Division of Lanao del Norte

DIVISION DIAGNOSTIC TEST

SHS (SPECIALIZED) – BUSINESS ETHICS
S.Y. 2022 - 2023

NAME: ________________________ SECTION: _______ DATE: ______ SCORE: _____

Directions: Select the most appropriate answer for each question. Only one answer is correct for
each question.

1. Business Ethics and Social Responsibilities primarily focus on:

(a) Maximizing profits (c) Ethical standards in the business environment
(b) Meeting legal requirements (d) Increasing shareholder value

2. What does the course aim to provide students with?

(a) Advanced mathematical skills
(b) Knowledge of business regulations
(c) Understanding of corporate hierarchy
(d) Basic understanding of mechanisms for acting in the best interest of stakeholders

3. Accountability and social responsibility are important in business because:

(a) They reduce competition (c) They enhance a company's reputation
(b) They increase profits (d) They discourage innovation

4. Business ethics applies to:

(a) Large corporations only (c) Non-profit organizations only
(b) Small businesses only (d) All types of businesses

5. Which of the following is NOT a goal of the course?

(a) Providing knowledge of general ethical principles
(b) Developing the ability to make informed judgments through case analyses
(c) Equipping students with advanced financial management techniques
(d) Formulating basic strategies in relation to corporate ethics and governance

6. Ethical standards in business help companies to:

(a) Increase competition (c) Attract and retain talented employees
(b) Maximize profits at any cost (d) Avoid legal regulations

7. What is the relationship between business ethics and social responsibility?

(a) They are unrelated concepts
(b) Business ethics is a subset of social responsibility
(c) Social responsibility is a subset of business ethics
(d) They are mutually exclusive concepts

8. True or False: Business ethics is solely concerned with the legal aspects of business operations.
(a) True
(b) False

9. Which of the following is an example of unethical behavior in business?

(a) Promoting employee well-being (c) Discrimination in hiring practices
(b) Transparent financial reporting (d) Community engagement initiatives

10. The course aims to equip students with the ability to formulate basic strategies in relation to:
(a) Financial management (c) Corporate ethics and governance
(b) Marketing techniques (d) Human resource management
11. The responsibility of businesses to consider the impact of their decisions on society and the environment
is known as:
(a) Shareholder primacy (c) Corporate governance
(b) Stakeholder theory (d) Financial sustainability

12. Ethical principles in business often require individuals to make decisions based on:
(a) Personal biases (c) Moral values and standards
(b) Short-term gains (d) Profit maximization

13. Which of the following is NOT a stakeholder in a business?

(a) Customers (b) Employees (c) Competitors (d) Suppliers

14. What is the importance of case analyses in the course?

(a) To develop research skills
(b) To understand historical business practices
(c) To apply ethical principles to real-world scenarios
(d) To analyze marketing strategies

15. A company's code of ethics is designed to:

(a) Maximize shareholder profits (c) Encourage unethical behavior
(b) Promote fair competition (d) Ensure compliance with legal regulations

16. True or False: Business ethics can have a positive impact on a company's financial performance.
(a) True
(b) False

17. Which of the following is an example of corporate social responsibility?

(a) Implementing cost-cutting measures to increase profits
(b) Donating a percentage of profits to charity
(c) Exploiting natural resources without regard for the environment
(d) Ignoring the needs of employees

18. The term "whistleblowing" refers to:

(a) Reporting unethical practices within a company (c) Engaging in fraudulent activities
(b) Encouraging unethical behavior for personal gain (d) Ignoring ethical standards in business

19. Which of the following is NOT a potential consequence of unethical behavior in business?
(a) Legal penalties (c) Improved employee morale
(b) Loss of customer trust (d) Damage to reputation

20. The concept of "conflict of interest" refers to a situation where an individual:

(a) Makes an ethical decision (c) Has competing personal or professional interests
(b) Acts in the best interest of shareholders (d) Demonstrates strong leadership skills

21. What is the role of ethical leadership in business?

(a) To maximize profits at all costs
(b) To establish strict hierarchical structures
(c) To promote ethical behavior throughout the organization
(d) To prioritize personal gain over stakeholder interests

22. True or False: Ethical standards in business are universal and do not vary across cultures.
(a) True
(b) False

23. Which of the following is an example of a potential conflict between business ethics and profitability?
(a) Implementing fair labor practices
(b) Engaging in aggressive marketing campaigns
(c) Investing in sustainable technologies
(d) Building strong relationships with suppliers
24. The term "corporate governance" refers to:
(a) The legal requirements imposed on businesses
(b) The management of a company's financial resources
(c) The system of rules and practices that guide corporate behavior
(d) The relationship between a company and its shareholders

25. Which of the following is an example of a company demonstrating social responsibility?

(a) Implementing discriminatory hiring practices
(b) Disregarding environmental regulations
(c) Providing financial support to local communities
(d) Focusing solely on shareholder interests

26. True or False: Ethical behavior in business always leads to immediate financial gains.
(a) True
(b) False

27. Which of the following is an example of an ethical dilemma in business?

(a) Implementing cost-saving measures to increase profits
(b) Honoring contractual agreements with suppliers
(c) Offering competitive prices to attract customers
(d) Balancing the interests of shareholders and employees

