MCQ-PROFESSIONAL/BUSINESS ETHICS AND STANDARDS
Which of the following best defines business ethics?
A) Laws governing business conduct
B) Moral principles that guide behavior in business
C) Business practices for profit maximization
D) Standard operating procedures in business
Answer: B) Moral principles that guide behavior in business
What is the primary objective of business ethics?
A) Profit maximization
B) Corporate social responsibility
C) Compliance with laws
D) Ensuring fair practices in business operations
Answer: D) Ensuring fair practices in business operations
Which Indian body sets standards for corporate governance?
A) SEBI
B) RBI
C) FSSAI
D) IRDAI
Answer: A) SEBI
What is the ethical principle of ‘integrity’ in business?
A) Doing the right thing even when no one is watching
B) Maximizing shareholder value
C) Following all legal requirements
D) Ensuring customer satisfaction
Answer: A) Doing the right thing even when no one is watching
In India, which act primarily governs ethical practices in competition?
A) Companies Act, 2013
B) Competition Act, 2002
C) Consumer Protection Act, 1986
D) SEBI Act, 1992
Answer: B) Competition Act, 2002
Which of the following is an unethical practice in business?
A) Transparency in financial reporting
B) Insider trading
C) Fair pricing
D) Corporate social responsibility
Answer: B) Insider trading
What does CSR stand for?
A) Corporate Social Responsibility
B) Corporate Standards and Regulations
C) Corporate Strategy and Reporting
D) Corporate Social Rights
Answer: A) Corporate Social Responsibility
Which of the following is a key component of professional ethics?
A) Maintaining client confidentiality
B) Maximizing profits
C) Aggressive marketing tactics
D) Reducing operational costs
Answer: A) Maintaining client confidentiality
Which Indian law addresses unethical competitive practices?
A) Consumer Protection Act, 2019
B) Competition Act, 2002
C) SEBI Act, 1992
D) IT Act, 2000
Answer: B) Competition Act, 2002
Which of the following is considered a conflict of interest in business?
A) Hiring a qualified family member
B) Using company resources for personal gain
C) Following ethical guidelines
D) Ensuring product quality
Answer: B) Using company resources for personal gain
Which Indian regulation mandates ethical disclosure by listed companies?
A) SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
B) Companies Act, 2013
C) Consumer Protection Act, 2019
D) Competition Act, 2002
Answer: A) SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
Which principle of ethics involves giving credit where it is due?
A) Integrity
B) Transparency
C) Fairness
D) Accountability
Answer: C) Fairness
What does the term ‘whistleblowing’ refer to in professional ethics?
A) Reporting unethical practices
B) Promoting corporate image
C) Seeking approval for business deals
D) Conducting internal audits
Answer: A) Reporting unethical practices
What is the role of ethics committees in organizations?
A) Overseeing profit margins
B) Promoting ethical behavior and compliance
C) Approving mergers and acquisitions
D) Setting prices for products
Answer: B) Promoting ethical behavior and compliance
Which of the following is a key benefit of ethical business practices?
A) Increased regulatory scrutiny
B) Higher employee turnover
C) Improved corporate reputation
D) Reduced profitability
Answer: C) Improved corporate reputation
What is the purpose of a code of ethics in an organization?
A) To increase profits
B) To set guidelines for ethical behavior
C) To determine salaries
D) To plan marketing strategies
Answer: B) To set guidelines for ethical behavior
What is ‘corporate governance’?
A) The process of managing employees
B) The system by which companies are directed and controlled
C) The strategy for increasing market share
D) The method of handling customer complaints
Answer: B) The system by which companies are directed and controlled
Which Indian act focuses on corruption in the public sector?
A) Prevention of Corruption Act, 1988
B) Companies Act, 2013
C) Consumer Protection Act, 2019
D) Competition Act, 2002
Answer: A) Prevention of Corruption Act, 1988
Which of the following is an ethical responsibility of a business?
