CMA Inter Law & Ethics QB BY CA PRANAV CHANDAK
Download “Pranav Chandak Academy” App from Playstore
ETHICS – QUESTION BANK for CMA Inter
June Q1. Explain the concept of 'business ethics' [2 Marks]
2009 Answer:
▪ Business ethics is a form of applied ethics where principles of ethics may be applied
to daily routine situations in any business.
▪ In broad sense ethics in business is simply the application of moral or ethical norms
to business. The term ethics has its origin from the Greek word “ethos”, which means
character or custom the distinguishing character, sentiment, moral nature, or guiding
beliefs of a person, group, or institution.
▪ The synonyms of ethics as per Collins Thesaurus are Conscience, moral code, morality,
moral philosophy, moral values, principles, rules of conduct, standards.
▪ Business ethics compromises the principles and standards that guide behaviour in
the conduct of business.
▪ Business must balance their desire to maximize profits against the needs of the
stakeholders. Maintaining this balance often requires tradeoffs.
▪ To address these unique aspects of business, rules articulated and implicit, are
developed to guide the business to earn profits without harming individuals or society
as a whole.
Q2. “Ethics is the first line of defence against corruption, while law enforcement is
remedial and reactive. However, both fail to achieve the desired aim in the Indian set-
up.” Do you agree? Give reasons in support of your answer. [7 Marks]
Answer:
▪ It is absolutely correct to say that ethics is the first line of defense against
corruption. What prevents corruption in the first place is ethics. The enforcement of
law is a reaction to the occurrence of the corruption.
▪ While the law can only laydown the do’s and don’ts and the consequences of doing or
not doing something.
▪ The compliance to law in letter and spirit can be achieved only through ethical
practices being followed.
▪ An act may be perfectly legal but totally unethical. Therefore, the statement law
enforcement is remedial and reactive is also true.
▪ However, ethics is not absolute and is open to the influence of time, place and
situation. Certain unethical practice on account of the fact that is widely prevalent
is apparently justified.
▪ Following are some of the factors that have contributed to the prevalence of
corruption in India:
(a) Cultural ethos: Putting a premium on materialism, profiteering, power play and
casual attitude for ethical values…………Myopic concern over-riding long-term
considerations and values.
(b) Institutional failures: Procedural formalities in-built obstacles, bureaucratic red-
tapism etc.
(c) Poor enforcement of law: delay in justice.
(d) Erosion of values in politicians, entrepreneurs political lobbying etc.
Subscribe http://www.youtube.com/c/PRANAVCHANDAKACADEMY for Updates & Annoucements
Join us on Telegram Channel @ https://t.me/pranavchandak
, CMA Inter Law & Ethics QB BY CA PRANAV CHANDAK
Download “Pranav Chandak Academy” App from Playstore
Dec Q3. Write a short note on “Enlightened-egoism” [5 Marks]
2009 Answer:
▪ This model takes into account harms, benefits and rights.
▪ Therefore, under this model an action is morally correct if it increases benefits for
the individual in a way that does not intentionally hurt other and if these benefits are
believed to counterbalance any unintentional harms that ensue.
▪ For example, a company provides scholarships for education to needy students with
a condition that the beneficiary is required to compulsorily work for the company for
a period of 5 years. Although the company is providing the scholarship benefits to
the needy students but ultimately it is in the company’s self interest.
Q4. Write a short note on “Ethics in compliance”. [5 Marks]
Answer:
▪ Compliance is about obeying and adhering to rules and authority. The motivation for
being compliant could be to do the right thing out of the fear of being caught and
punished rather than a desire to be abiding by the law.
▪ An ethical climate in an organization ensures that compliance with law is supported
by a desire to abide by the laws. Organizations that value high ethics comply with
the laws not only in letter but go beyond what is stipulated or expected of them.
Q5. Ethics in business is simply the application of moral or ethical norms to business.
Explain and discuss the advantages of business ethics. [ 5 Marks]
Answer:
Business ethics is a form of applied ethics. In broad sense ethics in business is simply
the application of moral or ethical norms to business. Ethics is a set of principles or
standard to human conduct that govern the behaviour of individuals or organization
using theseethical standard, a person or a group of person or an organizations regulate
their behaviour to distinguish between what is right and what is wrong as perceived by
others.
The advantages of business ethics include:
1. Attracting People aspire to join organizations that have high ethical values.
and Retaining Companies are able to attract the best talent and an ethical
Talent company that is dedicated to taking care of its employees will
be rewarded with employees being equally dedicated in taking
care of the organization. Ethical organization creates an
environment that is trust worthy, making employees willing to
rely, take decisions.
2. Investor Investors are concerned about ethics, social responsibility and
Loyalty reputation of the company in which they invest. Investors are
becoming more and more aware that an ethical climate provides
a foundation for efficiency, productivity and profits. Relationship
with any stakeholder, including investors based on dependability
trust and commitment results in sustained loyalty.
