BUSN100 Midterm Practice Exam
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Questions 1-10: Business Fundamentals, Ethics, and Social
Responsibility
1. The inseparable relationship between business and society
means that:
A) Business decisions have no social impact
B) Society has no influence on business decisions
C) All business decisions have a social impact and the vitality of
business depends on society's actions and attitudes
D) Business and society operate independently of each other
Correct Answer: C) All business decisions have a social impact
and the vitality of business depends on society's actions and
attitudes
Rationale: Business and society are mutually dependent. A
company's success relies on societal support, and its operations
inevitably have social consequences .
2. Government's role is to create and enforce laws that:
, A) Maximize corporate profits
B) Balance the relationship between business and society
C) Eliminate all business competition
D) Minimize government intervention
Correct Answer: B) Balance the relationship between business
and society
Rationale: The government establishes a legal framework to
balance the sometimes competing needs of businesses and the
broader society, protecting consumers, workers, and the
environment .
3. Business ethics refers to:
A) Principles that guide acceptable business behavior
B) Rules for increasing prices only
C) Methods of avoiding competition
D) Strategies for reducing employees
Correct Answer: A) Principles that guide acceptable business
behavior
Rationale: Business ethics are the moral standards and principles
that guide decision-making and conduct in the professional
world .
4. An ethical business decision considers:
A) The effects on stakeholders and society
B) Only immediate profits
C) Only competitor actions
D) Only government pressure
Correct Answer: A) The effects on stakeholders and society
Rationale: Ethical decisions weigh the impact on all parties
, involved, including customers, employees, communities, and
owners, not just financial gains .
5. What was the purpose of the Sarbanes-Oxley Act of 2002?
A) To increase corporate profits
B) To protect investors and ensure corporate accountability
C) To eliminate all business regulations
D) To reduce taxes for corporations
Correct Answer: B) To protect investors and ensure corporate
accountability
Rationale: The Sarbanes-Oxley Act was enacted in response to
corporate scandals to improve the accuracy and reliability of
corporate disclosures and protect investors .
6. What is a code of ethics?
A) A set of financial goals for a company
B) A written guide defining acceptable behavior in an organization
C) A list of employee salaries
D) A marketing strategy document
Correct Answer: B) A written guide defining acceptable
behavior in an organization
Rationale: A code of ethics is a formal document that outlines the
principles and standards of conduct expected of employees within
an organization .
7. When attempting to build ethical safeguards into the
company, businesses can take the following specific
approaches:
A) Compliance and Integrity
, B) Profit and Growth
C) Efficiency and Innovation
D) Marketing and Sales
Correct Answer: A) Compliance and Integrity
Rationale: Businesses use a dual approach: a "compliance"
approach (establishing rules and monitoring) and an "integrity"
approach (fostering a culture of shared ethical values) .
8. What does social responsibility in business mean?
A) Maximizing profits at all costs
B) Considering the impact of business activities on society
C) Focusing only on shareholder returns
D) Minimizing employee benefits
Correct Answer: B) Considering the impact of business
activities on society
Rationale: Social responsibility is the concept that businesses
should act in a way that benefits society, going beyond their legal
and economic obligations .
9. What is consumerism?
A) A strategy to increase consumption
B) Activities to protect consumer rights
C) A method of reducing product quality
D) An economic theory about supply
Correct Answer: B) Activities to protect consumer rights
Rationale: Consumerism refers to the organized efforts of
individuals and groups to protect and promote the rights and
interests of consumers .
10. What occurs during whistle-blowing?
Set Exam Practice Questions And
Correct Answers (Verified Answers)
Plus Rationale 2026 Q&A|
Guaranteed Pass (GRADED A+)
Questions 1-10: Business Fundamentals, Ethics, and Social
Responsibility
1. The inseparable relationship between business and society
means that:
A) Business decisions have no social impact
B) Society has no influence on business decisions
C) All business decisions have a social impact and the vitality of
business depends on society's actions and attitudes
D) Business and society operate independently of each other
Correct Answer: C) All business decisions have a social impact
and the vitality of business depends on society's actions and
attitudes
Rationale: Business and society are mutually dependent. A
company's success relies on societal support, and its operations
inevitably have social consequences .
2. Government's role is to create and enforce laws that:
, A) Maximize corporate profits
B) Balance the relationship between business and society
C) Eliminate all business competition
D) Minimize government intervention
Correct Answer: B) Balance the relationship between business
and society
Rationale: The government establishes a legal framework to
balance the sometimes competing needs of businesses and the
broader society, protecting consumers, workers, and the
environment .
3. Business ethics refers to:
A) Principles that guide acceptable business behavior
B) Rules for increasing prices only
C) Methods of avoiding competition
D) Strategies for reducing employees
Correct Answer: A) Principles that guide acceptable business
behavior
Rationale: Business ethics are the moral standards and principles
that guide decision-making and conduct in the professional
world .
4. An ethical business decision considers:
A) The effects on stakeholders and society
B) Only immediate profits
C) Only competitor actions
D) Only government pressure
Correct Answer: A) The effects on stakeholders and society
Rationale: Ethical decisions weigh the impact on all parties
, involved, including customers, employees, communities, and
owners, not just financial gains .
5. What was the purpose of the Sarbanes-Oxley Act of 2002?
A) To increase corporate profits
B) To protect investors and ensure corporate accountability
C) To eliminate all business regulations
D) To reduce taxes for corporations
Correct Answer: B) To protect investors and ensure corporate
accountability
Rationale: The Sarbanes-Oxley Act was enacted in response to
corporate scandals to improve the accuracy and reliability of
corporate disclosures and protect investors .
6. What is a code of ethics?
A) A set of financial goals for a company
B) A written guide defining acceptable behavior in an organization
C) A list of employee salaries
D) A marketing strategy document
Correct Answer: B) A written guide defining acceptable
behavior in an organization
Rationale: A code of ethics is a formal document that outlines the
principles and standards of conduct expected of employees within
an organization .
7. When attempting to build ethical safeguards into the
company, businesses can take the following specific
approaches:
A) Compliance and Integrity
, B) Profit and Growth
C) Efficiency and Innovation
D) Marketing and Sales
Correct Answer: A) Compliance and Integrity
Rationale: Businesses use a dual approach: a "compliance"
approach (establishing rules and monitoring) and an "integrity"
approach (fostering a culture of shared ethical values) .
8. What does social responsibility in business mean?
A) Maximizing profits at all costs
B) Considering the impact of business activities on society
C) Focusing only on shareholder returns
D) Minimizing employee benefits
Correct Answer: B) Considering the impact of business
activities on society
Rationale: Social responsibility is the concept that businesses
should act in a way that benefits society, going beyond their legal
and economic obligations .
9. What is consumerism?
A) A strategy to increase consumption
B) Activities to protect consumer rights
C) A method of reducing product quality
D) An economic theory about supply
Correct Answer: B) Activities to protect consumer rights
Rationale: Consumerism refers to the organized efforts of
individuals and groups to protect and promote the rights and
interests of consumers .
10. What occurs during whistle-blowing?
