1. What is the primary focus of business ethics?
A) Maximizing shareholder profit
B) Adhering to legal requirements
C) Ensuring moral principles guide business decisions
D) Increasing market share
2. Which of the following is a key component of an ethical corporate culture?
A) High employee turnover
B) Transparent communication
C) Aggressive marketing strategies
D) Strict hierarchical structure
3. What is a conflict of interest?
A) A situation where a business fails to meet its financial goals
B) A scenario where personal interests interfere with professional duties
C) A disagreement between two departments in a company
D) A legal dispute between companies
4. What is corporate social responsibility (CSR)?
A) Strategies to increase sales
B) Legal compliance requirements
C) A company’s commitment to ethical practices and community involvement
D) An accounting principle
5. Which of the following best describes whistleblowing?
A) Reporting positive company performance
B) Submitting an anonymous job application
C) Reporting unethical or illegal activities within an organization
D) Negotiating a higher salary
6. What is an ethical dilemma?
A) A legal issue requiring litigation
B) A situation where there is a conflict between two or more moral principles
C) A disagreement over business strategy
D) A financial challenge faced by the company
7. Which of the following is an example of ethical behavior in marketing?
A) Making exaggerated claims about a product
B) Providing truthful and accurate information about a product
C) Using misleading advertisements
D) Engaging in aggressive sales tactics
8. How should a company address unethical behavior reported by employees?
A) Ignore the reports if they seem insignificant
B) Conduct a thorough investigation and take appropriate action
C) Retaliate against the reporting employees
D) Publicly shame the individuals involved
9. What is the purpose of an ethics code in a company?
A) To outline employee benefits
B) To provide guidelines for ethical decision-making and behavior
C) To dictate annual financial targets
D) To define job roles and responsibilities
10. Which of the following is an ethical concern related to environmental sustainability?
A) Increasing production output
B) Reducing waste and minimizing environmental impact
C) Cutting costs by outsourcing manufacturing
D) Expanding business operations to new markets
11. What is a common method for companies to promote ethical behavior among employees?
A) Increasing salaries
B) Implementing an ethics training program
C) Offering bonuses for high sales
D) Providing extended vacation days
12. Which of the following is considered a violation of ethical principles in the workplace?
A) Offering constructive feedback
B) Engaging in discrimination or harassment
C) Encouraging teamwork
D) Providing career development opportunities
13. What role does ethical leadership play in a company?
A) It sets the company’s financial goals
B) It ensures adherence to legal standards
C) It influences the company’s ethical culture and practices
D) It determines marketing strategies
14. What is an example of a conflict of interest in business?
A) A manager approving a vendor contract with a company owned by a relative
B) An employee attending a company-sponsored training session
C) A company engaging in community service
D) A business setting up a new office location
15. How can companies address ethical issues in their supply chains?
A) By ignoring supplier practices
B) By only focusing on cost reduction
C) By monitoring and auditing supplier practices regularly
D) By outsourcing more production to reduce oversight
16. Which of the following is an ethical consideration for executive compensation?
A) Aligning bonuses with company performance and shareholder interests
B) Increasing salaries without performance reviews
C) Setting salaries based on the industry average
D) Offering stock options without performance targets
17. What should a company do if it discovers that one of its products is unsafe?
A) Continue selling the product to avoid financial loss
B) Notify customers, issue a recall, and fix the issue
C) Ignore the issue if there are no immediate complaints
D) Hide the problem until it is resolved internally
18. What is an example of ethical behavior in hiring practices?
A) Hiring based on personal relationships rather than qualifications
B) Implementing a fair and unbiased recruitment process
C) Discriminating against candidates based on age
D) Focusing solely on cost-cutting in the hiring process
19. Which of the following is NOT typically considered an ethical issue in business?
A) Employee theft
B) Insider trading
C) Environmental sustainability
D) Developing new market strategies
20. What should a company do to foster an environment where employees feel comfortable reporting
unethical behavior?
A) Implement a strict hierarchy that discourages open communication
B) Create a confidential whistleblower policy and protect employees from retaliation
C) Ignore minor ethical concerns
D) Penalize employees who report issues
