College of Management

Midterm Examination in BA 314

1st Semester, A.Y. 2021-2022
2022-2023

Name: ____________________________________________________ Date: __________________________

Course/Year/Section: ________________________________________ Score: _________________________

DIRECTIONS: Read the instructions carefully before answering. Avoid erasures.

Test I. Multiple choice: Choose the correct answer. Encircle
Blacken the
the letter
circleofthat correspondents
your choice. to the letter of your

1. It refers to the manner by which we try to live our lives according to a standard of “right” or “wrong” behavior.
a. value conflicts c. ethics
b. instrumental value d. intrinsic value
2. It is defined as the quality by which a value is a good thing in itself and is pursued for its own sake.
a. value conflicts c. ethics
b. instrumental value d. intrinsic value
3. Which of the following statements are TRUE about the definition of ethics?
a. The definition of what’s right or wrong is a result of many factors, including religion, traditions, and beliefs in
the society.
b. If the choice is not so clear, people look to the behavior of others to determine what is an acceptable standard of
right and wrong.
c. Ethics is a conscious choice to follow a set of moral standards or ethical principles that provide guidance in our
daily lives.
d. All of the statements given are true.
4. This is one of the basic categories of "doing the right thing" which looks at ethics from an external rather than an internal
viewpoint.
a. personal integrity c. rules of appropriate individual behavior
b. rules of appropriate behavior for a community or society d. simple truth
5. One of the basic categories of "doing the right thing" which remind us that we must eventually bring our personal value
system into a world that is shared with people.
a. personal integrity c. rules of appropriate individual behavior
b. rules of appropriate behavior for a community or society d. simple truth
6. A basic category of "doing the right thing" that represents the idea that the moral standards we develop for ourselves
impact our lives on a daily basis in our behavior.
a. personal integrity c. rules of appropriate individual behavior
b. rules of appropriate behavior for a community or society d. simple truth
7. This refers to an ethical theory which is also known as "utilitarianism".
a. virtue ethics c. universal ethics
b. ethical relativism d. ethics for the greater good
8. This refers to the normative ethical theories which emphasize virtues of mind, character and sense of honesty.
a. virtue ethics c. universal ethics
b. ethical relativism d. ethics for the greater good
9. It refers to the traditions of society, the people's personal opinions, and the circumstances of the present moment define
the people's ethical principles.
a. virtue ethics c. universal ethics
b. ethical relativism d. ethics for the greater good
10. Which of the following statements are NOT TRUE about resolving an ethical dilemma?
a. In reality, the “answer” to an ethical dilemma is often the lesser of two evils.
b. Ethical dilemma can't really be resolved in the sense that a resolution of the problem implies a satisfactory
answer to the problem.
c. The 3-step process for solving an ethical problem is to analyze the consequences and then the actions. After that,
make an evaluation.
d. The ends justify the means and that if there is no harm, there is no foul.
11. A classification of moral development wherein a person’s response to a perception of right and wrong is initially directly
linked to the expectation of punishment or reward.
a. ethical reasoning c. conventional
b. postconventional d. preconventional
12. It is defined as implementing appropriate business policies and practices with regard to arguably controversial subjects.
a. business ethics c. oxymoron
b. code of ethics d. ethical dilemma
13. This refers to the company’s written standards of ethical behavior that are designed to guide managers and employees in
making the decisions and choices they face every day.
a. business ethics c. oxymoron
b. code of ethics d. ethical dilemma
14. A perspective of business ethics wherein the summation of the customs, attitudes, and rules are observed within a
business.
a. corporate governance c. descriptive
b. normative d. stakeholder
15. This refers to a party that has an interest in a company and can either affect or be affected by the business.
a. corporate governance c. descriptive
b. normative d. stakeholder
16. This is a type of stakeholder wherein their interest lies on the economic growth and the protection of the local
environment.
a. Community c. employees
b. stockholders or shareholders d. customers
17. Which of the following statements are TRUE about the "rationalizations that can lead to misconduct" by Saul Gellerman?
a. A belief that the activity is safe because it will never be found out or publicized.
b. A belief that the activity is within reasonable ethical and legal limits.
c. A belief that the activity is in the individual’s or the corporation’s best interests.
d. All of the statements given are true.
18. It is the process or activities by which a company adds value to an article, including production, marketing, and the
provision of after-sales service.
a. value chain c. organizational ethics
b. organizational culture d. human resource management
19. This refers to the values, beliefs, and norms that all the employees of that organization share.
a. value chain c. organizational ethics
b. organizational culture d. human resource management
20. ______ are the principles and standards by which businesses operate.
a. value chain c. organizational ethics
b. organizational culture d. human resource management
21. A line function which coordinates the recruitment, training, and development of personnel for all aspects of the
organization.
a. Information Systems (IS/IT) c. Research and Development (R&D)
b. Finance d. Human Resource Management
22. Which of the following statements are NOT TRUE about the ethics of research and development?
a. R&D teams don't incorporate customer feedback from market research and competitive feedback from closely
monitoring their competition.
b. R&D professionals carry the responsibility for the future growth of the organization.
c. Defective products not only put consumers at risk but also generate negative press coverage.
d. R&D teams has to develop a product design that will allow the organization to capture and maintain a leading
position in its market.
23. Which of the following statements are NOT TRUE about "utilitarianism"?
a. It's an ethical theory that determines right from wrong by focusing on outcomes.
b. It is not a form of consequentialism.
c. It refers to the ethical choices that offer the greatest good for the greatest number of people.
d. It holds that the most ethical choice is the one that will produce the greatest good for the greatest number.
