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Business Ethics MCQs | Business Ethics Multiple Choice Questions and Answers

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Questions

1 What is meant by the phrase CSR?

A Corporate Social Responsibility

B Company Social Responsibility

C Corporate Society Responsibility

D Company Society Responsibility

Answer: Corporate Social Responsibility

2 What does Milton Friedman believe to be the sole responsibility of business?

A The only social responsibility of business is to its shareholders

B Managers should act in ways that balance the interest of society and shareholders

C The primary responsibility organizations have is to its employees

D The primary responsibility organizations have is to its stakeholders

Answer: The only social responsibility of business is to its shareholders

3 What is the enlightened self-interest model of CSR?

A That it is in an organization's own best interest to put itself first rather than its ethics

B That it is in an organization's best interest to consider what a shareholder would want

C That it is in an organization's own best interest to act in an ethical way

D That it is in an organization's own best interest to follow the legislation and abide by the law

Answer: That it is in an organization's own best interest to act in an ethical way

4 What does the importance of ethical behaviour, integrity and trust call into question?

A The extent to which managers should attempt to change the underlying beliefs and values of
individual followers

B Who does what

C What we do next

D None of these

Answer: The extent to which managers should attempt to change the underlying beliefs and values of
individual followers

5 Which of the following would most effectively act as the primary objective of a business organisation?

A To make a profit

B To procure resources

C To communicate with shareholders

D To mediate between the organisation and the environment

Answer: To make a profit

6 Which of the following does the term Corporate Social Responsibility relate to?

A Ethical conduct

B Environmental practice

C Community investment

D All of the above

Answer: All of the above

7 What is Ethics to do with?

A The wider community

B Business

C Right and wrong

D Nothing

Answer: Right and wrong

8 Which legislation relates to the concept of business ethics?

A Freedom of Information Act

B Food Act

C Building regulations

D All of these

Answer: Freedom of Information Act

9 A stakeholder orientation includes all of the following activities except:

A Generating Data About Stakeholder Groups

B Assessing The Firm's Effects On Stakeholder Groups

C Distributing Stakeholder Information Throughout The Firm

D Minimizing The Influence Of Stakeholder Information On The Firm

Answer: Minimizing The Influence Of Stakeholder Information On The Firm

10 A (n) ________ is a problem, situation, or opportunity requiring an individual, group, or organization

to choose among several actions that must be evaluated as right or wrong.

A Crisis

B Ethical Issue

C Indictment

D Fraud

Answer: Ethical Issue

11 What type of justice exists if employees are being open, honest, and truthful in their communications
at work?

A Procedural

B Distributive

C Ethical

D Interactional

Answer: Interactional

12 Better access to certain markets, differentiation of products, and the sale of pollution-control
technology are ways in which better environmental performance can:

A Increase Revenue

B Increase Costs

C Decrease Revenue

D Decrease Costs

Answer: Increase Revenue

13 Atmospheric issues include all of the following except:

A Acid Rain

B Global Warming

C Air Pollution

D Water Quantity

Answer: Water Quantity

14 Most companies begin the process of establishing organizational ethics programs by developing:

A Ethics Training Programs

B Codes Of Conduct

C Ethics Enforcement Mechanisms

D Hidden Agendas

Answer: Codes Of Conduct

15 When a firm charges different prices to different groups of customers, it may be accused of:

A Cultural Relativism

B Money Laundering

C Facilitating Payments

D Price Discrimination

Answer: Cultural Relativism

16 Successful global initiatives addressing standards for business must begin and end with:

A the role of corporate governance and shareholder power in corporate decision making

B social activism

C the implementation of standardized ethics programs

D the consolidation of economic and environmental efforts

Answer: the role of corporate governance and shareholder power in corporate decision making

17 The social economy partnership philosophy emphasizes:

A Cooperation And Assistance

B Profit Maximization

C Competition

D Restricting Resources And Support

Answer: Cooperation And Assistance

18 Which of the following is a problem presented by ethics audits?

A They may be used to reallocate resources

B They identify practices that need improvement

C Selecting auditors may be difficult

D They may pinpoint problems with stakeholder relationships

Answer: Selecting auditors may be difficult

19 The first step in the auditing process should be to secure the commitment of:

A Employees

B Top Executives And Directors

C Stockholders

D Customers

Answer: Top Executives And Directors

20 ____________ refers to a strategic process involving stakeholder assessment to create long-term

relationships with customers, while maintaining, supporting, and enhancing the natural environment.
A Eco-strategy

B Green marketing

C Superfund reauthorization

D Recycle and reprocess management

Answer: Green marketing

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Business Ethics Quiz | Business Ethics Objective Type Questions and Answers

