You are on page 1of 19

Q.No.

Question

Options

Answer

1. Illegal
2. Unethical
1.

In hostile takeover bid, a "greenmail" is a purchase of a


raider's stock at a premium price to ward off the takeover.
It is (tick the most appropriate):

3. Both the above

4. 5. 1. Economic
2. Financial
2.

Which aspect is not among Carroll's model of CSR:

3. Legal

4. Philanthropic
5. 1. ISO 9000
2. ISO 14000
3.

Which is an International Standard for CSR:

3. ISO 26000

4. 5. -

4.

1.

Deny that it is harmful to


health

2.

Take a legal course to


alleviate the pressures

Corporations respond to social pressures to comply with


CSR requirements (such as cigarette smoking) by following 3. Admit but do the least
methods (check the incorrect):
4. Do all that is required
5. Do more than expected

5.

The Theories for product liability are based on different


foundations. Select the appropriate answer:

The due care theory is


1. based on freedom of
contract
The contractual theory
2. on Aristotelian principle of
contemporary justice
The strict liability largely 3
3. on utilitarian
considerations
4.

None of the above are


correct

5. -

6.

US Court Case "Henningsen vs. Bloomfield Motors"


(discussed in class), the court decision was based on (tick
the incorrect);

Seller having much


1. higher bargaining power
than buyer
Inability of buyer to
examine the product fully
2.
and determine its fitness
for use
Relevant paragraphs of
4
3. contract being very hard
to read
Including in contract the
maker's liability for
4.
personal injury due to
failed part
5. 1. Social Policies
2. Social Programmes

7.

Which is a factor not included in Donna Woods model of


CSP:

3.

Incentives and Awards


for CSR

4. Social Impacts
5. 1. Price fixing
8.

Anticompetition is (tick the incorrect):

2. Tying arrangement
3. Reciprocal dealing

4.

Criticizing competitor's
product

5. Exclusive dealing
In the matrix shown below, in which quadrant would you
fit only Kants Ethical Theory?

1. A
2. B
3. C

9.

4. D

5. In the matrix shown below, in which quadrant would you


fit only Mill's Ethical Theory?

1. A
2. B
3. C

10.

4. D

5. -

1. Not Illegal
2. Not unethical
11.

Sale of non-iodized salt in India is (Tick the correct):

3. Both the above

4. 5. 12.

Sale of Cigarettes in India is (Tick the incorrect):

1. Not Illegal

2. Not unethical
3. Both the above
4. 5. -

Q.No.

Question

Options

Answer

1. Yes

1.

A criminal lawyer finds that the party he is


defending is guilty and if freed the party would
potentially indulge in crime. Is he ethically
obliged to defend the party?

2. No
3. -

4. 5. -

1.

Most of the organisations are producing valuebased codes and building values into their
corporate strategies, for all of the following
reasons EXCEPT which ONE?

Corporate values are important for


giving guidance to staff about what
1.
the expectations an employer has of
them with regard to their behaviour.
Corporate values are made
mandatory under the statutory laws,
2.
and failure to comply amounts to
legal breach.
Corporate values seek to ensure a
2
3. consistency of conduct across the
entire organisation.
Corporate values directly relate to
organisations risk management
4.
strategies and supports reputation
and credibility.
5. 1. Yes

2.

Is placing of cameras and recording devices in


work areas justified ethically?

2. No
3. -

4. 5. 1.

Corporate governance of an
organisation

2. Corporate values of an organisation


2.

'How much recycling of waste and paper


undertaken by an organisation?' relates to which 3. Social responsibility of an
organisation
one of the following?
4.

Corporate policy towards


sustainability

5. -

3.

1.

Society, through the legislative


process

2.

Individuals, through their personal


values

All the following are sources of values that give


Organisations, through codes of
3.
rise to ethical dilemmas EXCEPT which ONE?
ethics for their staff to follow
4.

Courts, through higher judicial


precedents

5. 1. Yes
2. No
3.

A financial analyst discovers a huge fraud at a


high flying firm and advises his clients to sell.
Can he be charged for insider trading?

3. -

4. 5. 1. Yes
4.

Is compulsory testing for alcohol for pilots and


truck drivers a violation of privacy?

