BUSN 1003 EXAM 1 QUESTIONS WITH CORRECT ANSWERS LATEST UPDATE 2026
ethics - Answers Principles of right and wrong that influence behavior are known as
profitable - Answers The global social responsibility pyramid consists of good global corporate
citizenship, ethical behavior, obeying the law, and being
philanthropy - Answers The term for charitable donations that aim to benefit mankind is
Sarbanes-Oxley Act of 2002 - Answers The ______ established protections for whistleblowers,
recordkeeping requirements for public companies, and penalties for non-compliance.
lawsuits resulting from illegal behavior - Answers _______ can hurt a company's profitability
ethics officer - Answers An _____ is an employee who integrates the organization's ethics and values
initiatives, compliance activities, and business conduct practices into the company's decision-making
processes
corporate social responsibility pyramid - Answers The _____ is a guide for thinking about the day-to-
day practical and moral matters that businesses encounter
training program in ethics - Answers Organizing a _____ is one way for managers to support high
ethical standards.
corporate social responsibility - Answers Because businesses create certain problems (such as
environmental pollution), they should also help solve those problems. This statement is an argument
in favor of
help solve the problems they create - Answers Alvarez Construction Company was hired by the
county to build a meeting hall at Greenleaf Park. During its work, the company left trash all over the
construction site, displaced birds and other wildlife, and created noise that disturbed park visitors. To
make up for the problems they caused at the park, the company organized a company-wide clean-up
week and left the park more attractive and sustainable than ever. This is an example of the attitude
that because businesses create some problems, they should
fraud - Answers A form of ________ that can hurt a company is improperly inflating reports of
financial results.
sweatshop - Answers A place where workers labor long hours for low wages, usually under
environmentally, physically, or mentally abusive conditions, is known as a
maximizing profits - Answers An argument against corporate social responsibility is that if a firm is
distracted from ________, society will suffer.
the UN Global Compact - Answers "Businesses should uphold the abolition of child labor" is one the
principles of
sustainability - Answers A key area of a social audit known as ________ involves evaluating whether a
company's economic development meets present needs without endangering the ability of future
generations to meet their own needs.
social audit - Answers A ________ is a systematic assessment of a company's performance in
implementing socially responsible programs, often based on predefined goals.
corporate policy - Answers Evaluating a company's ________, or its stated positions on political and
social issues, is only a starting point toward measuring its social responsibility.
guide - Answers A code of ethics is a written set of standards intended to ________ a company's
actions.
supports charities - Answers One of the key goals of a social audit is evaluating whether a company
laws - Answers ________ are rules of conduct or action that are formally recognized as binding and
are enforced by a controlling authority.
compliance-based - Answers A compliance-based ethics code attempts to prevent ________ by
increasing control and by punishing violators.
profitable - Answers According to the global social responsibility pyramid, a company's first duty is to
be
the United Nations - Answers The Global Compact is a voluntary agreement established in 2000 by
________ that promotes human rights, good labor practices, environmental protection, and anti-
corruption standards for businesses.
a company sends supplies to hurricane victims - Answers Which of the following situations is an
example of corporate social responsibility?
socially responsible - Answers When a corporation is ________, it can improve people's lives.
whistleblower - Answers A ________ is an employee who reports organizational misconduct, such as
fraud, overcharging, or health and safety problems, to the government or the public.
, code of ethics - Answers One way to make sure that employees understand a company's
expectations and guidance for how to act ethically and responsibly is to establish a
ethics - Answers A code of ________ is a written set of standards intended to guide an organization's
actions.
behavior - Answers The term value refers to a deeply held underlying belief or attitude that helps
determine people's
compliance-based - Answers A(n) ________ ethics code attempts to prevent criminal misconduct by
increasing control and by punishing violators.
market - Answers The ________ price reflects what the consumer is willing to pay.
the consumer price index (CPI) - Answers ________ encapsulates the monthly costs of a "market
basket" of about four hundred representative consumer goods and services (including food, clothing,
and medical services) that allow data analysts to measure the rate of inflation or deflation.
factors of production - Answers The means for developing goods and services and for satisfying
consumers' demand are
socialism - Answers ________ is an economic system in which the government owns some major
industries, but individuals own smaller businesses.
socialism - Answers Sven grew up in Norway where the government provides social programs for its
citizens, like health insurance, social security, and pensions. Norway's economic system is
gross domestic product (GDP) - Answers Barbara is an economist and has been asked to calculate the
value of all goods and services that the United States has produced this year. Barbara is calculating
communism - Answers Which economic system originated with Karl Marx in the nineteenth century?
