1. Which of the following is true regarding the ethical issues that

businesses commonly encounter?

a) They are only relevant in large corporations

b) They have no impact on a company's bottom line

c) They involve decision-making processes that may not have a clear right

or wrong answer

d) They are primarily related to employee satisfaction

Answer: c) They involve decision-making processes that may not have a

clear right or wrong answer

Rationale: Ethical issues in business often involve complex decisionmaking processes where different stakeholders may have conflicting

interests, making it difficult to determine the "right" course of action.

2. Which of the following is the foundation of the American legal system?

a) The Constitution

b) Common law

c) Statutory law

d) Executive orders

Answer: a) The Constitution

Rationale: The Constitution serves as the foundation of the American legal

system, outlining the structure of government and the rights of

individuals.

3. Business ethics are concerned with:

a) Maximizing profits at all costs

b) Following the law, but not necessarily acting morally

c) Doing what is right, even when it is not required by law

d) Utilizing unethical practices to gain a competitive advantage

Answer: c) Doing what is right, even when it is not required by law

Rationale: Business ethics involve making decisions based on moral

principles and values, even when those decisions may not be legally

required.

4. In the context of torts, which of the following is true?