Business Ethics MCQ With Answers PDF
Business Ethics MCQ With Answers PDF
Business Ethics MCQ With Answers PDF
1. The framework for establishing good corporate governance and accountability was originally setup by
A. Nestle committee
B. Rowntree committee
C. Cadbury committee
D. Thornton committee
Discussion
B. Rowntree committee
Which of the following is not one of the underlying principles of the corporate governance combined
code of practice?
A. Accountability
B. Openness
C. Acceptability
D. Integrity
Discussion
C. Acceptability
3. External audit of the accounts of a limited company is required?
A. 21
B. 22
C. 23
D. 24
Discussion
A. 21
10. who formed the ICGN?
A. European governments
B. US share holders
C. Pension funds
D. Stock markets
Discussion
C. Pension funds
11. A company cannot issue redeemable preference shares for a period exceeding
A. 5 years
B. 10 years
C. 15 years
D. 20 years
Discussion
D. 20 years
12. which one is the dimension(approach) of corporate social responsibility?
A. Corporate philanthropy
B. Stake holders priorities and sustainable development
C. Ethical business
D. All of the above
Discussion
D. All of the above
13. According to clause 49 on independent directors. What can be maximum tenure ofindependent
director.
A. Pension fund
B. Corporate group
C. Stock exchange
D. Futures Market
Discussion
B. Corporate group
16. The concept of Corporate Social Responsibility originated in which time period?
17. Worldwide, about ___________ percent of businesses in the private sector are small ormedium
sized.
A. 80
B. 85
C. 90
D. 99
Discussion
C. 90
18. The generally accepted definition of a small business is one with ____________ or feweremployees.
A. 10
B. 20
C. 25
D. 50
Discussion
D. 50
19. The generally accepted definition of a medium business is one with _____________ or
feweremployees.
A. 50
B. 100
C. 200
D. 250
Discussion
D. 250
20. In the United States, small or medium sized businesses provide over ___________ percent oftotal
employment.
A. 25
B. 40
C. 50
D. 75
Discussion
C. 50
21. Owners of stock in a corporation are only liable for ____________.
A. stakeholder analysis
B. board of directors analysis
C. corporation analysis
D. management analysis
Discussion
A. stakeholder analysis
A. moral obligation
B. moral minimum
C. moral requirement
D. moral duty
Discussion
B. moral minimum
24. In large corporations, the ____________ is/are the legal overseers of management.
A. CEO
B. shareholders
C. board members
D. none of the above
Discussion
C. board members
25. The ____________ position is that a corporation can and should be evaluated not only interms of its
financial bottom line, but also in terms of its environmental bottom line and its social/ethical bottom
line.
A. Bottom line
B. Double Bottom line
C. Triple Bottom line
D. Final line
Discussion
B. Double Bottom line
28. The system that is used by firms to control and direct their operations and the operations oftheir
employees is called:
A. Corporate Compliance.
B. Corporate Governance.
C. Corporate Control.
D. Corporate Directive.
Discussion
B. Corporate Governance.
29. Which board of directors committee is responsible for the guidelines on how the board ofdirectors
should operate.
A. Operating
B. Corporate governance
C. Corporate compliance
D. Guiding
Discussion
B. Corporate governance
30. The Sarbanes-Oxley Act was a direct response to which ethics scandals?
A. Tyco
B. WorldCom
C. Enron
D. None of the above.
Discussion
C. Enron
31. What is the name of the process in which an employee informs another responsible employeein the
company about potentially unethical behavior?
A. Whistle-blowing
B. Purging and releasing
C. Identification
D. Information transfer
Discussion
A. Whistle-blowing
32. There are ___________ conditions that, if satisfied, change the moral status of whistleblowing.
A. three
B. four
C. five
D. six
Discussion
C. five
33. An example of a whistle blower whose actions were a form of internal government whistleblowing
is:
A. Sherron Watkins.
B. Coleen Rowley.
C. Cynthia Cooper.
D. Lee Iacocca.
Discussion
B. Coleen Rowley.
34. One whistle blower the text mentions is Cynthia Cooper who was the vice president ofinternal audit
at ____________.
