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Ethics in Islamic Finance

Total questions: 10

Worksheet time: 6mins

Name
Class
Date
1.

Which is the correct definition of ethics?

a)

a set of moral principles that distinguish what is “right from what is wrong”.

b)

a set of moral principles that distinguish what is “wrong from what is right”.

c)

a set of immoral principles that distinguish what is “right from what is wrong”.

d)

•a set of immoral principles that distinguish what is “wrong from what is right”.

2.

Ethical norms include the following EXCEPT

a)

LAW

b)

MORAL

c)

ETHICS

d)

ACTION

3.

There are three (3) broad factors that will affect the way the individuals carry themselves in their business lives EXCEPT: 

a)

Individual factors

b)

Legal interpretations

c)

Organisations

d)

Monetory

4.

Ethics are important in financial sectors

a)

Maintaining good corporate governance such as good Board practice, disclosure and transparency and maintaining shareholders' rights.

b)

If the company’s reputation is perceived to be less ethical, investors are interested to buy or hold shares in the company

c)

Ethical behaviour is crucial to maintaining a positive corporate image in the public's eyes, in turn, will attract new investors.

5.

Related Concepts of Akhlaq

a)

Relationship between Outer Self (Physical Body) and Inner Self (Soul)

b)

Relationship between Outer Self (Physical Body) and Other people

c)

Relationship between Outer Self (Physical Body) and Action

6.

Which of the following statements best explained Ihsan

a)

Ihsan denotes doing things sincerely, completely, in a tasteful manner and correctly.

b)

Ihsan denotes doing things easily, completely, in a tasteful manner and correctly.

c)

Ihsan denotes doing things sincerely, completely, in a tasteful manner and based on owns thought.

7.

Akhlaq Guidelines In Business 

a)

Fraud and deceit

b)

Monopoly

c)

Keep the promise

d)

No False Promises / Claims

8.

Among the key issues in corporate governance are EXCEPT

a)

the roles and responsibilities of the Board of Directors

b)

the effectiveness of the company’s systems of internal control and risk management

c)

Transparency and provision of information to stakeholders

d)

the structure and composition of the stakeholders

9.

Bank Negara Malaysia (BNM) Guidelines on Corporate Governance mentioned that

a)

Directors should abstain from any discussions or decision making by the Board, where a conflict of interest or potential conflict of interest arises

b)

Directors should involve in the discussions or decision making by the Board, where a conflict of interest or potential conflict of interest arises

10.

Fair debt collection practices are

a)

resorting to intimidation or violence

b)

giving their borrowers written notice

c)

not adhering to relevant information and secrecy provisions

d)

ensuring that customer information provided to debt collectors is clear and accurate