Business Ethics Quiz

What is the primary responsibility of business according to Peter Drucker?

• To maximize profits

• To satisfy customer needs

• To eliminate competition

• To reduce costs

Which of the following is NOT a myth about business ethics?

• Ethics and business do not mix

• Good business means good ethics

• Ethics is a personal affair

• Profit is the only motive

What does moral reasoning in business provide?

• A framework for legal compliance

• A framework for resolving moral issues

• A strategy for market dominance

• A method for maximizing profits

According to the text, what is a common misconception about legality and morality?

• All legal actions are moral

• All moral actions are legal

• What is legal may not necessarily be moral

• Morality is defined by law

What is one of the characteristics of a good moral standard?

• It is flexible

• It is based on personal beliefs

• It is universally accepted

• It is subjective

What does the study of Business Ethics enhance in managers?

• Technical skills

• Market analysis

• Human and interpersonal skills

• Financial acumen

Which of the following is a reason why people go into business?

• To serve society

• To avoid responsibility

• To evade taxes

• To create monopolies

What does Milton Friedman argue about the responsibility of business?

• To prioritize social welfare

• To make profit within the rules of the game

• To engage in community service

• To minimize environmental impact

What is one of the bad sides of profit-motive mentioned in the text?

• It can lead to unethical practices

• It encourages healthy competition

• It increases productivity

• It promotes innovation

What is the essence of studying Business Ethics?

• To enhance competitive advantage

• To provide a framework for moral issues

• To reduce operational costs

• To maximize shareholder value