and changes depending on the firm’s strategic direction.

c) A mission statement answers questions such as the following: How do we make the most money?

d) A mission statement is for internal purposes only and is not typically shared with external parties.

Title: Chapter 3 Test Bank, Question 44

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 3.3 Create your own personal mission statement and identify your key values.

Section Reference: Sec: 3.3 Mission Statements

Solution: A mission statement is important because it speaks to a firm’s identity, purpose, and core values.

45) Which of the following questions does a good mission statement not address?

a) What does the organization do?

b) What do the organization’s members want?

c) What principles and values guide decision making?

d) Who owns the organization?

Title: Chapter 3 Test Bank, Question 45

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 3.3 Create your own personal mission statement and identify your key values.

Section Reference: Sec: 3.3 Mission Statements

Solution: A good mission statement is unconcerned with organizational ownership.

46) A clear mission statement is important for a firm because

a) without it, the firm is likely to go bankrupt

b) a mission statement is typically required by regulatory agencies

c) the mission statement will help the firm focus on adding value

d) the mission statement can be used to confuse competitors with respect to strategic direction

Title: Chapter 3 Test Bank, Question 46

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 3.3 Create your own personal mission statement and identify your key values.

Section Reference: Sec: 3.3 Mission Statements

Solution: A clear mission statement is extremely important for a firm because the mission statement will help the firm focus on adding value.

47) In the context of a mission statement, defining a business is important because

a) the business needs to understand how quickly it can become profitable

b) the business needs to identify its key stakeholders

c) a firm is legally required to define its business and the industry in which it plans to operate

d) a well-written mission statement will ensure that all employees act ethically

Title: Chapter 3 Test Bank, Question 47

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 3.3 Create your own personal mission statement and identify your key values.

Section Reference: Sec: 3.3 Mission Statements

Solution: In the context of a mission statement, defining a business is important because the business needs to identify its key stakeholders.

48) Values are important when formulating a mission statement because

a) values will help the company determine its market position and profitability

b) values will assure the company meets the goals and needs of its shareholders

c) values will help inform choices among competing alternatives

d) values will help identify which laws the company should follow

Title: Chapter 3 Test Bank, Question 48

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 3.3 Create your own personal mission statement and identify your key values.

Section Reference: Sec: 3.3 Mission Statements

Solution: Values are important when formulating a mission statement because they will help inform choices among competing alternatives.

49) In the context of a mission statement, shared values are important because

a) if values are not shared, it will be hard for the firm to be profitable

b) they help determine and delineate what is important

c) without shared values, employees will choose to act unethically

d) a firm with shared values is more competitive than other firms in the industry

Title: Chapter 3 Test Bank, Question 49

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 3.3 Create your own personal mission statement and identify your key values.

Section Reference: Sec: 3.3 Mission Statements

Solution: In the context of a mission statement, shared values are important because they help determine and delineate what is important.

50) A well-developed mission statement is important because

a) without it, the organization will likely become insolvent and face bankruptcy

b) firms that have strong, robust mission statements are always more profitable and successful

c) it helps stakeholders understand what the firm does, and in what direction it is heading

d) firms are legally required to have a mission statement

Title: Chapter 3 Test Bank, Question 50

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 3.3 Create your own personal mission statement and identify your key values.

Section Reference: Sec: 3.3 Mission Statements

Solution: A well-developed mission statement is important because it helps stakeholders understand what the firm does and in what direction it is heading.

51) A firm may find it difficult to be recognized as leading by values because

a) investors and other stakeholders are often skeptical as to whether the firm is really “walking the walk”

b) regardless of what they do, investors and other stakeholders remain skeptical

c) if they attempt to lead by values, their competitors are likely to copy them

d) it is unlikely to be recognized as important by the firm’s executives and leaders

Title: Chapter 3 Test Bank, Question 51

Difficulty: Medium

Bloomcode: Knowledge

Min: 2

AACSB: Ethics

Learning Objective: LO 3.2 Describe the three categories of values leaders must consider when they “manage by values.”

Section Reference: Sec: 3.2 Leading by Values: A Tool for Organizational Leaders

Solution: A firm may find it difficult to be recognized as leading by values because investors and other stakeholders are often skeptical as to whether the firm is really “walking the walk.”

52) Greenwashing became problematic for some companies because

a) of the huge extra costs associated with this type of business practice

b) the employees were not onboard with the executives’ vision for the firm

c) firms often claimed to believe in a set of values that they never actually practiced

d) companies did not realize the extra profitability that was forecasted

Title: Chapter 3 Test Bank, Question 52

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 3.2 Describe the three categories of values leaders must consider when they “manage by values.”