3. Customers Customer satisfaction is a vital factor in successful business
Satisfaction strategy. Repeat purchases /orders and enduring relationship of
Subscribe http://www.youtube.com/c/PRANAVCHANDAKACADEMY for Updates & Annoucements
Join us on Telegram Channel @ https://t.me/pranavchandak
, CMA Inter Law & Ethics QB BY CA PRANAV CHANDAK
Download “Pranav Chandak Academy” App from Playstore
mutual respect is essential for the success of the company. The
name of a company should evoke trust and respect among
customers for enduring success. This is achieved by a company
that adopts ethical practices.
Q6. Explain briefly the Virtue Ethics Theory [2 Marks]
Answer:
Virtue Ethics Theory is a branch of moral philosophy that emphasizes character, rather
than rules or consequences, as the key element of ethical thinking. An example of this
when a person of good standing is found possessing a valuable article belonging to
someone else it will be presumed that the article was loaned to him or kept with him
for safekeeping, whereas if it were in the possession of a person of doubtful or dubious
character it would be presumed that he has stolen the article.
June Q7. A commitment by corporate management to follow an ethical code of conduct
2010 confers a variety of benefits. What are these benefits? [5 Marks]
Answer:
Advantages of Business Ethics:
Adherence (means loyalty, faithfulness, observance) to a Code of Conduct offers the
following advantages:
▪ Honest and ethical conduct, including the ethical handling of actual or apparent
conflicts of interest between personal and professional relationships;
▪ Full, fair, accurate, timely, and understandable disclosure in reports and documents
that a company files with, or submits to the commission and in other public
communications made by the company;
▪ Compliance with applicable governmental laws, rules and regulations;
▪ The prompt internal reporting of violations of the code to an appropriate person or
persons identified in the code, and;
▪ Accountability for adherence to the code.
Q8. Elaborate the various ‘ethics philosophies’ coment [ 5 Marks]
Answer:
1. Deontological The word ‘deontological’ is derived from the Greek word "Deon"
ethical meaning ‘duty’ or ‘obligation’.
theory Deontological theories focus on certain fundamental duties that
we have as human being, such as not committing murder or theft.
The duties stress that rightness of an act is derived from some
feature of the action itself, with reference to its consequences.
Duties upheld by deontological theory may be classified under
three heading:
▪ Duties to God, including honoring him and praying to him.
▪ Duties to Oneself includes preserving ones life and sharing
happiness.
▪ Duties to others, including family duties, social duties and
political duties.
Subscribe http://www.youtube.com/c/PRANAVCHANDAKACADEMY for Updates & Annoucements
Join us on Telegram Channel @ https://t.me/pranavchandak
Download “Pranav Chandak Academy” App from Playstore
ETHICS – QUESTION BANK for CMA Inter
June Q1. Explain the concept of 'business ethics' [2 Marks]
2009 Answer:
▪ Business ethics is a form of applied ethics where principles of ethics may be applied
to daily routine situations in any business.
▪ In broad sense ethics in business is simply the application of moral or ethical norms
to business. The term ethics has its origin from the Greek word “ethos”, which means
character or custom the distinguishing character, sentiment, moral nature, or guiding
beliefs of a person, group, or institution.
▪ The synonyms of ethics as per Collins Thesaurus are Conscience, moral code, morality,
moral philosophy, moral values, principles, rules of conduct, standards.
▪ Business ethics compromises the principles and standards that guide behaviour in
the conduct of business.
▪ Business must balance their desire to maximize profits against the needs of the
stakeholders. Maintaining this balance often requires tradeoffs.
▪ To address these unique aspects of business, rules articulated and implicit, are
developed to guide the business to earn profits without harming individuals or society
as a whole.
Q2. “Ethics is the first line of defence against corruption, while law enforcement is
remedial and reactive. However, both fail to achieve the desired aim in the Indian set-
up.” Do you agree? Give reasons in support of your answer. [7 Marks]
Answer:
▪ It is absolutely correct to say that ethics is the first line of defense against
corruption. What prevents corruption in the first place is ethics. The enforcement of
law is a reaction to the occurrence of the corruption.
▪ While the law can only laydown the do’s and don’ts and the consequences of doing or
not doing something.
▪ The compliance to law in letter and spirit can be achieved only through ethical
practices being followed.
▪ An act may be perfectly legal but totally unethical. Therefore, the statement law
enforcement is remedial and reactive is also true.
▪ However, ethics is not absolute and is open to the influence of time, place and
situation. Certain unethical practice on account of the fact that is widely prevalent
is apparently justified.
▪ Following are some of the factors that have contributed to the prevalence of
corruption in India:
(a) Cultural ethos: Putting a premium on materialism, profiteering, power play and
casual attitude for ethical values…………Myopic concern over-riding long-term
considerations and values.
(b) Institutional failures: Procedural formalities in-built obstacles, bureaucratic red-
tapism etc.
(c) Poor enforcement of law: delay in justice.
(d) Erosion of values in politicians, entrepreneurs political lobbying etc.
