C717 BUS 3000
Business Ethics
Comprehensive FA Review (Qns & Ans)
2025
1. Which of the following best describes the concept of
corporate social responsibility (CSR)?
- A) Maximizing shareholder value
- B) Complying with legal requirements
- C) Voluntarily integrating social and environmental concerns
into business operations
- D) Reducing operational costs
©2024/2025
, - ANS: C) Voluntarily integrating social and environmental
concerns into business operations
- Rationale: CSR involves businesses voluntarily taking
responsibility for their impact on society and the environment.
2. What is the primary purpose of a code of ethics in a business
organization?
- A) To increase profits
- B) To provide guidelines for ethical behavior
- C) To reduce employee turnover
- D) To enhance marketing strategies
- ANS: B) To provide guidelines for ethical behavior
- Rationale: A code of ethics outlines the principles and
standards that guide the behavior of individuals within an
organization.
3. Which ethical theory emphasizes the greatest good for the
greatest number?
- A) Deontology
- B) Utilitarianism
- C) Virtue ethics
- D) Ethical relativism
©2024/2025
, - ANS: B) Utilitarianism
- Rationale: Utilitarianism focuses on achieving the greatest
overall happiness and minimizing harm.
4. What is the main focus of stakeholder theory?
- A) Maximizing shareholder value
- B) Balancing the interests of all stakeholders
- C) Reducing operational costs
- D) Enhancing product quality
- ANS: B) Balancing the interests of all stakeholders
- Rationale: Stakeholder theory emphasizes the importance of
considering the interests of all parties affected by business
decisions.
5. Which of the following is an example of an ethical dilemma?
- A) Choosing between two equally profitable investments
- B) Deciding whether to report a coworker's unethical behavior
- C) Selecting a supplier based on cost
- D) Implementing a new marketing strategy
- ANS: B) Deciding whether to report a coworker's unethical
behavior
©2024/2025
, - Rationale: An ethical dilemma involves a situation where a
person must choose between conflicting ethical principles.
Fill-in-the-Blank Questions
6. The principle of __________ requires businesses to act in
ways that are fair and just to all stakeholders.
- ANS: Justice
- Rationale: The principle of justice emphasizes fairness and
equality in business practices.
7. __________ is the practice of disclosing unethical or illegal
activities within an organization to external parties.
- ANS: Whistleblowing
- Rationale: Whistleblowing involves reporting misconduct
to protect the public interest.
8. A __________ is a formal statement of an organization's
values and ethical principles.
- ANS: Code of ethics
- Rationale: A code of ethics provides a framework for
ethical decision-making within an organization.
©2024/2025
Business Ethics
Comprehensive FA Review (Qns & Ans)
2025
1. Which of the following best describes the concept of
corporate social responsibility (CSR)?
- A) Maximizing shareholder value
- B) Complying with legal requirements
- C) Voluntarily integrating social and environmental concerns
into business operations
- D) Reducing operational costs
©2024/2025
, - ANS: C) Voluntarily integrating social and environmental
concerns into business operations
- Rationale: CSR involves businesses voluntarily taking
responsibility for their impact on society and the environment.
2. What is the primary purpose of a code of ethics in a business
organization?
- A) To increase profits
- B) To provide guidelines for ethical behavior
- C) To reduce employee turnover
- D) To enhance marketing strategies
- ANS: B) To provide guidelines for ethical behavior
- Rationale: A code of ethics outlines the principles and
standards that guide the behavior of individuals within an
organization.
3. Which ethical theory emphasizes the greatest good for the
greatest number?
- A) Deontology
- B) Utilitarianism
- C) Virtue ethics
- D) Ethical relativism
©2024/2025
, - ANS: B) Utilitarianism
- Rationale: Utilitarianism focuses on achieving the greatest
overall happiness and minimizing harm.
4. What is the main focus of stakeholder theory?
- A) Maximizing shareholder value
- B) Balancing the interests of all stakeholders
- C) Reducing operational costs
- D) Enhancing product quality
- ANS: B) Balancing the interests of all stakeholders
- Rationale: Stakeholder theory emphasizes the importance of
considering the interests of all parties affected by business
decisions.
5. Which of the following is an example of an ethical dilemma?
- A) Choosing between two equally profitable investments
- B) Deciding whether to report a coworker's unethical behavior
- C) Selecting a supplier based on cost
- D) Implementing a new marketing strategy
- ANS: B) Deciding whether to report a coworker's unethical
behavior
©2024/2025
, - Rationale: An ethical dilemma involves a situation where a
person must choose between conflicting ethical principles.
Fill-in-the-Blank Questions
6. The principle of __________ requires businesses to act in
ways that are fair and just to all stakeholders.
- ANS: Justice
- Rationale: The principle of justice emphasizes fairness and
equality in business practices.
7. __________ is the practice of disclosing unethical or illegal
activities within an organization to external parties.
- ANS: Whistleblowing
- Rationale: Whistleblowing involves reporting misconduct
to protect the public interest.
8. A __________ is a formal statement of an organization's
values and ethical principles.
- ANS: Code of ethics
- Rationale: A code of ethics provides a framework for
ethical decision-making within an organization.
©2024/2025
