BUSN100 Lesson 2 Quiz Business
Ethics and Social Responsibility
Questions And Correct Answers
(Verified Answers) Plus Rationales
2026 Q&A | Instant Download Pdf
1. What is the primary purpose of business ethics?
A. To maximize advertising exposure
B. To eliminate all business risks
C. To provide principles for determining appropriate business conduct
D. To guarantee higher profits
Answer: C. To provide principles for determining appropriate
business conduct
Rationale: Business ethics provides principles and standards that help
individuals and organizations determine what is right, fair,
responsible, and appropriate when making business decisions. Ethics
goes beyond simply following the law because an action may be legal
but still raise important moral concerns.
2. Which statement best describes social responsibility?
A. The obligation of a business to consider the effects of its decisions on
society
B. The requirement to donate all profits to charities
C. The responsibility of customers to support local companies
D. The obligation to avoid competition
,Answer: A. The obligation of a business to consider the effects of its
decisions on society
Rationale: Social responsibility means that businesses recognize that
their decisions can affect employees, customers, communities, the
environment, and other stakeholders. Responsible companies consider
these effects while pursuing organizational objectives.
3. What is an ethical dilemma?
A. A situation involving only financial calculations
B. A situation in which a company has no available choices
C. A disagreement between two employees about scheduling
D. A situation in which competing moral principles make a decision
difficult
Answer: D. A situation in which competing moral principles make a
decision difficult
Rationale: An ethical dilemma occurs when a person or organization
faces a difficult choice involving competing values, principles,
obligations, or interests. The decision may require balancing
legitimate concerns rather than simply identifying an obvious right
answer.
4. Which factor is most likely to influence an individual's ethical
behavior in an organization?
A. Office furniture
B. Personal values and organizational culture
C. Building size
D. Product packaging
Answer: B. Personal values and organizational culture
,Rationale: Ethical behavior is influenced by personal values as well as
the environment in which people work. Organizational culture,
leadership expectations, policies, incentives, and peer behavior can
strongly influence whether employees make ethical or unethical
choices.
5. What is the difference between ethics and laws?
A. Ethics and laws are always identical
B. Laws apply only to nonprofit organizations
C. Ethics concerns principles of right and wrong, while laws are
formally established rules enforced by authorities
D. Ethics is concerned only with accounting
Answer: C. Ethics concerns principles of right and wrong, while laws
are formally established rules enforced by authorities
Rationale: Laws establish minimum standards of conduct that are
formally recognized and enforced by governmental authorities. Ethics
is broader and concerns moral principles and judgments about what
ought to be done. Businesses should comply with laws while also
considering ethical responsibilities that may extend beyond legal
requirements.
6. Which action demonstrates ethical decision-making?
A. Considering how a decision affects multiple stakeholders before
acting
B. Ignoring customers if profits increase
C. Hiding relevant information from employees
D. Choosing the option that benefits the manager personally
Answer: A. Considering how a decision affects multiple stakeholders
before acting
, Rationale: Ethical decision-making involves evaluating alternatives
carefully and considering their consequences for affected parties.
Looking at stakeholder interests helps decision makers recognize
responsibilities that may otherwise be overlooked.
7. Who is considered a stakeholder of a business?
A. Only the chief executive officer
B. Only government regulators
C. Only shareholders
D. Any individual or group affected by or able to affect the organization
Answer: D. Any individual or group affected by or able to affect the
organization
Rationale: Stakeholders can include employees, customers, suppliers,
investors, governments, communities, creditors, and others. A
stakeholder has an interest in the organization's activities or can
influence its ability to achieve its objectives.
8. Which group is generally considered an internal stakeholder?
A. Local residents
B. Employees
C. Government agencies
D. Customers
Answer: B. Employees
Rationale: Employees are internal stakeholders because they are
members of the organization and are directly involved in its
operations. Customers, communities, governments, and suppliers are
generally external stakeholders, although all may significantly affect
organizational performance.
