ETH 321
Ethical & Legal Topics
MIDTERM REVIEW 1
©UoPX 2024/2025
,1. Multiple Choice: Which of the following is considered a breach
of ethical business practice?
a) Competitive pricing
b) Insider trading
c) Outsourcing
d) All of the above
Correct Answer: b) Insider trading
Rationale: Insider trading involves trading a public company's
stock or other securities based on material, non-public information
about the company, which is illegal and unethical as it violates trust
and undermines market integrity.
2. Fill-in-the-Blank: __________ is the act of a company falsely
advertising its products to gain an unfair advantage over
competitors.
Correct Answer: Misrepresentation
Rationale: Misrepresentation in advertising is unethical as it
misleads consumers and can damage a company's reputation and
consumer trust.
3. True/False: It is legal for a company to monitor employees'
electronic communications without their knowledge.
Correct Answer: True
©UoPX 2024/2025
, Rationale: While it may raise ethical concerns, in many
jurisdictions, it is legal for a company to monitor employees'
electronic communications, especially if the monitoring is disclosed
in the employee contract or company policy.
4. Multiple Response: Select all that apply. Which of the following
actions are considered unethical in business?
a) Paying below minimum wage
b) Utilizing customer data without consent
c) Engaging in fair trade practices
d) Discrimination in hiring practices
Correct Answers: a) Paying below minimum wage, b) Utilizing
customer data without consent, d) Discrimination in hiring
practices
Rationale: Paying below minimum wage, utilizing customer data
without consent, and discrimination in hiring are all unethical
practices as they exploit individuals and violate basic rights and
laws.
5. Multiple Choice: In the context of business ethics, CSR stands
for:
a) Customer Service Requirement
b) Corporate Social Responsibility
c) Corporate Sales Return
©UoPX 2024/2025
Ethical & Legal Topics
MIDTERM REVIEW 1
©UoPX 2024/2025
,1. Multiple Choice: Which of the following is considered a breach
of ethical business practice?
a) Competitive pricing
b) Insider trading
c) Outsourcing
d) All of the above
Correct Answer: b) Insider trading
Rationale: Insider trading involves trading a public company's
stock or other securities based on material, non-public information
about the company, which is illegal and unethical as it violates trust
and undermines market integrity.
2. Fill-in-the-Blank: __________ is the act of a company falsely
advertising its products to gain an unfair advantage over
competitors.
Correct Answer: Misrepresentation
Rationale: Misrepresentation in advertising is unethical as it
misleads consumers and can damage a company's reputation and
consumer trust.
3. True/False: It is legal for a company to monitor employees'
electronic communications without their knowledge.
Correct Answer: True
©UoPX 2024/2025
, Rationale: While it may raise ethical concerns, in many
jurisdictions, it is legal for a company to monitor employees'
electronic communications, especially if the monitoring is disclosed
in the employee contract or company policy.
4. Multiple Response: Select all that apply. Which of the following
actions are considered unethical in business?
a) Paying below minimum wage
b) Utilizing customer data without consent
c) Engaging in fair trade practices
d) Discrimination in hiring practices
Correct Answers: a) Paying below minimum wage, b) Utilizing
customer data without consent, d) Discrimination in hiring
practices
Rationale: Paying below minimum wage, utilizing customer data
without consent, and discrimination in hiring are all unethical
practices as they exploit individuals and violate basic rights and
laws.
5. Multiple Choice: In the context of business ethics, CSR stands
for:
a) Customer Service Requirement
b) Corporate Social Responsibility
c) Corporate Sales Return
©UoPX 2024/2025
