The structure in which there is separation of ownership and management is called

 Sole proprietorship
 Partnership
 Company
 All business organizations
Answer: (c) Company
The karta in Joint Hindu family business has
 limited liability
 Unlimited liability
 No liability for debts
 Joint liability
Answer: (b) Unlimited liability
In a cooperative society the principle followed is
 One share one vote
 One man one vote
 No vote
 Multiple votes
Answer: (b) One man one vote
The board of directors of a joint stock company is elected by
 General public
 Government bodies
 Shareholders
 Employees
Answer: (c) Shareholders
The maximum number of partners allowed in the banking business are
 Twenty
 Ten
 No limit
 Two
Answer: (b) Ten
Profits do not have to be shared. This statement refers to
 Partnership
 Joint Hindu family business
 Sole proprietorship
 Company
Answer: (c) Sole proprietorship
The capital of a company is divided into number of parts each one of which are called
 Dividend
 Profit
 Interest
 Share
Answer: (d) Share
The Head of the joint Hindu family business is called
 Proprietor
 Director
  Karta
 Manager
Answer: (c) Karta
Provision of residential accommodation to the members at reasonable rates is the objective of
 Producer’s cooperative
 Consumer’s cooperative
 Housing cooperative
 Credit cooperative
Answer: (c) Housing cooperative
A partner whose association with the firm is unknown to the general public is called
 Active partner
 Sleeping partner
 Nominal partner
 Secret partner
Answer: (d) Secret partner
Values and ethics shape the-
(a) Corporate unity (b) Corporate discipline
(c) Corporate culture (d) Corporate differences
C. CORPORATE CULTURE
The moral principles, standards of behaviour, or set of values that guide a person’s
actions in the workplace is called-
(a) Office place ethics (b) factory place ethics
(c) behavioural ethics (d) work place ethics
D. WORK PLACE ETHICS
Which of the following factors encourage good ethics in the workplace?
(a) Transparency (b) fair treatment to the employees of all levels
(c) both (a) and (b) (d) bribe
C. BOTH A AND B
4. Which of the following are ethical issues in financial markets-?
(a) Churning (b) Illegal dividend payment
(c) creative accounting (d) none of these
A. CHURNING
The trading of a public company’s stock or other securities like bonds or stock options
by individual with possession of material, non-public information about the security is
called-
(a) Insider trading (b) online trading (c) offline trading (d) direct trading
A. INSIDER TRADING
Which of the following methods are used in creative accounting?
(a) Off balance sheet financing
(b) Abuses of accounting concepts and conventions
(c) Manipulating assets and liabilities
(d) Over and under valuation of inventories
A. OFF BALANCE SHEET FINANCING
7. The short-term focus on company finances in sometimes known as-
(a) Glaucoma management
(b) Retina management
 (c) Myopic management
(d) None of these
C. MYOPIC MANAGEMENT
. Due to fraudulent reporting the share price of a company’s stock may-
(a) Boost up (b) fall down (c) remain stagnant (d) none of these
A. BOOST UP
The process by which accountants use their knowledge of accounting rules to
manipulate the figures reported in the accounts of a business in known as-
(a) Financial accounting (b) creative accounting
(c) cost accounting (d) fair value accounting
B. CREATIVE ACVOUNTING
It is deceptively used by an organisation to promote the perception that its products,
aims, or policies are environmentally friendly-
(a) Blue washing (b) white washing (c) green washing (d) green pricing.
C. GREEN WASHING.
Which among the following dichotomies is used in a discourse on ethics?
1. Empirical – Normative
2. Descriptive – Prescriptive
3. Fact – Value
4. Profit - Loss
Which of the following is correct?
a) 1 and 3
b) 1 and 2
c) 1, 2 and 3
d) 2, 3 and 4 Correct Answer: C
How does the individual come to be able to make moral decisions?
1) By understanding his motives
2) By understanding the consequences of his actions
3) By being deterred and frightened of the penalties incurred on him for his action
By understanding the means adopted to execute action
a) 1,2 and 3
b) 1,3 and 4
c) 1,2,3 and 4
d) 1, 2 and 4 Correct Answer: D
Which of the following statements are true about Engineering Ethics?
1. Engineering Ethics is an area of practical or applied ethics
2. The aim of Engineering Ethics is to illuminate the ethical dimensions of engineering
practice
3. Engineering Ethics is constituted of an eclectic contribution of all schools of ethics
4. Professional Engineering Societies are a major source of codes for engineering ethics.
Which of the following is correct?
a) Only 2
b) 1 and 3
c) 1, 3 and 4
d) 1, 2, 3 and 4 Correct Answer: D
Which of the following assumption about moral behavior is reasonably justified?
 1. Most people will behave morally if the socialization process has successfully
inculcated the right values
2. Some people will behave more morally than others even if they have been under the
same socialization process
3. Social situations provide the best stimulus to moral action or inaction; i.e social
pressure determines moral action/inaction.
4. Socialization has no role in developing moral values
a)1 and 4
b)1,2 and 3
c) 1,2,3 and 4
d) 2 and 3 Correct Answer: B
Which among the following are principle concerns with ‘professional ethics’
1) To study ethical dilemmas in professions by application of moral theory
2) The study of unique moral obligations created by special social roles
3) The practice and consultancy of ethics by a trained professional ethicist
4) The ethical challenges of a professional lifestyle Which of the following are
correct?
a) 1 and 2
b) 2 and 3
c) 1, 2 and 3
d) 1, 2, 3 and 4 Correct Answer: A