9. What does corporate social responsibility commonly involve?
Ethics and Social Responsibility
Questions And Correct Answers
(Verified Answers) Plus Rationales
2026 Q&A | Instant Download Pdf
1. What is the primary purpose of business ethics?
A. To maximize advertising exposure
B. To eliminate all business risks
C. To provide principles for determining appropriate business conduct
D. To guarantee higher profits
Answer: C. To provide principles for determining appropriate
business conduct
Rationale: Business ethics provides principles and standards that help
individuals and organizations determine what is right, fair,
responsible, and appropriate when making business decisions. Ethics
goes beyond simply following the law because an action may be legal
but still raise important moral concerns.
2. Which statement best describes social responsibility?
A. The obligation of a business to consider the effects of its decisions on
society
B. The requirement to donate all profits to charities
C. The responsibility of customers to support local companies
D. The obligation to avoid competition
,Answer: A. The obligation of a business to consider the effects of its
decisions on society
Rationale: Social responsibility means that businesses recognize that
their decisions can affect employees, customers, communities, the
environment, and other stakeholders. Responsible companies consider
these effects while pursuing organizational objectives.
3. What is an ethical dilemma?
A. A situation involving only financial calculations
B. A situation in which a company has no available choices
C. A disagreement between two employees about scheduling
D. A situation in which competing moral principles make a decision
difficult
Answer: D. A situation in which competing moral principles make a
decision difficult
Rationale: An ethical dilemma occurs when a person or organization
faces a difficult choice involving competing values, principles,
obligations, or interests. The decision may require balancing
legitimate concerns rather than simply identifying an obvious right
answer.
4. Which factor is most likely to influence an individual's ethical
behavior in an organization?
A. Office furniture
B. Personal values and organizational culture
C. Building size
D. Product packaging
Answer: B. Personal values and organizational culture
,Rationale: Ethical behavior is influenced by personal values as well as
the environment in which people work. Organizational culture,
leadership expectations, policies, incentives, and peer behavior can
strongly influence whether employees make ethical or unethical
choices.
5. What is the difference between ethics and laws?
A. Ethics and laws are always identical
B. Laws apply only to nonprofit organizations
C. Ethics concerns principles of right and wrong, while laws are
formally established rules enforced by authorities
D. Ethics is concerned only with accounting
Answer: C. Ethics concerns principles of right and wrong, while laws
are formally established rules enforced by authorities
Rationale: Laws establish minimum standards of conduct that are
formally recognized and enforced by governmental authorities. Ethics
is broader and concerns moral principles and judgments about what
ought to be done. Businesses should comply with laws while also
considering ethical responsibilities that may extend beyond legal
requirements.
6. Which action demonstrates ethical decision-making?
A. Considering how a decision affects multiple stakeholders before
acting
B. Ignoring customers if profits increase
C. Hiding relevant information from employees
D. Choosing the option that benefits the manager personally
Answer: A. Considering how a decision affects multiple stakeholders
before acting
, Rationale: Ethical decision-making involves evaluating alternatives
carefully and considering their consequences for affected parties.
Looking at stakeholder interests helps decision makers recognize
responsibilities that may otherwise be overlooked.
7. Who is considered a stakeholder of a business?
A. Only the chief executive officer
B. Only government regulators
C. Only shareholders
D. Any individual or group affected by or able to affect the organization
Answer: D. Any individual or group affected by or able to affect the
organization
Rationale: Stakeholders can include employees, customers, suppliers,
investors, governments, communities, creditors, and others. A
stakeholder has an interest in the organization's activities or can
influence its ability to achieve its objectives.
8. Which group is generally considered an internal stakeholder?
A. Local residents
B. Employees
C. Government agencies
D. Customers
Answer: B. Employees
Rationale: Employees are internal stakeholders because they are
members of the organization and are directly involved in its
operations. Customers, communities, governments, and suppliers are
generally external stakeholders, although all may significantly affect
organizational performance.
9. What does corporate social responsibility commonly involve?