Section Reference: Sec: 3.2 Leading by Values: A Tool for Organizational Leaders

Solution: Greenwashing became problematic for some companies because firms often claimed to believe in a set of values that they never practiced.

53) Which of the following provides the best example of a difference in business values?

a) two different competitors of the same size and hierarchy in the same industry

b) a small business where employees are more personable and friendly compared to a large corporation where the culture is more competitive and standoffish

c) two firms that have adopted the same approach to business risks

d) Firm A and Firm B have adopted different capital structures.

Title: Chapter 3 Test Bank, Question 53

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 3.2 Describe the three categories of values leaders must consider when they “manage by values.”

Section Reference: Sec: 3.2 Leading by Values: A Tool for Organizational Leaders

Solution: A small business where employees are more personable and friendly compared to a large corporation where the culture is more competitive and standoffish would represent the best example of a difference in business values.

54) Which of the following provides the best example of a difference in ethical values?

a) Firm A is committed to excellent customer service and “treating customers as if they were family,” and Firm B is focused solely on the “bottom line” and profitability.

b) Firms A and B both espouse values focused on sustainability but don’t practice them.

c) Firm A has recently made a commitment to decreased wait times and faster shipping for customers, and Firm B has recently volunteered to build a community park for community stakeholders.

d) Firm A and Firm B are both attempting to win an award for best employee care.

Title: Chapter 3 Test Bank, Question 54

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 3.2 Describe the three categories of values leaders must consider when they “manage by values.”

Section Reference: Sec: 3.2 Leading by Values: A Tool for Organizational Leaders

Solution: Firm A is committed to excellent customer service and “treating customers as if they were family,” and Firm B is focused solely on the “bottom line” and profitability would be the best example of a difference in ethical values.

55) Which of the following provides the best example of a firm’s core values?

a) A firm has recently committed to an initiative to clean up a local river that it has been polluting for decades.

b) A company has recently renewed its commitment to being a leader in green and sustainability initiatives.

c) A local company has recently hit the headlines due to a scandal involving some of the executives.

d) A large firm has a history of rewarding individual efforts whiling claiming to value teamwork.

Title: Chapter 3 Test Bank, Question 55

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 3.2 Describe the three categories of values leaders must consider when they “manage by values.”

Section Reference: Sec: 3.2 Leading by Values: A Tool for Organizational Leaders

Solution: A company has recently renewed its commitment to being a leader in green and sustainability initiatives would be the best example of a core value.

56) Which of the following correctly represents one of the fundamental values of the 8-Question Framework?

a) The framework helps ensure companies are profitable.

b) The framework is focused on the differences between ethics and illegality.

c) The framework determines the type of employees the firm should let go.

d) The framework incorporates ethics into business and personal decisions.

Title: Chapter 3 Test Bank, Question 56

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 3.4 Evaluate the ethical component of business decisions using the 8-Question Framework.

Section Reference: Sec: 3.4 Decision-Making and Ethics: Eight Questions That Combine Business and Ethics

Solution: The Framework incorporates ethics into business and personal decisions.

57) Which of the following best describes the utility and value underpinning the 8-Question Framework?

a) The framework provides a method to remove the conflict between what is profitable and ethical when making decisions.

b) The framework focuses on making decisions that may be borderline unethical but are not illegal.

c) The framework, if adhered to correctly, can help firms maximize profitability and market position.

d) The framework is focused on ensuring employees are correctly equipped to handle all ethical situations that arise.

Title: Chapter 3 Test Bank, Question 57

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 3.4 Evaluate the ethical component of business decisions using the 8-Question Framework.

Section Reference: Sec: 3.4 Decision-Making and Ethics: Eight Questions That Combine Business and Ethics

Solution: The framework provides a method to remove the conflict between what is profitable and ethical when making decisions.

58) In the context of the 8-Question Framework, which of the following is an example of a question that may arise concerning cost?

a) Are there other costs, such as costs to stakeholders and the community, we are not factoring in?

b) What ways can we cut costs within the boundaries of the law to increase profitability?

c) Are we ensuring that we are always accepting the lowest bid for costs?

d) How does the firm change a negative NPV to a positive NPV?

Title: Chapter 3 Test Bank, Question 58

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 3.4 Evaluate the ethical component of business decisions using the 8-Question Framework.

Section Reference: Sec: 3.4 Decision-Making and Ethics: Eight Questions That Combine Business and Ethics

Solution: An example of a question that would arise when using the 8-Question Framework with respect to cost could be the following: Are there other costs, such as costs to stakeholders and the community, we are not factoring in?