Which of the following are true

Ethical dilemmas arise when it is thought that serious good and bad are bound together in
the same activity
Ethics uses the instrument of coercion to oblige its subjects
Ethical behavior is dependent on the conditions and circumstances under which an
action/event takes place
Codes of Conduct form a part of ethical training
a) 1 and 3
b) 1, 3 and 4
c) 1,2 and 3
d) 2, 3 and 4 Correct Answer: B

7) Which of the following statements is most appropriate to describe deontological ethics?

a) The central idea is that the right or wrong consideration is what makes the act right or
wrong, other things being equal
b) The central idea is that an adherence to the codes prescribed under the duty one is
employed in makes for the right action
c) The central idea is that right and wrong are relative to time and circumstance
d) The central idea is that right and wrong are determined by humans according to their
subjective conscience
Correct Answer: A
8) Consider the following statements behavior and the type of activity corresponding to
them as impediments to responsible action for an engineer
Type of Behavior
1. When group comes to agreement at the expense of critical thinking
2. When we see things at the microscopic level, we can’t see them at the general and
ordinary level
3. We tend to interpret situations from very limited perspectives
4. An engineer genuinely does not realize that a design poses a safety problem

Type of Activity

A) Microscopic Vision
B) Egocentrism
C) Groupthink
D) Ignorance

Which of the following are correct?

1) 1 – A; 2 – B; 3 – C; 4 –D
2) 1 – C; 2 –A; 3 –B; 4 –D
3) 1 –B; 2 –C; 3 –D; 4 –A
4) 1 –A; 2 – C; 3 –B; 4 –D

Correct Answer: B

9) Which of the following statements are true about ‘Morale’

1) It is a form of ‘attitude’
2) It is reflected in positive feelings about the work group
3) It instills confidence that difficult goals can be achieved easily
4) It is the knowledge of the distinction between right and wrong action

a) 1,2 and 3
b) 1,2,3 and 4
c) 2 and 3
d) 2, 3 and 4

Correct Answer: A

10) Which of the following is the most appropriate definition of “practice” vis a vis
professional ethics?

a) “practice” is a cooperative arrangement to pursue the goods that are internal to a

structured communal life
b) “practice” is an endeavor to achieve excellence by incessant repetition
c) “practice” is the application of knowledge into real time problems
d) “practice” is symbolic of the humble admission that humans can never know and learn
enough

Correct Answer: A

11) Which of the following are true with regard to safety and treatment of employees

1) It is a means of promoting worker efficiency and social order by protecting lives and
promoting the well-being of workers
2) The idea of safety and treatment of employees was conceived during the Industrial
Revolution in Europe
3) By ensuring safety of workers the political society of a nation is stabilized
4) All workers have a right to expect fairness from their employer and to be treated with
respect and dignity

a) 1,2,3 and 4
b) 1,3 and 4
c) 2 and 4
d) 1 and 4

Correct Answer: A

12) What among the following is a sub - specie of “normative ethics”

1) War Ethics
2) Applied ethics
3) Virtue ethics
4) Meta ethics

Which of the following are correct?

a) 2 only
b) 1, 2 and 3
c) 2 and 3
d) 1, 2, 3 and 4

Correct Answer: A

13) Which of the following are prominent examples of ‘ethical issues’ that fall under the
domain of ‘applied ethics’?

1) Euthanasia
2) Protection of human and animal subjects in research
3) Affirmative action
4) Acceptable risk in workplace Which of the following are correct?
a) 2 and 4
b) 1,2 and 3
c) 1, 2, 3 and 4
d) 2, 3 and 4

Correct Answer: C

14) Consider the following options with regard to the ‘Anthropogenic World View’ vis a vis
Environmental Ethics

1) Humanity perceives itself to be the center and ultimate goal of the Universe
2) Humanity perceives environment as a superior actor whose laws and codes are not well
understood
3) Nature is viewed as a storehouse of resources
4) Many large, hierarchical business houses still base their business model on this world
view
Which of the following are correct?
a) 1, 2 and 4
b) 1, 3 and 4
c) 1 and 3
d) 1 and 4

Correct Answer: B

15) Which of the following principles is the essential principle of utilitarian school of ethics?
a) Greatest Health Principle
b) Greatest Happiness Principle
c) Greatest Wealth Principle
d) Greatest Respect Principle.

Correct Answer: B

16) Which among the following is a true about ethics of research and experimentation?

1. Research that causes harm to humans is morally wrong

2. Research that involves humans is justified only when some good can come from it
3. A person’s right to liberty is violated if he is a subject to research by coercion
4. Informed Consent plays a role in Research Ethics Which of the following is correct?
a) 1, 2 and 4
b) 1, 2, 3 and 4
c) 2 and 3
d) 3 and 4

Correct Answer: B
17) What among the following elements takes the most direct and immediate set back in a
case of conflict of interest by a public official?
a) The reputation of the officer
b) The trust that the public holds in the office
c) The legitimacy of the office
d) The constitution of India

Correct Answer: B

18) “It is commonly said that before blowing the whistle, a person has an obligation to see
that all existing avenues for change within the organization must have been explored”. Consider
the following statements as justifications for the above proposition.

1) The agent will be forced neither to breach confidentiality nor be disloyal

2) The agent (potential whistle blower) can seek remuneration from the organization for
fidelity
3) The organization will not suffer embarrassment or more tangible harm
4) The organization can correct its mistakes internally by devising mechanisms to hear the
issues raised by employees
Which of the following are correct set of justifications under ethics?

a) 1, 3 and 4
b) 1,2 and 3
c) 1 and 4
d) Only 1

Correct Answer: A

19) Which of the following actions can be termed as breach of ‘Professional Ethics’

1) A physician who refers patients to a specialist in return for monetary favours

2) A scientist who exaggerates the importance of his discoveries to encourage investors in
his biotech company
3) A lawyer who lies to the Judge
4) The reporter who spreads fake news Which of the following is correct?
a) Only 1
b) 1 and 2
c) 1, 2 , 3 and 4

d) 1, 2 and 4

Correct Answer: C

20) Which of the following are the functions of a code of ethics?

1) It can express a shared commitment on the part of a professional society’s members to

strive to satisfy certain ethical standards and principles.
2) It can help foster an environment in which ethical behavior is the norm
3) It can serve as a guide or reminder in specific situations
4) A code can be a valuable academic and educational legacy for an organization. Which of
the following are correct?
a) 1 and 3
b) 1,2 and 3
c) 1,2,3 and 4
d) 1 and 2

Correct Answer: C

21) Which of the following is an appropriate general principle with regard for ‘Engineering
Ethics’
a) The Engineer shall regard his duty to the public welfare as paramount to all other
obligations.
b) The Engineer shall regard his duty to the objectives of the company as paramount
to all other obligations
c) The Engineer shall regard his duty to the profession of engineering as paramount
to other obligations
d) The Engineer shall regard his duty to his excellence as paramount to other obligations

Correct Answer: A

22) Which of the following statements is the most correct description of the relationship
between humans and technology?
a) Technology “impacts” upon human actions and human beings
b) Human beings “act on, make, use” technology
c) Technology provides apparatus for human action
d) Technology hijacks human autonomy

Correct Answer: C

23) What are the elements necessary for an Institution to formulate a state of the art ‘code of
ethics’

1. a body of public interest/relevance

2. expert scholarship
3. enormous funding
4. professional support
a) 2 and 4
b) 2,3 and 4
c) 1, 2 and 4
d) 1, 2, 3 and 4

Correct Answer: C

24) Which of the following elements (as a fundamental criterion) must always be in the mind
of Engineer while performing his duties vis a vis Ethics
1. Public Safety
2. Economy
3. Health
4. Welfare

a) 1,2 and 3
b) 1, 2, 3 and 4
c) 1 and 4
d) 1, 3 and 4

Correct Answer: D

25) What among the following are the shortcomings of a code of ethics formulated by a

‘professional engineering society’?

1) These codes are not formulated with sincere scholarship or expertise and are often a
hostage to economic interests
2) Most practicing engineers do not belong to any professional engineering society, so the
codes cannot properly reach out to them
3) Such codes, at best represent the highest ethical common denominator among those to
who it applies therefore it may include provisions which may be ethically questionable
4) These codes are not exhaustive – and there are matters of ethical importance that may go
unnoticed
Which of the following sets of answers are correct?

a) 1 and 2
b) 1, 2 3 and 4
c) 2, 3 and 4
d) 2 and 3

Correct Answer: C
26) As an engineer you are stuck in an ethical dilemma about the execution of a certain task
that you find morally contestable. You refer to a well-known ‘code of ethics’ and other
regulations but none of them specifically prohibit that certain course of action (which is in
contestation). Under what category does the ethical dilemma fall, when the ‘code of ethics’ are
not able to solve it?

a) Professional Ethics
b) Personal Ethics
c) Societal Ethics
d) Business Ethics
Correct Answer: B

27) Match the following in terms of ethical issues in Information technology and their
respective description

Issue Description
1) Privacy A) Data Ownership and software Usage Rights
2) Accuracy B) Responsibility of Data Collector to use accuracy
3) Property C) Collection and use of data about individuals
4) Access D)responsibility of data collectors to control access

Which of the following combination is correct?

a) 1 –A; 2 – B; 3 – C ; 4 – D
b) 1 – C; 2 – B; 3 – A; 4 – D
c) 1 – C; 2 –A; 3 –D; 4 – B
d) 1 – D ; 2 – B; 3 – C; 4 – A

Correct Answer: B

28) Which of the following statements best explains the reason for engineering ethics being a
branch of applied ethics?

1. The aim of engineering ethics is to shed light on ethical concerns related to engineering
practice
2. It is applied in the sense that ethical considerations are directed to practice rather than
theory
3. The first task of engineering ethics is to identify the basic concern that arise prior to
practice
4. To think on the questions of engineering ethics one necessarily needs a technical
engineering knowledge.
a) 1 and 4
b) 2 and 3
c) 1 and 2
d) 2 and 4

Correct Answer: C

29) Consider the following statements about ‘whistle blowing’

1) A whistle blower makes accusations against an Organization which call attention to

alleged instances of negligence, abuse or practices that damage the public interest or harm others.
2) The accusation mostly single out individuals or groups within the organization as
responsible for the harm being perpetrated
3) Whistle blowing instances can only occur in for profit organizations
4) If the accusations are not made public but only confided to a relative or acquaintance this
would not be termed whistle blowing
Which of the following are correct?

a) 1,2 and 4

b) 1,2 3 and 4
c) 1 and 4
d) Only 1

Correct Answer: A

30) What values do a ‘code of ethics’ command in a court of law?