Subscribe http://www.youtube.com/c/PRANAVCHANDAKACADEMY for Updates & Annoucements
Join us on Telegram Channel @ https://t.me/pranavchandak
, CMA Inter Law & Ethics QB BY CA PRANAV CHANDAK
Download “Pranav Chandak Academy” App from Playstore
Dec Q3. Write a short note on “Enlightened-egoism” [5 Marks]
2009 Answer:
▪ This model takes into account harms, benefits and rights.
▪ Therefore, under this model an action is morally correct if it increases benefits for
the individual in a way that does not intentionally hurt other and if these benefits are
believed to counterbalance any unintentional harms that ensue.
▪ For example, a company provides scholarships for education to needy students with
a condition that the beneficiary is required to compulsorily work for the company for
a period of 5 years. Although the company is providing the scholarship benefits to
the needy students but ultimately it is in the company’s self interest.
Q4. Write a short note on “Ethics in compliance”. [5 Marks]
Answer:
▪ Compliance is about obeying and adhering to rules and authority. The motivation for
being compliant could be to do the right thing out of the fear of being caught and
punished rather than a desire to be abiding by the law.
▪ An ethical climate in an organization ensures that compliance with law is supported
by a desire to abide by the laws. Organizations that value high ethics comply with
the laws not only in letter but go beyond what is stipulated or expected of them.
Q5. Ethics in business is simply the application of moral or ethical norms to business.
Explain and discuss the advantages of business ethics. [ 5 Marks]
Answer:
Business ethics is a form of applied ethics. In broad sense ethics in business is simply
the application of moral or ethical norms to business. Ethics is a set of principles or
standard to human conduct that govern the behaviour of individuals or organization
using theseethical standard, a person or a group of person or an organizations regulate
their behaviour to distinguish between what is right and what is wrong as perceived by
others.
The advantages of business ethics include:
1. Attracting People aspire to join organizations that have high ethical values.
and Retaining Companies are able to attract the best talent and an ethical
Talent company that is dedicated to taking care of its employees will
be rewarded with employees being equally dedicated in taking
care of the organization. Ethical organization creates an
environment that is trust worthy, making employees willing to
rely, take decisions.
2. Investor Investors are concerned about ethics, social responsibility and
Loyalty reputation of the company in which they invest. Investors are
becoming more and more aware that an ethical climate provides
a foundation for efficiency, productivity and profits. Relationship
with any stakeholder, including investors based on dependability
trust and commitment results in sustained loyalty.
3. Customers Customer satisfaction is a vital factor in successful business
Satisfaction strategy. Repeat purchases /orders and enduring relationship of
Subscribe http://www.youtube.com/c/PRANAVCHANDAKACADEMY for Updates & Annoucements
Join us on Telegram Channel @ https://t.me/pranavchandak
, CMA Inter Law & Ethics QB BY CA PRANAV CHANDAK
Download “Pranav Chandak Academy” App from Playstore
mutual respect is essential for the success of the company. The
name of a company should evoke trust and respect among
customers for enduring success. This is achieved by a company
that adopts ethical practices.
Q6. Explain briefly the Virtue Ethics Theory [2 Marks]
Answer:
Virtue Ethics Theory is a branch of moral philosophy that emphasizes character, rather
than rules or consequences, as the key element of ethical thinking. An example of this
when a person of good standing is found possessing a valuable article belonging to
someone else it will be presumed that the article was loaned to him or kept with him
for safekeeping, whereas if it were in the possession of a person of doubtful or dubious
character it would be presumed that he has stolen the article.
June Q7. A commitment by corporate management to follow an ethical code of conduct
2010 confers a variety of benefits. What are these benefits? [5 Marks]
Answer:
Advantages of Business Ethics:
Adherence (means loyalty, faithfulness, observance) to a Code of Conduct offers the
following advantages:
▪ Honest and ethical conduct, including the ethical handling of actual or apparent
conflicts of interest between personal and professional relationships;
▪ Full, fair, accurate, timely, and understandable disclosure in reports and documents
that a company files with, or submits to the commission and in other public
communications made by the company;
▪ Compliance with applicable governmental laws, rules and regulations;
▪ The prompt internal reporting of violations of the code to an appropriate person or
persons identified in the code, and;
▪ Accountability for adherence to the code.
Q8. Elaborate the various ‘ethics philosophies’ coment [ 5 Marks]
Answer:
1. Deontological The word ‘deontological’ is derived from the Greek word "Deon"
ethical meaning ‘duty’ or ‘obligation’.
theory Deontological theories focus on certain fundamental duties that
we have as human being, such as not committing murder or theft.
The duties stress that rightness of an act is derived from some
feature of the action itself, with reference to its consequences.
Duties upheld by deontological theory may be classified under
three heading:
▪ Duties to God, including honoring him and praying to him.
▪ Duties to Oneself includes preserving ones life and sharing
happiness.
▪ Duties to others, including family duties, social duties and
political duties.
Subscribe http://www.youtube.com/c/PRANAVCHANDAKACADEMY for Updates & Annoucements
Join us on Telegram Channel @ https://t.me/pranavchandak