59) Within the context of the 8-Question Framework, assessing risks and options is important because

a) those in favor of a certain decision may be overly optimistic about the impact of a decision, ignoring or minimizing the risks associated with the decision

b) it has been shown to be an effective method to increase the NPV of the project

c) the company may be sued for negligence if all risks and downsides are not considered

d) there may be downsides to a project or decision that the firm does not want to publicize

Title: Chapter 3 Test Bank, Question 59

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 3.4 Evaluate the ethical component of business decisions using the 8-Question Framework.

Section Reference: Sec: 3.4 Decision-Making and Ethics: Eight Questions That Combine Business and Ethics

Solution: Within the context of the 8-Question Framework, assessing risks and options is important because those in favor of a certain decision may be overly optimistic about the impact of a decision, ignoring or minimizing the risks associated with the decision.

60) Which of the following questions most accurately represents how the 8-Question Framework could be best used to evaluate the strategic perspective?

a) How does the firm ensure that all stakeholders are treated with value in and of themselves?

b) What assumptions would the firm need to meet for this decision to prove profitable?

c) Does this decision represent and reflect who we are as a company?

d) What other courses of action are open that we might want to consider?

Title: Chapter 3 Test Bank, Question 60

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 3.4 Evaluate the ethical component of business decisions using the 8-Question Framework.

Section Reference: Sec: 3.4 Decision-Making and Ethics: Eight Questions That Combine Business and Ethics

Solution: An example of a question that may be asked when considering the strategic perspective is the following: Does this decision represent and reflect who we are as a company?

61) Which of the following choices most accurately represents an example of a question that may be asked when considering the market perspective?

a) How does the firm ensure that all stakeholders are treated with value in and of themselves?

b) What assumptions would the firm need to meet for this decision to prove profitable?

c) Does this decision represent and reflect who we are as a company?

d) What other courses of action are open that we might want to consider?

Title: Chapter 3 Test Bank, Question 61

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 3.4 Evaluate the ethical component of business decisions using the 8-Question Framework.

Section Reference: Sec: 3.4 Decision-Making and Ethics: Eight Questions That Combine Business and Ethics

Solution: An example of a question that may be asked when considering the market perspective would be the following: How does the firm ensure that all stakeholders are treated with value in and of themselves?

62) Which of the following choices most accurately represents an example of a question that may be asked when considering the financial perspective?

a) How does the firm ensure that all stakeholders are treated with value in and of themselves?

b) What assumptions would the firm need to meet for this decision to prove profitable?

c) Does this decision represent and reflect who we are as a company?

d) What other courses of action are open that we might want to consider?

Title: Chapter 3 Test Bank, Question 62

Difficulty: Medium

Bloomcode: Knowledge

Min: 2

AACSB: Ethics

Learning Objective: LO 3.4 Evaluate the ethical component of business decisions using the 8-Question Framework.

Section Reference: Sec: 3.4 Decision-Making and Ethics: Eight Questions That Combine Business and Ethics

Solution: An example of a question that may be asked when considering the market perspective would be the following: What assumptions would the firm need to meet in order for this decision to prove profitable?

63) Which of the following choices most accurately represents an example of a question that may be asked when considering the risk perspective?

a) How does the firm ensure that all stakeholders are treated with value in and of themselves?

b) What assumptions would the firm need to meet for this decision to prove profitable?

c) Does this decision represent and reflect who we are as a company?

d) What other courses of action are open that we might want to consider?

Title: Chapter 3 Test Bank, Question 63

Difficulty: Medium

Bloomcode: Knowledge

Min: 2

AACSB: Ethics

Learning Objective: LO 3.4 Evaluate the ethical component of business decisions using the 8-Question Framework.

Section Reference: Sec: 3.4 Decision-Making and Ethics: Eight Questions That Combine Business and Ethics

Solution: An example of a question that may be asked when considering the risk perspective would be the following: What other courses of action are open that we might want to consider?

64) Which of the following choices represent benefits of the 8-Question Framework?

a) The framework can help an individual assert moral courage.

b) The framework can systematically help an individual move decisions into the appropriate quadrant.

c) The framework can help facilitate the use of moral imagination.

d) All of the choices are correct.

Title: Chapter 3 Test Bank, Question 64

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 3.4 Evaluate the ethical component of business decisions using the 8-Question Framework.

Section Reference: Sec: 3.4 Decision-Making and Ethics: Eight Questions That Combine Business and Ethics

Solution: All of these answer choices represent benefits of the 8-Question Framework.

