McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) .
| 51. |
Which of the following does the term Corporate Social Responsibility relate to? |
| A. | Ethical conduct |
| B. | Environmental practice |
| C. | Community investment |
| D. | All of the above |
| Answer» D. All of the above | |
| 52. |
Who are organisational stakeholders? |
| A. | Government |
| B. | Employees |
| C. | Customers |
| D. | All of the above |
| Answer» D. All of the above | |
| 53. |
What is Ethics to do with? |
| A. | The wider community |
| B. | Business |
| C. | Right and wrong |
| D. | Nothing |
| Answer» C. Right and wrong | |
| 54. |
Which of the following is an example of an area where business ethics apply? |
| A. | Conduct of international operation |
| B. | Nowhere |
| C. | In the personal life of staff |
| D. | None of the above |
| Answer» A. Conduct of international operation | |
| 55. |
Which legislation relates to the concept of business ethics? |
| A. | Freedom of Information Act |
| B. | Food Act |
| C. | Building regulations |
| D. | All of these |
| Answer» A. Freedom of Information Act | |
| 56. |
The four types of social responsibility include: |
| A. | legal, philanthropic, economic, and ethical |
| B. | ethical, moral, social, and economic |
| C. | philanthropic, justice, economic, and ethical |
| D. | legal, moral, ethical, and economic |
| Answer» A. legal, philanthropic, economic, and ethical | |
| 57. |
The dimension of social responsibility refers to a business's societal contribution of time, money, and other resources. |
| A. | Ethical |
| B. | Philanthropic |
| C. | Volunteerism |
| D. | Strategic |
| Answer» B. Philanthropic | |
| 58. |
Stakeholders are considered more important to an organization when: |
| A. | they can make use of their power on the organization |
| B. | they do not emphasize the urgency of their issues |
| C. | their issues are not legitimate |
| D. | they can express themselves articulately |
| Answer» A. they can make use of their power on the organization | |
| 59. |
A is a problem, situation, or opportunity requiring an individual, group, or organization to choose among several actions that must be evaluated as right or wrong. |
| A. | Crisi |
| B. | ethical issue |
| C. | indictment |
| D. | fraud |
| Answer» B. ethical issue | |
| 60. |
Which moral philosophy seeks the greatest good for the greatest number of people? |
| A. | Consequentialism |
| B. | Utilitarianism |
| C. | Egoism |
| D. | Ethical formalism |
| Answer» B. Utilitarianism | |
| 61. |
What type of justice exists if employees are being open, honest, and truthful in their communications at work? |
| A. | Procedural |
| B. | Distributive |
| C. | Ethical |
| D. | Interactional |
| Answer» D. Interactional | |
| 62. |
A high-commitment approach to environmental issues may include all of the following except: |
| A. | risk analysi |
| B. | stakeholder analysis |
| C. | green-washing |
| D. | strategic sustainability auditing |
| Answer» C. green-washing | |
| 63. |
Better access to certain markets, differentiation of products, and the sale of pollution-control technology are ways in which better environmental performance can: |
| A. | increase revenue |
| B. | increase costs |
| C. | decrease revenue |
| D. | decrease costs |
| Answer» A. increase revenue | |
| 64. |
Most companies begin the process of establishing organizational ethics programs by developing: |
| A. | ethics training programs. |
| B. | codes of conduct. |
| C. | ethics enforcement mechanisms. |
| D. | hidden agendas. |
| Answer» B. codes of conduct. | |
| 65. |
When a firm charges different prices to different groups of customers, it may be accused of: |
| A. | cultural relativism |
| B. | money laundering |
| C. | facilitating payments |
| D. | price discrimination |
| Answer» A. cultural relativism | |
| 66. |
The social economy partnership philosophy emphasizes: |
| A. | cooperation and assistance. |
| B. | profit maximization. |
| C. | competition. |
| D. | restricting resources and support. |
| Answer» A. cooperation and assistance. | |
| 67. |
Which of the following is not a driver of responsible competitiveness? |
| A. | Policy driver |
| B. | Development drivers |
| C. | Business action |
| D. | Social enablers |
| Answer» B. Development drivers | |
| 68. |
Which of the following is a problem presented by ethics audits? |
| A. | They may be used to reallocate resources. |
| B. | They identify practices that need improvement. |
| C. | Selecting auditors may be difficult. |
| D. | They may pinpoint problems with stakeholder relationships. |
| Answer» C. Selecting auditors may be difficult. | |