2. No
3. -

4. 5. 1. Corporate regulations
2. Corporate governance
4.

The system by which companies are directed


and controlled is called:

3. Corporate administration

4. Corporate compliance
5. 1. Ethics.
2. Cultural Diversity.
5.

When one person takes credit for the words


and writing of another, it is called

3. Plagiarism.

4. Ethnocentrism.
5. -

5.

The Italian fashion dressmaker recently made


some objectionable advertisements. It is held
that it did this

1.

Unknowingly, not knowing the ads


would be objected to.

2.

Knowingly, so that it could make


news.

3. -

4. 5. 1. the ethics code must be enforced.


6.

Which of the following is the first step in a


company's attempt to improve business ethics
within the company?

2. an ethics office must be set up.


3. managers must be trained.

top management must adopt and


4. unconditionally support an explicit
corporate code of ethics.
5. 1. Illegal
2. Unethical
6.

To avoid a battle of control, a firm buys stock


from the raider at a premium price over the
market price. It is (check one):

3. Both the above

4. 5. 1. Yes
2. No
7.

A geologist finds that a widow's land contains


oil. Would he be ethically justified in buying the 3. land without revealing what he knows?

4. 5. 1. Open corporations
2. Close corporations
7.

What types of businesses can be owned by


thousands of stockholders?

3. General partnerships

4. Sole proprietorships
5. 1. Increasing recycling
8.

'Green jobs' is one of the main ways in which


the problems and tensions inherent in the
concept of sustainable development has been
addressed. Which of the following
is not identified as aspects of green jobs?

Jobs become more environmentally


2. sustainable through reorganization of 3
labour and the workplace.
Jobs become human-centred,
3. reducing the need for complicated
and energy-intensive machinery.

Jobs in industries producing


4. environmentally friendly goods and
services.
5. 1. Social welfare

8.

CSR includes (select answer most appropriate)

2.

Preservation of environment and


ecosystem

3.

Conservation of scarce nonrenewable resources

4. Support of disabled people


5. All of the above

9.

the existing system allows


companies to attract more talented
1.
employees seeking the notoriety of a
patent or copyright.
companies would be less willing to
2. invest in research and development
There are some who argue that legal protection without such protection.
it allows the U.S. to maintain a
of intellectual property violates the principles of
competitive
advantage globally since 2
a free market. Defenders of legal protection for
3. all countries must respect the
proprietary data maintain, however, that:
protection granted by the U.S.
government.
4.

it generates greater profit for the


benefit of the entire industry

5. 1. Law

9.

Old saying 'Finders keepers, losers weepers'.


Locating the owner and returning the item
found is required according to (select the most
appropriate):

2. Ethical conduct
3. Both the above (a and b)

4. 5. 10.

Not leaving an air conditioner running when


away from room for a long time is required by:

1. Law

2. Ethics
3. 4. 5. 1. Strategic Plan.
2. Guideline.
10.

A set of formalized rules and standards that


describe what a company expects of its
employees is called a(n)

3. Code Of Ethics.

4. Corporate Citizenship Plan.


5. 1. Strong competition
2. Shrinking market
11.

Enron's demise was due to (tick the correct


option):

3. Lagging economy

4. None of the above


5. 1. ISO 26000
2. SA 8000
11.

Which of the following is an international


standard on social responsibility.

3. AA 1000S

4. ISO 14001
5. 12.

A 'golden parachute' is an offer by a friendly


company to the target company for merger or

1. True

acquisition to ward off a hostile takeover bid by


2. False
a raider.
3. 4. 5. 1. ISO 26000
2. SA 8000
12.

Which of the following is a scheme to tackle the


specific aspect of reporting assurance in social 3. AA 1000S
accounting?

4. ISO 14001
5. 1.

13.

What is the 'bottom of the pyramid' concept?

Focus on alleviating poverty by


raising the real incomes of the poor.

Focus on social enterprise or


cooperatives to maximize the ability
2.
of the poorest to lift themselves out
of poverty.
Focus on providing small loans to
the poorest members of developing
3.
societies, who have no access to
formal credit facilities.
Focus on offering innovative
4. products and services to the world's
poorest people

5. -

14.

It is now generally accepted that business


responsibility does extend beyond simply
making a profit. Which of the following isnot a
business reason for CSR?

