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Business Ethics MCQ with Answers
1. A stakeholder orientation includes all of the following activities except:
A. Generating data about stakeholder groups
B. Assessing the firm’s effects on stakeholder groups
C. Distributing stakeholder information throughout the firm
D. Minimizing the influence of stakeholder information on the firm
Answer: Minimizing the influence of stakeholder information on the firm
2. 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: they can make use of their power on the organization
3. A (n) ________ 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. Crisis
B. ethical issue
C. indictment
D. fraud
Answer: ethical issue
4. 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: Interactional
5. A high-commitment approach to environmental issues may include all of the following except:
A. risk analysis
B. stakeholder analysis
C. green-washing
D. strategic sustainability auditing
Answer: green-washing
6. 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: increase revenue
7. Atmospheric issues include all of the following except:
A. acid rain
B. global warming
C. air pollution
D. water quantity
Answer: water quantity
8. To be successful, business ethics training programs need to:
A. focus on personal opinions of employees.
B. be limited to upper executives.
C. educate employees on formal ethical frameworks and models of ethical decision making.
D. promote the use of emotions in making tough ethical decisions.
Answer: educate employees on formal ethical frameworks and models of ethical decision making
9. 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: codes of conduct
10. For referent power to be effective, what must exist between individuals in the relationship?
A. Antipathy
B. Rivalry
C. History
D. Empathy
Answer: Empathy
11. 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: cultural relativism
12. 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
13. Successful global initiatives addressing standards for business must begin and end with:
A. the role of corporate governance and shareholder power in corporate decision making.
B. social activism
C. the implementation of standardized ethics programs.
D. the consolidation of economic and environmental efforts.
Answer: the role of corporate governance and shareholder power in corporate decision making
14. The social economy partnership philosophy emphasizes:
A. cooperation and assistance.
B. profit maximization.
C. competition.
D. restricting resources and support.
Answer: cooperation and assistance
15. 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
16. 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: Selecting auditors may be difficult
17. 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: top executives and directors
18. 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
19. 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
20. 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
21. An organisation’s obligation to act to protect and improve society’s welfare as well as its own interests is referred to as
A. organizational social responsibility
B. organizational social responsiveness
C. corporate obligation
D. business ethics
Answer: organizational social responsibility
22. 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
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. External audit of the accounts of a limited company is required
A. Because it is demanded by the company’s bankers
B. By the company act 2006
C. At the discretion of the shareholders
D. To detect fraud
Answer: By the company act 2006
26. …………are the principles, which govern and guide business people to perform business functions
a. business ethics
b. code of conduct
c. all of these
d. none
Answer: business ethics
27. ………..school of thought has developed on the idea that there is no single best method to find solutions to managerial problems
a. empirical
b. management science
c. contingency
d. operational
Answer: contingency
28. Koontz and O’Donnel are advocates of ………….approach to management
a. empirical
b. management science
c. contingency
d. operational
Answer: operational
29. ………….approach attempts to understand managerial problems and to provide suitable solutions by the application of scientific methodology
a. empirical
b. management science
c. contingency
d. operational
Answer: management science
30. The advocates of …………..approach view management as the direction of the activities of a group of people towards the accomplishment of common Objectives
a. empirical
b. management science
c. contingency
d. human behavior
Answer: human behavior
31. The book “Practice of Management was written by …………
a. henry fayol
b. f.w.taylor
c. c.k. prahlad
d. peter f. drucker
Answer: peter f. drucker
32. …………………believed that leaders are not born but also developed through proper training in human behavior.
a. mary parker follet
b. f.w.taylor
c. c.k. prahlad
d. peter f. drucker
Answer: mary parker follet
33. The concept of Job enrichment is a contribution by……..
a. frederick herzberg
b. f.w.taylor
c. c.k. prahlad
d. peter f. drucker
Answer: frederick herzberg
34. MBO stands for?
a. management of business objectives
b. management by objectives
c. managing business operations
d. none of these
Answer: management by objectives
35. ——– is the process of selecting one best alternatives from different alternatives.
a. planning
b. organizing
c. decision making
d. forecasting
Answer: decision making
36. ——– is the process of identifying and grouping of work to be performed
a. organizing
b. staffing
c. division of labour
d. planning
Answer: organizing
37. ——– is a sequence of activities to be undertaken for implementing the policies and achieving the objectives of an enterprise.
a. procedures
b. programme
c. rule
d. plans
Answer: programme
38. ——– is an organizational structure which clearly defines duties, responsibilities, and authority.
