Master Ethical Decision-Making in Business: Ethical Issues in Business Quiz

Question 1

Which of the following is NOT a prevalent ethical issue faced by businesses?

Accepted Answer

Tax optimization

Answer

Conflicts of interest

Answer

Insider trading

Answer

Environmental concerns

Question 2

Insider trading involves utilizing what type of information?

Accepted Answer

Non-public

Answer

Public

Answer

Historical

Answer

Market gossip

Question 3

Which concept is NOT a fundamental principle guiding ethical decision-making?

Accepted Answer

Self-interest

Answer

Utilitarianism

Answer

Deontology

Answer

Virtue ethics

Question 4

When it comes to business activities, environmental concerns primarily address:

Accepted Answer

Pollution and resource depletion

Answer

Employee safety

Answer

Customer satisfaction

Answer

Stockholder returns

Question 5

According to the traditional view of shareholder primacy, what is the primary obligation of a business to its shareholders?

Accepted Answer

Maximizing profits

Answer

Ensuring environmental sustainability

Answer

Promoting social justice

Answer

Providing employment opportunities

Question 6

Regarding companies operating in developing nations, what is a significant ethical challenge they face?

Accepted Answer

Balancing profitability and social responsibility

Answer

Ensuring product quality

Answer

Complying with local regulations

Answer

Protecting intellectual property

Question 7

What is a suggested approach for making ethical decisions in business?

Accepted Answer

Consulting with various stakeholders

Answer

Adhering to industry norms

Answer

Relying solely on personal judgment

Answer

Seeking legal counsel exclusively

Question 8

The primary purpose of the Sarbanes-Oxley Act of 2002 was to:

Accepted Answer

Prevent financial fraud and misconduct

Answer

Promote sustainable business practices

Answer

Reduce government regulations

Answer

Protect consumers from faulty products

Question 9

Revised: How do ethical dilemmas differ from ethical problems?

Accepted Answer

Revised: Ethical dilemmas involve conflicting principles, while ethical problems do not.

Answer

Revised: Ethical problems have clear answers, while ethical dilemmas do not.

Answer

Revised: There is no distinction between ethical dilemmas and ethical problems.

Question 10

Revised: According to utilitarianism, the ethical action is the one that:

Accepted Answer

Revised: Maximizes overall well-being

Answer

Revised: Adheres to moral principles

Answer

Revised: Protects individual rights

Question 11

Which of the following actions constitutes a conflict of interest?

Accepted Answer

A manager promoting a product in which they have a personal financial stake

Answer

An employee receiving a gift of nominal value from a supplier

Answer

A company making a donation to a non-profit organization

Answer

A board member holding shares in the company's subsidiary

Question 12

Which of the following is NOT considered a common ethical issue faced by businesses?

Accepted Answer

Employee retaliation

Answer

Conflicts of interest

Answer

Insider trading

Answer

Workplace discrimination

Question 13

What is the primary objective of ethical decision-making in business?

Accepted Answer

To act in a fair and just manner

Answer

To maximize profits

Answer

To comply with legal requirements

Answer

To avoid negative publicity

Question 14

Workplace discrimination can manifest itself in various forms. Which of the following is NOT a common form of workplace discrimination?

Accepted Answer

Favoritism based on personal relationships

Answer

Bias based on race or gender

Answer

Unequal pay for equal work

Answer

Denial of opportunities for advancement

Question 15

Which of the following is NOT a challenge in fostering ethical behavior in organizations?

Accepted Answer

Strong ethical leadership

Answer

Lack of clear ethical guidelines

Answer

Pressure to meet performance targets

Answer

Influence of personal biases

Question 16

Which ethical theory emphasizes the results or outcomes of actions?

Accepted Answer

Utilitarianism

Answer

Deontology

Answer

Virtue Ethics

Answer

Social Contract Theory

Question 17

Which ethical principle emphasizes the importance of respecting the rights and interests of all stakeholders?