A) Profit maximization at any cost
B) Compliance with environmental laws
C) Ignoring stakeholder interests
D) Avoiding social responsibility
Answer: B) Compliance with environmental laws
Which principle of business ethics involves avoiding deception?
A) Integrity
B) Fairness
C) Accountability
D) Transparency
Answer: D) Transparency
In India, who is responsible for setting ethical guidelines for auditors?
A) Institute of Chartered Accountants of India (ICAI)
B) Securities and Exchange Board of India (SEBI)
C) Reserve Bank of India (RBI)
D) Ministry of Corporate Affairs
Answer: A) Institute of Chartered Accountants of India (ICAI)
What is ‘ethical consumerism’?
A) Buying products based on ethical considerations
B) Purchasing goods at the lowest price
C) Maximizing consumer satisfaction
D) Focusing on brand loyalty
Answer: A) Buying products based on ethical considerations
What does the term ‘fiduciary duty’ refer to?
A) The duty of an agent to act in the best interest of their principal
B) The responsibility of a company to maximize profits
C) The obligation to pay taxes on time
D) The requirement to follow all legal regulations
Answer: A) The duty of an agent to act in the best interest of their principal
Which ethical principle is violated by bribery?
A) Integrity
B) Transparency
C) Fairness
D) Accountability
Answer: A) Integrity
What is the main focus of environmental ethics in business?
A) Reducing costs of production
B) Ensuring compliance with environmental laws
C) Promoting business expansion
D) Improving employee morale
Answer: B) Ensuring compliance with environmental laws
What is the ethical issue in ‘price fixing’?
A) Setting prices below market value
B) Setting prices above market value
C) Collusion among competitors to set prices
D) Changing prices frequently
Answer: C) Collusion among competitors to set prices
Which of the following is a legal requirement for ethical advertising in India?
A) Truthful representation of products
B) Maximum profit orientation
C) Use of celebrity endorsements
D) Aggressive marketing tactics
Answer: A) Truthful representation of products
Which of the following is an ethical concern in the workplace?
A) Fair employee treatment
B) Employee exploitation
C) Salary negotiation
D) Employee training programs
Answer: B) Employee exploitation
Which Indian act deals with consumer protection against unethical business practices?
A) Consumer Protection Act, 2019
B) Competition Act, 2002
C) Companies Act, 2013
D) SEBI Act, 1992
Answer: A) Consumer Protection Act, 2019
Which of the following is an unethical business practice?
A) Transparent pricing
B) Exploitation of labor
C) Fair trade
D) Equal opportunity employment
Answer: B) Exploitation of labor
What is the ethical principle behind corporate social responsibility?
A) Maximizing shareholder profits
B) Addressing social, environmental, and economic impacts
C) Reducing operational costs
D) Enhancing market share
Answer: B) Addressing social, environmental, and economic impacts
Which of the following is considered an ethical practice in marketing?
A) Misleading advertising
B) Price gouging
C) Transparent communication with consumers
D) Exploiting consumer vulnerabilities
Answer: C) Transparent communication with consumers
What does the principle of ‘confidentiality’ in business ethics entail?
A) Keeping all business operations secret
B) Protecting sensitive information from unauthorized disclosure
C) Sharing all information with stakeholders
D) Disclosing employee details to third parties
Answer: B) Protecting sensitive information from unauthorized disclosure
Which of the following is a primary goal of professional ethics?
A) Maximizing individual gains
B) Maintaining public trust and integrity in a profession
C) Increasing organizational profits
D) Reducing competition
Answer: B) Maintaining public trust and integrity in a profession
What is ‘ethical leadership’?
A) Leadership focused on profit maximization
B) Leadership that upholds moral values and principles
C) Leadership that promotes aggressive market strategies
D) Leadership that focuses on cost-cutting measures
Answer: B) Leadership that upholds moral values and principles
Which organization in India promotes ethical standards among businesses?
