WorksheetsGovernance and business ethics
Total questions: 9
Worksheet time: 14mins
What is business ethics?
A system that teaches business people how to create profitable companies with limited resources
A system of moral principles to guide people on how to behave formally in business meetings and related events
It is the study of ethical principles and moral/ethical problems that arise in a business environment
What is the difference between shareholders and stakeholders?
A shareholder is anybody who can affect or is affected by an organisation. A stakeholder owns part of a public company through shares of stock.
A shareholder owns part of a public company through shares of stock. A stakeholder is anybody who can affect or is affected by an organisation
According to Milton Friedman, what is the social responsibility of business?
to increase its profits so long as it stays within the rules of the game
to have fair labour practices in line with the community and region where the business operates
to have a sense of responsibility towards the community and environment where the business operates
What is corporate social responsibility?
The maximization of profits and return a portion of those profits to shareholders as a reward for the risk they took in investing in the firm
A company's sense of responsibility towards the community and environment (both ecological and social) in which it operates
A system of governmental regulations to make corporations comply to the legal rules of the country where they are based
What is the difference between a code of ethics and a code of conduct?
There is no difference
The code of ethics outlines specific behaviors that are required or prohibited as a condition of ongoing employment. The code of conduct is wide-ranging and non-specific designed to provide a set of values.
The code of ethics is wide-ranging and non-specific designed to provide a set of values. The code of conduct outlines specific behaviors that are required or prohibited as a condition of ongoing employment.
What is a Ponzi Scheme?
is a legitimate investment where the board members in a company are aligned with the managers looking to attract new investors
is a type of financial operation to transfer resources from external sources into domestic companies looking to finance current expenses
is a fraudulent investment operation where the operator generates returns for older investors through revenue paid by new investors
What is "insider trading"?
the activity of person trading inside the company
trading information with others to one's own advantage through having access to confidential information.
trading information to make the company look good with all the stakeholders
What is "money laundering"?
creating the appearance that profits (obtained illegally) are "legitimate" assets
the act of putting money into a washing machine to remove stains and disinfect currency/notes
buying stocks of a company whose main activity is cleaning or laundering luxury clothes
According to G. Hofstede what are the cultural dimensions that make the business environment so different around the world?
Greed; Happiness; Hate; and Love
Power; Experience; Commitment; Hard-working attitude; Interpersonal trust; Political hierarchy; and Freedom
Power distance; Individualism vs. collectivism; Uncertainty avoidance; and Masculinity vs. femininity
Business ethics; and Freedom