Accepted Answer

Justice

Answer

Autonomy

Answer

Beneficence

Answer

Non-maleficence

Question 18

Which ethical theory emphasizes maximizing the well-being of the greatest number of people?

Accepted Answer

Utilitarianism

Answer

Deontology

Answer

Virtue ethics

Answer

Egoism

Question 19

Which ethical principle, discussed in the unit, emphasizes the importance of considering the long-term effects of business decisions?

Accepted Answer

Sustainability

Answer

Utility

Answer

Justice

Answer

Autonomy

Question 20

According to the stakeholder theory, as introduced in the unit, businesses have ethical responsibilities to:

Accepted Answer

All parties affected by their actions

Answer

Shareholders only

Answer

Employees only

Answer

Government agencies only

Question 21

The ethical dilemma of choosing between two equally desirable options is commonly referred to as a:

Accepted Answer

Catch-22

Answer

Moral hazard

Answer

Tragedy of the commons

Answer

Prisoner's dilemma

Question 22

Which of the following, discussed in the unit, is an example of a code of ethics for businesses?

Accepted Answer

The United Nations Global Compact

Answer

The Ten Commandments

Answer

The Declaration of Independence

Answer

The Bill of Rights

Question 23

According to the utilitarian perspective, introduced in the unit, the most ethical action is one that:

Accepted Answer

Produces the greatest good for the greatest number of people

Answer

Protects the rights of all individuals

Answer

Promotes virtues such as honesty and integrity

Answer

Avoids harming others

Question 24

Which provision is a central aspect of the Foreign Corrupt Practices Act (FCPA)?

Accepted Answer

Prohibits bribing foreign officials

Answer

Requires disclosure of environmental risks

Answer

Sets a minimum wage for employees

Answer

Establishes a universal code of ethics for leaders

Question 25

Identify the option that is NOT a typical ethical issue confronted by businesses?

Accepted Answer

Tax evasion

Answer

Conflicts of interest

Answer

Insider trading

Answer

Environmental concerns

Question 26

Insider trading involves using confidential company information to:

Accepted Answer

Buy or sell the company's stock

Answer

Negotiate a better salary

Answer

Acquire a promotion

Answer

Hire new employees

Question 27

Which principle is crucial for ethical decision-making in business?

Accepted Answer

Acting with integrity and fairness

Answer

Maximizing profits

Answer

Avoiding legal consequences

Answer

Complying with industry regulations

Question 28

A whistleblower is someone who reports unethical or illegal activities within a company.

Accepted Answer

True

Answer

False

Question 29

In deontological ethics, moral choices are primarily based on which of the following?

Accepted Answer

Duties and obligations

Answer

Consequences of actions

Answer

Intentions behind actions

Answer

Stakeholder values and interests

Question 30

How do ethical leaders shape organizational culture and decision-making?

Accepted Answer

Ethical leaders establish clear values and ethical expectations, fostering a culture of integrity.

Answer

Ethical leaders prioritize personal gain over the well-being of the organization.

Answer

Ethical leaders attempt to avoid taking responsibility for their decisions.

Answer

Ethical leaders make decisions solely based on financial considerations.

Question 31

What is the primary impact of ethical codes on an organization?

Accepted Answer

Shape organizational culture and guide ethical decision-making.

Answer

Have no significant influence on employee behavior.

Answer

Apply exclusively to senior management roles.

Question 32

Within the context of business ethics, which action would be considered a conflict of interest?

Accepted Answer

Making decisions primarily benefiting one's family or close associates.

Answer

Maintaining integrity in business dealings

Answer

Adhering to legal regulations

Question 33

Define the term 'insider trading' in the context of business ethics.

Accepted Answer

Trading stocks or securities based on undisclosed material information.

Answer

Trading based on publicly available information

Answer

Trading based on rumors or speculation

Question 34

Which of the following is a prevalent environmental concern for businesses?

