Ch. 2 - Applying Ethics in the Conduct of Business

A compliance-based code of ethics focuses primarily on creating an environment of shared responsibility among employees.

• TRUE

• FALSE

Answer explanation

An integrity-based code of ethics

An integrity-based code of ethics stresses on preventing unlawful behavior by enforcing rules and regulations.

• TRUE

• FALSE

Answer explanation

A compliance-based code of ethics

The co-opetition model involves both cooperation and competition between businesses.

• TRUE

• FALSE

Cooperation in business encourages knowledge sharing and collaboration, while competition focuses on outperforming others.

• TRUE

• FALSE

Unethical behavior in competition can include price wars, misinformation, or exploitation of market power.

• TRUE

• FALSE

The success of the F&B industry in Malaysia is driven by a high demand for fast food and processed foods due to time constraints in modern lifestyles.

• TRUE

• FALSE

Market failure is usually caused by a lack of innovation and creativity in the industry.

• TRUE

• FALSE

Answer explanation

Because of lack of information, market control, pblic goods and externalities.

Rayani Air failed due to operational and management issues, including the inability to pay pilots and cancellations of flights.

• TRUE

• FALSE

Programmed decisions are structured and repetitive, usually made by higher-level managers in response to unique problems.

• TRUE

• FALSE

Answer explanation

First level and middle level of managers

Non-programmed decisions require higher-level management due to the uncertainty and risk involved.

• TRUE

• FALSE