A. Enron
B. WorldCom
C. Tyco
D. none of the above
Discussion
B. WorldCom
36. A whistle-blower:
38. Inside traders ordinarily defend their actions by claiming that they don’t injure:
A. their boss.
B. their family.
C. the government.
D. any one.
Discussion
D. any one.
B. Trade secrets
40. Which act provides sweeping new legal protection for employees who report possiblesecurities
fraud making it unlawful for companies to “discharge, demote, suspend, threaten, harass, or in any
other manner discriminate against” them?
43. What, according to Adam Smith, is the best way to promote collective interest?
44. Why, according to stakeholder theory, is it in companies' best interests to pay attention to
theirstakeholders?
A. If firms only act in their own self-interest employees may feel exploited.
B. If firms only act in their own self-interest government might put more regulation on them.
C. If firms only act in their own self-interest customers might not like the image that the company
portray.
D. If firms only act in their own self-interest and inflict harm on stakeholders then society might
withdraw its support.
Discussion
D. If firms only act in their own self-interest and inflict harm on stakeholders then society might
withdraw its support.
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.
Discussion
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.
Discussion
A. An accounting tool that looks at the impact on people, planet and profits.
48. A ________ _________ sets out the purpose and general direction for the organisation?
A. Mission statement
B. Purpose statement
C. Vision
D. Profit statement
Discussion
A. Mission statement
49. Which of the following would most effectively act as the primary objective of a
businessorganisation?
A. To make a profit
B. To procure resources
C. To communicate with shareholders
D. To mediate between the organisation and the environment
Discussion
A. To make a profit
51. 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
Discussion
A. Government
B. Employees
C. Customers
D. All of the above
Discussion
54. Which of the following is an example of an area where business ethics apply?
57. The ________ dimension of social responsibility refers to a business's societal contribution oftime,
money, and other resources.
A. Ethical
B. Philanthropic
C. Volunteerism
D. Strategic
Discussion
B. Philanthropic
A. Crisis
B. ethical issue
C. indictment
D. fraud
Discussion
B. ethical issue
60. Which moral philosophy seeks the greatest good for the greatest number of people?
A. Consequentialism
B. Utilitarianism
C. Egoism
D. Ethical formalism
Discussion
B. Utilitarianism
60. Which moral philosophy seeks the greatest good for the greatest number of people?
A. Consequentialism
B. Utilitarianism
C. Egoism
D. Ethical formalism
Discussion
B. Utilitarianism
61. What type of justice exists if employees are being open, honest, and truthful in theircommunications
at work?
A. Procedural
B. Distributive
C. Ethical
D. Interactional
Discussion
D. Interactional
62. 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
Discussion
C. green-washing
63. Better access to certain markets, differentiation of products, and the sale of pollution-
controltechnology are ways in which better environmental performance can:
A. increase revenue
B. increase costs
C. decrease revenue
D. decrease costs
Discussion
A. increase revenue
64. Most companies begin the process of establishing organizational ethics programs bydeveloping:
B. codes of conduct.
65. 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
Discussion
A. cultural relativism
A. Policy drivers
B. Development drivers
C. Business action
D. Social enablers
Discussion
B. Development drivers
68. Which of the following is a problem presented by ethics audits?
69. 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.
Discussion
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.
Discussion
A. are formal statements that describe what an organization expects of its employees.
71. Which of the following is NOT one of the primary elements of a strong organizationalcompliance
program?
72. ______________ are standards of behaviour that groups expect of their members.
A. Codes of conduct.
B. Group values.
C. Group norms.
D. Organizational norms.
Discussion
C. Group norms.
73. In a ______________ organization, decision making is delegated as far down the chain ofcommand
as possible.
A. Decentralized
B. Creative
C. Flexible
D. Centralized
Discussion
D. Centralized
74. Managerial ethics can be characterised by all of the following levels except
A. immoral management
B. amoral management
C. demoral management
D. moral management
Discussion
C. demoral management
Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.
Alternative Proxies: