BUSS2421/Test1/Jan2020

CONFIDENTIAL

TEST 1
JANUARY SEMESTER 2020

BUSINESS ETHICS
(BUSS 2421)
(TIME: 2 HOURS)
28 APRIL 2020

GOH CHUN YUAN

NAME : __________________________________________
_ 2 0 0 1 0 5 1 6
MATRIC NO. :

GENERAL INSTRUCTIONS

1. There are SIX (6) questions in SECTION A and TWO (2) questions in SECTIONS B
2. Save this question is PDF format with a file name Test1_Buss2421_nomatric.
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SECTION A (6 marks)

BOLD THE CORRECT ANSWERS.

1. Shaw and Barry (2010) suggests that the following factors should be considered when
evaluating the ethics of accepting a gift EXCEPT ___________
A. the value of the gift.
B. the purpose of the gift.
C. the position of the person receiving the gift.
D. the positions of the giver.

2. When an employee discover corporate misconduct choose to bring it to the attention of

external parties, e.g. law enforcement agencies or the mass media. This refers to
_________
A. External whistle-blowing
B. Internal whistle-blowing
C. Discrimination
D. Grapevine

3. __________ whistle-blowing arises when a whistle-blower reports the evidence of

wrongdoing to someone of authority within an organization and hopes that the recipient
of the information will take action to deal with the misconduct or illegal practice.
A. External
B. Internal
C. Middle
D. Common

4. Which of the followings is not a condition for justifications for whistle-blowing?

A. An employee is driven by appropriate moral motive.
B. An employee has strong or credible evidence of wrongdoing.
C. An employee has good reasons to justify blowing the whistle.
D. All of the above.

5. Kentucky Fried Chicken (KFC) has its secret formula for its fried chicken while Coca-
Cola also has a secret formula for its carbonated drinks. Those are examples of
___________
A. secret formula.
B. secret Recipe.
C. treasured formula.
D. trade secret.
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6. According to The World Intellectual Property Organization (WIPO), information to be
considered trade secret _____________
A. must be secret, i.e. not revealed or known to others that are not supposed to have
the information.
B. must not have commercial value because it is not a secret.
C. the rightful owner has not taken reasonable steps to keep it secret.
D. none of the above.

SECTION B (14 marks)

START YOUR ANSWER IN THE NEXT PAGE.

Conflict of interest may arise in any professional relationship, such as between board of directors and
shareholders and external auditors and a company.

1. Briefly explain TWO (2) types of conflict of interest as stated by Velasquez (2012).
(4 marks)

2. According to Shaw and Barry (2010), several factors must be considered to determine the
morality of accepting gifts. Briefly explain FIVE (5) factors.
(10 marks)

***END OF QUESTIONS***
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1. Two types of conflict of interest as stated by Velasquez (2012) are, potential conflict of interest.
This conflict arises when an employee has an interest that could potentially affect the way he makes
decisions for the employer, but he has yet to be assigned such a responsibility or task to make the
decision. Second one is actual conflict of interest. This conflict occurs when an employee has an
interest that could potentially influence the way he makes a decision on behalf of his employer and the
employer has actually given him the authority to make such a decision.

2. Five factors to determine the morality of accepting gifts are, the value of the gift. For example:
before someone accept a gift, he/she has to know is the value nominal or substantial enough to
influence a business decision. Next, the purpose of the gift. For example: what is the intention to bribe
an employee or to influence his business decision? Besides that, the circumstances under which the
gift was given or received. For example: why is the gift given? The gift is given conjunction with a
special event or without any specific event? Does the gift is given secretly or openly? One of the
factors should be considered is the position of the person receiving the gift. Is the people receiving
gift is a director or manager that can make decision or influence the decision? The last one is, what is
the accepted business practice in the industry? For example: giving or receiving gifts in business is a
norm?