knowledge - Answers A'ja opened her own consulting firm last year specializing in technology
training. She knows that companies in the marketplace are always looking for ways to keep their
employees current with new technology, so A'ja dedicates a portion of her week to studying
technology trends. She uses this information to develop new programs that will add additional value
for her customers. Which of the factors of production does this best represent?
demand - Answers ________ expresses how willing and able buyers are to purchase goods and
services at different prices.
supply - Answers ________ expresses how willing and able sellers are to provide goods and services
at different prices.
communist - Answers Peter lives in a country where the government owns businesses, homes, and all
other forms of property. All of Peter's friends and family hold jobs but none of them work for private
employers. Peter most likely lives in a(n) ________ country.
own property - Answers The foundation of all the other rights in a capitalist system, the first basic
right is the right to
monopoly - Answers Proteus Gas and Electric is the sole provider of gas and electricity in the state. It
is able to increase and decrease prices as it sees fit. Proteus can best be described as which of the
following types of free markets?
gross domestic product - Answers The total value of all the goods and services that a country
produces within its borders in one year is called
culture - Answers To operate successfully, capitalist countries must grant four basic rights. These
rights must be supported by laws, institutions, infrastructure, and
consumer sovereignty - Answers Consumers exercise ________, the idea that consumers influence
the marketplace through their decisions of which products they choose to buy or not to buy.
Japan - Answers Which country has capitalism as its economic system?
a monopoly - Answers A utility company is an example of
contraction - Answers During which phase of the business cycle does the pace of economic activity
slow down and GDP falls?
monopolistic competition - Answers There are many health food stores in Moses's community, but
only one in his neighborhood, so he frequents that one. What kind of market does this store face?
perfect competition - Answers In ________, the market has many small sellers who sell
interchangeable products to many informed buyers, and no seller is large enough to dictate the price
of the product.
unemployment rate - Answers The ________ is the level of joblessness among people sixteen years
or older actively seeking work.
market price - Answers Gigiwidgets are an incredibly popular new toy. When they initially hit the
market, they were very hard to find, especially as demand grew. Over the past few months, the
ethics - Answers Principles of right and wrong that influence behavior are known as
profitable - Answers The global social responsibility pyramid consists of good global corporate
citizenship, ethical behavior, obeying the law, and being
philanthropy - Answers The term for charitable donations that aim to benefit mankind is
Sarbanes-Oxley Act of 2002 - Answers The ______ established protections for whistleblowers,
recordkeeping requirements for public companies, and penalties for non-compliance.
lawsuits resulting from illegal behavior - Answers _______ can hurt a company's profitability
ethics officer - Answers An _____ is an employee who integrates the organization's ethics and values
initiatives, compliance activities, and business conduct practices into the company's decision-making
processes
corporate social responsibility pyramid - Answers The _____ is a guide for thinking about the day-to-
day practical and moral matters that businesses encounter
training program in ethics - Answers Organizing a _____ is one way for managers to support high
ethical standards.
corporate social responsibility - Answers Because businesses create certain problems (such as
environmental pollution), they should also help solve those problems. This statement is an argument
in favor of
help solve the problems they create - Answers Alvarez Construction Company was hired by the
county to build a meeting hall at Greenleaf Park. During its work, the company left trash all over the
construction site, displaced birds and other wildlife, and created noise that disturbed park visitors. To
make up for the problems they caused at the park, the company organized a company-wide clean-up
week and left the park more attractive and sustainable than ever. This is an example of the attitude
that because businesses create some problems, they should
fraud - Answers A form of ________ that can hurt a company is improperly inflating reports of
financial results.
sweatshop - Answers A place where workers labor long hours for low wages, usually under
environmentally, physically, or mentally abusive conditions, is known as a
maximizing profits - Answers An argument against corporate social responsibility is that if a firm is
distracted from ________, society will suffer.
the UN Global Compact - Answers "Businesses should uphold the abolition of child labor" is one the
principles of
sustainability - Answers A key area of a social audit known as ________ involves evaluating whether a
company's economic development meets present needs without endangering the ability of future
generations to meet their own needs.
social audit - Answers A ________ is a systematic assessment of a company's performance in
implementing socially responsible programs, often based on predefined goals.
