Answer the following questions. For questions that provide multiple-choice options, select the best answer by circling or highlighting the corresponding letter.
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What is business ethics?
- A. The study of how businesses can increase profits
- B. The principles and standards that guide behavior in the business world
- C. The legal regulations businesses must follow
- D. The marketing strategies employed by businesses
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Which of the following is a key component of ethical decision-making in business?
- A. Maximizing shareholder profits
- B. Considering the impact on all stakeholders
- C. Focus solely on consumer demand
- D. Following market trends
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What term describes a situation where a business decision is not only legal but also morally acceptable?
- A. Ethical dilemma
- B. Ethical compliance
- C. Ethical leadership
- D. Ethical responsibility
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Which of the following is an example of corporate social responsibility (CSR)?
- A. Reducing prices to attract more customers
- B. Donating a portion of profits to charity
- C. Outsourcing jobs to cut costs
- D. Increasing executive salaries
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Which of the following business practices is generally considered unethical?
- A. Transparent marketing
- B. Insider trading
- C. Fair pricing strategies
- D. Environmentally sustainable practices
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What does the term "conflict of interest" refer to?
- A. When two businesses compete for the same market share
- B. When an individual’s personal interests interfere with their duty to act in the best interest of others
- C. When a business has to choose between profit and ethics
- D. When employees have disagreements over policies
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Which of the following statements is true regarding whistleblowing?
- A. It is a form of corporate espionage.
- B. It is always illegal and punishable.
- C. It can be a means of exposing wrongdoing in an organization.
- D. It generally leads to the immediate termination of employment.
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What is the primary purpose of a code of ethics in a business?
- A. To increase production efficiency
- B. To outline the company's profit goals
- C. To provide guidelines for ethical behavior and decision-making
- D. To establish a competitive advantage in the market
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Which organization is known for establishing a set of ethical guidelines and codes for businesses?
- A. Securities and Exchange Commission (SEC)
- B. International Business Ethics Institute
- C. Better Business Bureau (BBB)
- D. World Trade Organization (WTO)
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Which ethical theory emphasizes duty and rules as the basis for moral behavior?
- A. Utilitarianism
- B. Deontology
- C. Virtue Ethics
- D. Relativism
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What is the main goal of ethical marketing?
- A. To deceive customers for higher sales
- B. To establish truthfulness and transparency in advertising
- C. To use aggressive tactics to dominate the market
- D. To focus solely on sales volume
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What is an ethical issue that many businesses face regarding employee treatment?
- A. Job performance evaluation
- B. Ensuring safe and fair working conditions
- C. Providing competitive salaries
- D. Offering promotional opportunities
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Which of the following is an example of an ethical concern regarding consumer privacy?
- A. Offering personalized services
- B. Collecting data without consent
- C. Implementing loyalty programs
- D. Advertising products honestly
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What is the term for the relationship of trust, mutual benefit, and expectations between a business and its stakeholders?
- A. Stakeholder theory
- B. Corporate governance
- C. Business partnership
- D. Social contract
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Which of the following describes a “greenwashing” practice?
- A. Implementing sustainable practices
- B. Misleading consumers about the environmental benefits of a product
- C. Creating environmentally friendly products
- D. Reducing carbon footprint through business operations
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What is one effect of unethical behavior on a business?
- A. Increased employee morale
- B. Improved public reputation
- C. Legal consequences and fines
- D. Higher customer loyalty
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What principle can guide businesses in determining the right course of action in ethical dilemmas?
- A. The principle of least resistance
- B. The principle of majority rule
- C. The principle of fairness and justice
- D. The principle of profitability
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Which of the following is an advantage of having a diverse workforce from an ethical standpoint?
- A. Decreased creativity
- B. Better risk management
- C. Increased groupthink
- D. Heightened employee turnover
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What is the primary reason companies give for engaging in unethical practices?
- A. To ensure employee satisfaction
- B. To achieve financial success quickly
- C. To comply with government regulations
- D. To enhance corporate responsibility
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Which ethical theory focuses on the outcomes or consequences of a decision to determine its morality?
- A. Utilitarianism
- B. Deontology
- C. Virtue Ethics
- D. Care Ethics
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What ethical principle is violated when a company engages in deceptive advertising?
- A. Integrity
- B. Fairness
- C. Accountability
- D. Transparency
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What role do ethics play in corporate governance?
- A. They are optional and not very influential
- B. They guide management decisions and operations
- C. They complicate the decision-making process
- D. They serve to increase profits only
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What is one key to fostering an ethical workplace culture?
- A. Punishment for mistakes
- B. Open communication and support
- C. Emphasis on competition among employees
- D. Strict policies with no flexibility
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Which of the following factors most strongly influences a business's ethical standards?
- A. Economic conditions
- B. Corporate leadership and management values
- C. Industry trends
- D. Employee demographics
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How can businesses measure the effectiveness of their ethical practices?
- A. By increasing profit margins
- B. Through employee and stakeholder feedback
- C. By comparing market shares
- D. By evaluating product returns