Entrepreneurship 1.04

You decide not to take a certain action because you know it’s the wrong thing to do. You have made this decision based on your

• ethics

• peers

• regulations

• laws

A business’s ethics determine whether or not an action is acceptable for that business, especially if the action

• affects the environment.

• is illegal

• has a negative impact on others.

• contributes to the business’s profitability.

Understanding business ethics can be difficult since

• there are no industry-specific ethical codes.

• many people aren’t sure how to behave ethically.

• fit is a relatively new field of study.

• they involve a lot of technical terms.

Which of the following is a true statement about business ethics and the law:

• The two have nothing to do with each other.

• Everything that is ethical is also legal.

• Everything that is illegal is also unethical.

• The two are not the same thing, but they do overlap.

Which of the following is a true statement about breaking the law:

• It may have different consequences than breaching business ethics.

• It is acceptable in most industries.

• It is necessary for business success.

• It will make a company more popular.

One difference between business ethics and the law is that business ethics

• must be published.

• are often unwritten.

• are enforced by government.

• are easy to determine.

Which of the following is   one of the four pillars of a business’s social responsibility:

• Economic responsibility

• Political responsibility

• Media responsibility

• Universal responsibility

A large tech company donates a portion of its proceeds to charity. This is an example of __________ responsibility.

• legal

• ethical

• philanthropic

• economic

Which of the following is an example of a business’s ethical obligation to its stakeholders:

• Allowing the competition to succeed

• Doubling investors’ money within two years

• Sharing trade secrets within its industry

• provide safe working environment

Why should a business practice good ethics?

• An ethical business makes more money than all its competitors.

• The government will fine an unethical business.

• An ethical business contributes toward its own success.

• An unethical business will go bankrupt.