Pre-Requisite Competency (PRC) Stage Examination

60 minutes – 50 marks

Name: ____________________ Rise ID: ________________ Batch # _______

PRC 05- ITB (Teacher: Mr. Zia Ul Haq)
Test # 6 (Chapter 6)

1. Appropriate conduct is related to

a. Marketing b. Sales c. Ethics d. None of these
2. Selling goods with two year warranty and claiming that the product life is 10 yeas, despite knowing that the
product‘s actual life is only 5 years. This is the example of which of the following business ethical issue?
a. Giving or allowing false information b. Violating rules.
c. Taking unfair advantage d. None of the above
3. Showing respect for human rights Come under
a. Ethics b. Sales c. Marketing d. Budget
4. Foody Woody offers foods, using poor quality ingredients which may be hazardous to the health of its customers.
On visit of food inspector, the chef did not give details of the quality of ingredients being used by the restaurant. This
is an example of:
a. Violating rules b. Saying things you know are not true
c. Hiding information d. All of the above
5. which one is ethical issue?
a. Taking things that don't belong to you b. saying things Know are not true
c. Giving false impressions d. all of these
6. Taking unfair advantage is.
a. morality b. Decency c. immorality d. all of these.
7. Reprimanding employees in the presence of Customers is:
a. appreciated b. A busing power
c. need of the hour d. Experience
8. Misuse of organization time is
a. smartness b. Immoral
c. wisdom d. Ethics
9. Mirror test is related to
a. Marketing b. screening
c. business purpose d. Ethics
10. CSR stands for
a. cool social responsibility b. corporate social responsibility
c. Committee stands Right d. None of these
11. Tick the principles of CSR.
a. Organization should treat its employees fairly b. Organization must respect human rights
c. Organization should not tolerate child labor d. all of these
12. Donating money products or services to social Causes is called,
a. Philanthropy b. Marketing
c. sales enhancement d. all of There
13. What are the Consequences of Unethical behavior_?
a. Reputation risk b. Productivity level decrease
c. Loss of respect d. All of these
14. Recognizing is the most important step in understanding business ethics.
a. Business issues b. Ethical issues
c. Financial issues d. Management issues
15. Being neutral is called
a. intelligent b. objective
c. innocent d. none of These
16. What is being straight forward and honest Called
a. steadfast b. objective
c. Integrity d. none of these
17. Which of the following is “an identifiable problem, situation, or opportunity that requires a person to choose from
among several actions that may be evaluated as right or wrong, ethical or unethical.”?
a. Ethical conduct b. Business issue
c. Ethical considerations d. None of the above
18. Helping the deprived is called .......
a. MICR b. CSR
c. manners d. none of these
19. How can organizations Sustain the environment?
a. Fund raising b. Helping govt
c. Price reduction d. reducing pollution
20. Which is related to accountability?
a. Mirror test b. Price hike
c. Being steadfast d. All of these
21. Which of the following refers to the obligations to take decisions and perform actions which are desirable in terms
of objectives and values of the society.
a. Ethical conduct b. Social responsibility
c. Social welfare d. Business responsibility
22. Every organization, including non profits, has to manage the ethical behavior of ___in the overall operations of the
organization.
a. General public b. Its employees and stakeholders
c. Regulators d. Customers
23. In view of business ethics, proper governance process must be put in place to achieve key goals and objectives of
an organization through ____decision- making, and socially responsible management?
a. Profitable b. Good
c. Ethical d. None of the above
24. Being the most common ethical issue identified by employees, which of the following exists when a person must
choose whether to advance his or her own personal interests or those of others?
a. Ethical conflicts b. Business risk
c. Interest of ethics d. Conflict of interest
25. Which of the following is the characteristic of professional competence and due care?
a. To be straight forward and honest in all professional and business relationship.
b. To act the diligently and in accordance with applicable technical and professional standards
c. To respect the confidentially acquired as a result of professional and business relationships
d. None of the above
26. Insider trading is an example of_______
a. Business ethics b. Conflict of interest
c. Business conflicts d. None of the above
27. Funky Ltd, a company engaged in production of washing powder. For the promotion of its product, the company
falsely exaggerates the qualities and features of the product in an advertisement to attract customers even though the
compnany knows that in reality the product does not have such qualities and features. This is the example of which of
the following business ethical issue?
a. Violating rules b. Reputation risk
c. Condoning unethical actions d. Saying things you know are not true
28. Super company offers a packet of three biscuit at a discount by offering to save up to Rs 20/- on the packet.
However, the company has reduced the size of the biscuit in the packet from its standard size. This practice is___.
a. Illegal but ethical b. Legal and ethical