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Questions

21 The hand-of-government refers to the

A Ability Of The Government To Interfere In Business Negotiations

B Role Of Corporations To Be Profitable Within The Law

C Effect Of National Politics On Business Decisions

D Impact Of Changing Government Regulations

Answer: Role Of Corporations To Be Profitable Within The Law

22 An organisation's obligation to act to protect and improve society's welfare as well as its own
interests is referred to as

A Organisational Social Responsibility

B Organisational Social Responsiveness

C Corporate Obligation

D Business Ethics

Answer: Organisational Social Responsibility

23 Managerial ethics can be characterised by all of the following levels except

A Immoral Management

B Amoral Management

C Demoral Management

D Moral Management

Answer: Demoral Management

24 Which of the following is not one the underlying principles of the corporate governance Combined
Code of Practice?

A Openness

B Integrity

C Accountability

D acceptability

Answer: acceptability
25 A company may become insolvent if it

A has negative working capital

B cannot meet its budgeted level of profit

C makes a loss

D cannot pay creditors in full after realisation of its assets

Answer: cannot pay creditors in full after realisation of its assets

26 Fraudulent trading may be

A a civil offence committed by any employee

B a criminal offence committed only by directors of a limited company

C a civil and a criminal offence committed only by directors of a limited company

D a civil and a criminal offence committed by any employee

Answer: a civil and a criminal offence committed by any employee

27 Disqualification of directors may result from breaches under the

A Sale of Goods Act 1979

B Financial Services Act 1986

C Companies Act 2006 and Insolvency Act 1986

D Health and Safety at Work Act 1974

Answer: Companies Act 2006 and Insolvency Act 1986

28 Directors may not be disqualified for

A continuing to trade when the company is insolvent

B persistent breaches of company legislation

C paying inadequate attention to the company finances

D being convicted of drunken driving

Answer: being convicted of drunken driving

29 Which of the following actions will not help directors to protect themselves from non-compliance
with their obligations and responsibilities?

A keeping themselves fully informed about company affairs

B ensuring that regular management accounts are prepared by the company

C seeking professional help

D including a disclaimer clause in their service contracts

Answer: including a disclaimer clause in their service contracts

30 The OECD argues that corporate governance problems arise because:

A Ownership and control is separated

B Managers always act in their own self interest

C Profit maximization is the main objective of organizations

D Stakeholders have differing levels of power

Answer: Ownership and control is separated

31 Co-ording to Cadbury (2002), corporate governance is an issue of power and:

A Rights

B Accountability

C Profit

D Appropriability

Answer: Accountability

32 A director of a limited company may not be liable for wrongful trading if he or she
A took every step to minimise the potential loss to creditors

B increased the valuation of its inventories to cover any potential shortfall

C introduced into the balance sheet an asset based on a valuation of its brands sufficient to meet any
shortfall

D brought in some expected sales from next year into the current year

Answer: took every step to minimise the potential loss to creditors

33 Directors’ responsibilities are unlikely to include.

A a fiduciary duty

B a duty to keep proper accounting records

C a duty to propose high dividends for shareholders

D a duty of care

Answer: a duty to propose high dividends for shareholders

34 External audit of the accounts of a limited company is required

A Because It Is Demanded By The Company’s Bankers

B By The Companies Act 2006

C At The Discretion Of The Shareholders

D To Detect Fraud

Answer: By The Companies Act 2006

35 The view that business exists at society's pleasure and businesses should meet public expectations of
social responsibility is the

A iron law of responsibility argument

B enlightened self-interest argument

C capacity argument
D anti-freeloader argument

Answer: enlightened self-interest argument

36 In a ______________ organization, decision making is delegated as far down the chain of command
as possible.

A Decentralized

B Creative

C Flexible

D the consolidation of economic and environmental efforts

Answer: Centralized

37 Which of the following is NOT one of the primary elements of a strong organizational compliance
program?

A A written code of conduct

B An ethics officer

C Significant financial expenditures

D A formal ethics training program

Answer: Significant financial expenditures

38 Codes of conduct and codes of ethics

A Are Formal Statements That Describe What An Organization Expects Of Its Employees

B Become Necessary Only After A Company Has Been In Legal Trouble

C Are Designed For Top Executives And Managers, Not Regular Employees

D Rarely Become An Effective Component Of The Ethics And Compliance Program

Answer: Are Formal Statements That Describe What An Organization Expects Of Its Employees
39 Which of the following is not a driver of responsible competitiveness?