| 69. |
The first step in the auditing process should be to secure the commitment of: |
| A. | employees. |
| B. | top executives and directors. |
| C. | stockholders. |
| D. | customers. |
| Answer» B. top executives and directors. | |
| 70. |
Codes of conduct and codes of ethics |
| A. | are formal statements that describe what an organization expects of its employees. |
| B. | become necessary only after a company has been in legal trouble. |
| C. | are designed for top executives and managers, not regular employees. |
| D. | rarely become an effective component of the ethics and compliance program. |
| Answer» A. are formal statements that describe what an organization expects of its employees. | |
| 71. |
Which of the following is NOT one of the primary elements of a strong organizational compliance program? |
| A. | A written code of conduct |
| B. | An ethics officer |
| C. | Significant financial expenditures |
| D. | A formal ethics training program |
| Answer» C. Significant financial expenditures | |
| 72. |
are standards of behaviour that groups expect of their members. |
| A. | Codes of conduct. |
| B. | Group values. |
| C. | Group norms. |
| D. | Organizational norms. |
| Answer» C. Group norms. | |
| 73. |
In a organization, decision making is delegated as far down the chain of command as possible. |
| A. | Decentralized |
| B. | Creative |
| C. | Flexible |
| D. | Centralized |
| Answer» D. Centralized | |
| 74. |
Managerial ethics can be characterised by all of the following levels except |
| A. | immoral management |
| B. | amoral management |
| C. | demoral management |
| D. | moral management |
| Answer» C. demoral management | |
| 75. |
External audit of the accounts of a limited company is required |
| A. | because it is demanded by the company’s bankers |
| B. | by the Companies Act 2013 |
| C. | at the discretion of the shareholders |
| D. | to detect fraud |
| Answer» B. by the Companies Act 2013 | |
| 76. |
Directors’ responsibilities are unlikely to include. |
| A. | a fiduciary duty |
| B. | a duty to keep proper accounting records |
| C. | a duty to propose high dividends for shareholders |
| D. | a duty of care |
| Answer» C. a duty to propose high dividends for shareholders | |
| 77. |
A company may become insolvent if it |
| A. | has negative working capital |
| B. | cannot meet its budgeted level of profit |
| C. | makes a loss |
| D. | cannot pay creditors in full after realisation of its assets |
| Answer» D. cannot pay creditors in full after realisation of its assets | |
| 78. |
A director of a limited company may not be liable for wrongful trading if he or she |
| A. | took every step to minimise the potential loss to creditors |
| B. | increased the valuation of its inventories to cover any potential shortfall |
| C. | introduced into the balance sheet an asset based on a valuation of its brands sufficient to meet any shortfall |
| D. | brought in some expected sales from next year into the current year |
| Answer» A. took every step to minimise the potential loss to creditors | |
| 79. |
Fraudulent trading may be |
| A. | a civil offence committed by any employee |
| B. | a criminal offence committed only by directors of a limited company |
| C. | a civil and a criminal offence committed only by directors of a limited company |
| D. | a civil and a criminal offence committed by any employee |
| Answer» D. a civil and a criminal offence committed by any employee | |
| 80. |
The OECD argues that corporate governance problems arise because: |
| A. | Ownership and control is separated |
| B. | Managers always act in their own self interest |
| C. | Profit maximization is the main objective of organizations |
| D. | Stakeholders have differing levels of power |
| Answer» A. Ownership and control is separated | |
| 81. |
An organization that is owned by shareholders but managed by agents on their behalf is conventionally known as the modern: |
| A. | Conglomerate |
| B. | Corporation |
| C. | Company |
| D. | Firm |
| Answer» B. Corporation | |
| 82. |
The modern corporation has four characteristics. These are limited liability, legal personality, centralized management and: |
| A. | Fiduciary duty |
| B. | Stakeholders |
| C. | Shareholders |
| D. | Transferability |
| Answer» D. Transferability | |
| 83. |
What makes a corporation distinct from a partnership? |
| A. | If the members of a corporation die, the corporation remains in existence providing it has capital |
| B. | If the members of a corporation die, the corporation ceases to exist |
| C. | A corporation cannot own property |