c. Illegal and unethical d. Legal but unethical
29. Selling goods on discount nearing expiry when business knows the product life is short and will not be usefully by
the time customers uses it. Is this practice ethical?
a. Yes b. No
30. McDonald offers tasty foods, using special recipes. An employee who works in the kitchen informed the KFC about
materials purchased by McDonald and used in making its special items. This is an example of:
a. Violating rules b. Saying things you know are not true
c. Divulging information d. All of the above
31. Child labor is against
a. Corruption b. Constitution
c. Ethical Code d. None of these
32. Many current consumer protection laws were passed because so many businesses took unfair advantage of
people who were _______or were unable to discern the nuances of complex contracts.
a. Professionals b. Employees
c. Uneducated d. Poor
33. Ethics are related to
a. Marketing b. Sales
c. Budget d. Fair Dealing
34. Which one of the following cannot be the consequence of unethical behavior.
a. Payment of fines to authorities or compensation to individuals who have suffered as a consequence of illegal
behavior.
b. When business act legally but in a way that the general public considers immoral, there is risk of action by the
government to make such action illegal.
c. Businesses that act in an unethical way are also exposed to reputation risk.
d. None of the above
35. Which of the following is the main aspect of CSR.
a. An organisation should not operate in an ethical way and with integrity.
b. An organisation should treat its employees unfairly and with respect.
c. An organisation should play a responsible role in its community.
d. All of the above
36. It is difficult for employees to determine what conduct is acceptable within an organization, if___
a. the firm does not conduct training programs for their employees
b. the firm does not establish ethical policies and standard
c. the firm does not employ qualified personnel
d. All of the above
37. Attending ____events says a lot about organization's sincerity.
a. Business b. Organization’s own
c. Volunteer d. Governmental
38 IFAC is a global organization of the accountancy profession comprising more than 157 member and associate
organizations in 130 countries and jurisdictions, representing nearly 3 million professional accountants.
a. True b. False
39. An organisation should do what it can to sustain the environment for future generations. This could take the form
of:
a. Reducing pollution of the air, soil and water
b. Re-cycling of waste materials.
c. Developing a sustainable business, whereby all the resources used by the organisation are replanished
d. All of the above
40. The effectiveness of a code of ethics depends on the of the organisation’s directors, senior managers and ______
a. Reputation b. Leadership
c. Ethical standards d. Financial position
41. If a lack of ethics in a business becomes public knowledge, it may result in ___.
a. Business liquidation b. Severe penalty
c. Loss of business credibility d. None of the above.
42. For ethical codes are to be effective, then:
a. Training must be given. If not, many employees might not even be aware that it exists, let alone know how to apply it.
b. The code must be kept up-to-date.
c. The code must be available to all, for example, through the corporate intranet.
d. All of the above
43. Social responsibility in business is also known as_____.
a. Company’s responsibility b. Corporate social responsibility
c. Business social responsibility d. None of the above
44. Tana and Bana are two business owners. They are invited on a dinner. During the event, they get into a debate
which gets heated. Both Tana and Bana lose their cool and get into a verbal fight. This behavior demonstrates
violation of the fundamental principle of professional ethics.
a. Confidentiality b. Professional competence and due care
c. Professional behavior d. Objectivity
45. Being socially responsible, business encourages customers to pay a premium for some products knowing that part
of the profits will be channeled towards _____ causes near and dear to them.
a. Business b. Social
c. Cultural d. International
46. Organisations with a good reputation find it easier to win and keep loyal customers, and also loyal employees.
When a business reputation is damaged, there is a risk of losing customers to_________ organisations.
a. International b. Rival
c. Reputable d. None of the above.
47. Conflict of interest occurs when the official responsibilities of an employee or government official are influenced
by the potential for _____gain.
a. Business b. Public
c. Personal d. Professional
48. Orange is a multinational company. Its Malta branch has hired children against the company policy. But the
company does nothing against the branch and remains silent. This illustration represents which of the following head
of business ethical issues.
a. Hiding or divulging information b. Committing improper personal behaviour
c. Permitting organizational abuse d. All of the above
49. The fundamental principle of integrity is to be straightforward and honest in all ____ and ____ relationship.
a. Social, public b. Professional, business
c. Ethical, cultural d. All of the above
50. If ethical codes are to be effective then they must strongly be endorsed from the_____of organization.
a. Top b. Bottom
c. Mid d. Manager.