Understanding Business Ethics and Practices

What is the primary concern of shareholders in a company?

• The company's environmental impact

• The financial performance of the business

• The company's ethical practices

• The company's community involvement

Which of the following is an example of an unethical practice?

• Donating to local charities

• Treating employees fairly

• Discrimination based on race or gender

• Being honest about product quality

What was the unethical practice Volkswagen (VW) was involved in?

• Overcharging customers

• Cheating emissions tests

• Underpaying workers

• False advertising about product quality

Who was affected by Volkswagen's unethical practices?

• Only the shareholders

• Only the customers

• Customers, shareholders, and the community

• Only the environment

What is a code of ethics?

• A set of rules for financial reporting

• A guide for how a business should act

• A marketing strategy

• A list of company products

Why is it important for a business to have ethical practices?

• To increase production costs

• To earn trust from customers and the community

• To reduce the number of employees

• To avoid paying taxes

What does scaling a business involve?

• Reducing the number of products

• Expanding a business to increase revenue while maintaining or decreasing costs

• Focusing only on local markets

• Decreasing the customer base

Which of the following is a method businesses use to scale?

• Reducing employee salaries

• Decreasing production

• Leveraging technology

• Limiting customer outreach

What is an example of ethical business practice?

• Exploiting workers for profit

• Lying about product features

• Paying employees on time

• Ignoring customer feedback

How can a company build trust with its customers and community?

• By hiding its financial performance

• By engaging in fraudulent activities

• By following a code of ethics

• By reducing product quality