1.

The elements of the management system in a quality environment of TQM are

_____.

(a) Method and procedure

(b) Process

(c) Focus

(d) All of the above

Answer: (d) All of the above

2. Which statement is/are ‘True’?

(a) Skills are not enduring due to fatigue

(b) The final proof of sincerity and seriousness is the uncompromising emphasis on
the integrity of character in a job

(c) The mental contents of the good person are called moral and ethical values

(d) All of the above

Answer: (d) All of the above

3. Milton Friedman stated his belief that ‘there is only one social responsibility for a
company to use its resources to _____.

(a) Give as much to charitable causes as possible

(b) Ensure employment

(c) Provide good facilities for workers

(d) Increase profits so long as it stays within the rules of the game

Answer: (d) Increase profits so long as it stays within the rules of the game

4. According to the concept of moral intensity, a worker is most likely to behave

ethically and legally when______.

(a) A manager observes his or her behaviour closely

(b) The worker has intense morals

(c) The consequences of the act are minor

(d) The consequences of the act are substantial

Answer: (d) The consequences of the act are substantial

5. The national Society of Professional Engineers had a code, which requires

professionals to _____.

(a) Dissociate themselves from organisations that are of a questionable character

(b) Further the cause of public good

(c) Advise clarity, the consequences, if a technical opinion is overruled by a non-

technical person

(d) All of the above

Answer: (d) All of the above

6. Which of the following statements about ethical standards is/are ‘True’?

(a) The upper limits of ethical standards are set by individual standards

(b) The laws of economically developed countries generally define the lowest
common denominator of acceptable behaviour

(c) The actual degree of enforcement of the law in an underdeveloped country would
determine the lower limit of permissible behaviour

(d) All of the above

Answer: (d) All of the above

7. Which of the following alone can ensure an effective ethics program in a business
enterprise?

(a) Publication of a code

(b) Involvement of employees

(c) Establishment of compliance mechanisms

(d) None of them

Answer: (b) Involvement of employees

8. If a business is to operate in a society that 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

Answer: (a) Little chance of success

9. Which statement is/are ‘True’?

(a) Human values system plays a vital role in total quality management

(b) Values give the real meaning to total quality management effort

(c) Total quality management is a corporate management strategy

(d) All of the above

Answer: (d) All of the above

10. The hand-of-government refers to the _____.

(a) The ability of the government to interfere in business negotiations

(b) Role of corporations to be profitable within the law

(c) Effect of national politics on business decisions

(d) Impact of changing government regulations

Answer: (d) The consequences of the act are substantial

11. The business community’s aversion to binding international legal standards

governing corporate operations contrasts with its strong advocacy of international
law commitments applied to the obligation of governments towards _____.

(a) Banks
(b) Business and Shareholder itself

(c) Suppliers

(d) Foreign investors

Answer: (d) Foreign investors

12. The ethical dilemma of choosing between two rights refers to _____.

(a) Choosing between the lesser of two evils

(b) Deciding which of two employee rights is the most important

(c) Deciding to offer a bribe or lose out on an important opportunity

(d) Choosing between the two types of sexual harassment

Answer: (a) Choosing between the lesser of two evils

13. Which statement is/are ‘True’?

(a) Ethics is not synonymous with religious morality or moral theology

(b) Ethics is the principle that guides the human behaviour

(c) The terms ‘ethics’ and ‘morality’ are not synonymous terms

(d) All of the above

Answer: (d) All of the above

14. Social responsibility is _____.

(a) Same as a legal responsibility

(b) Broader than legal responsibility

(c) Narrower than legal responsibility

(d) None of them

Answer: (b) Broader than legal responsibility

15. Which of the following does not contribute to the development of a manager’s
standard of ethics?
(a) Competitor behaviours

(b) Society’s norms and values

(c) Individual life experiences

(d) Environmental situations

Answer: (a) Competitor behaviours