1) Code of ethics do not by themselves have the force of law
2) court of laws are bound by code of ethics
3) the code of ethics can provide upon its own power and legality
4) court of law can use the code of ethics in a non-authoritative manner to reason a
judgment, by the aid of its principles
Which one is correct?

a) 1, 3 and 4
b) 2 and 3
c) 2, 3 and 4
d) 1 and 4

Correct Answer: D

31) X is a director at a PSU in India, he sits on the interview panel that is scheduled to
interview B who is his nephew, who has qualified the written examination for a job at that PSU –
which of the following ethical issues apply to X?
a) Nepotism
b) Conflict of Interest
c) Corruption
d) Embezzlement Correct Answer: B

32) Which of the following descriptions best describes the principle concerning professional
ethics?

a) Professional duties must be judged by ethical standards independent of time, place and
circumstance
b) Judging professional duties always involves reciprocal adjustment between ends and
means

c) Professional duties must by nature be strictly deontological, i.e – the ends must not come
at the cost of the means
d) Professional duties must be judged only by what they achieve in line with the ends
prescribed by the ideals of business
Correct Answer: B

33) What are the possible ethical dilemmas that a whistle blower can be face?
1) Public Interests versus Private interests
2) Citizenship versus Employment
3) Private Benefit versus Employer’s Benefit
4) Short term view versus the long term view

a) 1, 2 and 4
b) 1, 3 and 4
c) 1,2 and 3
d) 1 and 4

Correct Answer: C

34) The principle of deontological ethics has been most succinctly laid down by Immanuelle
Kant in his categorical imperative – which states “ Act only in accordance with that maxim
through which you can at the same time will that it becomes a universal law”- under what
category of the following methods does this lie?
a) Bottom Up model
b) Top Down model
c) Internal ethics model
d) External ethics model
Correct Answer: B

35) Which of the following is the opposite of normative ethics?

a) Micro Ethics
b) Beta Ethics
c) Meta Ethics
d) Virtue Ethics

Correct Answer: C

36) When a multinational company goes for operations abroad there is an ambiguity as to the
standard of ethical codes that must be adhered to within the company, commonly this problem is
known as the problem of ethical relativism.
Which of the following statements are true about ethical relativism?

1) Cultural difference strictly entail ethical differences

2) Cultural differences should not be equated with irresoluble moral differences
3) What appear to be cultural differences may also be differences in perspective
4) All human beings around the world agree to the same moral standards. Which of the
following sets are correct?
a) 2 and 3
b) 1, 3 and 4
c) 2, 3 and 4
d) Only 4

Correct Answer: A

37) Which of the following statements are true?

1) The more strict and disciplined the process of socialization - the better quality of morality
is formed in an individual
2) The higher the level of moral reasoning in individuals - the more moral the behavior to be
expected
3) The increase in perception of individual’s responsibility and involvement in the situation
increases the probability of moral behavior
4) The more rigorous the monitoring of behavior by a supervisory agency - the more
voluntarily the individual acts morally.

a) 1,2 and 4
b) 1,2,3 and 4
c) 2 and 3
d) 2,3 and 4
Correct Answer: C

38) Which of the following are reasonable criteria for judging whether proposed research
involving human subjects is ethically sound?

1) Risk to subject are minimized

2) Risks are reasonable related to anticipated benefits

3) Prior informed consent will be obtained from subjects
4) Subjects privacy and confidentiality will be maintained Which of the following is
correct?
a) 1 and 2
b) 1, 3 and 4
c) 1, 2, 3 and 4
d) 1 and 3

Correct Answer: C

39) What is a more appropriate method to be employed whilst formulating a ‘code of ethics’
for engineering practices
1. To draw broad and general principles at the start and judge each case by that principle
2. To begin with particular cases
3. To look for relevant paradigm cases for appropriate and inappropriate points that can
serve as a reference point for more complicated cases
4. To borrow codes from other professional ethics like medicine and law Which of the
following set is correct?
a) 1,2,3 and 4
b) 1, 3 and 4
c) 2 and 3
d) 3 and 4

Correct Answer: C

40) Consider the following ethical dilemmas and correspond them to the type of ethics
Dilemma
1) Privacy Versus Social Utility
2) Profit Versus Welfare
3) Private Gain Versus Public Trust
4) Sustainability Versus Development Type of Ethics
A) Environmental Ethics
B) Business Ethics
C) Administrative Ethics

D) Technology Ethics
Which is the correct combination? a) 1 – A; 2 –B;3 –C; 4 –D
b) 1 –D; 2 –C; 3 –B; 4 –A
c) 1 –D; 2 –B; 3 –C; 4 –A
d) 1 –D 2 –A; 3 –B; 4 –C

Correct Answer: C
41) Which of the following are included as major normative ethical theories?
1) Contractualism
2) Consequentialism
3) Deontology
4) Virtue Theory

Which of the following are correct?

a) 1,2 and 4
b) 1,2 and 3
c) 1, 2, 3 and 4
d) 2, 3 and 4

Correct Answer: C
42) You are appointed as the Production Manager of an oil corporation, since the industry
that you work for has a lot of potential for hazard to the environment and other species, you have
a mandate to think about these issues carefully and come up with a draft policy to deal with such
issues. In such a scenario you contemplate on the nature of the relationship between man and
other species around him, and try to judge how and why is man responsible towards sustaining
other species. What of the following types of ethics are you engaging in this process?

a) Meta Ethics
b) Virtue Ethics
c) Environmental Ethics
d) Deontological Ethics

Correct Answer: A

43) Which of the following options are included in the ethics of fair treatment of workers at
workplace?

1) Physical safety of employees at the workplace

2) Recreation facilities at the workplace
3) Rights of workers to fairness and dignity
4) Right of workers to have a share in company’s profit Which of the following are correct?
a) 1 and 2
b) 1 and 3
c) 2 and 4
d) 1, 3, and 4

Correct Answer: B

44) Which among the following statements fits into a description of meta ethics?

a) X works for his ‘personal benefit’

b) X contemplates on the idea of ‘personal benefit’
c) X forms community where each individual works for his ‘personal benefit’
d) X extends the doctrine of ‘personal benefit’ to all living organisms on the planet.

