Business Ethics Quiz | Business Ethics Objective Type Questions and Answers

Questions
21 The hand-of-government refers to the
A Ability Of The Government To Interfere In Business Negotiations
B Role Of Corporations To Be Profitable Within The Law
C Effect Of National Politics On Business Decisions
D Impact Of Changing Government Regulations

Answer: Role Of Corporations To Be Profitable Within The Law
22 An organisation's obligation to act to protect and improve society's welfare as well as its own interests is referred to as
A Organisational Social Responsibility
B Organisational Social Responsiveness
C Corporate Obligation
D Business Ethics

Answer: Organisational Social Responsibility
23 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: Demoral Management
24 Which of the following is not one the underlying principles of the corporate governance Combined Code of Practice?
A Openness
B Integrity
C Accountability
D acceptability

Answer: acceptability
25 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: cannot pay creditors in full after realisation of its assets
26 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: a civil and a criminal offence committed by any employee
27 Disqualification of directors may result from breaches under the
A Sale of Goods Act 1979
B Financial Services Act 1986
C Companies Act 2006 and Insolvency Act 1986
D Health and Safety at Work Act 1974

Answer: Companies Act 2006 and Insolvency Act 1986
28 Directors may not be disqualified for
A continuing to trade when the company is insolvent
B persistent breaches of company legislation
C paying inadequate attention to the company finances
D being convicted of drunken driving

Answer: being convicted of drunken driving
29 Which of the following actions will not help directors to protect themselves from non-compliance with their obligations and responsibilities?
A keeping themselves fully informed about company affairs
B ensuring that regular management accounts are prepared by the company
C seeking professional help
D including a disclaimer clause in their service contracts

Answer: including a disclaimer clause in their service contracts
30 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: Ownership and control is separated
31 Co-ording to Cadbury (2002), corporate governance is an issue of power and:
A Rights
B Accountability
C Profit
D Appropriability

Answer: Accountability
32 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: took every step to minimise the potential loss to creditors
33 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: a duty to propose high dividends for shareholders
34 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 2006
C At The Discretion Of The Shareholders
D To Detect Fraud

Answer: By The Companies Act 2006
35 The view that business exists at society's pleasure and businesses should meet public expectations of social responsibility is the
A iron law of responsibility argument
B enlightened self-interest argument
C capacity argument
D anti-freeloader argument

Answer: enlightened self-interest argument
36 In a ______________ organization, decision making is delegated as far down the chain of command as possible.
A Decentralized
B Creative
C Flexible
D the consolidation of economic and environmental efforts

Answer: Centralized
37 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: Significant financial expenditures
38 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: Are Formal Statements That Describe What An Organization Expects Of Its Employees
39 Which of the following is not a driver of responsible competitiveness?
A Policy drivers
B Development drivers
C Business action
D Social enablers

Answer: Development drivers
40 The ability to interpret and adapt successfully to different national, organizational, and professional cultures is called:
A National Competitiveness
B Global Development
C Cultural Intelligence
D Stakeholder Sensitivity

Answer: Cultural Intelligence