BUSN100 Unit Test 2 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 sales regardless of consequences
B. To eliminate competition from the marketplace
C. To guide decisions according to principles of right and wrong
D. To ensure that every employee receives the same salary
Answer: C. To guide decisions according to principles of right and
wrong
Rationale: Business ethics provides principles and standards that help
individuals and organizations determine appropriate behavior. Ethical
decision-making considers fairness, honesty, responsibility, and the
potential effects of decisions on stakeholders.
2. Which statement best describes an ethical dilemma?
A. A situation involving competing values in which choosing one option
may sacrifice another
B. A routine decision involving no significant consequences
C. A decision that is always governed by a specific law
D. A disagreement about an employee's work schedule
Answer: A. A situation involving competing values in which choosing
one option may sacrifice another
,Rationale: An ethical dilemma occurs when important values or
obligations conflict. The decision-maker may have to balance
competing interests such as honesty, profitability, loyalty, fairness, and
responsibility.
3. What is the difference between ethics and laws?
A. Ethics apply only to managers, while laws apply only to employees.
B. Laws are always voluntary, while ethics are mandatory.
C. Ethics concern profits, while laws concern customers.
D. Ethics involve principles of right and wrong, while laws are formal
rules established and enforced by authorities.
Answer: D. Ethics involve principles of right and wrong, while laws
are formal rules established and enforced by authorities.
Rationale: Laws establish legally enforceable standards, whereas ethics
involve broader principles concerning appropriate behavior. An action
can sometimes be legal but still be viewed as unethical.
4. Which factor is most likely to influence an individual's ethical
behavior?
A. The color of the company's logo
B. Personal values and beliefs
C. The size of the office
D. The location of the company's parking lot
Answer: B. Personal values and beliefs
Rationale: Personal values and beliefs influence how individuals
evaluate situations and determine what they consider right or wrong.
Ethical behavior is also influenced by organizational culture,
leadership, peers, and situational pressures.
5. What are stakeholders?
,A. Only shareholders who own company stock
B. Only employees of a business
C. Individuals or groups affected by or able to affect a business
D. Only government agencies that regulate businesses
Answer: C. Individuals or groups affected by or able to affect a
business
Rationale: Stakeholders can include employees, customers, suppliers,
investors, communities, governments, and others. Their interests may
be affected by business decisions even if they do not own shares in the
company.
6. Which group is considered an internal stakeholder?
A. Employees
B. Local residents
C. Government regulators
D. Customers
Answer: A. Employees
Rationale: Employees are internal stakeholders because they operate
within the organization and are directly connected to its activities.
Customers, communities, regulators, and suppliers are generally
considered external stakeholders.
7. What is corporate social responsibility?
A. The responsibility of a business to avoid making profits
B. The obligation of a business to consider its social, environmental, and
economic impacts
C. A requirement that businesses donate all profits to charities
D. A policy requiring businesses to eliminate competition
, Answer: B. The obligation of a business to consider its social,
environmental, and economic impacts
Rationale: Corporate social responsibility involves recognizing that
businesses have responsibilities beyond generating financial returns.
Responsible organizations consider their effects on employees,
communities, customers, the environment, and other stakeholders.
8. Which concept emphasizes that a company should consider the
interests of multiple groups affected by its decisions?
A. Stakeholder theory
B. Market segmentation
C. Economies of scale
D. Product differentiation
Answer: A. Stakeholder theory
Rationale: Stakeholder theory emphasizes that businesses should
consider the legitimate interests of groups affected by organizational
decisions rather than focusing exclusively on shareholders.
9. What does sustainability generally mean in business?
A. Increasing production regardless of resource consumption
B. Avoiding all technological innovation
C. Focusing only on short-term profits
D. Meeting present needs while protecting the ability of future
generations to meet their needs
Answer: D. Meeting present needs while protecting the ability of future
generations to meet their needs
Rationale: Sustainability involves balancing economic activity with
environmental and social considerations so that resources and
opportunities remain available over the long term.
