Question

1. _____ describes what rule or principle focuses on the act itself, not necessarily its consequences.

a) Rule maximization

b) Social justice

c) Deontology

d) Social contract theory

2. Which of the following uses the utilitarian test of the greatest good overall?

a) Project A provides a benefit of $1 million to a company at an investment of $10,000. Over a period of 10 years, the company has to reduce its workforce by 50 percent.

b) Project B provides a benefit of $1 million to a company at an investment of $10,000. Over a period of 10 years, the company has to come up with a new technology that will lead to an increase in the cost of living for all the people in the vicinity.

c) Project C provides a benefit of $1 million to a company at an investment of $10,000. Over a period of 10 years, the company has to employ 10,000 more people and cut down on 100 acres of forest area to expand the facility.

d) Project D provides a benefit of $100,000 to a company at a cost of $50,000. Over a period of 10 years, the company has to employ 100 more people.

e) Project E provides a benefit of $1 million to a company at an investment of $10,000. Over a period of 10 years, the company has to acquire two of its competitors, leading to total reduction of its workforce by 30 percent.

3. The manager's fiduciary duty refers to _____.

a)  the duty of managers to maximize returns to employees

b) the legally prescribed duties which make their employment possible

c) the moral duty managers have to act as responsible agents to the owners

d) managers resisting hostile takeover bids

e) managers managing by number

4. According to limited liability, _____.

a) smaller pools of capital could be aggregated for larger enterprises

b) if the venture fails, shareholders would not lose their investments

c) there would be personal liability only

d) there would only be a loss in the value of the corporate stock

e)

Answer 1

Answer 1:

Option C. Deontology is the principle that focuses on the act itself and not necessarily its consequences.

Answer 2;

Option D. Utilitarian approach is focused on maximizing the welfare of all people in the society. Project D provides a benefit of $100,000 to a company at a cost of $50,000. Over a period of 10 years, the company has to employ 100 more people.It is beneficial for society as it will generate employment. All the other projects are either leading to fall in workforce requirement or reducing forest land which is not beneficial for the welfare of the society as a whole.

Answer 3;

Option C. The manager's fiduciary duty refers to  the moral duty managers have to act as responsible agents to the owners.

Answer 4:

Option C. Limited liability is also called as personal liability where owners are not personally liable for the debts and liabilities of company.