a. formal
b. informal
c. natural
d. none of these
Answer: formal
39. ——–organisation arises voluntarily or due to social interaction of people
a. formal
b. informal
c. line organization
d. all of these
Answer: informal
40. A superior cannot delegate
a. authority
b. responsibility
c. duty
d. none of these
Answer: responsibility
41. If the orders instructions or directions are delegated to a particular person, then it is known as
a. general delegation
b. specific delegation
c. written delegation
d. informal delegation
Answer: specific delegation
42. ——— are certain assumptions about the future on the basis of which the plan will be formulated
a. programs
b. planning premises
c. planning issues
d. procedures
Answer: planning premises
43. ———– refers to the maximum number of subordinates a superior can effectively manage?
a. scalar chain
b. unity of direction
c. accountability
d. span of control
Answer: span of control
44. ———– is the obligation of a subordinate to perform the duty assigned by his superior
a. authority
b. responsibility
c. division of labour
d. accountability
Answer: responsibility
45. Military type of organization is also called
a. informal organization
b. line organization
c. line & staff
d. functional
Answer: line organization
46. Decentralization is
a. compulsory
b. optional
c. none of these
d. none of these
Answer: optional
47. ———- is a detailed and systematic study of jobs to know the nature and characteristics.
a. man power planning
b. job analysis
c. staffing
d. all of these
Answer: job analysis
48. ———-is a statement showing the minimum acceptable qualities of the persons to be placed on a Job.
a. job analysis
b. job description
c. job specifications
d. staffing
Answer: job specifications
49. ————is the process of searching for prospective employees and stimulating them to apply for the Job.
a. selection
b. training
c. recruitment
d. induction
Answer: recruitment
50. ———- is considered as a negative function of management.
a. selection
b. recruitment
c. training
d. placement
Answer: selection
51. ——— refers to co-ordination between activities of a manager and his subordinates.
a. vertical co-ordination
b. horizontal co-ordinaiton
c. diagonal co-ordination
d. none
Answer: vertical co-ordination
52. ———— aims at visualizing and identifying deviation before they actually occur.
a. predictive control
b. concurrent control
c. operational control
d. all of these
Answer: predictive control
53. If duties and authority are shown in the organizational structure of the enterprise, then it is called
a. informal delegation
b. formal delegation
c. written delegation
d. none of these
Answer: formal delegation
54. ———–is an example of internal source of recruitment
a. advertisement
b. trade unions
c. employment exchange
d. promotion
Answer: promotion
55. ——– is the process of inducting an employee into the social set up of work.
a. placement
b. induction
c. absorption
d. none of these
Answer: induction
56. ——– is the act of increasing the knowledge and skills of an employee for doing a job.
a. training
b. induction
c. placement
d. orientation
Answer: training
57. ——– means issuing orders, instructions and commands.
a. directing
b. unity of command
c. authority
d. all of these
Answer: directing
58. ———— means an individual should receive orders and instructions from only one superior
a. unity of command
b. span of control
c. scalar chain
d. none of these
Answer: unity of command
59. …………… is the activity of influencing people to strive willingly for group of objectives.
a. motivation
b. leadership
c. communication
d. none of these
Answer: leadership
60. A leader should have …………..
a. technical knowledge
b. empathy
c. initiative
d. all of these
Answer: all of these
61. In ………… style of leadership a manager centralizes decision making power in himself
a. autocratic
b. participative
c. free rein
d. none of these
Answer: autocratic
62. ……………… leader tries to make the subordinates to feel that they are actually participating in decision making even though he had already taken he decision.