Socially responsible companies


voluntarily solve the social and
1.
environmental problems their
activities have caused.
Socially responsible firms may find it
2. easier to attract employees, who may
be more committed.
1
Corporations seen as responsible
3. may attract more and/or more loyal
customers.
By engaging in voluntary CSR,
4. corporations may avoid government
legislation.

5. -

15.

What is 'greenwashing'?

1.

Transforming products to be more


ethical.

2.

Making a product appear more


ethical that it really is.

3.

Converting the company to green


production methods.

4.

Convincing customers to buy


ethically.

5. -

Q.No.

Question

Options

Answer

1. True
2. False
1.

Advertising of tobacco products is


banned in India.

3. -

4. 5. -

1.

Which of the following is NOT a moral


principle constraining contractual
obligation?

1.

All parties must have full knowledge of the


agreement.

2.

No party must intentionally misrepresent


any relevant facts.

3.

No party must be forced to enter the


agreement under duress.

There must be a "grace period" of three


4. days during which time any party may
withdraw their agreement for any reason.
5. 1. From each according to their ability.
2.

Which of the following states "the


fundamental principle of distributive [and 2. To each according to their needs.
3
all] justice"?
Individuals similar in all respects relevant to
3. the kind of treatment in question should be
treated similarly.

4. Both A and B.
5. 1. True
2. False
2.

Indian Sale of Goods Act is based on


Caveat Emptor

3. -

4. 5. -

3.

With regard to rights and duties, which


of the following is true?

1.

Negative rights entail duties of commission


or assistance.

2.

Positive rights entail duties of omission or


noninterference.

3. Every right entails corresponding duties.

4. All of the above.


5. 1. True

3.

2. False
The courts accepted the argument of
the asbestos industry that they were not
aware of the harm that could result from 3. handling asbestos till it was diagnosed
and hence acquitted them.
4. -

5. 1. True
4.

Ethics is always beyond the legal


domain.

2. False
3. -

4. 5. -

4.

Codes of ethics foster ethical behavior


by

Expanding the opportunity to behave


1. ethically by providing rewards for following
the rules.
Limiting the opportunity to behave
2. unethically by providing punishments for
violations of the rules and standards.
Limiting the opportunity to behave
3. unethically by providing rewards for
violations of the rules and standards.
Expanding the opportunity to behave
4. ethically by providing punishments for
following the rules.

5. -

5.

Business managers don't need to study


1. ethics in order to know how to treat
employees, shareowners, and customers.
Business and ethics simply don't mix. In the
final analysis, self-interest represented by
profit overrides the interests of employees,
2.
customers, and communities. Opinion and
sentiment get in the way of efficient
business decision-making.
Ethical concerns are as unavoidable in
Which of the following statements is
decisive in determining whether or not to business as are concerns of marketing,
3
accounting, finance, and human resources.
study business ethics?
3. Formal study of business ethics helps
address these concerns so that decisions of
right and wrong may be made deliberately.
and conscientiously
The answers to ethical questions are clear4. cut enough; all business people already
know right from wrong.
5. 1. True

5.

Using a subliminal message for


advertising is legally permissible.

2. False
1
3. 4. -

5. Individuals who obey the conventions,


mores, and rules of their cultures are
1.
already acting ethically. No further
philosophical reflection is required.
Philosophical ethics distinguishes what
2. people do value from what they should
value.

6.

Which statement correctly describes the


What people do value and should value are,
relationship between philosophical ethics 3.
2
for all practical purposes, the same.
and ethos?
Philosophical ethics is too abstract to be
useful in everyday life situations. Following
4. the mores and customs of one's culture is a
more dependable way to make moral
decisions.
5. 1. Profit
2. Policy

6.

The acronym "TBL" does not include


(check one)

3. People

4. Planet
5. -

7.

Which statement correctly reflects the


free market view of business social
responsibility?

In addition to making a profit, businesses


are just as responsible for seeing to the
1.
well-being of their employees and the
communities in which they operate
No one other than the managers and
owners of a business may claim to have any
2.
stake in the business decisions managers
make.
In the process of providing goods and
services to customer who need and want
3
3. them and maximizing profits for its
shareowners, a business fulfills its social
responsibility
A business is responsible for maximizing
profits for its shareowners, but, in special
4. circumstances, may have to sacrifice profits
in the interest of the community whose
citizens depend on it for employment.
5. -

1. True
2. False
7.

A valid contract cannot be set aside by


courts.

