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Business Ethics Student
Business Ethics: Chapter 7 Case Study Questions
1
Insider trading is the use of internal, non-public information about a company by employees and others to trade the company's stock for private gain. Which of the following considerations is the LEAST relevant to the issue of whether insider trading is immoral?
Insider traders steal private information from their employers.
Employees need to have access to important confidential information about their company's business.
The practice of insider trading will destroy confidence in the stock market and undermine the efficiency of the capitalist system.
Employees have a fiduciary obligation to their employers not to use internal company information for their own private gain.
Traders with inside information enjoy an unfair competitive advantage over traders without it.
2
Which ethical theory applies best to the consideration that insider traders steal from their employers?
- select -
a) Indirect utilitarianism
b) Direct utilitarianism
c) Virtue ethics
d) General rights
e) Compensatory justice
3
Insider traders are being disloyal to their employers and fellow employees. What is the best classification of this trait?
- select -
a) Derivative virtue
b) Derivative vice
c) Non-derivative virtue
d) Non-derivative vice
e) Basic virtue
4
Which ethical theory best applies to the consideration that the practice of insider trading will destroy confidence in the stock market and undermine the efficiency of the capitalist system?
- select -
a) Indirect economic utilitarianism
b) Direct economic utilitarianism
c) Virtue ethics
d) No ethical theory
e) Rights
5
Which ethical theory best applies to the consideration that employees have a contractual obligation to their employers not to use internal company information for their own private gain?
- select -
a) Indirect economic utilitarianism
b) Direct economic utilitarianism
c) Virtue ethics
d) General rights
e) Specific rights
6
Which ethical theory applies best to the consideration that traders with inside information enjoy an unfair competitive advantage over traders without it?
- select -
a) Virtue ethics
b) Utilitarianism
c) Compensatory justice
d) Distributive justice
e) Retributive justice
7
Which group of stakeholders gets the most ethical consideration in moral issues regarding insider trading?
- select -
a) Stockholders
b) Employees
c) Suppliers
d) Customers
e) Civil society
8
Which ethical theory best applies to the consideration that employees need to have access to important confidential information about their company's business?
- select -
a) Rights
b) Utilitarianism
c) No ethical theory
d) Virtue ethics
e) Distributive justice
9
Inside traders act disloyally to the other members of the firm of which they are part. What is the best classification of this ethical consideration?
- select -
a) Economic utilitarianism
b) Self-interest
c) Equal consideration of interests
d) Virtue ethics
e) Indirect utilitarian rights
10
Inside traders stand a very good chance of being caught and punished by securities regulators. What is the best classification of this ethical consideration?
- select -
a) Economic utilitarianism
b) Self-interest
c) Equal consideration of interests
d) Virtue ethics
e) Indirect utilitarian rights
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