| D. | A corporation cannot be held responsible for the illegal acts of its employees |
| Answer» A. If the members of a corporation die, the corporation remains in existence providing it has capital | |
| 84. |
The term 'asymmetry of information' means information in a corporation is: |
| A. | Transferable to all stakeholder |
| B. | Not transferable to all stakeholders |
| C. | Not equally transparent to all stakeholders |
| D. | Equally transparent to all stakeholders |
| Answer» C. Not equally transparent to all stakeholders | |
| 85. |
The view that sees profit maximization as the main objective is known as: |
| A. | Shareholder theory |
| B. | Principal-agent problem |
| C. | Stakeholder theory |
| D. | Corporation theory |
| Answer» C. Stakeholder theory | |
| 86. |
Where an organization takes into account the effect its strategic decisions have on society, this is known as: |
| A. | Corporate governance |
| B. | Business policy |
| C. | Business ethics |
| D. | Corporate social responsibility |
| Answer» D. Corporate social responsibility | |
| 87. |
Which intervention resulted from the Enron scandal? |
| A. | The Hampel Committee |
| B. | The Sarbannes-Oxley Act |
| C. | The Greenbury Committee |
| D. | The Cadbury Committee |
| Answer» B. The Sarbannes-Oxley Act | |
| 88. |
Periodic ethics audits |
| A. | Are required by the Indian stock exchange |
| B. | A method of fostering ethics |
| C. | A method of quantitative assessment |
| D. | Always use external consultants |
| Answer» B. A method of fostering ethics | |
| 89. |
Political intrusion into business |
| A. | May be desirable in some circumstances |
| B. | Is anathema |
| C. | Politics should have no say in how business is conducted |
| D. | state legislation over-rides Federal Legislation |
| Answer» A. May be desirable in some circumstances | |
| 90. |
Quantification in ethics may be done by |
| A. | Putting monetary value on prospective actions |
| B. | Comparing the value of one action with another |
| C. | Both A and B |
| D. | Neither A or B |
| Answer» C. Both A and B | |
| 91. |
The approach to formal corporate ethics initiatives is proactive and inspirational. |
| A. | Rule |
| B. | Compliance |
| C. | Principles |
| D. | Values |
| Answer» D. Values | |
| 92. |
The approach to formal corporate ethics initiatives focuses on meeting required behaviour norms or obeying the letter of the law |
| A. | Rule |
| B. | Compliance |
| C. | Principles |
| D. | Values |
| Answer» B. Compliance | |
| 93. |
Which of the following is associated with the classical view of social responsibility? |
| A. | economist Robert Reich |
| B. | concern for social welfare |
| C. | stockholder financial return |
| D. | voluntary activities |
| Answer» C. stockholder financial return | |
| 94. |
How many stages are in the model of an organization social responsibility progression? |
| A. | 3 |
| B. | 4 |
| C. | 5 |
| D. | 6 |
| Answer» B. 4 | |
| 95. |
The belief that a firm pursuit of social goals would give them too much power is known as what argument in opposition to a firm being socially responsible? |
| A. | Cost |
| B. | lack of skills |
| C. | lack of broad public support |
| D. | too much power |
| Answer» D. too much power | |
| 96. |
Social responsiveness refers to the capacity of a firm to adapt to changing . |
| A. | societal condition |
| B. | organizational conditions |
| C. | societal leaders |
| D. | organizational managers |
| Answer» A. societal condition | |
| 97. |
Applying social criteria to an investment decision refers to . |
| A. | socioeconomic view |
| B. | social responsiveness |
| C. | social responsibility |
| D. | social screening |
| Answer» D. social screening | |
| 98. |
Which of the following is a basic definition of ethics? |
| A. | moral guidelines for behaviour |
| B. | rules for acknowledging the spirit of the law |
| C. | rules or principles that define right and wrong conduct |
| D. | principles for legal and moral development |
| Answer» C. rules or principles that define right and wrong conduct | |
| 99. |
Global organizations must their ethical guidelines so that employees know what is expected of them while working in a foreign location |
| A. | Clarify |
| B. | Provide |
| C. | Establish |
| D. | broaden |
| Answer» A. Clarify | |
| 100. |
is a document that outlines principles for doing business globally in the areas of human rights, labour, the environment, and anticorruption. |
| A. | A code of ethic |
| B. | The Global Compact |
| C. | The Foreign Corrupt Practices Act |
| D. | Global Ethics |
| Answer» B. The Global Compact | |
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