BUSN100 Practice Exam 2 – Business
Ethics and Social Responsibility Exam
Practice Questions And Correct
Answers (100%Verified Answers) Plus
Rationale 2026 Q&A| Guaranteed Pass
(GRADED A+)
Multiple Choice Questions
1. The belief that individuals should make decisions based
primarily on personal self-interest is associated with:
A. Utilitarianism
B. Individualism
C. Social responsibility
D. Stakeholder theory
Correct Answer: B. Individualism
Rationale: Individualism emphasizes personal goals and self-
interest as important factors in decision-making. This ethical
perspective prioritizes individual rights and personal achievement
over collective or societal considerations .
,2. Which action represents unethical behavior by a business?
A. Paying employees fairly
B. Protecting customer privacy
C. Manipulating financial statements
D. Following safety regulations
Correct Answer: C. Manipulating financial statements
Rationale: Falsifying financial information is unethical because it
involves dishonesty and can harm investors, employees, and
customers. Financial statement manipulation misrepresents a
company's true financial position and undermines stakeholder
trust .
3. A company's reputation can be damaged by:
A. Ethical conduct
B. Honest communication
C. Unethical business practices
D. Community involvement
Correct Answer: C. Unethical business practices
Rationale: Unethical actions can reduce customer trust and harm
the public image of an organization. Negative publicity about
misconduct increasingly leads consumers to refuse to patronize
businesses .
,4. Which group is considered an internal stakeholder?
A. Employees
B. Government agencies
C. Customers
D. Community organizations
Correct Answer: A. Employees
Rationale: Employees are internal stakeholders because they work
within the organization and are directly connected to its
operations. Internal stakeholders participate directly in the
business's day-to-day activities, while external stakeholders like
customers, government agencies, and community organizations
interact with the business from outside .
5. Business sustainability focuses on:
A. Meeting present needs without harming future generations
B. Maximizing immediate profits regardless of consequences
C. Avoiding all business growth
D. Eliminating competition
Correct Answer: A. Meeting present needs without harming
future generations
Rationale: Sustainability involves balancing economic success with
environmental protection and social responsibility. The concept
recognizes that business activities should not compromise the
ability of future generations to meet their own needs .
, 6. The term "triple bottom line" refers to:
A. Profit, people, and planet
B. Sales, advertising, and pricing
C. Employees, managers, and owners
D. Production, finance, and marketing
Correct Answer: A. Profit, people, and planet
Rationale: The triple bottom line measures business success by
considering economic (profit), social (people), and environmental
(planet) performance. This framework encourages businesses to
evaluate their impact beyond just financial returns .
7. Transparency in business means:
A. Hiding information from stakeholders
B. Communicating openly and honestly
C. Avoiding customer feedback
D. Reducing employee participation
Correct Answer: B. Communicating openly and honestly
Rationale: Transparency builds trust by ensuring stakeholders
receive accurate and relevant information. Open communication
about business practices, decisions, and performance is essential
for ethical business conduct .
Ethics and Social Responsibility Exam
Practice Questions And Correct
Answers (100%Verified Answers) Plus
Rationale 2026 Q&A| Guaranteed Pass
(GRADED A+)
Multiple Choice Questions
1. The belief that individuals should make decisions based
primarily on personal self-interest is associated with:
A. Utilitarianism
B. Individualism
C. Social responsibility
D. Stakeholder theory
Correct Answer: B. Individualism
Rationale: Individualism emphasizes personal goals and self-
interest as important factors in decision-making. This ethical
perspective prioritizes individual rights and personal achievement
over collective or societal considerations .
,2. Which action represents unethical behavior by a business?
A. Paying employees fairly
B. Protecting customer privacy
C. Manipulating financial statements
D. Following safety regulations
Correct Answer: C. Manipulating financial statements
Rationale: Falsifying financial information is unethical because it
involves dishonesty and can harm investors, employees, and
customers. Financial statement manipulation misrepresents a
company's true financial position and undermines stakeholder
trust .
3. A company's reputation can be damaged by:
A. Ethical conduct
B. Honest communication
C. Unethical business practices
D. Community involvement
Correct Answer: C. Unethical business practices
Rationale: Unethical actions can reduce customer trust and harm
the public image of an organization. Negative publicity about
misconduct increasingly leads consumers to refuse to patronize
businesses .
,4. Which group is considered an internal stakeholder?
A. Employees
B. Government agencies
C. Customers
D. Community organizations
Correct Answer: A. Employees
Rationale: Employees are internal stakeholders because they work
within the organization and are directly connected to its
operations. Internal stakeholders participate directly in the
business's day-to-day activities, while external stakeholders like
customers, government agencies, and community organizations
interact with the business from outside .
5. Business sustainability focuses on:
A. Meeting present needs without harming future generations
B. Maximizing immediate profits regardless of consequences
C. Avoiding all business growth
D. Eliminating competition
Correct Answer: A. Meeting present needs without harming
future generations
Rationale: Sustainability involves balancing economic success with
environmental protection and social responsibility. The concept
recognizes that business activities should not compromise the
ability of future generations to meet their own needs .
, 6. The term "triple bottom line" refers to:
A. Profit, people, and planet
B. Sales, advertising, and pricing
C. Employees, managers, and owners
D. Production, finance, and marketing
Correct Answer: A. Profit, people, and planet
Rationale: The triple bottom line measures business success by
considering economic (profit), social (people), and environmental
(planet) performance. This framework encourages businesses to
evaluate their impact beyond just financial returns .
7. Transparency in business means:
A. Hiding information from stakeholders
B. Communicating openly and honestly
C. Avoiding customer feedback
D. Reducing employee participation
Correct Answer: B. Communicating openly and honestly
Rationale: Transparency builds trust by ensuring stakeholders
receive accurate and relevant information. Open communication
about business practices, decisions, and performance is essential
for ethical business conduct .
