IN BUSINESS 2025-2026 ACTUAL EXAM
QUIZLET WITH COMPLETE QUESTIONS
AND CORRECT ANSWERS RATED A+
The four main levels of ethical issues within organizations Correct
Answer Societal issues, Stakeholder issues, Internal Policy
Issues, and Personal Issues
A company insists on treating suppliers with respect and refuses
to push them to the lowest pricing possible.
Which level of organizational ethics is being used by this
company? Correct Answer Stakeholder's issues
A retail company frequently updates its principles, rules, and
guidelines to reflect input by employees.
Which level of organizational ethics is being illustrated by this
company? Correct Answer Internal Policy Issues
A large manufacturer of ice cream products has a core value of
"making the world a better place." However, it was discovered that
the manufacturer sourced their main raw ingredient from a
,company that used practices considered detrimental to the well-
being of animals.
Which situation is occurring with this discrepancy? Correct
Answer Greenwashing
The top management of a publicly traded company has been
cited for violation of the transparency standards with respect to
their financial and accounting reporting practices.
Which law has this company violated? Correct Answer Sarbanes-
Oxley Act (SOX)
A group of employees discovered alleged misconduct by senior
managers of their company and leaked information about the
situation to the press and general public.
What is term for this group of employees? Correct Answer
Whistleblowers
The top management of a company implemented a policy in
which all employees can attend the board meetings so they can
be present when important decisions are made.
Which practice is being followed by this company? Correct
Answer Internal transparency
The chief executive officer (CEO) of a beverage company wants
to promote a healthy lifestyle to its customers. Which action will
,achieve this goal? Correct Answer Build a park for the community
that includes walking trails
In an effort to cut costs, an apparel factory is moving 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?
Correct Answer Legal-unethical
The chief executive officer (CEO) of a company decides to
change the way the company has been functioning over the years
in order to improve its reputation. The CEO decides to pay the
employees a fair wage, show a good profit margin, and produce a
reliable product. But even after a year, there is not much change
in the way the community perceives the company. Which action
will provide the improvement this CEO is seeking? Correct
Answer Investing in social and environmental causes
A manufacturing cosmetics company currently avoids testing its
products on animals, but the new chief executive officer (CEO)
decides to begin that practice since it will help cut company costs.
Which impact will this have on the organization? Correct Answer It
will be viewed as being unethical.
During a meeting, a senior manager became upset over an issue
and used profanity when responding to lower-level managers.
The behavior disrupted the whole company. Which organizational
, element of ethics did this manager violate? Correct Answer
Culture
A junior accountant discovered fraud in the recording of accounts
receivable and plans to report this information to the local media.
Which law protects this junior accountant from retaliation by
management of the company? Correct Answer Sarbanes-Oxley
Act
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?
Correct Answer Whistleblowing
A corporation is opening a new factory in a small rural community
and would like to demonstrate an ethical commitment to
environmental responsibility in the new location. Which action
demonstrates this commitment? Correct Answer Invite local
citizens to a tree-planting event along the town's main street
Which employee action illustrates a personal commitment to
environmentally friendly business processes that also benefit the
organization and local community? Correct Answer Starting a
recycling programming at the workplace to reduce landfill waste