24. This refers to a finance function that indicates the certification of an organization’s financial statements, or “books,” as
being accurate by an impartial third-party professional.
a. accounting function c. auditing function
b. administrative function d. financial transactions
25. It is the process by which the flow of money through an organization is handled.
a. accounting function c. auditing function
b. administrative function d. financial transactions
26. The ______ keeps track of all those financial transactions by documenting the money coming in & money going out and
balancing the accounts at the end of the period.
a. accounting function c. auditing function
b. administrative function d. financial transactions
27. This is a situation in which one relationship or obligation places you in direct conflict with an existing relationship or
obligation.
a. bookkeeping technique c. generally accepted accounting principles
b. conflicts of interest d. ethical challenge
28. These are not a set of laws & established legal precedents, but a set of standard operating procedures within the
profession.
a. bookkeeping technique c. generally accepted accounting principles
b. conflicts of interest d. ethical challenge
29. It is defined as the actions of an organization that are targeted toward achieving a social benefit over and above
maximizing profits for its shareholders and meeting all its legal obligations.
a. corporate governance c. organizational ethics
b. inclusive management d. corporate social responsibility
30. Which of the following statements are TRUE about the definition of CSR?
a. It's a type of business self-regulation with the aim of being socially accountable.
b. CSR is a self-regulating business model that helps a company be socially accountable.
c. It is a management concept whereby companies integrate social & environmental concerns in their business
operations & interactions with their stakeholders.
d. All of the statements given are true.
31. It involves building permeable structures that allow for input from all levels of an operation & distributed power
structures that push out decisions & solution generation to all levels of the operation.
a. management by inclusion
b. social contract approach
c. management without conscience
d. instrumental approach
32. This is the perspective that a corporation has an obligation to society over and above the expectations of its shareholders.
a. management by inclusion
b. social contract approach
c. management without conscience
d. instrumental approach
33. This often occurs when the company/corporation run their business to make profit for them and stakeholder.
a. management by inclusion
b. social contract approach
c. management without conscience
d. instrumental approach
34. Which of the following choices is NOT INCLUDED among the major trends behind the CSR phenomenon?
a. Knowledge c. legislation
b. the failure of the public sector d. globalization
35. It refers to the spread of products, technology, information, and jobs across national borders and cultures.
a. Sustainability c. legislation
b. Transparency d. globalization
36. This aims to measure the financial, social, and environmental performance of a company over time.
a. triple bottom line c. universal ethics
b. utilitarianism d. organizational culture
37. This measures how environmentally responsible a firm has been.
a. Product b. planet c. people d. profit
38. This measures how socially responsible an organization has been throughout its history.
a. Product b. planet c. people d. profit
39. It refers to the amount of greenhouse gases released into the atmosphere by a particular human activity.
a. renewable energy b. greenhouse effect c. ecological sources d. carbon footprint
40. This is defined as the process by which organizations are directed and controlled.
a. corporate governance c. corporate citizenship
b. corporate social responsibility d. organizational ethics
41. Which of the following statements are NOT TRUE about corporate governance?
a. Corporate governance is concerned with how well organizations meet their obligations to all stakeholders.
b. Corporate governance is about the way in which boards neglect the running of a company by its managers.
c. Good corporate governance plays a vital role in underpinning the integrity and efficiency of financial markets.
d. Poor corporate governance weakens a company’s potential & can pave the way for financial difficulties.
42. They are the ones who supply equity or risk capital to the company by purchasing shares in the corporation.
a. CEO, CFO, COO b. stakeholders c. owners d. board of directors
 43. The _____ are a group of individuals who oversee governance of an organization.
a. CEO, CFO, COO b. stakeholders c. owners d. board of directors
44. The _______ oversees the financial reporting process & monitors internal controls over corporate expenditure.
a. audit committee c. creditors
b. corporate governance committee d. compensation committee
45. They are the ones assigned to monitor the ethical performance of the corporation & oversee compliance with the
company’s internal code of ethics.
a. audit committee c. creditors
b. corporate governance committee d. compensation committee
46. This is an approach which results in stiff financial penalties & leaves no room for explanation or error in compliance to
company guidelines.
a. social contract approach c. comply or else approach
b. instrumental approach d. comply or explain approach
47. This refers to a regulatory approach used in some European countries & is now recognized under the OECD principles of
corporate governance.
a. social contract approach c. comply or else approach
b. instrumental approach d. comply or explain approach
48. It is a step that leads to effective corporate governance which refers to the rotation of assignments that can avoid
typecasting.
a. mix up role c. ensure individual accountability
b. create a climate of trust and candor d. evaluate the board's performance
49. This refers to the step which leads to effective corporate governance wherein the board of directors & the senior
executives should be working in partnership toward the successful achievement of organizational goals.
a. mix up role c. ensure individual accountability
b. create a climate of trust and candor d. evaluate the board's performance
50. It is a step that leads to effective corporate governance which refers to approving without proper consideration
(Rubberstamping) that generates collective indifference.
a. mix up role c. ensure individual accountability
b. create a climate of trust and candor d. evaluate the board's performance

***************** GOD BLESS! *****************

Prepared by:

JOHN CARLO D. GUILLERMO/CLEOTILDE D. DELA CRUZ /JOHN KENETH A.ADA

Course Facilitators

Recommending Approval: Approved:

MAE ANN A. BALBINO, MM JANITA

FERDINAND D. T. DARIAGAN,
ANABO, DPA
PhD (Candidate)
Program Coordinator, BSBA Dean, CM

Checked:

MR. ROJOHN BIBAÑO