Ethics in Business

Ethics in Business

by Jennette Reece

Multiple Choice

A financial advisor receives a bonus for selling a certain mutual fund. Her reason for taking this action, which some consider unethical, might be that the action

• benefits the community.

• is acceptable within the industry

• is acceptable in foreign cultures

• is committed by unethical employees

Multiple Choice

Some people believe that business's only true ethical obligation is to:

• contribute to charity

• provide jobs

• protect the environment

• make money

Multiple Choice

A company goes bankrupt because of its unethical accounting practices. The reason for this unethical behavior is that the action is:

• not illegal

• acceptable in a foreign culture

• committed by unethical employees

• acceptable within the industry

Multiple Choice

Which of the following is a potential consequence of poor business ethics:

• Decreased internal problems

• Negative public image

• Increased customer loyalty

• Reduced risk of lawsuits

Multiple Choice

A business with poor ethics is likely to:

• avoid fines

• beat the competition

• decrease its financial risk

• lose customers

Multiple Choice

A business with poor ethics causes internal problems for itself by:

• improving its public image

• increasing customer loyalty

• decreasing productivity

• decreasing financial risk

Multiple Choice

Which of the following is an example of increased financial risk for a company with poor business ehtics:

• Decreased company value

• Increased productivity

• Increased sales

• Decreased labor costs

Multiple Choice

Unethical business practices may lower a company's stock prices because:

• investors prefer companies they perceive to be ethical

• the government fines unethical companies.

• employees resign from unethical companies.

• unethical companies usually go bankrupt.

Multiple Choice

A business suddenly moves its operations to anew town, leaving its current employees jobless. Its reason for taking this action, which some consider unethical, might be that the action:

• benefits the community.

• is not illegal.

• is committed by unethical employees.

• doesn't hurt anyone.

Multiple Choice

A business's ethics determine whether or not an action is acceptable for that business, especially if the action:

• affects the enviornment

• is illegal

• contributes to the business's profitability

• has a negative impact on others

Multiple Choice

Understanding business ethics can be difficult since:

• there are no industry-specific ethical codes.

• it is a relatively new field of study

• many people aren't sure how to behave ethically

• it involves a lot of technical terms.

Multiple Choice

Which of the following is a true statement about business ethics and the law:

• The two are not the same thing, but they do overlap

• Everything that is illegal is also unethical

• Everything that is unethical is also illegal

• The two have nothing to do with each other

Multiple Choice

One difference between business ethics and the law is that business ethics:

• are often unwritten

• must be published

• are enforced by government

• are easy to determine

Multiple Choice

Which of the following is a true statement about breaking the law:

• It is acceptable in most industries

• It is necessary for business success

• It will make a company more popular.

• It may have different consequences than breaching ethics

Multiple Choice

Which of the following is one of the four pillars of a business's social responsibility:

• Political responsibility

• Economic responsibility

• Media responsibility

• Universal responsibility

Multiple Choice

A large tech company donates a portion of its proceeds to charity. This is an example of ____responsibility

• legal

• ethical

• philanthropic

• economic

Multiple Choice

Which of the following is an example of a business's ethical obligation to its stakeholders:

• Sharing trade secrets within its industry

• Doubling investors' money within two years

• Providing safe working environments for employees

• Allowing the competition to succeed

Multiple Choice

Why should a business practice good ethics?

• An unethical business will go bankrupt.

• The government will fine an unethical business.

• An ethical business makes amore money than all its competitors.

• An ethical business contributes toward its own success.

Multiple Choice

Which of the following is a true statement about ethical business practices?

• The do not guarantee positive outcomes

• They are more difficult to undertake than unethical practices

• They are all under government regulation

• The ensure that a business will succeed