Correct Answer: B

45) Consider the following options with regard to the ‘Bio centric World View’
1) It is a world view that views the planet as a living system of interdependent species
2) It works under the “do not harm” principle
3) The environment is viewed as fragile, limited in resources and vulnerable to
organizational actions
4) Every act of pollution or resource depletion is not viewed as an isolated event but as a
contributing factor to a collective impact of increasingly accelerating global proportions
Which of the following are correct?

a) 1,2 and 4
b) 2 and 4
c) 2,3 and 4
d) 1,2, 3 and 4

Correct Answer: D

46) Which of the following is a description of the collective action problem?

a) When all members of a group pursue a collective interest, individuality is crushed.
b) When each member of a group pursues individual goals/self-interest the collective
outcome is bad for the group
c) When each member of a group pursues individual goals/self – interest the collective
outcome is worse for each member
d) When each member of a group pursues collective goal – the collective goal is never
achieved.
Correct Answer: C

47) Which of the following descriptions best fit the ideal of cooperation
1. People cooperate when and as long as their self - interest aligns with the interests of the
group
2. People cooperate when they sacrifice their self – interests completely for the well - being
of others in the group
3. People cooperate when they forgo the pursuit of their own independent interests and
follow rules or roles assigned to them by society
4. In cooperation the collective following of rules and roles assigned by a group promotes
everyone’s interests better than would have been done by everyone pursuing their own interests
independently.
Which of the following is correct?

a) 1 and 4
b) 2 and 4
c) 3 and 4
d) Only 4

Correct Answer: C

48) Which of the following descriptions is correct about the ethical theory of
consequentialism?

a) The theory of consequentialism is an evaluation of an ideal type - the way world ought to
be
b) The theory of consequentialism is an evaluation of outcomes or states – the way world
might be

c) The theory of consequentialism is an evaluation of motives of the person acting

d) The theory of consequentialism is an evaluation of the means that a person acts through
Correct Answer: B

49) Which of the following are the principles that need to be adopted in Economics to deal
with the Environment responsibly

1) Marketing of safe products and services

2) Curtailing the use of energy by developing economies
3) Reduction and Disposal of manufactured products
4) Environmental Directors and Managers for enterprises and corporations

a) 1, 3 and 4
b) 1, 2 and 3
c) 2 and 4
d) 1 and 3

Correct Answer: A

50) Which of the following is a correct combination?

Type of Ethics DESCRIPTION

1) Contractualism A) Social Agreement among a range of parties on ethical principles
2) Deontology B) Ethics based on the fulfillment of one’s duty
3) Consequentialism C) Ethics based upon the nature of consequences of action
4) Virtue Ethics D) Emphases on the excellence of mind and character

a) 1 – A; 2 – B; 3 – C; 4 – D
b) 1 – C; 2 – D; 3 – A; 4 – B
c) 1 – A and 2 – B
d) 3 – C and 4 – D

Correct Answer: A

51) Which among the following are most likely to be virtues of utilitarianism?
1) Moderation
2) Passion
3) Equality
4) Civil Rights

Which of the following is correct?

a) 1 and 4
b) 1 and 3
c) 2, 3 and 4
d) 1, 3 and 4

Correct Answer: B

52) “the view that there is no general moral principles and that the moral disputes therefore
cannot be resolved” – is a description of which of the following schools of ethics?
a) Ethical nihilism
b) Ethical skepticism
c) Ethical relativism
d) Ethical transcendence Correct Answer: C
53) Which of the following is an example of a trade mark?
a) “Pepsi”
b) “Ye Dil maange More”
c) A lyrical advertising composition
d) All of the above

Correct Answer: D

54) There is a concept termed ‘basic set of minimum moral standards’ – that scholars believe
are to be found in all cultures and societies in some form or the other; what among the following
are its examples?

1) Torture and murder are wrong

2) One ought to respect another human being
3) Some principles of fairness are necessary for a working society
4) one ought to protect the innocent Which of the following is correct?
a) 1 and 4
b) 1,2 and 3
c) 1,2,3 and 4
d) 1 and 3

Correct Answer: C

55) Which of the following statements are correct when speaking about business ethics?
1) Open and free competition without deception and fraud
2) Managers have fiduciary duties towards owners and shareholders
3) Corporations ought not to be disturbed or interfered by outside agencies like government,
civil society etc
4) Law and common morality should guide the actions of corporation in a market place
Which of the following is correct?
a) 1, 3 and 4
b) 1, 2 and 4
c) 1, 2, 3 and 4
d) 2, 3 and 4 Correct Answer: B

56) Which among the following falls under the definition of conservation?

