BUSINESS ETHICS EXAMINATION QUESTIONS AND CORRECT ANSWER WITH EXPLANATION GRADED A+ STUDY GUIDE

BUSINESS ETHICS EXAMINATION QUESTIONS AND
CORRECT ANSWER WITH EXPLANATION GRADED A+
STUDY GUIDE SOUTHERN NEW HAMPSHIRE UNIVERSITY
1. Business ethics refers to:
A. Legal punishment system
B. Moral principles guiding business behavior
C. Court procedures
D. Police operations
Answer: B
Rationale: Ethics involves moral standards in business conduct.

2. Ethics in business is mainly concerned with:
A. Profit only
B. Right and wrong behavior
C. Crime control
D. Accounting systems
Answer: B
Rationale: Ethics evaluates moral correctness.

3. Corporate social responsibility (CSR) means:
A. Avoiding taxes
B. Businesses contributing to society
C. Increasing prices
D. Court involvement
Answer: B
Rationale: CSR focuses on social impact.

4. A code of ethics is:
A. Legal law
B. Written rules guiding behavior
C. Crime list
D. Tax rule
Answer: B
Rationale: It defines acceptable conduct.

5. Ethical behavior in business leads to:
A. Loss of trust

, B. Customer trust and loyalty
C. Crime increase
D. Court cases
Answer: B
Rationale: Ethics builds trust.

6. Unethical behavior includes:
A. Honesty
B. Fraud and deception
C. Transparency
D. Fairness
Answer: B
Rationale: Dishonesty violates ethics.

7. Stakeholders include:
A. Only managers
B. Anyone affected by business decisions
C. Only customers
D. Only courts
Answer: B
Rationale: Broad group affected by business.

8. Conflict of interest occurs when:
A. No decision exists
B. Personal interest interferes with duty
C. Profit increases
D. Customers are satisfied
Answer: B
Rationale: Bias affects decisions.

9. Corporate governance refers to:
A. Crime control
B. System of rules controlling companies
C. Police system
D. HR system
Answer: B
Rationale: Structure of company control.

10. Transparency means:
A. Hiding information

, B. Open and honest communication
C. Crime secrecy
D. Court secrecy
Answer: B
Rationale: Openness in operations.

11. Accountability means:
A. Avoiding responsibility
B. Being responsible for actions
C. Hiding mistakes
D. Ignoring rules
Answer: B
Rationale: Responsibility for outcomes.

12. Integrity means:
A. Dishonesty
B. Honesty and strong moral principles
C. Crime behavior
D. Legal punishment
Answer: B
Rationale: Ethical consistency.

13. Ethical dilemma is:
A. Easy decision
B. Situation with conflicting moral choices
C. Court decision
D. Financial report
Answer: B
Rationale: Competing ethical options.

14. Insider trading is:
A. Legal buying
B. Illegal use of confidential information for trading
C. Marketing strategy
D. HR practice
Answer: B
Rationale: Unethical financial behavior.

15. Bribery means:
A. Honest payment