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Quiz - Business Ethics


1. A lady is trapped in a burning house. When an individual wants to save the lady, he is stopped by other people because he may lose his life attempting to save the lady. These people are following the theory of

a) Egoism
b) Utilitarianism
c) Altruism
d) Virtue ethics
Wrong! Try again.
Wrong! The correct answer is " Egoism "
Correct! " Egoism "

2. Which of the following aspects of an organization helps in building an ethical organization?

  i. The organization's values
  ii. The organization's mission
  iii. Its policies
  iv. Responsibility towards environment

a) Only i
b) ii and iii
c) i, ii and iii
d) All the above

Wrong! Try again.

Wrong! The correct answer is " i, ii and iii "

Correct! " i, ii and iii "


3. Which of the following groups did the Kumaramangalam Birla Committee recommend for deciding a fair remuneration package for the CEO and the executive directors?
a) Boards of directors
b) Remuneration committee
c) Chairman and CEO
d) Stakeholders

Wrong! Try again.

Wrong! The correct answer is " Remuneration committee "

Correct! " Remuneration committee "


4. One of the major ethical dilemma faced by operations managers in the present scenario is
a) Forecasting the future
b) Achieving daily targets in production
c) Quality control
d) Updating to technology innovations

Wrong! Try again.

Wrong! The correct answer is " Quality control "

Correct! " Quality control "


5. According to the principle of ethical remuneration, in which of the following situations can seniority and loyalty be considered as factors in determining rewards?

  i. When their contribution increases owner value
  ii. When senior employees are loyal to the organization
  iii. When seniors employees have considerable experience
  iv. When senior employees forego rewards during a financial crunch

a) i & iii
b) ii & iii
c) i & iv
d) ii & iv

Wrong! Try again.

Wrong! The correct answer is " i & iv "

Correct! " i & iv "


6. The bidding technique (in a takeover) in which the first 51% of the shareholders who tender their shares for a premium over the prevailing market price and the remaining 49% receive only promissory notes for the tender amount is referred to as a
a) Management buyout
b) Two-tier tender office
c) Management buy-in
d) Greenmail

Wrong! Try again.

Wrong! The correct answer is " Two-tier tender office "

Correct! " Two-tier tender office "


7. In which of the following countries is bribery considered unethical and illegal under the Foreign Corruption Practices Act (FCPA)?
a) Japan
b) China
c) America
d) Germany

Wrong! Try again.

Wrong! The correct answer is " America "

Correct! " America "


8. Which of the following theories supports a contract under which one or more persons engage another person to perform a service on their behalf?
a) Stewardship theory
b) Agency theory
c) Mc Gregor's theory Y
d) Mc Gregor's theory X

Wrong! Try again.

Wrong! The correct answer is " Agency theory "

Correct! " Agency theory "


9. Which of the following is a feature of the German model of corporate governance?

a) Shareholders role being performed by elected Board of Directors
b) High rate of worker participation in the governance mechanism
c) Crucial role of financial institutions in governance mechanism
d) Representatives of shareholders and employees participate in the governance mechanism

Wrong! Try again.

Wrong! The correct answer is " High rate of worker participation in the governance mechanism "

Correct! " High rate of worker participation in the governance mechanism "


10. According to companies act which of the following factor (s) can board of directors can be held liable for?

a) Misrepresentation in offer documents
b) When funds of investors are not repayed by due date
c) When laws are contravened
d) All the above

Wrong! Try again.

Wrong! The correct answer is " When laws are contravened "

Correct! " When laws are contravened "


11. Right, equitable, good, proper, fair and just are the key aspects of:
a) Ethical decisions taken in overt ethical situations
b) Ethical decisions taken in covert ethical situations
c) Ideal decision virtues
d) Business Ethics

Wrong! Try again.
Wrong! The correct answer is " Ideal decision virtues "

Correct! " Ideal decision virtues "


12. Which of the following statements best explains the difference between ethics and morality?
a) Ethics refers to standards of behavior whereas morality refers to system of beliefs
b) Ethics refer to system of beliefs whereas morality refers to standards of behavior
c) Morality refers to the interrelated beliefs than an single opinion as considered in ethics
d) Morality encompasses the system of beliefs

Wrong! Try again.

