BUSN 100 MIDTERM EXAM APUS PRACTICE
QUESTIONS AND ANSWERS 2026
◉ A legal right of shareholders is: Answer: To vote on members for
the board of directors.
◉ The directors of a company are a central factor in corporate
governance because they: Answer: Exercise formal legal authority
over company policy.
◉ 1 out of 1 points
The board committee that administers and approves salaries and
benefits of high-level managers in a company is called: Answer:
Compensation.
◉ Which of the following is a key feature of effective boards of
directors? Answer: Hold regular meetings without the CEO present.
◉ One of the main reasons that American executives are paid so
much is: Answer: Pay is set by the compensation committees of the
board, largely comprised of other CEOs who have an interest in
pushing compensation up.
,◉ An argument that opposes the idea of high executive pay is:
Answer: High salaries divert resources that could be used to invest
in the business.
◉ An argument in support of high executive compensation is:
Answer: High salaries provide an incentive for innovation and risk-
taking.
◉ Which of the following is an example of fulfilling social objectives
through stock ownership? Answer: Divesting from Chinese
companies that made products using forced labor.
◉ People's ethical beliefs come from: Answer: Their religious
background, family, and education.
◉ People everywhere depend on ethical systems to tell them
whether their actions are: Answer: Right or wrong.
◉ Businesses are expected to be ethical in their relationships with:
Answer: All of these answers are correct.
◉ Why should business be ethical? Answer: All of these answers are
correct.
, ◉ A recent study found that, compared to the 1980s, managers
today place what importance on moral values, such as honesty and
forgiveness? Answer: Slightly more important.
◉ Scholars found that spirituality affects employee and
organizational performance in what way? Answer: Positively.
◉ The core components upon which a company's ethical
performance depends include: Answer: All of these answers are
correct.
◉ When attempting to build ethical safeguards into the company,
businesses can take the following specific approaches: Answer:
Compliance and Integrity.
◉ Which ethical criterion is described by the idea that a company
should strive for efficiency? Answer: Egoism.
◉ The unspoken understanding among employees of what is and is
not acceptable behavior is called: Answer: Ethical climate.
◉ Government's role is to create and enforce laws that: Answer:
Balance the relationship between business and society.
QUESTIONS AND ANSWERS 2026
◉ A legal right of shareholders is: Answer: To vote on members for
the board of directors.
◉ The directors of a company are a central factor in corporate
governance because they: Answer: Exercise formal legal authority
over company policy.
◉ 1 out of 1 points
The board committee that administers and approves salaries and
benefits of high-level managers in a company is called: Answer:
Compensation.
◉ Which of the following is a key feature of effective boards of
directors? Answer: Hold regular meetings without the CEO present.
◉ One of the main reasons that American executives are paid so
much is: Answer: Pay is set by the compensation committees of the
board, largely comprised of other CEOs who have an interest in
pushing compensation up.
,◉ An argument that opposes the idea of high executive pay is:
Answer: High salaries divert resources that could be used to invest
in the business.
◉ An argument in support of high executive compensation is:
Answer: High salaries provide an incentive for innovation and risk-
taking.
◉ Which of the following is an example of fulfilling social objectives
through stock ownership? Answer: Divesting from Chinese
companies that made products using forced labor.
◉ People's ethical beliefs come from: Answer: Their religious
background, family, and education.
◉ People everywhere depend on ethical systems to tell them
whether their actions are: Answer: Right or wrong.
◉ Businesses are expected to be ethical in their relationships with:
Answer: All of these answers are correct.
◉ Why should business be ethical? Answer: All of these answers are
correct.
, ◉ A recent study found that, compared to the 1980s, managers
today place what importance on moral values, such as honesty and
forgiveness? Answer: Slightly more important.
◉ Scholars found that spirituality affects employee and
organizational performance in what way? Answer: Positively.
◉ The core components upon which a company's ethical
performance depends include: Answer: All of these answers are
correct.
◉ When attempting to build ethical safeguards into the company,
businesses can take the following specific approaches: Answer:
Compliance and Integrity.
◉ Which ethical criterion is described by the idea that a company
should strive for efficiency? Answer: Egoism.
◉ The unspoken understanding among employees of what is and is
not acceptable behavior is called: Answer: Ethical climate.
◉ Government's role is to create and enforce laws that: Answer:
Balance the relationship between business and society.