65) A key benefit of the matrix associated with the 8-Question Framework is

a) the ability to avoid all unethical situations and actions in the future

b) it helps managers focus on ethical correctness and business success

c) it ensures that the firm employing the matrix and framework cannot be sued for unethical actions

d) it helps to ensure all unethical employees will be weeded out of an organization

Title: Chapter 3 Test Bank, Question 65

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 3.4 Evaluate the ethical component of business decisions using the 8-Question Framework.

Section Reference: Sec: 3.4 Decision-Making and Ethics: Eight Questions That Combine Business and Ethics

Solution: A key benefit of the matrix associated with the 8-Question Framework is it helps managers to focus on ethical correctness and business success.

66) If an individual chooses to live his or her life in pursuit of happiness and pleasure at every opportunity, this would be an example of which of the following?

a) eudemonia, because this approach is centered around the maximum pursuit of pleasure

b) hedonia, because this approach focuses on the pursuit of pleasurable emotions

c) the PERMA model, because the individual is focusing on positive and negative emotions

d) the PERMA model, because the individual is not focused on relationships

Title: Chapter 3 Test Bank, Question 66

Difficulty: Medium

Bloomcode: Knowledge

Min: 2

AACSB: Ethics

Learning Objective: LO 3.5 Apply the tools and concepts you’ve learned in this chapter to real-life business situations.

Section Reference: Sec: 3.5 Mini-Cases and Discussions

Solution: If an individual chooses to live his or her life in pursuit of happiness and pleasure at every opportunity, this would be an example of hedonia.

67) Many firms would like to become more ethical and ethically transparent. Which of the following correctly describes the biggest challenge these firms face?

a) Becoming a firm that chooses to always act ethically and follow its values is typically harder work than it sounds.

b) The costs associated with this type of transparent approach are always prohibitive.

c) It is challenging to find employees who are willing to sign up for any such ethical approach.

d) The firm’s shareholders are singularly focused on their return on investment and would not support such an initiative.

Title: Chapter 3 Test Bank, Question 67

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 3.5 Apply the tools and concepts you’ve learned in this chapter to real-life business situations.

Section Reference: Sec: 3.5 Mini-Cases and Discussions

Solution: Becoming a firm that chooses to always act ethically and follow its values is typically harder work than it sounds.

68) Which of the following choices best represents how an individual might apply the PERMA model described in the chapter to their own life?

a) The PERMA model can help them become successful and materially wealthy.

b) The PERMA model can be used to avoid some of the more common risks and pitfalls of life.

c) The PERMA model can be used to help individuals reach their full potential as humans.

d) The PERMA model can be used to carefully select friends and acquaintances who will enrich our lives.

Title: Chapter 3 Test Bank, Question 68

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 3.5 Apply the tools and concepts you’ve learned in this chapter to real-life business situations.

Section Reference: Sec: 3.5 Mini-Cases and Discussions

Solution: The PERMA model can be used to help individuals reach their full potential as humans.

69) Which of the following choices best encapsulates how a strong and focused mission statement can help a firm?

a) A strong and focused mission statement can ensure the firm is profitable and beats its competitors.

b) A strong and focused mission statement can ensure that the firm is unified and realizes its full potential with respect to its obligation to its stakeholders.

c) A strong and focused mission statement is important because firms without mission statements may be disorganized and unprofitable.

d) A strong and focused mission statement will help keep the firm out of legal troubles such as getting sued.

Title: Chapter 3 Test Bank, Question 69

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 3.5 Apply the tools and concepts you’ve learned in this chapter to real-life business situations.

Section Reference: Sec: 3.5 Mini-Cases and Discussions

Solution: A strong and focused mission statement can ensure that the firm is unified and realizes its full potential with respect to its obligation to its stakeholders.

70) Using research findings, which of the following statements most accurately describes happiness as it pertains to the typical employee’s career?

a) Happiness is most easily and likely obtained by being promoted and receiving higher paychecks.

b) Happiness is almost impossible to attain in the workplace because of the competition and rivalry that naturally exist among people.

c) Happiness is more likely to be achieved by focusing on a career that one finds rewarding, more so than being singularly focused on money.

d) Happiness is generally thought of as an index in the workplace, with higher positions on the index being associated with higher positions within a firm.

Title: Chapter 3 Test Bank, Question 70

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 3.5 Apply the tools and concepts you’ve learned in this chapter to real-life business situations.

Section Reference: Sec: 3.5 Mini-Cases and Discussions

Solution: Happiness is more likely to be achieved by focusing on a career that one finds rewarding, more so than being singularly focused on money.