A Policy drivers

B Development drivers

C Business action

D Social enablers

Answer: Development drivers

40 The ability to interpret and adapt successfully to different national, organizational, and professional
cultures is called:

A National Competitiveness

B Global Development

C Cultural Intelligence

D Stakeholder Sensitivity

Answer: Cultural Intelligence

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Business Ethics MCQs | Business Ethics Short Questions and Answers

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Questions

41 For referent power to be effective, what must exist between individuals in the relationship?

A Antipathy

B Rivalry

C History

D Empathy

Answer: Empathy

42 To be successful, business ethics training programs need to:

A focus on personal opinions of employees

B be limited to upper executives

C educate employees on formal ethical frameworks and models of ethical decision making

D promote the use of emotions in making tough ethical decisions

Answer: educate employees on formal ethical frameworks and models of ethical decision making

43 A high-commitment approach to environmental issues may include all of the following except:

A Risk Analysis

B Stakeholder Analysis

C Green-Washing

D Strategic Sustainability Auditing

Answer: Green-Washing

44 Stakeholders are considered more important to an organization when:

A they can make use of their power on the organization

B they do not emphasize the urgency of their issues

C their issues are not legitimate

D they can express themselves articulately

Answer: they can make use of their power on the organization

45 The ________ dimension of social responsibility refers to a business's societal contribution of time,
money, and other resources.

A Ethical

B Philanthropic

C Volunteerism

D Strategic

Answer: Philanthropic

46 The four types of social responsibility include:

A Legal, Philanthropic, Economic, And Ethical

B Ethical, Moral, Social, And Economic

C Philanthropic, Justice, Economic, And Ethical

D Legal, Moral, Ethical, And Economic

Answer: Legal, Philanthropic, Economic, And Ethical

47 Which of the following is an example of an area where business ethics apply?

A Conduct of international operations

B Nowhere

C In the personal life of staff

D None of the above

Answer: Conduct of international operations

48 Who are organisational stakeholders?

A Government

B Employees

C Customers

D All of the above

Answer: All of the above

49 What is green washing?

A Transforming products to be more ethical

B Making a product appear more ethical that it really is

C Converting the company to green production methods

D Convincing customers to buy ethically

Answer: Making a product appear more ethical that it really is

50 What is triple bottom line?

A An accounting tool that looks at the impact on people, planet and profits

B A management strategy which states all the attention should be on profits

C An accounting tool that looks at cost, profit and loss

D A management strategy which focuses on corporate social responsibility

Answer: An accounting tool that looks at the impact on people, planet and profits

51 Why do alternative organizations run differently from conventional shareholder led approach?

A They do not have shareholders

B They are run in non-hierarchical ways which aim to provide a positive impact on society rather than to
make profit

C They priorities corporate social responsibility

D They aim to give money to charities and good causes

Answer: They are run in non-hierarchical ways which aim to provide a positive impact on society rather
than to make profit

52 What does and Ethical Foundation for an organisation embody?

A The structure, operational and conduct of the activities of the organization

B The basic principles which govern the external and internal relations of the organization

C Neither of the above

D All of these

Answer: The basic principles which govern the external and internal relations of the organization

53 A ________ _________ sets out the purpose and general direction for the organisation?

A Mission statement

B Purpose statement

C Vision

D Profit statement

Answer: Mission statement

54 What is the purpose of a balanced scorecard?

A To measure contribution of people to business growth

B To combine a range of qualitative and quantitative indicators of performance

C To relate business performance to customer satisfaction

D All of the above

Answer: To combine a range of qualitative and quantitative indicators of performance

55 What, according to Adam Smith, is the best way to promote collective interest?

A Through government making decisions about what is in the public interest

B Through everyone working together to support each other

C Through everyone working on their own self-interest

D Through individuals forgoing their personal interest for the good of the collective

Answer: Through everyone working on their own self-interest

Business Ethics

1. A stakeholder orientation includes all of the following activities except:

a) generating data about stakeholder groups

b) assessing the firm's effects on stakeholder groups

c) distributing stakeholder information throughout the firm

d) minimizing the influence of stakeholder information on the firm

2. Stakeholders are considered more important to an organization when:

a) they can make use of their power on the organization

b) they do not emphasize the urgency of their issues

c) their issues are not legitimate

d) they can express themselves articulately

3. A (n) ________ is a problem, situation, or opportunity requiring an individual, group, or organization

to choose among several actions that must be evaluated as right or wrong.

a) Crisis

b) ethical issue

c) indictment

d) fraud

4. What type of justice exists if employees are being open, honest, and truthful in their communications

at work?

a) Procedural

b) Distributive

c) Ethical

d) Interactional

5. A high-commitment approach to environmental issues may include all of the following except:

a) risk analysis
b) stakeholder analysis

c) green-washing

d) strategic sustainability auditing

6. Better access to certain markets, differentiation of products, and the sale of pollution-control

technology are ways in which better environmental performance can: