SAHAY INSTITUTE

Chapter 6

Social Responsibility of Business and

Business Ethics

Multiple Choice Questions

Q. 1. A firm is required by law to fulfil its social obligations also known as social
responsibility.

(A) The statement is true

(B) The statement is false
(C) Depends on the law
(D) Depends on the social obligation

Q. 2. Which of the following is incorrect regarding social responsibility:

(A) It involves an element of voluntary action on the part of business

(B) It involves the question of what is morally right or wrong in relation to the
firm's responsibilities
(C) It involves the obligation to take decisions and perform actions which are
desirable in terms of the objectives and values of our society.
(D) All the statements are correct.

Q. 3. CSR stands for which of the following

(A) Company Social Responsibility

(B) Corporate Social Responsibility
(C) Corporate Societal Responsibility
(D) Corporate Shared Responsibility
0.4. As per the Companies Act, Corporate Social Responsibility (CSR) provisions
are applicable to which companies?

(A) Companies with an annual turnover of ₹ 1,000 crore and more

(B) Companies with a net worth of ₹ 500 crore and more
(C) Companies with a net profit of ₹ 5 crore and more
(D) All of the above

Q. 5. The Companies Act encourages companies to spend what percentage of

their average net profit in the previous three years on CSR activities?

(A) 1%
(B) 2%
(C) 3%
(D) 5%

Q. 6. If a company aims at fulfilling the social obligations then it has to

compromise with its goal of profit maximization. Thus, social responsibility and
profit maximization cannot go hand-in-hand

(A) True
(B) False
(C) Depends on the nature of business
(D) Depends on the social obligation to be fulfilled

Q. 7. Which of the following statements is false regarding social responsibility:

(A) There are four kinds of social responsibility namely economic, legal, ethic
and discretionary.
(B) Supplying right quality and quantity of goods and services to consumers at
reasonable prices constitutes the social responsibility of business toward its
customers.
(C) Social responsibility of business is only towards its owners.
(D) Fair wages for workers indicate social responsibility of business towards its
workers.

Q. 8. Social interests and business interests are .........

(a)Contradictory (b) Complementary

(c) Conflicting (d) Counteractive

Q. 9. Which of the following statements is true regarding the environment:

(A) It includes only natural resources

(B) It includes only man-made resources
(C) It includes both natural and man-made resources
(D) There is no deterioration in the environment due to industrial activity

Q. 10. Which of the following is not an environmental problem

(A) Ozone depletion

(B) Global warming
(C) Afforestation
(D) Danger to biological diversity

11. Which gas emitted by automobiles causes air pollution which lowers the air
quality?

(A) Carbon dioxide

(B) Nitrogen
(C) Carbon monoxide
(D) Oxygen

Q. 12. Which pollution has created a hole in the ozone layer resulting in the
dangerous warming of the earth?

(A) Water pollution

(B) Air pollution
(C) Land pollution
(D) Noise pollution

Q. 13. Noise is not merely a source of annoyance but it also poses some serious
health hazards. In the light of this statement which of the following is incorrect

(A) It is caused by the running of factories

(B) It is caused by vehicles
(C) It cannot be controlled in order to protect the environment
(D) It can be responsible for many diseases like loss of hearing, etc

Q. 14. Which of the following is an essential step that can be taken by business
firms for the purpose of environmental protection:

(A) Commitment by top management for environmental protection and

pollution prevention.
(B) Clear-cut policies and programmes for the purpose of pollution control.
(C) Complying with the laws and regulations enacted by the government for
prevention of pollution.
(D) All of the above

Q. 15. Which pollution makes the land unfit for agriculture or plantation?

(A) Air pollution

(B) Water pollution
(C) Land pollution
(D) Noise pollution

Q. 16. Which of the following does not cause any pollution?

(A) Dumping of toxic wastes on land

(B) Dumping waste into rivers, streams and lakes
(C) Recycling waste instead of disposal
(D) Smoke and other chemicals from manufacturing plants

Q. 17. Social responsibility is

(A) Same as legal responsibility

(B) Broader than legal responsibility
(C) Narrower than legal responsibility
(D) None of them

Q. 18. If business is to operate in a society which is full of diverse and

complicated problems, it may have

(A) Little chance of success

(B) Great chance of success
(C) Little chance of failure
(D) No relation with success or failure

