Business Ethics Pretest

You’re facing a tough situation and need to make the right decision. What can you use to guide you?

• Your personal code of ethics

• Social responsibility

• Another business’s ethics

• The Sarbanes-Oxley Act

Both personal and business ethics begin with

• ethical principles.

• legal requirements.

• community responsibilities.

• investor needs.

A business that focuses on making money is mainly concerned with what type of social responsibility?

• Economic

• Philanthropic

• Legal

• Ethical

Businesses are specifically obligated to

• stakeholders.

• themselves only.

• no one.

• their competitors.

What is most likely to occur when a business exhibits ethical behavior by being fair and honest?

• Goodwill

• Innovation

• Accountability

• Persistence

Businesses should practice good ethics because it

• is the right thing to do.

• guarantees a positive outcome.

• decreases sales.

• leads to monetary rewards.

A business moves its facilities overseas to take advantage of lower taxes and labor costs. Many former employees say that this is unethical, but the business defends itself by saying that the action is

• not illegal.

• committed by unethical employees.

• acceptable within the industry.

• good for employees.

A business goes bankrupt because its president steals a large amount of money from investors. What is the reason this unethical behavior occurred?

• The action is committed by unethical employees.

• The action is acceptable in a foreign culture.

• The action benefits the company.

• The action is not illegal.

A company that behaves unethically might face which of the following consequences:

• Potential jail time

• Decreased internal problems

• Positive public image

• Decreased competition

Unethical business practices often result in

• decreased customer retention and increased financial risk.

• increased customer retention and decreased financial risk.

• decreased internal problems and increased financial risk.

• increased customer retention and decreased internal problems.