1. Conservation deals with how to manage natural resources

2. Conservation deals with the consequences of wasteful use of property
3. Conservation deals with logistics of production goods
4. Conservation deals with genetically modified crops Which of the following are correct?
a) 1 and 4
b) 1 and 2
c) 1, 2, 3 and 4
d) 1, 2 and 4 Correct Answer: B
57) What is the process of converting biological materials into useful fuels and chemicals
called?
a) Centrifugation
b) Biomass Conversion
c) Biological Fermentation
d) Organic Cultivation Correct Answer: B

58) ‘Role morality’ is often described as the moral obligations that arise out of the role that
an individual assumes within an organization, consider the following statements

1) The moral obligations of an individual ought to be defined by and limited to the role that
individual assumes in an organization
2) Role morality has an important but limited contribution to make in business ethics
3) Role responsibilities are not enough to describe the scope and extent of managerial
responsibilities
4) Role morality is the paramount safeguard that ensures business ethics Which of the
following is correct with regards to role morality in business ethics
a) 1 and 4
b) 2 and 3
c) 1, 2 and 3
d) 2, 3 and 4 Correct Answer: B
59) “A is any individual or group who benefits from or is harmed by, or whose rights are
affected (violated, restricted or ignored) by an organization’s action.” What is the most
appropriate insertion in the blank
a) Victim
b) Stakeholder
c) Culprit
d) Shareholder Correct Answer: B

60) Which of the following is a form/type of conflict of interest?

1) Using government Property for extra official purposes
2) Post-Employment Benefits
3) Receiving Gifts from clients
4) Holding an office of profit Which of the following are correct?
a) 1, 2 and 4
b) 1, 2 and 3
c) 1 and 2

d) 3 and 4 Correct Answer: B

61) Why are stakeholders important to a company?

1) Because a company could not exist or achieve profits without them
2) Because stakeholders are individuals or groups of individuals – human beings with rights
and interest.
Which of the following are correct?

a) Only 1
b) Only 2
c) Both 1 and 2
d) Neither 1 and 2 Correct Answer: C
62) What among the following virtues must be constituent elements of moral excellence of an
individual discharging managerial duties at a business organization?
1) Community
2) Nobility
3) Holism
4) Judgment

Which of the following are correct?

a) 1, 2 and 4
b) 1, 2, 3 and 4
c) 2 and 4
d) 1, 3 and 4 Correct Answer: B
63) Which among the following is an appropriate understanding of what corporate
responsibility means?
a) Companies should be held accountable for social effects of their actions
b) Companies should be held accountable for political effects of their actions
c) Companies should be held accountable for economic effects of their actions
d) All of the above Correct Answer: D

64) Which of the following is correct combination?

1) Indian Penal Code A) Legal

2) National Society of Professional Engineers Code B) Administrative
3) ICC Rules of Cricket C) Ethical
4) Constitution of India D) Social and Political

8) 1 –A; 2 –B; 3 –C; 4 –D

9) 1 –A; 2 –C; 3 –B; 4 –D
10) 1 – D; 2 –C; 3 –A; 4 –B
11) 1 –C; 2 –A; 3 –B; 4 –D

Correct Answer: B

65) The ethical issues concerned with computer technology are often termed ‘unique’, what
does it mean?
a) since computers are a realtively new phenomenon in history and therefore the ethical
problems the pose are unique in nature, which can’t be resolved by simple application existing
theories and disciplines of ethics
b) Only unique people can handle the sophisticated functioning of computers and therefore
only they need to learn about its ethic
c) Both a and b
d) Neither a and b Correct Answer: A
66) “Humans have always exploited nature in the belief that the biosphere is so vast and
enduring that people could never inflict devastating harm”. Consider the following options

1) Events since 1980s have called this perception into question

2) Half of the biosphere changes caused by humans has taken place since World War II
3) The major debate in environment ethics is Business Versus Environment
4) Pro - active environmental programs are needed to meet this crisis. Which of the
following are correct?
a) 1 and 4
b) 2, 3 and 4

c) 1, 2 , 3 and 4
d) 1, 3 and 4 Correct Answer: C
67) Which of the following is the most appropriate dilemma within computer/ technology
ethics?

a) Means versus Ends

b) Risk versus benefit
c) Privacy versus social utility
d) Public Versus Private Correct Answer: C
68) What are the possible ethical issues that can arise in ‘Design’?

1. Sustainability of the design

2. Aesthetic of the design
3. Affordability of the design
4. Utility of the design Which of the following is correct?
a) 1, 2, 3 and 4
b) 1, 3 and 4
c) 1 and 4
d) 1 and 3 Correct Answer: B

69) Which among the following are types of consequentialist/utilitarian ethics?

1. Act consequentialism
2. Rule consequentialism
3. Abstract consequentialism
4. Impact consequentialism Which of the following are correct?
a) 1, 2 and 4
b) 1 and 2
c) 1,2 and 3
d) 2 and 4

Correct Answer: B

70) Which of the following parties can be considered a stakeholder in a business

organization?
1) Employees
2) Suppliers
3) Communities
4) Shareholders

Which of the following is correct?

a) 1, 2 and 4
b) 1, 2, 3 and 4
c) 1 and 2
d) 1, 2 and 3 Correct Answer: B

71) Consider the following statement, and mark the correct one which is borrowed from
NSPE code of ethics, about IPR

a) “Engineers shall not reveal facts, data or information obtained in a professional capacity
without the prior consent of the client or employer except as authorized and required by law or
this Code”
b) “Engineers shall be free to reveal facts, data or information obtained in a professional
capacity without the prior consent of the client or employer except as prohibited by law or this
Code”
c) “Engineers shall not obtain facts, data or information in a professional capacity without
the prior consent of the client or employer except as authorized and required by law or this
Code”
d) “Engineers shall not gain monetary benefits from facts, data or information obtained in a
professional capacity without the prior consent of the client or employer except as authorized and
required by law or this Code”
Correct Answer: A

72) Which of the following are reasons for the rapid extinction of species?

1. Pollution

2. Habitat destruction
3. Deforestation
4. Over- exploitation

Which of the following is correct?

a) 1 and 4
b) 2 and 3
c) 1, 2, 3 and 4
d) 3 and 4 Correct Answer: C

73) Which among the following are the entities that check and control conflict of interest in a
Govt Department?