a. participative
b. free rein
c. manipulative autocrat
d. none of these
Answer: manipulative autocrat
63. ………………. Leadership gives complete freedom to subordinates
a. authoritarian
b. participative
c. free rein
d. none of these
Answer: free rein
64. ……………. Is vested with the democratic style of leadership
a. negative motivation
b. centralization of authority
c. decentralization of authority
d. one way communication
Answer: decentralization of authority
65. The relationship between the leader and his group is the same as that of father and his family in ……
a. autocratic
b. participative
c. free rein
d. paternalistic
Answer: paternalistic
66. …………………. Leadership is also referred as fatherly leadership
a. autocratic
b. participative
c. free rein
d. paternalistic
Answer: paternalistic
67. Maslow’s theory of motivation is …………..
a. theory x and y
b. two factor theory
c. achievement theory
d. none of these
Answer: none of these
68. Need Hierarchy theory was developed by …………
a. mc gregor
b. abraham maslow
c. herzberg
d. mc clelland
Answer: abraham maslow
69. According to Need Hierarchy theory, the human needs are ……….
a. limited
b. unpredictable
c. unlimited
d. all of these
Answer: unlimited
70. …………… is the need for love and affection
a. safety
b. esteem
c. social
d. physiological
Answer: social
71. The desire to reach the peak of one’s potential is called as ………..
a. self actualization need
b. safety need
c. esteem need
d. social need
Answer: self actualization need
72. Two Factor Theory is also known as …………….
a. theory x and y
b. motivation hygiene theory
c. achievement theory
d. none of these
Answer: motivation hygiene theory
73. Achievement Theory was developed by ……….
a. mc gregor
b. abraham maslow
c. herzberg
d. mc clelland
Answer: mc clelland
74. Achievement Theory is concerned with ………………..
a. affiliation
b. power
c. achievement
d. all of these
Answer: all of these
75. Mc Gregor’s motivation theory is known as ………………
a. theory x and y
b. two factor theory
c. achievement theory
d. none of these
Answer: theory x and y
76. The techniques and tools for organizing and co-ordinating a group of individuals working towards a common goal
a. performance management
b. team management
c. performance appraisal
d. none of these
Answer: team management
77. ……….. Communication is also known as Grape wine
a. formal
b. informal
c. lateral
d. none of these
Answer: informal
78. The word MBO stands for ……………..
a. management by organisation
b. management by operation
c. management by objectives
d. none of these
Answer: management by objectives
79. MBO gives emphasis on …………….
a. top management
b. b). middle management
c. objectives
d. lower management
Answer: objectives
80. MBO establishes a …………………
a. community of interest
b. centralized organization
c. rigid organisation structure
d. all of these
Answer: community of interest
81. KRA in MBO stands for …………….
a. kerala rural academy
b. key result areas
c. key resources availability
d. none of these
Answer: key result areas
82. Ethics is a ………….
a. pure science
b. normative science
c. inexact science
d. none of these
Answer: normative science
83. Ethics means ……….
a. character
b. manner
c. custom
d. all of these
Answer: all of these
84. ……… deals with the right actions of individuals
a. sincerity
b. rules
c. ethics
d. all of these
Answer: ethics
85. Ethics is a ……..
a. social science
b. science of conduct
c. normative science
d. all of these
Answer: all of these
86. The word ‘moral’ is derived from the Latin word ……….
a. moralis
b. morilitic
c. monatic
d. none of these
Answer: moralis
87. Human nature is ………….
a. learned
b. programmed
c. inherited
d. all of these
Answer: inherited
88. Personality is …………….
a. learned
b. inherited
c. partially inherited and partially learned
d. neither learned nor inherited
Answer: learned
89. Culture is ………….
a. learned
b. programmed
c. inherited
d. all of these
Answer: inherited
90. ………. Culture exists in fast paced high risk organizations
a. fortress
b. club
c. baseball
d. academy
Answer: baseball
91. ……….. culture can be seen in military
a. fortress
b. club
c. baseball
d. academy
Answer: club
92. The term ‘value’ is derived from the French word ……………
a. valoir
b. valas
c. velois
d. none of these
Answer: valoir
93. ……………… represent an individual’s highest priorities and deeply held driving forces.
a. values
b. principles
c. culture
d. ethics
Answer: values
94. A set of characteristics that sets one group of people apart from another is called as …………
a. culture
b. values
c. ethics
d. none of these
Answer: culture
95. Indian ethos is the outcome of ……….. way of life
a. budha
b. hindu
c. christian
d. muslim
Answer: hindu
96. IEM stands for ……………
a. indian economic management
b. institute for education in management
c. indian ethos in management
d. international environmental management
Answer: indian ethos in management
97. The ‘guna’ of dark force is ………….
a. raja guna
b. satva guna
c. tams guna
d. none of these
Answer: tams guna
98. Indian model of management is …………..
a. value driven holistioc
b. ratopnal holistic
c. hybrid
d. noneof these
Answer: value driven holistioc
99. Fundamental theories of Indian Model include …………….
a. purushartha theory
b. panchakosas theory
c. theory of gunas
d. all of these
Answer: all of these
100. ……………… refers to certain norms governing the conduct of workers involved in a work situation
a. team work
b. work ethos
c. work group
d. work management
Answer: work ethos
Business Ethics MCQ with Answers PDF Download
FAQ and Answers on Business Ethics
What do you mean by business ethics?
Answer: Business ethics has both normative and descriptive dimensions. As a branch of applied ethics, it reviews and assesses normative theories that attempt to explain why and how companies should act in the way they do.
What are the principles of ethics in business?
Answer: Business ethics are all about managing situations in your company or business because it’s the right thing to do. According to the Society of Ethical Action, it includes the values, principles, and rules of conduct that guide decisions and determine how people ought to act. The general principles required in good business are honesty, integrity, promise-keeping & trustworthiness, loyalty, fairness, concern for others, respect for others, and law-abiding.
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