Question Bank

Business Ethics and Corporate Governance

Module-1:
Q1. Business ethics are
a. Only for some businesses
b. how individuals act
c. principles and standards that determine conduct
d. maximizing positive impact and minimizing the negative impact
Q2. Ethical standards are the same no matter where you go.
a. True
b. False
Q3. Good ethics means _____ business
Q4. Which of the following refers to the duty of a business to contribute to the well-
being of a community?

a) workplace diversity
b) social responsibility
c) code of ethics
d) laws and regulations
Q5). Problems involving conflict between moral imperatives.

a) Ethical dilemmas
b) Honesty
c) Reputation
d) Scruples

Q6. The beliefs, qualities, or standards that you consider important or desirable.

a) Honesty
b) Trust
c) Code of Ethics
d) Values
Q7. ____ are principles of morality or rules of conduct.

a) Customs
b) Traditions
c) Cultures
d) Ethics

Q8. Q. ____ are principles of morality or rules of conduct.

A manager hires his wife's young nephew instead of hiring a more qualified applicant.
This is
a) Cronyism
b) Conflict of Interest
c) Nepotism
d) The way the world works

Q9. The conflict between self-financial interest and professional obligation is called?

a) Being irresponsible
b) Mixing business with pleasure
c) conflict of interest
d) being unprofessional
Q10. Treating employees fairly means the company is likely to show what turnover
(employee retention) results.

a) High
b) Low
c) Moderate
d) Concentrated
Q11. Activities that individuals, groups, & organizations undertake to protect
their rights as consumers.

a) Ethical Issue
b) Plagiarism
c) Consumerism
d) Whistleblowing
Q12. An act of an employee exposing an employer’s wrongdoing to outsiders.

a) Ethical Issue
 b) Plagiarism
c) Consumerism
d) Whistleblowing
Q13. Plagiarism is an ethical issue that is only found in schools and academic
institutions.

a) True
b) False
Q14. Companies do not have to be socially responsible to whom?

a) Customers
b) Employees
c) Owners/Investors
d) Competitors
Q15. When a firm charges different prices to different groups of customers it is
referred as

a) Cultural relativism
b) Money laundering
c) Facilitating payments
d) Price discrimination

Q16. The extent that a business meets its legal, ethical, financial, and voluntary
responsibilities
a) Consumer Bill of Rights
b) Consumerism
c) Whistleblowing
d) Corporate Citizenship
Q17. Which of the following are not the characteristics of business ethics?
a) Involves a trade-off between cost and benefits

b) Business ethics are subject to dilemmas

c) Ethical decisions can not be predicted

d) Ethical decisions are compulsory in nature

Q18. The relationship between the doctor and the patient shows which type of the
following ethics.

a) Transactional

b) Participatory

c) Recognition

Q19. Which of the following is not a myth about business ethics?

a) Ethics is a personal and individual affair

b) Business and Ethics go hand in hand

c) Relative ethics is a common practice

d) Good business means good ethics

Q20. What business people do is determined by

a) Law
b) Ethical values
c) Capital
d) Profit

Q21. Which approach gives equal importance to the means as to the ends?

a) Deontological approach
b) Teleological approach

Q22. Kohlberg’s six stages of moral development say that People make different
decisions in similar ethical situations because they are in different stages of -----------
------- moral development

a) Cognitive
b) Conative
c) Affective

Q23. Managerial ethics can be characterized by all of the following levels except
 a) Amoral management
b) Immoral management
c) Demoral management
d) Moral management

Q24. In ------------ style of leadership, a manager centralizes decision-making power

in himself

a) Democratic
b) Autocratic
c) Participative
d) Free rein

Q25. The word moral is derived from the Latin word-----------

a) Moralis
b) Morilitic
c) Monatic
d) None of these

Q26. A set of characteristics that sets one group of people apart from another is
called --------------

a)culture

b) values

c) ethics

d) none of these

Q27. ------------- seeks to determine norms and values

a) Culture
b) Normative science
c) Values
d) None of these
Q28. The stage of maintaining the social order of Kohlberg’s moral development
model is in:

A) Pre-conventional morality

B) Conventional morality

C) Post-conventional morality

D) None of the above

Q29. The set of ideas that constitute one’s goals, expectations, and actions is known
as:

A) Values

B) Beliefs

C) Ideology

D) Morals

Q30. The theory of moral development was developed by:

A) Piaget

B) Betham Jeremy and Lawrence Kohlberg

C) Lawrence Kohlberg

D) Lawrence Kohlberg and Piaget

Q31. Who are organizational stakeholders?

A) Providers of finance

B) Government

C) Customers

D) Community

E) Employees
F) All of the above

Q32. ____________ are those individuals who raise ethical concerns or issues to
others inside or outside the organization.

A) Entrepreneur

B) Whistleblowers

C) Social entrepreneur

D) Social impact management

Short Questions:

Q1. Analyze how participatory ethics are used in business operations.

Q2. Analyse why is business ethics needed in business.

Q3. How different sources of ethics are applied in business?

Q4. “Business ethics are driven from the top” Justify the statement with a suitable
example.

Q5. How transactional ethics are applied in business? Justify through an example.

Q6. “ Business ethics involves a tradeoff between cost and benefits” Analyse with
suitable examples

Q7. Sketch the needs for business ethics.

Q8. Illustrate the importance of business ethics for customers.

Q9. Explain how the principle of standardization is used in business ethics.

Q10. Justify how participatory ethics are applied in business organizations

Q11. Show how individual characteristics are reflected in ethical business operations

Q12. “Business and ethics go hand in hand” Explain.

Q13. How cultural values are used in employee management? Demonstrate through
suitable examples.
Q14.Analyze how ethical values are normative in nature.

Q15. Distinguish between teleological and deontological approaches toward

business ethics.

Long questions:

Q1. Evaluate the relevance of Kohlberg’s six stages of moral development in

business.

Q2. Critically examine the factors influencing the business ethics of managers in
organizations.

Q3. Explain different types of business ethics. How many types are used in business
decision-making?

Case study: compulsory (20 marks)

Asma, one of the junior female staff members of an organization returned and joined
after taking special leaves to take care of her mother who is ill, dependent, and needs
special care. She has to work full-time for financial reasons. She has been

facing difficulties in managing her mother’s home care arrangement. Due to this she
usually misses team meetings which usually take place early every day. With late
comings, she has to leave the workplace early. She is hard working and competent
in her work but her absences cause pressure and workload on her colleagues. You
are the manager and you are aware of the practice causing different disturbances
around. A few male colleagues have started making comments such as “a woman’s
place is in the home”, and this is disappointing and discouraging her at every
opportunity, putting her under greater stress.

Question:

How would you handle the situation to protect Asma without discrediting yourself,
your profession, or the practice for which you work?

Module-2:

Q1. Hallo effect refers to the general impression drawn from ---------- characteristic
feature
 a) Four
b) Three
c) Two
d) One

Q2. Beneficence is an ethical value that promotes------------------

a) Doing what is best

b) Prompt reporting to duty
c) Using working time productively
d) All of these

Q3. Nonmaleficence is an ethical value that promotes------------------

a) Spreading harm by promoting gossip

b) Avoiding harm by not spreading gossip
c) treating employees equally
d) None of the above

Q4. Heuristics in decision-making refers to --------------

a) Making decisions based on available information

b) Intuitive efforts and mental review
c) Rational thinking
d) None of these

Q5. Which of the following is not a criterion for good ethical decisions?

a) Utilitarianism
b) Rights
c) Justice
d) Profits

Q6. A situation that requires a choice between equally balanced arguments is called
---------------------

a) Dilemma
b) Judgment
c) Rational thinking
 d) None of these

Q7. Actions or policies should be evaluated based on producing greater good in the
society” is the fundamental of which moral theory?

