Commerce Accountancy · General Awareness

Business Ethics

815 Questions

Business ethics evaluates moral principles, stakeholder management, and workplace conduct within organizations. Competitive exams test the application of these standards in real scenarios. Understanding these dilemmas builds critical reasoning.

Ethical dilemmas in businessCorporate social responsibilityEngineering and software ethicsStakeholder managementWorkplace conduct standards

Business Ethics Questions

Multiple choice

The rules or principles that define right or wrong conduct are known as

  1. ethics

  2. customer satisfaction

  3. ethical conflict

  4. None of these
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Mackenzie defines ethics as “the study of what is right or good in human conduct” or the “science of the ideal involved in human life”. So, it is clear that ethics is the study which determines rightness or wrongness of actions.

Multiple choice

Distributors need to abide by rules and maintain good conduct towards investors, because

  1. AMFI code of conduct requires them to do so

  2. The AMC they represent requires them to do so

  3. Good conduct means good business for them

  4. For all of the above reasons
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Distributors must adhere to the AMFI code of conduct, meet AMC requirements, and recognize that good conduct builds long-term client relationships. All three factors - regulatory compliance, employer requirements, and business ethics - drive proper conduct.

Multiple choice

Responsibility to ensure ethical behaviour on part of all mutual fund participants finally rests on

  1. Fund trustees

  2. SEBI

  3. AMFI

  4. Distributors
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

While SEBI regulates the industry and AMFI sets guidelines, the ultimate fiduciary responsibility lies with the fund trustees. Trustees oversee the AMC's operations, ensure compliance with SEBI regulations, and protect unit holder interests. They are appointed specifically to monitor ethical conduct and governance. Distributors and AMCs are market participants who must follow rules, but they don't bear the final responsibility - that rests with the independent board of trustees.

Multiple choice

Stakeholders are considered more important to an organisation when

  1. they can make use of their power on the organisation

  2. they do not emphasise the urgency of their issues

  3. their issues are not legitimate

  4. they can express themselves articulately
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

(1) Stakeholders are considered more important to an organisation when they can make use of their power on the organisation.

Multiple choice

What is triple bottom line?

  1. An accounting tool that looks at the impact on people, planet and profits

  2. A management strategy which states all the attention should be on profits

  3. An accounting tool that looks at cost, profit and loss

  4. A management strategy which focusses on corporate social responsibility
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

(1) An accounting tool that looks at the impact on people, planet and profits is called triple bottom line.

Multiple choice

Why do alternative organisations run differently from conventional shareholder led approach?

  1. They do not have shareholders.

  2. They are run in non-hierarchical ways which aim to provide a positive impact on society rather than to make profit.

  3. They prioritise corporate social responsibility.

  4. They aim to give money to charities and good causes.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

(2) Alternative organisations run differently from conventional shareholder led approach to are run in non-hierarchical ways which aim to provide a positive impact on society rather than to make profit.

Multiple choice

A whistle blower is an employee who

  1. exposes organisational wrongdoing

  2. complains a lot to company management

  3. engages in unethical behavior

  4. referees disputes with other employees
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

(1) Whistle blowers are those individuals who call attention to possible wrongdoing within their organizations which are the subjects of much controversy.

Multiple choice

A firm is said to have good corporate social performance when

  1. stockholders invest in socially responsible causes

  2. charitable deductions are automatically deducted from pay without the consent of employees

  3. the company has not been convicted of ethical violations for five consecutive years

  4. stakeholders are satisfied with its level of social responsibility
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

(4) A firm is said to have good corporate social performance when stakeholders are satisfied with its level of social responsibility.

Multiple choice

Find the appropriate word and fill blank (i).

Directions: Complete this passage by selecting the most suitable option for the corresponding gap.

Ethics in the workplace are a set of _____(i)______ consisting of “right conduct” which involves the basic moral values like honesty and _____(ii)______. Some companies may have certain code of _____(iii)______ but in other companies the employees follow what they see those above them do. Ethics are about making choices that may not always feel good, probably because we have to ______(iv)______ by some basic rules and moral values.

  1. restrictions

  2. principles

  3. aims

  4. beliefs
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Ethics in the workplace refers to a framework of moral principles that guide behavior and decision-making. The passage mentions 'right conduct' and 'basic moral values,' which directly corresponds to 'principles' - fundamental rules or beliefs that guide conduct. Principles provide the systematic structure for ethical behavior, whereas restrictions limit actions, aims are goals, and beliefs are general convictions without the guiding structure.