Business Ethics Quiz 1

What is the primary role of a business?

• To eliminate competition

• To focus solely on employee satisfaction

• To create wealth for its stakeholders

• To provide free services to society

Who are considered stakeholders in a business?

• Only government officials

• Only shareholders

• Employees, customers, and society

• Only customers

What does the term 'division of labor' refer to?

• The process of hiring more employees

• The splitting of a business into smaller companies

• The division of profits among stakeholders

• The separation of tasks to improve efficiency

What is an entrepreneur?

• A person who manages a business and takes risks

• A customer of a business

• A government official

• A type of business organization

Why do businesses pay taxes?

• To increase their profits

• To avoid legal issues

• To fund government services

• To hire more employees

What is the role of the Securities and Exchange Commission (SEC)?

• To create new businesses

• To eliminate competition

• To supervise business organizations

• To manage employee relations

What is a business organization?

• A group of individuals working for a common purpose

• A government agency

• A single individual running a business

• A type of product sold in stores

What is one of the core principles of business ethics?

• Market domination

• Employee favoritism

• Profit maximization

• Fairness

How do businesses contribute to social and economic development?

• By focusing only on profits

• By limiting job opportunities

• By avoiding taxes

• By providing products and services

What is the purpose of a code of ethics?

• To reduce competition

• To increase profits

• To hire more employees

• To guide moral conduct in business