BUSI 301
Legal & Ethical Concepts
Comprehensive Midterms Exam (Qns & Ans)
2025
1. Which of the following legal principles ensures that
individuals and businesses operate within the bounds of the law?
- A. Corporate Social Responsibility (CSR)
- B. Compliance
- C. Ethics
- D. Whistleblowing
ANS: B. Compliance
©/2025
, Rationale: Compliance ensures that individuals and
businesses operate within the bounds of the law by adhering to
regulations, standards, and legal requirements.
2. What is the primary purpose of a code of ethics in an
organization?
- A. To increase operational costs
- B. To guide employees in making ethical decisions
- C. To limit employee interactions
- D. To reduce transparency
ANS: B. To guide employees in making ethical decisions
Rationale: A code of ethics provides a set of guidelines and
principles to help employees make ethical decisions and uphold
the organization's values and integrity.
Fill-in-the-Blank Questions
3. The __________ duty requires corporate directors and officers
to act in the best interest of the corporation and its shareholders.
ANS: fiduciary
©/2025
, Rationale: The fiduciary duty requires corporate directors and
officers to act in the best interest of the corporation and its
shareholders, ensuring loyalty and care in decision-making.
4. Informed __________ is a principle that requires individuals
to be fully informed before consenting to any medical or legal
procedure.
ANS: consent
Rationale: Informed consent ensures that individuals are fully
informed about the risks, benefits, and alternatives before
consenting to any medical or legal procedure, protecting their
autonomy and rights.
True/False Questions
5. True or False: Whistleblowing involves reporting unethical or
illegal activities within an organization to external authorities.
ANS: True
Rationale: Whistleblowing involves reporting unethical or
illegal activities within an organization to external authorities,
often to protect the public interest and ensure accountability.
©/2025
Legal & Ethical Concepts
Comprehensive Midterms Exam (Qns & Ans)
2025
1. Which of the following legal principles ensures that
individuals and businesses operate within the bounds of the law?
- A. Corporate Social Responsibility (CSR)
- B. Compliance
- C. Ethics
- D. Whistleblowing
ANS: B. Compliance
©/2025
, Rationale: Compliance ensures that individuals and
businesses operate within the bounds of the law by adhering to
regulations, standards, and legal requirements.
2. What is the primary purpose of a code of ethics in an
organization?
- A. To increase operational costs
- B. To guide employees in making ethical decisions
- C. To limit employee interactions
- D. To reduce transparency
ANS: B. To guide employees in making ethical decisions
Rationale: A code of ethics provides a set of guidelines and
principles to help employees make ethical decisions and uphold
the organization's values and integrity.
Fill-in-the-Blank Questions
3. The __________ duty requires corporate directors and officers
to act in the best interest of the corporation and its shareholders.
ANS: fiduciary
©/2025
, Rationale: The fiduciary duty requires corporate directors and
officers to act in the best interest of the corporation and its
shareholders, ensuring loyalty and care in decision-making.
4. Informed __________ is a principle that requires individuals
to be fully informed before consenting to any medical or legal
procedure.
ANS: consent
Rationale: Informed consent ensures that individuals are fully
informed about the risks, benefits, and alternatives before
consenting to any medical or legal procedure, protecting their
autonomy and rights.
True/False Questions
5. True or False: Whistleblowing involves reporting unethical or
illegal activities within an organization to external authorities.
ANS: True
Rationale: Whistleblowing involves reporting unethical or
illegal activities within an organization to external authorities,
often to protect the public interest and ensure accountability.
©/2025