A) Utilitarian theory

B) Theory of justice

C) Ethics of care

D) Theory of rights

Q8. A set of rules for guiding the actions of employees or members of an organization.

a) Code of Ethics
b) Mission Statement
c) Social Responsibility Policy
d) Corporate Ethics
Q9. Which of the following is not a source of ethical problems?

a) Cross-cultural contradictions
b) Competitive pressure
c) Personal gain
d) Employee welfare

Q10. Which of the following is not a method of ethical reasoning?

a) Utilitarian
b) Rights
c) Justice
d) None of these

Q11. According to the utilitarian method action is ethical when net --------------
exceeds net -----------------

a) Cost, benefits
b) Benefits, cost
c) Profit, loss
d) Loss, profit
Q12. When global companies follow the norms of local conditions, it is the principle
of ----------------

a) Absolutism
b) Relativism
c) None of the above
d) All of the above

Q13. An example of an unethical ad would be:

a. One car dealer guaranteeing a lower price than another
b. An ad stating one hamburger is the best tasting of all
c. An ad promoting cigarette smoking to children
d. An attorney advertising for personal injury cases
Q14. Advertising that gives false information or willfully misleads consumers is
called------------------

a) Deceptive advertising
b) Corrective advertising
c) Social advertising
d) Digital advertising

Q15. Sometimes a firm gives a low-price offer to lure customers into a store where
the salesperson tries to influence them to buy a higher-priced item is called a -------
-------------- pricing

a) Price discrimination
b) Bait and Switch pricing
c) Predatory pricing
d) None of the above.

Q16. When the company decreases its price below the cost of production to drive
out competitors from the market, it is called ----------------- pricing.

a) Price discrimination
b) Price fixing
c) Predatory pricing
 d) None of the above.

Q17. Which act says that price discrimination is illegal?

a) Sherman act
b) Robinson-Patman act
c) None of the above
d) All of the above

Q18. Which act prohibits predatory pricing?

a) Sherman act
b) Robinson-Patman act
c) None of the above
d) All of the above

Q19. The involuntary termination of the job employee is classified as

a. descriptive termination
b. Procedural termination
c. Dismissal
d. Distributive termination

Q20. The form of misconduct, which refers to rebelliousness or disobedience is classified

as
a) lack of qualifications

b) unsatisfactory satisfaction

c) Insubordination

d) Misconduct

Q21. The process of reducing the number of employed people in a firm is classified
as
 a) Layoffs
b) Downsizing
c) Mergers
d) Acquisitions

Q22. The extent a business firm strategically meets economic, legal, ethical, and
philanthropic responsibilities toward the stakeholders is called------------------------
a) Corporate social responsibility
b) Corporate citizenship
c) Corporate strategy
d) None of the above

Q23. Who said that the "only one social responsibility of business is to increase
profits"?
A) Edward Freeman
B) Milton Friedman
C) Michael Porter
D) Michael Freeman
Q24. Prevention to Cruelty to Animals Act (PCA) was passed in
a) 1950
b) 1960
c) 1970
d) 1980

Q25. Who are organizational stakeholders?

A) Providers of finance

B) Government

C) Customers

D) Community

E) Employees

F) All of the above

Short Questions:
Q1. Explain the concept of an ethical dilemma with suitable examples.

Q2. Analyze how ethical reasoning is used in decision making

Q3. Analyze how Utilitarianism is used as a dilemma resolution factor.

Q4. Explain the various areas that give rise to ethical dilemmas in business.

Q5. Sketch now managers’ values and attributes create difficulties in ethical
decision-making.

Q6. Illustrate how virtue ethics is used as a method of ethical reasoning.

Q7. Show a suitable example of how utilitarian ethics is used as a method of ethical
reasoning in the workplace.

Q8. Illustrate a situation of unethical marketing practice used by an FMCG company.

Q9. Demonstrate how “stereotypes” is used in product promotion in marketing.

Q11.Explain the concept of “insider trading” with a suitable example.

Q12. Explain the unethical practices adopted by HR managers in performance

appraisal.

Q13. Demonstrate how whistleblowing is used to protect unethical practices in the

workplace.

Q14. Explain how money laundering is an unethical practice by business firms.

Q15. Illustrate how environmental ethics are violated by today’s business

organizations

Long questions:

Q1. Suggest various steps involved in ethical decision-making in business

organizations with suitable examples.

Q2. Examine the unethical practices in marketing and suggest suitable measures to
introduce ethical practices in marketing.
Q3. What is insider trading? Why it is illegal? What are the unethical aspects
involved in insider trading?