Accepted Answer

Pollution

Answer

Economic growth

Answer

Technological advancements

Question 35

Define workplace discrimination in the context of business ethics.

Accepted Answer

Treating employees differently based on protected characteristics, such as race, gender, or religion.

Answer

Treating employees equally regardless of background

Answer

Providing growth opportunities for employees

Question 36

In the context of ethical decision-making, what is Utilitarianism?

Accepted Answer

An ethical framework that prioritizes the greatest good for the greatest number of people.

Answer

An ethical framework focused solely on individual rights

Answer

An ethical framework based on adherence to political ideologies

Question 37

What is the primary purpose of business ethics?

Accepted Answer

To provide guidance for businesses in making ethical decisions and acting responsibly.

Answer

To safeguard businesses against legal liabilities

Answer

To maximize business profits

Question 38

Explain the role of stakeholders in business ethics.

Accepted Answer

Stakeholders influence the ethical conduct of businesses through their actions and expectations.

Answer

Stakeholders have the authority to enforce ethical standards in businesses

Answer

Stakeholders have no role in promoting ethical behavior in businesses

Answer

Stakeholders make ethical decisions on behalf of businesses

Question 39

Identify a significant challenge in implementing ethical behavior in business.

Accepted Answer

Balancing the diverse interests of stakeholders

Answer

Establishing a strong ethical culture

Answer

Identifying ethical leaders

Question 40

A company CEO secretly buys shares in their own company before announcing a merger, leading to a large personal profit. This scenario best exemplifies:

Accepted Answer

Insider trading

Answer

Environmental negligence

Answer

Whistleblowing

Answer

Conflict of interest

Question 41

A manager needs to lay off employees due to company financial difficulties.  The manager realizes this will disproportionately impact older employees.  What ethical dilemma does the manager face?

Accepted Answer

Age discrimination

Answer

Conflict of interest

Answer

Bribery

Answer

Whistleblowing retaliation

Question 42

A company producing high-pollution products chooses to invest in expensive technology to minimize its environmental impact. This demonstrates:

Accepted Answer

Corporate social responsibility

Answer

Cost-cutting measures

Answer

Compliance with regulations

Answer

Greenwashing

Question 43

A supervisor asks an employee to falsify a report to reach a sales target.  The employee worries about the ethical implications.  Which ethical framework would best guide their decision?

Accepted Answer

Deontology

Answer

Utilitarianism

Answer

Virtue ethics

Answer

Ethical egoism

Question 44

A company uses misleading advertisements to promote a new product, raising ethical concerns about:

Accepted Answer

Truthfulness and transparency

Answer

Brand loyalty

Answer

Competitive pricing

Answer

Employee confidentiality

Question 45

A company considers outsourcing manufacturing to a country with lower labor costs but known for poor labor practices.  What ethical framework should guide their decision?

Accepted Answer

Deontology

Answer

Utilitarianism

Answer

Ethical relativism

Answer

Shareholder primacy

Question 46

A company developing a new technology with potential benefits but significant risks should prioritize which ethical principle in their decision-making?

Accepted Answer

Precautionary principle

Answer

First-mover advantage

Answer

Profit maximization

Answer

Competitive advantage

Question 47

A manager refusing a bribe from a supplier in exchange for a favorable contract demonstrates which ethical principle?

Accepted Answer

Integrity

Answer

Loyalty (to the supplier)

Answer

Negotiation skills

Answer

Empathy

Question 48

What is the primary purpose of a company's code of ethics?

Accepted Answer

To guide ethical decision-making for employees

Answer

To establish a system for punishing unethical behavior

Answer

To outline legal obligations and compliance requirements

Answer

To enhance the company's public image

Question 49

An employee witnessing a colleague's unethical behavior and reporting it to the company's ethics hotline exemplifies:

Accepted Answer

Whistleblowing

Answer

Corporate social responsibility

Answer

Regulatory compliance

Answer

Personal integrity