71) In discussing business segments and divisional performance at General Electric, which one of the following statements best matches the management style of former CEO Jack Welch?

a) If divisions are performing, they should be left alone so as not to affect their profitability.

b) It may be necessary to remove managers who are performing if they don’t align with the culture of the overall firm.

c) Managers who refuse to align with the corporate culture should be demoted to less important positions within the organization.

d) When managers were asked to leave, General Electric would claim they left for “personal reasons” to help these employees’ future careers.

Title: Chapter 3 Test Bank, Question 71

Difficulty: Medium

Bloomcode: Application

Min: 2

AACSB: Ethics

Learning Objective: LO 3.5 Apply the tools and concepts you’ve learned in this chapter to real-life business situations.

Section Reference: Sec: 3.5 Mini-Cases and Discussions

Solution: In discussing business segments and divisional performance at GE (General Electric), former CEO Jack Welch notes it may be necessary to remove managers who are performing well if they don’t align with the culture of the overall firm.

Question type: Short answer

72) Define and discuss the key difference between hedonia and eudemonia and how these approaches could be used in the business world.

Title: Chapter 3 Test Bank, Question 72

Difficulty: Hard

Bloomcode: Analysis

Min: 10

AACSB: Ethics

Learning Objective: LO 3.1 Define hedonia, eudemonia, and PERMA, and identify the types of happiness described in each concept.

Section Reference: Sec: 3.1 Hedonia, Eudemonia, Flourishing, and a PERMA Life

Solution: Eudemonia, as set forth by Aristotle, captures the essence of living a happy and fulfilling life. Hedonia (or hedonism), on the other hand, sets forth the viewpoint that happiness is positive affect, feeling good, or pleasure. These two approaches would represent different approaches in business and the workplace. For example, hedonia would be more likely to advance the view that if it brings one pleasure in the workplace, then it is acceptable. On the other hand, eudemonia would be more likely to focus on fulfillment through both oneself and others around the individual, such as colleagues.

73) Pick a company of your choice and locate their mission statement. What is your impression of the mission statement? Is it vague or concise? What examples of ethical focus can you identify in the mission statement?

Title: Chapter 3 Test Bank, Question 73

Difficulty: Hard

Bloomcode: Evaluation

Min: 10

AACSB: Ethics

Learning Objective: LO 3.3 Create your own personal mission statement and identify your key values.

Section Reference: Sec: 3.3 Mission Statements

Solution: Here, we take, for example, the mission statement of Coca-Cola, which is to refresh the world in mind, body, and spirit. To inspire moments of optimism and happiness through our brands and actions. To create value for making a difference. This mission statement at least somewhat implies that Coca-Cola seeks to bring happiness to individuals through its brands and product offerings. The mission statement is reasonably concise and sounds actionable. The mission statement makes it sound like Coca-Cola wishes to use its power and position to make a difference.

74) Provide an example and discuss a scenario where two firms differ on their basic belief systems. The firms may be competitors, parts of a shared supply chain, or in completely different industries, geographies, or markets.

Title: Chapter 3 Test Bank, Question 74

Difficulty: Hard

Bloomcode: Synthesis

Min: 10

AACSB: Ethics

Learning Objective: LO 3.2 Describe the three categories of values leaders must consider when they “manage by values.”

Section Reference: Sec: 3.2 Leading by Values: A Tool for Organizational Leaders

Solution: If Firm A believed in an aggressive expansionary market policy that would come with associated extra costs, and Firm B believed in attempting to simply maintain its market share, viewing such extra expenditures as a waste of resources, this would be an example of differences in basic beliefs.

75) Discuss why a firm should consider terminating managers who are performing well and “meeting his or her numbers” if he or she doesn’t align with and subscribe to the firm’s ethical framework.

Title: Chapter 3 Test Bank, Question 75

Difficulty: Hard

Bloomcode: Evaluation

Min: 10

AACSB: Ethics

Learning Objective: LO 3.4 Evaluate the ethical component of business decisions using the 8-Question Framework.

Section Reference: Sec: 3.4 Decision-Making and Ethics: Eight Questions That Combine Business and Ethics

Solution: Although a manager may be “meeting his or her numbers” or perhaps surpassing his or her numbers, if the individual in question is not onboard with the company’s ethical framework and refuses to subscribe to this ethical framework, it is best to let the employee go. While this may sound strange and perhaps even counterintuitive if the manager is causing the firm to be profitable, such employees have the ability to destroy the culture the firm is attempting to build or has already built, which may have disastrous results in the future.

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