Business - D072 Practice Questions and
Answers (2026-2027)
In an effort to cut costs, an apparel factory is moving operations to another country where
labor is cheap and employment laws are less stringent. Costs can only be kept low if the
factory operates like a sweatshop. Which type of problem is this company facing? -
CORRECT ANSWERS-Legal-unethical
The chief executive officer (CEO) of a company decides to change the way the company
has been functioning over the years in order to improve its reputation.The CEO decides to
pay the employees a fair wage, show a good profit margin, and produce a reliable product.
But even after a year, there is not much change in the way the community perceives the
company. Which action will provide the improvement this CEO is seeking?" - CORRECT
ANSWERS-Investing in social and environmental causes
The chief executive officer (CEO) of a beverage company wants to promote a healthy
lifestyle to its customers. Which action will achieve this goal? - CORRECT ANSWERS-
Build a park for the community that includes walking trails
A manufacturing cosmetics company currently avoids testing its products on animals, but
the new chief executive officer (CEO) decides to begin that practice since it will help cut
company costs. Which impact will this have on the organization? - CORRECT ANSWERS-
It will be viewed as being unethical.
During a meeting, a senior manager became upset over an issue and used profanity when
responding to lower-level managers. The behavior disrupted the whole company. Which
organizational element of ethics did this manager violate? - CORRECT ANSWERS-
Culture
An act of violence occurs in the country. When a company leader is asked about the
situation by a colleague at lunch, the leader opens up to the colleague and expresses
concerns about the aggression associated with the event. Which ethical concept is driving
this leader's response? - CORRECT ANSWERS-Personal ethics
A junior accountant discovered fraud in the recording of accounts receivable and plans to
report this information to the local media. Which law protects this junior accountant from
retaliation by management of the company? - CORRECT ANSWERS-Sarbanes-Oxley
Act
, A company employee notices that a member of upper management is harassing a newly
hired employee. The employee reports this behavior to the local authorities. Which term
describes the action taken by the employee who reported the incident? - CORRECT
ANSWERS-Whistleblowing
A corporation is opening a new factory in a small rural community and would like to
demonstrate an ethical commitment to environmental responsibility in the new location.
Which action demonstrates this commitment? - CORRECT ANSWERS-Invite local
citizens to a tree-planting event along the town's main street
Which employee action illustrates a personal commitment to environmentally friendly
business processes that also benefit the organization and local community? - CORRECT
ANSWERS-Starting a recycling programming at the workplace to reduce landfill
waste
Which organizational department is responsible for target market identification? -
CORRECT ANSWERS-Marketing
An employee takes a set of goals and turns them into actionable items to assign to a team.
What is this employee's management role in the organization? - CORRECT ANSWERS-
Middle
A new manager of a sales department receives the monthly reports from all four of the
company's sales locations throughout the state. The manager must interpret this data to
set targets for sales for the next month and next quarter. Which skill set must this manager
possess to fulfill this job responsibility? - CORRECT ANSWERS-Analysis
Which organizational department is responsible for managing and overseeing employee
compensation and benefits? - CORRECT ANSWERS-Human resources
A manager encourages employees to think creatively and take risks to increase their
impact on the organization. Which type of organizational culture is reflected? - CORRECT
ANSWERS-Adhocracy
Which characteristic of an organization is considered in the Competing Values
Framework? - CORRECT ANSWERS-External versus internal focus of activity
Which characteristic must exist in order for new employees to perform well in an
organization prior to being fully trained? - CORRECT ANSWERS-Fit with the culture
An organization is known to have a culture that has a low tolerance for ambiguity. Which
personality type is ideally suited for this organizational culture? - CORRECT ANSWERS-
Rigorous