1) Comptroller and Auditor General (CAG)

2) Judiciary
3) Commissions of Inquiry
4) Ministry of Finance

Which of the following are correct?

a) 1, 2 and 3
b) 1,2, 3 and 4
c) 2, 3 and 4
d) 1 and 3

Correct Answer: A

74) Which of the following are fundamental cannon of NSPE?

1) Hold, paramount the safety, health and welfare of the public
2) Perform services only in areas of their competence
3) Issue public statements only in an objective and truthful manner
4) Never defect from the corporation which has employed them for a considerable amount
of time
Which of the following are correct? a) 1, 2, 3 and 4
b) 1,2 and 3
c) 2,3 and 4

d) 2 and 3 Correct Answer: B

75) Which among the following issues falls under the category of micro ethics?
1) Health and Safety
2) Product Liability
3) Bribes and Gifts
4) Sustainable Development Which of the following is correct?
a) 1. 2 and 4
b) 1 and 3
c) 2 and 4
d) 1, 2 and 3 Correct Answer: B
76) Identify the school of Ethics under which whistle blowing can be justified by the
following proposition - “when the balance of good over evil is better for all affected parties than
if the whistle was not blown.”
a) Deontological
b) Ethical Realism
c) Utilitarianism
d) Ethical Relativism Correct Answer: C
77) Which of the following statements are true about ‘Values’
1) People are always aware of all their values
2) Values are the links between needs and actions
3) Moral values are the most fundamental form of values
4) Values are the basis for emotions

a) 1,2 and 3
b) 2,3 and 4
c) 2 and 4
d) 1,2,3 and 4 Correct Answer: B

78) Which the following is true about environmental ethics?

1) Environmental ethics is a branch of applied ethics
2) Environmental ethics is most concerned with the moral grounds with the preservation and
restoration of the environment
3) It has evolved more as a series of debates concerning meta ethics rather than a straight
forward application of normative ethics
4) The principle question asked is – how can the value of nature be best described such that
it is directly morally considerable in and of itself

Which of the following is correct?

a) 1, 2 and 4
b) 2 and 3
c) 1, 2, 3 and 4
d) 2 and 4 Correct Answer: B

79) Which of the following is a correct combination?

Type of Ethics Example

1) Business Ethics A)Drafting a policy on Corporate Social Responsibility
2) Meta Ethics B)Writing a thesis on the nature of perception in moral judgments
3) Professional Ethics C)Drafting a white paper on the ethical conduct of Managers in
Banks
4) Applied EthicsD)Conceiving a formula to deal with ethical implications of road
accidents
a) 1 –A; 2 –B; 3 –C; 4 –D
b) 1 –B; 2 – C; 3 –A; 4 –D
c) 1 –A and 3 –C
d) 2 –C; 3 –B and 4 –D Correct Answer: A
80) Which among the following are principles to conserve environment as formulated by
CERES
1) Protection of the Biosphere
2) Reduction and Disposal of Waste
3) Environmental Restoration
4) Informing the Public

Which among the following is correct?

a) 1, 2, 3 and 4
b) 1 and 3
c) 2 and 4
d) 2, 3 and 4 Correct Answer: A

81) What among the following are reasonable excuses for an amoral or immoral act?
1) Undue Emotional Pressure
2) Ignorance of facts and consequences
3) Not enough time to make a decision
4) Lack of moral training and insight Which of the following is correct?
a) 1, 2, 3 and 4
b) 2, 3 and 4
c) 1, 2 and 3
d) 2 and 3 Correct Answer: C
82) Which of the following forms a part of Bioethics?

1. Biomedical Technology
2. Genetic Engineering
3. Informed Consent
4. Genetic Screening

Which of the following are correct?

a) 1 and 4
b) 1, 2, 3 and 4
c) 1,3 and4
d) 2 and 3 Correct Answer: B
83) ‘ is the genetic diversity of all forms of life on Earth, measured in terms of both
number of species and genetic variability among the species.
a) Biodiversity
b) Biocount
c) Biolongivity
d) Biosurplus Correct Answer: A

84) What among the following question must a moral agent keep in mind while determining
corporate social responsibility?
1) Is this activity necessary in order to conduct business?
2) Is it necessary to redress harms caused by the company?
3) Is the activity within the scope of the firm’s expertise?
4) Can such an activity be carried out without interfering with the social fabric, or
community, or national security?
Which of the following are correct?

a) 1, 2 and 4
b) 1, 2, 3 and 4
c) 2,3 and 4
d) 3 and 4 Correct Answer: B
85) Which among the following are Professional Obligations as listed under NSPE?
1) Engineers shall be guided in all their relations by the highest standards of honesty and
integrity
2) Engineers shall at all times strive to serve the public interest
3) Engineers shall not disclose, without consent, confidential information concerning the
business affair or technical processes of any present or former client or employer, or public body
on which they serve.
4) Engineers shall not be influenced in their professional duties by conflicting interest
Which of the following is correct?
a) 1,3 and 4
b) 1, 2, 3 and 4
c) 2, 3 and 4
d) 1 and 3

Correct Answer: B
86) What are the academic ‘distinctions’ observed during the study of environmental ethics?

