Ethical and Legal Issues in Business Quiz

What defines a bonafide business?

• A legitimate, legally recognized establishment

• A business that operates illegally

• A business that avoids taxes

• A company that only operates online

What is an ethical issue related to capital in a business?

• Obtaining loans from banks

• Using funds from legal sources

• Sourcing capital from illegal activities

• Investing in community projects

What is a legal issue regarding taxes for businesses?

• Hiring a tax consultant

• Evading taxes

• Paying taxes late

• Reporting income accurately

What is the ethical responsibility of a business regarding employee treatment?

• Providing minimum wage only

• Firing employees without cause

• Ensuring fair treatment and safe working conditions

• Avoiding employee benefits

What do consumer protection laws ensure?

• Businesses can sell any product

• Products are safe and accurately represented

• Businesses can mislead customers

• Products can be sold without quality checks

What is an ethical issue related to environmental responsibility?

• Using non-recyclable materials

• Maximizing profits at any cost

• Ignoring environmental laws

• Reducing pollution and waste

What is a legal requirement for data protection?

• Storing data indefinitely

• Selling personal data freely

• Following the General Data Protection Regulation (GDPR)

• Collecting data without consent

What is a consequence of failing to comply with labor laws?

• Increased employee satisfaction

• Higher employee retention

• Better company reputation

• Legal action and fines

What should businesses do to ensure legitimacy?

• Avoid registering with government agencies

• Obtain necessary licenses and permits

• Ignore background checks

• Operate without transparency

What is an example of a legal issue in business operations?

• Maintaining accurate records

• Conducting regular audits

• Failing to pay national insurance contributions

• Providing employee training