corporate policy - Answers Evaluating a company's ________, or its stated positions on political and
social issues, is only a starting point toward measuring its social responsibility.
guide - Answers A code of ethics is a written set of standards intended to ________ a company's
actions.
supports charities - Answers One of the key goals of a social audit is evaluating whether a company
laws - Answers ________ are rules of conduct or action that are formally recognized as binding and
are enforced by a controlling authority.
compliance-based - Answers A compliance-based ethics code attempts to prevent ________ by
increasing control and by punishing violators.
profitable - Answers According to the global social responsibility pyramid, a company's first duty is to
be
the United Nations - Answers The Global Compact is a voluntary agreement established in 2000 by
________ that promotes human rights, good labor practices, environmental protection, and anti-
corruption standards for businesses.
a company sends supplies to hurricane victims - Answers Which of the following situations is an
example of corporate social responsibility?
socially responsible - Answers When a corporation is ________, it can improve people's lives.
whistleblower - Answers A ________ is an employee who reports organizational misconduct, such as
fraud, overcharging, or health and safety problems, to the government or the public.
, code of ethics - Answers One way to make sure that employees understand a company's
expectations and guidance for how to act ethically and responsibly is to establish a
ethics - Answers A code of ________ is a written set of standards intended to guide an organization's
actions.
behavior - Answers The term value refers to a deeply held underlying belief or attitude that helps
determine people's
compliance-based - Answers A(n) ________ ethics code attempts to prevent criminal misconduct by
increasing control and by punishing violators.
market - Answers The ________ price reflects what the consumer is willing to pay.
the consumer price index (CPI) - Answers ________ encapsulates the monthly costs of a "market
basket" of about four hundred representative consumer goods and services (including food, clothing,
and medical services) that allow data analysts to measure the rate of inflation or deflation.
factors of production - Answers The means for developing goods and services and for satisfying
consumers' demand are
socialism - Answers ________ is an economic system in which the government owns some major
industries, but individuals own smaller businesses.
socialism - Answers Sven grew up in Norway where the government provides social programs for its
citizens, like health insurance, social security, and pensions. Norway's economic system is
gross domestic product (GDP) - Answers Barbara is an economist and has been asked to calculate the
value of all goods and services that the United States has produced this year. Barbara is calculating
communism - Answers Which economic system originated with Karl Marx in the nineteenth century?
knowledge - Answers A'ja opened her own consulting firm last year specializing in technology
training. She knows that companies in the marketplace are always looking for ways to keep their
employees current with new technology, so A'ja dedicates a portion of her week to studying
technology trends. She uses this information to develop new programs that will add additional value
for her customers. Which of the factors of production does this best represent?
demand - Answers ________ expresses how willing and able buyers are to purchase goods and
services at different prices.
supply - Answers ________ expresses how willing and able sellers are to provide goods and services
at different prices.
communist - Answers Peter lives in a country where the government owns businesses, homes, and all
other forms of property. All of Peter's friends and family hold jobs but none of them work for private
employers. Peter most likely lives in a(n) ________ country.
own property - Answers The foundation of all the other rights in a capitalist system, the first basic
right is the right to
monopoly - Answers Proteus Gas and Electric is the sole provider of gas and electricity in the state. It
is able to increase and decrease prices as it sees fit. Proteus can best be described as which of the
following types of free markets?
gross domestic product - Answers The total value of all the goods and services that a country
produces within its borders in one year is called
culture - Answers To operate successfully, capitalist countries must grant four basic rights. These
rights must be supported by laws, institutions, infrastructure, and
consumer sovereignty - Answers Consumers exercise ________, the idea that consumers influence
the marketplace through their decisions of which products they choose to buy or not to buy.
Japan - Answers Which country has capitalism as its economic system?
a monopoly - Answers A utility company is an example of
contraction - Answers During which phase of the business cycle does the pace of economic activity
slow down and GDP falls?
monopolistic competition - Answers There are many health food stores in Moses's community, but
only one in his neighborhood, so he frequents that one. What kind of market does this store face?
perfect competition - Answers In ________, the market has many small sellers who sell
interchangeable products to many informed buyers, and no seller is large enough to dictate the price
of the product.
unemployment rate - Answers The ________ is the level of joblessness among people sixteen years
or older actively seeking work.
market price - Answers Gigiwidgets are an incredibly popular new toy. When they initially hit the
market, they were very hard to find, especially as demand grew. Over the past few months, the