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 sales regardless of consequences
B. To eliminate competition from the marketplace
C. To guide decisions according to principles of right and wrong
D. To ensure that every employee receives the same salary
Answer: C. To guide decisions according to principles of right and
wrong
Rationale: Business ethics provides principles and standards that help
individuals and organizations determine appropriate behavior. Ethical
decision-making considers fairness, honesty, responsibility, and the
potential effects of decisions on stakeholders.
2. Which statement best describes an ethical dilemma?
A. A situation involving competing values in which choosing one option
may sacrifice another
B. A routine decision involving no significant consequences
C. A decision that is always governed by a specific law
D. A disagreement about an employee's work schedule
Answer: A. A situation involving competing values in which choosing
one option may sacrifice another
,Rationale: An ethical dilemma occurs when important values or
obligations conflict. The decision-maker may have to balance
competing interests such as honesty, profitability, loyalty, fairness, and
responsibility.
3. What is the difference between ethics and laws?
A. Ethics apply only to managers, while laws apply only to employees.
B. Laws are always voluntary, while ethics are mandatory.
C. Ethics concern profits, while laws concern customers.
D. Ethics involve principles of right and wrong, while laws are formal
rules established and enforced by authorities.
Answer: D. Ethics involve principles of right and wrong, while laws
are formal rules established and enforced by authorities.
Rationale: Laws establish legally enforceable standards, whereas ethics
involve broader principles concerning appropriate behavior. An action
can sometimes be legal but still be viewed as unethical.
4. Which factor is most likely to influence an individual's ethical
behavior?
A. The color of the company's logo
B. Personal values and beliefs
C. The size of the office
D. The location of the company's parking lot
Answer: B. Personal values and beliefs
Rationale: Personal values and beliefs influence how individuals
evaluate situations and determine what they consider right or wrong.
Ethical behavior is also influenced by organizational culture,
leadership, peers, and situational pressures.
5. What are stakeholders?
,A. Only shareholders who own company stock
B. Only employees of a business
C. Individuals or groups affected by or able to affect a business
D. Only government agencies that regulate businesses
Answer: C. Individuals or groups affected by or able to affect a
business
Rationale: Stakeholders can include employees, customers, suppliers,
investors, communities, governments, and others. Their interests may
be affected by business decisions even if they do not own shares in the
company.
6. Which group is considered an internal stakeholder?
A. Employees
B. Local residents
C. Government regulators
D. Customers
Answer: A. Employees
Rationale: Employees are internal stakeholders because they operate
within the organization and are directly connected to its activities.
Customers, communities, regulators, and suppliers are generally
considered external stakeholders.
7. What is corporate social responsibility?
A. The responsibility of a business to avoid making profits
B. The obligation of a business to consider its social, environmental, and
economic impacts
C. A requirement that businesses donate all profits to charities
D. A policy requiring businesses to eliminate competition
, Answer: B. The obligation of a business to consider its social,
environmental, and economic impacts
Rationale: Corporate social responsibility involves recognizing that
businesses have responsibilities beyond generating financial returns.
Responsible organizations consider their effects on employees,
communities, customers, the environment, and other stakeholders.
8. Which concept emphasizes that a company should consider the
interests of multiple groups affected by its decisions?
A. Stakeholder theory
B. Market segmentation
C. Economies of scale
D. Product differentiation
Answer: A. Stakeholder theory
Rationale: Stakeholder theory emphasizes that businesses should
consider the legitimate interests of groups affected by organizational
decisions rather than focusing exclusively on shareholders.
9. What does sustainability generally mean in business?
A. Increasing production regardless of resource consumption
B. Avoiding all technological innovation
C. Focusing only on short-term profits
D. Meeting present needs while protecting the ability of future
generations to meet their needs
Answer: D. Meeting present needs while protecting the ability of future
generations to meet their needs
Rationale: Sustainability involves balancing economic activity with
environmental and social considerations so that resources and
opportunities remain available over the long term.