Q. 19. Business people have the skills to solve

(A) All social problems

(B) Some social problems
(C) No social problems
(D) All economic problems

Q.20. That an enterprise must behave as a good citizen is an example of its

responsibilities towards

(B) Workers
(A) Owners
(C) Consumers
(D) Community

Q. 21. Environment protection can best be done by the efforts of

(A) Business people

(B) Government
(C) Scientists
(D) All the people

Q. 22. Carbon monoxide emitted by automobiles directly contributes to

(A) Water pollution

(B) Noise pollution
(C) Land pollution
(D) Air Pollution

Q. 23. Which of the following can explain the need for pollution control?

(A) Cost savings

(B) Reduced risk of liability
(C) Reduction of health hazards
(D) Allof them
Q. 24. Match the following stakeholders given in column I with expected social
responsibility of enterprise given in column II.

Column I Column II
1. Employee (i) To provide the desired quality of
goods and services
2. Consumers (ii) To provide good working
conditions and satisfactory
remuneration
3. Government (iii) To generate more employment
opportunities
4. Community (iv) To respect the laws of land

(A) 1. (ii), 2. (iii), 3. (iv), 4. (i)

(B) 1. (iv), 2. (iii), 3. (ii), 4. (i)
(C) 1. (iii), 2. (i), 3. (iv), 4. (ii)
(D) 1. (ii), 2. (i), 3. (iv), 4. (iii)

Q. 25. Match the following responsibilities given in column II with the suitable
examples given in column I.

Column I Column II
1. Employment to physically (i) Economics responsibility
challenged persons
2. Environment friendly methods of (ii) Discretionary responsibility
production
3. Payment of GST (iii) Ethical responsibility
4. Production of good quality goods (iv) Legal responsibility
and services

(A) 1. (iv), 2. (ii), 3. (i), 4. (iii)

(B) 1. (ii), 2. (iv), 3. (iii), 4. (i)
(C) 1. (iii), 2. (ii), 3. (iv), 4. (i)
(D) 1. (ii), 2. (iii), 3. (iv), 4. (i)

Q. 26. Match the following types of pollution in column I with the relevant
causes given in column II
Column I Column II
1. Land pollution (i) Industrial and commercial activities
done by businessman
2. Air pollution (ii) Dumping of toxic waste in water
bodies
3. Noise pollution (iii) Smoking, chemicals of
manufacturing plants created a hole in
the ozone layer, which is created
pollution
4. Water pollution (iv) Dumping of toxic wastes on land.

(A) 1. (iv), 2. (iii), 3. (i), 4. (ii)

(B) 1. (ii), 2. (i), 3. (iv), 4. (iii)
(C) 1. (iii), 2. (iv), 3. (ii), 4. (i)
(D) 1. (iv), 2. (ii), 3. (i), 4. (iii)

Q. 27. Sudha is the owner of Tidy Fans Pvt. Ltd. She has registered the company
under the Companies Act. Her company has an annual turnover or more
than ₹1,000 crores.

Choose which of the following responsibility will be applicable to Sudha's

company?

(A) Corporate Social Responsibility

(B) Legal Responsibility
(C) Ethical Responsibility
(D) Economic Responsibility

Q. 28. Shyam runs a business of marble. He is a wholesaler of marble and

supplies the product to various retailers and distributors. He has decided to
keep the communication in business very effective and to offer opportunities for
participation of shareholders in policy decisions

Considering the case above, identify the stakeholders towards whom Shyam is
fulling his responsibilities.
(A) Responsibilities towards other businessmen
(B) Responsibilities towards his employees
(C) Responsibilities towards creditors and investors

(D) None of the above

Q. 29. Mohit's class teacher asked him to note down a list of types of pollution.
He listed down and was curious to know which of these is affecting our ozone
layer.

Identify which of the below mentioned pollution affects the ozone layer?

(A) Land pollution

(B) Water pollution
(C) Air pollution
(D) Noise pollution

Q. 30. Sushant has joined an environmental protection company. Their job is to

identify causes and factors that cause harm to environment and work towards
resolving it.

Sushant has made a list of factors affecting environment or the environmental

problems.

Identify which of the below options is not one of them?

(A) Deforestation
(B) Ozone depletion
(C) Afforestation
(D) Land degradation

Q. 31. Sumit works in a factory manufacturing plant of chemicals used to clean

surfaces. This manufacturing process is done by using several machines, which
emits toxic wastes and smoke

Identify the type of pollution Sumit's factory is causing.

(A) Land pollution

(B) Air pollution
(C) None of the them
(D) Both (A) and (B)