OpenStax Entrepreneurship Test Bank
Chapter 3: The Ethical and Social Responsibilities of Entrepreneurs
Chapter 3: The Ethical and Social Responsibilities of Entrepreneurs
* = Correct answer
Multiple Choice/Fill in the Blank
1. What are the primary needs of shareholders?
A. all having a vested interest
B. always obtaining a return on investment
C. managing a company
D. realizing value*
Difficulty: Moderate
2. What is the common theme between the 1997 Business Roundtable Statement and the
shareholder primacy?
A. balancing shareholder interests
B. concern for other constituencies
C. corporate social responsibility
D. maximizing shareholder value*
Difficulty: Moderate
3. Which of the following is not an element of the Business Roundtable Official Statement on
the purpose of a corporation?
A. creating long-term shareholder value
B. ethically dealing with suppliers
C. investing in employees
D. lowering prices of products*
Difficulty: Moderate
4. Which of the following is the most effective way to cultivate anchoring organizational
strategies?
A. delegation
B. encouragement*
C. facilitation
D. punishment
Difficulty: Moderate
5. The Ten Principles of the United Nations Global Compact cover all of the following
principles except ________.
A. association
B. corruption
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, OpenStax Entrepreneurship Test Bank
Chapter 3: The Ethical and Social Responsibilities of Entrepreneurs
C. fraud*
D. human rights
Difficulty: Easy
6. What foundational beliefs inform one’s moral compass? (Select all that apply.)
A. analytical
B. environmental
C. philosophical*
D. religious*
Difficulty: Easy
7. Which professions have external codes of ethics? (Select all that apply.)
A. CPAs*
B. CFPs*
C. restaurateurs
D. attorneys*
Difficulty: Moderate
8. What are some of the intellectual property issues facing entrepreneurs? (Select all that apply.)
A. contracts
B. nondisclosure agreements*
C. organization
D. patents*
Difficulty: Moderate
9. What is CSR?
A. company shareholder reorganization
B. corporate shareholder responsibility
C. corporate social responsibility*
D. company social reorganization
Difficulty: Easy
10. Which of the following is not one of the entities that promulgated new regulations in
response to business sector ethical failures? (Select all that apply.)
A. AICPA*
B. FTC*
C. PCAOB
D. SEC
Difficulty: Moderate
Page 2 of 12
Chapter 3: The Ethical and Social Responsibilities of Entrepreneurs
Chapter 3: The Ethical and Social Responsibilities of Entrepreneurs
* = Correct answer
Multiple Choice/Fill in the Blank
1. What are the primary needs of shareholders?
A. all having a vested interest
B. always obtaining a return on investment
C. managing a company
D. realizing value*
Difficulty: Moderate
2. What is the common theme between the 1997 Business Roundtable Statement and the
shareholder primacy?
A. balancing shareholder interests
B. concern for other constituencies
C. corporate social responsibility
D. maximizing shareholder value*
Difficulty: Moderate
3. Which of the following is not an element of the Business Roundtable Official Statement on
the purpose of a corporation?
A. creating long-term shareholder value
B. ethically dealing with suppliers
C. investing in employees
D. lowering prices of products*
Difficulty: Moderate
4. Which of the following is the most effective way to cultivate anchoring organizational
strategies?
A. delegation
B. encouragement*
C. facilitation
D. punishment
Difficulty: Moderate
5. The Ten Principles of the United Nations Global Compact cover all of the following
principles except ________.
A. association
B. corruption
Page 1 of 12
, OpenStax Entrepreneurship Test Bank
Chapter 3: The Ethical and Social Responsibilities of Entrepreneurs
C. fraud*
D. human rights
Difficulty: Easy
6. What foundational beliefs inform one’s moral compass? (Select all that apply.)
A. analytical
B. environmental
C. philosophical*
D. religious*
Difficulty: Easy
7. Which professions have external codes of ethics? (Select all that apply.)
A. CPAs*
B. CFPs*
C. restaurateurs
D. attorneys*
Difficulty: Moderate
8. What are some of the intellectual property issues facing entrepreneurs? (Select all that apply.)
A. contracts
B. nondisclosure agreements*
C. organization
D. patents*
Difficulty: Moderate
9. What is CSR?
A. company shareholder reorganization
B. corporate shareholder responsibility
C. corporate social responsibility*
D. company social reorganization
Difficulty: Easy
10. Which of the following is not one of the entities that promulgated new regulations in
response to business sector ethical failures? (Select all that apply.)
A. AICPA*
B. FTC*
C. PCAOB
D. SEC
Difficulty: Moderate
Page 2 of 12