3. -

4. 5. 1.

Ethical issues are limited to for-profit


organizations.

2. Business ethics goes beyond legal issues.


8.

Which of the following statements is


false?

3.

Ethical conduct builds trust among


individuals and in business relationships.

4.

Ethical conflicts may evolve into legal


disputes.

5. 1. True

8.

2. False
The "strict liability theory" considers the
manufacturer guilty of harm to consumer
due to product supplied even if it results 3. from the fault of the consumer.

4. 5. -

9.

Businesses should prevent laws from being


1. enacted so as to give themselves maximum
freedom to act.
Business ethics is about uncovering the
The law can be said to be a definition of
definitive
answer to business ethics
the minimum acceptable standards of
2.
problems
in the absence of guidance from
behaviour, with many morally
3
the
law.
contestable issues not covered by the
law. What does this imply for business
In a sense, business ethics can be said to
3.
ethics?
begin where the law ends.
4. The other three answers are all correct.

5. 1. True
2. False
9.

Surrogate advertisement for alcohol


such "Kingfisher Mineral Water" is
permitted in India as per ASCI Code.

3. -

4. 5. 1. YES

10.

The owner of an Indian Supermarket in


2. NO
Rotterdam needs a manager who speaks
Hindi fluently, knows of Indian Culture,
and has knowledge of consumer
3. preferences in Dutch-Asian products. He
advertises for an Indian manager. Is he
being discriminatory?
4. -

5. -

10.

Corporations provide an efficient means for


raising large amounts of capital needed to
1.
produce and distribute socially desired
goods and services.
Corporations distribute risks widely over
2. large populations, minimizing the risk to any
Select the reasons, historically speaking,
one individual.
why the modern corporation was
4
Corporations provide individuals with
established as a legal entity:
3. efficient means for the creation of wealth
and for supplying jobs.
4. All of the above.
5. 1.

11.

Post-conventional, conventional, preconventional

Which of the following are stages


according to L. Kohlberg's (1969) theory 2. Unrealistic, realistic, similar
of Cognitive Moral Development
3. Past, modern, post-modern

4. Moral, ethical, ethical theories


5. 1. True
2. False
11.

A "missed call" with previous


understanding is ethical.

3. -

4. 5. 1. justice

12.

2. socially accepted standards of conduct


Which of the following is not one of the
principles embodied in Kohlberg's sixth
3. human rights
stage of moral development, the
universal-ethical-principle orientation?

4. social welfare
5. 1. Deontological Theory (Kantian ethics)
2. Mills Utilitarian Theory
12.

The end justifies the means". This is


held by (select one):

3. Aristotle's Virtue Theory

4. 5. -

13.

A manager who refuses to discriminate


because she believes in the principle of
human equality, regardless of race, sex,
religion, or other perceived differences,
shows which level of Kohlberg's moral
development model?

1. preconventional
2. conventional
3. law and order

4. postconventional
5. 1. insensitivity to others' rights
2.
14.

ranks moral and financial factors equally in


decision making

cites the difficulty in making ethical


Which of the following would most likely
3.
decisions
as a reason to ignore ethics in
be exhibited by a moral manager?
business
4.

sees ethical criteria as outside the realm of


business activity

5. -

15.

The central question that moral


managers should ask themselves is

1.

"How much money can we make with this


decision or action?"

2.

"What is our motivation for this action or


decision?"

3.

"Is this action or decision fair to us and all


of our stakeholders who will be affected?"

4. "What are our moral standards?"


5. 1. become a moral manager.
2. make ethical decisions.
16.

The highest ethical goal for managers


should be to

3. create a moral organization.

4. become a virtuous person.


5. 1.
17.

The course of action with the best overall


cost-benefit balance is always morally best.

Actions whose costs outweigh their benefits


Which of the following is true under the
2.
1
are always immoral.
Utilitarian approach to moral evaluation?
3.

Actions whose benefits outweigh their costs


are always moral.

4. Both b and c.
5. -