Case study compulsory (20 marks)

Zia is an intelligent young man with lots of qualities. He is consistent and

determined. Qualifying for civil services exams is one of his dreams. He was
working with an IT company but he quit his job and started preparing for the exams
to make his dreams come true. On the first attempt, he couldn’t score desired marks
in the optional subjects. In the next two attempts, she couldn’t qualify for the
personality test and interview. On the third attempt, he was expecting to be on the
final list. According to the rules he had the last chance to attempt the CSS exams.
He decided to take a break and not attempt in the fourth year. He put all his efforts
to make himself competent. He started preparation with groups having the same
goal. He also started taking coaching classes to prepare himself for personality tests
and interviews. He was so determined as he had spent five years on CSS exams with
no job. Luckily, in the fourth and last attempt he passed all the optional and
compulsory subjects as well and made himself eligible for an interview, the last
stage. He read widely. He contacted experts and consultants, discussed with them
extensively, and took feedback on his grooming, body language, and communication
skills. He was quite confident. Within a few days, he received an interview call letter,
and he was mentally prepared and confident to face his final test. On the previous
day of his interview, he was relaxed and had a sound sleep. The next day he was
relaxed and calm as his interview was scheduled in the second session i.e. in the
afternoon. He had his lunch with his family in a happy mood and left home driving
his old bike as he wanted to reach the venue half an hour of the time given to avoid
any kind of difficulty and risk. Zia was driving his bike safely having lots of thoughts
and dreams in his mind. The road was almost empty. On the way, a speedy bike
collided with the footpath in front of him. Zia stopped his bike and rushed to the
accident scene. The man was seriously injured and crying with pain. The blood
around the accident could be seen. With that man, a girl around three years was lying
around him and was unconscious. Zia looked around to help them and tried to stop
two or three cars to take them to the hospital but not a single car stopped to help him.
Zia had only 20 minutes left to reach the center for a final interview. Helping out the
victims would lose his dream of becoming a CSP officer.
Question:

1)What should Zia do in this situation? Justify your answer:

Module-3

1 Human Life is lived at four levels: Individual, Family, and Society …...

(a)Nature

(b) Nurture

(c) World

(d) Universe

Ans.(a)Nature

2 What is self –Exploration?

(a) Process of dialogue between what you are and what you want to be

(b) Process of self-evolution through self-investigation

(c) Process of knowing oneself

(d) All of the above

Ans. (d) All of the above

3. Value education deals with…

(a) What is universally valuable to all of us

(b) What is conducive to our individual and collective of us

(c) Enables to be in harmony with ourselves, others, and the rest of nature

(d) All of the above

Ans. (d) All of the above

4. Self-Exploration demands examination and ………of our belief again and again
(a) Validation

(b)Presentation

(c) Demonstration

(d)Representation

Ans. (a) Validation

5 Beliefs come to us from….

a) what we read

(b) what we see

(c) what parents and friends talk about

(d)All of above

Ans. (d)All of above

6 There is a need to supplement …..

(a)Technical Education with science

(b) Technical Education with History

(c) Technical Education in Politics

(d) Technical Education with value education

Ans. (d) Technical Education with value education

7 Technology is the only means to achieve what is considered…….

(a)Valuable for science

(b) Valuable for technology

(c) Valuable for humans

(d)None

Ans. (a)Valuable for science

8 Any course content on value education needs to be

a) Universal

(b) Rational

(c) Natural

(d) All of above

Ans. (d) All of above

9 When we live with a correct understanding of values we feel ……..

(a) Deprived

(b) Frustrated

(c) Happy

(d) Unhappy

Ans. (c) Happy

10 Following are the basic guidelines for value education except……

(a) Universal

(b) Personal

(c) Rational

(d) Natural

Ans. (b) Personal

11 Value Education enables us to………

(a) To understand our needs

(b) Visualize our goals correctly

(c) Indicate the direction for their fulfillment

(d) all of above

Ans. (d) all of above

12 One of the basic desires of every human being is to be always ………

(a) Happy

(b)Sad

(c) Laugh

(d) Earn money

Ans. (a) Happy

13 … is the basic unit of any human society

(a) Group

(b) Individual

(c) Nature

(d) Society

Ans. (b) Individual

14 Natural acceptance and …. are the two processes of knowing.

(a) Self –Actualization

(b) Self-exploration

(c) Self Evaluation

(d) Self-control

Ans. (b) Self-exploration

15 Value and Skills should go hand in hand

(a) True

(b) False

(c) cannot tell

(d) Wrong question

Ans. (a) True1

16 Present Education system gives more value to skills

(a) True

(b) False

(c) cannot tell

(d) None of the above

Ans. (a) True

17 Value education should be universally applicable to all human beings at all times
and in all places

(a) True

(b) False

(c) not possible

(d) both a and b

Ans. (a) True

18 Value education should be based on dogmas or blind beliefs

(a) True

(b) False

Ans. (b) False

19 Value education should be Natural and verifiable means

(a) Intellectual and Informative

(b) Naturally accepted and experimentally verified

(c) both a and b

(d) none

Ans. (b) Naturally accepted and experimentally verified

20 Value of an entity is

(a) Physical Facility

(b) Prosperity

(c) Its participation in the larger order of which it is part

(d) both a and b

Ans. (c) Its participation in the larger order of which it is part

Short questions

1) Explain the process of value education.

2) What is the content of self–exploration?
3) What do you understand by the terms sattva, swatantrata, and swarajya?
4) What is happiness? “Mutual fulfillment in human relationships is something
we want, we aspire for.” Explain
5) What is the meaning of prosperity? How can you say that you are prosperous?
6) Explain how activities in self (I) are interrelated.
7) What is your present vision of a happy and prosperous life?

Long questions

1) What is the value of education? Why there is a need for value education?
How does value education helps in fulfilling one's aspirations
2) What are the needs of the ‘self’ and the ‘body’? ‘The need for physical
facilities is temporary’ – explain the meaning of this statement with any two
examples.
3) Explain the activities of realization and understanding. How do they lead to
harmony in the activities of ‘I’? Illustrate with an example.

Case study compulsory (20 marks)

Zia is an intelligent young man with lots of qualities. He is consistent and

determined. Qualifying for civil services exams is one of his dreams. He was
working with an IT company but he quit his job and started preparing for the exams
to make his dreams come true.

On the first attempt, he couldn’t score desired marks in the optional subjects. In the
next two attempts, he couldn’t qualify for the personality test and interview. On the
third attempt, he was expecting to be on the final list. According to the rules he had
the last chance to attempt the CSS exams. He decided to take a break and not attempt
in the fourth year. He put all his efforts to make himself competent. He started
preparation with groups having the same goal. He also started taking coaching
classes to prepare himself for personality tests and interviews. He was so determined
as he had spent five years on CSS exams with no job. Luckily, in the fourth and last
attempt, he passed all the optional and compulsory subjects as well and made himself
eligible for an interview, the last stage. He read widely. He contacted experts and
consultants, discussed with them extensively, and took feedback on his grooming,
body language, and communication skills. He was quite confident. Within a few
days, he received an interview call letter, and he was mentally prepared and
confident to face his final test. On the previous day of his interview, he was relaxed
and had a sound sleep. The next day he was relaxed and calm as his interview was
scheduled in the second session i.e. in the afternoon. He had his lunch with his family
in a happy mood and left home driving his old bike as he wanted to reach the venue
half an hour of the time given to avoid any kind of difficulty and risk. Zia was driving
his bike safely having lots of thoughts and dreams in his mind. The road was almost
empty. On the way, a speedy bike collided with the footpath in front of him. Zia
stopped his bike and rushed to the accident scene. The man was seriously injured
and crying with pain. The blood around the accident could be seen. With that man,
a girl around three years was lying around him and was unconscious. Zia looked
around to help them and tried to stop two or three cars to take them to the hospital
but not a single car stopped to help him. Zia had only 20 minutes left to reach the
center for a final interview. Helping out the victims would lose his dream of
becoming a CSP officer.

Question:

1)What should Zia do in this situation? Justify your answer.