Wrong! The correct answer is " Ethics refer to system of beliefs whereas morality refers to standards of behavior "

Correct! " Ethics refer to system of beliefs whereas morality refers to standards of behavior "


13. Which of the following organizations closed its old units to prevent pollution?
a) ABB
b) ICI India
c) Tata Iron and steel
d) Indian Aluminum company

Wrong! Try again.

Wrong! The correct answer is " Tata Iron and steel "

Correct! " Tata Iron and steel "


14. Who among the following decides the remuneration of a CEO in an organization?
a) Shareholders
b) Board of directors
c) Chairman
d) Government

Wrong! Try again.

Wrong! The correct answer is " Board of directors "

Correct! " Board of directors "


15. To improve sales, NewIndia marketed its new fax machines as machines which just took five seconds to transmit the documents, but in reality, they took ten seconds to transmit the documents. The marketing manager was in a great dilemma as to why the firm did not have
a) An ethical compliance program
b) A social responsibility initiative
c) Personal ethics training
d) A commitment to marketing

Wrong! Try again.

Wrong! The correct answer is " An ethical compliance program "

Correct! " An ethical compliance program "


16. The main objective of National Institute of Occupational Safety and Health (NIOSH) which administers the Occupational Safety and Health Act (OSHA) is to
a) Ensure lawful, safe and healthy operations in coal mines
b) Ensure a healthy and safe work environment in the US industries
c) Ensure a safe work environment in the toy industry all over the world
d) Counsel and facilitate rehabilitation of employees who are addicted to drugs and alcohol

Wrong! Try again.

Wrong! The correct answer is " Ensure a healthy and safe work environment in the US industries "

Correct! " Ensure a healthy and safe work environment in the US industries "


17. Which of the following unethical acts can be associated with the purchasing function?
a) Deception
b) Bribery
c) Price rigging
d) All the above

Wrong! Try again.

Wrong! The correct answer is " All the above "

Correct! " All the above "


18. An MNC recruits people from its home country for the top posts in its establishment in a foreign country and pays lower salaries to employees who belong to the host country. How would you describe these unethical practices?

  i. Exploitation of host country labor
  ii. Use of expatriate staff for all significant managerial positions
  iii. Failure to implement equal opportunities in the workplace
  iv. Violation of government rules

a) i and ii
b) i and iv
c) i, ii and iii
d) ii, iii and iv

Wrong! Try again.

Wrong! The correct answer is " i and ii "

Correct! " i and ii "


19. Which of the following companies has very strict safety and employment standards for its overseas operations?
a) Levi Strauss
b) Nike
c) Body Shop
d) Hindustan Lever

Wrong! Try again.

Wrong! The correct answer is " Levi Strauss "

Correct! " Levi Strauss "


20. The Cadbury Committee was set up to address the

a) Issue of good corporate governance
b) Financial aspects of corporate governance
c) Problem of deteriorating of values
d) Mal practices in the corporate world


Wrong! Try again.

Wrong! The correct answer is " Financial aspects of corporate governance "

Correct! " Financial aspects of corporate governance "


21. An individual from South America believes that it is morally acceptable to pay small bribes to the customs officer to obtain quick clearance of imports. But an individual from the United States finds this practice to be morally unacceptable. This is an example of

a) Ethical subjectivism
b) Ethical relativism
c) Consequentialism
d) Normative ethics

Wrong! Try again.
Wrong! The correct answer is " Ethical subjectivism "
Correct!
" Ethical subjectivism "

22. Dependability, predictability and faith are the three elements that constitute
a) Values
b) Moral principles
c) Trust
d) Justice

Wrong! Try again.

Wrong! The correct answer is " Trust "

Correct! " Trust "


23. To which of the following do a company's statements, credos and code of ethics relate?
a) Values in practice
b) Espoused values
c) Mission of the organization
d) Vision of the organization

Wrong! Try again.

Wrong! The correct answer is " Espoused values "

Correct! " Espoused values "


24. Which of the following terms refers to the policy statements that define a company's ethical standards?
a) Corporate credo
b) Corporate values
c) Corporate code
d) Corporate governance

Wrong! Try again.

Wrong! The correct answer is " Corporate code "

Correct! " Corporate code "


25. A fundamental norm or absolute belief which is accepted by an individual determines an individuals
a) Belief
b) Moral standard
c) Ethical stance
d) None of the above

Wrong! Try again.

Wrong! The correct answer is " Moral standard "

Correct! " Moral standard "


 

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