,WGU D072 Exam | Fundamentals for Success in
Business | Questions & Verified Answers | OA| 2026
Edition (PDF)
**1. Which of the following best defines "ethics" in a business context?**
A) Laws that govern business transactions
B) Principles that serve as a compass about how to behave
C) Rules that maximize shareholder profits
D) Guidelines for maximizing efficiency
Correct Answer: B) Principles that serve as a compass about how to behave
Rationale: Ethics are moral principles that serve as a guide for behavior, helping individuals and
organizations distinguish right from wrong. Laws are formal rules enforced by government; ethics go
beyond legal requirements to address what is morally right.
**2. Which term describes the principles that guide a person's behavior?**
A) Laws
B) Ethics
C) Morals
D) Values
Correct Answer: B) Ethics
Rationale: Ethics are the principles that guide a person's behavior. Morals are sets of rules developed
based on cultural norms and beliefs passed down through generations. Values are the stable goals that
reflect what is most important to an individual.
**3. What is the primary difference between legal and ethical behavior?**
A) Legal behavior is always ethical
,B) Ethical behavior is always legal
C) Legal behavior conforms to the law; ethical behavior conforms to moral principles
D) There is no difference between legal and ethical behavior
Correct Answer: C) Legal behavior conforms to the law; ethical behavior conforms to moral principles
Rationale: Legal behavior is permitted by law, while ethical behavior aligns with moral principles of right
and wrong. Legality does not always equal morality; an action can be legal but unethical, or illegal but
ethical.
**4. In an effort to cut costs, an apparel factory moves operations to another country where labor is
cheap and employment laws are less stringent. Costs can only be kept low if the factory operates like a
sweatshop. Which type of problem is this company facing?**
A) Illegal-Unethical
B) Legal-Unethical
C) Legal-Ethical
D) Illegal-Ethical
Correct Answer: B) Legal-Unethical
Rationale: This is a Legal-Unethical problem. The actions are legal in the host country but violate ethical
standards regarding fair treatment of workers, safe working conditions, and human dignity. This tests
the distinction between legality (conforming to the law) and ethics (moral principles).
**5. Which type of dilemma occurs when established laws do not uphold the ethical choice?**
A) Legal-Ethical
B) Legal-Unethical
C) Illegal-Ethical
D) Illegal-Unethical
Correct Answer: C) Illegal-Ethical
, Rationale: An Illegal-Ethical dilemma occurs when the ethical choice would be in violation of established
laws. This represents a conflict between legal requirements and moral principles.
**6. Which type of dilemma occurs when the law and personal or organizational ethics are in
accordance with each other?**
A) Legal-Ethical
B) Legal-Unethical
C) Illegal-Ethical
D) Illegal-Unethical
Correct Answer: A) Legal-Ethical
Rationale: A Legal-Ethical situation occurs when established laws are in accordance with and uphold the
ethical choice. This is the ideal alignment where legal requirements and moral principles are consistent.
**7. A company employee notices that a member of upper management is harassing a newly hired
employee. The employee reports this behavior to the local authorities. Which term describes the action
taken by the employee who reported the incident?**
A) Mediation
B) Whistleblowing
C) Arbitration
D) Gossip
Correct Answer: B) Whistleblowing
Rationale: Whistleblowing involves exposing wrongdoing (harassment) to external authorities. It differs
from internal reporting because it involves going outside the normal chain of command to expose
violations of law, regulation, or ethics.
**8. What is Corporate Social Responsibility (CSR)?**
Business | Questions & Verified Answers | OA| 2026
Edition (PDF)
**1. Which of the following best defines "ethics" in a business context?**
A) Laws that govern business transactions
B) Principles that serve as a compass about how to behave
C) Rules that maximize shareholder profits
D) Guidelines for maximizing efficiency
Correct Answer: B) Principles that serve as a compass about how to behave
Rationale: Ethics are moral principles that serve as a guide for behavior, helping individuals and
organizations distinguish right from wrong. Laws are formal rules enforced by government; ethics go
beyond legal requirements to address what is morally right.
**2. Which term describes the principles that guide a person's behavior?**
A) Laws
B) Ethics
C) Morals
D) Values
Correct Answer: B) Ethics
Rationale: Ethics are the principles that guide a person's behavior. Morals are sets of rules developed
based on cultural norms and beliefs passed down through generations. Values are the stable goals that
reflect what is most important to an individual.
**3. What is the primary difference between legal and ethical behavior?**
A) Legal behavior is always ethical
,B) Ethical behavior is always legal
C) Legal behavior conforms to the law; ethical behavior conforms to moral principles
D) There is no difference between legal and ethical behavior
Correct Answer: C) Legal behavior conforms to the law; ethical behavior conforms to moral principles
Rationale: Legal behavior is permitted by law, while ethical behavior aligns with moral principles of right
and wrong. Legality does not always equal morality; an action can be legal but unethical, or illegal but
ethical.
**4. In an effort to cut costs, an apparel factory moves operations to another country where labor is
cheap and employment laws are less stringent. Costs can only be kept low if the factory operates like a
sweatshop. Which type of problem is this company facing?**
A) Illegal-Unethical
B) Legal-Unethical
C) Legal-Ethical
D) Illegal-Ethical
Correct Answer: B) Legal-Unethical
Rationale: This is a Legal-Unethical problem. The actions are legal in the host country but violate ethical
standards regarding fair treatment of workers, safe working conditions, and human dignity. This tests
the distinction between legality (conforming to the law) and ethics (moral principles).
**5. Which type of dilemma occurs when established laws do not uphold the ethical choice?**
A) Legal-Ethical
B) Legal-Unethical
C) Illegal-Ethical
D) Illegal-Unethical
Correct Answer: C) Illegal-Ethical
, Rationale: An Illegal-Ethical dilemma occurs when the ethical choice would be in violation of established
laws. This represents a conflict between legal requirements and moral principles.
**6. Which type of dilemma occurs when the law and personal or organizational ethics are in
accordance with each other?**
A) Legal-Ethical
B) Legal-Unethical
C) Illegal-Ethical
D) Illegal-Unethical
Correct Answer: A) Legal-Ethical
Rationale: A Legal-Ethical situation occurs when established laws are in accordance with and uphold the
ethical choice. This is the ideal alignment where legal requirements and moral principles are consistent.
**7. A company employee notices that a member of upper management is harassing a newly hired
employee. The employee reports this behavior to the local authorities. Which term describes the action
taken by the employee who reported the incident?**
A) Mediation
B) Whistleblowing
C) Arbitration
D) Gossip
Correct Answer: B) Whistleblowing
Rationale: Whistleblowing involves exposing wrongdoing (harassment) to external authorities. It differs
from internal reporting because it involves going outside the normal chain of command to expose
violations of law, regulation, or ethics.
**8. What is Corporate Social Responsibility (CSR)?**