A) National Institute of Standards and Technology (NIST)
B) Confederation of Indian Industry (CII)
C) Reserve Bank of India (RBI)
D) Ministry of Commerce
Answer: B) Confederation of Indian Industry (CII)
What is the ethical dilemma in ‘insider trading’?
A) Using non-public information for personal gain
B) Reporting company profits to stakeholders
C) Investing in competitive businesses
D) Following legal procedures
Answer: A) Using non-public information for personal gain
Which of the following reflects ethical behavior in procurement?
A) Favoring suppliers for personal gain
B) Accepting gifts from vendors
C) Ensuring a fair and transparent bidding process
D) Overcharging for procurement contracts
Answer: C) Ensuring a fair and transparent bidding process
Which principle in business ethics involves accountability?
A) Transparency
B) Integrity
C) Fairness
D) Taking responsibility for one’s actions and decisions
Answer: D) Taking responsibility for one’s actions and decisions
What is ‘ethical auditing’?
A) A financial audit focused on profitability
B) A review of a company’s ethical practices and compliance
C) A tax audit conducted by government authorities
D) An audit of internal control systems
Answer: B) A review of a company’s ethical practices and compliance
Which Indian law addresses unethical advertising practices?
A) Competition Act, 2002
B) Advertising Standards Council of India (ASCI) Code
C) Companies Act, 2013
D) Consumer Protection Act, 2019
Answer: B) Advertising Standards Council of India (ASCI) Code
What does ‘ethical decision-making’ involve?
A) Choosing actions that align with moral principles and values
B) Selecting the most profitable business option
C) Making decisions based on market trends
D) Avoiding any risk in business operations
Answer: A) Choosing actions that align with moral principles and values
What is the role of ethics in corporate governance?
A) Ensuring shareholder wealth maximization
B) Strengthening accountability, transparency, and fairness
C) Increasing company market value
D) Reducing company liabilities
Answer: B) Strengthening accountability, transparency, and fairness
Which of the following is an example of ethical supply chain management?
A) Exploiting cheap labor in developing countries
B) Ensuring suppliers adhere to fair labor practices
C) Maximizing supply chain efficiency
D) Outsourcing to the lowest-cost supplier regardless of practices
Answer: B) Ensuring suppliers adhere to fair labor practices
What is the significance of ‘fair trade’ in business ethics?
A) It focuses on ensuring competitive pricing
B) It promotes equity in international trade practices
C) It emphasizes the need for minimal regulation
D) It supports aggressive marketing strategies
Answer: B) It promotes equity in international trade practices
What is the role of ethical behavior in customer relations?
A) Enhancing customer satisfaction through honesty and transparency
B) Focusing solely on profit maximization
C) Implementing aggressive sales techniques
D) Prioritizing short-term gains
Answer: A) Enhancing customer satisfaction through honesty and transparency
Which of the following best describes ‘corporate social responsibility’ (CSR)?
A) A legal requirement for all businesses
B) A voluntary commitment to ethical behavior and contributing to economic development
C) A strategy to reduce production costs
D) A method to enhance shareholder value
Answer: B) A voluntary commitment to ethical behavior and contributing to economic development
Which of the following is an unethical practice in corporate governance?
A) Ensuring transparency in financial reporting
B) Engaging in conflict of interest without disclosure
C) Promoting diversity in board appointments
D) Implementing fair compensation policies
Answer: B) Engaging in conflict of interest without disclosure
What is the main ethical concern with monopolistic practices?
A) They limit competition and exploit consumers
B) They reduce operational costs
C) They increase market share
D) They promote innovation
Answer: A) They limit competition and exploit consumers
Which of the following reflects the ethical principle of ‘respect for persons’ in business?
A) Ensuring safe working conditions for employees
B) Cutting costs by reducing employee benefits
C) Implementing strict supervision of all workers
D) Promoting aggressive marketing campaigns
Answer: A) Ensuring safe working conditions for employees
