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

Which of the following reasons is applicable for unethical business practices?

  1. Workplace Surveillance

  2. Profit making by the big companies

  3. Redressal of customer's grievances

  4. Administrative corruption
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Ethical behaviour is defined as enterprises adhering to a non-corrupt work or business practice and Corruption is defined as private individuals or enterprises who misuse public resources for private power gains. They do so through abusing public officials whose behaviour deviates from the formal government rules of conduct.

Multiple choice

The four types of social responsibility include:

  1. legal, discretionary, economics, and ethical

  2. ethical, moral, social, and economics

  3. philanthropic, justice, economic, and ethical

  4. legal, moral, ethical, and economics
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Corporate social responsibility is an umbrella term under which the ethical rights and duties existing between companies and society are debated. It includes legal, discretionary, economics, and ethical social responsibility.

Multiple choice

Which of the following is a feature of Business Ethics ?

  1. Business Ethics has a universal application

  2. It is a relative norm and differs from business to business

  3. Business Ethics is based on well accepted moral and social values

  4. All the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

 Business Ethics is an art and science for maintaining harmonious relationship with the society, its various groups and institutions as well as reorganizing the moral responsibility for the rightness and wrongness of business conduct.It is universally accepted principle which ensures the good corporate governance. Every organisation has to adopt business ethics standards which are different from business to business according to their activities. 

Multiple choice

Ethics in production means

  1. It deals with the duties of a company to ensure that products and production processes do not cause harm.

  2. It deals with the moral principles behind the operation and regulation of marketing

  3. It covers those ethical issues arising around the employer-employee relationship, such as the rights and duties owed between employer and employee

  4. All of the above
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Business ethics of production deals with the duties of a company to ensure that products and production processes do not cause harm.

Multiple choice

Which of the following statements is correct about business ethics?

  1. Social responsibility and business ethics are considered different concepts

  2. Making higher profits should be the main objective of a business

  3. A business may sustain only if it cares for society

  4. Companies making ethical investments may not be able to compete
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

A business may sustain only if it cares for society because a business can prosper on the basis of good ethical standards and it helps to retain the business for longer years. Business uses the resources of society, exploits them for earnings, and in turn it should help the society to grow and develop.

Multiple choice

Business ethics are needed to create a faith about the quality, quantity, price etc. of products. The customers have more trust and faith in the businessmen who follow ethical rules. They feel that such businessmen would not cheat them. Which one of the following is appropriate for it?

  1. Sefeguarding consumers’ right

  2. Improve customers’ confidence

  3. Survival of business

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

Business ethics are needed to improve the customers’ confidence about the quality, quantity, price, etc. of the products. The customers have more trust and confidence in the businessmen who follow ethical rules. They feel that such businessmen will not cheat them.

Multiple choice

Which of the following statements is/are correct? a. CSR is viewed as a comprehensive set of policies, practices and programmes that are integrated into all business activities. b. Social responsibility involves complying with the letter as well as the spirit of the law. c. The very concept of social responsibility implies that it is essentially an ethical issue.

  1. Only a

  2. Only b

  3. Only c

  4. Only a and b

  5. Only a and c
Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

This is the correct answer, as both the statements are correct. CSR is viewed as a comprehensive set of policies, practices and programmes that are integrated into all business activities. The very concept of social responsibility implies that it is essentially an ethical issue.

Multiple choice

Which of the following statements is/are incorrect? a. Business functioning is ultimately judged on the basis of their serving social needs. b. Social interest and business interest are not contradictory. c. The earlier approach of Caveat Emptor has changed as a result of labour movements.

  1. Only a

  2. Only b

  3. Only c

  4. Only a and b

  5. Only a and c
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

This is the correct option, as this statement is incorrect. Caveat Emptor means buyer beware and it has now changed due to consumer consciousness, as businesses are now following consumer oriented policies. It is not due to labour movements.

Multiple choice

Which of the following is a responsibility that a business has towards its shareholders?

  1. To provide opportunities for personal growth and development

  2. To provide information about the working of the company

  3. To adopt fair trade policies

  4. To ensure regular supply of goods and services

  5. To follow fair trade practices
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

This is the correct answer. A business owes it to its investors and owners to provide information about the working of the company.

Multiple choice

Taking into consideration the religious sentiments of the public while advertising for a product, comes under which type of social responsibility?

  1. Discretionary responsibility

  2. Responsibility towards shareholders

  3. Responsibility towards workers

  4. Ethical responsibility

  5. Legal responsibility
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

This is the correct answer as ethical responsibility includes the behaviour of the firm that is expected by society, but not codified in law. This is an ethical responsibility, respecting the religious sentiments and dignity of people while advertising for a product. There is an element of voluntary action in performing this responsibility.

Multiple choice

Which of the following statements is/are true? a. Business ethics refer to the socially determined moral principles, which should govern business activities. b. Corporate Governance originated in U.S.A, where Government passed Anti-Trust Act against monopolistic practices. c. Social responsibility of business refers to its obligation, to take those decisions and perform those actions, which are desirable in terms of the objectives and values of our society.

  1. Only a

  2. Only b

  3. Only c

  4. Only a and b

  5. Only a and c
Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

Business ethics refer to the socially determined moral principles, which should govern business activities. Social responsibility of business refers to its obligation, to take those decisions and perform those actions, which are desirable in terms of the objectives and values of our society. Both statements are correct. 

Multiple choice

Which of the following is not an element of business ethics?

  1. Commitment from top management

  2. Publication of an organisational code

  3. Establishment of compliance mechanisms

  4. Involving consumers at all levels

  5. Conducting audits to monitor compliance with ethical standards
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

This is  the correct answer as this is not an element of business ethics. It is the employees at different levels who implement ethics policies to make ethical business a reality. Therefore, their involvement in ethics programmes becomes a must. A business cannot involve the consumers at all levels.

Multiple choice

Which of the following refers to the moral principals or rules of behaviour, which should govern moral conduct of businessmen?

  1. Social responsibility

  2. Legal responsibility

  3. Business ethics

  4. Social standards for business

  5. Labour movement
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

This is the correct answer. The business enterprises are products of and are influenced by society. They have to interpret and adjust to the preferences or values of society. The subject matter of ethics is concerned with establishing linkages and thus business ethics concern themselves with the moral principles or rules of behaviour, which should govern moral conduct of businessmen.