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Employment at Will, CEOs, and Normative Ethics

1. The legal and ethical limits on the doctrine of "employment at will" include:
a. Concern about the families of the workers
b. Important public policy considerations
c. Fear of loss of attractiveness as an employer to
potential future employees
d. None of the above

2. Circle the best answer or answers: What are some problems with the justification of high executive compensation, specifically compensation of CEOs?
a. Contrary to claims made, CEO pay is not merely the subject of arm's length negotiations
b. It is not clear that there is a tenable link between CEO pay and the performance of the corporations they serve
c. The notion that CEOs must be motivated by extremely high compensation is flawed, since people, including executives, are motivated by other things as well
d. CEOs are not the only ones responsible for the successes of the corporations that they serve, but
rely in part on good performance by subordinates who also bring good ideas to the table.
e. a through c
f. c & d
g. a through d

3. "Normative Ethics" is concerned with:
a. The existing social norms
b. Normal ways of deciding hard cases
c. Duty based approaches to ethics
d. What we really ought to do as determined by reasoning or moral argument

Solution Preview

1. The legal and ethical limits on the doctrine of "employment at will" include:
a. Concern about the families of the workers
b. Important public policy considerations <-- This is true. Employment at will means that the employee or employer can terminate the employment for any reason, at any time, as long as those reasons are not illegal or against public policy.
c. Fear of loss of attractiveness as an employer to
potential future employees
d. None of the above

2. Circle the best answer or ...

Solution Summary

This solution provides the correct answers with explanations to the business multiple choice questions presented.

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