28. In the context of business ethics, what does the term "transparency" refer to?
(a) Concealing information from stakeholders
(b) Providing clear and accessible information to stakeholders
(c) Engaging in unfair business practices
(d) Manipulating financial statements for personal gain

29. Which of the following is NOT a potential benefit of implementing ethical practices in business?
(a) Increased customer loyalty (c) Decreased employee morale
(b) Enhanced reputation (d) Improved relationships with stakeholders

30. The concept of "corporate citizenship" refers to:

(a) The legal status of a company
(b) The ethical behavior of company executives
(c) The responsibility of a company to contribute to society
(d) The financial performance of a company

31. What is the purpose of ethical guidelines and codes of conduct in business?
(a) To restrict competition (c) To guide employees' behavior and decision-
making
(b) To protect shareholder interests (d) To maximize profits

32. True or False: Ethical behavior in business is subjective and varies from person to person.
(a) True
(b) False

33. Which of the following is an example of a conflict of interest in business?

(a) Seeking customer feedback to improve products
(b) Offering fair and competitive pricing
(c) Accepting gifts from suppliers in exchange for favorable treatment
(d) Implementing environmentally friendly practices

34. What is the purpose of stakeholder analysis in business ethics?

(a) To prioritize the interests of shareholders over other stakeholders
(b) To identify and understand the needs and expectations of different stakeholders
(c) To manipulate stakeholder opinions for personal gain
(d) To avoid engaging with stakeholders altogether
35. Which of the following is an example of an ethical issue related to corporate governance?
(a) Transparent financial reporting (c) Offering competitive compensation packages
(b) Employee recognition programs (d) Violating antitrust laws

36. True or False: Ethical behavior in business is solely determined by legal requirements.
(a) True
(b) False

37. Which of the following is an example of an ethical principle in business?

(a) Exploiting employees for maximum productivity
(b) Operating within the boundaries of the law
(c) Deceiving customers for financial gain
(d) Ignoring the impact of business decisions on society

38. What is the term used to describe an organization's commitment to long-term sustainability and positive
social and environmental impact?
(a) Corporate social responsibility (c) Financial profitability
(b) Shareholder primacy (d) Competitive advantage

39. Which of the following is an example of unethical advertising practices?

(a) Providing accurate and transparent product information
(b) Targeting specific customer demographics
(c) Making false claims about product effectiveness
(d) Offering competitive pricing

40. What role do ethics committees play in organizations?

(a) Promoting unethical behavior (c) Providing guidance on ethical dilemmas
(b) Enforcing legal regulations (d) Maximizing shareholder value

41. True or False: Business ethics and profitability are incompatible concepts.
(a) True
(b) False

42. Which of the following is an example of a business engaging in sustainable practices?

(a) Dumping waste materials in a nearby river (c) Implementing energy-saving measures
(b) Failing to pay employees a fair wage (d) Ignoring workplace safety regulations

43. What is the term used to describe the ethical responsibility of businesses to disclose information that may
affect stakeholders' decisions?
(a) Transparency (c) Cost-cutting measures
(b) Profit maximization (d) Competitive advantage

44. Which of the following is an example of a business taking a proactive approach to ethics?
(a) Reacting to ethical violations after they occur
(b) Implementing ethics training programs for employees
(c) Ignoring ethical considerations for financial gain
(d) Focusing solely on shareholder interests

45. True or False: Ethical behavior in business is solely based on personal values and beliefs.
(a) True
(b) False

46. Which of the following is an example of an ethical issue in employee-employer relationships?

(a) Offering competitive compensation packages
(b) Providing equal opportunities for advancement
(c) Implementing discriminatory hiring practices
(d) Encouraging work-life balance
47. What is the purpose of a whistleblower protection program in organizations?
(a) To encourage unethical behavior
(b) To hide unethical practices
(c) To provide legal protection for individuals reporting unethical behavior
(d) To maximize shareholder profits

48. True or False: Business ethics is solely concerned with the conduct of entrepreneurs.
(a) True
(b) False

49. What is the term used to describe the obligation of businesses to consider the impact of their decisions on
the environment?
(a) Stakeholder theory (c) Sustainable business practices
(b) Corporate citizenship (d) Ethical leadership

50. Which of the following is an example of a business practicing stakeholder management?

(a) Prioritizing shareholder interests over other stakeholders
(b) Ignoring the needs of customers and employees
(c) Engaging in fair trade practices with suppliers
(d) Maximizing short-term profits at the expense of long-term sustainability
1. C
2. D
3. C
4. D
5. C
6. C
7. B
8. B
9. C
10. C
11. B
12. C
13. C
14. C
15. B
16. A
17. B
18. A
19. C
20. C
21. C
22. B
23. B
24. C
25. C
26. B
27. D
28. B
29. C
30. C
31. C
32. B
33. C
34. B
35. A
36. B
37. B
38. A
39. C
40. C
41. B
42. C
43. A
44. B
45. B
46. C
47. C
48. B
49. C
50. C