1. Health related concern – Non health related concern

2. Intrinsic value – Instrumental value
3. Descriptive – Prescriptive
4. Rights – Duties

Which of the following is correct?

a) 1, 2 and 3
b) 1 and 2
c) 1 and 3
d) 1, 2, 3 and 4 Correct Answer: B

87) Which among the following categories form a part of fairness towards the workers?
1) Hiring practices
2) Compensation
3) Privacy
4) Sexual Harassment

Which of the following are correct?

a) 1, 2 and 4
b) 1, 2, 3 and 4
c) 2, 3 and 4
d) 1 and 4 Correct Answer: B

88) Which among the following form a type on intellectual property?

1) Trade Secrets
2) Digital Signatures
3) Trademarks
4) Copyrights

Which of the following are correct?

a) 1, 2, 3 and 4
b) 1, 3 and 4
c) 3 and 4
d) 2, 3 and 4 Correct Answer: B

89) Which among the following acts fall under the category of hazard to employee’s safety
and health?
1) Exposure to asbestos
2) Second hand smoke
3) Music at the workplace
4) Obsolete industrial equipment Which of the following are correct?
a) 1 and 2
b) 1, 2 and 3
c) 1, 2, 3 and 4
d) 1, 2 and 4 Correct Answer: D
90) Which of the following statements are true?
a) Morality can be thought of as a especially broad and pervasive form of cooperation
b) Morality can be thought of as an insignificant and obsolete left over of the pre modern
societies
c) Morality can be thought of as the champion of all things good in the world
d) Morality can be thought of a hard science like physics and chemistry. Correct Answer: A
91) Which of the following is true about sexual harassment at workplace as an ethical issue?

1. Harassment is a form of discrimination

2. Harassment is an ethical issue because it unfairly focuses job advancement or retention
on a factor other than the ability to do a job
3. Workplaces in India must under law prepare guidelines to deal with cases of sexual
harassment
4. Sexual Harassment is a political issue Which of the following is correct?

a) 1, 2 and 3
b) 1, 2, 3 and 4
c) 1 and 4
d) 2 and 3 Correct Answer: A

92) Which among the following are correct descriptions for “business ethics”

1) Business ethics is both normative and descriptive

2) Business ethics describes and evaluates individual and corporate behavior and practices
that managers and corporations ought and ought not to engage in
3) Business ethics evaluates role of government, law and public policy in affecting business
4) Business ethics is a meta ethic exercise Which of the following are correct?
a) 1, 2 and 4
b) 1,2 and 3
c) 1, 2, 3 and 4
d) 2, 3 and 4 Correct Answer: B
93) Which among the following are likely to be norms of the scientific research community

1) Communality
2) Organized skepticism
3) Originality
4) Universal application Which of the following is correct?
a) 1, 2, 3 and 4
b) 1, 3 and 4
c) 2, and 3
d) 1, 2 and 3 Correct Answer: A
94) To which type of engineers can code of ethics conceived by professional engineering
societies be of any use?

a) Engineers who are licensed professionals

b) Engineers who belong to professional engineering societies
c) Engineers who are working in a Public Sector Enterprise
d) All those people who engage in engineering practice

Correct Answer: D

95) X has been appointed by the Cyber Security Department of New Delhi to break into the
website of a terrorist organization to extract information – what among the following is a suitable
description of X’s profile?
a) Hactivist
b) Ethical Hacker
c) Troll
d) Black hat Hacker Correct Answer B

96) Which of the following is true about ‘professional ethics’?

1) It borrows its codes and rules from common and universal morality
2) It formulates codes for unique roles played by individuals
3) They deal with ‘special obligations’ as per the duties undertaken by professionals
4) Different professions can have a radically different set of professional ethics Which of
the following are correct?
a) 1, 3 and 4
b) 2, 3 and 4
c) 1 and 4
d) 2 and 3

Correct Answer: B

97) X is a director of a Nationalized Bank in India; the bank has opened up few posts for
recruitment in one of their branches through lateral entry. X recommends the name of his
nephew to the selection board, the selection board members all feel under pressure and influence
of X because of his status in the company. What of the following ethical issues pertain to X’s
behavior in the matter.
a) Conflict of Interest
b) Nepotism
c) Embezzlement
d) Conflict of Competence Correct Answer: B

98) Which of the following statements is true in respect to ‘business ethics’?

a) The common view of business as being amoral and therefore the need for a separate
discourse of “ethics” in which to hold business morally accountable
b) That business by nature is accountable to the institutions of government only and that by
nature covers all forms of accountability, including ethical accountability.
c) That business must be see only as a profit oriented enterprise and business ethics is an
oxymoron
d) That the only way to make up for the ethical lapse in businesses is by imposing higher
taxes on them
Correct Answer: A

99) Which of the following is a correct combination

Type of Ethic Application

1) Micro Ethics A) Applies to microchips and software technologies
2) Meta Ethics B) Deals with abstract philosophical questions pertaining
Ethics
3) Macro Ethics C) Applies to society as a whole
4) Normative Ethics D) Applies to religious order

a) 1 – A; 2 – B; 3 – C; 4 – D
b) 2 - B ; 3 – C
c) 2 – B only
d) 2 – B; 3 – C and 4 - D Correct Answer: B

100) How is technology in need of ethics?

1) Technology can allow human beings to do what they earlier could not do, eg – explode a
nuclear bomb
2) Technology can create new possibilities for collective and institutional arrangements, eg
– Bitcoin can slowly replace fiat currency. Which of the following are correct?
a) 1 only
b) 1 and 2 both
c) 2 only
d) Neither of the above Correct Answer: B

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Business Ethics MCQs | Business Ethics Multiple Choice Questions and Answers
Home/General Knowledge/business ethics multiple choice questions and answers

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

Home/General Knowledge/business ethics short multiple choice questions and answers

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